2013-2012 june 30 the florida bar financial statements

8/13/2019 2013-2012 June 30 The Florida Bar Financial Statements

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The Florida Bar and SubsidiariesFinancial Statements andSupplemental Information

June 30, 2013 and 2012


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The Florida Bar and SubsidiariesTable of ContentsJune 30, 2013 and 2012

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

Consolidated Statements of Net Position 8Consolidated Statements of Revenues, Expenses, and Changes in Net Position 9Consolidated Statements of Cash Flows 10 - 11Notes to Consolidated Financial Statements 12 - 28

Supplementary Informat ionConsolidating Statement of Net Position as of June 30 2013 29 - 30Consolidating Statement of Revenues, Expenses and Changesin Net Position for the year ended June 30 2013 31Consolidating Statement of Cash Flows for the year endedJune 30 2013. 32 - 33General Fund Schedule of Budgeted and Actual Revenues and Expensesfor the year ended June 30 2013. 34 - 43General Fund Reconciliation of Revenues and Expenses on a Budgetary Basis toTotals Per the Consolidating Statement of Revenues, Expensesand Changes in Net Position for the year ended June 30 2013. 44Clients Security Fund Schedule of Budgeted and Actual Revenues andExpenses for the year ended June 30 2013. 45Certification Fund Schedule of Budgeted and Actual Revenues and Expensesfor the year ended June 30 2013. 46Sections Fund Schedule of Budgeted and Actual Revenues and Expenses for theyear ended June 30,2013. 47 - 48

Other ReportsReport on Internal Control Over Financial Reporting and On Compliance andOther Matters Based on an Audit of Financial Statements Performed inAccordance with Government uditing Standards 49 - 50


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Carr Riggs Ingram LL1713 Mahan DriveTallahassee. L 32308

85m 8788777850) 8782344 (fax)www.cricpa.com

Independent Auditors Report

Board of GovernorsThe Florida BarTallahassee, FloridaWe have audited the accompanying consolidated financial statements of the business-typeactivities of The Florida Bar and Subsidiaries (The Florida Bar), as of and for the year endedJune 30, 2013 and 2012, and the related notes to the financial statements, which collectivelycomprise The Florida Bar's basic consolidated financial statements as listed in the table ofcontents.Management's Responsibility for the Financial StatementsManagement is responsible for the preparation and fair presentation of these consolidatedfinancial statements in accordance with accounting principles generally accepted in the UnitedStates of America; this includes the design, implementation, and maintenance of internal controlrelevant to the preparation and fair presentation of financial statements that are free frommaterial misstatement, whether due to fraud or error.Auditor s ResponsibilityOur responsibility is to express opinions on these consolidated financial statements based onour audit. We conducted our audit in accordance with auditing standards generally accepted inthe United States of America. Those standards require that we plan and perform the audit toobtain reasonable assurance about whether the consolidated financial statements are free frommaterial misstatement.An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the consolidated financial statements. The procedures selected depend on theauditor's judgment, including the assessment of the risks of material misstatement of theconsolidated financial statements, whether due to fraud or error. In making those riskassessments, the auditor considers internal control relevant to the entity's preparation and fairpresentation of the consolidated financial statements in order to design audit procedures thatare appropriate in the circumstances, but not for the purpose of expressing an opinion on theeffectiveness of the entity's internal control. Accordingly, we express no such opinion. An auditalso includes evaluating the appropriateness of accounting policies used and thereasonableness of significant accounting estimates made by management, as well asevaluating the overall presentation of the financial statements.


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Board of GovernorsThe Florida Bar

We believe that the audit evidence we have obtained is sufficient and appropriate to provide abasis for our audit opinions.pinions

In our opinion, the financial statements referred to above present fairly, in all material respects,the respective financial position of the business-type activities of The Florida Bar, as of June 302013 and 2012, and the respective changes in financial position and cash flows thereof for theyears then ended in accordance with accounting principles generally accepted in the UnitedStates of America.Other MattersRequired Supplementary nformationAccounting principles generally accepted in the United States of America require that themanagement s discussion and analysis on pages 3 through 7 is presented to supplement thebasic financial statements. Such information, although not a part of the basic financialstatements, is required by the Governmental Accounting Standards Board, who considers it tobe an essential part of financial reporting for placing the basic consolidated financial statementsin an appropriate operational, economic, or historical context. We have applied certain limitedprocedures to the required supplementary information in accordance with auditing standardsgenerally accepted in the United States of America, which consisted of inquiries of managementabout the methods of preparing the information and comparing the information for consistencywith management s responses to our inquiries, the basic consolidated financial statements, andother knowledge we obtained during our audit of the basic consolidated financial statements.We do not express an opinion or provide any assurance on the information because the limitedprocedures do not provide us with sufficient evidence to express an opinion or provide anyassurance.Other nformationOur audit was conducted for the purpose of forming opinions on the consolidated financialstatements that collectively comprise The Florida Bar s basic consolidated financial statements.The supplementary information is presented for purposes of additional analysis and is not arequired part of the basic financial statements.The supplementary information is the responsibility of management and was derived from andrelate directly to the underlying accounting and other records used to prepare the basicconsolidated financial statements. Such information has been subjected to the auditingprocedures applied in the audit of the basic consolidated financial statements and certainadditional procedures, including comparing and reconciling such information directly to theunderlying accounting and other records used to prepare the basic financial statements or to thebasic financial statements themselves, and other additional procedures in accordance withauditing standards generally accepted in the United States of America. In our opinion, thesupplementary information is fairly stated, in all material respects, in relation to the basicconsolidated financial statements as a whole.

~ ~ ~ ~ - - C December 12,2013


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Management s Discussion and Analysis


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The Florida Bar and SubsidiariesManagement s Discussion and Analysis

The Florida Bar is the statewide professional and regulatory organization for lawyers with morethan 96,000 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 ofThe Supreme Court of Florida's regulation of all lawyers licensed to practice law in Florida (ArticleIV 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. The following management's discussion andanalysis is intended to provide the readers of The Florida Bar's financial statements a generaloverview of the financial activities during the last two fiscal years (FY) that ended on June 30,2013 and 2012.

Financial Highlights The Florida Bar's total net position increased approximately $3.2 million (or 6.0%) over the course

of FY13. This was generated primarily from the favorable investment environment whichproduced $2.5 million in earnings. For FY12, total net position increased approximately $1.6million (or 3.1 0/0 which was primarily generated from internal development of software programswhich reduced salary and benefit expenses by including them in the costs of capital assets. Total operating revenues for FY13 remained virtually unchanged from FY12. Total operatingexpenses increased approximately $1.6 million (or 4.0%) in FY13. In comparison, total operatingexpenses decreased approximately $600,000 (or 1.4%) in FY12. The increase in operatingexpenses in FY13 came primarily as a result of increasing staffing costs that were the result ofthe implementation of recommendations from a new compensation study. In FY12, The FloridaBar was able to keep expenses down by utilizing technology or outsourcing to deliver its productsand services more efficiently and by delaying salary adjustments and filing of vacant positions. The resources available to spend for the General Fund of The Florida Bar were approximately$330,000 more than budgeted for FY13 and were approximately $1.9 million less than budgetedfor FY12. These results were primarily attributable to the actual gains and losses incurred by theGeneral Fund's share of The Florida Bar's investment income which was budgeted at $1.4 millionand experienced an actual gain of $1.8 million for FY13 and was budgeted at $1.9 million andexperienced a loss of $493,000 in FY12. The Florida Bar was able to keep expenses withinbudgeted limits in both years.

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 which are to serve as the statewideregulator of the practice of law and the professional association of lawyers. Its activities areaccounted for as a proprietary type enterprise fund because it charges fees to provide its servicessimilar to a business enterprise.

See the Independent Auditors' Report.


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The Statement of Net Position includes all of The Florida Bar's assets and liabilities. The netposition is the difference between The Florida Bar's assets and liabilities. The Statement ofRevenues, Expenses, and Changes in Net Position include all of The Florida Bar's revenues andexpenses regardless of when the cash is received or paid. The change in net position is one wayto measure The Florida Bar's financial health or position. A Statement of Cash Flows providesadditional information regarding the change in The Florida Bar's cash position. The notes(beginning on page 12) are an integral part in providing a full understanding of The Florida Bar's'financial statements.

Summary of Operations and Condensed Consolidated Financial InformationCONDENSED CONSOLIDATED STATEMENTS OF NET POSITION

% Change % ChangeJune 30 2013 2012 2011 2012 - 2013 2011 - 2012Assets

Current and other assets 66,124,233 61,931,808 61,520,549 6.8% 0.7%Capital assets, net 10,734,193 10,411,528 9,555,406 3.10/0 9.0%

Total assets 76,858,426 72,343,336 71,075,955 6.20/0 1.8%Liabilities

Current liabilities 17,771,868 16,452,056 16,975,110 8.00/0 -3.1 %Other liabilities 2,519,415 2,522,588 2,317,538 -0.10/0 8.8%

Total liabilities 20,291,283 18,974,644 19,292,648 6.9% -1.6%Net position

Invested in capital assets,net of related debt 10,734,193 10,411,528 9,555,406 3.1 % 9.0%Restricted for scholarships 50,008 46,334 45,921 7.90/0 90.00/0

Unrestricted 45,782,942 42,910,830 42,181,980 6.70/0 1.7%Total net position 56,567,143 53,368,692 51,783,307 6.00/0 3.1 %

The Florida Bar's cash and investments increased from 60.4 million in FY12 to 64.6 million inFY13 despite a loss in the market value of the investment portfolio for FY13 of 104,437. Thisincrease reflects the addition of cash provided by operations of 3.1 million and the cash earningson the investment portfolio of 1.3 million. In comparison, cash and investments were virtuallyunchanged from FY11 to FY12. Although The Florida Bar generated 2.7 million in cash frominvesting activities in FY12, this was offset by a loss in the market value of the investment portfolioof 2.0 million. The increase in capital assets from June 30, 2011 to June 30, 2013 has been afunction of the internal development of software programs as well as a capital improvementprogram to remodel and refurbish The Florida Bar's headquarters building.The primary liability of The Florida Bar is unearned revenue resulting from advance collection ofmember fees and prepayments for Continuing Legal Education registrations. Unearned revenue

See the Independent Auditors' Report.-


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The Florida Bar and SubsidiariesManagement's Discussion and Analysisincreased $1.4 million or 13 from FY12 to FY13. This was primarily due to operational changeswhich resulted in earlier collections of member fees. Unearned revenue was virtually unchangedfrom FY11 to FY12 at 11.0 million.For more detailed information, see the accompanying Consolidated Statements of Net Position.

