FARM SANCTUARY, INC.
Watkins Glen, New York
FINANCIAL REPORT
For the year ended December 31, 2012
And three-month period ended December 31, 2011
FARM SANCTUARY, INC.
TABLE OF CONTENTS
FOR THE TWELVE-MONTH PERIOD ENDED DECEMBER 31, 2012 AND THE THREE-MONTH PERIOD
ENDED DECEMBER 31, 2011
Independent Auditor’s Report ...............................................................................................................................
1-2
Statements of Financial Position ..........................................................................................................................
3
Statements of Activities .........................................................................................................................................
4
Statement of Functional Expenses - Twelve-month period ended December 31, 2012 .................................... 5-5a
Statement of Functional Expenses - Three-month period ended December 31, 2011 ...................................... 6-6a
Statements of Cash Flows ....................................................................................................................................
7
Notes to Financial Statements .............................................................................................................................. 8-14
John H. Dietershagen, C.P.A.
Jerry E. Mickelson, C.P.A.
Thomas K. Van Derzee, C.P.A.
Debbie Conley Jordan, C.P.A.
Patrick S. Jordan, C.P.A.
Duane R. Shoen, C.P.A.
Lesley L. Horner, C.P.A.
D. Leslie Spurgin, C.P.A.
Ciaschi  Dietershagen  Little  Mickelson
& Company, LLP
Certified Public Accountants and Consultants
Frederick J. Ciaschi, C.P.A.
INDEPENDENT AUDITOR’S REPORT
Board of Directors
Farm Sanctuary, Inc.
Watkins Glen, New York
We have audited the accompanying financial statements of Farm Sanctuary, Inc. (Farm Sanctuary), a nonprofit
organization, which comprise the Statements of Financial Position as of December 31, 2012 and 2011 and the
related Statements of Activities, Functional Expenses, and Cash Flows for the twelve-month and three-month
periods then ended, and the related notes to the financial statements.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance
with accounting principles generally accepted in the United States of America; this includes the design,
implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial
statements that are free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our
audits in accordance with auditing standards generally accepted in the United States of America. Those
standards require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of
the financial statements in order to design audit procedures that are appropriate in the circumstances, but not
for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we
express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and
the reasonableness of significant accounting estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinion.
-1CORTLAND
ITHACA
WATKINS GLEN
39 Church Street
Cortland, New York 13045
607-753-7439
fax 607-753-7874
401 East State Street ~ Suite 500
Ithaca, New York 14850
607-272-4444
fax 607-273-8372
www.cdlm.com
108 West Fourth Street
Watkins Glen, New York 14891
607-535-4443
fax 607-535-6220
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial
position of Farm Sanctuary, Inc., as of December 31, 2012 and 2011, and the changes in its net assets and its
cash flows for the year and three-month period then ended, in accordance with accounting principles generally
accepted in the United States of America.
August 8, 2013
Ithaca, New York
-2-
FARM SANCTUARY, INC.
STATEMENTS OF FINANCIAL POSITION
DECEMBER 31,
ASSETS
Current Assets:
Cash and cash equivalents
Investments
Inventory
Prepaid expenses
Accounts receivable
Accrued interest receivable
Contributions receivable
Unconditional promises to give
Total Current Assets
$
Unconditional promises to give, net of discount
Land, buildings, and equipment, less accumulated
depreciation of $2,349,366 and $2,041,721, respectively
Total Assets
2012
3,576,103
3,496,608
59,928
182,472
7,991
39,384
403,968
225,008
7,991,462
$
2011
2,986,132
3,007,938
74,539
44,441
187,257
36,965
296,035
197,200
6,830,507
-0-
20,000
4,602,057
4,050,401
$
12,593,519
$
10,900,908
$
320,132
139,455
4,349
$
191,004
114,019
3,150
LIABILITIES AND NET ASSETS
Current Liabilities:
Accounts payable
Accrued liabilities
Deposits
Total Liabilities
Net Assets:
Unrestricted - Undesignated
- Board Designated
Total Unrestricted
Temporarily Restricted
Total Net Assets, as Restated
Total Liabilities and Net Assets
$
463,936
308,173
10,300,686
1,375,459
11,676,145
8,681,044
1,375,459
10,056,503
453,438
536,232
12,129,583
10,592,735
12,593,519
See Independent Auditor's Report and Notes to Financial Statements
-3-
$
10,900,908
FARM SANCTUARY, INC.
