Catholic Chariites USA FY2013 Financial Statements

8/13/2019 Catholic Chariites USA FY2013 Financial Statements

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CATHOLIC CHARITIES USA AND AFFILIATE

CONSOLIDATED FINANCIAL STATEMENTS

YEARS ENDED JUNE 30, 2013 AND 2012


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CATHOLIC CHARITIES USA AND AFFILIATETABLE OF CONTENTS

YEARS ENDED JUNE 30, 2013 AND 2012

PAGE

INDEPENDENT AUDITORS REPORT ............................................................................................. 1

FINANCIAL STATEMENTS ............................................................................................................... 3

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION ................................................... 4

CONSOLIDATED STATEMENT OF ACTIVITIES - 2013 ............................................................ 5

CONSOLIDATED STATEMENT OF ACTIVITIES - 2012 ............................................................ 6

CONSOLIDATED STATEMENT OF FUNCTIONAL EXPENSES - 2013 ................................... 7

CONSOLIDATED STATEMENT OF FUNCTIONAL EXPENSES - 2012 ................................... 8

CONSOLIDATED STATEMENTS OF CASH FLOWS ................................................................. 9

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS .............................................. 10


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CliftonLarsonAllen LLP4250 N. Fairfax Drive, Suite 1020

Arlington, Virginia 22203571-227-9500 | fax 571-227-9552www.cliftonlarsonallen.com

INDEPENDENT AUDITORS REPORT

Board of TrusteesCatholic Charities USA

Alexandria, Virginia

Report on the Financial Statements We have audited the accompanying consolidated financial statements of Catholic Charities USAand Affiliate, which comprise the consolidated statements of financial position as of June 30, 2013and 2012, and the related consolidated statements of activities, functional expenses, and cash

flows for the years then ended, and the related notes to the financial statements.

Managements Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these consolidated financialstatements in accordance with accounting principles generally accepted in the United States of

America; this includes the design, implementation, and maintenance of internal control relevant tothe preparation and fair presentation of consolidated financial statements that are free from materialmisstatement, whether due to fraud or error.

Audi tors Responsib il it y

Our responsibility is to express an opinion on these consolidated financial statements based on ouraudits. We conducted our audits in accordance with auditing standards generally accepted in theUnited States of America and the standards applicable to financial audits contained in GovernmentAuditing Standards, issued by the Comptroller General of the United States. Those standardsrequire that we plan and perform the audit to obtain reasonable assurance about whether theconsolidated financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the consolidated financial statements. The procedures selected depend on theauditors judgment, including the assessment of the risks of material misstatement of theconsolidated financial statements, whether due to fraud or error. In making those risk assessments,the auditor considers internal control relevant to the entitys preparation and fair presentation of theconsolidated financial statements in order to design audit procedures that are appropriate in thecircumstances, but not for the purpose of expressing an opinion on the effectiveness of the entitysinternal control. Accordingly, we express no such opinion. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of significant accountingestimates made by management, as well as evaluating the overall presentation of the consolidatedfinancial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basisfor our audit opinion.


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Board of TrusteesCatholic Charities USA and Affiliate

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OpinionIn our opinion, the consolidated financial statements referred to above present fairly, in all materialrespects, the consolidated financial position of the Catholic Charities USA and Affiliate as ofJune 30, 2013 and 2012, and the changes in their net assets and their cash flows for the years thenended in accordance with accounting principles generally accepted in the United States of America.

aArlington, VirginiaJanuary 7, 2014


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CONSOLIDATED FINANCIAL STATEMENTS


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CATHOLIC CHARITIES USA AND AFFILIATECONSOLIDATED STATEMENTS OF FINANCIAL POSITION

JUNE 30, 2013 AND 2012

The accompanying notes are an integral part of the consolidated financial statements.4

2013 2012

Cash and Cash Equivalents 6,843,746$ 6,115,449$

Receivables:U.S. Government 528,680 1,938,822

Interest and Dividends 21,388 21,307Other 119,967 196,104

Total Receivables 670,035 2,156,233

Pledges Receivable, Net 2,998,311 10,531,528Prepaid Expenses and Other Assets, Net 720,748 659,889

Deferred Lease Incentives and Lease Origination Costs 978,285 -Investments 21,051,024 13,824,566

Property and Equipment, Net 30,202,484 31,755,287

Total Assets 63,464,633$ 65,042,952$

LIABILITIES

Accounts Payable and Accrued Expenses 1,878,491$ 2,390,469$

Grants Payable 299,721 598,638

Short-Term Loan Payable - 3,900,000Deferred Revenue 383,905 118,507

Capital Lease Obligations 108,590 134,443

Deferred Rent - 1,091,480Security Deposits 55,569 -

Split Interest Agreements 109,345 112,120Accrued Loss On Lease Obligations 1,989,773 2,768,548Note Payable 5,210,000 5,210,000

Value of Interest Rate SWAP Agreement 132,681 186,752

Total Liabilities 10,168,075 16,510,957

NET ASSETS

Unrestricted:

Board-Designated 9,676,936 9,676,936

Net Investment in Property and Equipment 24,992,484 26,545,287Undesignated 8,545,864 5,232,053

Total Unrestricted 43,215,284 41,454,276Temporarily Restricted 9,966,274 6,962,719Permanently Restricted 115,000 115,000

Total Net Assets 53,296,558 48,531,995

Total Liabilit ies and Net Assets 63,464,633$ 65,042,952$

ASSETS

LIABILITIES AND NET ASSETS


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CATHOLIC CHARITIES USA AND AFFILIATECONSOLIDATED STATEMENT OF ACTIVITIES

FOR THE YEAR ENDED JUNE 30, 2013


Temporarily Permanently

Unrestricted Restricted Restricted Total

REVENUE

Membership Dues 1,579,813$ -$ -$ 1,579,813$Federal Grants 1,667,444 - - 1,667,444Federal Contracts 4,868,425 - - 4,868,425Contributions:

Disaster Response - 10,355,009 - 10,355,009Combined Federal Campaign 762,358 - - 762,358Other 9,606,882 1,825,096 - 11,431,978

Total Contributions 10,369,240 12,180,105 - 22,549,345Investment Income (Loss):

Disaster Response (133,301) - - (133,301)

Other 897,000 - - 897,000Total Investment Income 763,699 - - 763,699

Registration and Workshop Fees 416,819 - - 416,819

Other Revenue 209,629 - - 209,629Net Assets Released from Restrictions 9,176,550 (9,176,550) - -Total Revenue 29,051,619 3,003,555 - 32,055,174

