Download - 2007-2006 June 30 The Florida Bar Financial Statements

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

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The Florida Bar and SubsidiariesFinancial Statements andSupplemental Information

June 30, 2007 and 2006


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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


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RIGGS &INGRAM, LLC1713 Mahan Drive

Tallahassee, FL 32308

PI 850 878 8777FI 850 878 2344www.cricpa.com

American Institute ofCertified Public Accountants

Alabama Society ofCertified Public Accountants

Florida Institute ofCertified Public Accountants

Georgia Society ofCertified Public Accountants

Mississippi Society ofCertified Public Accountants

AICPA Alliance for CPA Firms

Center for Audit Quality

g ~ C R I CAR RRIGGS &INGRAM

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.


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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


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Management's Discussion and Analysis


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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, increased sales in continuing legal education registrations and certificationsand efficiencies in operations of the various departments of The Florida Bar. Included in thesupplemental information is an actual to budget comparison for each department.

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The Florida Bar and SubsidiariesManagement's Discussion and AnalysisFor the year ended June 30, 2007 and 2006, The Florida Bar's budget funded most departments ata continuation level. A consumer assistance program was implemented in 2006-07 to centralize allcomplaint intake in Tallahassee. No other significant increased activity was implemented orplanned.The Lawyer Regulation Department is currently in the process of restructuring and staffing itsconsumer assistance program and is expected to have full implementation of the program in 200708.

CONDENSED CONSOLIDATED FINANCIAL INFORMATIONCONDENSED CONSOLIDATED STATEMENTS OF NET ASSETS

June 30,Assets

Current assetsCapital assets, netTotal assets

LiabilitiesCurrent liabilitiesOther liabilities

Total liabilitiesNet assets

Invested in capital assets, net of related debtRestricted for scholarshipsUnrestricted

Total net assetsTotal liabilities and net assets

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2007$ 52,216,8716,339,329$ 58,556,200

$ 12,157,0924,071,137

16,228,229

4,474,50332,55137,820,917

42,327,971$ 58,556,200

2006 Change$ 47,002,1215,904,229$ 52,906,350

$$

5,214,750435,1005,649,850

$ 12,556,5354,037,979

16,594,514$ (399,443)

33,158(366,285)

3,854,68625,24832,431,902

36,311,836

619,8177,3035,389,015

6,016,135$ 52,906,350 $ 5,649,850


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The Florida Bar and SubsidiariesManagement's Discussion and AnalysisCONDENSED CONSOLIDATED STATEMENTS OF NET ASSETS

June 30, 2006 2005 ChangeAssetsCurrent assets $ 47,002,121 $ 38,912,927 $ 8,089,194Capital assets, net 5,904,229 6,220,716 (316,487)Total assets

LiabilitiesCurrent liabilitiesOther liabilitiesTotal liabilities

$ 52,906,350

$ 12,556,5354,037,97916,594,514

$ 45, 133,643 $ 7,772,707

$ 9,943,975 $ 2,612,5604,077,261 (39,282)14,021,236 2,573,278Net assets

Invested in capital assets, net of related debtRestricted for scholarshipsUnrestrictedTotal net assets

3,854,68625,248

32,431,90236,311,836

3,999,660 (144,974)25,792 (544)27,086,955 5,344,94731,112,407 5,199,429

Total liabilities and net assets $ 52,906,350 $ 45, 133,643 $ 7,772,707For more detailed information, see the accompanying Consolidated Statements of Net Assets.

CONDENSED CONSOLIDATED STATEMENTS OF REVENUES, EXPENSESAND CHANGES IN NET ASSETS

June 30,Operating revenuesOperating expenses

Net operating revenuesNon-operating revenuesNon-operating expenses

Net non-operating revenuesIncrease in net assetsNet assets, beginningNet assets, ending

2007$ 39,732,682(37,915,576)

1,817,1064,361,648(162,619)

4,199,0296,016,135

36,311,836$ 42,327,971

2006$ 36,834,025(33,968,523)

2,865,502$ Change2,898,657

(3,947,053)(1 ,048,396)

2,505,173(171,246)

2,333,9271,856,475

8,6271,865,102

5,199,42931,112,407

816,7065,199,429

$ 36,311,836 $ 6,016,135

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The Florida Bar and SubsidiariesManagement's Discussion and Analysis

CONDENSED CONSOLIDATED STATEMENTS OF REVENUES, EXPENSESAND CHANGES IN NET ASSETS

June 30, 2006 2005 ChangeOperating revenues $ 36,834,025 $ 35,118,962 $ 1,715,063Operating expenses (33,968,523) (32,417,175) (1,551,348)Net operating revenues 2,865,502 2,701,787 163,715

Non-operating revenues 2,505,173 1,520,124 985,049Non-operating expenses (171,246) (177,280) 6,034Net non-operating revenues 2,333,927 1,342,844 991,083Increase in net assets 5,199,429 4,044,631 1,154,798Net assets, beginning 31,112,407 27,067,776 4,044,631Net assets, ending $ 36,311,836 $ 31,112,407 $ 5,199,429For more detailed information, see the accompanying Consolidated Statements of Revenues,Expenses, and Changes in Net Assets.

CAPITAL ASSETSThe Florida Bar had invested the f o l l o w i n ~ in Capital Assets:June 30, 2007 2006 ChangeLand $ 1,103,060 $ 1,103,060 $Building and improvements 8,292,805 7,902,973 389,832Landscaping and parking 120,318 120,318Equipment and furnishings 4,632,356 4,456,519 175,837Construction in progress 136,170 136,170Total, prior to depreciation 14,284,709 13,582,870 701,839

Accumulated depreciation (7,945,380) (7,678,641 ) (266,739)Net capital assets $ 6,339,329 $ 5,904,229 $ 435,100

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The Florida Bar and SubsidiariesManagement's Discussion and Analysis

June 3D,LandBuilding and improvementsLandscaping and parkingEquipment and furnishingsTotal, prior to depreciation

CAPITAL ASSETS2006$ 1,103,060

7,902,973120,3184,456,51913,582,870

2005$ 1,103,0607,877,915120,3184,651,07213,752,365

$ Change25,058

(194,553)(169,495)Accumulated depreciation

Net capital assets(7,678,641)

$ 5,904,229(7,531,649)

$ 6,220,716 $(146,992)(316,487)

Presently, The Florida Bar has no plans to significantly alter its investment in capital assets.

DEBTAt June 30, 2007 and 2006, The Florida Bar had $1 ,864,825 and $2,049,543, respectivelyoutstanding in a mortgage loan. The mortgage loan is scheduled to balloon on October 15,2009. Management is evaluating its options for when the mortgage loan balloons.Management will decide to either pay the loan or refinance the balloon. Investments have beenpurchased to cover the required balloon payment if that is the selected course of action.

Future Financial PlanThe Florida Bar was created by the Supreme Court of Florida to assist it in regulating thepractice of law in Florida. It is primarily funded through lawyer payments of their requiredannual fee, sale of continuing education programs to lawyers and other revenue from itsbusiness partners and affiliates. There is no plan to materially change these revenue streamsfor the next two years. Accordingly, there are no present plans to materially increase the scopeor nature of the services provided to the citizens of Florida and the lawyers authorized to servethem.

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Financial Statements


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The Florida Bar and SubsidiariesConsolidated Statements of Net Assets

June 30,AssetsCurrent assets

Cash and cash equivalentsShort-term investmentsAccounts receivable, netPrepaid expenses and other assets

Total current assetsCapital assets, net

LandBuildings and improvementsLandscaping and parkingEquipment and furnishingsConstruction in progressAccumulated depreciation

Total capital assets, netTotal assetsLiabilities and Net AssetsCurrent liabilities

Current portion of long-term debtAccounts payableClaims payableAccrued expensesDeferred revenuesSecurity deposits

Total current liabilitiesNon-current liabilities

Long-term debt, less current portionCompensated absences payable

Total non-current liabilitiesTotal liabilities

Net assetsInvested in capital assets, net of related debtRestricted for scholarshipsUnrestricted

Total net assetsTotal liabilities and net assets

2007 2006

$ 10,667,86840,553,570577,459417,974

52,216,871

$ 13,917,75432,116,711405,324562,332

47,002,121

1,103,0608,292,805120,318

4,632,356136,170(7,945,380)

6,339,329

1,103,0607,902,972

120,3184,456,519

(7,678,640)5,904,229

$ 58,556,200 $ 52,906,350

$ 198,9391,586,408

53,595907,3859,362,87447,891

$ 184,7181,413,949

478,858773,5379,659,687

45,78612,157,092 12,556,535

1,665,8862,405,2514,071,137

1,864,8252,173,1544,037,979

16,228,229 16,594,514

4,474,50332,551

37,820,91742,327,971

3,854,68625,248

32,431,90236,311,836

$ 58,556,200 $ 52,906,350See accompanying notes to the consolidated financial statements.