CONDENSED CONSOLIDATED STATEMENTS OF REVENUES, EXPENSESAND CHANGES IN NET POSITION

% Change 0/0 ChangeJune 30 2013 2012 2011 2012 - 2013 2011 - 2012Operating revenues 42,708,054 $ 42 692 524 $ 42 477 814 0.0% 0.50/0Operating expenses (42,032,019) (40,407,950) (40,982,582) 4.0% -1.40/0

Net operating income 676,035 2,284,574 1,495,232 -70.40/0 52.80/0Non-operating revenues 2,528,194 5,917,596 100.00/0 -100.00/0Non-operating expenses (5,778) (699,189) (58,178) -99.2% 1101.80/0

Net non-operating revenues 2,522,416 (699,189) 5,859,418 -460.80/0 -111.9%Change in net position 3,198,451 1,585,385 7,354,650 101.70/0 -78.40/0Net position, beginning 53,368,692 51,783,307 44,428,657 3.10/0 16.60/0Net position, ending 56,567,143 $ 53,368,692 $ 51,783,307 6.00/0 3.10/0

The Florida Bar operated without an increase in Annual Fees to its members over the past threeyears. The increases in Annual Fees received by The Florida Bar have consistently beenapproximately 2 to 3 per year commensurate with the membership growth rate. This growth infees was offset by drops in other revenue sources such as court ordered restitutions andadvertising revenue.Operating expenses increased 4 in FY13 as a result of increased staffing costs directly related tothe implementations of recommendations made in a newly completed compensation study. InFY12, expenses were kept down by various steps taken by The Florida Bar including (1) efforts totransition away from print and mail to electronic communication and delivery of ContinuingEducation materials and other communications to members, (2) outsourcing of functions that couldbe done by outside vendors at lower cost than continuing to do those functions internally, and (3)delaying salary adjustments and hiring of replacements as employees retired or left the employ ofThe Florida Bar.



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The increase in net assets for FY11 and FY13 was primarily attributable to the favorableinvestment climate and for FY12, the cost saving measures described above.For more detailed information, see the accompanying Consolidated Statements of Revenues,Expenses, and Changes in Net Position.Budgetary Highlights For the years ended June 30, 2013 and 2012, The Florida Bar's budgetfunded most departments at a continuation level. The original operating budgets for the GeneralFund (excluding the wholly-owned subsidiary and controlled entities) for the years ended June 30,2013 and 2012 approved by the Florida Supreme Court, planned on an increase in net assets of2,291,818 and 2,287,461, respectively before transfers to other funds. After Board of Governoramendments, the planned increase became 1,727,704 and 1,534,164 for FY13 and FY12,respectively.For FY13, significant budget amendments included the continuation of a public education programto educate the general public about judicial merit retention, the addition of a leadership program,assistance with e-filing requirements, and a contribution to the Florida Bar Foundation. For FY12,significant budget amendments included an additional contribution to the Client Security Fund, thestart of a public education program to educate the general public about judicial merit retention,moving a staff position from the Client Security Fund operations to the General Fund,improvements for the Fort Lauderdale branch office, costs to update the Bar's webpage, and thecost to add a paper shredding program to The Florida Bar's document destruction staff procedures.Included in the supplemental information is an actual to budget comparison for each department forFY13.

CAPITAL ASSETSThe Florida Bar invested the following in Capital Assets:June 30LandBuilding and improvementsLandscaping and parkingEquipment and furnishingsSoftwareSoftware in developmentConstruction in progressTotal, prior to depreciation andamortization

20131,306,690

11,349,427120,318

4,831,4574,431,345280,31011,220

22,330,767

20121,306,690

11,352,944120,318

4,802,2722,433,7131,113,841

18,615

21,148,393

20111,306,690

10,728,573120,318

4,684,0351,680,573

817,69214,683

19,352,564

% Change2012-2013

0.00.00.00.6

82.1 %-74.8-39.7

5.6

0 0 Change2011 - 2012

0.05.8O ook2.5

44.836.20/026.8

9.3

Accumulated depreciationand amortization (11,596,574) (10,736,865) (9,797,158) 8.0 9.60/0

Net capital assets 10,734,193 10,411,528 9,555,406 3.10/0 9.0



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The Florida Bar underwent a significant refurbishment of the headquarters building inTallahassee in FY and FY12 which was funded through available cash. Additions to softwareand software in development included costs o developing new programs or significantlyupdating ones already in use. These included updates to The Florida Bar s website, a programto track continuing education requirements and allow members to access their status on-line,and updates to allow the public to use the Florida Bar s website to obtain a lawyer referral.Presently, The Florida Bar has no plans to significantly alter its investment in capital assetsother than to continue to add to costs of developed software.

Future Financial PlanThe Florida Bar was created by the Supreme Court of Florida to assist the Supreme Court inregulating the practice of law in Florida. The Florida Bar is primarily funded through requiredannual fee payments by lawyers, sales of continuing education programs to lawyers, and otherfees for the regulation of attorneys or sales o legal related products and services. There is noplan to materially change these revenue streams for the next two years. Accordingly, there areno present plans to materially increase the scope or nature o the services provided to thecitizens o Florida and the lawyers authorized to serve them.

See the Independent Auditors Report.-


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inancial Statements


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The Florida Bar and SubsidiariesConsolidated Statements of Net Position

une 30Assets 2013 2012Current assetsCash and cash equivalentsShort-term investmentsAccounts receivable, netPrepaid expenses and other assetsTotal current assets

19,053,44145,558,555644,103868,13466,124,233

17,958,41042,469,481512,481991,43661,931,808Capital assets, netLandBuildings and improvementsLandscaping and parkingEquipment and furnishingsSoftware

Software development in progressConstruction in progressAccumulated depreciationTotal capital assets, net

1,306,69011,349,427120,3184,831,4574,431,345280,31011,220(11,596,574)10,734,193

1,306,69011,352,944120,3184,802,2722,433,7131,113,84118,615(10,736,865)10,411,528

Total assets 76,858,426 72,343,336LiabilitiesCurrent liabilitiesAccounts payableClient Security Fund claims payableAccrued expensesUnearned revenuesSecurity depositsTotal current liabilities

1,742,4902,068,3471,215,88712,696,21848,92617,771,868

1,770,7672,242,0751,176,89711,213,39548,92216,452,056Non-current liabilitiesCompensated absences payableTotal non-current liabilities 2,519,4152,519,415

2,522,5882,522,588

Total liabilities 20,291,283 18,974,644Net PositionInvested in capital assets, net of related debtRestricted for scholarships

UnrestrictedTotal net position

10,734,19350,00845,782,94256,567,143

10,411,52846,33442,910,83053,368,692

See accompanying notes to the consolidated financial statements.- -


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The Florida Bar and SubsidiariesConsolidated Statements of Revenues, Expenses and Changes in Net Position

Years ended une 30Operating revenuesAnnual feesOther fees from membersSales of products and servicesAdvertisingYoung lawyersGrants and otherTotal operating revenuesOperating expensesRegulation of the practice of lawCost of products and services provided to members

Unauthorized practice of lawPublic service programsCommunications with members and the publicAdministrationLegislationYoung lawyersDepreciation and amortizationOther programs and costsTotal operating expensesOperating incomeNon-operating revenues (expenses)

Investment earnings (loss)Loss on disposal of capital assetsTotal non-operating revenues (expenses)Change in net positionTotal net position, beginning of yearTotal net position, end of year

2013 201224,445,4696,237,9568,982,8661,548,024923,673570,06642,708,054

23,754,1616,269,6558,884,9121,599,039874,7081,310,04942,692,524

17,187,5569,965,7841,693,7592,999,5613,967,5552,334,370469,839747,3651,191,5051,474,72542,032,019

16,466,2629,580,5461,506,2053,282,0893,801,2422,361,492437,330798,1201,029,7841,144,88040,407,950

676,035 2,284,574

2,528,194(5,778)2,522,416(669,183)(30,006)(699,189)

3,198,451 1,585,38553,368,692 51,783,30756,567,143 53,368,692

See accompanying notes to the consolidated financial statements.- -


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The Florida Bar and SubsidiariesConsolidated Statements of Cash Flows

Years ended une 30 2013 2012Cash flows from operating activities:Receipts from members, customers and other sources 46,098,220 46,653,755Payments to employees, suppliers and other vendors (42,945,801) 44,077,708)Net cash provided by operating activities 3,152,419 2,576,047Cash flows from capital and related financing activitiesACquisition of capital assets (1,496,508) 1,911,723)Net cash used in) capital and related financing activities (1,496,508) 1,911,723)Cash flows from investing activities:Redemption of investments 30,839,459 23,175,427