STATEMENTS OF ACTIVITIES
FOR THE TWELVE MONTH AND THREE MONTH PERIODS ENDING DECEMBER 31,
2012
Changes in Unrestricted Net Assets:
Support:
Contributions
Grants
Total Support
$
Revenues:
Merchandise sales, net
Special events and visitor programs
Interest and dividends
Other
Gain on sale of investments
Unrealized gain on investments
Gain on destruction of assets
Net assets released from restrictions
Total Revenues
Total Unrestricted Support and Revenues
Expenses:
Program services
Supporting services
Fundraising
Total Expenses
Increase in Unrestricted Net Assets
Changes in Temporarily Restricted Net Assets:
Contributions
Grants
Net Assets released from restrictions
(Decrease) in Temporarily Restricted Net Assets
Increase in Net Assets
Net Assets, as Restated, December 31,
Net Assets, as Restated, December 31,
$
8,428,310
326,558
8,754,868
$
2,646,490
35,360
2,681,850
31,439
696,740
131,766
32,064
60,022
221,657
300
377,313
1,551,301
41,679
316,971
37,292
21,757
15,463
28,543
111,196
52,094
624,995
10,306,169
3,306,845
6,795,658
662,395
1,228,474
8,686,527
1,720,425
163,591
234,865
2,118,881
1,619,642
1,187,964
147,877
146,642
(377,313)
29,679
-0(52,094)
(82,794)
(22,415)
1,536,848
1,165,549
10,592,735
9,427,186
12,129,583
See Independent Auditor's Report and Notes to Financial Statements
-4-
2011
$
10,592,735
FARM SANCTUARY, INC.
STATEMENT OF FUNCTIONAL EXPENSES
FOR THE TWELVE MONTH PERIOD ENDED DECEMBER 31, 2012
Rescue,
Shelter
and Adoption
$ 1,663,962 $
41,418
21,497
Payroll
Supplies
Telephone
Postage
Printing
Travel
3,181
(258)
113,804
Utilities
Animal care and rehabilitation
Events and campaigns
Lobbying
Insurance
Miscellaneous other
Legal fees
Repairs and maintenance
Total Expenses Before
Depreciation
Depreciation
$
Total
Program
Services
3,390,818
142,879
52,106
199,875
229,257
114,517
2,944
2,721
3,961
53,446
24,011
23,709
259,446
255,731
255,991
97,577
1,050,721
86,736
22,314
649
2,068
274,437
4,172
72,104
122,608
1,050,721
437,449
40,437
44,263
37,999
103,923
3,094
9,297
22,751
5,459
87,733
174,031
118,656
11,178
730
20,312
22,356
910
65,522
20,197
103
689
910
86,511
3,252,126
183,179
2,323,033
110,538
138,963
781,503
6,316
6,495,625
300,033
3,435,305 $
2,433,571 $
138,963 $
787,819 $
6,795,658
5,459
Mailing and processing
Property taxes
Accounting
Total Expenses
Program Services
Education
Research,
and
Legislative
Investigation
Outreach
Action
and Action
1,077,950 $
113,647 $
535,259 $
87,370
1,284
12,807
25,360
199
5,050
See Independent Auditor's Report and Notes to Financial Statements
-5-
139,698
33,534
-0-
Supporting
Services
Fundraising
$
268,507 $
379,218 $
10,035
34,688
4,866
12,472
9,568
11,526
41,443
197,622
173,883
43,117
466,636
441,140
340,551
9,009
2,458
1,520
64,707
134,075
1,050,721
503,676
8,367
233,048
930
153,237
5,459
97,030
560,316
158,467
36,878
$
Total
4,038,543
187,602
69,444
298,165
33,534
36,878
16,729
1,424
1,359
17,639
89,294
652,920
9,475
1,222,158
6,316
8,370,703
315,824
662,395 $
1,228,474 $
8,686,527
- 5a -
FARM SANCTUARY, INC.
