Schedules of Program Services - Departments and Projects, Scholarships,and Auxiliary Organizations for the Years Ended June 30, 2010 and 2009

Schedules of Management and General Expenses for the Years Ended June 30,2010 and 2009

MANNON KAPLAN, CPAGEORGE NADEL RIVIN, CPAEDWIN KANEMARU, CPAKENNETH R, HOLMER, CPADOUGLAS S. WAITE, CPACHARLES SCHNAID, CPADONALD G. GARRETT, CPACATHERINE C. GARDNER, CPAJEFFREY L. GOSS, CPARICHARD DEFRONZO, JDJOANNA BOLSKY, CPARONALD D. CHANDLER, CPAMiCHAEL G. KAPLAN, CPAMICHAEL J. QUACKENBUSH, CPAEDMOND AVANESS, CPACRANE CURRAN, CPABRIAN J. HARRIS, CPAGREGORY E. KLEIN, CPAFR~D WOLINSKY, CPALINDA BECKER, MBAANDREW B. KOSKI, MBA

Miller. Kdpidn, A lOse&Co., LLPCERTIFIED PUBLIC ACCOUNTANTS

THE AMERICAN INSTITUTE OF

CERTIFIED PUBLIC ACCOUNTANTS

THE CALIFORN1A, NEVADA, OREGON

AND WASHINGTON SOCiETIES OF

4123 LANKE:RSHIM BOULE:VARD

NORTH HOLLYWOOD, CALIFORNIA 91602-2828

(818) 769-2010

FAX (818) 769-3100

The Los Angeles Valley College FoundationVan Nuys, California

We have reviewed the accompanying statements of financial position of The Los Angeles ValleyCollege Foundation (a non-profit organization) as of June 30, 2010 and 2009, and the relatedstatements of activities and cash flows for the years then ended, in accordance with Statements onStandards for Accounting and Review Services issued by the American Institute of Certified PublicAccountants. All information included in these financial statements is the representation of themanagement of The Los Angeles Valley College Foundation.

A review consists principally of inquiries of Organization personnel and analytical procedures appliedto financial data. It is.substantially less in scope than an audit in accordance with generally acceptedauditing standards, the objective of which is the expression of an opinion regarding the financialstatements taken as a whole. Accordingly, we do not express such an opinion.

Based on our reviews, we are not aware of any material modifications that should be made to thefinancial statements in order for them to be in conformity with generally accepted accountingprinciples.

Our reviews were made for the purpose of expressing limited assurance that there are no materialmodifications that should be made to the financial statements in order for them to be in conformity withgenerally accepted accounting principles. The information included in the accornpanying schedules ispresented only for supplementary analysis purposes. Such information has been subjected to theinquiry and analytical procedures applied in the reviews of the basic financial statements, and we arenot aware of any material modifications that should be made hereto.

~ £J!A/~<rG, /Jr/ 7;rA=~ .JMILLER, KAPLAN, ARASE & CO., LLP

THE LOS ANGELES VALLEY COLLEGE FOUNDATIONSTATEMENTS OF FINANCiAL POSITION

June 30, 2010 June 30, 2009Temporarily Permanently Temporarily Permanently

Unrestricted Restricted Restricted Total Unrestricted Restricted Restricted TotalASSETS

City National Bank - Cash Account $ 288,170 $ $ $ 288,170 $ 220,519 $ $ $ 220,519

Investments 24,380 3,667,458 163,182 3,855,020 41,920 3,009,751 163,182 3,214,853

Deposit 675 675

TOTAL ASSETS $ 312,550 $ 3,667,458 $ 163,182 $ 4,143,190 $ 263,114 $ 3,009,751 $ 163,182 $ 3,436,047

LIABILITIES AND NET ASSETS

LIABILITIES $ $ $ $ $ $ $ $

NET ASSETS 312,550 3,667,458 163,182 4,143,190 263,114 3,009,751 163,182 3,436,047

TOTAL LIABILITIES ANDNET ASSETS $ 312,550 $ 3,667,458 $ 163,182 $ 4,143,190 $ 263,114 $ 3,009,751 $ 163,182 $ 3,436,047

THE LOS ANGELES VALLEY COLLEGE FOUNDATIONSTATEMENTS OF ACTIVITIES

July 1, 2009 to June 30, 2010 July 1, 2008 to June 30, 2009Temporarily Permanently Temporarily Permanently

