JEWISH COMMUNITY CENTERS OF CHICAGO

Transcription

1 JEWISH COMMUNITY CENTERS OF CHICAGO FINANCIAL STATEMENTS JUNE 30, 2012

2 JEWISH COMMUNITY CENTERS OF CHICAGO TABLE OF CONTENTS INDEPENDENT AUDITORS REPORT... 3 FINANCIAL STATEMENTS Statements of Financial Position... 4 Statements of Activities... 5 Statements of Functional Expenses Statements of Cash Flows... 8 Notes to Financial Statements

3

4 STATEMENTS OF FINANCIAL POSITION JEWISH COMMUNITY CENTERS OF CHICAGO As of June ASSETS CURRENT ASSETS Cash and Cash Equivalents $ 2,098,048 $ 2,609,454 Restricted Cash 479, ,680 Receivales, net of Allowances of $30,000 and $10,000, respectively 304, ,893 Grants Receivale 59, ,600 Current Portion of Pledges Receivale 165,581 75,589 Due from Jewish Federation of Metropolitan Chicago 464,739 Prepaid Expenses 1,602,350 1,878,972 Short-Term Investments, at Market 75, ,000 Total Current Assets 5,249,115 5,560,188 NONCURRENT ASSETS Cash Surrender Value of Life Insurance Policies 119, ,917 Long-Term Pledges Receivale, net of Discount 1,073,132 1,139,815 Prepaid Rent 770, ,000 Long-Term Investments, at Market 12,418,883 13,481,278 Beneficial Interest in Jewish Community Centers Endowment Foundation 4,450,066 4,614,860 Other Assets 195, ,784 Property and Equipment, net of Accumulated Depreciation and Amortization 12,579,779 12,983,614 Total Noncurrent Assets 31,606,347 33,327,268 $ 36,855,462 $ 38,887,456 LIABILITIES AND NET ASSETS CURRENT LIABILITIES Current Portion of Bonds and Notes Payale $ 325,433 $ 305,400 Current Portion of Capital Lease Oligation 79,568 74,954 Accounts Payale 457, ,201 Accrued Expenses 1,471,161 1,450,522 Due to Jewish Federation of Metropolitan Chicago 127,242 Deferred Revenue 10,368,800 10,482,435 Current Portion of Deferred Rent Credits 24,193 8,313 Other Liailities 238, ,574 Total Current Liailities 12,965,114 13,084,641 LONG-TERM LIABILITIES Bonds and Notes Payale 1,037,574 1,337,974 Deferred Rent Credits 30,411 54,604 Capital Lease Oligations 273, ,818 Accrued Expenses 95,362 Total Long-Term Liailities 1,341,004 1,613,758 Total Liailities 14,306,118 14,698,399 NET ASSETS UNRESTRICTED Accumulated Operating Deficit (4,564,129) (4,731,398) Board-Designated for Special Purposes 6,005,170 5,366,219 Invested in Property and Equipment 8,395,503 9,267,943 Board-Designated Endowment 63,805 1,126,315 Total Unrestricted 9,900,349 11,029,079 TEMPORARILY RESTRICTED Beneficial Interest in JCC Endowment Foundation 4,350,066 4,514,860 Undistriuted Income of Permanently Restricted Endowment Funds 1,390,557 1,826,045 Specific Purpose Funds 2,487,498 2,394,659 Total Temporarily Restricted 8,228,121 8,735,564 PERMANENTLY RESTRICTED Beneficial Interest in JCC Endowment Foundation 100, ,000 Endowment 4,320,874 4,324,414 Total Permanently Restricted 4,420,874 4,424,414 Total Net Assets 22,549,344 24,189,057 $ 36,855,462 $ 38,887,456 See accompanying notes. 4