EXPENSES

Program Services:Distributions to Catholic CharitiesService Agencies and Other Non Profits:

Disaster Response 8,818,611 - - 8,818,611Programs and Services 2,585,438 - - 2,585,438Member Agencies' Support 619,233 - - 619,233Member Services 33,762 - - 33,762

Total Distributions 12,057,044 - - 12,057,044Other Program Services:

Disaster Response 2,372,336 - - 2,372,336Programs and Services 3,317,526 - - 3,317,526Social Policy 2,539,812 - - 2,539,812Member Agencies' Support 102,677 - - 102,677Member Services 940,753 - - 940,753

Total Other Program Services 9,273,104 - - 9,273,104Supporting Services:

Management and General 3,316,563 - - 3,316,563Fundraising 2,059,928 - - 2,059,928

Total Supporting Services 5,376,491 - - 5,376,491

Total Program and Supporting Services Expenses 26,706,639 - - 26,706,639

2050 Ballenger LLC Expenses 590,554 - - 590,554

Total Expenses 27,297,193 - - 27,297,193Fair Value Gain (Loss) on Interest Rate SWAP Agreement 54,071 - - 54,071

Loss on Lease Obligation 47,489 - - 47,489

CHANGE IN NET ASSETS 1,761,008 3,003,555 - 4,764,563

Net Assets - Beginning of Year 41,454,276 6,962,719 115,000 48,531,995

NET ASSETS - END OF YEAR 43,215,284$ 9,966,274$ 115,000$ 53,296,558$


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CATHOLIC CHARITIES USA AND AFFILIATECONSOLIDATED STATEMENT OF ACTIVITIES

FOR THE YEAR ENDED JUNE 30, 2012


Temporarily Permanently

Unrestricted Restricted Restricted Total

REVENUE

Membership Dues 1,595,133$ -$ -$ 1,595,133$Federal Grants 1,517,506 - - 1,517,506Federal Contracts 4,699,911 - - 4,699,911Contributions:

Disaster Response - 5,462,587 - 5,462,587Combined Federal Campaign 595,587 - - 595,587

Other 9,996,989 984,373 - 10,981,362

Total Contributions 10,592,576 6,446,960 - 17,039,536Investment Income (Loss):

Disaster Response 178,478 - - 178,478

Other 174,956 - - 174,956Total Investment Income 353,434 - - -

Registration and Workshop Fees 352,035 - - 352,035

Other Revenue 214,686 - - 214,686Net Assets Released from Restrictions 3,141,696 (3,141,696) - -

Total Revenue 22,466,977 3,305,264 - 25,772,241

EXPENSES

Program Services:Distributions to Catholic Charities

Service Agencies and Other Non Profits:Disaster Response 3,383,482 - - 3,383,482

Programs and Services 2,334,504 - - 2,334,504Member Agencies' Support 503,526 - - 503,526

Member Services - - - -Total Distributions 6,221,512 - - 6,221,512

Other Program Services:

Disaster Response 2,325,003 - - 2,325,003Programs and Services 3,010,587 - - 3,010,587Social Policy 2,789,703 - - 2,789,703

Member Agencies' Support 128,142 - - 128,142Member Services 1,145,327 - - 1,145,327

Total Other Program Services 9,398,762 - - 9,398,762

Supporting Services:Management and General 3,273,785 - - 3,273,785

Fundraising 1,735,978 - - 1,735,978Total Supporting Services 5,009,763 - - 5,009,763

Total Program and Supporting Services Expenses 20,630,037 - - 20,630,037

2050 Ballenger LLC Expenses 169,626 - - 169,626

Total Expenses 20,799,663 - - 20,799,663

Fair Value Gain (Loss) on Interest Rate SWAP Agreement 32,222 - - 32,222

Loss on Lease Obligation 2,768,548 - - 2,768,548

CHANGE IN NET ASSETS (1,133,456) 3,305,264 - 2,171,808

Net Assets - Beginning of Year 42,587,732 3,657,455 115,000 46,360,187

NET ASSETS - END OF YEAR 41,454,276$ 6,962,719$ 115,000$ 48,531,995$


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CATHOLIC CHARITIES USA AND AFFILIATECONSOLIDATED STATEMENTS OF CASH FLOWSFOR THE YEARS ENDED JUNE 30, 2013 AND 2012

The accompanying notes are an integral part of the consolidated financial statements.

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2013 2012

CASH FLOWS FROM OPERATING ACTIVITIES

Change in Net Assets 4,764,563$ 2,171,808$

Adjustments to Reconcile Change in Net Assets to Net Cash

Provided by Operating Activities:

Depreciation and Amortization 1,145,422 553,790

Loss on Disposal of Fixed Assets 5,180 -

Leasehold Improvement Abandonment Loss 902,615 -

Change in Bad Debt Allowance (1,102,197) (362,930)

Donated Stock (588,818) (610,818)

Unrealized Losses on Investments 292,421 246,722

Realized Gains on Sales of Investments (614,539) (249,342)

(Gain) Loss on Interest Rate SWAP Agreement (54,071) 32,222

Change in Present Value Factor to Discount Grants Payable (49,486) -

Changes in Assets and Liabilities:

Receivables 1,532,439 (1,302,457)

Pledges Receivable 8,589,173 (1,770,057)Prepaid Expenses and Other Assets (60,859) (292,512)

Deferred Lease Incentives and Lease Origination Costs (978,285) -

Accounts Payable and Accrued Expenses (511,978) 1,432,561Grants Payable (298,917) (595,417)

Deferred Rent (1,091,480) (109,232)

Deferred Revenue 265,398 (14,509)

Accrued Loss on Canal Center Lease Obligation (729,289) 2,768,548

Security Deposits 55,569 -

Other Liabilities (2,775) (7,274)

Net Cash Provided by Operating Activities 11,470,086 1,891,103

CASH FLOWS FROM INVESTING ACTIVITIES

Purchases of Property and Equipment (500,414) (5,366,228)Proceeds from Sale of Investments 7,567,489 6,047,920

Purchases of Investments (13,883,011) (9,181,804)

Net Cash Used in Investing Activities (6,815,936) (8,500,112)

CASH FLOWS FROM FINANCING ACTIVITIES

Payments on Short-term Loan Payable (3,900,000) (12,247)

Proceeds from Bonds Payable - 5,210,000

Payments for Capital Leases (25,853) (4,796)

Net Cash (Used in) Provided by Financing Activities (3,925,853) 5,192,957

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 728,297 (1,416,052)

Cash and Cash Equivalents - Beginning of Year 6,115,449 7,531,501

CASH AND CASH EQUIVALENTS - END OF YEAR 6,843,746$ 6,115,449$

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION

Cash Paid for Interest 163,113$ 230,218$

Property and Equipment Acquired through Capital Lease -$ 139,239$


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CATHOLIC CHARITIES USA AND AFFILIATENOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED JUNE 30, 2013 AND 2012

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NOTE 1 ORGANIZATION

Catholic Charities USA (CCUSA) is a not-for-profit organization incorporated in 1950to provide a forum for discussing the application of Catholic thought in the general fieldof social welfare and to stimulate action, research, and the publication of material in thisfield. Primary sources of funding include public contributions, membership dues andgovernment grants.

