2008-2007 June 30 The Florida Bar Financial Statements

7/27/2019 2008-2007 June 30 The Florida Bar Financial Statements

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The Florida Bar and SubsidiariesFinancial Statements andSupplemental Information

June 30, 2008 and 2007


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The Florida Bar and SubsidiariesTable of ContentsJune 30, 2008 and 2007

Independent Auditors' ReportManagement's Discussion and AnalysisFinancial Statements

Consolidated Statements of Net Assets

1 - 2

3-7

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 30,2008. 28 - 29Consolidating Statement of Revenues, Expense and Changes

in Net Assets for the year ended June 30, 2008. 30Consolidating Statement of Cash Flows fo r the year endedJune 30, 2008. 31 - 32General Fund Schedule of Budgeted and Actual Revenues and Expensesfor the year ended June 30, 2008. 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 fo r the year ended June 30, 2008. 42Clients' Security Fund Schedule of Budgeted and Actual Revenues andExpenses for the year ended June 30, 2008. 43Certification Fund Schedule of Budgeted and Actual Revenues and Expensesfor the year ended June 30, 2008. 44Sections Fund Schedule of Budget and Actual Revenues and Expenses for theyear ended June 30, 2008. 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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CRI CARRRIGGS &INGRAM

Independent Auditors' Report

Board of GovernorsThe Florida BarTallahassee, Florida

Carr, Riggs & Ingram, LLC1713 Mahan DriveTallahassee, Florida 32308

(850) 878-8777(850) 878-2344 (fax)www.cricpa.com

We 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, 2008 and 2007, 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 fin.ancial 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 bl:Jsiness-type activities of The Florida Barand Subsidiaries as of June 30, 2008 and 2007, 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 24, 2008, on our consideration of The Florida Bar and Subsidiaries' internalcontrol over financial reporting and on our tests of its compliance with certain provisions oflaws, regulations, contracts, and grant agreements and other matters. The purpose ofthat report is to describe the scope of our testing of internal control over financial reportingand compliance and the results of that testing, and not to provide an opinion on theinternal control over financial reporting or on compliance. That report is an integral part ofan audit performed in accordance with Government Auditing Standards and should beconsidered 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 is 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.{AM. . ./ : ~ Tallahassee, 0 IdaOctober 24, 2008 F ~ ~ v-- -, . -


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The Florida Bar and SubsidiariesManagement's Discussion and Analysis

The Florida Bar is the statewide professional and regulatory organization for lawyers with morethan 84,800 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 pubHc 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, 2008 and 2007, The Florida Bar had $61,717,266 and $58,556,200, respectively intotal assets. Of this amount $53,967,114 and $51,221,438 was held in cash and investments and$6,850,102 and $6,339,329 was invested in capital assets at June 30, 2008 and 2007,respectively. The primary liability at June 30, 2008 and 2007 was deferred revenue of $10,541,326and $9,362,874, respectively, resulting from advance collection of member fees and prepaymentsfor Continuing Legal Education registrations. Our net assets were $44,282,555 and $42,327,971at June 30, 2008 and 2007, 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, 2008 and 2007 approved by the Florida SupremeCourt, planned on an increase in net assets of $598,305 and $724,991, r.espectively. After Boardof Governor amendments, the planned increase (decrease) became $245,311 and $(951,934),respectively. General Fund actual operations resulted in a change in net assets of $1,321,352 and$2,963,163, respectively. This improved performance resulted primarily from the implementation ofthe Florida Registered Paralegal program and efficiencies in operations of the various departmentsof The Florida Bar. Included in the supplemental information is an actual to budget comparison foreach department.

See the Independent Auditors' Report.- 3


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The Florida Bar and SubsidiariesManagement's Discussion and AnalysisFor the year ended June 30, 2008 and 2007, The Florida Bar's budget funded most departments ata continuation level. The Lawyer Regulation Department's consumer assistance program was fullyfunctional and the Florida Registered Paralegal program became effective March 2008.

CONDENSED CONSOLIDATED FINANCIAL INFORMATIONCONDENSED CONSOLIDATED STATEMENTS OF NET ASSETS

June 30, 2008 2007 ChangeAssets

Current assets $ 54,867,164 $ 52,216,871 $ 2,650,293Capital assets, net 6,850,102 6,339,329 510,773

Total assets $ 61,717,266 $ 58,556,200 $ 3,161,066Liabilities

Current liabilities $ 13,594,124 $ 12,157,092 $ 1,437,032Other liabilities 3,840,587 4,071,137 (230,550)

Total liabilities 17,434,711 16,228,229 1,206,482Net assets

Invested in capital assets, net of related debt 5,184,217 4,474,503 709,714Restricted for scholarships 34,412 32,551 1,861Unrestricted 39,063,926 37,820,917 1,243,009

Total net assets 44,282,555 42,327,971 1,954,584Total liabilities and net assets $ 61,717,266 $ 58,556,200 $ 3,161,066

See the Independent Auditors' Report.-4


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CONDENSED CONSOLIDATED STATEMENTS OF NET ASSETSJune 30,AssetsCurrent assets

Capital 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

2007$$

52,216,8716,339,329

58,556,200

$ 12,157,0924,071,137

16,228,229

4,474,50332,551

37,820,91742,327,971

$ 58,556,200

2006$ 47,002,121

5,904,229$ 52,906,350

$$

Change5,214,750

435,1005,649,850

$ 12,556,5354,037,979

16,594,514$ (399,443)33,158

(366,285)

3,854,68625,248

32,431,90236,311,836

$ 52,906,350 $

619,8177,303

5,389,0156,016,1355,649,850

For more detailed information, see the accompanying Consolidated Statements of Net Assets.CONDENSED CONSOLIDATED STATEMENTS OF REVENUES, EXPENSES

AND CHANGES IN NET ASSETSJune 3D,Operating revenuesOperating expenses

Net operating revenuesNon-operating revenuesNon-operating expenses

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

2008$ 40,560,544

(39,782,261 )778,283

1,320,375(144,074)

1,176,3011,954,584

42,327,971$ 44,282,555

2007$ 39,732,682

(37,915,576)1,817,106

$Change

827,862(1,866,685)(1,038,823)