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

Years ended June 30, 2007 2006Operating revenues

Annual fees $ 20,896,608 $ 20,284,163Other fees from members 6,003,005 5,356,003Sales of products and services 8,891,878 7,560,103Advertising 2,315,354 2,223,308Young lawyers 575,425 532,811Grants and other 1,050,412 877,637

Total operating revenues 39,732,682 36,834,025Operating expenses

Regulation of the practice of law 14,704,622 13,318,143Cost of products and services provided to members 10,289,835 9,338,041Unauthorized practice of law 1,344,015 1,248,161Public service programs 1,738,927 1,999,453Communications with members and the public 3,989,239 3,550,705Administration 3,515,762 2,399,971Legislation 401,101 417,473Young lawyers 550,596 426,265Depreciation and amortization 699,110 667,743Other programs and costs 682,369 602,568

Total operating expenses 37,915,576 33,968,523Operating income 1,817,106 2,865,502Non-operating revenues (expenses)

Investment earnings 4,361,648 2,505,173Interest expense (148,325) (164,679)Loss on disposal of capital assets (14,294) (6,567)

Total non-operating revenues (expenses) 4,199,029 2,333,927Ghange in net assets 6,016,135 5,199,429Total net assets, beginning of year 36,311,836 31,112,407Total net assets, end of year $ 42,327,971 $ 36,311,836

See accompanying notes to the consolidated financial statements.- 9


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The Florida Bar and SubsidiariesConsolidated Statements of Cash Flows

Years ended June 3D, 2007 2006Cash flows from operating activities:

Receipts from members, customers and other sources $ 39,800,129 $ 39,683,779Payments to employees, suppliers and other vendors (37,493,257) (33,499,046)Net cash provided by operating activities 2,306,872 6,184,733

Cash flows from non-capital and related financing activities:Reduction of debt (184,718) (171,513)Interest paid (148,325) (164,679)

Net cash (used in) non-capital and related financing activities (333,043) (336,192)Cash 'flows from capital and related financing activities:

Acquisition of capital assets (1,148,504.) (357,823)Net cash (used in) capital and related financing activities (1,148,504) (357,823)

Cash flows from investing activities:Net change in repurchase agreement (1,499,475) (52,760)Redemption of investments 32,951,300 11,850,573Purchase of investments, net of decrease in fair value (39,888,684) (18,147,824)Investment income 4,361,648 2,505,173

Net cash (used in) provided by investing activities (4,075,211 ) (3,844,838)(Decrease) increase in cash and cash equivalents: (3,249,886) 1,645,880Cash and cash equivalents, beginning of year 13,917,754 12,271,874Cash and cash equivalents, end of year $ 10,667,868 $ 13,917,754

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 June 30, 2007 2006Reconciliation of operating income to net cash provided byoperating activities:Operating income $ 1,817,106 $ 2,865,502Adjustments to reconcile operating income to net cash

provided by operating activities:Depreciation and amortization 699,110 667,743(Increase) decrease in:

Accounts receivable, netPrepaid expenses and other assets

(172,135)144,358

267,081(360,384)

Increase (decrease) in:Accounts payable 172,459 110,990Claims payable (425,263) 339,666Accrued expensesDeferred revenues 133,848(296,813) 83,3182,054,273Security deposits 2,105 1,355Compensated absenses payable

Net cash provided by operating activities $232,097

2,306,872 $155,189

6,184,733Non-cash investing, capital, and financing acitivities

Change in the fair value of investments $ 1,195,805 $ 310,344

Supplemental informationCash paid for interest

Loss on disposal of assets

$ 148,325

$ 14,294

$

$

164,679

6,567

See accompanying notes to the consolidated financial statements.- 11 -


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The Florida Bar 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 liBasic Financial Statements - and Management's Discussion and Analysis - for State andLocal Govemments," 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 primary government is required to consider other organizations forwhich the nature and significance of their relationship with the primary government are such thatexclusion would cause the reporting entity's financial statements to be misleading or incomplete.Management's analysis has disclosed no component units that should be included in The FloridaBar's financial statements.Basis ofPresentationThe Florida Bar is accounted for as a proprietary type enterprise fund. Enterprise funds are usedto account for activities that are financed and operated in a manner similar to private businessenterprises: (1) where the costs of providing goods and services to the general public on acontinuing basis are to be financed through user charges; or (2) where the periodic determinationof net income is considered appropriate. Proprietary funds distinguish operating revenues andexpenses from non-operating items. Operating revenues and expenses generally result fromproviding goods and services in connection with a proprietary fund's ongoing operations.Operating expenses for The Florida Bar include the costs of personnel, contractual services,supplies, utilities, repairs and maintenance, and depreciation on capital assets. All revenues andexpenses not meeting this definition are reported as non-operating revenues and expenses.

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The Florida Bar and SubsidiariesNotes to Consolidated Financial StatementsNOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)Basis ofAccountingBasis of accounting refers to when revenues and expenses are recognized in the accounts andreported in the financial statements. The financial statements are prepared on the accrual basis ofaccounting in accordance with accounting principles generally accepted in the United States ofAmerica. Under this method, revenues are recognized when they are earned and expenses arerecognized when they are incurred. The measurement focus of proprietary fund types is on a flowof economic resources method, which emphasizes the determination of net income, financialposition, and cash flow. All fund assets and liabilities, current and non-current, are accounted for inthe Consolidated Statements of Net Assets.Cash and Cash EquivalentsAll demand deposit accounts, daily repurchase agreements and short-term highly liquidinvestments with original maturities of three months or less are reported as cash equivalents.InvestmentsInvestments are reported at fair value, which are based on quoted market prices. Thedetermination of realized gains and losses is independent of the determination of the net change inthe fair value of investments. Realized gains and losses on investments held in a previous fiscalyear and sold in the current period were used to compute the change in fair value for the previousyear and the current year.Capital AssetsCapital assets are stated at cost less accumulated depreciation. The cost of capital assets isdepreciated over the estimated useful lives of the related assets, ranging from 5 to 40 years, usingthe straight-line method. When capital assets are retired or otherwise disposed of, the costs andrelated accumulated depreciation are removed from the accounts and any resulting gain or loss isreflected in the Consolidated Statements of Revenues, Expenses and Changes in Net Assets, inthe period of disposal.Claims PayableThe Florida Bar created the Clients' Security Fund (the Fund) to compensate people who havesuffered financial losses due to misappropriation of funds by errant Florida Bar members. TheFund is financed by $20 of each Florida Bar member's annual fees. Claims payable representamounts payable from the Fund.Deferred RevenuesDeferred revenues consist primarily of membership fees collected in advance, prepaid advertisingand prepaid legal education courses.

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The Florida Bar and SubsidiariesNotes to Consolidated Financial StatementsNOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)Allocation 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 NetAssets. Accordingly, certain costs have been allocated among the programs and supportingservices benefited.Principles of ConsolidationThe 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 and is not subject to federal orstate income tax. The Florida Bar Building Corporation, Florida Lawyers Association for theMaintenance 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.Accordingly, no liability for income taxes is reflected in these financial statements.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 AssetsNet assets are categorized as invested in capital assets, restricted for scholarships, andundesignated. Invested in capital assets is intended to reflect the portion of net assets that areassociated 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.