Purchase of investments (32,710,677) 21 ,226,436)Investment income, net 1,310,338 842,733Net cash used in) provided by investing activities (560,880) 2,791,724Increase in cash and cash equivalents: 1,095,031 3,456,048Cash and cash equivalents, beginning of year 17,958,410 14,502,362Cash and cash equivalents, end of year 19,053,441 17,958,410

See accompanying notes to the consolidated financial statements.- 10


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The Florida Bar and SubsidiariesConsolidated Statements of Cash Flows (Continued)

Years ended une 30 2013 2012Reconciliation of operating income to net cash

provided by operating activitiesOperating income 676,035 2,284,574Adjustments to reconcile operating income to net cashprovided by operating activities:Depreciation and amortization 1,191,505 1,029,784(Increase) decrease in:Accounts receivable, net (131,622) (17,637)Prepaid expenses and other assets 123,302 (398,481 )Increase (decrease) in:

Accounts payable 21,505Claims payable (326,114)Accrued expenses (60,585)Unearned revenues (162,055)Security deposits 6Com ensated absenses a able 205,050Net cash provided by operating activities 2,576,047Non-cash investing, capital, and financing acitivitiesChan e in the fair value of investments

oss on disposal of assets

See accompanying notes to the consolidated financial statements.-


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The Florida ar and SubsidiariesNotes to Consolidated Financial StatementsNOTE 1 - NATURE OF BUSINESSThe Florida Bar and Subsidiaries (The Florida Bar) is the statewide professional organization oflawyers. It serves as an advocate and intermediary for attorneys, the court and the public. TheFlorida Bar was established as a unified state bar by rule of the Supreme Court of Florida. TheFlorida Bar regulates lawyers in Florida, investigates the unauthorized practice of law, offerscontinuing legal education, publishes law journals and offers other member services.

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESReporting EntityThe Florida Bar is a unified state bar organized as an arm of the Supreme Court of the State ofFlorida. It is considered a governmental entity because it was established by and has thepotential to be dissolved by the Supreme Court of Florida. Therefore, The Florida Bar adopted theprovisions of Statement No. 34 ( Statement No. 34 ) of the Governmental Accounting StandardsBoard (GASB) Basic Financial Statements - ndManagement's Discussion nd Analysis - forState and Local Governments, as amended by Statement No. 37.In evaluating The Florida Bar as a reporting entity, management has considered all potentialcomponent units for which The Florida Bar may be financially accountable and if found to befinancially accountable, be required to be included in The Florida Bar's financial statements. TheFlorida Bar is financially accountable if it appoints a voting majority of an organization's governingboard and (1) it is able to impose its will on an organization or (2) there is a potential for anorganization to provide specific financial benefit to or impose specific financial burden on TheFlorida Bar. Additionally, The Florida Bar is required to consider other organizations for which thenature and significance of their relationship with The Florida Bar are such that exclusion wouldcause the reporting entity's financial statements to be misleading or incomplete. Management'sanalysis has disclosed no component units that should be included in The Florida Bar's financialstatements.Basis ofPresentationThe Florida Bar is accounted for as a proprietary type enterprise fund. The Florida Bar applies allapplicable pronouncements of the Financial Accounting Standards Board (FASB) issued on orbefore November 30 1989 that are not in conflict with applicable GASB pronouncements.Enterprise funds are used to account for activities that are financed and operated in a mannersimilar to private business enterprises: (1) where the costs of providing goods and services to thegeneral public on a continuing basis are to be financed through user charges; or (2) where theperiodic determination of net income is considered appropriate. Proprietary funds distinguishoperating revenues and expenses from non-operating items. Operating revenues and expensesgenerally result from providing goods and services in connection with a proprietary fund's ongoingoperations. Operating expenses for The Florida Bar include the costs of personnel, contractualservices, supplies, utilities, repairs and maintenance, and depreciation and amortization of capitalassets. All revenues and expenses not meeting this definition are reported as non-operatingrevenues and expenses.

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The Florida Bar and SubsidiariesNotes to Consolidated Financial Statements

NOTE 2 - SUMM RY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)Basis of ccountingBasis of accounting refers to when revenues and expenses are recognized n the accounts andreported n the financial statements. These financial statements have been prepared on theaccrual basis of accounting n accordance with accounting principles generally accepted n theUnited States of America. Under this method, revenues are recognized when they are earned andexpenses are recognized when they are incurred. The measurement focus of proprietary fundtypes is on a flow of economic resources method, which emphasizes the determination of netincome, financial position, and cash flow. All fund assets and liabilities, current and non-current,are accounted for n the Consolidated Statements of Net Assets.Cash nd Cash EquivalentsAll demand deposit accounts and short-term highly liquid investments with original maturities ofthree months or less are reported as cash equivalents.InvestmentsInvestments are reported at fair values. Fair values for securities traded on national or internationalexchanges or over-the-counter are valued at quoted market prices. Fair values of securities nottraded on an exchange or over-the-counter are estimated based on the net asset values providedby the investee calculated n accordance with FASB Topic 946.Capital ssetsCapital assets are stated at cost less accumulated depreciation and amortization. The value ofsoftware developed for The Florida Bar's use includes all direct and indirect costs that are relatedto development activities. The costs of capital assets are depreciated or amortized over theestimated useful lives of the related assets, ranging from 3 to 40 years, using the straight-linemethod. When capital assets are retired or otherwise disposed of, the costs and relatedaccumulated depreciation or amortization are removed from the accounts and any resulting gain orloss is reflected in the Consolidated Statements of Revenues, Expenses and Changes n NetPosition, n the period of disposal.Claims PayableThe Florida Bar voluntarily created the Clients' Security Fund (the Fund) to provide possiblecompensation to people who have suffered financial losses due to misappropriation of funds byerrant Florida Bar members. The Fund is financed by 25 of the annual fees due from each FloridaBar member who is in good-standing (including inactive members). Claims payable representamounts that have been approved for payment from the Fund.Unearned RevenuesUnearned revenues consist primarily of membership fees collected n advance, prepaid advertisingand prepaid legal education courses.

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The Florida ar and SubsidiariesNotes to Consolidated Financial StatementsNOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES CONTINUED)

llocation ofExpensesThe costs of providing the various programs, services, and other activities have been summarizedon a functional basis in the Consolidated Statement of Revenues, Expenses and Changes in NetPosition. Accordingly, certain costs have been allocated among the programs and supportingservices benefited.

r i n c i p ~ s o f o n s o l i d a t i o n The accompanying consolidated financial statements include the accounts of The Florida Bar andits wholly-owned subsidiary, The Florida Bar Building Corporation, and its other controlled entities,Florida Lawyers Association for the Maintenance of Excellence, Inc. and The Florida AttorneysCharitable Trust. All significant intercompany transactions and accounts have been eliminated inconsolidation.Income TaxesThe Florida Bar is an administrative agency of the Supreme Court of Florida and is not subject tofederal or state income tax. The Florida Bar Building Corporation, Florida Lawyers Association forthe Maintenance of Excellence, Inc. and The Florida Attorneys Charitable Trust have been grantedexemption from federal and state income taxes except on unrelated business income underSections 501 c) 25), 501 c) 6), and 501 c) 3), respectively, of the Internal Revenue Code.EstimatesThe preparation of financial statements in conformity with accounting principles generally acceptedin the United States of America requires management to make estimates and assumptions thataffect the reported amounts of assets and liabilities and disclosure of contingent assets andliabilities at the date of the financial statements and the reported amounts of revenues andexpenses dUring the reporting period. Actual results could differ from those estimates.ConcentrationThe Florida Bar receives the majority of its revenue from lawyers licensed to practice in the State ofFlorida.Net PositionNet position is categorized as invested in capital assets, restricted for scholarships, andundesignated. Invested in capital assets is intended to reflect the portion of net position that isassociated with non-liquid, capital assets. Restricted for scholarships consists of monies restrictedfor the annual G Kirk Haas fund scholarships. Undesignated assets consist of all other assets notincluded in the previous categories.Effective as of the start of the fiscal year ending June 30, 2013, The Florida Bar implementedGASB 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources,and Net Position which required a change in terminology. This change in accounting principal didnot result in a change in the amount of the beginning or ending net position.

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The Florida ar and SubsidiariesNotes to Consolidated Financial StatementsNOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)ReclassificationsCertain expense categories for the year ended June 30, 2012 were reclassified to conform to thecurrent year presentation.

NOTE 3 - CASH AND CASH EQUIVALENTSCash and cash equivalents are subject to custodial credit risk. Custodial credit risk is the risk thatin the event of a bank or other counterparty failure, The Florida Bar's cash and cash equivalentsmay not be returned. The Florida Bar's policy with respect to custodial credit risk is that The FloridaBar will only maintain demand deposit accounts with financial institutions in which managementbelieves the risk to be limited because the financial institutions are large with strong financialpositions.Cash and cash equivalents are held at three financial institutions. The cash held in demanddeposit accounts was 8,870,929 and additional cash and money market funds was 10,182,512at June 30 2013. Cash in the amount of 1,467,835 was insured by the Federal DepositInsurance Corporation (FDIC) as of June 30, 2013. The additional cash and money market fundsare held at a financial institution insured by the Securities Investor Protection Corporation (SIPC).As of June 30, 2013, the SIPC provides up to 250,000 in coverage for uninvested cash andmoney market funds not otherwise covered by the FDIC.

