2012-2011 June 30 The Florida Bar Financial Statements

8/14/2019 2012-2011 June 30 The Florida Bar Financial Statements

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The Florida Bar and SubsidiariesFinancial Statements andSupplemental Information

une 30, 2012 and 2011


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The Florida Bar and SubsidiariesTable of ContentsJune 30, 2012 and 2011Independent Auditors Report 1 2Management s Discussion and Analysis 3 7Financial 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 - 28

Supplementary InformationConsolidating Statement of Net Assets as of June 30,2012. 29 - 30Consolidating Statement of Revenues, Expenses and Changesin Net Assets for the year ended June 30,2012 31Consolidating Statement of Cash Flows for the year endedJune 30 2012. 32 - 33General Fund Schedule of Budgeted and Actual Revenues and Expensesfor the year ended June 30 2012. 34 - 42General Fund Reconciliation of Revenues and Expenses on a Budgetary Basis toTotals Per the Consolidating Statement of Revenues, Expensesand Changes in Net Assets for the year ended June 30 2012. 43Clients Security Fund Schedule of Budgeted and Actual Revenues andExpenses for the year ended June 30 2012. 44Certification Fund Schedule of Budgeted and Actual Revenues and Expensesfor the year ended June 30 2012. 45Sections Fund Schedule of Budgeted and Actual Revenues and Expenses for theyear ended June 30,2012. 46 - 47

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 48 -49


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Can Rigplrlngram LL1713 Mahan DriveTallahassee L 32308850) 8788177t8SO 8782344 (fax)www cricpa com

Independent Auditors Report

Board 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, 2012 and 2011, which comprise The Florida Bars 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 in theUnited States of America and the standards applicable to financial audits contained inGovernment Auditing Standards issued by the Comptroller General of the United States.Those standards require that we plan and perform the audit to obtain reasonableassurance about whether the financial statements are free of material misstatement. Anaudit includes examining, on a test basis, evidence supporting the amounts anddisclosures in the financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well as evaluating theoverall financial statement presentation. We believe that our audits provide a reasonablebasis for our opinion.In our opinion, the consolidated financial statements referred to above present fairly, in allmaterial respects, the financial position of the business-type activities of The Florida Barand Subsidiaries as of June 30, 2012 and 2011 and the changes in financial position andcash flows thereof for the years then ended in conformity with accounting principlesgenerally accepted in the United States of America.In accordance with Government Auditing Standards we have also issued our report datedOctober 1, 2012, on our consideration of The Florida Bar and Subsidiaries internal controlover financial reporting and on our tests of its compliance with certain provisions of laws,regulations, contracts, and grant agreements and other matters. The purpose of thatreport is to describe the scope of our testing of internal control over financial reporting andcompliance and the results of that testing, and not to provide an opinion on the internalcontrol over financial reporting or on compliance. That report is an integral part of an auditperformed in accordance with Government Auditing Standards and should be consideredin assessing the results of our audit.


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Board of GovernorsThe Florida BarPage 2

Accounting principles generally accepted in the United States of America require that themanagement s discussion and analysis on pages 3 through 7 be 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 financial statements in anappropriate 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 o America, which consisted of inquiries o managementabout the methods of preparing the information and comparing the information for consistencywith management s responses to our inquiries, the basic financial statements, and otherknowledge we obtained during our audit of the basic financial statements. We do not express anopinion or provide any assurance on the information because the limited procedures do notprovide us with sufficient evidence to express an opinion or provide any assurance.Our audits were conducted 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 is the responsibility of management and wasderived from and relates directly to the underlying accounting and other records used to preparethe financial statements. The information has been subjected to the auditing proceduresapplied in the audit of the basic consolidated financial statements and certain additionalprocedures, including comparing and reconciling such information directly to the underlyingaccounting and other records used to prepare the financial statements or to the financialstatements themselves, and other additional procedures in accordance with auditing standardsgenerally accepted in the United States of America. In our opinion, the information is fairlystated in all material respects in relation to the financial statements as a whole.Wv\ ~ J ~ . t .October 1 2012


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Management s Discussion and nalysis


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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 93,000 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 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. 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 30,2012 and 2011.

Financial ighlights The Florida Bar's total net assets increased approximately $1.5 million (or 3.1 oJ over the courseof FY12 operations. This was primarily generated from continued internal development ofsoftware programs which reduced salary and benefit expenses by including them in the costs ofcapital assets. For FY11, total net assets increased approximately $7.0 million (or 16.6%) whichwas a combination of a favorable investment return of almost $6.0 million as well as developmentof internal software.

Total operating revenues for FY12 were virtually unchanged from FY11 while total operatingexpenses decreased approximately $600,000 (or 1.4%). In comparison, total operating revenuesand expenses grew by approximately 2.5 in FY11. Despite increasing growth in membershipand thus, annual fees, The Florida Bar has continued to see drops in advertising revenue andcontinuing legal education programs. The Florida Bar responded to the drops in revenue byseeking to utilize technology or outsourcing to deliver its products and services more efficientlyand by delaying hiring of vacant positions or not replacing employees as they retired. The resources available to spend for the General Fund of The Florida Bar were approximately$1.9 million less than budgeted for FY12 and were approximately $2.8 million more thanbudgeted for FY11. These results were primarily attributable to the gains and losses incurred byThe Florida Bar's investment portfolio which experienced a loss for FY12 and a significant gain inFY11, as well as the weak economy. 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 as the statewide regulator 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.

See the Independent Auditors' Report.-


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The Florida Bar and SubsidiariesManagement's Discussion and AnalysisThe 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. The notes (beginning on page12) are an integral part in providing a full understanding of The Florida Bar's financial statements.

Summary o Operations and Condensed Consolidated Financial Information

CONDENSED CONSOLIDATED STATEMENTS OF NET ASSETS

% Change 0 0 ChangeJune 30 2012 2011 2010 2011 - 2012 2010 - 2011Assets

Current and other assets 61,931,808 61,520,549 56,571,350 0.70/0 8.7%Capital assets, net 10,411,528 9,555,406 7,564,589 9.00/0 26.30/0

Total assets 72,343,336 71,075,955 64,135,939 1.80/0 10.80/0Liabilities

Current liabilities 16,452,056 16,975,110 15,599,098 -3.11 0 8.80/0Other liabilities 2,522,588 2,317,538 4,108,184 8.80/0 -43.6%

Total liabilities 18,974,644 19,292,648 19,707,282 -1.61 0 -2.1%Net assets

Invested in capital assets,net of related deb t 10,411,528 9,555,406 7,564,589 9.01'0 26.30/0Restricted for scholarships 46,334 45,921 38,682 0.90/0 18.7Unrestricted 42,910,830 42,181,980 36,825,386 1.70/0 14.5%

Total net assets 53,368,692 51,783,307 44,428,657 3.10/0 16.6%Total liabilities and net assets 72,343,336 71,075,955 64,135,939 1.80/0 10.80/0