5 STATEMENTS OF ACTIVITIES JEWISH COMMUNITY CENTERS OF CHICAGO For the Years Ended June Temporarily Permanently Temporarily Permanently Unrestricted Restricted Restricted Total Unrestricted Restricted Restricted Total SUPPORT, REVENUE AND GAINS Direct Pulic Support Contriutions $ 306,150 $ 545,911 $ 400 $ 852,461 $ 714,308 $ 411,499 $ 924 $ 1,126,731 Grants from Private Foundations 608, , , , ,223 1,277,552 Special Event Gross Event Revenues 248, , , , , ,911 Less: Direct Expenses (129,350) (129,350) (94,642) (94,642) Net Special Events 119, , , , , ,269 Total Direct Pulic Support 1,034,067 1,109, ,143,992 1,476,567 1,237, ,714,552 Indirect Pulic Support Distriution from Jewish Community Centers Endowment Foundation 83, , ,710 80, , ,702 Support from Jewish Federation of Metropolitan Chicago - Allocations 6,866,803 6,866,803 6,892,479 6,892,479 Other 1,660, ,545 1,807,029 1,567, ,545 1,713,752 Grant from JFMC Facilities Corporation 336, , , ,230 Total Indirect Pulic Support 8,947, ,026 9,254,314 8,827, ,307 9,131,163 Program Service Revenue Fees and Grants from Government Agencies 540, , , ,726 Revenue Directly Related to Program Services Program Service Fees 21,229,934 21,229,934 20,997,950 20,997,950 Memership Dues - Individuals 216, , , ,350 Services to Other Organizations 119, , , ,752 Inventory Sales 104, , , ,090 Cost of Inventory Sold (47,465) (47,465) (58,561) (58,561) Total Program Service Revenue 22,163,344 22,163,344 21,871,307 21,871,307 Other Revenue Investment Income 165, , , , , ,003 Net Realized Gains on Sale of Investments 100,096 84, ,199 95, , ,156 Net Unrealized Gains (Losses) on Investments (342,483) (306,123) (648,606) 1,104, ,925 2,032,094 Net Unrealized Gains (Losses) on Other Assets (53,001) (53,001) 25,648 25,648 Change in Beneficial Interest in Jewish Community Centers Endowment Foundation (164,794) (164,794) 447, ,294 Change in Cash Surrender Value of Life Insurance Policies 1,348 (3,940) (2,592) 19,754 4,267 24,021 Revenue from Other Sources 275, , , ,600 Total Other Revenue 198,016 (293,133) (3,940) (99,057) 1,583,110 1,697,439 4,267 3,284,816 Total Support, Revenue and Gains 32,342,715 1,123,418 (3,540) 33,462,593 33,758,840 3,237,807 5,191 37,001,838 NET ASSETS RELEASED FROM RESTRICTION Satisfaction of Restrictions 1,630,861 (1,630,861) 2,626,919 (2,626,919) EPENSES Program Services Early Childhood Services 10,475,063 10,475,063 10,914,777 10,914,777 Day Camping 7,879,997 7,879,997 7,568,564 7,568,564 Resident Camping 4,744,168 4,744,168 4,125,233 4,125,233 Children and Family Services 1,646,236 1,646,236 1,588,856 1,588,856 Recreation and Wellness 3,060,286 3,060,286 2,433,659 2,433,659 Adult Services 1,098,282 1,098,282 1,005,051 1,005,051 At Risk Individuals and Families 1,639,740 1,639,740 1,629,041 1,629,041 Other Services 1,489,482 1,489,482 1,498,979 1,498,979 Total Program Service Expenses 32,033,254 32,033,254 30,764,160 30,764,160 Supporting Services Management and General 2,558,568 2,558,568 3,455,202 3,455,202 Fundraising 510, , , ,298 Total Supporting Service Expenses 3,069,052 3,069,052 4,009,500 4,009,500 Total Expenses 35,102,306 35,102,306 34,773,660 34,773,660 CHANGE IN NET ASSETS (1,128,730) (507,443) (3,540) (1,639,713) 1,612, ,888 5,191 2,228,178 Net Assets, Beginning 11,029,079 8,735,564 4,424,414 24,189,057 9,416,980 8,124,676 4,419,223 21,960,879 NET ASSETS, ENDING $ 9,900,349 $ 8,228,121 $ 4,420,874 $ 22,549,344 $ 11,029,079 $ 8,735,564 $ 4,424,414 $ 24,189,057 See accompanying notes. 5

6 STATEMENTS OF FUNCTIONAL EPENSES JEWISH COMMUNITY CENTERS OF CHICAGO For the Year Ended June 30, 2012 Program Services Supporting Services Early Children At Risk Management Childhood Day Resident and Family Recreation Adult Individuals Other and Grand Services Camping Camping Services and Wellness Services and Families Services Total General Fundraising Total Assistance to At Risk Individuals and Families $ $ $ $ $ $ $ 85,276 $ $ 85,276 $ $ $ 85,276 Officers' Compensation 49,903 49,803 48,859 16,512 28,949 16,420 5, , ,141 23, ,941 Salaries and Wages 5,297,467 3,056,038 1,382, ,740 1,065, , , ,145 13,134, , ,281 14,204,030 Pension Plan Expenses 285, ,734 61,459 28,790 54,789 12,206 47,155 33, ,330 82,402 17, ,655 Fringe Benefits 661, , ,540 65, ,717 26, ,883 79,632 1,451, ,045 38,570 1,619,080 Payroll Taxes 578, , ,869 79, ,569 32,710 70,306 74,501 1,479, ,037 28,860 1,635,274 Professional Services 38,127 47, ,929 8,030 9,380 52,632 21,920 25, , ,498 95, ,721 Marketing 210, ,647 Office Expenses 45,044 50,268 41,704 7,411 5,542 4,695 10,266 10, ,386 8,082 2, ,231 Information Technology 87,462 92,258 53,321 25,218 22,073 7,201 39,588 27, , ,427 9, ,572 Occupancy 2,179,335 2,012, , ,744 1,152,924 54, , ,133 7,104, ,688 30,027 7,362,737 Staff Transportation 10,534 7,539 7,150 3,296 3,936 2,855 1,957 5,908 43,175 10,931 2,788 56,894 Conferences and Meetings 18,168 19,238 15,719 2,230 3,423 2,566 4,678 12,026 78,048 11,279 5,490 94,817 Financing Expenses 29,080 27,326 12,963 4,116 7,985 2,236 2,669 86,375 1, ,142 National Association Dues 21,972 23,313 12,640 3,263 2,430 2,883 1,932 68,433 68,433 Depreciation and Amortization 280, , ,300 42,481 59,744 28,294 46,592 1,225, ,056 2,400 1,333,824 Insurance 89,339 58,420 27,781 11,252 20,893 10,730 19,732 12, ,092 39, ,866 Program Supplies 585, ,277 1,048, , , , , ,024 3,775, ,108 3,776,424 Transportation , ,578 28,155 34, , , ,558 Staff Expenses 2,158 10,289 4, ,968 23,240 3, ,438 Security ,021 2,021 Employee Recruiting 10,860 15,735 14,221 2,368 4, ,373 1,248 52,482 2,928 1,885 57,295 Equipment and Vehicles 32,042 24,890 61,547 4,314 20,532 2, , , ,117 Licenses and Dues 7,612 4,141 4,742 2,129 1, ,283 1,683 22, ,921 Banking and Credit Card Processing Fees 118, ,152 56,878 19,404 17,326 2, , ,590 6, ,527 Bad Det Expense 41,577 15,499 9,968 4,662 2, , ,153 Sales Taxes 5, ,387 5,387 Contriutions to Jewish Community Centers Endowment Foundation 11,008 11,008 11,008 Life Insurance Policy Premiums 3,075 3,075 Other Operating Expenses 2,282 2,802 9, ,320 12,392 60,749 (3,016) ,242 $ 10,475,063 $ 7,879,997 $ 4,744,168 $ 1,646,236 $ 3,060,286 $ 1,098,282 $ 1,639,740 $ 1,489,482 $ 32,033,254 $ 2,558,568 $ 510,484 $ 35,102,306 See accompanying notes. 6