4,361,648(162,619)

4,199,029(3,041,273)

18,545(3,022,728)

6,016,13536,311,836

(4,061,551)6,016,135

$ 42,327,971 $ 1,954,584

See the Independent Auditors' Report.- 5-


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June 30,Operating revenuesOperating expenses

Net operating revenuesNon-operating revenuesNon-operating expenses

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


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

2,865,502$

Change2,898,657

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

2,505,173(171,246)

2,333,9271,856,4758,6271,865,102

5,199,42931,112,407

816,7065,199,429

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

CONDENSED CONSOLIDATED STATEMENTS OF REVENUES, EXPENSESAND CHANGES IN NET ASSETS

For more detailed information, see the accompanying Consolidated Statements of Revenues,Expenses, and Changes in Net Assets.CAPITAL ASSETS

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

The Florida Bar had invested the following in Capital Assets:June 30, 2008Land $ 1,306,690Building and improvementsLandscaping and parkingEquipment and furnishingsConstruction in progressTotal, prior to depreciation

Accumulated depreciationNet capital assets

8,983,412120,318

4,629,15319,526

15,059,099(8,208,997)

$ 6,850,102

2007$ 1,103,060

8,292,805120,318

4,632,356136,170

14,284,709

$Change

203,630690,607

(3,203)(116,644)774,390

(7,945,380) (263,617)$ 6,339,329 $ 510,773

See the Independent Auditors' Report.- 6


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CAPITAL ASSETSJune 30,LandBuilding and improvementsLandscaping and parkingEquipment and furnishingsConstruction in progressTotal, prior to depreciation

Accumulated depreciationNet capital assets

2007$ 1,103,0608,292,805120,3184,632,356136,17014,284,709

(7,945,380)$ 6,339,329

2006$ 1,103,0607,902,973120,3184,456,519

13,582,870

$Change

389,832175,837136,170701,839

(7,678,641) (266,739)$ 5,904,229 $ 435,100

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

DEBTAt June 30, 2008 and 2007, The Florida Bar had $1,665,886 and $1,864,825, 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. Managementwill decide to either pay the loan or refinance the balloon. Investments have been purchased tocover 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.

See the Independent Auditors' Report.- 7-


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Financial Statements


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The Florida Bar and SubsidiariesConsolidated Statements of Net Assets

June 3D, 2008 2007AssetsCurrent assets

Cash and cash equivalents $ 14,058,533 $ 10,667,868Short-term investments 39,908,581 40,553,570Accounts receivable, net 261,303 577,459Prepaid expenses and other assets 638,747 417,974

Total current assets 54,867,164 52,216,871Capital assets, net

Land 1,306,690 1,103,060Buildings and improvements 8,983,412 8,292,805Landscaping and parking 120,318 120,318Equipment and furnishings 4,629,153 4,632,356Construction in progress 19,526 136,170Accumulated depreciation (8,208,997) (7,945,380)

Total capital assets, net 6,850,102 6,339,329Total assets $ 61,717,266 $ 58,556,200Liabilities and Net AssetsCurrent liabilities

Current portion of long-term debt $ 214,251 $ 198,939Accounts payable 1,405,120 1,586,408Claims payable 364,820 53,595Accrued expenses 1,020,011 907,385Deferred revenues 10,541,326 9,362,874Security deposits 48,596 47,891

Total current liabilities 13,594,124 12,157,092Non-current liabilities

Long-term debt, less current portion 1,451,635 1,665,886Compensated absences payable 2,388,952 2,405,251

Total non-current liabilities 3,840,587 4,071,137Total liabilities 17,434,711 16,228,229

Net assetsInvested in capital assets, net of related debt 5,184,217 4,474,503Restricted for scholarships 34,412 32,551Unrestricted 39,063,926 37,820,917

Total net assets 44,282,555 42,327,971Total liabilities and net assets $ 61,717,266 $ 58,556,200

See accompanying notes to the consolidated financial statements.- 8


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

Years ended June 3D, 2008 2007Operating revenues

Annual fees $ 21,577,689 $ 20,896,608Other fees 6,056,320 6,003,005Sales of products and services 9,263,422 8,891,878Advertising 2,348,386 2,315,354Young lawyers 561,070 575,425Grants and other 753,657 1,050,412

Total operating revenues 40,560,544 39,732,682Operating expenses

Regulation of the practice of law 15,732,831 14,704,622Cost of products and services provided to members 11,658,187 10,289,835Unauthorized practice of law 1,349,500 1,344,015Public service programs 2,185,966 1,738,927Communications with members and the public 4,002,905 3,989,239Administration 2,508,482 3,515,762Legislation 400,437 401,101Young lawyers 626,082 550,596Depreciation and amortization 764,039 699,110Other programs and costs 553,832 682,369

Total operating expenses 39,782,261 37,915,576Operating income 778,283 1,817,106Non-operating revenues (expenses)Investment earnings 1,320,375 4,361,648

Interest expense (137,262) (148,325)Loss on disposal of capital assets (6,812) (14,294)

Total non-operating revenues (expenses) 1,176,301 4,199,029Change in net assets 1,954,584 6,016,135Total net assets, beginning of year 42,327,971 36,311,836Total net assets, end of year $ 44,282,555 $ 42,327,971



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The Florida Bar and SubsidiariesConsolidated Statements ofCash Flows

Years ended June 30, 2008 2007Cash flows from operating activities:

Net cash provided by operating activitiesReceipts from members, customers and other sourcesPayments to employees, suppliers and other vendors

$3,043,126

42,586,177(39,543,051)

2,306,872$ 39,800,129

(37,493,257)

Cash flows from non-capital and related financing activities:Reduction of debt (198,939) (184,718)

Net cash (used in) non-capital and related financing activitiesInterest paid (137,262)

(336,201) (333,043)(148,325)

Cash flows from capital and related financing activities:Acquisition of capital assets (1,281,624) (1,148,504)

Net cash (used in) capital and related financing activities (1,281,624) (1 ,148,504)Cash flows from investing activities:

Net change in repurchase agreementRedemption of investmentsPurchase of investments, net of decrease in fair valueInvestment income