The Florida Bar's cash and investments were virtually unchanged from FY11 to FY12 despite aloss on the investment portfolio for FY12 of 669,183. Cash and investments at June 30, 2012 and2011 were approximately 60.4 million. In comparison, the gain on the investment portfolio ofapproximately 6.0 million in FY11 had a significant impact on cash and investments whichincreased from 53.6 million to 60.4 million from FY10 to FY11. The increase in capital assetsfrom June 30 2010 to June 30 2012 has been a function of the internal development of softwareprograms as well as a capital improvement program to remodel and refurbish The Florida Bar'sheadquarters building.The primary liability of The Florida Bar is deferred revenue resulting from advance collection ofmember fees and prepayments for Continuing Legal Education registrations. Deferred revenue

See the Independent Auditors' Report.- 4-


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The Florida Bar and SubsidiariesManagement's Discussion and Analysisincreased from 10.9 million at June 30, 2010 to 11.3 million at June 30, 2011 then dropped backto 11.2 million as o June 30, 2012 primarily due to the addition o the Florida RegisteredParalegal Program that began in FY08 but allowed paralegals to apply without a renewal fee untilFY 2011. FY 2011 was the first year for all FRP's to be renewing at once. Other liabilities in 2010included deferred revenue for a Client Security Fund court ordered recovery for 1.6 million. Nosuch deferred recoveries were recorded for FY11 and FY12.For more detailed information, see the accompanying Consolidated Statements o Net Assets.

CONDENSED CONSOLIDATED STATEMENTS OF REVENUES, EXPENSESAND CHANGES IN NET ASSETS

0 Change % Changeune 30 2012 2011 2010 2011 - 2012 2010 - 2011

Operating revenues 42,692,524 42,477,814 41,356,998 0 50/0 2.7%Operating expenses (40,407,950) (40,982,582) (40,021,048) -1.4% 2.4%Net operating income 2,284,574 1,495,232 1,335,950 52.8% 11.9%

Non-operating revenues 5,917,596 3,925,155 -100.0% 50.8kNon-operating expenses (699,189) (58,178) (80,806) 1101.8% -28.00k

Net non-operating revenues (699,189) 5,859,418 3,844,349 -111.9% 52.4%Change in net assets 1,585,385 7,354,650 5,180,299 -78.4% 42.0%Net assets, beginning 51,783,307 44,428,657 39,248,358 16 60/0 13.2kNet assets, ending 53,368,692 51,783,307 44,428,657 3.1% 16.6%

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. Nevertheless,Continuing Education Program revenue has continued to decline as more competition has beenexperienced from outside vendors as well as the increased use o less expensive internet andtelephonic options by members. Additionally, advertising revenue received for ads in The FloridaBar Journal and News have continued to decline as a result o the weak economy.Operating expenses were kept in line with revenue growth in FY11 as compared to FY10 andactually dropped more than revenue for FY12. This is attributable to various steps taken by TheFlorida Bar including (1) efforts to transition away from print and mail to electronic communicationand delivery o Continuing Education materials and other communications to members, (2)outsourcing o functions that could be done by outside vendors at less cost than continuing to dothose functions internally, and (3) delaying hiring o replacements as employees retired or left theemploy of The Florida Bar. Expenses were also reduced in all three years by the capitalization ofinternal development o software.

See the Independent Auditors' Report.-


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The Florida Bar and SubsidiariesManagement's Discussion and AnalysisThe increase in net assets for FY11 and FY10 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 Assets.Budgetary Highlights For the years ended June 30, 2012 and 2011, 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 30,2012 and 2011 approved by the Florida Supreme Court, planned on an increase in net assets of66,936 and 340,381, respectively. After Board of Governor amendments, the planned decreasebecame ( 686,361) and ( 1 ,128,194), respectively.For FY12, significant budget amendments included an additional contribution to the Client SecurityFund, a public education program to help 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.For FY11, significant budget amendments included an additional contribution to the Client SecurityFund and to the Building Fund, increased costs for the lawyer referral services when the MiamiDade area was added back to The Florida Bar's operations, costs for a new lockbox vendor, andan increase in costs for the Florida Bar elections.Included in the supplemental information is an actual to budget comparison for each department forFY12.

CAPITAL ASSETSThe Florida Bar invested the following in Capital Assets:

0 0 Change 0 0 ChangeJune 30 2012 2011 2010 2011 - 2012 2010 - 2011LandBuilding and improvementsLandscaping and parkingEquipment and furnishingsSoftwareSoftware in developmentConstruction in progressTotal, prior to depreciation andamortization

Accumulated depreciationand amortization

Net capital assets

1,306,69011,352,944

120,3184,802,2722,433,7131,113,841

18,615

21,148,393

(10,736,865)10,411,528

1,306,69010,728,573

120,3184,684,0351,680,573

817,69214,683

19,352,564

(9,797,158)9,555,406

1,306,6909,615,208

120,3184,562,3681,231,757

142,23760,763

17,039,341

(9,474,752)7,564,589

0.00/05.80/00.00/02.50/0

44.80/036.20/026.8%

9.30/0

9.6%9.00/0

0.00/011.6%

0.00/02.70/0

36.40/0474.9k-75.80/0

13.6k

3.40/026.30/0

See the Independent Auditors' Report.- -


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The Florida Bar and SubsidiariesManagement s Discussion and AnalysisDuring FY10, The Florida Bar began a significant refurbishment o the headquarters building inTallahassee. The remodeling had mostly been completed as o the end o FY12 and wasfunded through available cash. Additions to software and software in development began in2010 as a result of a new accounting standard that required the cost o internally developedsoftware to e capitalized. Prior to that time, all software costs were expensed as incurred. TheFlorida Bar will continue to add to these costs as new programs are created or significantlyupdated. Presently, The Florida Bar has no plans to significantly alter its investment in capitalassets other than to continue to add to costs o developed software.

Future Financial PlanThe Florida Bar was created by the Supreme Court of Florida to assist the Supreme Court inregulating the practice o law in Florida. The Florida Bar is primarily funded through requiredannual fee payments by lawyers, sales o continuing education programs to lawyers, and otherfees for regulation of attorneys or sales of legal related products and services. There is no planto materially change these revenue streams for the next two years. Accordingly, there are nopresent plans to materially increase the scope or nature of the services provided to the citizensof 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 o Net Assets

une 3D 2012 2011AssetsCurrent assetsCash and cash equivalents 17,958,410 14,502,362Short-term investments 42,469,481 45,930,388Accounts receivable, net 512,481 494,844Prepaid expenses and other assets 991,436 592,955Total current assets 61,931,808 61,520,549Capital assets, netLand 1,306,690 1,306,690Buildings and improvements 11,352,944 10,728,573Landscaping and parking 120,318 120,318Equipment and furnishings 4,802,272 4,684,035Software 2,433,713 1,680,573Software development n progress 1,113,841 817,692Construction n progress 18,615 14,683Accumulated depreciation (10,736,865) (9,797,158)Total capital assets, net 10,411,528 9,555,406Total assets 72,343,336 71,075,955Liabilities and Net AssetsCurrent liabilitiesAccounts payable 1,770,767 1,745,073Client Security Fund claims payable 2,242,075 2,568,189Accrued expenses 1,176,897 1,237,482Deferred revenues 11,213,395 11,375,450

