2007-2006 june 30 the florida bar financial statements

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  • 7/27/2019 2007-2006 June 30 The Florida Bar Financial Statements


    The Florida Bar and SubsidiariesFinancial Statements andSupplemental Information

    June 30, 2007 and 2006

  • 7/27/2019 2007-2006 June 30 The Florida Bar Financial Statements


    The Florida Bar and SubsidiariesTable of ContentsJune 30, 2007 and 2006

    Independent Auditors' Report 1 - 2Management's Discussion and Analysis 3-7 Financial Statements

    Consolidated Statements of Net Assets 8Consolidated Statements of Revenues, Expenses, and Changes in Net Assets 9Consolidated Statements of Cash Flows 10- 11Notes to Consolidated Financial Statements 12 - 27

    Supplementary InformationConsolidating Statement of Net Assets as of June 30, 2007. 28 - 29Consolidating Statement of Revenues, Expense and Changes

    in Net Assets for the year ended June 30,2007. 30Consolidating Statement of Cash Flows for the year endedJune 30, 2007. 31 - 32General Fund Schedule of Budgeted and Actual Revenues and Expensesfor the year ended June 30, 2007. 33 - 41General Fund Reconciliation of Revenues and Expenses on a Budgetary Basis toTotals Per the Consolidating Schedule of Statement of Revenues, Expensesand Changes in Net Assets for the year ended June 30, 2007. 42Clients' Security Fund Schedule of Budgeted and Actual Revenues andExpenses for the year ended June 30, 2007. 43Certification Fund Schedule of Budgeted and Actual Revenues and Expensesfor the year ended June 30, 2007. 44Sections Fund Schedule of Budget and Actual Revenues and Expenses for theyear ended June 30,2007. 45 - 46

    Other ReportsReport on Internal Control Over Financial Reporting and On Compliance andOther Matters Based on an Audit of Financial Statements Performed inAccordance with Government Auditing Standards 47 - 48

  • 7/27/2019 2007-2006 June 30 The Florida Bar Financial Statements


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    Independent Auditors' ReportBoard of GovernorsThe Florida BarTallahassee, FloridaWe have audited the accompanying consolidated financial statements of the businesstype activities of The Florida Bar and Subsidiaries (The Florida Bar) as of and for theyears ended June 30, 2007 and 2006, which comprise The Florida Bar's basic financialstatements as listed in the table of contents. These financial statements are theresponsibility of The Florida Bar's management. Our responsibility is to express anopinion on these financial statements based on our audits.We conducted our audits in accordance with auditing standards generally accepted inthe United States of America and the standards applicable to financial audits containedin Government AUditing Standards, issued by the Comptroller General of the UnitedStates. Those standards require that we plan and perform the audit to obtainreasonable assurance about whether the financial statements are free of materialmisstatement. An audit includes examining, on a test basis, evidence supporting theamounts and disclosures in the financial statements. An audit also includes assessingthe accounting principles used and significant estimates made by management, as wellas evaluating the overall financial statement presentation. We believe that our auditsprovide a reasonable basis for our opinion.In our opinion, the consolidated financial statements referred to above present fairly, inall material respects, the financial position of the business-type activities of The FloridaBar and Subsidiaries as of June 30, 2007 and 2006, and the changes in financialposition and cash flows thereof for the years then ended in conformity with accountingprinciples generally accepted in the United States of America.In accordance with Government Auditing Standards, we have also issued our reportdated October 4, 2007, on our consideration of The Florida Bar and Subsidiaries'internal control over financial reporting and on our tests of its compliance with certainprovisions of laws, regulations, contracts, and grant agreements and other matters. Thepurpose of that report is to describe the scope of our testing of internal control overfinancial reporting and compliance and the results of that testing, and not to provide anopinion on the internal control over financial reporting or on compliance. That report isan integral part of an audit performed in accordance with Government AuditingStandards and should be considered in assessing the results of our audit.