STATEMENT OF FUNCTIONAL EXPENSES
FOR THE THREE MONTH PERIOD ENDING DECEMBER 31, 2011
Program Services
Rescue,
Education
Research,
Shelter
and
Legislative
Investigation
and Adoption
Outreach
Action
and Action
$
341,654 $
318,977 $
17,600 $
112,346 $
18,380
8,863
662
1,730
4,687
4,159
336
2,758
Payroll
Supplies
Telephone
Postage
Printing
Travel
Total
Program
Services
790,577
29,635
11,940
765
236
36,087
34,686
54,319
42,252
70
945
2,556
14,205
11,723
9,148
49,726
67,223
90,043
25,999
229,046
3,629
5,117
376
590
166,652
921
54,959
32,082
229,046
226,161
Insurance
Miscellaneous outsourcing
9,611
5,742
Miscellaneous other
Mailing and processing
Property taxes
3,088
20,404
17,802
2,661
Utilities
Animal care and rehabilitation
Events and campaigns
5,323
Accounting
Legal fees
Repairs and maintenance
Total Expenses Before
Depreciation
Depreciation
Total Expenses
$
922
156
3,746
19,099
-0-
9,301
9,279
33,715
27,237
7,984
25
41,314
10,442
536
1,850
-025
54,142
719,844
26,696
692,076
21,357
25,080
231,635
3,737
1,668,635
51,790
746,540 $
713,433 $
25,080 $
235,372 $
1,720,425
See Independent Auditor's Report and Notes to Financial Statements
-6-
Supporting
Services
Fundraising
$
47,437 $
80,249 $
679
996
538
1,580
7,695
2,892
3,536
41,035
46,838
5,963
98,456
116,953
99,542
842
283
33,207
229,046
228,654
2,493
19,099
21,382
21,382
51,480
520
$
Total
918,263
31,310
14,058
32,450
21,166
117,645
48,923
7,984
19,525
4,744
1,253
1,278
19,525
4,769
56,673
162,523
1,068
234,331
534
2,065,489
53,392
163,591 $
234,865 $
2,118,881
- 6a -
FARM SANCTUARY, INC.
STATEMENTS OF CASH FLOWS
FOR THE TWELVE MONTH AND THREE MONTH PERIODS ENDING DECEMBER 31,
2012
Cash Flows from Operating Activities:
Increase in net assets
Adjustments to reconcile increase in net assets
to net cash provided by operating activities:
Depreciation
(Gain) on sale of investments
Donated stock
(Gain) on destruction of equipment
Unrealized (gain) on investments
Changes in operating assets and liabilities:
Inventory
Prepaid expenses
Accounts receivable
Contributions receivable
Promises to give
Accrued interest receivable
Accounts payable
Accrued liabilities
Deposits
$
2011
1,536,848
$
1,165,549
315,824
(60,022)
(47,613)
(300)
(221,657)
53,392
(15,463)
(16,001)
(111,196)
(28,543)
14,611
(138,031)
179,266
(107,933)
(7,808)
(2,419)
129,128
25,436
1,199
(18,483)
18,297
(176,312)
(296,035)
(108,900)
(7,817)
7,376
6,575
(1,138)
Net Cash Provided by Operating Activities
1,616,529
471,301
Cash Flows from Investing Activities:
Purchase of investments
Proceeds from sale of investments
Proceeds from insurance on destroyed fixed assets
Purchase of land, buildings, and equipment
(1,670,157)
1,510,779
16,961
(884,141)
(584,481)
578,544
155,809
(448,710)
(1,026,558)
(298,838)
Net Cash (Used) by Investing Activities
Cash Flows from Financing Activities:
Net Increase in Cash and Cash Equivalents
Cash and Cash Equivalents - Beginning of Period, as Restated
Cash and Cash Equivalents - End of Period
Donation of stock received
Net book value of fixed assets destroyed by fire
-0-
-0-
589,971
172,463
2,986,132
2,813,669
$
3,576,103
$
2,986,132
$
$
47,613
-0-
$
$
16,001
44,613
See Independent Auditor's Report and Notes to Financial Statements
-7-
FARM SANCTUARY, INC.