2050 Ballenger, LLC (the LLC) is a limited liability corporation as defined under theInternal Revenue Code and is operated exclusively for purposes of leasing office space at2050 Ballenger Avenue in Alexandria, Virginia, to CCUSA, as its new headquarters, andleasing any excess space to other tenants. The LLC, which was incorporated in Virginia inMarch 2011, is wholly owned by CCUSA and is therefore consolidated as required underU.S. GAAP.

Program services are provided in the following principal areas:

Disaster Response

CCUSA provides leadership, coordination, and technical assistance to CatholicCharities and other diocesan organizations as part of its role as the lead Catholicagency in times of natural disaster. CCUSA support is provided to not only assistorganizations and communities respond to disasters, but also to help them prepare andplan for disasters. Additionally, CCUSA has a contract with the federal government toprovide disaster case management services for individuals and families recovering fromnatural disasters.

Programs and Services

Local Catholic Charities agencies provide a wide range of human services to millions ofpeople in need each year. CCUSA provides training, technical assistance andnetworking opportunities for its membership on a range of issues of critical importanceincluding aging, housing, emergency services, parish social ministry, child care,healthcare and Catholic Identity. In addition, CCUSA provides opportunities forleadership development and consultations to ensure that members remain at theforefront of emerging needs and quality services.

CCUSA applies for federal grants to support specific programs on behalf of itsmembership. These funds are then transferred to member agencies interested inimplementing these programs through a sub-granting process.

Social Policy

CCUSA provides a national voice for the needs and concerns of its membership andthe people they serve. Working with its membership, CCUSA develops and advocatesfor just public policies that empower people and alleviate the conditions that perpetuatepoverty. CCUSA also works with its membership around issues of racial equality anddiversity.

Member Agencies Support

CCUSA provides grants to member agencies to support general operations of localCatholic Charities.


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NOTE 1 ORGANIZATION (CONTINUED)

Member Services

CCUSA supports its membership by providing a range of services that promotenetworking, ongoing education, and improve their ability to respond to the needs of thepoor and vulnerable in their communities. These services include: an annual gathering,web-based training and information, a quarterly newsletter and other printed resources.

NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Accounting and Principles of Consolidation

The consolidated financial statements of CCUSA and LLC, collectively theOrganization, are presented on the accrual basis of accounting. Consequently,revenue is recognized when earned and expenses when obligations are incurred. The

consolidated financial statements include the assets, liabilities, net assets and activities ofCCUSA and the LLC. All significant intra-entity transactions and balances have beeneliminated in consolidation.

Use of Estimates

The preparation of financial statements in conformity with accounting principlesgenerally accepted in the United States of America requires management to makeestimates and assumptions that affect certain reported amounts of assets and liabilitiesand disclosures of contingent assets and liabilities at the date of the consolidatedfinancial statements and the reported amounts of revenues and expenses during thereporting period. Actual results could differ from those estimates.

Cash and Cash EquivalentsFor financial statement purposes, the Organization considers money market andovernight sweep accounts to be cash equivalents. However, at times part of theinvestment portfolio may be held in cash equivalents.

Investments

Investments are recorded at fair value. CCUSA invests in various securities, includingU.S. Government securities, corporate debt securities, and equities. Investmentsecurities, in general, are exposed to various risks, such as interest rate, credit andoverall market volatility. Due to the level of risk associated with certain investmentsecurities, it is reasonably possible that changes in the values of investment securitieswill occur in the near term and that such changes could materially affect the amounts

reported in future statement of activities.

Fair Value of Financial Inst ruments

The Organization accounts for a portion of its financial instruments at fair value orconsiders fair value in their measurement. The Organization accounts for certainfinancial assets and liabilities at fair value under various accounting literature thatestablishes a fair value hierarchy.


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NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Uniform Prudent Management o f Institu tional Funds Act

During 2008, Virginia enacted the Uniform Prudent Management of Institutional FundsAct (UPMIFA). Also during 2008, guidance was provided on the classification ofendowment fund net assets for states that have enacted versions of UPMIFA. UnderUPMIFA, all unappropriated endowment fund assets are considered restricted.

Pledges Receivable

Pledges receivable are recorded at fair value at the date the promise is received.Pledges that are expected to be collected within one year are recorded at their netrealizable value. Pledges that are expected to be collected in future years are recordedat the present value of the amount expected to be collected. The discounts on thoseamounts are computed using a discount rate that approximates the difference betweenthe present and future value of the cash receipts.

Accounts Receivab le

Accounts receivable are recorded at their net realizable value. The majority of thereceivables are from government grants and contracts, membership dues, and theMedical Trust. Accounts that are past due are individually analyzed for collectability.When all collection efforts have been exhausted, the account is written off against anallowance for bad debts. At June 30, 2013 and June 30, 2012, the allowance for baddebts on accounts receivable approximated $46,000 and $-0-, respectively.

Property and Equipment

Acquisitions of property and equipment are recorded at cost and depreciated using thestraight-line depreciation method. Depreciation is provided over the estimated useful

lives of the assets, which range from 3 - 40 years. Building improvements aredepreciated on a straight-line basis over the lesser of the remaining life of the buildingor estimated useful life of the improvement. Leasehold improvements are amortized ona straight-line basis over the remaining term of the lease agreement. CCUSAcapitalizes all property and equipment purchased with a cost of $5,000 or more.