Unrestricted Restricted Restricted Total Unrestricted Restricted Restricted TotalREVENUES, GAINS, AND

OTHER SUPPORTContributions $ 92,451 $ 1,131,598 $ $ 1,224,049 $ 42,556 $ 2,251,437 $ $ 2,293,993Contributions of Services 141,007 141,007 136,305 136,305Special Events Income, Net of

Expenses of $2,934 and $38,766 1,488 1,488 25,819 25,819Investment Income 22,000 132,968 154,968 (57,713) (200,475) (258,188)Other Income 2,071 2,071 5,064 5,064Net Assets Released from

Restrictions - Satisfactionof Program Restrictions 606,859 (606,859) 569,954 (569,954)

TOTAL REVENUES,GAINS AND OTHERSUPPORT 865,876 657,707 1,523,583 721,985 1,481,008 2,202,993

EXPENSESProgram Services:

Departments and Projects 431,385 431,385 501,472 501,472

Scholarships 98,159 98,159 56,534 56,534Auxiliary Organizations 74,977 74,977 42,482 42,482

Supporting Services:Management and General 211,919 211,919 179,590 179,590

TOTAL EXPENSES 816,440 816,440 780,078 780,078

CHANGE IN NET ASSETS 49,436 657,707 707,143 (58,093) 1,481,008 1,422,915

NET ASSETS, JULY 1 263,114 3,009,751 163,182 3,436,047 321,207 1,528,743 163,182 2,013,132

NET ASSETS, JUNE 30 $ 312,550 $ 3,667,458 $ 163,182 $ 4,143,190 $ 263,114 $ 3,009,751 $ 163,182 $ 3,436,047

THE LOS ANGELES VALLEY COLLEGE FOUNDATIONSTATEMENTS OF CASH FLOWS

July 1, 2009 July 1,2008to to

June 30,2010 June 30, 2009

CASH FLOWS FROM OPERATING ACTIVITIES

Change in Net Assets $ 707,143 $ 1,422,915

Adjustments to Reconcile Change in Net Assets toNet Cash Provided by Operating Activities:

Unrealized (Gain) Loss on Investments (59,019) 364,270Decrease in Deposit 675

NET CASH PROVIDED BY OPERATING ACTIVITIES 648,799 1,787,185

CASH FLOWS FROM INVESTING ACTIVITIES

Purchases of Investments (581,148) (1,845,825)

NET CASH (USED IN) INVESTING ACTIVITIES (581,148) (1,845,825)

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 67,651 (58,640)

CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 220,519 279,159

CASH AND CASH EQUIVALENTS AT END OF YEAR $ 288,170 $ 220,519

THE LOS ANGELES VALLEY COLLEGE FOUNDATIONNOTES TO FINANCIAL STATEMENTS

YEARS ENDED JUNE 30, 2010 AND 2009

The Los Angeles Valley College Foundation (the "Organization") supports various studentprograms to promote student skills. The Organization also provides scholarships to studentsand faculty and opportunities for students to meet potential employers. The Organization issupported primarily through donor contributions and fund-raising efforts.

The Organization reports information regarding its financial position and activities according tothree classes of net assets: unrestricted net assets, temporarily restricted net assets andpermanently restricted net assets.

The preparation of financial statements in conformity with accounting principles generallyaccepted in the United States of America requires the use of management estimates andassumptions that affect the reported amounts of assets and liabilities at the date of the financialstatements and revenue and expenses during the reporting period. Actual results could differfrom these estimates.

Investments in marketable securities with readily determinable fair values and all investments indebt securities are reported at their fair values in the statements of financial position.Unrealized gains and losses are included in the change in net assets. Investment income andgains restricted by a donor are reported as increases in unrestricted net assets if the restrictionsare met (either by passage of time or by use) in the reporting period in which the income andgains are recognized.

The Organization reports gifts of cash and other assets as restricted support if they are receivedwith donor stipulations that limit the use of the donated assets. When a donor restrictionexpires, that is, when a stipulated time restriction ends or purpose restriction is accomplished,temporarily restricted net assets are reclassified to unrestricted net assets and reported in thestatements of activities as net assets released from restrictions.