(625,165) (1 ,499,475)19,997,054 32,951,300(18,726,900) (39,888,684)1,320,375 4,361,648

Net cash (used in) provided by investing activities 1,965,364 (4,075,211)(Decrease) increase in cash and cash equivalents: 3,390,665 (3,249,886)Cash and cash equivalents, beginning of year 10,667,868 13,917,754Cash and cash equivalents, end of year $ 14,058,533 $ 10,667,868



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

Years ended June 30, 2008 2007Reconciliation of operating income to net cash provided byoperating activities:Operating income $ 778,283 $ 1,817,106Adjustments to reconcile operating income to net cash

provided by operating activities:Depreciation and amortization 764,039 699,110(Increase) decrease in:

Accounts receivable, netPrepaid expenses and other assets

316,156(220,773)

(172,135)144,358

Increase (decrease) in:Accounts payable (181,288) 172,459Claims payable 311,225 (425,263)Accrued expensesDeferred revenues

112,6261,178,452

133,848(296,813)

Security deposits 705 2,105Compensated absenses payable

Net cash provided by operating activities $(16,299)

3,043,126 $232,097

2,306,872Non-cash investing, capital, and financing acitivities

Change in the fair value of investments $ (1,969,343) $ 1,195,808

Supplemental informationCash paid for interest

Loss on disposal of assets

$ 137,262

$ 6,812

$

$

148,325

14,294

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 (UStatement No. 34") of the Governmental Accounting StandardsBoard ItBasic Financial Statements - and Management's Discussion and Analysis - for State andLocal 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 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 the annual fees from each Florida Bar member who is in good-standing(including inactive members). Claims payable represent amounts 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 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 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 Statements

NOTE 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 $2,460,726 and $2,561,243 atJune 30, 2008 and 2007, respectively. Additional cash and money market funds are held at afinancial institution insured by the Securities Investor Protection Corporation up to $100,000.Additional cash and money market funds were $11,597,807 and $8,106,625 at June 3D, 2008 and2007, 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 Governors 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 AssetsREITsTIPSFixed incomeCash and Equivalents

TargetMinimum Mix Maximum

35.0% 50.0% 65.0%35.00/0 50.0% 65.0%

TargetMinimum Mix Maximum

14.0% 20.0% 26.0%3.0% 6.0% 9.01c>3.0% 6.01c> 9.0%9.8% 14.00/0 18.2%0.01c> 2.00/0 5.00/00.0% 2.01c> 5.00/00.0% 3.0% 6.00/00.01c> 3.01c> 6.01c>28.00% 40.00% 52.00%2.01c> 4.0% 10.00/0

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RepresentativeIndex

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

RepresentativeIndexStandard &Poor's 500 IndexRussell Mid Cap IndexRussell 2000 Index

MSCI EAFE IndexMSCI Emerging Markets Free IndexDow Jones AIG Commodity IndexNAREIT Equity IndexLehman Brothers US TIPS IndexLehman Brothers Intermediate Gov't/Credit Bond IndexCitigroup U.S. gO-Day Treasury Bills


20/53

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

;2')07June 30, Fair Value Maturity Rating Fair ValueRepurchase agreement $ 2,799,128 Daily N/A $ 2,173,963Mutual funds - debt securities (ST) * 7,108,547 2 year average ** 8a to Aaa 7,081,588US Treasuries 1,664,959 9 year average** Aaa 4,854,913Federal Agencies 2,791,097 14 year average** Aaa 2,279,114Corporate Bonds & Other Fixed Income 5,427,237 12 year average** Baa3 to Aaa 3,656,258Municipal Bonds 1,493,209 10 year average** Baa1 to Aaa 913,232US Treasury Bonds 1,459,725 1 year average ** Aaa 1,354,845Mutual funds - equity securities 3,609,073 N/A N/A 3,212,727Stocks 13,555,606 N/A N/A 15,026,930

Total investments $ 39,908,581 $ 40,553,570

* The Florida Bar invests in short-term mutual funds, which consist of debt securities (i.e. fixed income securities).The Florida Bar's short-term mutual funds are not invested directly in fixed income debt secur ities. The Florida Bar isable to sell their interest in these mutual funds at will (subject to potential redemption fees).** Represents the weighted average maturity 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 1GOA>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 50ft> of the account'smarket value invested in a single issue (at cost) or in direct obligations of a single issuer (atmarket) with the exception of the U.S. Government and its agencies so long as any suchgovernment or agency issue shall be backed with the full faith and credit of the U.S.Government. In addition, no more than 15% of the fixed income securities may be invested inmortgage backed or asset backed securities of a single issuer, with the exception of thoseissued by the U.S. Government, its agencies, or its sponsored agencies.

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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 the failure 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 pern1ission 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.

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22/53

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, 2008 2007Accounts receivable $ 286,203 $ 602,359Allowance for doubtful accountsAccounts receivable, net $

(24,900)261,303 $ 577,459

(24,900)

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

LandConstruction in Progress

Total capital assets not depreciated

July 1,2007$ 1,103,060

136,1701,239,230

Additions$ 203,630

344,009547,639

Deletions June 30, 2008$ - $ 1,306,690

(460,653) 19,526(460,653) 1,326,216

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

Total capital assets being depreciated

8,292,805120,318

4,632,35613,045,479

690,607504,032

1,194,639(507,235)(507,235)

8,983,412120,318

4,629,15313,732,883

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

Total accumulated depreciationTotal capital assets being depreciated, net

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

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

(292,954)

(471,085)(764,039)430,600

500,422500,422

(6,813)

(4,826,326)(120,318)

(3,262,353)(8,208,997)5,523,886

Total capital assets, net

Depreciation expense for the$699,110, respectively. years$ 6,339,329 $ 978,239

ended June 30, 2008 and$ (467,466) $ 6,850,1022007 was $764,039 and

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NOTE 7 - LONG-TERM LIABILITIESLong-Term Debt


2007008une 30,The following is a summary of long-term debt:

$ 1,665,886 $ 1,864,825(214,251) (198,939)

Renewal mortgage note payable to Bank of America in the amountof $2,986,384 due on October 15, 2009. Monthly payments ofprincipal 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) (2.47% at June 30, 2008)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.