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The Florida Bar and SubsidiariesNotes to Consolidated Financial StatementsNOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)Derivative Financial InstrumentsThe Florida Bar follows the provisions of Governmental Accounting Standards Board (GASB)Technical Bulletin No. 2003-1, Disclosure Requirements for Derivatives Not Reported at Fair Valueon the Statement of Net Assets, an amendment to GASB Technical Bulletin 94-1. GASB TechnicalBulletin No. 2003-1 provides an updated definition of derivatives and requires certain disclosuresregarding the government's objective for entering into derivative transactions and the derivative'sterms, fair value, and risk exposures.Recent Accounting PronouncementsThe Florida Bar prospectively adopted Governmental Accounting Standards Board (GASB) No. 45,Accounting and Financial Reporting by Employers for Postemployment Benefits Other thanPensions (OPEB), during the year ended June 30,2007. This statement establishes standards forthe measurement, recognition, and display of OPEB expenses and related liabilities, notedisclosures and, if applicable, required supplementary information, in the financial reports ofgovernmental employers. OPEB costs are accrued when the related services are received by TheFlorida Bar.

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 that the risk is limited because the financial institutions are large with strong financialpositions.Cash and cash equivalents are held at two financial institutions. Operating cash is held at afinancial institution insured by the Federal Deposit Insurance Corporation up to $100,000 each forthe parent and subsidiary accounts. Operating cash balances were $2,561,243 and $2,021,114 atJune 30, 2007 and 2006, respectively. Additional cash and money market funds are held at alfinancial institution insured by the Securities Investor Protection Corporation up to $100,000./Additional cash and money market funds were $8,106,625 and $11,896,640 at June 30, 2007 and/2006, respectively.

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The Florida Bar and SubsidiariesNotes to Consolidated Financial StatementsNOTE 4 - INVESTMENTSInvestment Objectives and PoliciesInvestments will be 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. The ultimateresponsibility for the proper supervision of The Florida Bar's investment portfolio rests with theBoard of Directors and the Investment Committee.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 of the short-term portfolio are to preserve capitalfor short-term cash flow needs, provide liquidity, and to achieve attractive short-term yieldsconsistent with the preservation 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-termportfolio possesses an intermediate to long-term horizon (five to seven years) and within thishorizon, the primary objectives of the long-term portfolio are to provide long-term growth ofcapital and income.The asset allocation guidelines with regard to acceptable asset classes, the overall target assetmix, and the representative indices of each asset class are as follows:Short-Term

Asset ClassesShort-Term Fixed IncomeCash and EquivalentsLong-Term

Asset ClassesLarge Cap EquityMid Cap EquitySmall Cap EqUityInternationalEmerging Market EquityReal AssetsREITsTIPSCash and Equivalents

TargetMinimum Mix Maximum35.0t'o 50.0t'o 65.0%35.0% 50.0% 65.0%

TargetMinimum Mix Maximum14.00k 20.0% 26.0%

4.0% 6.0% 8.0%4.0% 6.0% 8.00/09.8k 14.00k 18.2t'oO.Ot'o 2.0% 4.0%0.0% 2.0% 4.0%1.0% 3.0% 5.0%1.0% 3.00k 5.0%2.00k 4.0 0k 6.00k

- 16

RepresentativeIndex

Lehman Brothers 1-3 year Govt Bond IndexCitigroup U.S. 90-Day Treasury Bills

RepresentativeIndexStandard & Poor's 500 IndexRussell Mid Cap Index

Russell 2000 IndexMSCI EAFE IndexMSCI Emerging Markets Free IndexDow Jones AIG Commodity IndexNAREIT Equity IndexLehman Brothers US TIPS IndexCitigroup U.S. 90-Day Treasury Bills


21/54

The Florida Bar and SubsidiariesNotes to Consolidated Financial StatementsNOTE 4 - INVESTMENTS (CONTINUED)InvestmentsAt June 30, The Florida Bar's investment balances were as follows:June 30,Repurchase agreementMutual funds - debt securities (ST) *Mutual funds - debt securities (LT) *US TreasuriesFederal AgenciesCorporate Bonds &Other Fixed IncomeMunicipal BondsUS Treasury BondsMutual funds - equity securitiesStocksTotal investments

Fair Value$ 2,173,9637,081,5884,854,9132,279,1143,656,258913,232

1,354,8453,212,727

15,026,930$ 40,553,570

2007Maturity

Daily2 year average **

N/A5 year average**15 year average**16 year average**11 year average**2 year average **

N/AN/A

2006Rating Fair ValueN/A $ 674,488

Ba to Aaa 9,548,510N/A 7,429,690AaaAaa

Baa2 to AaaA1 to Aaa

AaaN/A 1,701,705N/A 12,762,318$ 32,116,711

* The Florida Bar invests in short-term mutual funds, which consist of debt securities (Le. fixed income securities).The Florida Bar's short-term mutual funds are not invested directly in fixed income debt securities. The Florida Bar isable to sell their interest in these mutual funds' at will (subject to potential redemption fees).** Represents the average matur ity of debt securities held by The Florida Bar.Credit RiskInvestments in fixed income debt securities through mutual funds must adhere to the policy ofmeeting an average quality rating of A or higher for the long-term portfolio and AA or higher forthe short-term portfolio by either Standards & Poor's, Moody's or Fitch Investors Service at thetime of purchase. Investments in corporate holdings must be rated investment grade or betterby either Standards &Poor's, Moody's or Fitch Investors Service at the time of purchase.Concentration of Credit RiskInvestments in equity securities are subject to a maximum 5% commitment at cost and 10%weighting at market of the account's total market 'value for any individual security or singleissuer. Investment in fixed income securities are subject to no more than 5% of the account'smarket value invested in a single issue or in direct obligations of a single issuer with theexception of the U.S. Government and its agencies so long as any such government or agencyissue shall be backed with the full faith and credit of the U.S. Government. In addition, no morethan 15% of the fixed income securities may be invested in mortgage backed or asset backedsecurities of a single issuer, with the exception of those issued by the U.S. Government, itsagencies, or its sponsored agencies.

- 17


22/54

The Florida Bar and SubsidiariesNotes to Consolidated F'inancial Statements

NOTE 4 - INVESTMENTS (CONTINUED)Interest Rate RiskInterest 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'sinvestment in U.S. Treasuries, federal agencies, corporate bonds, municipal bonds and U.S.Treasury bonds are directly subject to the interest rate risk of debt instruments. The Florida Baris not directly subject to the interest rate risk for its short-term debt instruments, as investmentsin these debt securities are entered into through mutual funds and The Florida Bar is able to selltheir interest in these mutual funds at will (subject to potential redemption fees). Additionally,The Florida Bar has elected to participate in mutual funds with target durations of one to twoyears (low duration funds). However, investments in mutual funds are with the understandingthat the investment policies stated in the mutual fund's prospectus supersedes the guidelinesestablished by The Florida Bar.Custodial Credit RiskCustodial credit risk is the risk that in the event of bankruptcy of the custodial entity, The FloridaBar's deposits may not be returned to it. The Florida Bar's policy regarding custodial credit riskis that deposits subject to overnight repurchase agreements shall only be invested in securitiesbacked by the United States government. Additionally, The Florida Bar will only hold investmentsecurities that are insured or registered and held by The Florida Bar, or its designated agent, inthe name of The Florida Bar. The repurchase agreement is exposed to uninsured anduncollateralized custodial credit risk with Bank of America. Investments held through MorganStanley have Securities Investor Protection Corporation coverage up to $500,000 per customerfor cash and securities and excess protection provided by the Customer Asset ProtectionCompany for up to the net equity value of cash and securities in Morgan Stanley's account.Investments in PIMCO mutual funds are held by a third party trust company.Foreign Currency RiskInvestments in international equity securities are limited to SEC-Registered, U.S. exchangelisted, U.S. dollar-denominated securities in foreign domiciled issuers. Investments ininternational debt securities are limited to SEC-registered, U.S. dollar-denominated, U.S.government backed securities issued by foreign governments. The Florida Bar invests ininternational securities through American Depository Receipts (ADRs). ADRs representinvestments in shares of foreign companies traded on the U.S. financial markets and aredenominated in U.S. dollars and, thus, are not exposed to foreign currency risk. Investments inforeign currency-denominated government bonds, any type of foreign corporate bond, or anyother 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 policy approves the use of mutual funds,which may include foreign securities, with the understanding that the investment policies statedin the mutual fund's prospectus supersede the guidelines set forth in The Florida Bar'sinvestment policy.