NOTE 4 - INVESTMENTSnvestment bjectives and PoliciesInvestments are made for the sole interest and exclusive purpose of providing investmentreturns for The Florida Bar. The Florida Bar's investment objectives and policies are achievedthrough a short-term account portfolio and a long-term account portfolio.Investment guidelines for both portfolios are defined by written Investment Policies (the Policies)approved by the Florida Bar's Board of Governors. The Policies establish diversified investmentstrategies, both by types of investment and by manager, minimum credit qualities, and durationlimits. An Investment Committee has oversight, within Policy limits, to implement and direct theinvestment strategies. The policies are reviewed at least annually for any adjustments requireddue to changes or developments within the investment markets that may provide enhancedinvestment and/or risk management opportunities, and recommendations for changes aresubmitted for approval by the Board of Governors.The purpose of the short-term portfolio is to provide for The Florida Bar's short-term workingcapital needs. The short-term portfolio possesses a short-term time horizon (one to three years)and within this horizon, the primary objectives are to preserve capital and provide liquidity forshort-term cash flow needs and to achieve attractive short-term yields consistent withpreservation of capital.The purpose of the long-term investment portfolio is to provide for The Florida Bar's operatingneeds and to fund The Florida Bar's programs both today and into the future. The long-term

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The Florida ar and SubsidiariesNotes to Consolidated Financial StatementsNOTE 4 - INVESTMENTS (CONTINUED)nvestment Objectives and Policies Continued)

portfolio possesses an intermediate to long-term horizon (five to seven years) that correlates tothe primary objectives of providing long-term growth of capital and income. The secondaryobjectives are high current income and liquidity.The Policies require the risk adjusted returns of an investment over a full market cycle to rank inthe top 50 of universal comparisons with similar objectives and the investment shouldoutperform the target policy index. The Policies establish asset allocation guidelines with regardto acceptable asset classes and prohibited investments, the overall targeted asset mix, and therepresentative indices for each asset class. The asset allocation guidelines as compared toactual investment balances were as follows as of June 30, 2013:Short-Term Target RepresentativeAsset Classes Minimum Mix Maximum Actual IndexShort-Term Fixed income 35.00/0 50.00/0 65.0% 52.00/0 Barclay's 1 -3 Year Government/Credit Bond IndexCash and Equivalents 35.00/0 50.00/0 65.00/0 48.00/0 Citigroup U.S. gO-Day Treasury Bills Index

Long-TermTarget Representative

Asset Classes Minimum Mix Maximum Actual IndexU.S. Large Cap Equity 7.0% 12.0% 17.0% 11.0% Standard Poor's 500 IndexU.S. Mid Cap Equity 0.0 4.0% 9.0% 4.0 Russell Mid Cap IndexU.S. Small Cap Equity 0.0% 2.0% 7.0% 2.0 Russell 2000 IndexInternational Equity 10.0% 15.0% 20.0% 15.0 MSCI EAFE Index

MSCI EAFE Small Cap Index or MSCI EAFE Small/Mid CapInt'l Small/Mid Cap Equity 0.0% 2.0% 7.0 2.0% IndexEmerging Markets Equity 5.0% 10.0% 15.0% 9.0% MSCI Emerging Markets ndexCommodities 1.0% 6.0% 11.0% 6.0% Dow Jones UBS Commodity IndexREITs 0.0% 3.0% 8.0% 3.0% NAREIT Equity Index or Dow Jones Global Select REITInflation-linked Securities 0.0% 2.0% 7.0% 0.0 Barclays Capital U.S. TIPS IndexEmerging Market Fixed JP Morgan Emerging Markets Bond Index or JP MorganIncome 0.0% 2.0% 7.0 2.0% Emerging Market Bond Index (unhedged)U.S. Fixed Income 15.0% 22.0% 29.0% 26.0% Barclay's Capital Intermediate Gov'tlCredit Bond IndexU.S. High Yield FixedIncome 0.0 4.0% 9.0% 2.0% Barclay's Capital U.S. Corporate High Yield Index

HFRI Conservative Index or Hedge Fund of Funds CompositeHedged Funds 0.0% 6.0% 9.0% 6.0 IndexI Liquid Alternatives 0.0% 3.0% 6.0% 2.0 60% MSCI ACWI/40% Barclays Capital Global AggregateI Managed Futures 0.0% 2.0% 5.0 3.0% Barclay's CTA IndexiCash Equivalents 0.0% 5.0% 10.0% 7.0% Citigroup U.S. 90-Day Treasury Bills

Performance and compliance reports are submitted to the Investment Committee quarterly. TheFlorida Bar employs an investment consultant who provides performance and compliancereporting at both the portfolio level and by individual investment manager.

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The Florida Bar and SubsidiariesNotes to Consolidated Financial StatementsNOTE 4 - INVESTMENTS (CONTINUED)Investmentst June 30, The Florida Bar's investment balances were as follows:

June 30US TreasuriesFederal AgenciesMunicipal BondsCorporate Bonds & Other Fixed IncomeMutual Funds - debt securities (ST)Mutual Funds - equity securitiesMutual Funds - commoditiesEquitiesManaged FuturesLiquid AlternativesHedge Funds

Total investments

2013501,769

3,706,223800,667

4,486,67612,396,4531,166,4622,187,847

16,025,654787,864

1,142,2602,356,680

45,558,555

20122,927,3403,067,484

864,0392,936,091

12,146,4141,599,645

797,62913,762,452

2,183,1502,185,237

42,469,481

The Florida Bar's investment securities are exposed to various risks, such as custodial creditrisk, interest rate risk, credit quality risk, foreign currency risk, concentration of credit risk, andmarket conditions. Due to the level of risk associated with certain investment securities, it is atleast reasonably possible that changes in the value of investment securities will occur in thenear term and those changes could materially affect investment balances.Custodial Credit RiskCustodial credit risk is the risk that in the event of the failure of the custodial entity, The FloridaBar's deposits may not be returned to it. The Policies state that The Florida Bar will only holdinvestment securities that are insured or registered and held by The Florida Bar, or itsdesignated agent, in the name of The Florida Bar. Investments held through its agent, MorganStanley Smith Barney, LLC have Securities Investor Protection Corporation (SIPC) coverage upto $500,000 per customer for cash and securities as of June 30, 2013 of which $250,000 mayibe in uninvested cash. Morgan Stanley Smith Barney, LLC also has purchased "Excess SIPC"protection above the SIPC limits. This excess coverage is subject to a firmwide cap for MorganiStanley of 1 billion with no per-client limit for securities and a $1.9 million per-client limit for thelcash portion of any remaining shortfall. Investments in PIMCO mutual funds are held by a third'party trust company.nterest Rate Risk

Iinterest rate risk arises from investments in debt instruments and is defined as the risk thatchanges in interest rates will adversely affect the fair value of an investment. The Florida Bar'slinvestments in U.S. Treasuries, federal agencies, municipal bonds, corporate bonds, and otherbonds are directly subject to interest rate risk. The interest rate risk is managed by requiring theIduration of the fixed income portfolio to average between plus or minus 20% of the duration ofIthe representative benchmark for the investment.

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The Florida Bar and SubsidiariesNotes to Consolidated Financial StatementsNOTE 4 - INVESTMENTS (CONTINUED)Interest Rate Risk Continued)As of June 30 2013, The Florida Bar's debt investments had the following maturities:

Investment Maturities (In Years)Less than 1

June 30 Fair Value Year 1 5 Years 5 1 Years Over 10 YearsUS Treasuries 501,769 - - 501 769Federal Agencies 3,706,224 67,999 836 239 530 192 2,271,794Municipal Bonds 800,667 139,214 263,836 327,178 70 439Corporate Bonds &Other Fixed

Income 4,486,676 76 786 1,950,526 1,090,800 1,368,564Total investments 9,495,336 283,999 3 050 601 2,449,939 3 710 797

The Florida Bar is not directly subject to interest rate risk for its investment in mutual funds thatpurchase debt instruments, as The Florida Bar is able to sell their interest in these mutual fundsat will (subject to potential redemption fees). At June 30, 2013, the weighted average lifereported by the mutual fund managers for the mutual funds invested in debt instruments was3.46 to 7.15 years.Credit Quality RiskThe Policies require investments in fixed income debt securities to meet an average qualityrating of A or higher for the long-term portfolio and AA or higher for the short-term portfolio byeither Standard & Poor's, Moody's or Fitch Investors Service at the time of purchase.Investments in corporate holdings must be rated investment grade or better by either Standard& Poor's, Moody's or Fitch Investors Service at the time of purchase. In the event a bond'scredit rating is downgraded to a level below investment grade by two of the three ratingsagencies, the Investment Manager must notify the Investment Committee and provide theCommittee with the Manager's outlook on the investment. The Investment Committee mustapprove continuing to hold the downgraded investment. The Manager must regularly update thecommittee on the downgraded investment's status.

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The Florida ar and SubsidiariesNotes to Consolidated Financial StatementsNOTE 4 - INVESTMENTS (CONTINUED)Credit Quality Risk continued)The Florida Bar's debt investments by rating at June 30, 2013 are presented below:

Quality RatingU.S. GovernmentAgencies

AaaAa1Aa2Aa3A1A2A3

Baa1Baa2Baa3Below InvestmentGrade

Unrated

U.S. FederalTreasuries Agencies

- 3 706 224501 769

MunicipalBonds

478 6601,517,75588 150122 261102 529

173 861656 056421 788505,304420 312

CorporateBonds Mutual Funds

Other Fixed DebtIncome Securities

- - 275,446282 122160,40657,32425 369

12,396,453

Total4,184,8842 294 970370 272282 667159 853

173 861656 056447 157505 304420 312

12,396,453Total investments 501 769 3,706,224 4,486,676 800 667 12,396,453 21,891,789

Because mutual funds are listed and valued as a whole, not individual holdings, informationabout specific ratings cannot be obtained however the mutual funds do have exposure to nonilnvestment grade securities. Investments in mutual funds are with the understanding that theilnvestment policies stated in the mutual fund's prospectus supersedes the guidelines~ s t l i s h e d by The Florida Bar.Foreign Currency RiskIinvestments in international equity securities are limited to SEC-Registered, U.S. exchangeIlisted U.S. dollar-denominated securities in foreign domiciled issuers. Investments inilnternational debt securities are limited to SEC-registered, U.S. dollar-denominated, U.S.

