2011 Catalyst Annual Report

the measurement date. In order to increase consistencyand comparability in fair value measurements, a fairvalue hierarchy prioritizes observable and unobservableinputs used to measure fair value into three levels asdescribed in Note 10.O. Management has evaluated, for potential recognitionand disclosure, events subsequent to the consolidatedstatement of financial position date through February9, 2012, the date the consolidated financial statementswere available to be issued. Except as noted below, noevents have occurred subsequent to the consolidatedstatement of financial position date through February9, 2012, that would require adjustment to or disclosurein the consolidated financial statements. However,Catalyst has embarked on a major gifts campaign andhas received over $5.3 million in pledges. Additionally,Catalyst has started operations in India as of September14, 2011, as part of a global expansion pillar in the majorgifts campaign.P. Catalyst has no uncertain tax positions as of August31, 2011 and 2010, in accordance with AccountingStandards Codification (“ASC”) Topic 740, whichprovides standards for establishing and classifying anytax provisions for uncertain tax positions. Catalyst is nolonger subject to federal or state and local income taxexaminations by tax authorities for years before 2008.NOTE 3 – GRANTS AND CONTRIBUTIONS RECEIVABLEGrants and contributions receivable consist of the followingas of August 31, 2011 and 2010:Amount due in less than oneyearNOTE 4 – PROPERTY AND EQUIPMENT2011 20102011 2010$1,511,495 $937,956$1,511,495 $937,956Property, equipment and leasehold improvements consist ofthe following as of August 31, 2011 and 2010:EstimatedUseful LivesFurniture and $435,063 $435,063 5 YearsfixturesEquipment 2,425,580 2,327,789 5 YearsLeasehold 729,193 717,744 Lease termimprovementsTotal cost 3,589,836 3,480,596Less:(3,356,705) (3,222,609)accumulateddepreciationandamortizationNet bookvalue$233,131 $257,987NOTE 5 – INVESTMENTSInvestments consist of the following as of August 31, 2011and 2010:Short-term cashinvestments (cash andmoney market fund)2011 2010Realized gain (loss) $77,592 $(194,894)Unrealized gain 98,792 459,961Interest and dividendincome2011 2010$471,325 $137,749Certificates of deposits 8,232,713 6,562,971Government sponsored- 254,375enterprisesDomestic equities 139,950 -Mutual funds 4,083,461 5,569,892$12,927,449 $12,524,987Investment income (loss) consists of the following for theyears ended August 31, 2011 and 2010:260,337 318,565$436,721 $583,632Investments, in general, are exposed to various risks, suchas interest rate, credit, and overall market volatility risks.Due to the level of risk associated with certain investmentsecurities, it is reasonably possible that changes in the valuesof investment securities will occur in the near term and suchchanges could materially affect the amounts reported in theconsolidated financial statements.Contributed services for investments amount to $43,167and $40,396 for the years ended August 31, 2011 and 2010,respectively, and are reported as finance and administrationexpenses in the accompanying consolidated statements ofactivities.Catalyst Annual Report 2011 | 48