Security deposits 48,922 48,916Total current liabilities 16,452,056 16,975,110Non-current liabilitiesCompensated absences payable 2,522,588 2,317,538

Total non-current liabilities 2,522,588 2,317,538Total liabilities 18,974,644 19,292,648

Net assetsInvested n capital assets, net o related debt 10,411,528 9,555,406Restricted or scholarships 46,334 45,921Unrestricted 42,910,830 42,181,980Total net assets 53,368,692 51,783,307Total liabilities and net assets 72,343,336 71,075,955

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 Assets

Years en e une 3D 2012 2011Operating revenuesAnnual fees 23,754,161 23,094,112Other fees from members 6,269,655 6,253,705Sales of products and services 8,884,912 9,512,668Advertising 1,599,039 1,730,692Young lawyers 874,708 903,972Grants and other 1,310,049 982,665Total operating revenues 42,692,524 42,477,814Operating expensesRegulation of the practice of law 16,495,825 16,534,580Cost of products and services provided to members 10,111,082 10,218,814

Unauthorized practice of law 1,506,205 1,440,549Public service programs 3,282,089 3,609,484Communications with members and the public 3,955,230 3,589,399Administration 1,991,810 2,407,751Legislation 437,330 720,736Young lawyers 798,120 685,739Depreciation and amortization 1,029,784 931,560Other programs and costs 800,475 843,970Total operating expenses 40,407,950 40,982,582Operating income 2,284,574 1,495,232Non-operating revenues expenses)

Investment earnings loss) (669,183) 5,917,596Loss on disposal of capital assets (30,006) 58,178)Total non-operating revenues expenses) (699,189) 5,859,418Change in net assets 1,585,385 7,354,650Total net assets, beginning of year 51,783,307 44,428,657Total net assets, end of year 53,368,692 51,783,307

See accompanying notes to the consolidated financial statements.- -


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The Florida Bar and SubsidiariesConsolidated Statements of Cash Flows

2011ears ended une 30 2012Cash flows from operating activities:Receipts from members, customers and other sources 46,653,755 43,098,254Payments to employees, suppliers and other vendors (44,077,708) (39,230,201 )Net cash provided by operating activities 2,576,047 3,868,053Cash flows from capital and related financing activities:ACquisition of capital assets (1,911,723) (2,976,820)Net cash (used in) capital and related financing activities (1,911,723) (2,976,820)Cash flows from investing activities:Redemption of investments 23,175,427 29,550,168Purchase of investments (21,226,436) (35,476,755)Investment income, net 842,733 2,997,801

et cash provided by (used in) investing activities 2,791,724 (2,928,786)Increase (decrease) in cash and cash equivalents: 3,456,048 (2,037,553)

Cash and cash equivalents, beginning of year 14,502,362 16,539,915Cash and cash equivalents, end of year 17,958,410 14,502,362

See accompanying notes to the consolidated financial statements.- 10


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

2011ears ended June 30 2012Reconciliation of operating income to net cashprovided by operating activities:Operating income $ 2,284,574 $ 1,495,232Adjustments to reconcile operating income to net cashprovided by operating activities:Depreciation and amortization 1,029,784 931,560(Increase) decrease in:Accounts receivable, net (17,637) 179,526Prepaid expenses and other assets (398,481) (16,622)CSF recovery receivable 1,692,991

Increase (decrease) in:Accounts payable 21,505Claims payable (326,114)Accrued expenses (60,585)Deferred revenues (162,055)Deferred revenues - CSF recoverySecurity deposits 6Com ensated absenses a able 205,050Net cash provided y operating activities 2,576,047 $Non-cash investing, capital, and financing acitivitiesChange in the fair value of investments $ (2,046,563) $ 2,294,078

Loss on disposal of assets $ (30,006) $ (58,178)

See accompanying notes to the consolidated financial statements.-


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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 ntityThe Florida Bar is a unified state bar organized as an arm of the Supreme Court of the State ofFlorida. It is considered a govemmental 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 - and Management's Discussion and nalysis - 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 StatementsNOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

asis 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 in accordance with accounting principles generally accepted in 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 in the Consolidated Statements of Net Assets.Cash and 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 in 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 5 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 n the Consolidated Statements of Revenues, Expenses and Changes n NetAssets, in 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 eachFlorida Bar member who is in good-standing (including inactive members). Claims payablerepresent amounts that have been approved for payment from the Fund.Deferred RevenuesDeferred revenues consist primarily of membership fees collected n 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)

llocation of ExpensesThe 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 ofConsolidationThe 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 ssetsNet 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 3 - CASH AND CASH EQUIVALENTSCash and cash equivalents are subject to custodial credit risk. Custodial credit risk is the risk thatn 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 operating cash balance heldn demand deposit accounts was $8,136,446 and additional cash and money market funds was$9,821,964 at June 30,2012. Operating cash in the amount of $7,020,997 was insured by theFederal Deposit Insurance Corporation (FDIC) as of June 30, 2012 and $1,115,449 was uninsured.The additional cash and money market funds are held at a financial institution insured by theSecurities Investor Protection Corporation (SIPC). The SIPC provides up to $250,000 in coveragefor uninvested cash balances as of June 30, 2012.

NOTE 4 - INVESTMENTSnvestment Objectives nd Policies

Investments 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-termportfolio possesses an intermediate to long-term horizon (five to seven years) and within thishorizon, the primary objectives are to provide long-term growth of capital and income. Thesecondary objectives are high current income and liquidity.

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The Florida Bar and SubsidiariesNotes to Consolidated Financial StatementsNOTE 4 - INVESTMENTS CONTINUED)Investment Objectives nd PoliciesThe 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, 2012:

Short Term Target RepresentativeAsset Classes Minimum Mix Maximum Actual Index

Short-Term Fixed income 35.00/0 50.0 65.00/0 60.0 Barday's Capital Intermediate Government/Credit Bond IndexCash and Equivalents 35.00/0 50.00/0 65.0 40.00/0 Citigroup U.S. gO-Day Treasury Bills Index

Long Term Target RepresentativeAsset Classes Minimum Mix Maximum Actual IndexU.S. Large Cap Equity 9.0% 14.0% 19.0% 16.0% Standard 500 IndexU.S. Mid Cap Equity 0.0% 2.0% 7.0% 2.0% RusseH Mid Cap IndexU.S. Small Cap Equity 0.0% 2.0% 7.0% 2.0% RusseH 2000 IndexInternational Equity 10.0% 15.0% 20.0% 10.0% MSCI EAFE IndexInri Small Cap Equity 0.0% 2.0% 7.0% 2.0% MSCI EAFE Small Cap IndexEmerging Markets Equity O ook 5.0% 10.0% 10.0% MSCI Emerging Markets ndexCommodtties 0.0% 3.0% 8.0% 2.0% 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% 3.0% 8.0% 3.0% Barclays Capital U.S. TIPS Index