~ o v e r n m e n t backed securities issued by foreign governments. The Florida Bar invests ininternational securities through American Depository Receipts (ADRs). ADRs representi ~ v e s t m e n t s in shares of foreign companies traded on the U.S. financial markets and are~ e n o m i n t e in U.S. dollars and, thus, are not exposed to foreign currency risk. Investments in

~ o r e i g n currency-denominated government bonds, any type of foreign corporate bond, or any

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The Florida Bar and SubsidiariesNotes to Consolidated Financial StatementsNOTE 4 - INVESTMENTS (CONTINUED)Foreign Currency Risk (continued)other type of foreign currency are not allowed. Securities of foreign companies traded onforeign stock exchanges may be purchased only with the written permission of The Florida Bar'sInvestment Committee. Additionally, the investment policies approve the use of mutual funds,which may include foreign securities, with the understanding that the investment policies statedlin the mutual fund's prospectus supersede the guidelines set forth in The Florida Bar'sinvestment policy.'Concentration o Credit RiskThe Investment Policies require investments to be diversified such that there is not an undueconcentration in a single industry sector except for its Concentrated Portfolios. Investments inequity securities are subject to a maximum 5 commitment at cost and 10% weighting atmarket of the account's total market value for any individual security or single issuer.Investments in fixed income securities are subject to no more than 5 of the account's marketvalue invested in a single issue (at cost) or in direct obligations of a single issuer (at market)with the exception of the U.S. Government and its agencies so long as any such government oragency issue shall be backed with the full faith and credit of the U.S. Government. n addition,no more than 15k of the fixed income securities may be invested in mortgage backed or assetbacked securities of a single issuer, with the exception of those issued by the U.S. Government,its agencies, or its sponsored agencies.Investments in cash and cash equivalents are limited to no more than 10% of the account'smarket value in a single issue (at cost), with the exception of issues backed by the U.S.Government and its agencies and diversified money market funds.Derivative InstrumentsAs of June 30, 2013, the Florida Bar's investment policy states that investments in options,derivatives and 'financial futures are prohibited in separately managed accounts other than itsAlternative Investment assets. Additionally, the investment policy approves the use of mutualfunds, which may include derivative instruments, with the understanding that the investmentpolicies stated in the mutual fund's prospectus supersede the guidelines set forth in The FloridaBar's investment policy.

NOTE 5 - ACCOUNTS RECEIVABLE NETjrhe following is a summary of accounts receivable, net:

I

I June 30 2013 2012IAccounts receivable $ 659,103 537,381IAliowance for doubtful accounts (15,000) (24,900)I Accounts receivable, net $ 644,103 512,481

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The Florida ar and SubsidiariesNotes to Consolidated Financial Statements,NOTE 6 - CAPITAL ASSETS, NET

Capital assets not being depreciated oramortized:

July 1, 2012 Additions Deletions Transfers June 30, 2013LandSoftware development in progressConstruction in progress

$ 1,306,6901,113,84118,615

$ -785,799 $ - $ - 1,306,690- (1,619,330) 280,310(7,395) 11,220Total capital assets not depreciated or amortized 2,439,146 785,799 (7,395) (1,619,330) 1,598,220

Capital assets being depreciated or amortized:Buildings and improvementsLandscaping and parkingEquipment and furnishingsSoftwareTotal capital assets being depreciated oramortized

11,352,944120,3184,802,2722,433,713

18,709,247

1,515365,976378,302745,793

(5,032)(336,791 )

(341,823)1,619,3301,619,330

11,349,427120,318

4,831,4574,431,345

20,732,547Less accumulated depreciation or amortizationfor:

Buildings and improvementsLandscaping and parkingEquipment and furnishingsSoftware

(6,191,442)(120,318)(3,610,119)(814,986)

(385,083)(383,974)(422,448) 331,796

6,576,525)120,318)

3,662,297)1,237,434)

Total accumulated depreciation oramortization (10,736,865) (1,191,505) 331,796 11,596,574),Total capital assets being depreciated oramortized, net 7,972,382 (445,712) (10,027) 1,619,330 9,135,973iTota' capital assets, net 10,411,528 $ 340,087 $ (17,422) $ - 10,734,193Depreciation and amortization expense for the years ended June 30, 2013 and 2012 was$1,191,505 and 1,029,784, respectively.

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The Florida Bar and SubsidiariesNotes to Consolidated Financial StatementsNOTE 7 - LONG-TERM LIABILITIESCompensated Absences PayableCompensated absences payable consisted of the following:June 30Accrued vacationAccrued sick leave

Total compensated absences

20131,476,1551,043,2602,519,415

20121,439,8981,082,6902,522,588

Changes in Long-Term LiabilitiesChanges in long-term liabilities are summarized as follows:

Accrued vacationAccrued sick leave

Total long-term liabilities

BalanceJuly 1, 20121,439,8981,082,6902,522,588

Additions1,111,311

230,8391,342,150

Reductions(1,075,054)

(270,269)(1,345,323)

BalanceJune 30, 2013

1,476,1551,043,2602,519,415

NOTE 8 - REVENUE AND EXPENSE CLASSIFICATIONThe significant revenue and expense accounts presented in the consolidated financialstatements are described as follows:Other Fees from MembersIncludes revenues from members other than annual fees such as advertising approval fees,certification fees and section dues.Sales ofProducts and ServicesIncludes revenues from sources such as Continuing Legal Education (CLE) registrations, sales

f publications and meeting revenues.Grants and OtherIncludes grants received from The Florida Bar Foundation, cost recoveries from disciplinefases rents received in The Bar Center Building Fund and other sources of revenue.

~ g u l t i o n of the Practice of awIinciudes expenses incurred for Lawyer Regulation, Lawyer Advertising, Ethics, Continuing Legal~ d u t i o n Rules (CLER), Membership Records and Certification.

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iNOTE 8 - REVENUE AND EXPENSE CLASSIFICATION (CONTINUED)Cost ofProducts and Services Provided to MembersIinciudes expenses such as the cost of CLE courses and publications, Legal Office ManagementAdvisory Services (LOMAS), voluntary member assistance programs, meetings, committeeactivity and section activity.Communication with Members and the Public'iinciudes the expenses of the Public Information Department and The Florida Bar Journal andNews.dministration

~ n c l u d e s board and officer expenses, the cost of the Executive Director's office, GeneralCounsel, Research, Planning and Evaluation, and liability and property insurance.

NOTE 9 - RETIREMENT PLANSjrhe Florida Bar sponsors a defined contribution pension plan, The Florida Bar Employees'pension Plan (the Plan), which is available to all salaried personnel having completed sixmonths of service. The Plan is administered by The Florida Bar Retirement Committee. Theplan may be amended at any time by The Florida Bar. Employer contributions are discretionaryand are currently made for all eligible employees employed on December 31 based on aformula which was 15 of covered compensation for the years ended June 30 2013 and 2012,tespectively, and 4.3% on covered compensation exceeding 80 of the Social Security wage

~ s e The employer contributions are allocated to separate participant accounts and invested the Trustee in the funds selected by the employee from those offered by the PlanAdministrator. Participant accounts vest based on the following schedule:Less than 3 years 03 - 4 years 404 - 5 years 605 - 6 years 80Greater than 6 years 100%

forfeited contributions are held in a separate account and are used to reduce 'future employercontributions. The plan has been amended to comply with all applicable Federal tax laws. Thee n s i o n contribution made equaled the contribution required during the years ended June 30,013 and 2012 for the Plan years ended December 31 2012 and 2011 and was 2,185,851nd 2, 128,115, respectively.

the Florida Bar also has a deferred compensation plan. The plan is for the benefit of all eligibleemployees who elect to participate.

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The Florida Bar and SubsidiariesNotes to Consolidated Financial StatementsiNOTE 10 - RETIREE POSTEMPLOYMENT HEALTH BENEFITS,Plan Description. The Florida Bar Retiree Health Plan (TFBRHP) is a single-employer definedbenefit healthcare plan administered by The Florida Bar. TFBRHP provides health insuranceI,benefits to eligible employees at early retirement, disability or full retirement. The Florida Barhas the authority to establish and amend benefit provisions of TFBRHP. TFBRHP issues astand-alone financial report that includes the financial statements and required disclosures.This report may be obtained by writing to The Florida Bar, 651 East Jefferson Street,Tallahassee, Florida 32399-2300.