7 STATEMENTS OF FUNCTIONAL EPENSES (Continued) JEWISH COMMUNITY CENTERS OF CHICAGO For the Year Ended June 30, 2011 Program Services Supporting Services Early Children At Risk Management Childhood Day Resident and Family Recreation Adult Individuals Other and Grand Services Camping Camping Services and Wellness Services and Families Services Total General Fundraising Total Assistance to At Risk Individuals and Families $ $ $ $ $ $ $ 90,325 $ $ 90,325 $ $ $ 90,325 Officers' Compensation 260,089 63,592 62,860 21,262 37,477 21,252 4, , ,696 29, ,944 Salaries and Wages 5,421,717 2,874,886 1,350, ,276 1,115, , , ,874 12,808,403 1,137, ,526 14,187,077 Pension Plan Expenses 289, ,732 71,769 29,312 60,149 12,302 41,389 26, ,728 76,448 15, ,467 Fringe Benefits 684, ,033 60,497 55, ,304 18, ,314 56,812 1,192, ,080 37,668 1,610,037 Payroll Taxes 574, , ,556 58, ,453 24,430 82,196 53,988 1,344, ,821 30,367 1,526,547 Professional Services 100,146 58, ,930 25,929 14,847 7,830 3,800 28, , ,107 97, ,350 Marketing 194,119 15, ,242 Office Expenses 40,438 49,630 33,219 10,720 5,806 4,464 9,558 5, ,511 9,667 11, ,607 Information Technology 80,157 78,376 39,604 16,716 25,449 4,984 27,968 49, , ,566 17, ,446 Occupancy 2,177,239 1,798, , , ,671 93, , ,743 6,752, ,197 24,136 7,180,979 Staff Transportation 9,906 6,908 5,232 6,746 2,897 2,159 1,705 3,875 39,428 13,190 1,824 54,442 Conferences and Meetings 11,709 35,054 13,325 1,559 2,084 2,314 4,135 8,592 78,772 19,051 1,598 99,421 Financing Expenses 34,756 29,984 13,841 5,716 7,317 2, ,564 99,788 8, ,347 National Association Dues 21,621 13,494 6,447 2,424 4,266 2,128 2,411 52,791 13,064 1,381 67,236 Depreciation and Amortization 262, , ,314 37,785 56,467 20,475 60,876 1,028, ,912 12,533 1,213,174 Insurance 79,539 77,283 40,565 8,213 12,028 9,814 12,879 10, ,377 33, ,041 Program Supplies 625, , , , , , , ,516 3,255, ,025 3,260,897 Transportation , ,212 29,222 39, ,820 1,009,018 1,009,018 Staff Expenses 757 2,775 1, ,473 11,683 1, ,543 Security 7,325 1,467 8,792 Employee Recruiting 19,185 8,170 9,486 1,256 2, ,976 22,629 4,064 69,669 Equipment and Vehicles 30,843 16,811 59,227 1,791 13, ,419 2, ,444 10, ,019 Licenses and Dues 6,029 4,269 4, , , , ,962 Banking and Credit Card Processing Fees 147, ,326 49,050 9,718 18,088 13, , ,991 6,011 5, ,376 Bad Det Expense 34, (2,954) 5,257 (1,033) (1,041) (1,181) 34,047 (6,418) (678) 26,951 Sales Taxes 5, ,933 5,933 Contriutions to Jewish Community Centers Endowment Foundation 15,000 15,000 15,000 Life Insurance Policy Premiums 9,075 9,075 Other Operating Expenses 2,350 2,143 15, ,320 29,880 85, ,743 $ 10,914,777 $ 7,568,564 $ 4,125,233 $ 1,588,856 $ 2,433,659 $ 1,005,051 $ 1,629,041 $ 1,498,979 $ 30,764,160 $ 3,455,202 $ 554,298 $ 34,773,660 See accompanying notes. 7