Donated marketable securities are recorded as contributions at their estimated fair values at thedate of donation.

Donated services are recognized as contributions, if the services (a) create or enhancenonfinancial assets or (b) require specialized skills, are performed by people witn those skills,

THE LOS ANGELES VALLEY COLLEGE FOUNDATIONNOTES TO FINANCIAL STATEMENTS

YEARS ENDED JUNE 30, 2010 AND 2009

and would otherwise be purchased by the Organization. Los Angeles Valley College pays thesalary of the Organization's Executive Director, as well as providing office space and supplies.The total value of these goods and services amounted to $141,007 and $136,305 for the yearsended June 30, 2010 and 2009. Volunteers also provided various services throughout the yearthat are not recognized as contributions in the financial statements since the criteria forrecognition was not met.

The Organization is a not-for-profit organization that is exempt from income taxes underSection 501(c)(3) of the Internal Revenue Code.

For purposes of the statement of cash flows, the organization considers all highly liqUidInvestments with an initial maturity of three months or less to be cash equivalents.

Certain items in the June 30, 2009 financial statements have been reclassified to conform to theJune 30, 2010 presentation.

2010 2009

Department and Projects $ 1,871,885 $ 1,825,283Scholarships 197,295 122,996Endowments 1,547,483 994,316Auxiliary Organizations 50,795 67,156

$ 3,667,458 $ 3,009,751

Marsh ScholarshipHawkinson Scholarship

$ 152,45010,732

$ 163,182

$ 152,45010,732

$ 163,182

Investment income from permanently restricted net assets is accounted for as temporarily restrictednet assets and is expendable to support the Marsh and Hawkinson Scholarship Programs.

THE LOS ANGELES VALLEY COLLEGE FOUNDATIONNOTES TO FINANCIAL STATEMENTS

YEARS ENDED JUNE 30, 2010 AND 2009

The Organization held $3,855,020 and $3,214,853 in various securities at June 30, 2010 and 2009,respectively. Investments are stated at fair market value (as provided by the investment managers).Fair values and accumulated appreciation (depreciation) are summarized as follows at June 30:

2010Accumulated

Fair Value (Depreciation)

$ 3,855,020 $ (257,275)

2009Accumulated

Fair Value (Depreciation)

$ 3,214,853 $ (316,294)$ 3,531,147

2010 2009

MorganStanley SmithBarney:Renaissance Account/Neuberger Berman Fund $ 426,836 $ 301,.054NFJ Managed Fund 365,080 243,943PIMCo Managed Fund 782,505 515,908Financial Management Account 1,802,736 1,851,797Managed Fund 364,543 302,151Newgate Emerging Markets 113,320

TOTAL EQUITIES $ 3,855,020 $ 3,214,853

Cash Funds and OtherMutual FundsCommon StocksGovernment and Government Sponsored Entity BondsCorporate and International BondsMortgage and Asset Backed SecuritiesExchange Traded and Closed End Funds

42.1%15.8%21.4%8.8%4.8%6.5%0.6%

53.0%14.0%16.0%6.0%4.0%7.0%0.0%

The Organization maintains a bank account at City National Bank, which, at times, is in excess of theFederal Deposit Insurance Corporation insurance limit of $250,000 per bank (unlimited for noninterestbearing accounts). City National Bank also maintains additional insurance for its depositors' accounts.The

THE LOS ANGELES VALLEY COLLEGE FOUNDATIONNOTES TO FINANCIAL STATEMENTS

YEARS ENDED JUNE 30, 2010 AND 2009

Organization's money fund and mutual fund investments at MorganStanley SmithBarney are insuredby the Securities Investor Protection Corporation. In addition, MorganStanley SmithBarney maintainsprivate insurance which covers the mutual fund investments. The mutual fund investments are subjectto market fluctuations. The Organization and its financial advisor monitor investments and marketconditions. The Organization has not experienced any losses in its accounts from bank or brokerageinsolvency and believes it is not exposed to any significant credit risk as to cash, cash equivalents andinvestments.