- 18


23/54

The Florida Bar and SubsidiariesNotes to Consolidated Financial StatementsNOTE 4 - INVESTMENTS (CONTINUED)Derivative InstrumentsThe Florida Bar's investment policy states that investments in options, derivatives and financialfutures are prohibited in separately managed accounts. Additionally, the investment policyapproves the use of mutual funds, which may include derivative instruments, with theunderstanding that the investment policies stated in the mutual fund's prospectus supersede theguidelines set forth in The Florida Bar's investment policy.

NOTE 5 - ACCOUNTS RECEIVABLE, NETThe following is a summary of accounts receivable, net:June 30, 2007 2006Accounts receivable $ 602,359 $ 430,224Allowance for doubtful accounts (24,900) (24,900)Accounts receivable, net $ 577,459 $ 405,324

NOTE 6 - CAPITAL ASSETS, NETCapital assets not being depreciated:

LandConstruction in Progress

Total capital assets not depreciated

July 1, 2006$ 1,103,060

1,103,060

Additions$ -

136,170136,170

Deletions June 30, 2007$ - $ 1,103,060

136,1701,239,230

Capital assets being depreciated:Buildings and improvementsLandscaping and parkingEquipment and furnishings

Total capital assets being depreciated

7,902,972120,318

4,456,51912,479,809

389,833674,799

1,064,632(498,962)(498,962)

8,292,805120,318

4,632,35613,045,479

Less accumulated depreciation for:Buildings and improvementsLandscaping and parkingEquipment and furnishings

Total accumulated depreciationTotal capital assets being depreciated, net

(4,269,950)(120,318)

(3,288,372)(7,678,640)4,801,169

(263,422)(435,688)(699,110)365 ,522

432,370432,370(66,592)

(4,533,372)(120,318)

(3,291,690)(7,945,380)5,100,099

Total capital assets, net

Depreciation expense for$667,743, respectively. the years

$ 5,904,229 $ 501,692

ended June 30, 2007 and

$ (66 ,592) $ 6,339,3292006 was $699,110 and

- 19


24/54

The Florida Bar and SubsidiariesNotes to Consolidated Financial StatementsNOTE 7 - LONG-TERM LIABILITIESLong-Term DebtThe following is a summary of long-term debt:June 30, 2007 2006Renewal mortgage note payable to Bank of America in the amountof $2,986,384 due on October 15, 2009. Monthly payments of principal began on November 15, 1999 at $9,383 with annualincreases of $723 per month each November 15th based on a 15year amortization with a balloon payment of $1,396,760 at maturity.Interest is payable monthly based on a contract rate equal to theLondon Interbank Offering Rate (LIBOR) (5.32% at June 30, 2007)plus 47 basis points. However, the interest rate was swapped in ahedge transaction. See Note 8 below. The mortgage iscollateralized by real estate owned by The Florida Bar BuildingCorporation and guaranteed by The Florida Bar. $ 1,864,825 $ 2,049,543

Current portion (198,939) (184,718)Long-term debt, less current portion $ 1,665,886 $ 1,864,825

Years ended June 30,The following are maturities of long-term debt:

Amount200820092010TotalCompensatedAbsences PayableCompensated absences payable consisted of the following:

$ 198,939214,2551,451,631$ 1,864,825

June 30,Accrued vacationAccrued sick leave

Total compensated absences

2007$ 1,451,600

953,651$ 2,405,251

2006$ 1,289,710

883,444$ 2, 173,154

- 20-


25/54

The Florida Bar and SubsidiariesNotes to Consolidated Financial StatementsNOTE 7 - LONG-TERM LIABILITIES (CONTINUED)Changes in Long-Term Liabili tiesChanges in long-term liabilities are summarized as follows:Balance Balance

July 1,2006 Additions Reductions June 30, 2007Long-term debt $ 2,049,543 $ - $ (184,718) $ 1,864,825Compensated absences 2,173,154 1,746,807 (1,514,710) 2,405,251Total long-term liabilities $ 4,222,697 $ 1,746,807 $ (1,699,428) $ 4,270,076

NOTE 8 - DERIVATIVE DISCLOSURE -INTEREST RATE SWAPObjective of the interest rate swap. In October 1999, The Florida Bar refinanced an 8.5%fixed rate mortgage to a variable rate mortgage based on the LIBOR rate plus .47%. Tomanage its interest rate exposure under the variable rate renewal mortgage note payable toBank of America, The Florida Bar entered into a hedge transaction on October 13, 1999 to swapits floating rate for a fixed rate through a 120 month interest rate swap provided by Bank of'America.Terms. The swap was for the notional amount of $2,986,384 which was equal to the principalamount of the underlying variable rate debt. The notional amount declines each year as theprincipal amount of the associated debt declines. At June 30, 2007 and 2006, the notionalamount was $1,864,825 and $2,049,543, respectively. The swap was entered into at the sametime that the debt was refinanced (October 1999). Under the swap, The Florida Bar pays theBank of America a contracted interest rate of 30-day LIBOR plus .47% and receives a paymentfrom Bank of America based on the coupon rate of the swap which is 6.97%. The net effect ofthe two contractual rates is an effective fixed rate of 7.44%. The swap matures on October 15,2009.Fair value. Due to the difference between the two rates, the swap had a negative fair value of$63,775 and $80,999 as of June 30,2007 and 2006, respectively. The fair value was estimatedby the Bank of America as identified in the Schedule to the International Swap DealersAssociation Master Agreement (ISDA) using the mid-market level method. This method is inaccordance with market conventions, which take into consideration estimates about relevantpresent and future market conditions, as well as size and liquidity of the position and relatedactual or potential hedging transactions.Basis risk. The swap exposes The Florida Bar to basis risk should the LIBOR rates decreasesignificantly. If a change occurs that results in a significant decrease in LIBOR rates, theexpected cost savings may not be realized.Termination risk. The Florida Bar or the Bank of America may terminate the swap if the otherparty fails to perform under terms of the agreement. If at the time of termination the swap has anegative fair value, The Florida Bar would be liable to the Bank of America for a payment equalto the swap's fair value.

- 21


26/54

The Florida Bar and SubsidiariesNotes to Consolidated Financial StatementsNOTE 8 - DERIVATIVE DISCLOSURE -INTEREST RATE SWAP (CONTINUED)Swap payments and associated debt. Using rates as of June 30, 2007, debt servicerequirements of the renewal mortgage note payable and the swap payments, assuming currentinterest rates remain the same for their term, were as follows. As rates vary, the variable-rateinterest payments and swap payments will vary.

Year ending Interest rate Net debtJune 30 Principal Interest Total swap, net service2008 $ 198,939 $ 102,788 $ 301,727 $ 20,948 $ 322,6752009 214,255 90,870 305,125 18,519 323,6442010 1,451,631 20,747 1,472,378 4,228 1,476,606

Total $ 1,864,825 $ 214,405 $ 2,079,230 $ 43,695 $ 2,122,925

NOTE 9 - 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 dues such as advertising approval fees,certification fees and section dues.Sales ofProducts and ServicesIncludes revenues from sources such as Continuing Legal Education (CLE) registrations, salesof publications and meeting revenues.Grants and OtherIncludes grants received from The Florida Bar Foundation, cost recoveries from disciplinecases, rents received in The Bar Center Building Fund and other sources of revenue.Regulation of the Practice of LawIncludes expenses incurred for Lawyer Regulation, Lawyer Advertising, Ethics, Continuing LegalEducation Rules (CLER), Membership Records and Certification.Cost ofProducts and Services Provided to MembersIncludes expenses such as the cost of CLE courses and publications, Legal Office ManagementAdvisory Services (LOMAS), voluntary member assistance programs, meetings, committeeactivity and section activity.

- 22


27/54

The Florida Bar and SubsidiariesNotes to Consolidated Financial StatementsNOTE 9 - REVENUE AND EXPENSE CLASSIFICATION (CONTINUED)Communication with Members and the Public

Includes the expenses of the Public Information Department and The Florida Bar Journal andNews.AdministrationIncludes board and officer expenses, the cost of the Executive Director's office, GeneralCounsel, Research, Planning and Evaluation, and liability and property insurance.