8 STATEMENTS OF CASH FLOWS JEWISH COMMUNITY CENTERS OF CHICAGO For the Years Ended June CASH FLOWS FROM OPERATING ACTIVITIES Change in Net Assets $ (1,639,713) $ 2,228,178 Adjustments to Reconcile Change in Net Assets to Net Cash Used y Operating Activities Depreciation and Amortization 1,333,824 1,213,174 Donated Fixtures for Garoon Science Park (580,947) Net Realized Gains on Sales of Investments (184,199) (229,156) Net Unrealized (Gains) Losses on Investments 648,606 (2,032,094) Net Unrealized (Gains) Losses on Other Assets 53,001 (25,648) Amortization of Bond Premium and Discount 4,780 Increase (Decrease) in Allowance for Doutful Accounts 20,000 (40,000) (Increase) Decrease in Beneficial Interest in Jewish Community Centers Endowment Foundation 164,794 (447,294) Change in Operating Assets and Liailities Receivales 61,688 48,257 Grants Receivale 56,802 33,500 Pledges Receivale (76,310) (14,072) Prepaid Expenses 336,622 (481,975) Accounts Payale, Accrued Expenses and Other Liailities (74,175) (190,277) Due to/from Jewish Federation of Metropolitan Chicago (591,981) 1,814 Deferred Revenue (113,635) 270,849 Deferred Rent Credits (8,313) (3,021) Total Adjustments 1,626,724 (2,472,110) Net Cash Used y Operating Activities (12,989) (243,932) CASH FLOWS FROM INVESTING ACTIVITIES (Increase) Decrease in Restricted Cash (85,696) 27,717 Additions to Property and Equipment (642,919) (849,129) (Increase) Decrease in Cash Surrender Value of Life Insurance Policies 2,592 (24,021) (Increase) Decrease in Other Assets (39,378) 74,062 Proceeds from Sales and Maturities of Investments 1,949,096 2,855,418 Purchases of Investments (1,019,939) (1,849,657) Reinvested Dividends and Interest (306,187) (375,634) Net Cash Used y Investing Activities (142,431) (141,244) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from Line of Credit 2,900,000 1,500,000 Repayment of Line of Credit (2,900,000) (1,500,000) Repayment of JPMorgan Chase Bank Loans (220,367) (240,400) Proceeds from Colorado Educational and Cultural Facilities Authority G3 Bonds 770,000 Repayment of Colorado Educational and Cultural Facilities Authority F1 Bonds (830,000) (65,000) Repayment of Capital Lease Oligations (75,619) (169,611) Net Cash Used y Financing Activities (355,986) (475,011) NET DECREASE IN CASH AND CASH EQUIVALENTS (511,406) (860,187) Cash and Cash Equivalents, Beginning 2,609,454 3,469,641 CASH AND CASH EQUIVALENTS, ENDING $ 2,098,048 $ 2,609,454 SUPPLEMENTAL DISCLOSURES OF CASH FLOWS INFORMATION Cash payments for interest $ 56,878 $ 67,821 Noncash Activities: Equipment Acquired under Capital Lease $ 227,434 $ 147,339 Property and Equipment Additions Included in Accounts Payale $ 59,636 $ 83,504 See accompanying notes. 8

9 JEWISH COMMUNITY CENTERS OF CHICAGO NOTES TO FINANCIAL STATEMENTS NATURE OF ORGANIZATION Jewish Community Centers of Chicago ( JCC Chicago or Agency ) is an Illinois not-for-profit corporation dedicated to ensuring a strong and virant Jewish life and community for generations to come. Through a mix of formal and informal education, recreational and cultural activities, JCC Chicago provides quality experiences that enrich the lives of individuals, families and the community at large. Founded in 1903, JCC Chicago served the needs of the urgeoning population of Chicago s Jewish immigrants, and over a century later, JCC continues to make an impact through its programs and services happening inside and outside the walls of its uildings. JCC Chicago welcomes people of all ages, faiths, and ackgrounds and provides innovative programs designed to meet the needs of everyone from infants to adults. The primary sources of revenue are program service fees, grants, contriutions and an allocation from an affiliated agency (Note 3). JCC Chicago provides a wide array of contemporary life-enriching programs and services: Early Childhood Services At JCC Chicago, parents and teachers create an educational partnership that nurtures and challenges each child to grow and develop in their first formal learning experience. Using cutting-edge rain research and developmentally appropriate practice, JCC Chicago encourages the strengths and individuality in each child. Through the lens of Jewish culture and tradition, children have fun learning aout themselves, their values, their community and the world, preparing them for a lifelong journey of joy and discovery. Throughout the Chicago metropolitan area, JCC Early Childhood programs and services are provided for children from six weeks to five years, as well as their families, and include full-day infant/toddler programs, half-day and full-day junior kindergarten and kindergarten, full-day childcare, ackup care, summer fun, enrichment classes, adult/child classes, play villages and parenting and family events. JCC Early Childhood also provides Preschool For All and Early Head Start, which are state and federally funded programs. Day Camping At JCC Chicago Day Camps, children have fun, grow, make new friends, experience a wide range of activities, and discover and expand their interests and talents with the help of staff and specialists who can e trusted like family. Jewish values, tradition, spirit and Israeli culture are woven into camp days through songs, art, stories, sports, drama, games and celerations. Offering a wide range of camping activities for kids three years old through 10th grade, JCC Day Camping programs include traditional day camps, specialty camps for sports, performing arts, Tween Adventure and counselor-in-training programs. Summer programs are provided throughout metropolitan Chicago and camps are traditional or specialty, half-day or full-day, and aim to uild skills, oost self-esteem and teach important Jewish values. Resident Camping Spanning 600 acres on eautiful Lake Blass near the Wisconsin Dells, JCC Chicago s Camp Chi provides a complete overnight camping experience for oys and girls, ages nine to sixteen, with more than 40 specialty programs, including age and gender specific opportunities. At JCC Camp Chi, children and teens develop self-confidence and cultivate lasting friendships in an environment rich in Jewish culture and summer fun. Providing a one-to-three staff-to-camper ratio and small cain groups, JCC Camp Chi ensures that campers receive regular personalized attention. The modern camp facilities are equipped with unmatched amenities that ring campers summers alive through activities such as horseack riding at private stales, sports in an air-conditioned gymnasium, water skiing off of private docks and much more. Campers also enjoy special Shaat celerations and Israel education programs, which comined with the interactions and connections with other Jewish campers and Israeli staff sets the groundwork for a uniquely powerful sense of pride for their Jewish heritage. 9