Dividend and Interest IncomeUnrealized Gain (Loss)

$ 95,94959,019

$ 154,968

$ 106,082(364,270)

$ (258,188)

At June 30, 2010 and 2009, the Organization's board of directors has designated certain unrestrictednet assets to be used for the following purposes:

2010 2009

Departments and Projects $ 601 $Scholarships 53,953 38,953Endowments 148,067 121,238

$ 202,621 $ 160,191

NOTE 7 - SPECIAL EVENTS INCOME

2010 2009Doo-Wop Concert

Revenues $ 4,422 $Expenses (2,934)

1,488Annual Gala:

Revenues 64,585Expenses 38,766

25,819

$ 1,488 $ 25,819

In connection with the Annual Gala for the year ended June 30, 2009, the Organization raised$9,300 for scholarships, which is included in Temporary Restricted Contributions on the Statementsof Activities.

THE LOS ANGELES VALLEY COLLEGE FOUNDATIONNOTES TO FINANCIAL STATEMENTS

YEARS ENDED JUNE 30, 2010 AND 2009

For the years ended June 30, 2010 and 2009, scholarships were issued from Program services asfollows:

$ 56,534900

$ 57,434

ScholarshipsDepartments and Projects

The Organization has adopted recently issued accounting standards related to fair valuemeasurements for all financial and non-financial assets and liabilities that are recognized ordisclosed at fair value in the financial statements on a recurring or non-recurring basis. Thestandards define fair value, establish a consistent framework for measuring fair value and expanddisclosure requirements about fair value measurements. The standards do not change theaccounting for those instruments that were, under previous standards, accounted for at cost orcontract value.

Level 2 - Inputs are based on quoted prices for similar instruments and model-based valuationtechniques for which all significant assumptions are observable in the market or can becorroborated by observable market data.

Level 3 - Inputs are generally unobservable and typically reflect management's estimates ofassumptions that market participants would use in pricing the asset or liability.

The following tables summarize the investments at June 30, 2010 and 2009 based on the inputsused to value them:

June 30, 2010Level 1 Level 2 Level 3 Total

Cash Funds $ 1,622,949 $ $ $ 1,622,949Mutual Funds:

Europacific Growth Fund 302,024 302,024Fixed Income Fund 307,887 307,887

Common Stocks 825,687 825,687Government Securities:

Federal Home Loan MortgageCorp. 32,855 32,855

Forward $ 3,058,547 $ 32,855 $ $ 3,091,402

THE LOS ANGELES VALLEY COLLEGE FOUNDATIONNOTES TO FINANCIAL STATEMENTS

YEARS ENDED JUNE 30, 2010 AND 2009

NOTE 9 - FAIR VALUE MEASUREMENTS (Continued)

June 30, 2010Level 1 Level 2 Level 3

Forwarded $ 3,058,547 $ 32,855 $

Federal National MortgageAssn. 222,148

U.S. Treasury Notes 85,438Corporate Bonds 179,257International Bonds 5,965Mortgage and Asset Backed

Securities 250,027Exchange Traded and Closed

End Funds 20,783

$ 3,058,547 $ 796,473 $

June 30, 2009Level 1 Level 2 Level 3

Cash Funds $ 1,699,957 $ $Mutual Funds 439,901Common Stocks 518,632Government Bonds 204,629Corporate and International

Bonds 130,645Mortgage and Asset Backed

Securities 221,089

$ 2,658,490 $ 556,363 $

Total

$ 3,091,402

222,14885,438

179,2575,965

250,027

20,783

$ 3,855,020

Total

$ 1,699,957439,901518,632204,629

130,645

221,089

$ 3,214,853

Level 1 investments are cash and mutual funds and common stocks that are valued based onquoted prices in an active market. Level 2 investments are government securities, corporate bonds,international bonds, mortgage and asset backed securities and exchange traded and closed endfunds recorded at fair value whose estimated fair values have been reported by the investmentmanager based on similar instruments.

Management has evaluated subsequent events through January 14, 2011, the date these financialstatements were available to be issued. There were no material subsequent events that requiredrecognition or additional disclosures in these financial statements.