Funding Policy. TFBRHP is funded through contributions made by The Florida Bar. Thepontribution requirements are established and may be amended by The Florida Bar. Currently,are no required contributions by active or retired employees. The required contributionfrom the Florida Bar is based on an actuarially determined percentage of total active payroll. Forfiscal years ended June 30 2013 and 2012, The Florida Bar contributed $90,190 and $87,777,respectively, to the plan for the annual required contributions. The Florida Bar contributed antadditional $173,283 for the year ended June 30, 2012 to cover the unfunded liability calculatedat January 1, 2012.

ttnnual OPEB Cost and Net OPEB Obligation. The Florida Bar's annual other postemployment~ e n e f i t (OPEB) cost (expense) is calculated based on the annual required contribution o the~ m p l o y r ARC), an amount actuarially determined in accordance with the parameters of GASBStatement 45. The ARC represents a level of funding that, if paid on an ongoing basis, is~ r o j e t e to cover normal costs each year and amortize any unfunded actuarial liabilities (orfunding excess) over a period not to exceed thirty years. Based on the January 1, 2012,actuarial valuation, the ARC is .62 of active payroll payable for the calendar years 2012through 2013. The following table shows the components of The Florida Bar's annual OPEBcost for the year, the amount actually contributed to the plan, and changes in The Florida Bar'shet OPEB obligation to TFBRHP:

IAnnual required contribution $ 90,190Iinterest on net OPEB obligationIAd'ustments to annual re uired contributionAnnual OPEB cost ex ense $ 90,190INet OPES obligation - July 1, 2012 $I,Annual OPES cost (expense) for 2013 (90,190)Contributions made durin FY 2013 90,190Net OPES obligation - June 30,2013

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:NOTE 10 - RETIREE POSTEMPLOYMENT HEALTH BENEFITS (CONTINUED)'The Florida Bar's annual OPEB cost, the percentage of annual OPEB cost contributed to thelplan, and the net OPEB obligation for 2013 and the preceding three years were as follows:

Annual Percentage of Annual OPES Cost Net OPESFiscal Year Ended OPES Cost Contribtued Obligation6/30/2010 268,980 100%6/30/2011 85,511 1000/06/30/2012 87,777 100%6/30/2013 90,190 1000/0

Funded Status and Funding Progress As of January 1, 2012, the most recent actuarial~ l u t i o n date, the plan was 91 % funded. The actuarial accrued liability for benefits waspalculated to be 1,886,227 and the actuarial value of the assets was 1,712,944, resulting in arunding deficit of 173,283. The covered payroll (annual payroll of active employees covered bythe plan) was 14,402,420, and the ratio of the unfunded actuarial accrued liability (UAAL) tothe covered payroll was 1.20%. This deficit was funded by the Florida Bar prior to June 30,2012.~ t u r i l valuations of an ongoing plan involve estimates of the value of reported amounts and

~ s s u m p t i o n s about the probability of occurrence of events far into the future. Examples include~ s s u m p t i o n s about future employment, mortality, and the healthcare cost trend. Amounts

~ t r m i n regarding the funded status of the plan and the annual required contributions of theemployer are subject to continual revision as actual results are compared with past expectationsand new estimates are made about the future.Actuarial Methods and Assumptions Projections of benefits for financial reporting purposes arepased on the substantive plan (the plan as understood by the employer and the plan members)include the types of benefits provided at the time of each valuation and the historical patternbf sharing of benefit costs between the employer and plan members to that point. The actuarialmethods and assumptions used include techniques that are designed to reduce the effects ofshort-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistentwith the long-term perspective of the calculations.The projected unit credit actuarial cost method was used for the January 1, 2012 actuarialvaluation. The actuarial assumptions included a 7.50/0 investment rate of return, which is the rateof the expected long-term investment returns on plan assets and an annual healthcare costrend rate of 9.5 initially, reduced by decrements to an ultimate rate of 5.0 in the year 2018nd beyond. Both rates included a 3.0 inflation assumption. TFBRHP holds plan assets inrust solely to provide benefits to retirees and their beneficiaries. The UAAL is being amortizeds a level percentage of projected payroll on a closed basis. The remaining amortization periodt January 1, 2012 was 30 years.

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'INOTE 10 - RETIREE POSTEMPLOYMENT HEALTH BENEFITS (CONTINUED)

REQUIRED SUPPLEMENTARY INFORMATIONSchedule of undingProgressActuarialAccruedLiability UAAL as a

Actuarial (AAL) Unfunded PercentageActuarial Value Projected AAL Funded Covered of CoveredValuation of Assets Unit Credit (UAAL) Ratio Payroll PayrollDate (a) (b) (b - a) alb) (c) (b - a) I c)1/1/06 - 1,203,784 1,203,784 0.00 12,946,872 9.301/1/08 1,288,476 1,216,209 (72,267) 105.94 14,296,752 -0.51 %

1/1/10 1,293,906 1,584,797 290,891 81.64 14,557,008 2.001/1/12 1,712,944 1,886,227 173,283 90.81 14,402,420 1.20

NOTE 11 - LEASESrhe Florida Bar is the lessee of office space under operating leases expiring in various yearsthrough the year 2018, with escalation clauses.\fhe Florida Bar also leases office space from its wholly-owned subsidiary, The Florida Bar

~ u i l d i n g Corporation. The intercompany rental income and rental expense have been eliminated'n consolidation.future minimum rental payments to unrelated entities are as follows:I

I Years ending June 30 Amount12014 737,0792015 760,227112016 711,048:2017 623,5242018 197,623Total minimum future rental payments 3,029,501

total rental expense for the fiscal year ended June 30, 2013 and 2012 was 714,702 and~ 6 9 742, respectively.I

Florida Bar is also the lessor of certain office space in a building owned by The Florida Bar.he space is rented to unrelated entities under operating leases expiring in various yearshrough the year 2018. Rental income for the fiscal years ended June 30, 2013 and 2012 was293,818 and 286,784, respectively.

I

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The Florida Bar and SubsidiariesNotes to Consolidated Financial StatementsI NOTE - LEASES CONTINUED)IFuture minimum rental receipts are as follows:I Years ending June 3020142015201620172018ThereafterTotal minimum future rental receipts

$

$

Amount295 576295 576295 576295 576295 576

73 8941 551 774

NOTE 12 - CONTINGENCIES~ h e Florida Bar is involved in several actions as defendant and/or co-defendant. The majoritypf the actions are expected to be settled with little or no financial impact to The Florida Bar. Anccurate assessment of any significant liability is not determinable although management of Thetorida Bar believes that the possibility of any significant liability arising from current litigation isi xtremely remote.NOTE 13 - COMMITMENTS\fhe Florida Bar has contracted with various hotels or convention centers to reserve facilitiestooms and food and beverage services for various meetings and seminars to be held throughfiscal year 2020. If The Florida Bar should choose to cancel the contracts liquidating damagesWould be due to the hotels or convention centers. Generally liquidating damages areraduated based on the time between cancellation and the scheduled arrival date of theeeting and are calculated based on a percentage of anticipated revenues by the particularotel or convention center.

I

I

the following is a schedule of estimated liquidating damages that The Florida Bar would incur~ h o u l they cancel all the contracts as of June 30, 2013:

Estimatedliquidating

Event damagesIAnnual Meeting $ 1 029 859i of Governors Meetings 154 242

inter Meeting 159 214Section Meetings 797 129Continuin Le al Education Seminars and Other Meetin s 153 440otal commitment $ 2 293 884

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NOTE 14 DESIGNATED NET POSITIONThe Florida Bar has designated certain components of net position to be used for specificprogram purposes. As of June 30, 2013 and 2012, the designated components of net positionwere 17,227,035 and 15,818,367, respectively.

iNOTE 15 RISK MANAGEMENT PROGRAMSThe Florida Bar is exposed to various risks of loss related to torts; theft of, damage to, anddestruction of assets; errors and omissions; injuries to employees; and natural disasters.Workers' compensation, property, and general liability coverage are provided throughcommercial insurance carriers. Management continuously reviews the limits of coverage andbelieves that current coverage is adequate. There were no significant reductions in insurancecoverage from the previous year.

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Supplementary nformation


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The Florida ar and SubsidiariesConsolidating Statement of Net Position

ClientsGeneral ar Center Security Certification Sections Eliminating TotalJune 30 2 13 Fund Fund Fund Fund Fund Entries All FundsAssetsCurrent assetsCash and cash equivalents

Short-term investmentsAccounts receivable, netDue from other fundsPrepaid expenses and other assetsTotal current assets

17,585,84245,558,555644,103-892,44364,680,943

1,467,599 - - -

6,359,386 6,495,701 1,043,167 5,065,300 (18,963,554)808 _ _ _ - _ _ _ _ - -_ _ _ (5,j 17)7,827,793 6,495,701 1,043,167 5,065,300 (18,988,671)

19,053,44145,558,555644,103

868,13466,124,233Capital assets, netLandBuildings and improvementsLandscaping and parkingEquipment and furnishingsSoftwareSoftware development in processConstruction in progressAccumulated depreciationand amortizationTotal capital assets, net 3,475,005(1,236,650)

4,431,345280,310

7,259,188 - - - -(10,359,924) - - - -

1,306,69011,349,427120,3184,831,457

11,220

10,734,193(11,596,574)

1,306,69011,349,427120,3184,831,4574,431,345280,31011,220

Restricted assetsInvestment in The Florida BarBuilding CorporationTotal restricted assets 1,611,6471,611,647 - _ _ __ __ - 1 6 1 ~ 6 ~ 7- - - - (1,611,647)

Total assets 69,767,595 15,086,981 6,495,701 1,043,167 5,065,300 (20,600,318) 76,858,426

See Independent Auditors Report.- -


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The Florida Bar and SubsidiariesConsolidating Statement of Net Position(Continued)

Clients'General Bar Center Security Certification Sections Eliminating TotalJune 30 2 13 Fund Fund Fund Fund Fund Entries All FundsLiabilities

Total current liabilities

Current liabilitiesAccounts payableClient security fund claims payableAccrued expensesDue to other fundsUnearned revenuesSecurity deposits 34,590,558

3,109,456-1,264,81317,470,07112,746,218- 151,634

77 591----74,043 2,068,347

-2,068,347---- -

----- -

----- (19,038,671)

(1,444,557)(48,926)(17,470,071)(50,000)(25,117)

1,742,4902,068,3471,215,887

12,696,21848,92617,771,868

Total non-current liablitiesNon-current liabilitiesCompensated absences payable 2,519,4152,519,415 2,519,4152,519,415