10 JEWISH COMMUNITY CENTERS OF CHICAGO NOTES TO FINANCIAL STATEMENTS NATURE OF ORGANIZATION (Continued) Adult Services JCC Chicago provides activities for adults of all ages throughout the Chicagoland area. JCC offers opportunities to invigorate the ody and the mind. Adult programs and services include the Sidney N. Shure Kehilla Program, Mother s Circle, Grandparent s Circle, various film series, Exploritas and Shalom Over 50. There are also day-long excursions to theatre and special events throughout the year as well as domestic and international travel opportunities. Volunteer opportunities are also availale for individuals looking to contriute to the community. Children and Family Services JCC Chicago programs are provided to school-aged children, teens and families throughout the Chicago metropolitan area teaching life lessons and skills that serve them for a lifetime. Children may participate in Shaat activities, e part of mitzvah projects, learn to swim with the Red Cross swimming instruction program, share special experiences through the Me and My Dad Program or learn the value of team uilding through our Sports and Leagues programs. For teens, there are many opportunities to make friends through programs like Chi Town Connection, JCC Maccai and BBYO. For families, JCC Chicago offers activities that include holiday parties, family travel adventures, as well as special programs including Israeli Scouts, Got Shaat? and Start Smart footall and asketall. Other children and family services include JCC AfterSchool, Vacation Days, Extraordinary Kids, the JCC Theatre Program, as well as outreach to under-engaged individuals and families in the community. Recreation and Wellness Recreation and Wellness programs include sports classes and leagues with some including travel group and private aquatics classes, swim team, group exercise, fitness and open swim, general wellness classes and the JCC Maccai Games. The JCC Maccai Games is an athletic competition that introduces Jewish teens from around the world, involves them in community, instills confidence in their skills and talents, and inspires them to open their lives to community service. At Risk Individuals and Families Through the Dina and Eli Field EZRA Multi-Service Center (MSC) and JUF Uptown Café, emergency services are provided to homeless and disadvantaged individuals and families. MSC is funded y the Jewish Federation of Metropolitan Chicago and is administered y JCC in Chicago's Uptown neighorhood. Services include emergency assistance, food and clothing distriution, eviction prevention, advocacy, jo placement, social opportunities and interim housing. The Uptown Café is a Jewish Federation-sponsored kosher meal program coordinated y MSC. Designed to respond to the needs of Chicago's indigent population, the program is staffed y volunteers from JCC Chicago, the Jewish United Fund (JUF), synagogues and youth groups providing hundreds of meals each week, as well as an atmosphere that offers dignity to the people it serves. Other Services The Perlstein Resort and Conference Center and Pritzker Center for Jewish Education (Pritzker Center) offer additional programs and services through JCC Chicago. The Perlstein Resort and Conference Center is JCC Chicago s premier destination for families, groups, usinesses and individuals throughout the Midwest, providing programming, accommodations and meaningful events for guests. The Pritzker Center is charged y the JCC Board of Directors to serve the Jewish mission of the Agency y enhancing Jewish life for Jews of all ages and ackgrounds through formal and informal learning experiences. The Pritzker Center strengthens and articulates a Jewish vision, develops Jewish educational models and programs, and offers resources for staff and lay leaders. 10

11 JEWISH COMMUNITY CENTERS OF CHICAGO NOTES TO FINANCIAL STATEMENTS NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES This summary of significant accounting policies is presented to assist in understanding the Agency s financial statements. The financial statements and notes are representations of management, who is responsile for their integrity and ojectivity. These accounting policies conform to accounting principles generally accepted in the United States of America and have een consistently applied in the preparation of the financial statements. BASIS OF PRESENTATION The Agency maintains its financial accounts in accordance with the principles and practices of fund accounting. For financial reporting purposes, net assets and related activity for the Agency s funds are classified as unrestricted, temporarily restricted, or permanently restricted ased on the existence or asence of donor-imposed restrictions. Unrestricted net assets include the Agency s General Operating Fund, as well as several other funds which have een designated y the Agency s Board of Directors for various specified purposes. Temporarily restricted net assets represent assets suject to donor-imposed stipulations of oth time and purpose which are to e satisfied y the Agency s actions or y the satisfaction of time restrictions. Temporarily restricted net assets are reclassified to unrestricted net assets when the restrictions have een met. Temporarily restricted assets at June 30, 2012 and 2011 represent amounts classified for specific purposes and sustantially all of the eneficial interest in the Jewish Community Centers Endowment Foundation (the Foundation) (Note 11). Permanently restricted net assets represent funds suject to the restrictions of gift instruments requiring the principal to e maintained permanently intact y the Agency. These assets result from amounts donated and invested for endowment purposes and a portion of the eneficial interest in the Foundation (Note 12). The income from certain endowments is restricted for educational programs and humanitarian efforts. Other income earned on related investments may e used for general operating purposes and is reported as temporarily restricted revenue until appropriated for expenditure. USE OF ESTIMATES The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liailities, disclosure of contingent assets and liailities at the date of the financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Actual results may differ from those estimates. CASH EQUIVALENTS Cash equivalents consist of money market accounts and investments with original maturities of 90 days or less invested with financial institutions. RECEIVABLES Receivales consist primarily of program service fees, accrued interest, and other miscellaneous items and are reported at net realizale value, which is the amount management expects to collect from alances outstanding at year-end. An allowance for uncollectile amounts is estimated from historical experience and projection of trends. Amounts deemed uncollectile are recorded as ad det expense. 11

12 JEWISH COMMUNITY CENTERS OF CHICAGO NOTES TO FINANCIAL STATEMENTS NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) PLEDGES RECEIVABLE Unconditional promises to give contriutions are recorded as revenue when the promises are received. The pledges receivale are discounted to their estimated present value. Management assesses the pledges to e fully collectile, thus no allowance for uncollectile pledges is warranted. INVESTMENTS The Agency follows the provisions of the Financial Accounting Standards Board (FASB) Codification for accounting for investments held y not-for-profit organizations. This standard requires that investments in marketale securities e accounted for at fair value. Fair value is ased on quoted market prices. Realized gains and losses are the differences etween the proceeds received and the cost of investments sold. Unrealized gains and losses are the differences etween the fair value and the cost of investments and are included in earnings. DEFERRED REVENUE AND PREPAID EPENSES Revenue from the advance receipt of fees and prepayment of expenses, primarily supplies, relating to summer camps and summer and fall programs at the Agency s community centers and camps have een deferred as of the respective year-end. PROPERTY AND EQUIPMENT Property and equipment purchases of $1,500 or more are recorded at cost and depreciated over their estimated useful lives on a straight-line asis, with the exception of leasehold improvements, which are amortized over the terms of the respective leases, which range from three to thirty years. It is management s intent to renew the leases that are with the affiliated agency and, as such, the terms of the leases have een extended to coincide with the life of the leasehold improvements. Major renewals and etterments that extend the useful life of an asset are capitalized while routine maintenance and repairs are expensed as incurred. The estimated useful lives for determining depreciation and amortization of the various classes of assets are as follows: Asset Class Years Buildings and Building Improvements Infrastructure Improvements Land Improvements... 7 Leasehold Improvements... Term of Lease Equipment and Machinery Furniture and Fixtures... 7 Information Technology Equipment... 3 Software Motor Vehicles