THE LOS ANGELES VALLEY COLLEGE FOUNDATIONSCHEDULES OF PROGRAM SERVICES - DEPARTMENTS AND PROJECTS,

SCHOLARSHIPS AND AUXILIARY ORGANIZATIONS

Program Services - Departments and ProjectsPROLAVC:

Academic AffairsAfrican American Studies Success FundAstronomyBiological Sciences FundCalWORKS FundChicano Program FundChild Development CenterChoral ActivitiesClassified Staff Development CenterCNSACommercial Music FundCommunicationsContinuing EducationCoOp Education FundDance ProgramEarth Science and Anthropology FundEnglish Department FundFamily Resource CenterFitness and WellnessForeign Language LabFraternal Society of VeteransGymnastics FundHealth Sciences FundHHLPS DivisionKeeping PaceMath ImprovementMusic DepartmentOceanography FundPE Department FundPhi Theta KappaRadio and BroadcastingSpeech Team FundStudent Services EmergencyTAP ProgramTeachers of the FutureTechnology Department FundValley SymphonyVCAP FundWomens PE Faculty FundWriting Center

CAST Bookstore FundCAST Child Care Resource CenterCAST Family Resource CenterCAST Holding FundExtensions FundIDEAS FundJob Training FundM&O FundPMRC - TeleconferencingPuente-Rodriguez

July 1,2009to

June 30,2010

July 1, 2008to

June 30,2009

338 $184

1,758 1,816200

17095

600 75515,600 14,055

244 325,709 4,5721,413 1,5242,956 3,000

6803,662 632

12,883 9,506286 749564 1,073

3,826 3,2854,894

52 570364

432571 607

20819,618 33,143

492 5291,6242,231 3,4981,154 3,790

33,304 11,9834,234 460

17,282 27,1022,459 2,559

584411 472874

9,775 12,7805,346 4,365

343 915200 30110 900

1,040169,836 161,329

4,281 39,4321,209

10,489 12,96973,736 110,7136,5621,228 1,2762,405

420,631 $ 478,306

11

THE LOS ANGELES VALLEY COLLEGE FOUNDATIONSCHEDULES OF PROGRAM SERVICES - DEPARTMENTS AND PROJECTS,

SCHOLARSHIPS AND AUXILIARY ORGANIZATIONS

July 1,2009 July 1,2008to to

June 30, 2010 June 30, 2009

Forwarded $ 420,631 $ 478,306

Program Services - Departments and Projects (Continued)Retirements 4,431 4,612Tau Alpha Epsilon 1,150Television Studio Fund 3,000Tutoring Fund - Yasuda 2,03355 Year Photo Book 3,435Other 2,173 13,086

$ 431,385 $ 501,472

Program Services - ScholarshipsArt Ginsburg Family Scholarship $ 1,000 $Baker Scholarships 1,000Beckerman Nursing Scholarship 250Bill Payden Scholarship 1,000Biology Student Honorarium 1,035Carol Caldwell Memorial Scholarship 500Cedars-Sinai Nursing Scholarship 2,500Counseling Department Scholarship 500Crane Hydro Aire Scholarship 5,500 6,000Earleen DeVivo Memorial Scholarship 500E. Gunning Scholarship 2,000Eddie Irwin Memorial Scholarship 250Eileen Pearl Scholarship 500Elgin and Elaine Baylor Scholarship 1,000 500Elizabeth James Nursing Scholarship 1,250Ella Fitzgerald Foundation 1,166 824Founders Circle Scholarship 500George Hale Scholarship 500 500Hawkinson Math Scholarship 500 500Iyer Scholarship 500 500J. Nordmann Chemistry 4,000James Willett Scholarship 500 1,500Journalism Scholarship 5,790 2,300K. Roy Biology Scholarship 850 1,835Kenneth Franklin Kurz Scholarship 300Krupnick English Department Scholarship 1,250 2,750Leanore Motley Scholarship 250Leon Marziller Scholarship 250 250Lois Bergquist Memorial Scholarship 250Lou Albert Scholarship 250Lou Benson Memorial Scholarship 900MAAN Media Arts 500ML Heyman Perpetual Scholarship 1,000Marsh Business Scholarship 500Mazel Scholarship 250Mentor Multi Arts 500Mitzvah Award 2,250Moxie Scholarship 500National Notary Foundation Scholarship 1,000Oliver Watters Memorial Scholarship 500 500Patron's Scholarships 18,000Pittenger Scholarship 6,000