Net Assets

To ensure the observance of limitations and restrictions placed on the use of resourcesavailable to the Organization, its net assets and revenue have been classified into netasset groups based on the existence or absence of donor-imposed restrictions. Theclasses of net assets are as follows:

Unrestricted: Represents both resources available to support general operations andamounts invested in property and equipment, net of the mortgage liability. TheOrganizations Board of Trustees has internally designated a portion of its unrestrictednet assets (see Note 13).

Temporarily Restricted: Represents resources that result from contributions limited in useby donor-imposed stipulations. Such restrictions either expire by the passage of time orcan be fulfilled and removed by actions of the Organization pursuant to those stipulations.


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Net Assets (Continued)

Permanently Restricted: Represent two bequests that established Endowment Funds.The Caritas Endowment Fund is to be held in perpetuity by CCUSA. Investment incomeearned is used to support program activities for Caritas Internationalis and is recordedas temporarily restricted activity. The Tracy Endowment Fund is to be held in perpetuityby CCUSA. Investment income earned is used to support scholarships granted byCCUSA and is recorded as temporarily restricted activity.

Membersh ip Dues Revenue

Membership dues are treated as an exchange transaction due to membership benefitsoffered. Revenue is recognized in the year to which the membership applies.

Grants and Contracts f rom U.S. Government

Grant and contract funds are reported as revenue when earned. Revenue is earnedwhen eligible expenditures, as defined in each grant or contract, are incurred. Fundsreceived but not yet earned are reported as deferred revenue. Expenditures undergovernment grants and contracts are subject to review by the granting authority. To theextent, if any, that such a review reduces expenditures allowable under these grantsand contracts, CCUSA will record such disallowance at the time the final assessment ismade.

Bequests

Bequest revenue is recorded in the period an irrevocable right to the assets occurs. Atsuch time, the contribution revenue and receivable are recorded at net realizable value.

Functional Allocation of Expenses

The costs of providing programs and other activities have been summarized on afunctional basis in the consolidated statement of activities. Accordingly, indirectexpenses have been allocated among the programs and supporting services benefitedthat includes an allocation of personnel and overhead expenses based upon theestimated amount of time worked by employees and space utilized in each functionalarea.

Income Taxes

CCUSA is exempt from the payment of federal income taxes on activities exempt underSection 501(c)(3) of the Internal Revenue Code and is classified as an organization that

is not a private foundation under Section 509(a) of the Code. The LLC is a limitedliability corporation as defined by the Internal Revenue Service.

CCUSA is not aware of any activities that would jeopardize its tax-exempt status and isnot aware of any activities that are subject to tax on unrelated business income, excise,or other taxes. As of June 30, 2013, there are no identified uncertain tax positions. As achurch related entity, CCUSA does not file a 990 with the IRS.


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Reclassification

Certain amounts in the fiscal year 2012 consolidated financial statements have beenreclassified for comparative purposes to conform to the presentation in fiscal year 2013.

Subsequent Events

In preparing these consolidated financial statements, the Organization has evaluatedevents and transactions for potential recognition or disclosure through January 7, 2014,the date the consolidated financial statements were available to be issued.

NOTE 3 FAIR VALUE OF FINANCIAL INSTRUMENTS

The Organization has categorized its financial instruments based on the priority of the

inputs to the valuation technique, into a three-level fair value hierarchy. The fair valuehierarchy gives the highest priority to quoted prices in active markets for identicalassets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). Ifthe inputs used to measure the financial instruments fall within different levels of thehierarchy, the categorization is based on the lowest level input that is significant to thefair value measurement of the instrument.

Financial assets and liabilities recorded on the statement of financial position arecategorized based on the inputs to the valuation techniques as follows:

Level 1Financial assets and liabilities whose values are based on unadjusted quoted prices for

identical assets or liabilities in an active market that the Organization has the ability toaccess (examples include active exchange-traded equity securities, listed derivatives,and most U.S. Government and agency securities including government guaranteedCMO actively traded in the secondary market).

Level 2Financial assets and liabilities whose values are based on quoted prices in markets thatare not active or model inputs that are observable either directly or indirectly forsubstantially the full term of the asset or liability. Level 2 inputs include the following:

Quoted prices for similar assets or liabilities in active markets (for example, restrictedstock);

Quoted prices for identical or similar assets or liabilities in non-active markets(examples include corporate and municipal bonds, which trade infrequently);

Pricing models whose inputs are observable for substantially the full term of theasset or liability (examples include most over-the-counter derivatives, includinginterest rate and currency swaps); and

Pricing models whose inputs are derived principally from or corroborated byobservable market data through correlation or other means for substantially the fullterm of the asset or liability (examples include certain residential and commercialmortgage related assets, including loans, securities, and derivatives).


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NOTE 3 FAIR VALUE OF FINANCIAL INSTRUMENTS (CONTINUED)

Level 3Financial assets and liabilities whose values are based on prices or valuationtechniques that require inputs that are both unobservable and significant to the overallfair value measurement. These inputs reflect managements assumptions about how amarket participant determines the price of the asset or liability (examples include certainprivate equity investments and split interest agreements).

The following tables present the Organizations fair value hierarchy for those assets andliabilities measured at fair value on a recurring basis (excluding managed moneymarket funds not subject to fair value measurement) as of June 30, 2013 and 2012:

Level 1 Level 2 Level 3 Total

Assets

Government Obligations 2,589,294$ -$ -$ 2,589,294$

Government Guaranteed

CMO-Backed Securities 1,007,652 - - 1,007,652

Corporate Bonds 493,377 - - 493,377

U.S. Equities 3,769,614 - - 3,769,614

International Equities 1,182,385 - - 1,182,385

Mutual Funds - Real Estate 472,043 - - 472,043

Mutual Funds - Fixed Income 10,521,555 - - 10,521,555

Total Assets 20,035,920$ -$ -$ 20,035,920$

Liabilities

Value of Interest Rate

SWAP Agreement -$ 132,681$ -$ 132,681$

Split-Interest Liability - - 109,345 109,345Total Liabilities -$ 132,681$ 109,345$ 242,026$

Level 1 Level 2 Level 3 Total

Assets

Government Obligations 1,817,252$ -$ -$ 1,817,252$

Government Guaranteed

CMO-Backed Securities 801,306 - - 801,306

Corporate Bonds 510,761 - - 510,761

U.S. Equities 3,363,639 - - 3,363,639

International Equities 1,174,591 - - 1,174,591

Mutual Funds - Real Estate 465,216 - - 465,216

Mutual Funds - Fixed Income 4,758,269 - - 4,758,269Total Assets 12,891,034$ -$ -$ 12,891,034$

Liabilities

Value of Interest Rate

SWAP Agreement -$ 186,752$ -$ 186,752$

Split-Interest Liability - - 112,120 112,120Total Liabilities -$ 186,752$ 112,120$ 298,872$

2013

2012


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NOTE 3 FAIR VALUE OF FINANCIAL INSTRUMENTS (CONTINUED)

The fair value of the interest rate swap agreement is based on the estimated presentvalue of the difference between the fixed and variable interest cash flows. Presentvalues are estimated utilizing discounted cash flows techniques at discount rates basedon interest rate assumptions corroborated by quoted rates on similar agreements.