  • 7/27/2019 2007-2006 June 30 The Florida Bar Financial Statements


    Board of GovernorsThe Florida BarPage 2

    The management's discussion and analysis on pages 3 through 7 are not a required part of thebasic financial statements but is supplementary information required by accounting principlesgenerally accepted in the United States of America. We have applied certain limitedprocedures, which consisted principally of inquiries of management regarding the methods ofmeasurement and presentation of the required supplementary information. However, we did notaudit the information and express no opinion on it.Our audits were performed for the purpose of forming an opinion on the consolidated financialstatements that collectively comprise The Florida Bar and Subsidiaries' basic financialstatements. The supplementary information as listed in the table of contents, is presented forthe purposes of additional analysis and is not a required part of the basic consolidated financialstatements of The Florida Bar. Such information has been subjected to the auditing proceduresapplied in the audit of the basic consolidated financial statements and, in our opinion, is fairlystated in all material respects in relation to the basic consolidated financial statements taken asa whole.

    ~ ~ _ ~ A L e . -T a l i a h a S S ~ e , ~ : October 4, 2007

  • 7/27/2019 2007-2006 June 30 The Florida Bar Financial Statements


    Management's Discussion and Analysis

  • 7/27/2019 2007-2006 June 30 The Florida Bar Financial Statements


    The Florida Bar and SubsidiariesManagement's Discussion and AnalysisThe Florida Bar is the statewide professional and regulatory organization for lawyers with morethan 81,500 members. Headquartered in Tallahassee, The Florida Bar is a unified state bar byrule of the Supreme Court of Florida. Membership in The Florida Bar is a necessary component ofSupreme Court of Florida regulation of all lawyers licensed to practice law in Florida (Article IV,Section 15, Florida Constitution). The foundation for the organization is built on a philosophy ofequity and ethics. Through its programs and services, the Bar supports this philosophy with fourpillars that function as the mission of The Florida Bar: providing public service, protecting rights,promoting professionalism and pursuing justice.

    Overview of the Financial StatementsThis annual report consists of three parts - management's discussion and analysis, the basicconsolidated financial statements, and an optional section that presents supplementaryinformation. The supplementary information includes consolidating statements and comparisons ofactual results to budgeted results. The basic consolidated financial statements present theconsolidated financial position, results of operations, and cash flows of the Florida Bar and itssubsidiaries. The Florida Bar performs two overall activities as the statewide regulators of thepractice of law and the professional association of lawyers. Its activities are accounted for as aproprietary type enterprise fund because it charges fees to provide its services similar to abusiness enterprise.The Statement of Net Assets includes all of The Florida Bar's assets and liabilities. The net assetsare the difference between The Florida Bar's assets and liabilities. The Statement of Revenues,Expenses, and Changes in Net Assets include all of The Florida Bar's revenues and expensesregardless of when the cash is received or paid. The change in net assets is one way to measureThe Florida Bar's financial health or position. A Statement of Cash Flows provides additionalinformation regarding the change in The Florida Bar's cash position.

    Summary of OperationsAt June 30, 2007 and 2006, The Florida Bar had $58,556,200 and $52,906,350, respectively intotal assets. Of this amount $51,221,438 and $46,034,465 was held in cash and investments and$6,339,329 and 5,904,229 was invested in capital assets at June 30, 2007 and 2006, respectively.The primary liability at June 30, 2007 and 2006 was deferred revenue of $9,362,874 and$9,659,687, respectively, resulting from advance collection of member fees and prepayments forContinuing Legal Education registrations. Our net assets were $42,327,971 and $36,311,836 atJune 30, 2007 and 2006, respectively.These amounts are in line with the prior year's balances given the current changes in net assets.The original operating budgets for the General Fund (excluding the wholly-owned subsidiary andcontrolled entities) for the years ended June 30,2007 and 2006, approved by the Florida SupremeCourt, planned on an increase in net assets of $724,991 and $482,000, respectively. After Boardof Governor amendments, the planned (decrease) increase became $(951,934) and $726,314,respectively. General Fund actual operations resulted in a change in net assets of $2,963, 163 and$2,582,203, respectively. This improved performance resulted primarily from better than plannedinvestment returns, in


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