NOTE 10 - RETIREMENT PLANSThe 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 based on a formula which was 11 0/0 of coveredcompensation and 4.30/0 on covered compensation exceeding 800/0 of the Social Security wagebase for the years ended June 30, 2007 and 2006. The employer contributions are allocated toseparate participant accounts and invested by the Trustee in the funds selected by theemployee from those offered by the Plan Administrator. Participant accounts vest based on thefollowing schedule:

< 3 years 00/0 3 -4 years 40 0/0 4 - 5 years 60 0/0 5 - 6 years 800/0 > 6 years 1000/0

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. Thepension contribution made equaled the contribution required during the years ended June 30,2007 and 2006 for the Plan years ended December 31, 2006 and 2005 and was $1,434,567and $1,275,351, respectively.The Florida Bar also has a deferred compensation plan. The plan is for the benefit of all eligibleemployees who e lect to participate.

- 23-


28/54

The Florida Bar and SubsidiariesNotes to Consolidated Financial StatementsNOTE 11 - RETIREE POSTEMPLOYMENT HEALTH BENEFITSPlan Description. The Florida Bar Retiree Health Plan (TFBRHP) is a single-employer definedbenefit healthcare plan administered by The Florida Bar. TFBRHP provides health insurancebenefits to eligible employees at early retirement, disability or 'full retirement. The Florida Barhas the authority to establish and amend benefit provisions to TFHRHP.Funding Policy. The contribution requirements of plan members and The Florida Bar areestablished and may be amended by The Florida Bar. The required contribution is based on anactuarially determined percentage of total active payroll. For fiscal year ended June 30, 2007,The Florida Bar contributed $1,281,688 to the plan. Plan members, who are ages 62 through65 or disabled, are required to contribute $25 per month for retiree-only coverage and $100 permonth for all other member coverage.Annual OPES Cost and Net OPES Obligation. The Florida Bar's annual other postemploymentbenefit (OPEB) cost (expense) is calculated based on the annual required contribution of theemployer (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, isprojected to cover normal cost each year and amortize any unfunded actuarial liabilities (orfunding excess) over a period not to exceed thirty years. Based on the January 1, 2006,actuarial valuation, the ARC is 0.97% of active payroll payable for the fiscal year ending June30,2007. The following table shows the components of The Florida Bar's annual OPEB cost forthe year, the amount actually contributed to the plan, and changes in The Florida Bar's netOPEB obligation to TFBRJ-IP:Annual required contribution $ 64,766Interest on net OPEB obligationAdjustments to annual required contributionAnnual OPEB cost (expense)Net OPEB obligation - July 1,2007Annual OPEB cost (expense) for 2007Benefits paid during 2007Contributions made during 2007

$ 64,766$ 1,230,002

64,766(13,080)

(1,281,688)Net OPEB obligation - June 30, 2007 $

The Florida Bar's annual OPEB cost, the percentage of annual OPEB cost contributed to theplan, and the net OPEB obligation for 2007 were as follows:

AnnualOPEB Percentage of Annual OPEB Cost Net OPESFiscal Year Ended Cost Contribtued Obligation6/30/2007 $ 64,766 1000Jb $

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29/54

The Florida Bar and SubsidiariesNotes to Consolidated Financial StatementsNOTE 11 - RETIREE POSTEMPLOYMENT HEALTH BENEFITS (CONTINUED)Funded Status and Funding Progress. As of January 1, 2006, the first actuarial valuation date,the plan was unfunded. The actuarial accrued liability for benefits was calculated to be$1,203,784. The covered payroll (annual payroll of active employees covered by the plan) was$12,946,872, and the ratio of the UAAL to the covered payroll was 9.30 0AJ. The liability wasfunded in June 2007.Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts andassumptions about the probability of occurrence of events far into the future. Examples includeassumptions about future employment, mortality, and the healthcare cost trend. Amountsdetermined 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 arebased on the substantive plan (the plan as understood by the employer and the plan members)and include the types of benefits provided at the time of each valuation and the historical patternof 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.In the January 1, 2006 actuarial valuation, the projected unit credit actuarial cost method wasused. The actuarial assumptions included a 6% investment rate of return, which is a blendedrate of the expected long-term investment returns on plan assets and on the employer's owninvestments, and an annual healthcare cost trend rate of 12AJ initially, reduced by decrementsto an ultimate rate of 60/0 in the year 2010 and beyond. Both rates included a 3% inflationassumption. As of the January 1, 2006 actuarial valuation, TFBRHP did not have plan assets intrust solely to provide benefits to retirees and their beneficiaries. However, the actuary assumedthat TFBRHP would start to pre-fund benefits and the investment rate of return was based onthis fact. The UAAL is being amortized as a level percentage of projected payroll on an openbasis. The remaining amortization period at January 1, 2006 was 30 years.

NOTE 12 - LEASESThe Florida Bar is the lessee of office space under operating leases expiring in various yearsthrough the year 2017, with escalation clauses.

- 25-


30/54

The Florida Bar and SubsidiariesNotes to Consolidated Financial Statements

NOTE 12 - LEASES (CONTINUED)The Florida Bar leases office space from its wholly-owned subsidiary, The Florida Bar BuildingCorporation. The intercompany rental income and rental expense have been eliminated inconsolidation.Future minimum rental payments are as follows:Years ending June 30, Amount2008 $ 717,2292009 676,4542010 559,8872011 205,5832012 203,798Thereafter 1,110,623Total minimum future rental payments $ 3,473,574Total rental expense for the fiscal year ended June 30, 2007 and 2006 was $860,045 and$757,530, respectively.The Florida Bar is also the lessor of certain office space in a building owned by The Florida Bar.The space is rented to unrelated entities under operating leases expiring in various yearsthrough the year 2009. Rental income for the fiscal years ended June 30, 2007 and 2006 were$507,083 and $499,561, respectively.Future minimum rental receipts are as follows:Years ending June 30, Amount2008 $ 265,9912009 66,986Total minimum future rental payments $ 332,977

NOTE 13 - CONTINGENCIESThe Florida Bar is involved in several actions as defendant and/or co-defendant. The majorityof the actions are expected to be settled with little or no financial impact to The Florida Bar. Anaccurate assessment of any significant liability is not determinable although management of TheFlorida Bar believes that the possibility of any significant liability arising from current litigation isextremely remote.

NOTE - COMMITMENTSThe Florida Bar has contracted with various hotels to reserve facilities, rooms, and food andbeverage services for meetings and seminars to be held through 2015. If The Florida Barshould choose to cancel the contract(s), liquidating damages will be due to the hotel. Generally,liquidating damages are tiered depending on the time between cancellation and scheduledarrival date and are based on a percentage of anticipated revenues.

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31/54

The Florida Bar and SubsidiariesNotes to Consolidated Financial Statements

NOTE 14 - COMMITMENTS (CONTINUED)The following is a schedule of estimated liquidating damages that The Florida Bar would incurshould they cancel the contract(s) as of June 30, 2007:

EstimatedliquidatingEvent damagesAnnual Meeting $ 674,810Mid-Year Meeting 98,682Board of Governors Meeting 130,746General Meeting 15,700Section Meeting 592,893Continuing Legal Education Seminars 356,745Total commitment $ 1,869,576

NOTE 15 - DESIGNATED FUND BALANCESThe Florida Bar has designated certain net assets to be used for specific program purposes. Asof June 30,2007 and 2006, the designated net assets were $14,691,134 and $12,073,656,respectively.