NOTES TO FINANCIAL STATEMENTS
FOR THE TWELVE-MONTH PERIOD ENDED DECEMBER 31, 2012 AND THE THREE-MONTH PERIOD
ENDED DECEMBER 31, 2011
Note 1 - Summary of Significant Accounting Policies
Nature of Activities
Farm Sanctuary, Inc. (Farm Sanctuary) was organized in Delaware in 1986 as a not-for-profit, nonstock corporation. Farm Sanctuary provides rescue and care for abused and neglected farm animals and
provides adoption service and information on farm animal care, educates and disseminates information on
farm animal issues, conducts cruelty investigations and assists authorities in farm animal cruelty cases,
and monitors legislative action, working with legislators on federal and state bills. Farm Sanctuary is
supported primarily through donor contributions and grants.
In 2011, Farm Sanctuary, LLC (Limited Liability Corporation) was formed for the purpose of holding
title to property that was transferred to Farm Sanctuary (see Note 12). Farm Sanctuary, LLC is a single
member LLC with Farm Sanctuary being its single member. For tax and financial reporting purposes the
LLC is considered a “disregarded entity” and all tax and financial information of the LLC is reported by
Farm Sanctuary.
In 2011, Farm Sanctuary, Inc. changed its year end from September 30 to December 31.
Basis of Accounting
The financial statements have been prepared on the accrual basis of accounting and accordingly
reflect all significant receivables, payables, and other liabilities.
Financial Statement Presentation
Farm Sanctuary complies with the provisions of the Financial Accounting Standards Board (FASB)
Accounting Standards Codification (ASC) 958 “Not-for-Profit Entities.” Under FASB ASC 958, Farm
Sanctuary Inc. is required to report information regarding its financial position and activities according to
three classes of net assets: unrestricted net assets, temporarily restricted net assets, and permanently
restricted net assets.
Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles
includes the use of estimates that affect the financial statements. Accordingly, actual results could differ
from those estimates.
Contributions
Farm Sanctuary accounts for contributions in accordance with the recommendations of the FASB
ASC 958 “Not-for-Profit Entities.” Under FASB ASC 958, contributions received are recorded as
unrestricted, temporarily restricted, or permanently restricted support, depending on the existence or
nature of any donor restrictions.
Contributions restricted by the donor are reported as increases in unrestricted net assets if the
restrictions expire in the reporting period in which the support is recognized. All other donor-restricted
contributions are reported as increases in temporarily or permanently restricted net assets, depending on
the nature of the restriction. When a restriction expires (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 the Statement of Activities as net assets released from restrictions.
Property and Equipment
All acquisitions of property and equipment and all expenditures for repairs, maintenance, and
betterments costing $2,000 or more that materially prolong (one year or greater) the useful lives of assets
are capitalized. Property and equipment are carried at cost or, if donated, at the approximate fair value at
the date of donation. Depreciation is computed using the straight-line method over three to 39 years.
-8-
FARM SANCTUARY, INC.