Current portion$1,451,635 $ 1,665,886ong-term debt, less current portion

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

$ 214,2521,451,63420092010 $ 1,665,886otal

2008 2007

$ 2,388,952 $ 2,405,251$ 1,488,365 $ 1,451,600

900,587 953,651Total compensated absences

June 30,Accrued vacationAccrued sick leave

Compensated Absences PayableCompensated absences payable consisted of the following:

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

Balance BalanceJuly 1,2007 Additions Reductions June 30, 2008

Long-term debt $ 1,864,825 $ - $ 198,939 $ 1,665,886Compensated absences 2,405,251 1,623,141 1,639,440 2,388,952

Total long-term liabilities $ 4,270,076 $ 1,623,141 $ 1,838,379 $ 4,054,838

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 . 4 7 ~ . 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 ofAmerica.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, 2008 and 2007, the notionalamount was $1,665,886 and $1,864,825, 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 6.970/0. The net effect ofthe two contractual rates is an effective fixed rate of 7.440/0. 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$80,650 and $63,775 as of June 30, 2008 and 2007, 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


25/53

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, 2008, 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 service

2009 $ 214,255 $ 46,141 $ 260,396 $ 63,248 $ 323,6442010 1,451,631 10,535 1,462,166 14,441 1,476,607

Total $ 1,665,886 $ 56,676 $ 1,722,562 $ 77,689 $ 1,800,251

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 mernbers 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.

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NOTE 9 - REVENUE AND EXPENSE CLASSIFICATION (CONTINUED)Communication with Members and the PublicIncludes 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 13% and 11 %of covered compensation for the years ended June 30, 2008 and 2007, respectively, and 4.3%on covered compensation exceeding 80% of the Social Security wage base for the years endedJune 30, 2008 and 2007. The employer contributions are allocated to separate participantaccounts and invested by the Trustee in the funds selected by the employee from those offeredby the Plan Administrator. Participant accounts vest based on the following schedule:

< 3 years 0%3 - 4 years 400/04 - 5 years 60%5 - 6 years 80%> 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 30,2008 and 2007 for the Plan years ended December 31, 2007 and 2006 and was $1,842,543and $1,434,567, 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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27/53

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. TFHRHP 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. 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 years ended June 30, 2008and 2007, The Florida Bar contributed $64,766 and $1,281,688, respectively, to the plan. Planmembers, who are ages 62 through 65 or disabled, are required to contribute $25 per month forretiree-only coverage and $100 per month for all other member coverage.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 of theemployer (ARC), an amount actuarially determined in accordance with the parameters of GASSStatement 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, 2008,actuarial valuation, the ARC is 0.37% of active payroll payable for the fiscal years 2008 through2010. The following table shows the components of The Florida Bar's annual OPEB cost for theyear, the amount actually contributed to the plan, and changes in The Florida Bar's net OPESobligation to TFBRHP:Annual required contributionInterest on net OPES obligationAdjustments to annual reguired contributionAnnual OPES cost (expense)Net OPES obligation - July 1, 2007Annual OPES cost (expense) for 2008Contributions made during 2008

$ 60,826(2,093)

$ 58,733$

58,733(64,766)

Net OPES obligation - June 30, 2008 $ (6,033)The excess contribution is recorded in prepaid expenses and other assets on the consolidatedstatements of net assets.The Florida Bar's annual OPES cost, the percentage of annual OPEB cost contributed to theplan, and the net OPEB obligation for 2008 and the preceding year were as follows:

Annual OPES Percentage of Annual OPES Cost Net OPESFiscal Year Ended Cost Contribtued Obligation6/30/2007 $ 64,766 100% $6/30/2008 58,733 110.27% (6,033)

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28/53

The Florida Bar and SubsidiariesllNotes to Consolidated Financial StatementsNOTE 11 - RETIREE POSTEMPLOYMENT HEALTH BENEFITS (CONTINUED)Funded Status and Funding Progress. As of January 1, 2008, the actuarial valuation date, theplan was 100% funded. The actuarial accrued liability for benefits was calculated to be$1,216,209 and the actuarial value of the assets was $1 ,288,476, resulting in a funding excessof $72,267. The covered payroll (annual payroll of active employees covered by the plan) was$14,296,752, and the ratio of the UML to the covered payroll was (0.51%).Actuarial valuat ions 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 calculat ions.In the January 1, 2008 actuarial valuation, the projected unit credit actuarial cost method wasused. The actuarial assumptions included a 7.50A> investment rate of return, which is the rate ofthe expected long-term investment returns on plan assets and an annual healthcare cost trendrate of 12% initially, reduced by decrements to an ultimate rate of 5% in the year 2015 andbeyond. Both rates included a 3% inflation assumption. As of the January 1, 2008 actuarialvaluation, TFBRHP did have plan assets in trust solely to provide benefits to retirees and theirbeneficiaries. The UML is being amortized as a level percentage of projected payroll on anopen basis. The remaining amortization period at January 1, 2008 was 30 years.

REQUIRED SUPPLEMENTARY INFORMATIONSchedule of Funding ProgressActuarialAccruedLiability UAAL as a

Actuarial (AAL)- Unfunded PercentageActuarial Value Projected AAL Funded Covered of CoveredValuation of Assets Unit Credit (UAAL) Ratio Payroll PayrollDate (a) (b) (b - a) (alb) (c) (b - a) I c)1/1/06 $ - $ 1,203,784 $ 1,203,784 0.000/0 $ 12,946,872 9.300/01/1/08 1,288,476 1,216,209 (72,267) 105.940/0 14,296,752 -0.51 0/0

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

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29/53

The Florida Bar and SubsidiariesNotes to Consolidated Financial StatementsNOTE 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, Amount20092010201120122013Thereafter

203,798850,858901,432Total minimum future rental payments $ 3,398,012

Total rental expense for the fiscal year ended June 30, 2008 and 2007 was $863,980 and$860,045, 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 2013. Rental income for the fiscal years ended June 30, 2008 and 2007 were$293,928 and $507,083, respectively.Future minimum rental receipts are as follows:Years ending June 30, Amount

$ 676,454559,887205,583

$ 272,767272,974279,790286,784293,81873,894

20092010201120122013Thereafter

$ 1,480,027otal minimum future rental payments

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.