The following table provides a summary of changes in fair value of CCUSAs Level 3financial instruments for the years ended June 30, 2012 and 2013:

Split-Interest

Liability

Balance as of June 30, 2011 131,641$

Unrealized and Realized Net Loss (7,274)

Distributions (12,247)Balance as of June 30, 2012 112,120$

Unrealized and Realized Net Gain 7,777

Distributions (10,552)

Balance as of June 30, 2013 109,345$

The unobservable inputs used to determine the fair value of the Reginato trust andcharitable gift annuity split-interest liabilities were calculated based upon the InternalRevenue Service life expectancy tables and the adjusted federal midterm rate at thetime the charitable annuity and the charitable remainder trust were established.

NOTE 4 CONCENTRATION OF CREDIT RISK

Financial instruments, which subject the Organization to concentrations of credit risk,consist of demand deposits, overnight repurchase agreements, money market funds,funds held in investment portfolios, and certificates of deposit that are held by financialinstitutions. In the normal course of business operations, the Organization may havefunds on deposit in various financial institutions in excess of Federal and otherinsurance limits.


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NOTE 5 INVESTMENTS

Investments are recorded at fair market value and are comprised of the following atJune 30, 2013 and 2012:

Cost Market

U.S. Government Obligations 2,682,346$ 2,589,294$

Government Guaranteed CMO-Backed Securities 1,043,865 1,007,652

Corporate Bonds 470,871 493,377

U.S. Equities 3,306,192 3,769,614

International Equities 1,038,373 1,182,385

Mutual Funds - Real Estate 473,895 472,043

Mutual Funds - Fixed Income 10,620,183 10,521,55519,635,725 20,035,920

Money market funds 1,015,104 1,015,104

Total investments 20,650,829$ 21,051,024$

2013

Cost Market

U.S. Government Obligations 1,780,651$ 1,817,252$

Government Guaranteed CMO-Backed Securities 803,597 801,306

Corporate Bonds 436,008 510,761U.S. Equities 3,090,984 3,363,639

International Equities 1,080,446 1,174,591Mutual Funds - Real Estate 467,504 465,216

Mutual Funds - Fixed Income 4,539,228 4,758,269

12,198,418 12,891,034Money market funds 933,532 933,532

Total investments 13,131,950$ 13,824,566$

2012

Investment income consists of the following for the years ended June 30, 2013 andJune 30, 2012:

2013 2012

Interest and dividends 441,581$ 350,814

Unrealized losses on investments, Net (292,421) (246,722)

Realized gains on sale of investments, Net 614,539 249,342

Total investment income 763,699$ 353,434$


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NOTE 6 DEFERRED LEASE INCENTIVES AND LEASE ORIGINATION COSTS

During the year ended June 30, 2013 the LLC entered into a 10-year tenant leaseagreement with a lease commencement date of September 14th, 2013 to rent excessspace at the Organizations headquarters. The Organization incurred certain leaseorigination costs in legal and broker fees and in inventive payments for tenantallowance totaling $978,285, and recorded a deferred lease incentives and leaseorigination costs asset which will be amortized over the lease term.

NOTE 7 PLEDGES RECEIVABLE

Pledges receivable represent unconditional amounts pledged under various fundraisingcampaigns. Pledges expected to be collected in more than one year are reflected at netrealizable value. The net realizable value is estimated by calculating the present valueof estimated cash flows.

Pledges receivable at June 30, 2013 and 2012, are as follows:

2013 2012

2014 2,593,311$ 11,437,484$

2015 165,000 60,000

2016 165,000 60,000

2017 105,000 60,000

Total Pledges Receivable 3,028,311 11,617,484

Less: Allowance for Doubtful Pledges (30,000) (1,085,956)

Net Pledges Receivable 2,998,311$ 10,531,528$

In 2010, CCUSA received the William R. Fry bequest, valued at approximately $22million at the time of the award. Approximately $15,861,000 of the bequest wasreceived during fiscal year 2010. As of June 30, 2012, the outstanding balance to bereceived from the William R. Fry Estate to CCUSA in accordance with the bequestsprovisions, was approximately $9.6 million. The bequest was collected during fiscalyear 2013.


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NOTE 8 PROPERTY AND EQUIPMENT

As of June 30, 2013 and, 2012, property and equipment consisted of the following:

2013 2012

CCUSA

Leasehold Improvements - Canal Center -$ 1,833,338$

Equipment and Software 346,931 304,285Capital Lease 139,239 139,239

Furniture and Fixtures 1,453,037 1,450,843

Construction in progess 88,966 -

Less: Accumulated Depreciation

and Amortization (845,152) (1,393,700)

Net CCUSA Property and Equipment 1,183,021 2,334,005

LLC

Land 2,560,000 2,560,000

Building and Building Improvements 27,013,173 26,687,865Equipment 369,338 359,409

Construction in Progress 13,335 -

Less: Accumulated Depreciation

and Amortization (936,383) (185,992)Net LLC Property and Equipment 29,019,463 29,421,282

Total Net Property and Equipment 30,202,484$ 31,755,287$

In April 2011, the CCUSA purchased a new, never occupied 72,670 square foot officebuilding in Alexandria, Virginia, for $24,696,000. The Board of Trustees approved theuse of the William R. Fry cash bequest to acquire the office building with the conditionthat future cash flows would be used to support member agencies (see Note 20). Whilemost of the payment involved cash, a $3,900,000 bridge loan was also initiated. Inaddition, CCUSA financed most of the costs of improvements to the office building witha $5,200,000 note payable (see Note 16). CCUSA moved to the new office space in

April 2012, occupying a portion of the building. During fiscal year 2013, a lease wassigned for the remainder of the space.