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
FOR THE TWELVE-MONTH PERIOD ENDED DECEMBER 31, 2012 AND THE THREE-MONTH PERIOD
ENDED DECEMBER 31, 2011
Cash and Cash Equivalents
For purposes of the Statement of Cash Flows, Farm Sanctuary considers all unrestricted highly liquid
investments with an initial maturity of three months or less to be cash equivalents.
Investments
Investments consist of U.S. Savings Bonds, U.S. Treasury notes, corporate bonds, equities, mutual
funds, and certificates of deposit with original maturities greater than three months and are carried at fair
value. Unrealized gains and losses are included in the change in net assets in the accompanying
Statements of Activities.
Inventory Valuation
Inventory is stated at cost of quantity on hand.
Donated Services
A substantial number of volunteers have donated significant amounts of time, services, and materials
on Farm Sanctuary’s behalf. The value of this contributed time and services has not been reflected in the
financial statements, inasmuch as no objective basis is available to measure the value of such services
and it does not meet the criteria for recognition under FASB ASC 958.
Income Tax Status
Farm Sanctuary is exempt from federal income tax under Section 501(c)(3) of the Internal Revenue
Code. In addition, Farm Sanctuary qualifies for the charitable contribution deduction under Section
170(b)(1)(A) and has been classified as an organization other than a private foundation under Section
590(a)(2).
Farm Sanctuary’s Forms 990, Return of Organization Exempt from Income Tax, for the periods
ending September 30, 2010 and 2011 and December 31, 2011 are subject to examination by the IRS,
generally for three years after they were filed.
Donated Assets
Donated marketable securities and other noncash donations are recorded as contributions at
estimated fair value at the date of donation.
Functional Allocation of Expenses
The costs of providing various programs and other activities have been summarized on a functional
basis in the Statements of Activities and in the Statements of Functional Expenses. Accordingly, certain
costs have been allocated among the programs and supporting services benefited.
Designation of Unrestricted Net Assets
Board designated net assets include a shelter reserve created by the Board of Directors. This amount
has been set aside to provide a reserve restricted specifically for use related to the safety and well-being
of sanctuary animals.
Evaluation of Subsequent Events
Farm Sanctuary has evaluated event transactions occurring between December 31, 2012 and
August 8, 2013, which is the date the financial statements were available to be issued, for possible
disclosure and recognition in the financial statements. Refer to Note 13.
Note 2 - Concentration of Credit Risk
Farm Sanctuary maintains cash balances at several financial institutions. From time to time, Farm
Sanctuary may have bank deposits in excess of the Federal Deposit Insurance Corporation (FDIC)
insurance limits.
-9-
FARM SANCTUARY, INC.
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
FOR THE TWELVE-MONTH PERIOD ENDED DECEMBER 31, 2012 AND THE THREE-MONTH PERIOD
ENDED DECEMBER 31, 2011
Note 3 - Investments
Investments consisted of the following at December 31,:
Cost
Stocks on hand
Corporate bonds
U.S. Savings Bonds
Equity mutual funds
Certificates of deposit
$
616
2,422,289
13,648
703,436
175,568
$
$
3,315,557
$
Cost
Stocks on hand
Equities
Corporate bonds
U.S. Savings Bonds
Equity mutual funds
Certificates of deposit
$
616
3,927
1,975,563
13,648
602,048
452,742
$
$
3,048,544
$
2012
Fair
Value
671
2,483,576
17,152
809,396
185,813
Unrealized
Gain (Loss)
$
55
61,287
3,504
105,960
10,245
3,496,608
$
2011
Fair
Value
662
4,213
1,895,960
17,000
609,209
480,894
Unrealized
Gain (Loss)
$
46
286
(79,603)
3,352
7,161
28,152
3,007,938
$
181,051
(40,606)
The fair value of certificates of deposit is estimated by the investment broker/dealer using a matrix
based on interest rates and penalties for early withdrawal. The estimated fair value may not reflect the
actual price that would be received if the certificates of deposit were to be sold prior to maturity.