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30/53


NOTE 14 - 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.The following is a schedule of estimated liquidating damages that The Florida Bar would incurshould they cancel the contract(s) as of June 30, 2008:

EstimatedliquidatingEvent damagesAnnual Meeting $ 674,810Mid-Year Meeting 168,121Board of Governors Meeting 125,497General Meeting 15,700Section Meeting 592,893Continuing Legal Education Seminars 362,105Total commitment $ 1,939,126

NOTE 15 - DESIGNATED FUND BALANCESThe Florida Bar has designated certain net assets to be used for specific program purposes. Asof June 30, 2008 and 2007, the designated net assets were $14,614,367 and $14,691,134,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.

NOTE 17 - RISKS AND UNCERTAINTIESThe Florida Bar investment securities are exposed to various risks, such as interest rate, marketconditions, and credit risks. Due to the level of risk associated with certain investmentsecurities, it is at least reasonably possible that ~ h a n g e s in the value of investment securitieswill occur in the near term and that such changes could materially affect investment balances.

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31/53

Supplementary Information


32/53

he Florida Bar and SubsidiariesConsolidating Statement of Net Assets

Clients'General Bar Center Security Certification Sections Eliminating Total

June 30, 2008 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 current assets

$ 13,226,11439,908,581

236,741-663,864

54,035,300

$ 832,419--

5,198,940-6,031,359

$ ---

5,233,829-5,233,829

$ ---

776,017-776,017

$ ---

4,182,743-4,182,743

$ --24,562

(15,391,529)(25,117)

(15,392,084)

$ 14,058,53339,908,581

261,303638,747

54,867,164Restricted assets

Investment in The Florida BarBuilding Corporation

Total restricted assets1,611,6471,611,647

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

LandBuildings and improvementsLandscaping and parkingEquipment and furnishingsConstruction in progressAccumulated depreciation

Total capital assets, net

-------

1,306,6908,983,412

120,3184,629,153

19,526(8,208,997)6,850,102

-------

-------

-------

-------

1,306,6908,983,412

120,3184,629,153

19,526(8,208,997)6,850,102

Total assets $ 55,646,947 $ 12,881,461 $ 5,233,829 $ 776,017 $ 4,182,743 $ (17,003,731) $ 61,717,266

See Independent Auditors' Report.- 28 -


33/53

- - - - - - - - - - - - - - - - -he Florida Bar and SubsidiariesConsolidating Statement of Net Assets(Continued)June 30,2008

Liabilities and Net AssetsCurrent liabilities

Current portion of long-term debtAccounts payableClaims payableAccrued expensesDue to other fundsDeferred revenuesSecurity deposits

Total current liabilitiesNon-current liabilities

Long-term debt, less current portionCompensated absences payable

Total non-current liablitiesTotal liabilities

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

UndesignatedContributed capital

Total net assetsTotal liabilities and net assets

$

$

GeneralFund

-2,775,025

-1,020,01113,941,58210,541,326-28,277,944

-2,388,9522,388,952

30,666,896

-34,412

496,08024,449,559-24,980,05155,646,947

Bar CenterFund

$ 214,25155,480

----73,713

343,444

1,451,635-1,451,6351,795,079

5,184,217-4,290,518

-1,611,647

11,086,382$ 12,881,461

Clients'Security

Fund

$ --364,820----364,820

---

364,820

-4,869,009-

-4,869,009

$ 5,233,829

CertificationFund

$ --------------

776,017--

776,017$ 776,017

SectionsFund

$ ------------

--

4,182,743--4,182,743

$ 4,182,743

EliminatingEntries

$ -(1,425,385)

--(13,941,582)-(25,117)(15,392,084)

---

(15,392,084)

----

(1,611,647)(1,611,647)

$ (17,003,731)

TotalAll Funds

$ 214,2511,405,120

364,8201,020,01110,541,326

48,59613,594,124

1,451,6352,388,9523,840,587

17,434,711

5,184,21734,412

14,614,36724,449,55944,282,555

$ 61,717,266



34/53

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

General Bar Center Security Certification Sections Eliminating TotalYear ended June 30,2008 Fund Fund Fund Fund Fund Entries All FundsOperating revenues

Annual fees $ 21,577,689 $ - $ - $ - $ - $ - $ 21,577,689Other fees from members 3,684,107 - - 1,175,327 1,196,886 - 6,056,320Sales of products and services 6,832,092 - - 5,823 2,425,507 - 9,263,422Advertising 2,348,386 - - - - - 2,348,386Young lawyers 561,070 - - - - - 561,070Grants and other 385,564 795,745 103,373 - - (531,025) 753,657Total operating revenues 35,388,908 795,745 103,373 1,181,150 3,622,393 (531,025) 40,560,544

Operating expensesRegulation of the practice of law 14,743,172 - - 1,212,265 - (222,606) 15,732,831Cost of products and services provided to members 8,240,948 - - - 3,528,489 (111,250) 11,658,187Unauthorized practice of law 1,369,266 - - - - (19,766) 1,349,500Public service programs 680,533 - 1,515,357 - - (9,924) 2,185,966Communication with members and the public 4,062,138 - - - - (59,233) 4,002,905Administration 2,547,171 - - - - (38,689) 2,508,482Legislation 406,356 - - - - (5,919) 400,437Young lawyers 635,337 - - - - (9,255) 626,082Depreciation and amortization - 764,039 - - - - 764,039Other programs and costs 125,030 483,185 - - - (54,383) 553,832

Total operating expenses 32,809,951 1,247,224 1,515,357 1,212,265 3,528,489 (531,025) 39,782,261Operating income (loss) 2,578,957 (451,479) (1,411,984) (31,115) 93,904 - 778,283Non-operating revenues (expenses)

Investment earnings 922,159 134,013 127,077 17,679 119,447 - 1,320,375Interest expense - (137,262) - - - - (137,262)Loss on disposal of capital assets - (6,812) - - - - (6,812)