NOTE 9 DISASTER RESPONSE AND GRANTS PAYABLE

Grants are based on applications submitted and reviewed by the Disaster ResponseAdvisory Committee as part of the approval process, which requires concurrence by thePresident of CCUSA. Grants are made for needs related to a variety of disasters,including hurricanes, floods, terrorist attacks, and other events. All grants payable as ofJune 30, 2013 and 2012 are expected to be paid within one year. Future grantpayments not yet accrued are subject to grantee need and committee approval.


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NOTE 9 DISASTER RESPONSE AND GRANTS PAYABLE (CONTINUED)

It is CCUSAs policy to be reimbursed for actual costs incurred for Disaster Responseoversight and administration. Amounts charged for the administration of the DisasterResponse program are determined by formula based on amounts received anddisbursed. An assessment is applied against each Disaster Response program and isrecovered over the period the funds are held, part when contributions are processed,and the remainder when grants are disbursed. For most disasters, the total assessmentis 10%.

NOTE 10 SHORT-TERM LOAN PAYABLE

CCUSA entered into a loan agreement for $3,900,000 on April 19, 2011, as a bridgeloan to finance the purchase of the office building located at 2050 Ballenger Avenue in

Alexandria, Virginia (see Note 8). The loan was secured by the proceeds of the WilliamR. Fry bequest (See Note 7). Monthly interest-only payments were required at avariable interest rate based on the one-month LIBOR rate, 0.25% at June 30, 2012.The loan matured on September 19, 2012, when the principal balance and accruedinterest thereon was paid off by the Organization.

NOTE 11 SPLIT INTEREST AGREEMENTS

CCUSA receives contributions pursuant to several charitable gift annuity contracts withdonors. The actuarially determined liability resulting from the annuity gifts was recordedat the date of the gift. The excess of the annuity gifts over the annuity liabilities isrecognized as unrestricted support. The liability amount is adjusted annually based on

the latest actuarial information available. The charitable gift annuity obligationsapproximated $50,000 and $59,000 at June 30, 2013 and 2012, respectively.

CCUSA also received a contribution of a charitable remainder unitrust in 1998. Underthis charitable remainder unitrust, a donor made a contribution to CCUSA that willremain in trust until a stipulated event, at which time the remaining trust balance willconvey to CCUSA. The unitrust was valued at market value at the time of the gift. Inconsideration of the gift, the donors will receive an annuity from the trust based on thelesser of the trust principal at the beginning of the year at a stated interest rate or theactual earnings of the trust. The liability amount is adjusted annually based on the latestactuarial information available. The assets of the unitrust are included in temporarilyrestricted net assets on the Statement of Activities. The charitable remainder unitrust

obligation approximated $59,000 and $53,000 at June 30, 2013 and 2012, respectively.


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NOTE 12 TEMPORARILY RESTRICTED NET ASSETS

Changes in temporarily restricted net assets during the year ended June 30, 2013 aredetailed as follows:

Funds

Balance Funds Released from Balance

July 1, 2012 Received Res tr ic ti on June 30, 2013

Cafferty Fellow 1,958$ -$ (1,958)$ -$Children of Children 43,669 - - 43,669Disaster Response 6,296,070 10,355,009 (7,399,329) 9,251,750Domestic Traficking 105,825 - (29,510) 76,315Family Strenghtening 53,849 100 (53,949) -

National Reliogious Partnership 3,837 - - 3,837Other 18,876 - (14,584) 4,292Reginato Trust 66,434 8,362 - 74,796Adoption 32,458 27,000 - 59,458Notre Dame Social Policy Partnership 80,193 - (80,193) -Partners in Excellence 249,050 - (75,000) 174,050U.S. Catholic Conference Children's - - - -Environmental Health 10,500 - - 10,500Annie Casey - 150,000 (13,180) 136,820Advocacy - 1,007 (1,007) -O'Brien - 532,525 (532,525) -

Wal-Mart - 1,000,000 (872,990) 127,010Sandy Education - 106,102 (102,325) 3,777

Total 6,962,719$ 12,180,105$ (9,176,550)$ 9,966,274$


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NOTE 12 TEMPORARILY RESTRICTED NET ASSETS (CONTINUED)

Changes in temporarily restricted net assets during the year ended June 30, 2012 aredetailed as follows:

Funds

Balance Funds Released from Balance

July 1, 2011 Received Restr ic tion June 30, 2012

Cafferty Fellow 91,310$ -$ 89,352$ 1,958$

Children of Children 43,669 - - 43,669

Children's Health Matters - - - -

Disaster Response 2,592,316 5,462,588 1,758,834 6,296,070

Food Service Program 758,285 - 758,285 -

Domestic Trafficking 24,532 83,722 2,429 105,825Family Strengthening 33,058 200,000 179,209 53,849

National Religious Partnership 3,842 - 5 3,837

Other 18,876 - - 18,876

Reginato Trust 81,067 - 14,633 66,434

Adoption - 50,150 17,692 32,458

Notre Dame Social Policy Partnership - 350,500 270,307 80,193

Social Policy Advocacy - 50,000 50,000 -

Partners in Excellence - 250,000 950 249,050

U.S. Catholic Conference Children's

Environmental Health 10,500 - - 10,500

Total 3,657,455$ 6,446,960$ 3,141,696$ 6,962,719$

NOTE 13 UNRESTRICTED NET ASSETS

Unrestricted Net Assets

Unrestricted net assets are available to finance the general operations of theOrganization. The only limits on the use of unrestricted net assets are the purposesspecified in the CCUSAs articles of incorporation and those limitations resulting fromthe nature of the Organization and the environment in which it operates.


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NOTE 13 UNRESTRICTED NET ASSETS(CONTINUED)

Board-Designated Net Assets

Board-designated net assets are based on voluntary resolutions by the Board ofTrustees to designate a portion of net assets for specific purposes and do not result inrestricted net assets. Since designations are voluntary and may be reversed by theBoard of Trustees at any time, designated net assets are classified as unrestricted netassets. During 2004, the Board of Trustees approved a policy to designate foroperations unrestricted net assets by transferring a portion of the unrestricted funds tothe Designated for Operations Fund. The reserve serves to address the organization'sfinancial needs when economic downturns impact the Organizations approved budget,to create an internal line of credit to manage cash flows that result from differences intiming between the Organizations expenses and receipt of revenues, and maintainfinancial flexibility and to promote public and funder confidence in the long-termsustainability of the organization by preventing chronic cash flow crises that candiminish its reputation and force its leaders to make expensive short-term, crisis-baseddecisions. The designated purpose of the Operations Fund is to address cash flowneeds of the Organization; therefore, the Board believes such funds are not subject tothe Uniform Prudent Management of Institutional Funds Acts (UPMIFA). Theappropriations from the fund are authorized by the Board of Trustees resolutions. Theinvestment objectives of this fund are primarily liquidity and secondarily return andcapital preservation.