Total liabilities 37,109,973 151,634 2,068,347 (19,038,671 ) 20,291,283Net positionInvested in capital assets, net of related debt 3,475,005 7,259,188 10,734,193Restricted for scholarships 50,008 50,008UnrestrictedDesignated 626,702 6,064,512 4,427,354 1,043,167 5,065,300 17,227,035Undesignated 28,505,907 - - - - 50,000 28,555,907Contributed capital - 1,611,647 - - - (1,611,647)Total net position 32,657,622 14,935,347 4,427,354 1,043,167 5,065,300 (1,561,647) 56,567,143

See Independent Auditors' Report.- 3 -


36/56

The Florida ar and SubsidiariesConsolidating Statement of Revenues, Expenses and Changes in Net Position

ClientsGeneral Bar Center Security Certification Sections Eliminating TotalYear ended une 30 2013 Fund Fund Fund Fund Fund Entries All FundsOperating revenuesAnnual feesOther fees from membersSales of products and servicesAdvertisingYoung lawyersGrants and other

Total operating revenues

24,445,4693,681,9946,754,1571,548,024923,673189,88437,543,201

---

1,119,1441,119,144

---

86,36486,364

-1,311,5197,875

-1,319,394

-1,244,4432,263,334

-3,507,777

(42,500)

(825,326)(867,826)

24,445,4696,237,9568,982,8661,548,024923,673570,06642,708,054

Total operating expenses

Operating expensesRegulation of the practice of lawCost of products and services provided to membersUnauthorized practice of lawPublic service programsCommunication with members and the publicAdministrationLegislationYoung lawyersDepreciation and amortizationOther programs and costs 34,248,206

16,391,7196,404,6531,736,089516 6114,066,7112,392,710481,581848,042399,0081,011,082 1,269,355769,057500,298 2,499,930

2,495,545

4,385- 1,214,562

1,195,507

19,055- 3,717,792

3,717,792

- (917,826)

(399,670)(156,661)(42,330)(12,595)(99,156)(58,340)(11,742)(100,677)(36,655) 42,032,019

17,187,5569,965,7841,693,7592,999,5613,967,5552,334,370469,839747,3651,191,5051,474,725

Operating income (loss) 3,294,995 (150,211) (2,413,566) 104,832 (210,015) 50,000 676,035Non-operating revenues (expenses)Investment earningsLoss on disposal of capital assetsTotal non-operating revenues (expenses)

1,812,071-1,812,071256,699(5,778)250,921

184,696-184,69635,456-35,456

239,272-239,272---

2,528,194(5,778)2,522,416Change in net posi tion 5,107,066 100,710 (2,228,870) 140,288 29,257 50,000 3,198,451Net position, beginning of year 30,443,146 14,222,947 4,375,324 902,879 5,036,043 (1,611,647) 53,368,692Transfer s (to) from other funds (2,892,590) 611,690 2,280,900Net position, end of year 32,657,622 14,935,347 4,427,354 1,043,167 5,065,300 (1,561,647) 56,567,143

See Independent Auditors Report.- 3


37/56

The Florida ar and SubsidiariesConsolidating Statement of Cash Flows

Clients'General Bar Center Security Certification Sections Eliminating TotalYear ended June 30 2 13 Fund Fund Fund Fund Fund Entries ll FundsCash flows from operating activities:Receipts from members, customers and other sourcesPayments to employees, suppliers and other vendorsNet cash provided by used in) operating activities

38,944,402(35,745,921)3,198,481877,209(463,847)413,362

2,367,264(2,551,960)(184,696)1,319,394(1,354,850)(35,456)

3,507,777(3,747,049)(239,272)(917,826)917,826-

46,098,220(42,945,801)3,152,419Cash flows from capital and related financing activities:

Acquisition of capital assetsNet cash (used in) capital and related financing activities (1,134,050)(1,134,050) (362,458)(362,458) -- -- -- -- (1,496,508)(1,496,508)Cash flows from investing activities:Redemption of investmentsPurchase of investmentsInvestment income, netNet cash (used in) provided by investing activities

30,839,459(32,710,677)594,215(1,277,003)

--256,699256,699

--184,696184,696

--35,45635,456

--239,272239,272

----

30,839,459(32,710,677)1,310,338(560,880)Increase in cash and cash equivalents 787,428 307,603 1,095,031Cash and cash equivalents, beginning of year 16,798,414 1,159,996 17,958,410Cash and cash equivalents, end of year 17,585,842 1,467,599 19,053,441

See Independent Auditors' Report.- -


38/56

The Florida ar and SubsidiariesConsolidating Statement of Cash Flows

Continued)

Year ended June 30 2 13GeneralFund Bar CenterFund

ClientsSecurityFund CertificationFund SectionsFund EliminatingEntries Totalll FundsReconciliation of operating income (loss) to net cash providedby operating activities:Operating income (loss) 3,294,995 (150,211 ) (2,413,566) 104,832 (210,015) 50,000 676,035Adjustments to reconcile operating income (loss) t onet cash provided by (used in) operating activitiesDepreciation and amortization 399,008 769,057 4,385 19,055 1,191,505

Transfers (to) from other funds (2,892,590) 611,690 2,280,900(Increase) decrease in:Accounts receivable, net (131,622) (131,622)Due from other funds (853,625) 117,313 (159,343) (29,257) 924,912CSF recovery receivablePrepaid expense and other assets 123,363 (61) 123,302Increase (decrease) in:Accounts payable (4,655) 36,508 (83,570) (51,717)Claims payable (173,728) (173,728)Accrued expenses 38,994 (4) 38,990Unearned revenues 1,532,823 (50,000) 1,482,823Security deposits - 4 4Due to other funds 841,338 - - - - (841,338)Compensated absences payable (3,173) - - - - - (3,173)Net cash provided by (used in) operating activities 3,198,481 413,362 (184,696) ( 35,456) (239,272) - 3,152,419

See Independent Auditors Report.- 33 -


39/56

The Florida Bar and SubsidiariesGeneral Fund Schedule of Budgeted and Actual Revenues and Expenses

VarianceFavorable

Actual Budgeted (Unfavorable)Rev nues - budgetary basis

An ual fees 24,445,469 24,440,633 4,836Inv stments 1,812,049 1,400,000 412,049Au horized house counsel 364,080 279,400 84,680La er regulation 627,003 780,940 (153,937)Flo ida registered paralegal program 822,995 990,055 (167,060)Pr fessional enhancement program 76,451 116,750 (40,299)Un icensed practice of law 4,747 3,035 1,712Et ics 556 275 28La er advertising 514,087 578,500 (64,413)Pr fessionalism 19,262 24,024 (4,762)Mu tijurisdictional practice 547,275 505,645 41,630Me tings and conventions 544,076 527,410 16,666Ad ressing services 355 355Co tinuing legal education program 3,173,345 3,189,377 (16,032)Co tinuing legal education rule 725,258 723,548 1,710Co rse approval center 223,804 194,803 29,001Pu lic service programs 386,094 424,500 (38,406)Fo eign legal consultants 13,425 10,620 2,805La office management advisory services 242,219 189,247 52,972Me ber benefits program 594,023 590,202 3,821Le al publications 629,633 523,500 106,133Se tion administration 828,243 817,292 10,951Yo ng lawyers division 923,673 784,136 139,537Co mitttee expenses 13,981 8,000 5,981W Reece Smith, Jr. Leadership Academy 33,647 33,647Pu lic information 57,250 77,736 (20,486)Jo rnal 455,482 478,623 (23,141)Ne s 1,092,542 1,213,592 (121,050)BuiIding and grounds 96,853 86,000 10,853Ot errevenue 16,909 144 16,765G. irk Haas Fund restricted revenue 6,999 3,500 3,499

Total revenues - bud eta basis 39,291,785 38,961,487 330,298

See Independent Auditors Report.- 4-


40/56

The Florida ar and SubsidiariesGeneral Fund Schedule of Budgeted and Actual Revenues and Expenses

YearE June 30 2013

Expe 1ses - budgetary basisRegu lation of the practice of law:Lawy 9r RegulationSta ff and office expenseTra velInternal service and administrationOther operating expensesTotal lawyer regulationAttorrley Consumer Assistance ProgramSta ff and office expenseTra vel

Internal service and administrationOther operating expensesTotal attorney consumer assistance programMultij urisdictional practiceSta ff and office expenseInte rnal service and administrationOther operating expensesTotal multijurisdictional practiceForeil legal consultantsSta ff and office expenseInternal service and administrationOther operating expenses

Total foreign legal consultantsAuthc rized house counselSta ff and office expenseInternal service and administrationOther operating expensesTotal authorized house counselEthiccSta ff and office expenseTravelInternal service and administrationOther operating expenses

Total ethics

Actual

9,631,885122,1531,462,457326,41811,542,913

1,315,8011,553167,25055,3151,539,919

13,1844,9063,76721,857

12,4172,2336514,715

8,0283,4304,05915,517

695,8593,93186,1522,088788,030

(Continued)

BudgetedVarianceFavorable(Unfavorable)

10,028,323182,6551,674,181417,51112,302,670

396,43860,502211,72491,093759,757

1,371,1031,610167,93759,2471,599,897

55,302576873,93259,978

20,2753,1444,51427,933

7,091(1,762)7476,076

7,5501,3301989,078

(4,867)(903)133(5,637)

9,5333,5533,13716,223

1,505123(922)706

726,1014,80195,7903,335830,027

30,2428709,6381,24741,997

See Independent Auditors' Report.- 5-


41/56

The Florida Bar and SubsidiariesGeneral Fund Schedule o Budgeted and Actual Revenues and Expenses