NOTE 16 - 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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32/54

Supplementary Information

. . . - - - - - - - - - - - - - - - - . - J


33/54

he Florida Bar and SubsidiariesConsolidating Statement of Net Assets

Clients'General Bar Center Security Certification Sections Eliminating Total

June 30, 2007 Fund Fund Fund Fund Fund Entries All FundsAssetsCurrent assets

Cash and cash equivalentsShort-term investmentsAccounts receivable, netDue from other fundsPrepaid expenses and other assets

Total cu rrent assets

$ 9,533,71240,553,570

545,576-443,091

51,075,949

$ 1,134,156--

5,415,255-6,549,411

$ ---

4,621,087-4,621,087

$ ---

789,453-789,453

$ ---

3,969,392-3,969,392

$ --31,883

(14,795,187)(25,117)

(14,788,421 )

$ 10,667,86840,553,570

577,459417,974

52,216,871Restricted assets

Investment in The Florida BarBuilding Corporation

Total restricted assets1,611,6471,611,647

-- -- -- -- (1,611,647)(1,611,q47)Capital assets, net

LandBuildings and improvementsLandscaping and parkingEquipment and furnishingsConstruction in progressAccumulated depreciation

Total capital assets, net

-------

1,103,0608,292,805

120,3184,632,356

136,170(7,945,380)6,339,329

-------

-------

-------

-------

1,103,0608,292,805

120,3184,632,356

136,170(7,945,380)6,339,329

Total assets $ 52,687,596 $ 12,888,740 $ 4,621,087 $ 789,453 $ 3,969,392 $ (16,400,068) $ 58,556,200

See Independent Auditors' Report.- 28 -


34/54

- - - - - - - - - - - - - - - - -he Florida Bar and SubsidiariesConsolidating Statement of Net Assets(Continued)Clients'General Bar Center Security Certification Sections Eliminating Total

June 30,2007 Fund Fund Fund Fund Fund Entries All FundsLiabilities and Net AssetsCurrent liabilities

Current portion of long-term debt $ - $ 198,939 $ - $ - $ - $ - $ 198,939Accounts payable 2,937,134 15,006 - - - (1,365,732) 1,586,408Claims payable - - 53,595 - - - 53,595Accrued expenses 907,385 - - - - - 907,385Due to other funds 13,397,572 - - - - (13,397,572)Deferred revenues 9,362,874 - - - - - 9,362,874Security deposits - 73,008 - - - (25,117) 47,891

Total current liabilities 26,604,965 286,953 53,595 - - (14,788,421 ) 12,157,092Non-current liabilities

Long-term debt, less current portion - 1,665,886 - - - - 1,665,886Compensated absences payable 2,405,251 - - - - - 2,405,251

Total non-cu rrent liablities 2,405,251 1,665,886 - - - - 4,071,137Total liabilities 29,010,216 1,952,839 53,595 - - (14,788,421 ) 16,228,2 29

Net assetsInvested in capital assets, net of related debt - 4,474,503 - - - 4,474,503Restricted for scholarships 32,551 - - - - - 32,551UnrestrictedDesignated 515,046 4,849,751 4,567,492 789,453 3,969,392 - 14,691,134

Undesignated 23,129,783 - - - - - 23,129,783Contributed capital - 1,611,647 - - - (1,611,647)

Total net assets 23,677,380 10,935,901 4,567,492 789,453 3,969,392 (1,611,647) 42,327,971Total liabilities and net assets $ 52,687,596 $12,888,740 $ 4,621,087 $ 789,453 $ 3,969,392 $ (16,400,068) $ 58,556,200



35/54

- - - - - - - - - - - - - - - - -he Florida Bar and SubsidiariesConsolidating Statement of Revenues, Expenses and Changes in Net AssetsClients'

General Bar Center Security Certification Sections Eliminating TotalYear ended June 30, 2007 Fund Fund Fund Fund Fund Entries All FundsOperating revenues

Annual fees $ 20,896,608 $ - $ - $ - $ - $ - $ 20,896,608Other fees from members 3,757,073 - - 1,074,551 1,171,381 - 6,003,005Sales of products and services 6,344,21 2 - - 5,515 2,542,151 - 8,891,878Advertising 2,315,354 - - - - - 2,315,354Young lawyers 575,425 - - - - - 575,425Grants and other 526,919 978,887 81,001 - - (536,395) 1,050,412

Total operating revenues 34,415,591 9 78,887 81,001 1,080,066 3,713,532 (536,395) 39,732,682Operating expenses

Regulation of the practice of law 13,972,125 - - 936,414 - (203,917) 14,704,622Cost of products and services provided to members 7,345,063 - - - 3,051,525 (106,753) 10,289,835Unauthorized practice of aw 1,363,825 - - - - (19,810) 1,344,015Public service programs 586,698 - 1,160,737 - - (8,508) 1,738,927Communication with members and the public 4,047,917 - - - - (58,678) 3,989,239Administration 3,567,529 - - - - (51,767) 3,515,762Legislation 406,995 - - - - (5,894) 401,101Young lawyers 558,686 - - - - (8,090) 550,596Depreciation and amortization - 699,110 - - - - 699,110Other programs and costs 240,424 514,923 - - - (72,978) 682,369

Total operating expens es 32,089,262 1,214,033 1,160,737 936,414 3,051,525 (536,395) 37,915,576Operating income (loss) 2,326,329 (235,146) (1,079,736) 143,652 662,007 - 1,817,106Non-operatlng revenues (expenses)Investment earnings 3,126,872 464,834 388,230 48,322 333,390 - 4,361,648

Interest expense - (148,325) - - - - (148,325)Loss on disposal of capital assets - (14,294) - - - - (14,294)

Total non-operating revenues 3,126,872 302,215 388,230 48,322 333,390 - 4,199,029Change In net assets 5,453,201 67,069 (691,506) 191,974 995,397 - 6,016,135Net assets, beginning of year 20,711,247 9,924,400 3,716,362 597,479 2,973,995 (1,611,647) 36,311,836Transfers (to) from other funds (2,487,068) 944,432 1,542,636Net assets, end of year $ 23,677,380 $ 10,935,901 $ 4,567,492 $ 789,453 $ 3,969,392 $ (1,611,647) $ 42,327,971



36/54

- - - - - - - - - - - - - - - - -he Florida Bar and SubsidiariesConsolidating Statement of Cash FlowsClients'General Bar Center Security Certification Sections Eliminating Total

Year ended June 30,2007 Fund Fund Fund Fund Fund Entries All FundsCash flows from operating activities:

Receipts from members, customers and other sources $ 33,946,214 $ 978,887 $ 81,001 $ 1,080,066 $ 3,713,532 $ 429 $ 39,800,129Payments to employees, suppliers and other vendors (32,200,890) 352,603 (469,231 ) (1,128, 388) (4,046,922) (429) (37,493,257)

Net cash provided by (used in) operating activities 1,745,324 1,331,490 (388,230) (48,322) (333,390) - 2,306,872Cash flows from non-capital and related financing activities:

Reduction of debt - (184,718) - - - - (184,718)Interest paid - (148,325) - - - - (148,325)Net cash (used in) non-capital and related financingactivities - (333,043) - - - - (333,043)

Cash flows from capital and related financing activities:Acquisition of capital assets - (1,148,504) - - - - (1,148,504)Net cash (used in) capital and related financing activities - (1,148,504) - - - - (1,148,504)

Cash flows from investing activities:Net change in repurchase agreement (1,499,475) - - - - - (1,499,475)Redemption of nvestments 32,951,300 - - - - - 32,951,300Purchase of investments, net of change in fair value (39,888,684) - - - - - (39,888,684)Investment income 3,126,872 464,834 388,230 48,322 333,390 - 4,361,648Net cash (used in) provided by investing activities (5,309,987) 464,834 388,230 48,322 333,390 - (4,075,211 )

(Decrease) increase in cash and cash equivalents (3,564,663) 314,777 - - - - (3,249,886)Cash and cash equivalents, beginning of year 13,098,375 819,379 - - - - 13,917,754Cash and cash equivalents, end of year $ 9,533,712 $ 1,134,156 $ - $ - $ - $ - $10,667,868

See Independent Auditors' Report.- 31


37/54

- - - - - - - - - - - - -he Florida Bar and SubsidiariesConsolidating Statement of Cash Flows(Continued)Year ended June 30, 2007

GeneralFund

Bar CenterFund

Clients'Security

FundCertification

FundSections

FundEliminating

EntriesTotal

Al l FundsReconciliation of operating income to net cash provided

by (used in) operating activities:Operating income (loss)Adjustments to reconcile operating income (loss) to

net cash provided by (used in) operating activitiesDepreciation and amortizationTransfers (to) from other funds(Increase) decrease in:

Accounts receivable, netDue from other fundsPrepaid expense and other assets

Increase (decrease) in:Accounts payableClaims payableAccrued expensesSecurity depositsDue to other fundsDeferred revenues

Net cash provided by (used in) operating activities

$ 2,326,329

-(2,487,068)