13 JEWISH COMMUNITY CENTERS OF CHICAGO NOTES TO FINANCIAL STATEMENTS NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) COLLECTIONS The Agency s collections are made up of religious, art, and other ojects that are held for display, education and other purposes. These collections, which were acquired through purchases and contriutions since the Agency s inception, are not recognized as assets on the statements of financial position. RECOGNITION OF SUPPORT AND REVENUE Contriutions and grants from private foundations are recognized as support or revenue when received. All contriutions and private grants are considered availale for unrestricted use unless specifically restricted y the donor or y laws and regulations. Government grants, including those passed through from an affiliated agency, are recorded as support as related costs are recognized. DONATED GOODS, PROPERTY AND EQUIPMENT AND SERVICES There were no donations of goods, property and equipment or services in Property and equipment of $580,947 related to the Garoon Science Park were donated in These amounts are reflected as contriutions at their estimated fair values at the dates of receipt. In addition, a numer of unpaid volunteers and memers of the Agency s Board of Directors have made significant contriutions of their time to the Agency s activities. The value of these services is not reflected in these financial statements since they do not meet the criteria for recognition under the FASB Codification topic related to accounting for contriutions received and made. FUNCTIONAL EPENSES The costs of providing various programs and other activities have een summarized on a functional asis in the statements of activities. Expenses are charged directly to programs, management and general or fundraising categories ased upon specific identification where possile. Accordingly, certain costs have een allocated among the programs and supporting services enefited, ased on direct charges or appropriate methods determined y management, primarily allocation on the asis of predetermined ratios. Management modified its allocation methodology in 2012 to etter reflect the effective utilization of resources. INCOME TAES The Agency is exempt from federal income tax under Section 501(c) (3) of the Internal Revenue Code and, therefore, has made no provision for federal income taxes in the accompanying financial statements. In addition, the Agency has een determined y the Internal Revenue Service not to e a private foundation within the meaning of Section 509(a) of the Internal Revenue Code. The Agency is similarly exempt for state income tax purposes. 13

14 JEWISH COMMUNITY CENTERS OF CHICAGO NOTES TO FINANCIAL STATEMENTS NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) INCOME TAES (Continued) The Agency follows the guidance in the FASB Codification topic related to uncertainty in income taxes which prescries a comprehensive model for recognizing, measuring, presenting and disclosing in the financial statements uncertain tax positions that the Agency has taken or expects to take in its tax returns. Under the guidance, the Agency may recognize the tax enefit from an uncertain tax position only if it is "more likely than not that it is sustainale, ased on its technical merits. The tax enefits recognized in the financial statements from such a position should e measured ased on the largest enefit that has a greater than 50% likelihood of eing realized upon ultimate settlement with a taxing authority having full knowledge of all relevant information. The Agency elieves that it has appropriate support for the positions taken on its returns. The Agency files its forms 990 in the federal jurisdiction and the office of the state's attorney general for the State of Illinois. The Agency is generally no longer suject to examination y the Internal Revenue Service or the State of Illinois for years efore NOTE 2 RESTRICTED CASH Restricted cash includes amounts contriuted to construct and maintain a science park at the Lake County Jewish Community Campus. The donor stipulated that the funds and any interest thereon e segregated from unrestricted Agency ank accounts. NOTE 3 AFFILIATED AGENCIES Pursuant to its Principles of Affiliation, Jewish Federation of Metropolitan Chicago (Jewish Federation) sustantially susidizes the operations of the Agency s General Operating Fund, not including any deficits which might e incurred y Camp Chi, which would e funded from other sources. The Jewish Federation susidy was $6,866,803 in 2012 and $6,892,479 in The Jewish Federation also provided $1,807,029 of other support in 2012 and $1,713,752 of other support in Amounts owed to the Agency, including those for the operations of the EZRA Multi-Service Center, det service at the Jaco Duman Jewish Community Center at Woodland Commons, and the net amount of various other items owed y the Jewish Federation were $196,554 at June 30, 2012 and $32,897 at June 30, JFMC Facilities Corporation, a Jewish Federation related entity, provided a $336,772 grant in 2012 and a $287,230 grant in 2011 for funding various costs at the Bernard Weinger Jewish Community Center, a facility leased from JFMC Facilities Corporation. Amounts owed to the Agency y JFMC Facilities Corporation for grants net of amounts owed y the Agency for rent, utilities and other items was $287,952 as of June 30, Amounts owed to JFMC Facilities Corporation as of June 30, 2011 was $161,479. The Jewish United Fund, a Jewish Federation related entity, owed the Agency $19,767 at June 30, The Agency owed the Jewish United Fund $1,340 at June 30, The affiliated net receivales and payales listed aove are reflected in the statements of financial position as due from/to Jewish Federation of Metropolitan Chicago. 14