Emerging Market FixedIncome 0.0% 3.0% 8.0% 3.0% JP Morgan Emerging Markets Bond IndexU.S. Fixed Income 20.3% 29.0% 37.7% 25.0% Barclay's Capital Intermediate Gov't1Credit Bond IndexU.S. High Yield FixedIncome 0.0% 4.0% 9.0% 3.0% Barclay's Capital U.S. Corporate High Yield IndexHedge Funds 0.0% 6.0% 9.0% 6.0% HFRI Conservative Index or Hedge Fund of Funds IndexManaged Futures 0.0% 4.0% 7.0% 6.0% Barclay's CTA IndexCash Equivalents 0.0% 5.0% 10.0% 7.0% Citigroup U.S. 9O-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)Interest Rate Risk Continued)As of June 30 2012, The Florida Bar's debt investments had the following maturities:

Investment Maturi ties (In Years)Less than 1

June 30 Fair Value Year 1 - 5 Years 5 10 Years Over 10 YearsUS Treasuries 2,927,340 - 853 967 1 666 289 407 084Federal Agencies 3,067,485 229 993 567 420 907 756 1,362,316Municipal Bonds 864,039 97 859 328 773 275 024 162 383Corporate Bonds & Other Fixed

Income 2,936,091 152 848 1 060 397 1 002 345 720 501Total investments 9,794,955 480 700 2 810 557 3 851 414 2,652,284

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 2012, the weighted average lifereported by the mutual fund managers for the mutual funds invested in debt instruments was3.73 to 7.02 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 updatethe committee on the downgraded investment's status.

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The Florida Bar and SubsidiariesNotes to Consolidated Financial StatementsNOTE 4 - INVESTMENTS (CONTINUED)Credit Quality Risk continued)The Florida Bar's debt investments by rating at June 30 2012 are presented below:

CorporateBonds & Mutual Funds

U.S. Federal Municipal Other Fixed DebtQuality Rating Treasuries Agencies Bonds Income Securities TotalU.S. GovernmentAgencies - 3 067 485 - 356 639 - 3 424 124Aaa 2 927 340 313 744 926 239 4 167 323

Aa1 203 773 203 773Aa2 209 851 209 851Aa3 64 033 104 806 168 839A1 106 640 106 640A 25 798 606 460 632 258A3 46 840 245 999 292 839Baa1 219 284 219 284Baa2 370 024 370 024Baa3Below InvestmentGradeUnrated 12 146 414 12 146 414

Total investments 2 927 340 3 067 485 864 039 2 936 091 12 146 414 21 941 369

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 noninvestment grade securities. Investments in mutual funds are with the understanding that theinvestment policies stated in the mutual fund's prospectus supersedes the guidelinesestablished by The Florida Bar.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 SEe-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 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 statedn the mutual fund's prospectus supersede the guidelines set forth n The Florida Bar'sinvestment policy.Concentration o Credit RiskThe Investment Policies require investments to be diversified such that there s not an undueconcentration in a single industry sector except for its Concentrated Portfolios. Investments inequity securities are subject to a maximum 5k commitment at cost and 10% weighting atmarket of the account's total market value for any individual security or single issuer.Investments n fixed income securities are subject to no more than 50 0 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. In 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 n cash and cash equivalents are limited to no more than 100 0 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, 2012, the Florida Bar's investment policy states that investments n 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 n the mutual fund's prospectus supersede the guidelines set forth n The FloridaBar's investment policy.

NOTE 5 - ACCOUNTS RECEIVABLE, NETThe following is a summary of accounts receivable, net:June 30 2012 2011Accounts receivable 537,381 519,744Allowance for doubtful accounts (24,900) (24,900)

Accounts receivable, net 512,481 494,844

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

July 1,2011 Additions Deletions Transfers June 30, 2012Capital assets not being depreciated or amortized:

LandSoftware development in progressConstruction n progress1,306,690817,69214,683

$ -968,85418,615$ - $ - 1,306,690(672,705) 1,113,841(14,683) 18,615

Total capnal assets not depreciated or amortized 2,139,065 987,469 (687,388) 2,439,146Capital assets being depreciated or amortized:Buildings and improvementsLandscaping and parkingEquipment and furnishings

SoftwareTotal capnal assets being depreciated oramortized

10,728,573120,3184,684,0351,680,573

17,213,499

609,688238,320

80,435928,443

(120,083)

(120,083)

14,683

672,705687,388

11,352,944120,318

4,802,2722,433,713

18,709,247Less accumulated depreciation or amortizationfor:

Buildings and improvementsLandscaping and parkingEquipment and furnishingsSoftware

(5,784,535)(120,318)(3,311,147)(581,158)

(406,907)(389,049)(233,828) 90,077

6,191,442)120,318)

3,610,119)814,986)

Total accumulated depreciation oramortization (9,797,158) (1,029,784) 90,077 10,736,865)Total capital assets being depreciated oramortized, net 7,416,341 (101,341) (30,006) 687,388 7,972,382Total capital assets, net $ 9,555,406 $ 886,128 $ (30,006) $ - 10,411,528Depreciation and amortization expense for the years ended June 30, 2012 and 2011 was$1,029,784 and $931,560, 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 3DAccrued vacationAccrued sick leaveTotal compensated absences

20121,439,8981,082,690$ 2,522,588 $20111,333,310984,2282,317,538

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

Accrued vacationAccrued sick leaveTotal long-term liabilities

BalanceJuly 1 2011$1,333,310984,2282,317,538

Additions$1,140,972693,1241,834,096

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, salesof publications and meeting revenues.Grants andOtherIncludes 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 awIncludes expenses incurred for Lawyer Regulation, Lawyer Advertising, Ethics, Continuing LegalEducation Rules (CLER), Membership Records and Certification.

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The Florida Bar and SubsidiariesNotes to Consolidated Financial StatementsNOTE 8 - REVENUE AND EXPENSE CLASSIFICATION (CONTINUED)Cost o f Products andServices Provided t 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.Communication with Members and the PublicIncludes the expenses of the Public Information Department and The Florida Bar Journal andNews

dministration

Includes 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 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 employed on December 31 based on aformula which was 150/0 of covered compensation for the years ended June 30 2012 and 2011,respectively, and 4.3 on covered compensation exceeding 80 of the Social Security wagebase. The employer contributions are allocated to separate participant accounts and investedby 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 04 years 404 - 5 years 600/05 - 6 years 80Greater than 6 years 100Forfeited 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 30,2012 and 2011 for the Plan years ended December 31, 2011 and 2010 and was 2,128,115and 2,236,636, 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 StatementsNOTE 1 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 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. Thecontribution requirements are established and may be amended by The Florida Bar. Currently,there 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, 2012 and 2011, The Florida Bar contributed 87,777 and 85,511,respectively, to the plan for the annual required contributions. The Florida Bar contributed anadditional 173,283 for the year ended June 30, 2012 to cover the unfunded liability calculatedat January 1, 2012.