(172,564)-144,358310,574-365,945-

1,554,563(296,813)

$ 1,745,324

$ (235,146)

699,110944,432

-(54,831 )-(24,180)--2,105--

$ 1,331,490

$ (1,079,736)

-1,542,636

-(425,867)-

-(425,263)----

$ (388,230)

$ 143,652

-

-(191,974)-

------$ (48,322)

$ 662,007

-

-(995,397)-

------$ (333,390)

$ -

-

4291,668,069-(113,935)---(1,554,563)-

$ -

$ 1,817,106

699,110

(172,135)144,358172,459

(425,263)365,945

2,105(296,813)

$ 2,306,872

Non-cash investing, capital and financing activities:Change in the fair value of investmentsLoss on disposal of assets

$ 1,195,805$ - $ -$ 14,294 $$ -- $$ -- $$ -- $$ -- $ 1,195,805$ 14,294

Supplemental information:Cash paid for interest $ - $ 148,325 $ - $ - $ - $ - $ 148,325



38/54

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

VarianceFavorable

Year ended June 30, 2007 Actual BUdgeted (U nfavorable)Revenues - budgetary basis

Annual feesInvestmentsAuthorized house counselLawyer regulationProfessional enhancement programUnlicensed practice of lawEthicsLawyer advertisingProfessionalismMultijurisdictional practiceMeetings and conventionsAddressing servicesContinuing legal education programContinuing legal education ruleCourse approval centerPublic service programsForeign legal consultantsLaw office management advisory servicesMember benefits programLegal publicationsSection administrationYoung lawyers divisionCommitttee expensesPublic informationJournalNewsDirectoryResearch, planning and evaluationBuilding and groundsOther revenueG. Kirk Haas Fund (restricted revenue)

Total revenues - bUdgetary basis

$ 20,896,6083,110,215295,703698,438113,100

8,225424,072

36,139447,385500,772208,628

3,594,351722,902121,087749,346

12,755178,901585,644924,059732,770575,425122,113490,446

1,600,110224,798

64,95114,562

9,21637,462,721

$ 20,726,323 $ 170,285850,000 2,260,215210,800 84,903702,391 (3,953)

73,250 39,8505,045 3,180

50 (50)425,620 (1,548)

37,173 (1,034)500,000 (52,615)486,125 14,647210,000 (1 ,372)

3,189,705 404,646528,284 194,618110,579 10,508954,125 (204,779)

11,075 1,680176,007 2,894592,966 (7,322)

1,080,030 (155,971 )815,696 (82,926)633,097 (57,672)5,000 (5,000)100,509 21,604457,290 33,156

1,419,747 180,363248,033 (23,235)

57,105 7,84612,500 2,062

3,500 5,71634,622,025 2,840,696

See Independent Auditors' Report.- 33-


39/54


(Continued)VarianceFavorable

Year ended June 30, 2007 Actual BUdgeted (Unfavorable)Expenses - budgetary basisGeneral administrationStaff and office expense 653,685 848,984 195,299Travel 54,158 58,426 4,268Internal service and administration 2,509 2,349 (160)Member service projectPost employment health 1,228,899 1,203,784 (25,115)Other operating expenses 9,557 18,174 8,617Total general administration 1,948,808 2,131,717 182,909Board and officerStaff and office expense 252,035 297,715 45,680Travel 25,178 24,696 (482)

Internal service and administration 12,146 12,791 645Other operating expenses 340,576 366,766 26,190Total board and officer 629,935 701,968 72,033LegislationStaff and office expense 116,085 116,663 578Contract services 239,173 314,600 75,427Travel 2,943 6,692 3,749Internal service and administration 47,500 57,338 9,838

Other operating expenses 1,294 7,730 6,436Total legislation 406,995 503,023 96,028Authorized house counsel

Staff and office expense 11,373 9,593 (1,780)Internal service and administration 11,414 6,782 (4,632)Other operating expenses 1,298 870 (428)Total authorized house counsel 24,085 17,245 (6,840)General counselStaff and office expense 196,681 207,233 10,552Contract services 551,424 350,536 (200,888)

Travel 2,300 5,147 2,847Internal service and administration 20,288 15,850 (4,438)Other operating expenses 164 1,394 1,230Total general counsel 770,857 580,160 (190,697)Division director - legalStaff and office expense (16,355) (24,242) (7,887)Travel 15,798 23,518 7,720Internal service and administration 496 724 228Other operating expenses 64 (64)Total division director - legal 3 (3)



40/54



Year ended June 30, 2007 Actual Budgeted (Unfavorable)Expenses - budgetary basisAttorney Consumer Assistance Program

Staff and office expense 820,252 956,203 135,951Travel 157 318 161Internal service and administration 82,961 108,030 25,069Other operating expenses 7,054 10,671 3,617

Total lawyer'regulationLawyer regulation

Staff and office expenseTravelInternal service and administrationOther operating expenses

Total lawyer regulation

910,424

8,467,557126,784

1,233,289346,377

10,174,007

1,075,222

8,594,121187,937

1,331,698364,575

10,478,331

164,798

126,56461,15398,40918,198

304,324

Total professional enhancement program

Professional enhancement programStaff and office expenseTravelInternal service and administrationOther operating expenses

26,7377,3873,6031,815

39,542

33,11812,518

5,8654,667

56,168

6,3815,1312,2622,852

16,626Division director - ethics, UPL and professionalism

Staff and office expenseTravelLess cost dist.

24,3809,059

33(6,798)6,638

140(31,178)(2,421 )

107

Total division director - ethics, UPL and professionalismInternal service and administrationOther operating expenses

(33,500)28 20

33,500(8)

Unlicensed practice of lawStaff and office expenseTravelInternal service and administrationOther operating expenses

1,151,15834,340

146,26136,285

1,191,63141,547

173,32755,447

40,4737,207

27,06619,162

Total unlicensed practice of law

Total lawyer assistance program/substance abuse

Lawyer assistance program/substance abuseStaff and office expenseInternal service and administrationOther operating expenses

11,73944,591

433,000489,330

1,368,044

487,234

5,30048,934

433,000

1,461,952

(2,096)

(6,439)4,343

93,908



41/54



Year ended June 30, 2007 Actual Budgeted (U nfavorable)Expenses - budgetary basisAdvertising task force

Staff and office expense 10,396 5,000 (5,396)Travel 610 (610)Internal service and administration 1,202 634 (568)Other operating expenses 676 676

Total advertising task force 12,208 6,310 (5,898)Ethics

Staff and office expense 550,009 550,659 650Travel 4,366 4,004 (362)Internal service and administrat ion 56,482 62,805 6,323Other operating expenses 6,677 5,493 (1,184)

Total ethics 617,534 622,961 5,427Lawyer advertising

Staff and office expense 607,881 616,766 8,885Travel 5,462 8,125 2,663Internal service and administration 62,983 70,777 7,794Other operating expenses 8,963 7,952 (1,011)

Total lawyer advertising 685,289 703,620 18,331Ethics/advertising staff pool

Staff and office expense 4 (4)Total ethics/advertsising pool 4 (4)

ProfessionalismStaff and office expense 356,162 380,919 24,757Contract services 2,080 4,580 2,500Travel 16,373 17,906 1,533Internal service and administration 51,931 62,395 10,464Other operating expenses 17,395 29,154 11,759

Total professionalism 443,941 494,954 51,013Multijurisdictional practice

Staff and office expense 19,163 19,635 472Internal service and administration 2,101 2,846 745Other operating expenses 79 1,800 1,721

Total multijurisdictional practice 21,343 24,281 2,938Florida Registered Paralegal

Staff and office expense 11,688 5,800 (5,888)Travel 3,248 3,248Internal service and administrat ion 43,867 45,791 1,924Other operating expenses 2,025 2,025

Total professionalism 55,555 56,864 1,309



42/54



Year ended June 30, 2007 Actual Budgeted (U nfavorable)Expenses - budgetary basisShipping and receivingStaff and office expense 125,684 154,043 28,359

Internal service and administration 2,427 (2,427)Other operating expenses 21 17 (4)Less cost distribution (128,132) (154,060) (25,928)