15 JEWISH COMMUNITY CENTERS OF CHICAGO NOTES TO FINANCIAL STATEMENTS NOTE 4 PLEDGES RECEIVABLE Pledges at June 30 consist of items receivale in: Less than One Year... $ 165,581 $ 75,589 One to Five Years , ,156 More Than Five Years... 1,247,623 1,376,777 1,757,254 1,800,522 Less: Discount to Net Present Value... (518,541) (585,118) Net Pledges Receivale... 1,238,713 1,215,404 Less: Current Portion... (165,581) (75,589) Long Term Portion... $ 1,073,132 $ 1,139,815 The discount rate used in determining the net present value of pledges receivale is 3.825%. In the year ended June 30, 2009, the Z Frank Apachi Supporting Foundation ( Z FA Foundation) made a 25-year pledge to the Agency. Annual distriutions are calculated at 6% of the market value of its invested assets as of Septemer 30 of each fiscal year. The Board of the Z FA Foundation has discretion to revisit the distriution policy annually. NOTE 5 INVESTMENTS SHORT-TERM INVESTMENTS Bank Certificates of Deposit... $ 75,018 $ 100,000 The JCC Auxiliary Operations Fund held the certificates of deposit for 2012 and LONG-TERM INVESTMENTS Investments attriutale to the Agency s several funds are included in pooled investment accounts and consisted of the following: Common Stocks and American Depository Receipts... $ 2,033,508 $ 2,127,904 Mutual Funds... 10,385,375 11,353,374 $ 12,418,883 $ 13,481,278 The interests in the pooled investments of the several funds and the allocation of dividend and interest income (net of expenses) on the investments are computed ased on the percentage interests of the participating funds. Investment advisory and custodial expenses were $26,069 for 2012 and $40,488 for Expenses of the various fund managers were paid from and accordingly reduce the investment earnings of their respective funds. Income from endowment fund investments is transferred to Temporarily Restricted Funds in accordance with the stipulations of the donors of those funds. The Agency s cost asis of these long-term investments was $11,411,603 at June 30, 2012 and $11,825,391 at June 30,

16 JEWISH COMMUNITY CENTERS OF CHICAGO NOTES TO FINANCIAL STATEMENTS NOTE 6 JEWISH COMMUNITY CENTERS ENDOWMENT FOUNDATION The Agency and the Jewish Federation entered into an agreement to create the Jewish Community Centers Endowment Foundation (Foundation). Pursuant to the agreement, which controls much of the Foundation s activities, all endowment contriutions to the Agency will e placed in the Foundation and the Agency will receive an annual distriution from the Foundation in accordance with the Jewish Federation s Controlled Growth Distriution Policy (CGDP). Under this policy, the distriution rate is ased on the market performance of the Jewish Federation s investment pool, with certain caps and floors to provide staility during volatile market environments. The CGDP also includes a target growth rate of 2.5% per year. In addition, in the event of dissolution of the Foundation or termination of the affiliation agreement etween the Agency and the Jewish Federation, the Foundation s assets will e transferred to the Jewish Federation. The Foundation reported total contriutions of $63,820 in 2012 and $10,390 in On the statements of financial position, the Agency has recorded its 100% eneficial interest in the Foundation equal to the net assets of the Foundation. Fundraising for the Foundation is conducted y the Agency in coordination with the Jewish Federation. Accordingly, these expenses are included in the Agency s financial statements, while the contriutions received are included in the Foundation s financial statements. NOTE 7 FAIR VALUE MEASUREMENTS The FASB Codification estalishes a framework for measuring fair value. That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liailities (level 1 measurement) and the lowest priority to unoservale inputs (level 3 measurements). Inputs are roadly defined as assumptions market participants would use in pricing an asset or liaility. The three levels of the fair value hierarchy are descried elow: Level 1 Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liailities in active markets that the Agency has the aility to access at the measurement date. Level 2 Inputs to the valuation methodology include: Quoted prices for similar assets or liailities in active markets; Quoted prices for identical or similar assets or liailities in inactive markets; Inputs other than quoted prices that are oservale for the asset or liaility; Inputs that are derived principally from, or corroorated y, oservale market data, y correlation or other means. If the asset or liaility has a specified (contractual) term, the Level 2 input must e oservale for sustantially the full term of the asset or liaility. Level 3 Inputs to the valuation methodology are unoservale and significant to the fair value measurement. The asset s or liaility s fair value measurement level within the fair value hierarchy is ased on the lowest level of any input that is significant to the fair value measurement. Valuation techniques need to maximize the use of oservale inputs and minimize the use of unoservale inputs. 16

17 JEWISH COMMUNITY CENTERS OF CHICAGO NOTES TO FINANCIAL STATEMENTS NOTE 7 FAIR VALUE MEASUREMENTS (Continued) Following is a description of the valuation methodologies used for assets measured at fair value. There have een no changes in the methodologies used at June 30, 2012 or Level 1 Fair Value Measurements The fair values of common stocks and American depository receipts, mutual funds, and money market funds are ased on quoted market prices, when availale. Level 2 Fair Value Measurements The Agency has no level 2 fair value measurements. Level 3 Fair Value Measurements The Beneficial Interest in the Endowment Foundation is not actively traded, and significant oservale inputs are not availale. The methods descried aove may produce a fair value calculation that may not e indicative of net realizale value or reflective of future fair values. Furthermore, while the Agency elieves its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. Fair values of assets measured on a recurring asis at June 30, 2012 are as follows: Quoted Prices in Active Significant Markets for Other Significant Identical Oservale Unoservale Assets Inputs Inputs Fair Value (Level 1) (Level 2) (Level 3) Common Stocks and American Depository Receipts Basic Materials... $ 67,561 $ 67,561 $ $ Consumer Discretionary , ,122 Consumer Staples , ,212 Energy , ,897 Financials , ,782 Health Care , ,809 Industrials , ,126 Information Technology , ,551 Telecommunications Services... 2,608 2,608 Materials... 40,840 40,840 Total Common Stocks and American Depository Receipts... 2,033,508 2,033,508 17