Annual OPEB Cost and Net OPEB Obligation. The Florida Bar's annual other postemploymentbenefit (OPEB) cost (expense) is calculated based on the annual required contribution o 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 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'snet OPEB obligation to TFBRHP:

Annual required contribution 87,777Interest on net OPES obligationAdjustments to annual required contributionAnnual OPES cost (expense) 87,777Net OPES obligation - July 1, 2011Annual OPES cost (expense) for 2012 (87,777)Contributions made during FY 2012 87,777Net OPES obligation - June 30, 2012

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The Florida Bar and SubsidiariesNotes to Consolidated Financial StatementsNOTE 10 - RETIREE POSTEMPLOYMENT HEALTH BENEFITS (CONTINUED)The Florida Bar's annual OPEB cost, the percentage of annual OPEB cost contributed to theplan, and the net OPEB obligation for 2012 and the preceding three years were as follows:

Annual Percentage of Annual OPEB Cost NetOPEBFiscal Year Ended OPEB Cost Contribtued Obligation6/30/2010 $268,980 100%6/30/2011 85,5116/30/2012 87,777 100%

Funded Status and Funding Progress. As of January 1, 2012, the most recent actuarialvaluation date, the plan was 91 funded. The actuarial accrued liability for benefits wascalculated to be $1,886,227 and the actuarial value of the assets was $1,712,944, resulting in afunding 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.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.The projected unit credit actuarial cost method was used for the January 1, 2012 actuarialvaluation. The actuarial assumptions included a 7.5 investment rate of return, which is the rateof the expected long-term investment returns on plan assets and an annual healthcare costtrend rate of 9.50/0 initially, reduced by decrements to an ultimate rate of 5.0 in the year 2018and beyond. Both rates included a 3.0 inflation assumption. TFBRHP holds plan assets intrust solely to provide benefits to retirees and their beneficiaries. The UAAL is being amortizedas a level percentage of projected payroll on a closed basis. The remaining amortization periodat January 1, 2012 was 30 years.

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The Florida Bar and SubsidiariesNotes to Consolidated Financial StatementsNOTE 10 - RETIREE POSTEMPLOYMENT HEALTH BENEFITS (CONTINUED)

REQUIRED SUPPLEMENTARY INFORMATIONSchedule ofFunding ProgressActuarialAccruedLiability UAAL as aActuarial (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 9.300/01/1/08 1,288,476 1,216,209 (72,267) 105.940/0 14,296,752 -0.51 %

1/1/10 1,293,906 1,584,797 290,891 81.64% 14,557,008 2.000/01/1/12 1,712,944 1,886,227 173,283 90.810/0 14,402,420 1.200/0

NOTE 11 - LEASESThe Florida Bar is the lessee of office space under operating leases expiring in various yearsthrough the year 2018, with escalation clauses.The Florida Bar also leases office space from its wholly-owned subsidiary, The Florida BarBuilding Corporation. The intercompany rental income and rental expense have beeneliminated in consolidation.Future minimum rental payments to unrelated entities are as follows:Years ending June 30, Amount2013 714,7022014 737,0792015 760,2272016 711,0482017 623,524Thereafter 197,623Total minimum future rental payments 3,744,203

Total rental expense for the fiscal year ended June 30, 2012 and 2011 was $784,499 and721 ,505, 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 2014. Rental income for the fiscal years ended June 30, 2012 and 2011 was$286,784 and $279,790, respectively.

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The Florida Bar and SubsidiariesNotes to Consolidated Financial StatementsNOTE LEASES CONTINUED)Future minimum rental receipts are as follows:Years ending June 3020132014 Total minimum future rental receipts

Amount293,81873,894367,712

NOTE 12 - 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 13 - COMMITMENTSThe Florida Bar has contracted with various hotels or convention centers to reserve facilities,rooms, 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 aregraduated based on the time between cancellation and the scheduled arrival date of themeeting and are calculated based on a percentage of anticipated revenues by the particularhotel or convention center.The following is a schedule of estimated liquidating damages that The Florida Bar would incurshould they cancel all the contracts as of June 30, 2012:

Estimatedliquidating

Event damagesAnnual Meeting 856 264Board of Governors Meetings 105 840Mid-Year Meeting 183 932Section Meetings 867 325Continuing Legal Education Seminars 113 453Total commitment 2 126 814

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The Florida Bar and SubsidiariesNotes to Consolidated Financial StatementsNOTE 4 - DESIGNATED FUND BALANCESThe Florida Bar has designated certain net assets to be used for specific program purposes. Asof June 30 2012 and 2011, the designated net assets were 15,818,367 and 15,009,718,respectively.

NOTE 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 AssetsClients'General ar Center Security Certification Sections Eliminating Total

June 3D 2 12 Fund Fund Fund Fund Fund Entries All FundsAssetsCurrent assetsCash nd cash equivalentsShort-term investmentsAccounts receivable, netDue from other fundsPrepaid expenses other assetsTotal current assets

16,798,41442,469,481512,481-1,015,80660,796,182

1,159,996

5,505,7617476,666,504

-

6,617,399-6,617,399

-

902,879-902,879

-

5,036,043-5,036,043(18,062,082)(25,117)(18,087,199)

17,958,41042,469,481512,481991,43661,931,808

Capital assets, netLandBuildings and improvementsLandscaping nd parkingEquipment and furnishingsSoftwareSoftware development in processConstruction in progressAccumulated depreciationnd amortizationTotal capital assets, net 2,739,963(814,986)

2,433,7131,113,8417,395

7,671,565(9,921,879)

1,306,69011,352,944120,3184,802,272

11,220

-- -- -- -- 10,411,528(10,736,865)

1,306,69011,352,944120,3184,802,2722,433,7131,113,84118,615

Restricted assetsInvestment in The Florida BarBuilding CorporationTotal restricted assets 1,611,6471,611,647 -- -- -- -- (1,611,647)(1,611,647)

Total assets 65,147,792 14,338,069 6,617,399 902,879 5,036,043 72,343,336

See Independent Auditors' Report.- -


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

une 30 2012 Fund Fund Fund Fund Fund Entries All FundsLiabilities and Net Assets

Total current liabilities

Current liabilitiesAccounts payableClient security fund claims payableAccrued expenses

ue to other fundsDeferred revenuesSecurity deposits 32,182,058

3,114,111-1,225,81916,628,73311,213,395-

115,122

41,083---74,039 2,242,075

-2,242,075---

-

----

-

----

(18,087,199)

(1,384,427)(48,922)(16,628,733)(25,117)

1,770,7672,242,0751,176,897

11,213,39548,92216,452,056

Total non-current liablitiesNon-current liabilitiesCompensated absences payable 2,522,5882,522,588 2,522,5882,522,588

Total liabilities 34,704,646 115,122 2,242,075 (18,087,199) 18,974,644

Total net assets

Net assetsInvested in capital assets, net of related debtRestricted for scholarshipsUnrestrictedDesignatedUndesignatedContributed capital 30,443,146