The fund is to equal to approximately 50% of annual budgeted operating expenses or 6months of expenses on average, not including distributions to member agencies for thesubsequent year as approved by the Board at its last meeting during the current fiscalyear.

Board-designated Disaster Response funds are unrestricted net assets to fund thedisaster operations office at CCUSA and emergency disaster grants made by CCUSAto Catholic Charities around the country.

At June 30, 2013 and 2012, the Organizations unrestricted net assets were as follows:

June 30, 2013 June 30, 2012

Board-Designated:

Disaster Response 1,976,936$ 1,976,936$

Operations Fund 7,700,000 7,700,000

Total Board-Designated 9,676,936 9,676,936

Net Investment in Property and Equipment 24,992,484 26,545,287

Unrestricted and Not-Board Designated 8,545,864 5,232,053

Total Unrestricted Net Assets 43,215,284$ 41,454,276$


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NOTE 13 UNRESTRICTED NET ASSETS (CONTINUED)

The activity in the Board Designated Disaster Response Net Assets for the years endedJune 30, 2013 and 2012 was as follows:

Beginning balance as of July 1, 2011 1,976,936$

Administrative Fees and Investment and Other Income 851,215

Expenses (851,215)

Ending balance as of June 30, 2012 1,976,936

Administrative Fees and Investment and Other Income 1,049,904

Expenses (1,049,904)

Ending Balance as of June 30, 2013 1,976,936$

The net reduction in the Board Designated Disaster Response Net Assets was $-0- inboth years, due to investment income, administrative fees and other TemporarilyRestricted transfers covering all releases of disaster operations office expenses andemergency grants.

NOTE 14 PENSION PLAN

CCUSA sponsors a defined contribution 401(k) profit sharing plan covering allemployees who have reached the age of twenty-one and have completed one year ofcontinuous employment. Under the terms of the plan, CCUSA contributes 10% of theemployees compensation (3% safe harbor and 7% profit share) within statutory limits

to the plan. Pension expense was approximately $430,000 and $388,000 for the yearsended June 30, 2013 and 2012.

NOTE 15 LEASES

Leases 66 Canal Center

In October 2007, CCUSA executed a non-cancelable operating lease for its formerheadquarters (20,866 square feet) in Alexandria, Virginia, for ten years, six monthseffective through March 31, 2018. In April 2012, CCUSA moved its headquarters to theoffice building purchased by CCUSA in April 2011 (see Note 8). In August 2012,CCUSA executed a letter of intent to sublease the entire office space at 66 CanalCenter and in December 2012, a sublease agreement was signed between Catholic

Charities USA and American Bankruptcy Institute for subleasing the office space atCanal Center Plaza, 6thfloor. The sublease agreement came into effect on September1, 2013 and terminates on March 31, 2018. The sublease rent will be lower thanCCUSA's future lease payments and, accordingly, the Organization recorded accruedloss on lease obligations using a discount rate of 4.75% which approximates itsincremental borrowing rate at the date of recognition. Net leasehold improvements forCanal Center of $902,615 and related liabilities of $1,028,335 were written off andnetted into the Accrued Loss on Lease Obligations which will be amortized over the lifeof the sublease. At June 30, 2013 and 2012, accrued Loss on Lease Obligations was$1,989,773 and $2,768,548, respectively.


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NOTE 15 LEASES (CONTINUED)

Future minimum lease payments net of sublease related cost, expected subleasereceipts, and leasehold related asset and liabilities write-offs are as follows:

Former Expected

Headquarters Headquarters

Lease Payments Lease Reciepts Write-offs Net

2014 940,681 (214,191) - 726,490

2015 977,267 (504,333) - 472,9342016 1,002,097 (588,988) - 413,109

2017 1,027,606 (606,657) - 420,9492018 814,382 (466,334) - 348,048

Total Rental Payments, Receipts, and Related Costs 4,762,033 (2,380,503) - 2,381,530

Less; PV Discount on Lease Payments and Sublease Receipts 596,343 (330,306) 266,037

Net Leasehold Improvements and Related Liability Write-offs - - (125,720)

Accrued Loss on Obligations 4,165,690$ (2,050,197)$ (125,720)$ 1,989,773$

CCUSA recorded rent expense on a straight-line basis over the term of the lease. Anunamortized deferred rent obligation in the amount of $520,313 remained at June 30,2012, which represented the difference between rent expense and cash payments.CCUSA was provided a leasehold improvement allowance in the amount ofapproximately $1,043,000 as an incentive to enter into this lease. The leaseholdimprovement allowance was amortized over the term of the lease and had anunamortized balance of $571,167 as of June 30, 2012. Both balances were written offas of the signing of the sublease during fiscal year 2013 and are included as an offsetto the Accrued Loss on Lease Obligation noted above.

Rent expense was $752,848 for the year ended June 30, 2012. Lease net accretion

loss was $47,489 for the year ended June 30, 2013, and it is reported as loss on leaseobligation in the Organizations consolidated statement of activities.


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NOTE 16 COMMITMENTS AND CONTINGENCIES

Hotel Commitments

CCUSA entered into several agreements with hotels concerning room accommodationsfor its meetings and seminars through calendar year 2014. These agreements indicateCCUSA is liable for liquidated damages in the event of cancellation. At June 30, 2013,CCUSAs commitments for possible liquidated damages totaled $439,343.

Approximately $389,000 of the commitments has been paid as of January 7, 2013.

Federal Grants and Cont racts

Under the terms of the CCUSAs reimbursable government grants and contracts,CCUSA is entitled to the reimbursement of direct and indirect costs incurred. Theseexpenses are subject to audit by the cognizant government agency.