~ n d e d une 30 2013

Experlses - budgetary basisLawyE advertisingStaff and office expenseContract servicesTra elInte nal service and administrationOth er operating expensesTotal lawyer advertising

RulesStaff and office expenseTra elInte nal service and administrationOthler operating expensesTotal rules

Profe ~ s i o n l i s m Staf and office expenseContract servicesTra elInte nal service and administrationOth operating expenses[fotal professionalism

Finan e and recordsStaf and office expenseContract servicesTra felInte nal service and administrationOth operating expensesLes cost distribution[fotal finance and records

Course approval centerStaf and office expenseInte nal service and administrationOth operating expenses[fotal course approval centerContirluing legal education ruleStaff and office expense

Tra\ elInte nal service and administration operating expensesTotal continuing legal education rule

Actual

717,5222,4285,09989,6206,147820,816

76,124878,944185,940

322,2042,5736,49844,37210,008385,655

1,716,35845,5414,117253,613310,861(1,290,448)1,040,042

184,64139,150223,802

244,1321,41688,36920,394354,311

Continued)VarianceFavorableBudgeted (Unfavorable)

746,199 28,6774,400 1,9724,914 (185)100,624 11,0047,985 1,838864,122 43,306

103,795 27,6718712,847 3,903140 139117,653 31,713

418,5225,10214,68157,17125,372520,848

96,3182,5298,18312,79915,364135,193

1,732,99371,0004,475105,656342,922(1,370,136)886,910

16,63525,459358(147,957)32,061(79,688)(153,132)

159,16522,8257,713189,703

(25,476)(16,325)7,702(34,099)

287,6501,43351,58024,422365,085

43,51817(36,789)4,02810,774

See Independent Auditors Report.- -


42/56

The Florida Bar and SubsidiariesGeneral Fund Schedule of Budgeted and Actual Revenues and Expenses(Continued)

VarianceYear ended June 30 2013 Actual Budgeted

Favorable(Unfavorable)Expenses - budgetary basisleost of products and services to members:I Professional enhancement programStaff and office expense 40,858 23,163 (17,695)Travel 9,353 9,021 (332)Internal service and administration 6,172 4,272 (1,900)Other operating expenses 2,928 2,667 (261)Total professional enhancement program 59,311 39,123 (20,188)Meetings and conventionsStaff and office expense 416,661 434,770 18,109Contract services 2,971 2,846 (125)Travel 14,704 23,851 9,147Internal service and administration 163,948 161,033 (2,915)Other operating expenses 356,878 335,579 (21,299)

Less cost distribution (90,161 ) (58,061 ) 32,100Total meetings and conventions 865,001 900,018 35,017Continuing legal education programs

Staff and office expense 1,076,892 1,224,337 147,445Travel 43,565 58,793 15,228Internal service and administration 465,651 551,534 85,883Other operating expenses 1,303,330 1,248,577 (54,753)

Total continuing legal education programs 2,889,438 3,083,241 193,803Law office management advisory services

Staff and office expense 258,401 323,116 64,715Travel 30,063 35,360 5,297Internal service and administration 43,260 47,024 3,764Other operating expenses 11,276 13,384 2,108

Total law office management advisory services 343,000 418,884 75,884Member benefits programStaff and office expense 31,023 49,559 18,536Internal service and administration 27,966 32,312 4,346Other operating expenses 206,675 222,777Total member benefits program 265,664 304,648 22,882Legal publicationsStaff and office expense 375,261 294,002 (81,259)Travel 1,371 1,615 244Internal service and administration 46,290 39,726 (6,564)Other operating expenses 15,448 23,055 7,607Total legal publications 438,370 358,398 (79,972)Court rules

Staff and office expense 205,796 384,791 178,995Travel 7,482 14,886Internal service and administration 28,171 53,725 25,554Other operating expenses 23,049 21,610 (1,439)Total court rules 264,498 475,012 203,110

See Independent Auditors Report.- 7-


43/56

The Florida Bar and SubsidiariesGeneral Fund Schedule o Budgeted and Actual Revenues and Expenses

Year nded June 30 2013Experlses - budgetary basisSecticn administrationSta , and office expenseTra leiInternal service and administrationOther operating expensesTotal section administrationComn,ittee ExpensesSta , and office expense

Tra leiIntemal service and administrationOther operating expensesTotal committee expenses

Una thorized practice o law:UnlicEnsed practice of lawSta t and office expenseTra leiInternal service and administrationOther operating expensesTotal unlicensed practice of lawPubl c service programs:Public service programsSta t and office expenseTra \lei

Internal service and administrationOther operating expensesTotal public service programsCommunication with members and the public:"JourrlalSta ff and office expenseTra \leiIntemal service and administrationOther operating expensesTotal "Journal""New'j"Sta ff and office expense

Tra \leiInternal service and administrationOther operating expensesLess cost distributionTotal "News"

Actual

720,9182,401519,0687,7451,250,132

91,6205,053

18,95436,174151,801

1,439,62129,089265,11031,5661,765,386

360,599509109,97681,407552,491

277,2721,00276,483499,198853,955

504,5387,313204,1591,312,543(135,824)1,892,729

Budgeted

654,135548,5506,3051,208,990

74,7615,477

25,30942,825148,372

1,395,23941,238237,20149,2531,722,931

369,7811,59877,719146,862595,960

277,8151,907101,567536,620917,909

522,04212,861209,6331,349,436(177,531 )1,916,441

Continued)VarianceFavorable(Unfavorable)

(66,783)(2,401 )29,482(1,440)(41,142)

(16,859)424

6,3556,651(3,429)

(44,382)12,149(27,909)17,687(42,455)

9,1821,089(32,257)65,45543,469

54390525,08437,42263,954

17,5045,5485,47436,893(41,707)23,712

See Independent Auditors' Report.- 38 -


44/56

The Florida Bar and SubsidiariesGeneral Fund Schedule o Budgeted and Actual Revenues and ExpensesContinued)

VarianceFavorableYear 6nded June 30 2 13 Actual Budgeted (Unfavorable)Expenses - budgetary basisPublio informationStaff and office expenseContract servicesTravelInternal service and administrationOther operating expensesTotal public information

779,696175,91147,571236,287163,7331,403,198Administration:General administrationStaff and office expenseTravel

Internal service and administrationOthgr operating expensesTotal general administration

General counselStaff and office expenseContract servicesTravelInternal service and administration~ operating expensesTotal general counsel

167,938 10,283350,576 130,6022,788 (686)8,243 (35,828)9 72530,456 105,092

Recorrds managementSta(f and office expenseCorltract servicesTravelInternal service and administrationoperating expensesTotal records management

723,13746,94410,86830,327811,276

Board and officerStaff and office expense 228,713 249,138 20,425Travel 18,548 23,268 4,720Internal service and administration 9,072 11,204 2,132Other operating expenses 371,414 359,022 (12,392)ITotal board and officer 627,747 642,632 14,885

157,655219,9743,47444,071190425,364

311,14622756,783462368,618

418,500 107,35458,750 58,7506,384 6,157(29,767) (86,550)840 378454,707 86,089Human resource managementStaff and office expense

TrayelInternal service and administrationOther operating expenses~ cost distribution,Total human resource management

301,2351,58618,69117,024(338,538)(2)

840,892299,60563,889271,281194,0241,669,691

61,196123,69416,31834,99430,291266,493

906,325 183,18862,440 15,4964,737 (6,131)39,846 9,5191,013,348 202,072

368,570 67,3353,502 1,91612,743 (5,948)18,562 1,538(323,408) 15,13079,969 79,971

See Independent Auditors' Report.- -


45/56

The Florida Bar and SubsidiariesGeneral Fund Schedule o Budgeted and Actual Revenues and ExpensesContinued)

VarianceFavorableYear ended June 30 2 13 Actual Budgeted (Unfavorable)Expenses - budgetary basis

n f o ~ m a t i o n systemsStaff and office expenseCntract servicesTravelInternal service and administrationa_her operating expenses

L ~ s s cost distributionTotal information systems

3,608,265323,2734,93632291,625(3,916,378)112,043

3,776,085 167,820467,000 143,72714,678 9,74214 (308)140,930 49,305(4,285,919) (369,541 )112,788 745Research, planning and evaluationStaff and office expenseContract servicesTravel

Internal service and administration----mher operating expensesTotal research, planning and evaluation

166,37811,0004,3081,44310,131193,260

u i l ~ i n g and groundsStaff and office expense 1,722,470Travel 2,074In'ernal service and administration 3 1Other operating expensesLess cost distribution (1,628,585)

172,489 6,11113,350 2,3505,558 1,2501,955 51210,482 351203,834 10,574

1,930,568 208,0983,725 1,65114 (287)3 3(1,832,735) (204,150)Total building and grounds 96,260 101,575 5,315h i ~ p i n g and receivingStaff and office expense 121,188 150,922 29,734Internal service and administration (3,044) (4,000) (956)

O ~ h e r operating expenses 450 36 (414) cost distribution (118,599) (144,464) (25,865)Total shipping and receiving (5) 2,494 2,499

Divi$ion director - legalStaff and office expense (9,846) (27,753) (17,907)Travel 10,225 20,619 10,394In'ernal service and administration (379) 1,049 1,428~ r operating expenses 1 500 499. Total division director - legal 1 (5,585) (5,586)Divi$ion director - ethics, UPL and professionalism

S t ~ f f and office expense (9,296) (8,946) 350Travel 9,105 8,472 (633)Internal service and administration 192 1,024 832O her operating expenses 3 59 56Total division director - ethics, UPL and professionalism 4 609 605

See Independent Auditors' Report.-

8/13/2019 20

2013-2012 june 30 the florida bar financial statements

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