2,739,96346,334564,38627,092,463- 14,222,947

7,671,565

4,939,7351,611,647 4,375,324

4,375,324- 902,879

902,879- 5,036,043

5,036,043- (1,611,647)(1,611,647)

10,411,52846,33415,818,36727,092,463-53,368,692

Total liabilities and net assets 65,147,792 14,338,069 6,617,399 902,879 5,036,043 (19,698,846) 72,343,336

See Independent Auditors' Report.- 3 -


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The Florida Bar and SubsidiariesConsolidating Statement of Revenues, Expenses and Changes in Net Assets

ClientsGeneral Bar Center Security Certification Sections Eliminating TotalYear ended June 30 2 12 Fund Fund Fund Fund Fund Entries ll FundsOperating revenuesAnnual feesOther fees from membersSales of products and servicesAdvertisingYoung lawyers

Grants and otherTotal operating revenues

23,754,1613,666,9506,596,1051,599,039874,708310,85936,801,822

---

1,095,9271,095,927

---

800,431800,431

-1,309,3203,915

-1,313,235

-1,293,3852,284,892

-3,578,277 (897,168)(897,168)

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

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 costsTotal operating expenses

15,681,3986,696,4381,544,775596,6324,056,5122,042,814448,529818,558227,494521,88632,635,036

--------798,101379,6441,177,745

---2,700,353----4,033-2,704,386

1,205,956-------156-1,206,112

-3,581,839--------3,581,839

(391,529)(167,195)(38,570)(14,896)(101,282)(51,004)(11,199)(20,438)-(101,055)(897,168)

16,495,82510,111,0821,506,2053,282,0893,955,2301,991,810437,330798,1201,029,784800,47540,407,950Operating Income (loss) 4,166,786 (81,818) (1,903,955) 107,123 (3,562) - 2,284,574

N o n ~ p e r a t l n g revenues (expenses)Investment earningsLoss on disposal of capital assetsTotal non-operating revenues (expenses)(492,708)-(492,708)

(68,745)(30,006)(98,751)(35,557)-(35,557)

(7,747)-(7,747)(64,426)-(64,426)

---(669,183)(30,006)(699,189)

Change In net assets 3,674,078 (180,569) (1,939,512) 99,376 (67,988) 1,585,385Net assets, beginning of year 29,630,198 13,762,911 4,094,311 803,503 5,104,031 (1,611,647) 51,783,307Transfers (to) from other funds (2,861,130) 640,605 2,220,525Net assets, end of year 30,443,146 14,222,947 4,375,324 902,879 5,036,043 (1,611,647) 53,368,692

S e e l n d e p e n d e n t A u d ~ o ~ R e p o r t

- 3


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The Florida Bar and SubsidiariesConsolidating Statement of Cash Flows

Clients'General Bar Center Security Certification Sections Eliminating TotalYear ended une 30 2012 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 operating activities

36,661,958(35,839,574)822,3842,039,501(393,568)1,645,933

3,020,956(2,985,399)35,5571,313,235(1,305,488)7,747

3,578,277(3,513,851)64.42639,828(39,828)-

46,653,755(44,077,708)2,576,047Cash flows from capital and related financing activities:

Acquisition of capital assetsNet cash (used in) capital and related financing activities (1,050,350)(1,050,350) (861,373)(861,373) -- -- -- -- (1,911,723)(1,911,723)Cash flows from investing activities:Redemption of investmentsPurchase of investmentsInvestmentincome, netNet cash (used in) provided by investing activities

23,175.427(21,226,436)1,019,2082,968,199

--(68,745)(68,745)

--(35,557)(35,557)

--(7,747)(7,747)

--(64,426)(64.426)

----

23,175.427(21,226.436)842,7332,791,724Increase in cash and cash equivalents 2,740,233 715,815 3.456,048Cash and cash equivalents, beginning of year 14,058,181 444,181 - - - - 14,502,362Cash and cash equivalents, end of year 16,798.414 1,159,996 17,958,410

See Independent Auditors' Report- -


38/55

The Florida ar and SubsidiariesConsolidating Statement of Cash Flows(Continued)

Year ended une 30 2012GeneralFund ar CenterFund

Clients'SecurityFund CertificationFund SectionsFund EliminatingEntries TotalAll FundsReconciliation of operating income (loss) to net cash providedby operating activities:Operating income (loss) 4,166,786 (81,818) (1,903,955) 107,123 (3,562) 2,284,574Adjustments to reconcile operating income (loss) tonet cash provided by operating activitiesDepreciation and amortization 227,494 798,101 4,033 156 1,029,784

Transfers (to) from other funds (2,861,130) 640,605 2,220,525(Increase) decrease inAccounts receivable, net 22,191 (39,828 ) (17,637)Due from other funds 302,969 41,068 (99,532) 67,988 (312,493)CSF recovery receivablePrepaid expense and other assets (398,437) (44) (398,481)Increase (decrease) inAccounts payable 1,384,179 (13,886) (1,348,788) 21,505Claims payable (326,114) (326,114)Accrued expenses (60,580) (5) (60,585)Deferred revenues (162,055) (162,055)Deferred revenues - CSF recoverySecurity deposits - 6 6Due to other funds (1,701,114) - - - - 1,701,114Compensated absences payable 205,050 - - - - - 205,050Net cash provided by operating activities 822,384 1,645,933 35,557 7,747 64,426 - 2,576,047

See Independent Auditors' Report.-


39/55

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

VarianceFavorableYear ended June 30 2 12 Actual Budgeted (Unfavorable)Revenues - budgetary basis

Annual feesInvestmentsAuthorized house counselLawyer regulationFlorida registered paralegal programProfessional enhancement programDivision director - ethics, UPL and professionalismUnlicensed 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 informationJournalewsBuilding and groundsOther revenue

G. Kirk Haas Fund (restricted revenue)

23,754,161(492,726)301,945721,675839,470101,880469

547,80019,037580,225504,093141,7043,074,196717,199195,421412,53915,340167,039672,461594,891755,031

874,70812,88959,924460,7671,138,27288,0275,2644,586

Total revenues - budgetary basis 36,268,287

23,494,347 259,8141,920,000 (2,412,726)262,300 39,645768,937 (47,262)656,878 182,592113,525 (11,645)144 (144)2,549 (2,080)275 (275)

575,350 (27,550)24,702 (5,665)575,000 5,225605,375 (101,282)141,7043,304,937 (230,741)687,078 30,121170,017 25,404425,050 (12,511)9,675 5,665207,210 (40,171 )573,351 99,110530,000 64,891768,086 (13,055)

676,937 197,77110,500 2,38999,448 (39,524)519,786 (59,019)1,161,517 (23,245)91,220 (3,193)300 4,9643,250 1,336

38,237,744 (1,969,457)

See Independent Auditors Report.- 4-


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The Florida ar and SubsidiariesGeneral Fund Schedule o Budgeted and Actual Revenues and Expenses(Continued)