Total non-operating revenues 922,159 (10,061) 127,077 17,679 119,447 - 1,176,301Change in net assets 3,501,116 (461,540) (1,284,907) (13,436) 213,351 - 1,954,584Net assets, beginning of year 23,677,380 10,935,901 4,567,492 789,453 3,969 ,392 (1,611,647) 42,327,971Transfers (to) from other funds (2,198,445) 612,021 1,586,424Net assets, end of year $ 24,980,051 $ 11,086,382 $ 4,869,009 $ 776,017 $ 4,182,743 $ (1,611,647) $ 44,282,555



35/53

- - - - - - - - - - - - - - - - -he Florida Bar and SubsidiariesConsolidating Statement of Cash FlowsClients'

General Bar Center Security Certification Sections Eliminating TotalYear ended June 30,2008 Fund Fund Fund Fund Fund Entries All FundsCash flows from operating activities:

Receipts from members, customers and other sources $ 36,876,195 $ 795,745 $ 103,373 $ 1,181,150 $ 3,622,393 $ 7,321 $ 42,586,177Payments to employees, suppliers and other vendors (34,750,941 ) 386,330 (230,450) (1,198,829) (3,741,840) (7,321 ) (39,543,051 )

Net cash provided by (used in) operating activities 2,125,254 1,182,075 (127,077) (17,679) (119,447) - 3,043,126Cash flows from non-capital and related financing activities:

Reduction of debt - (198,939) - - - - (198,939)Interest paid - (137,262) - - - - (137,262)Net cash (used in) non-capital and related financingactivities - (336,201) - - - - (336,201)

Cash flows from capital and related financing activities:Acquisition of capital assets - (1,281,624) - - - - (1,281,624)

Net cash (used in) capital and related financing activities - (1,281,624) - - - - (1,281,624)Cash flows from investing activities:

Net change in repurchase agreement (625,165) - - - - - (625,165)Redemption of investments 19,997,054 - - - - - 19,997,054Purchase of investments, net of change in fair value (18,726,900) - - - - - (18,726,900)Investment income 922,159 134,013 127,077 17,679 119,447 - 1,320,375

Net cash (used in) provided by investing activities 1,567,148 134,013 127,077 17,679 119,447 - 1,965,364(Decrease) increase in cash and cash equivalents 3,692,402 (301,737) - - - - 3,390,665Cash and cash equivalents, beginning of year 9,533,712 1,134,156 - - - - 10,667,868Cash and cash equivalents, end of year $ 13,226,114 $ 832,419 $ - $ - $ - $ - $ 14,058,533

See Independent Auditors' Report.- 31


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- - - - - - - - - - - - - - - - -he Florida Bar and SubsidiariesConsolidating Statement of Cash Flows(Continued)Clients'General Bar Center Security Certificati on Sections Eliminating Total

Year ended June 30,2008 Fund Fund Fund Fund Fund Entries All FundsReconciliation of operating income to net cash providedby (used in) operating activities:

Operating income (loss) $ 2,578,957 $ (451,479) $ (1,411,984) $ (31,115) $ 93,904 $ - $ 778,283Adjustments to reconcile operating income (loss) to

net cash provided by (used in) operating activitiesDepreciation and amortization - 764,039 - - - - 764,039Transfers (to) from other funds (2,198,445) 612,021 1,586,424(Increase) decrease in:

Accounts receivable, net 308,835 - - - - 7,321 316,156Due from other funds - 216,315 (612,742) 13,436 (213,351 ) 596,342Prepaid expense and other assets (220,773) - - - - - (220,773)Increase (decrease) in:Accounts payable (162,109) 40,474 - - - (59,653) (181,288)Claims payable - - 311,225 - - - 311,225Accrued expenses 112,626 - - - - - 112,626Deferred revenues 1,178,452 - - - - - 1,178,452Security deposits - 705 - - - - 705Due to other funds 544,010 - - - - (544,010)Compensated absences payable (16,299) - - - - - (16,299)

Net cash provided by (used in) operating activities $ 2,125,254 $ 1,182,075 $ (127,077) $ (17,679) $ (119,447) $ - $ 3,043,126

Non-cash investing, capital and financing activities:Change in the fair value of investments $ (1,969,343) $ - $ - $ - $ - $ - $ (1,969,343)Loss on disposal of assets $ - $ 6,812 $ - $ - $ - $ - $ 6,812

Supplemental information:Cash paid for interest $ - $ 137,262 $ - $ - $ - $ - $ 137,262



37/53

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

VarianceFavorable

Year ended June 30, 2008 Actual Budgeted (Unfavorable)Revenues - budgetary basis

Annual feesInvestmentsAuthorized house counselBoard and officer expenseLawyer 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 informationJournalNewsDirectoryBuilding and groundsOther revenueG. Kirk Haas Fund (restricted revenue)

$ 21,577,689910,475270,840

49,189755,981302,400127,625

7612,867

13486,924

29,106492,700556,896178,561

3,559,496662,682113,819624,567

9,175131,551607,483913,807760,119561,070

8,000103,028595,521

1,565,434187,43160,48523,560

4,360Total revenues - budgetary basis 36,242,930

See Independent Auditors' Report.- 33-

$ 21,924,333 $ (346,644)1,287,500 (377,025)

239,450 31,39049,189

712,250 43,7314,751 297,649

95,000 32,62576

2,445 10,42250 (37)

411,570 75,35439,594 (10,488)

500,000 (7,300)490,000 66,896210,000 (31,439)

4,303,347 (743,851)564,403 98,279122,020 (8,201 )733,875 (109,308)

11,075 (1,900)172,923 (41,372)588,615 18,868

1,020,000 (106,193)777,454 (17,335)634,808 (73,738)

5,000 3,000190,149 (87,121)466,261 129,260

1,517,340 48,094223,363 (35,932)

53,000 7,48512,500 11,0603,000 1,360

37,316,076 (1,073,146)


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(Continued)VarianceFavorable