18 JEWISH COMMUNITY CENTERS OF CHICAGO NOTES TO FINANCIAL STATEMENTS NOTE 7 FAIR VALUE MEASUREMENTS (Continued) Quoted Prices in Active Significant Markets for Other Significant Identical Oservale Unoservale Assets Inputs Inputs Fair Value (Level 1) (Level 2) (Level 3) Mutual Funds Fixed Income... $ 3,858,407 $ 3,858,407 $ $ Small Company Stocks , ,687 International... 1,515,567 1,515,567 Commodities , ,316 Emerging Markets , ,235 Real Estate , ,383 Hedge Fund of Funds... 1,302,012 1,302,012 Money Market Funds , ,768 Total Mutual Funds... 10,385,375 10,385,375 Beneficial Interest in Foundation... 4,450,066 4,450,066 Total Assets... $ 16,868,949 $ 12,418,883 $ $ 4,450,066 Fair values of assets measured on a recurring asis at June 30, 2011 are as follows: Quoted Prices in Active Significant Markets for Other Significant Identical Oservale Unoservale Assets Inputs Inputs Fair Value (Level 1) (Level 2) (Level 3) Common Stocks and American Depository Receipts Consumer Discretionary... $ 296,288 $ 296,288 $ $ Consumer Staples , ,737 Energy , ,817 Financials , ,260 Health Care , ,884 Industrials , ,655 Information Technology , ,087 Telecommunications Services... 4,312 4,312 Materials... 95,864 95,864 Total Common Stocks and American Depository Receipts... 2,127,904 2,127,904 18

19 JEWISH COMMUNITY CENTERS OF CHICAGO NOTES TO FINANCIAL STATEMENTS NOTE 7 FAIR VALUE MEASUREMENTS (Continued) Quoted Prices in Active Significant Markets for Other Significant Identical Oservale Unoservale Assets Inputs Inputs Fair Value (Level 1) (Level 2) (Level 3) Mutual Funds Fixed Income... $ 4,117,602 $ 4,117,602 $ $ Small Company Stocks , ,504 International... 1,772,169 1,772,169 Commodities... 1,353,196 1,353,196 Emerging Markets , ,332 Real Estate , ,829 Hedge Fund of Funds... 1,328,143 1,328,143 Money Market Funds , ,599 Total Mutual Funds... 11,353,374 11,353,374 Beneficial Interest in Foundation... 4,614,860 4,614,860 Total Assets... $ 18,096,138 $ 13,481,278 $ $ 4,614,860 Fair values for investments are determined y reference to quoted market prices and other relevant information generated y market transactions. Fair value for the eneficial interest in the Foundation, as reflected in the financial statements, represents the net assets value from the Foundation s audited financial statements. The tale elow presents information aout the changes in the eneficial interest in the JCC Endowment Foundation, which is measured at fair value on a recurring asis using significant unoservale inputs: Balance, Beginning of Year... $ 4,614,860 $ 4,167,566 Contriutions Received... 63,820 10,390 Investment Income... 35,038 34,804 Net Realized Gain on Investment , ,559 Net Unrealized Gain (Loss) on Investment... (145,768) 454,243 Distriution Received from the Trust... (243,708) (237,702) Balance, End of Year... $ 4,450,066 $ 4,614,860 The change in value of the eneficial interest in the JCC Endowment Foundation is included in other revenue in the statements of activities and is related to an asset still held at the statements of financial position date. 19

20 JEWISH COMMUNITY CENTERS OF CHICAGO NOTES TO FINANCIAL STATEMENTS NOTE 8 PROPERTY AND EQUIPMENT Land... $ 957,106 $ 957,106 Buildings... 6,435,848 6,435,848 Building Improvements... 7,871,613 7,577,973 Infrastructure Improvements , ,784 Land Improvements... 48,573 10,999 Leasehold Improvements... 6,537,697 6,482,562 Equipment and Furniture... 6,927,030 6,775,262 Vehicles , ,890 Computer Equipment... 1,748,486 1,059,874 Office Equipment ,845 92,655 Equipment Under Capital Lease , ,842 Software , ,219 Construction in Progress , ,029 32,472,033 31,542,043 Less Accumulated Depreciation and Amortization... 19,892,254 18,558,429 $ 12,579,779 $ 12,983,614 Depreciation and amortization expense was $1,333,824 in 2012 and $1,213,174 in NOTE 9 BONDS AND NOTES PAYABLE Bond Payale of $1,015,000 to Colorado Educational and Cultural Facilities Authority, payale in annual installments with interest payale monthly at a variale rate over 16 years, due Septemer 1, The onds were refinanced on July 1, $ $ 830,000 Bond Payale of $770,000 to Colorado Educational and Cultural Facilities Authority, payale in annual installments with interest payale monthly at a variale rate (1.16% at June 30, 2012) over 12 years, due Septemer 1, ,000 Note Payale of $3,000,000 to JPMorgan Chase Bank, payale in equal monthly installments of $16,700 plus interest at LIBOR (.24% at June 30, 2012) plus 115 asis points; 4-year term with principal amortized over 15 years, due Novemer 30, , ,707 Note Payale of $400,000 to JPMorgan Chase Bank, payale in equal monthly installments of $3,334 plus interest at LIBOR plus 50 asis points; 10-year term due Septemer 30, , ,667 1,363,007 1,643,374 Less Current Portion , ,400 Long-Term Portion... $ 1,037,574 $ 1,337,974 The notes payale to JPMorgan Chase Bank are guaranteed y the Jewish Federation. 20