Note Payable

In July 2011, CCUSA entered into a Bond Purchase and Loan Agreement with theIndustrial Development Authority of the City of Alexandria (the Authority) and CapitalOne Public Funding, LLC (Capital One). According to the agreement's provisions, the

Authority issued a 27-year variable rate tax-exempt revenue bond in the amount of$5,210,000 to finance CCUSAs planned improvement of the purchased buildinglocated at 2050 Ballenger Avenue in the City of Alexandria consisting of office space tobe used as the CCUSAs headquarters, with any excess space being leased to othertenants. The Authority sold the Bond to Capital One, and the proceeds were loaned toCCUSA, through the execution of a Promissory Note dated with the same date as theBond issuance to evidence CCUSA's obligation to make monthly payments sufficient topay the Bond. The Note, secured by the acquired real estate, was assigned by the

Authority to Capital One who became the obligation's holder. The bonds have a

maturity date of July 14, 2038. Interest is payable monthly at a LIBOR-based variableinterest rate. Estimated future principal payments of the note are as follows:

Year Ending June 30, Amount

2014 148,196$

2015 152,233

2016 156,014

2017 216,071

2018 234,077

Thereafter 4,303,409

5,210,000$

The CCUSA also entered into an interest rate swap transaction with Capital One,evidenced by a master agreement dated and effective July 14, 2011. The notionalamount of the agreement is $5,210,000. The agreement effectively changes theCCUSAs interest exposure on the $5,210,000 loan from LIBOR-based variable to fixedrates. The swap agreement terminates July 14, 2016, and provides for a fixed interestrate of 2.65 percent. The interest rate swap agreement's fair value at June 30, 2013,approximated $133,000 in favor of Capital One.


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NOTE 16 COMMITMENTS AND CONTINGENCIES (CONTINUED)

Post Employment Commitments

CCUSA has signed employment agreements with certain management-levelemployees. Should CCUSA terminate these agreements on June 30, 2013, for otherthan good cause, it will be committed to pay the remainder of the contract, whichapproximates $1,700,000.

NOTE 17 ENDOWMENTS

CCUSA has a donor-restricted endowment fund established for the purposes ofproviding income to support specific donor-restricted activities. As required by GAAP,net assets of the endowment fund are classified and reported based on the existenceor absence of donor-imposed restrictions. The board of directors of the CCUSA hasinterpreted Virginias Uniform Prudent Management of Institutional Funds Act (UPMIFA)as requiring the preservation of the fair value of the original gift as of the gift date of thedonor-restricted endowment funds absent explicit donor stipulations to the contrary. Asa result of this interpretation, CCUSA classifies as permanently restricted net assets (a)the original value of gifts donated to the permanent endowment, (b) the original value ofsubsequent gifts to the permanent endowment, and (c) accumulations to the permanentendowment made in accordance with the direction of the applicable donor giftinstrument at the time the accumulation is added to the fund. The remaining portion ofthe donor-restricted endowment fund that is not classified in permanently restricted netassets is classified as temporarily restricted net assets until those amounts areappropriated for expenditure by the CCUSA in a manner consistent with the standard ofprudence prescribed by UPMIFA. The CCUSA considered all amounts earned on theendowment fund to be appropriated for current use.

NOTE 18 CAPITAL LEASE OBLIGATIONS

CCUSA entered into two five-year lease agreements for office equipment during fiscalyear 2013. The value of the equipment, $139,239, has been capitalized and recordedas furniture and fixtures within the consolidated statement of financial position and isbeing depreciated on a straight-line basis. An imputed interest rate of approximately4% is being amortized over the lease term.

Future minimum lease payments are as follows at June 30, 2013:

Year Ending June 30, Amount

2014 30,812$

2015 30,812

2016 30,812

2017 24,896

Total Minimum Lease Payments 117,332

Less: Amount Prepresenting Interest (8,742)

Present Value of Minimum Lease Payments 108,590$


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NOTE 19 RELATED PARTY TRANSACTIONS

On July 28, 2011, CCUSA (Sponsor) entered into an agreement with Catholic CharitiesUSA Employee Welfare Benefit Trust (the Trust) acting through its Board of Trustees.The sponsor established the Trust with the intention that the Trust would offer a seriesof welfare benefit plans, which provide health, dental, vision, and other health benefitson behalf of eligible employees of the Sponsor and its member organizations, and otheraffiliates of the Catholic Church in a manner that is consistent with the teachings of theCatholic Church.

The Trusts Board of Trustees is chaired by CCUSAs CEO, and consists of memberswho are also members of the CCUSA Board of Trustees, as well as independentmembers. The CEO and two of the Trust Board members lead organizations thatsubscribe to the Trust benefit services.

CCUSA invested $45,807 in formation costs prior to establishing the Trusts corporatestructure. On January 5, 2012, CCUSA extended a $275,000 cash advance to theTrust, which was repaid on March 8, 2012. There were no outstanding advances as ofJune 30, 2013 and 2012.

CCUSA provides certain services at no cost to the sole Trust employee. CCUSAservices are provided on a cost reimbursement basis and include payroll expenses,accounting expenses, legal fees, cell phone, shipping and postage. CCUSA hasincurred out-of-pocket expenses of $170,738 and $180,124 of which $131,635 and$94,976 have been reimbursed by the Trust during the years ended June 30, 2013 and2012, respectively. A receivable in the amount of $39,103 and $85,148 is outstandingas of June 30, 2013 and 2012, respectively.

CCUSA has contracted with the Trust for healthcare services for staff and paid a total of$678,125 and $391,473 during the years ended June 30, 2013 and 2012, respectively.

CCUSA signed a lease agreement with the LLC for 66,748 square feet of office spaceat a cost of $854,567 for the year ended June 30, 2013. The LLC incurred totalexpenses of $1,445,121, of which CCUSA absorbed $854,567 and was eliminated inconsolidation. Ballenger reports total expense of $590,554, which is attributed tounused space.


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NOTE 20 SUBSEQUENT EVENT

The Willi am R. Fry Trust Fund

On August 1, 2013, CCUSA entered into a trust agreement with the William R FryFund, establishing a Trust exclusively for the charitable purpose of supporting CCUSAsmember agencies in good standing, by providing grants to be used solely in connectionwith their poverty reduction initiatives throughout the United States of America. CCUSAfunded the Trust by contributing the sum of three million eight hundred thousand dollars($3,800,000). CCUSA and the Trust acknowledge and agree the Company shall donateto the Trust a minimum annual funding amount based on a variable percentage of theLLCs net operating income and the recommendation of the Finance Committee to theBoard of Trustees of CCUSA. The Funding agreement provides for a fundingmechanism to increase the assets in the Trust to the original amount of the William R.Fry bequest of $25,500,000 (See also Note 8).

Catholic Chariites USA FY2013 Financial Statements

Documents

Transcript of Catholic Chariites USA FY2013 Financial Statements