Year ended June 30, 2008 Actual Budgeted (Unfavorable)Expenses - budgetary basisGeneral administrationStaff and office expense 705,045 1,152,544 447,499Travel 56,652 61,916 5,264Internal service and administration 14,183 22,027 7,844Member service projectPost employment healthOther operating expenses 14,507 18,603 4,096Total general administration 790,387 1,255,090 464,703Board and officerStaff and office expense 273,819 275,447 1,628Travel 35,844 28,550 (7,294)

Internal service and administration 9,381 11,578 2,197Other operating expenses 379,063 359,809 (19,254)Total board and officer 698,107 675,384 (22,723)LegislationStaff and office expense 100,043 122,353 22,310Contract services 249,454 260,958 11,504Travel 4,970 7,075 2,105Internal service and administration 50,542 61,222 10,680Other operating expenses 1,347 5,620 4,273Total legislation 406,356 457,228 50,872Authorized house counselStaff and office expense 10,461 9,853 (608)Internal service and administration 3,853 3,911 58Other operating expenses 1,440 1,030 (410)Total authorized house counsel 15,754 14,794 (960)General counselStaff and office expense 193,393 176,901 (16,492)Contract services 613,044 780,557 167,513Travel 3,608 5,487 1,879Internal service and administration 34,471 43,548 9,077Other operating expenses 247 1,340 1,093Total general counsel 844,763 1,007,833 163,070Division director - legalStaff and office expense (24,310) (22,845) 1,465Travel 23,784 22,299 (1,485)Internal service and administration 525 494 (31)Other operating expenses 52 52Total division director - legal (1 ) 1



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Year ended June 30, 2008 Actual Budgeted (U nfavorable)Expenses - budgetary basisAttorney Consumer Assistance Program

Staff and office expense 1,059,636 1,005,261 (54,375)Travel 557 5,188 4,631Internal service and administration 118,074 115,987 (2,087)Other operating expenses 29,979 9,410 (20,569)Total lawyer regulation 1,208,246 1,135,846 (72,400)

Lawyer regulationStaff and office expense 8,976,452 9,215,075 238,623Travel 144,993 155,295 10,302Internal service and administration 1,287,138 1,341,938 54,800Other operating expenses 438,893 442,396 3,503Total lawyer regulation 10,847,476 11,154,704 307,228

Professional enhancement programStaff and office expense 28,514 33,383 4,869Travel 9,973 14,750 4,777Internal service and administration 4,486 5,754 1,268Other operating expenses 2,918 2,465 (453)

Total professional enhancement program 45,891 56,352 10,461Division director - ethics, UPL and professionalism

Staff and office expense 42,021 42,758 737Travel 7,489 7,377 (112)Less cost dist. (49,513) (50,156) (643)Internal service and administrationOther operating expenses 3 21 18

Total division director - ethics, UPL and professionalismUnlicensed practice of law

Staff and office expense 1,131,542Travel 36,301Internal service and administration 171,677Other operating expenses 33,940

1,254,34141,764

216,79444,783

122,7995,463

45,11710,843Total unlicensed practice of law 1,373,460 1,557,682 184,222

Lawyer assistance program/substance abuseStaff and office expense 1,737 5,300 3,563Internal service and administration 49,028 50,871 1,843Other operating expenses 442,000 442,000Total lawyer assistance program/substance abuse 492,765 498,171 5,406



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Year ended June 30, 2008 Actual Budgeted (Unfavorable)Expenses - budgetary basisEthics

Staff and office expense 647,379 636,145 (11,234)Travel 5,201 4,533 (668)Internal service and administration 71,501 73,704 2,203Other operating expenses 5,225 5,534 309

Total ethics 729,306 719,916 (9,390)Lawyer advertising

Staff and office expense 641,268 672,600 31,332Travel 4,769 7,418 2,649Internal service and administration 70,997 78,586 7,589Other operating expenses 9,079 10,487 1,408Total lawyer advertising 726,113 769,091 42,978Ethics/advertising staff pool

Staff and office expense (1 ) 1Total ethics/advertsising pool (1 ) 1

ProfessionalismStaff and office expense 417,792 440,580 22,788Contract servicesTravel 20,714 22,218 1,504Internal service and administration 56,577 60,974 4,397Other operating expenses 20,400 41,383 20,983

Total professionalism 515,483 565,155 49,672Multijurisdictional practice

Staff and office expense 18,707 18,625 (82)Internal service and administration 3,484 5,576 2,092Other operating expenses 11 1,025 1,014

Total multijurisdictional practice 22,202 25,226 3,024Florida Registered Paralegal

Staff and office expense 51,175 54,846 3,671Travel 2,013 3,293 1,280Internal service and administration 58,570 24,215 (34,355)Other operating expenses 3,888 5,591 1,703Total professionalism 115,646 87,945 (27,701)



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Year ended June 30, 2008 Actual Budgeted (U nfavorable)Expenses - budgetary basisShipping and receiving

Staff and office expense 132,089 159,489 27,400Internal service and administration (13,569) (5,000) 8,569Other operating expenses 89 29 (60)Less cost distribution (118,609) (163,303) (44,694)

Total shipping and receiving (8,785) (8,785)Building and grounds

Staff and office expense 1,396,100 1,459,388 63,288Travel 3,009 2,000 (1,009)Internal service and adn1inistration 169 1,001 832Other operating expenses 1 2 1Less cost distribution (1,356,925) (1,380,098) (23,173)

Total building and grounds 42,354 82,293 39,939Meetings and conventions

Staff and office expense 355,073 334,792 (20,281)Contract services 2,336 630 (1,706)Travel 26,605 28,023 1,418Internal service and administration 147,811 148,650 839Other operating expenses 369,887 410,518 40,631Less cost distribution (23,378) (26,699) (3,321)

Total meetings and conventions 878,334 895,914 17,580Information systems

Staff and office expense 3,134,221 3,556,801 422,580Contract services 95,094 224,000 128,906Travel 4,532 24,493 19,961Internal service and administration (73,273) 10 73,283Other operating expenses 32,205 42,791 10,586Less cost distribution (3,192,777) (3,848,095) (655,318)

Total information systems 2 (2)Human resource management

Staff and office expense 246,540 256,329 9,789Travel 2,224 2,224Internal service and administration 38,419 48,218 9,799Other operating expenses 33,163 29,543 (3,620)Less cost distribution (318,122) (336,314) (18,192)