Forward $ 63,041 $ 22,459

(See accountants' review report) 12

THE LOS ANGELES VALLEY COLLEGE FOUNDATIONSCHEDULES OF PROGRAM SERVICES - DEPARTMENTS AND PROJECTS,

SCHOLARSHIPS AND AUXILIARY ORGANIZATIONS

July 1, 2009to

June 30,2010

Program Services - Scholarships (Continued)Puente ProjectRobert Brossman ScholarshipRobert Pritchard ScholarshipRose Engel ScholarshipRose Kornbluh ScholarshipRoselle M. Lewis ScholarshipSteve Payne Memorial ScholarshipTAE Chapter ScholarshipTAP ScholarshipTAP Yacovone ScholarshipTyree Weider ScholarshipValley College Accelerated Program ScholarshipVierling Kersey ScholarshipVincent and John ScholarshipWINGS ScholarshipOther Scholarships

1,0003,000

500250500250550

6,000500500250250750

20,818

98,159

Program Services - Auxiliary OrganizationsAthletic Hall of FameArts CouncilLAVC Museum

24,46639,40511,106

74,977

July 1, 2008to

June 30, 2009

250750

5,000500

23,0002,325

56,534

12,31929,721

442

42,482

THE LOS ANGELES VALLEY COLLEGE FOUNDATIONSCHEDULES OF TEMPORARILY RESTRICTED ENDOWMENTS

June 30, 2010 June 30, 2009

Athletic Endowment $ 22,217 $ 10,734 #Carol Caldwell Memorial Endowment 12,333 12,000Earleen DeVivo Memorial Endowment 10,194 10,000Engineering Endowment - Monte Toole 254,353 250,000 #Founders Circle Endowment Scholarship 6,633 6,483George Hale Endowment 20,667 20,261Hafif Endowed Scholarship 17,145 16,500Harless-Chang Memorial Endowment 1,665 *J. Sargent Memorial Endowment Scholarship 10,729 10,500J. Nordmann Endowment 104,107 102,000Jamie Mintz Endowment 11,194 11,013Krupnick Media Arts Endowment 509,705 *Lois Bergquist Memorial Endowment 11,354 11,010Marian Craig Endowment 18,300 18,000Max L. Heyman Memorial Endowment 10,194 10,000Museum of San Fernando Valley Endowment 115,789 113,093National Notary Fund Endowment 20,388 20,000Oliver Waters Memorial Endowment 10,194 10,000Patrons Association Endowment 3,150R. Engel Endowment Scholarship 9,660 9,500R. Hertzberg Endowment for LLRC 133,023 130,000R. Nystrom Endowment 133,023 130,000Sugar and Heyn Endowment 12,349 11,843Title V Endowment 5,671 3,203Tom and Anna Pangonis Endowment 51,471 50,000Tyree Weider Endowed Scholarship 16,041 15,000Whitsett Fdn. Museum Endowment 10,000 10,000Other Endowments 5,934 3,176

$ 1,547,483 $ 994,316

* Established during the year ended June 30,2010.# Established during the year ended June 30, 2009.

THE LOS ANGELES VALLEY COLLEGE FOUNDATIONSCHEDULES OF MANAGEMENT AND GENERAL EXPENSES

July 1,2009 July 1,2008to to

June 30, 2010 June 30, 2009

Accounting and Tax Returns $ 5,500 $ 4,500Awards Program 130Bank Charges and Fees 147 2Catering and Refreshments 2,446 2,624Conferences and Seminars 575Consulting and Special Services 40 1,280Credit Card Fees 2,454 1,932Departments and Projects Expenses 563Donated Services 141,007 136,305Donor and Board Relations 14,961 4,760Insurance 1,735 1,351Investment Charges and Fees 14,801 10,256Office Equipment 897Office Supplies 5,788 2,182Outside Workers (Students) 840 3,400Postage 44Printing 9,824 4,316Professional Memberships 1,100 4,984Publications 8,440 270Staff Development 30 808Subscriptions 447 395Taxes and Licenses 150 150Trophy and Awards 75

$ 211,919 $ 179,590