VarianceFavorableYear ended une 30 2012 Actual Budgeted (Unfavorable)Expenses - budgetary basisGeneral administrationStaff and office expenseTravelInternal service and administrationOther operating expensesTotal general administrationBoard and officerStaff and office expenseTravelInternal service and administrationOther operating expenses

Total board and officer

669,52145,495

6,15510,020

731,191

225,32325,20811,449

338,479600,459

1,140,292 470,77168,257 22,7624,341 (1,814)

20,252 10,2321,233,142 501,951

253,346 28,02326,573 1,36516,326 4,877

371,975 33,496668,220 67,761

LegislationStaff and office expense 100,438Contract services 293,115Travel 2,799Internal service and administration 57,876Other operating expenses 908Total legislation 455,136Authorized house counselStaff and office expense 8,963Internal service and administration 2,356Other operating expenses 3,045

Total authorized house counsel 14,364General counselStaff and office expenseContract servicesTravelInternal service and administrationOther operating expenses

137,440379,463

2,32432,543

1,076Total general counsel 552,846Division director - legalStaff and office expense (13,930)Travel 12,962Internal service and administration 750Other operating expenses 230Total division director - legal 12

115,305 14,867302,000 8,885

3,316 51766,212 8,336

417 (491)487,250 32,114

9,139 1761,544 (812)2,991 (54)

13,674 (690)

143,096 5,656650,576 271,113

3,316 992552 (31,991 )7 (365)

798,251 245,405

(21,592) (7,662)18,780 5,8182,312 1,562

500 270(12)

See Independent Auditors Report.-


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624

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

VarianceFavorableYear ended June 30 2012 Actual Budgeted (Unfavorable)Expenses - budgetary basisAttorney Consumer Assistance ProgramStaff and office expenseTravelInternal service and administrationOther operating expensesTotal Attorney Consumer Assistance ProgramLawyer regulationStaff and office expenseContract servicesTravelInternal service and administration

Other operating expensesTotal lawyer regulation 11,217,444Professional enhancement programStaff and office expenseTravelInternal service and administrationOther operating expensesTotal professional enhancement programDivision director - ethics, UPL and professionalismStaff and office expenseTravelLess cost dist.

Internal service and administrationOther operating expensesTotal division director - ethics, UPL and professionalismUnlicensed practice of lawStaff and office expenseTravelInternal service and administrationOther operating expensesTotal unlicensed practice of law

1,201,36588154,91646,9811,404,143

9,284,0522,402133,2201,440,200357,570

23,5047,3693,7862,56937,228

(6,623)6,4869245

1,302,31928,038220,78331,8131,582,953

1,307,9801,505193,79948,2321,551,516

9,600,987148,6021,608,100403,21611,760,905

28,0318,5515,0072,76144,350

52,3937,157(169,287)16,55160(93,126)

1,321,03742,257239,43342,2841,645,011

106,61538,8831,251147,373

316,935(2,402)15,382167,90045,646543,461

4,5271,1821,2211927,122

59,01667(169,287)

16,45915(93,126)

18,71814,21918,65010,47162,058Lawyer assistance program/substance abuse

Internal service and administration 53,206 59,818 6,612Other operating expenses 470,000 470,000Total lawyer assistance program/substance abuse 523,206 529,818 6,612

See Independent Auditors Report.- 6-


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VarianceFavorable

Year ended June 30 2 12 Actual Budgeted (Unfavorable)Expenses - budgetary basisEthicsStaff and office expenseTravelInternal service and administrationOther operating expensesTotal ethicsLawyer advertisingStaff and office expenseContract servicesTravelInternal service and administrationOther operating expensesTotal lawyer advertising

669,7093,55284,1783,046760,485

676,67312,4001,99885,1805,774782,025Records managementStaff and office expense 321,906

Travel 241Internal service and administration 64,047Other operating expenses 434

Total records management 386,628Rules

Staff and office expenseTravelInternal service and administrationOther operating expenses

Total rules

105,128609

11,97112117,720

718,507 48,7984,875 1,32399,849 15,6715,797 2,751829,028 68,543

733,900 57,22712,4003,944 1,946109,234 24,0549,196 3,422868,674 86,649

265,085 (56,821 )1,176 935

40,358 (23,689)(434)306,619 (80,009)

107,100 1,972701 92

13,781 1,810125 113121,707 3,987

Ethics/advertising staff poolStaff and office expenseInternal service and administrationTotal ethics/advertsising pool

(876)873(3) 95095087677953

ProfessionalismStaff and office expenseContract servicesTravelInternal service and administrationOther operating expensesTotal professionalism

289,9384,9005,82736,7875,551343,003

403,7324,90613,18869,17421,416512,416

113,79467,36132,38715,865169,413Multijurisdictional practiceStaff and office expenseInternal service and administrationOther operating expensesTotal multijurisdictional practice

15,6171,7701717,404

22,3602,8481525,223

6,7431,078(2)7,819Florida Registered ParalegalStaff and office expenseContract servicesTravelInternal service and administrationOther operating expensesTotal Florida Registered Paralegal

153,7228,9002,91428,8738,362202,771

147,3188,9003,55510,43310,850181,056

(6,404)641(18,440)2,48821 ,715)

See Independent Auditors Report.- -


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VarianceFavorableYear ended June 30 2 12 Actual Budgeted (Unfavorable)Expenses - budgetary basisShipping and receivingStaff and office expense 140,728 160,896 20,168

Internal service and administration (3,753) (4,000) (247)Other operating expenses 3 93 (38)Less cost distribution (137,104) (189,045) (51,941)Total shipping and receiving 2 (32,056) (32,058)

Building and groundsStaff and office expenseTravelInternal service and administrationOther operating expensesLess cost distribution

1,736,9452,1612092(1,651,283)Total building and grounds 88,034Meetings and conventionsStaff and office expense 393,829Contract services 2,811Travel 13,542Internal service and administration 176,965Other operating expenses 356,353Less cost distribution (73,517)Total meetings and conventions 869,983Information systemsStaff and office expense 2,989,020Contract services 420,221Travel 11,004Internal service and administration 548Other operating expenses 79,116Less cost distribution (3,499,913)Total information systems (4)Human resource managementStaff and office expenseContract servicesTravelInternal service and administrationOther operating expensesLess cost distribution

301,53148,96310,91417,024(378,432)

1,776,943 39,9983,705 1,544245 363 1(1,699,105) (47,822)81,791 (6,243)

424,178 30,3492,629 (182)23,965 10,423200,999 24,034454,801 98,448(39,936) 33,5811,066,636 196,653

3,399,800 410,780498,000 77,77920,446 9,442637 89142,579 63,463(4,013,715) (513,802)47,747 47,751

291,977 (9,554)50,000 1,0373,508 3,50820,524 9,61019,206 2,182(384,518) (6,086)Total human resource management 697 697