Total human resource managementDivision director - programs

Staff and office expense (5,272) (5,719) (447)Travel 4,677 5,541 864Internal service and administration 462 121 (341)Other operating expenses 137 57 (80)

Total division director - programs 4 (4)



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Year ended June 30, 2008 Actual Budgeted (Unfavorable)Expenses - budgetary basisContinuing legal education programs

Staff and office expense 864,889 909,632 44,743Travel 68,473 60,388 (8,085)Internal service and administration 877,424 977,222 99,798Other operating expenses 1,661,520 1,624,660 (36,860)

Total continuing legal education programs 3,472,306 3,571,902 99,596Continuing legal education rule

Staff and office expense 277,781 305,387 27,606Travel 374 928 554Internal service and administration 36,257 39,295 3,038Other operating expenses 30,952 32,719 1,767

Total continuing legal education rule 345,364 378,329 32,965Course approval center

Staff and office expense 99,644 111,124 11,480Internal service and administration 11,120 13,002 1,882Other operating expenses 3,051 3,205 154

Total course approval center 113,815 127,331 13,516Legal education and specialization pool

Staff and office expense (139,484) (200,136) (60,652)Internal service and administration 138,729 200,000 61,271Other operating expenses 754 136 (618)

Total legal education and specialization pool (1 ) 1Professional development pool

Staff and office expense (1,233) (724) 509TravelInternal service and administration 73 19 (54)Other operating expenses 1,168 705 (463)

Total professional development pool 8 (8)Public service programs

Staff and office expense 334,688 456,866 122,178Travel 3,035 2,879 (156)Internal service and administration 75,925 114,364 38,439Other operating expenses 267,591 294,771 27,180

Total public service programs 681,239 868,880 187,641Foreign legal consultants

Staff and office expense 3,097 10,150 7,053Internal service and administration 338 1,174 836Other operating expenses 10 174 164

Total foreign legal consultants 3,445 11,498 8,053



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Year ended June 30, 2008 Actual Budgeted (Unfavorable)Expenses - budgetary basisPrint shop

Staff and office expense 393,341 466,005 72,664Internal service and adn1inistration 2 (2)Other operating expenses 84,324 116,721 32,397Less cost distribution (477,659) (582,726) (105,067)

Total print shop 8 (8)Law office management adv isory services

Staff and office expense 343,499 348,837 5,338Travel 44,576 53,942 9,366Internal service and administration 49,809 49,121 (688)Other operating expenses 11,908 7,838 (4,070)

Total law office management advisory services 449,792 459,738 9,946Member benefits program

Staff and office expense 70,610 62,179 (8,431)Internal service and administration 26,096 28,958 2,862Other operating expenses 170,360 192,449 22,089

Total member benefits program 267,066 283,586 16,520Legal publications

Staff and office expenseTravelInternal service and administrationOther operating expenses

1,058,92618,691

126,09445,436

1,104,86219,357

138,04254,033

45,936666

11,9488,597

Total legal publicationsSection administration


Total section administrationYoung lawyers division


Total young lawyers division

1,249,147

564,7348,429

455,94925

1,029,137

52,9939,397

64,855508,092635,337

1,316,294

537,9628,460

433,4456,332

986,199

36,1976,808

67,101507,750617,856

67,147

(26,772)31

(22,504)6,307

(42,938)

(16,796)(2,589)2,246(342)

(17,481)



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(Continued)

Year ended June 30, 2008 Actual BudgetedVarianceFavorable

(Unfavorable)Expenses - budgetary basisCommittee

Staff and office expense 133,213 146,295 13,082Travel 10,920 22,556 11,636Internal service and administration 41,806 45,077 3,271Other operating expenses 37,411 33,259 (4,152)

Public informationStaff and office expenseContract servicesTravelInternal service and administrationOther operating expenses

Total committee 223,350 247,187 23,837

Total public information 1,230,469 1,412,111 181,642Office systems

Staff and office expenseInternal service and administrationOther operating expensesLess cost distribution (446,307) (471,999) (25,692)

Total office systems (1 )"Journal" - "News" staff pool


676,6534,567

52,562373,694122,993

735,4686,505

79,107368,981222,050

58,8151,938

26,545(4,713)99,057

443,9922,239

75466,857

5,000142

22,8652,761

67

(32,558)2,418

26,127(95,254)

3,69780,000

(62,696)1,279

53,8734,019 11,557 7,538

Total "Journal" - "News" staff pool 6 (6)"Journal"

Staff and office expenseTravelInternal service and administrationOther operating expensesLess cost distribution

257,89281,718

503,948(7,600)

280,5242,235

92,716540,468

(8,000)

22,6322,235

10,99836,520

(400)Total "Journal" 835,958 907,943 71,985

"News"Staff and office expense 495,507 547,689 52,182Travel 10,834 12,297 1,463Internal service and administration 161,824 174,419 12,595Other operating expenses 1,156,764 1,164,051 7,287Less cost distribution (169,465) (190,820) (21,355)

Total "News" 1,655,464 1,707,636 52,172



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(Continued)

Year ended June 30, 2008 ActualVarianceFavorable

Budgeted (Unfavorable)

47,513 73,820 26,30733,654 43,166 9,512

264,606 309,561 44,955(1,395) (3,825) (2,430)

Expenses - budgetary basisDirectory

Staff and office expenseInternal service and administrationOther operating expensesLess cost distribution

Total DirectoryFinance and records

Staff and office expenseContract servicesTravelInternal service and administrationOther operating expensesLess cost distribution

Total finance and records

344,378

1,638,06646,248

8,220549,282269,267

(1,645,350)865,733

422,722 78,344

1,682,813 44,74756,000 9,752

8,516 296689,279 139,997316,921 47,654

(1,726,784) (81,434)1,026,745 161,012

Research, planning and evaluationStaff and office expense 154,204 158,409 4,205Contract services 8,720 8,915 195TravelInternal service and administration

3,4761,783

6,3132,271

2,837488

Other operating expenses 9,519 10,1

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2008-2007 June 30 The Florida Bar Financial Statements

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