Total shipping and receivingBuilding and grounds

Staff and office expense 1,147,565 1,230,668 83,103Travel 2,812 3,400 588Internal service and administration 522 792 270Other operating expenses 14 2 (12)Less cost distribution (1,085,934) (1,177,757) (91,823)

Total building and grounds 64,979 57,105 (7,874)Meetings and conventions

Staff and office expense 312,949 303,835 (9,114)Contract services 600 600Travel 16,797 24,741 7,944Internal service and administrat ion 120,177 123,606 3,429Other operating expenses 377,056 367,192 (9,864)Less cost distribution (21,452) (26,569) (5,117)

Total meetings and conventions 805,527 793,405 (12,122)Information systems

Staff and office expense 2,637,330 2,815,861 178,531Contract services 241,058 308,648 67,590Travel 6,692 9,929 3,237Internal service and administration 374,205 405,293 31,088Other operating expenses 1,349 10,110 8,761Less cost distribution (3,260,639) (3,549,841 ) (289,202)

Total information systems (5) 5Human resource management

Staff and office expense 201,612 210,506 8,894Travel 1,454 1,454Internal service and administrat ion 33,493 25,242 (8,251 )Other operating expenses 28,195 28,350 155Less cost distribution (264,754) (265,552) (798)

Total human resource managementDivision director - programs

Staff and office expense (3,302) (6,118) (2,816)Travel 3,139 5,726 2,587Internal service and administrat ion 139 163 24Other operating expenses 31 229 198

Total division director - programs 7 (7)

See Independent Auditors' Report.- 37-


43/54



Year ended June 30, 2007 Actual Budgeted (U nfavorable)Expenses - budgetary basisContinuing legal education programs

Staff and office expense 790,596 771,097 (19,499)Travel 59,500 53,578 (5,922)Internal service and administration 1,038,400 1,055,842 17,442Other operating expenses 1,571,957 1,383,122 (188,835)

Total continuing legal education programs 3,460,453 3,263,639 (196,814)Continuing legal education rule

Staff and office expense 184,719 173,018 (11,701 )Travel 753 1,235 482Internal service and administration 164,985 157,564 (7,421 )Other operating expenses 33,914 32,527 (1,387)

Total continuing legal education rule 384,371 364,344 (20,027)Course approval center

Staff and office expense 105,982 99,025 (6,957)Internal service and administration 11,032 11,385 353Other operating expenses 4,072 2,950 (1,122)

Total course approval center 121,086 113,360 (7,726)Legal education and specialization pool

Staff and office expense (4) 4Internal service and administration 2 (2)

Total legal education and specialization pool (2) 2Professional development pool

Staff and office expense (1,908) (49,377) (47,469)Travel 145 (145)Internal service and administration 264 34 (230)Other operating expenses 1,492 764 (728)

Total professional development pool (7) (48,579) (48,572)Public service programs

Staff and office expense 333,059 474,715 141,656Travel 3,245 3,118 (127)Internal service and administration 64,237 90,205 25,968Other operating expenses 186,986 272,461 85,475

Total public service programs 587,527 840,499 252,972Foreign legal consultants

Staff and office expense 5,883 7,300 1,417Internal service and administration 590 912 322Other operating expenses 374 374

Total foreign legal consultants 6,473 8,586 2,113



44/54

22



Year ended June 30, 2007 Actual Budgeted (Unfavorable)Expenses - budgetary basisPrint shop

Staff and office expenseInternal service and administrationOther operating expensesLess cost distribution

421,87379,635

(501,503)

449,75822

102,790(552,570)

27,88523,155

(51,067)Total print shop 5 (5)

Law office management advisory servicesStaff and office expense 324,076 327,403 3,327Travel 48,772 45,590 (3,182)Internal service and administration 39,937 45,959 6,022Other operating expenses 9,827 16,750 6,923

Total law office management advisory serv ices 422,612 435,702 13,090Member benefits program

Staff and office expense 63,232 63,739 507Internal service and administration 23,320 28,105 4,785Other operating expenses 168,529 187,371 18,842

Total member benefits program 255,081 279,215 24,134Legal publications

Staff and office expense 1,015,798 1,055,189 39,391Travel 15,111 17,710 2,599Internal service and administration 114,516 131,884 17,368Other operating expenses 50,291 58,310 8,019

Total legal publications 1,195,716 1,263,093 67,377Section administration

Staff and office expense 524,695 589,970 65,275Travel 2,488 2,052 (436)Internal service and administration 377,453 429,119 51,666Other operating expenses 5,079 4,136 (943)

Total section administration 909,715 1,025,277 115,562Young lawyers division

Staff and office expense 43,978 31,000 (12,978)Travel 9,367 6,361 (3,006)Internal service and administration 61,715 56,111 (5,604)Other operating expenses 443,626 421,125 (22,501 )Total young lawyers division 558,686 514,597 (44,089)



45/54


(Continued)

Year ended June 30, 2007 Actual BudgetedVarianceFavorable

(Unfavorable)Expenses - budgetary basisCommittee


138,11216,24844,90962,900

138,19219,15848,06775,431

802,9103,158

12,531Total committee

Public information262,169 280,848 18,679

Staff and office expense 667,046 668,754 1,708Contract servicesTravelInternal service and administrationOther operating expensesTotal public information 1,464,754

3,18245,971

576,008172,547 1,413,561

7,79247,760

518,224171,031 (51,193)

4,6101,789

(57,784)(1,516)

Office systemsStaff and office expenseInternal service and administrationOther operating expensesLess cost distribution

Total office systems (4) 4"Journal" - "News" staff pool


Total "Journal" - "News" staff pool 2 (2)"Journal"

Staff and office expenseTravelInternal service and administrationOther operating expensesLess cost distribution

424,33650151(424,892)

(49,520)2,564

30,84316,115

459,016834137

(459,987)

(41,234)3,482

25,60412,148

34,68033386

(35,095)

8,286918

(5,239)(3,967)

253,8851,907

74,307491,411

(6,525)

267,4053,334

84,047484,753

(4,312)

13,5201,4279,740

(6,658)2,213

Total "Journal" 814,985 835,227 20,242"News"

Staff and office expenseTravelInternal service and administrationOther operating expensesLess cost distribution

Total "News"

482,5239,377

83,4561,008,517(151,168)

1,432,705

469,42211,737

145,2021,014,447(195,366)

1,445,442

(13,101)2,360

61,746,5,930

(44,198)12,737



46/54



Year ended June 30, 2007 Actual Budgeted (Unfavorable)Expenses - budgetary basisDirectory

Staff and office expense 47,088 67,029 19,941Internal service and administration 30,958 39,836 8,878Other operating expenses 261,685 290,738 29,053Less cost distribution (3,921 ) (3,921 )

Total Directory 339,731 393,682 53,951Finance and records

Staff and office expense 1,552,168 1,558,332 6,164Contract services 57,514 60,250 2,736Travel 9,434 7,307 (2,127)Internal service and administration 594,650 609,184 14,534Other operating expenses 202,321 229,289 26,968Less cost distribution (1,706,964 ) (1 ,678,057) 28,907

Total finance and records 709,123 786,305 77,182Research, planning and evaluationStaff and office expense 137,720 137,394 (326)Contract services 7,750 8,574 824Travel 4,691 4,629 (62)Internal service and administration 1,783 423 (1,360)Other operating expenses 8,385 10,981 2,596Total research, planning and evaluation 160,329 162,001 1,672Division directors - administrationStaff and office expense 134,985 199,265 64,280Travel 15 590 575Internal service and administration 153 555 402Other operating expenses 270 194 (76)Less cost distribution (135,423) (200,604) (65,181 )Total division directors - administrationG. Kirk Haas Fund (restricted fund) 3,000 2,000 (1,000)

Total expenses 32,556,922 33,631,319 1,074,397Excess of revenues over expenses - bUdgetary basis $ 4,905,799 $ 990,706 $ 3,915,093



47/54

The Florida Bar and SubsidiariesGeneral Fund Reconciliation of Revenues and Expenses on aBudgetary Basis to Totals Per the Consolidating Schedule of

Statement of Revenues, Expenses and Changes in Net AssetsExcess ofRevenues

Operating Over(Under)Year ended June 30, 2007 Revenues Expenses Exp

Download - 2007-2006 June 30 The Florida Bar Financial Statements

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