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VarianceFavorable

Year ended June 30 2 12 Actual Budgeted (Unfavorable)Expenses - budgetary basisDivision director - programsStaff and office expenseTravelInternal service and administrationOther operating expensesTotal division director - programs

(1,969)1,3314891567

(6,450) (4,481 )4,091 2,7601,710 1,221296 140(353) (360)Continuing legal education programsStaff and office expense 829,427Travel 44,248

Internal service and administration 668,189Other operating expenses 1,300,808Total continuing legal education programs 2,842,672Continuing legal education ruleStaff and office expenseTravelInternal service and administrationOther operating expensesTotal continuing legal education rule

200,54755436,98721,832259,920

812,87968,236964,3431,353,6073,199,065

(16,548)23,988296,15452,799356,393

286,3971,61161,26822,581371,857

85,8501,05724,281749111,937

140,13824,6791,200166,017

(34,789)4,806578(29,405)

Course approval centerStaff and office expense 174,927Internal service and administration 19,873Other operating expenses 622Total course approval center 195,422Legal education and specialization pool

Staff and office expense 2,841 (7,983) (10,824)Internal service and administration (2,838) (7,830) (4,992)Total legal education and specialization pool 3 (15,813) (15,816)Professional development poolStaff and office expense (2,158)Internal service and administration 824Other operating expenses 1,329Total professional development pool (5)Public service programsStaff and office expenseTravelInternal service and administrationOther operating expensesTotal public service programs

342,857929110,719176,115630,620

(5,485) (3,327)385 (439)1,100 (229)(4,000) (3,995)

380,677 37,8202,343 1,41480,581 (30,138)201,273 25,158664,874 34,254

See Independent Auditors Report.- -


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VarianceFavorable

Year ended June 30 2 12 Actual Budgeted (Unfavorable)Expenses - budgetary basisForeign legal consultantsStaff and office expense

Internal service and administrationOther operating expensesTotal foreign legal consultants

6,4821,1461397,767

5,995 (487)913 (233)278 1397,186 581 )

Print shopStaff and office expense 236,751 336,265 99,514Other operating expenses 17,329 30,894 13,565Less cost distribution (254,073) (371,032) (116,959)Total print shop 7 (3,873) (3,880)Law office management advisory services

Staff and office expenseTravelInternal service and administrationOther operating expensesTotal law office management advisory services

242,09323,53735,57312,001313,204Member benefits programStaff and office expense 36,043Internal service and administration 27,140Other operating expenses 199,756Total member benefits program 262,939

323,381 81,28841,289 17,75250,054 14,48117,031 5,030431,755 118,551

48,544 12,50136,020 8,880206,190 6,434290,754 27,815Legal publicationsStaff and office expense 259,695Travel 1,124

Internal service and administration 34,460Other operating expenses 21,842Total legal publications 317,121Court rulesStaff and office expenseTravelInternal service and administrationOther operating expensesTotal court rules

317,0729,11740,67718,144385,010

320,019 60,3243,562 2,43860,154 25,69427,688 5,846411,423 94,302

378,646 61,57414,002 4,88550,652 9,97522,971 4,827466,271 81,261Section administrationStaff and office expense 627,787 675,458 47,671Travel 1,651 1,789 138Internal service and administration 474,370 591,861 117,491Other operating expenses 9,300 1,035 (8,265)Total section administration 1,113,108 1,270,143 157,035



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VarianceFavorable

Year ended June 30 2 12 Actual Budgeted (Unfavorable)Expenses - budgetary basisYoung lawyers divisionStaff and office expenseTravelInternal service and administrationOther operating expenses

60,82211,257100,151688,829Total young lawyers division 861,059CommitteeStaff and office expense 97,572Travel 5,543

Internal service and administration 22,257Other operating expenses 30,745Total committee 156,117Public informationStaff and office expenseContract servicesTravelInternal service and administrationOther operating expensesTotal public informationDiversity InitiativesStaff and office expenseTravelInternal service and administrationOther operating expensesTotal diversity initiativesOffice systemsStaff and office expenseInternal service and administrationOther operating expensesLess cost distribution

727,780183,54048,790231,751119,7621,311,623

94,58312,57219,09834,037160,290

443,233960(444,183)

57,719 (3,103)12,083 82695,536 (4,615)739,977 51,148905,315 44,256

89,286 (8,286)3,820 (1,723)18,270 (3,987)39,521 8,776150,897 (5,220)

740,972 13,192385,524 201,98475,974 27,184231,460 (291)149,324 29,5621,583,254 271,631

107,181 12,598775 (11,797)9,458 (9,640)69,000 34,963186,414 26,124

494,323 51,090320 (640)147 147(502,511 ) (58,328)Total office systems 10 (7,721 ) (7,731 )Journal - News staff poolStaff and office expense (8,434)Travel 2,678Internal service and administration 4,240Other operating expenses 1,526Total Journal - News staff pool 10JournalStaff and office expenseTravelInternal service and administrationOther operating expensesLess cost distribution

276,0811,35688,083501,669(6,750)Total Journal 860,439

(30,044) (21,610)3,502 82411,278 7,0383,206 1,680(12,058) (12,068)

290,346 14,2651,637 28110,735 22,652550,839 49,170(7,500) (750)946,057 85,618

See Independent Auditors' Report.4


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

Continued)VarianceFavorable

Year ended June 30 2 12 Actual Budgeted (Unfavorable)Expenses - budgetary basisNewsStaff and office expenseTravelInternal service and administrationOther operating expensesLess cost distributionTotal News

506,2399,520184,6921,264,187(160,016)1,804,622

527,322 21,08312,023 2,503206,542 21,8501,272,949 8,762(189,993) (29,977)1,828,843 24,221Finance and recordsStaff and office expenseContract servicesTravelInternal service and administrationOther operating expensesLess cost distributionTotal finance and records

1,838,95447,0205,222215,507318,956(1,490,556)935,103

2,009,531 170,57771,900 24,8805,991 769362,944 147,437353,374 34,418(1,786,740) (296,184)1,017,000 81,897Research, planning and evaluationStaff and office expenseContract servicesTravelInternal service and administrationOther operating expensesTotal research, planning and evaluationDivision director - administrationStaff and office expenseTravelInternal service and administrationOther operating expensesLess cost distribution

167,32911,0003,7961,762

11,538195,425

151,487317,761

68(169,319)

172,936 5,60712,605 1,6055,554 1,7581,431 (331)

10,156 (1,382)202,682 7,257

143,532 (7,955)100 97

8,152 (9,609)306 238(156,498) 12,821Total division directors - administration (4,408) (4,408)

G Kirk Haas Fund (restricted fund) 5,000 2,500 (2,500)Total expenses 33,304,523 36,703,580 3,399,057Excess of revenues over expenses - budgetary basis 2,963,764 1,534,164 1,429,600

See Independent Auditors' Report.- -


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The Florida Bar and SubsidiariesGeneral Fund Reconciliation o Revenues a

2012-2011 June 30 The Florida Bar Financial Statements

Documents

Transcript of 2012-2011 June 30 The Florida Bar Financial Statements