Market Risk
Future changes in market prices may make a financial instrument less valuable. Ownership interest is
subject to the risk of loss from a decrease in value due to interest rate fluctuations which may result in a
decline that is other than temporary.
Note 4 - Fair Value Measurements
FASB ASC 820, “Fair Value Measurements and Disclosures,” establishes a framework for
measuring fair value. That framework establishes a fair value hierarchy that prioritizes the inputs to
valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted
quoted prices in active markets for identical assets or liabilities (Level 1 Measurements) and the lowest
priority to unobservable inputs (Level 3 Measurements). The three levels of the fair value hierarchy
under FASB ASC 820 are as follows:
Level 1 - Inputs to the valuation methodology are unadjusted quoted prices for identical assets or
liabilities in active markets that the Farm Sanctuary has the ability to access.
- 10 -
FARM SANCTUARY, INC.
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
FOR THE TWELVE-MONTH PERIOD ENDED DECEMBER 31, 2012 AND THE THREE-MONTH PERIOD
ENDED DECEMBER 31, 2011
Level 2 - Inputs to the valuation methodology include:




Quoted prices for similar assets or liabilities in active markets;
Quoted prices for identical or similar assets or liabilities in inactive markets;
Inputs other than quoted prices that are observable for the asset or liability;
Inputs derived principally from or corroborated observable market data by correlation or
other means.
If the asset or liability has a specified (contractual) term, the Level 2 input must be
observable for substantially the full term of the asset or liability.
Level 3 - Inputs to the valuation methodology are unobservable and significant to the fair value
measurement.
The asset’s or liability’s fair value measurement level within the fair value hierarchy is based on the
lowest level of any input that is significant to the fair value measurement. Valuation techniques used need
to maximize the use of observable inputs and minimize the use of unobservable inputs.
The following table sets forth by level, within the fair value hierarchy, Farm Sanctuary’s cash
equivalents and investments from its investment portfolio, at fair value at December 31,:
2012
Cash equivalents
Investments:
Certificates of deposit
Corporate bonds and notes
U.S. Savings Bonds
Equities
Equity mutual funds
Total Investments
Total Fair Value
Level 1
Level 2
$ 2,368,762 $
Level 3
$
$
185,813
202,965
-0-
185,813
2,483,576
17,152
671
809,396
3,496,608
202,965 $
-0- $
5,865,370
2,483,576
17,152
671
809,396
3,293,643
$ 5,662,405 $
Total
2,368,762
2011
Cash equivalents
Investments:
Certificates of deposit
Corporate bonds and notes
U.S. Savings Bonds
Equities
Equity mutual funds
Total Investments
Total Fair Value
Level 1
Level 2
$ 2,401,169 $
Level 3
$
$
480,894
497,894
-0-
480,894
1,895,960
17,000
4,875
609,209
3,007,938
497,894 $
-0- $
5,409,107
1,895,960
17,000
4,875
609,209
2,510,044
$ 4,911,213 $
- 11 -
Total
2,401,169
FARM SANCTUARY, INC.
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
FOR THE TWELVE-MONTH PERIOD ENDED DECEMBER 31, 2012 AND THE THREE-MONTH PERIOD
ENDED DECEMBER 31, 2011
Note 5 - Accounts Receivable
Accounts receivable consisted of the following at December 31,:
2012
Insurance reimbursement
Employee receivables
Other receivables
Total Accounts Receivable
$
-01,898
6,093
$
$
7,991
$
2011
171,801
15,456
-0187,257
No allowance for doubtful accounts has been recorded, as management believes receivables are fully
collectible.
Note 6 - Promises to Give
Unconditional promises to give consist of funds committed by various donors during the year.
These funds are expected to be received as follows:
December 31,
2012
$
225,008
-0225,008
December 31,
2011
$
197,200
20,000
217,200
-0-
-0-
Net unconditional promises to give
225,008
217,200
Less receivable in less than one year
(225,008)
(197,200)
Receivable in less than one year
Receivable in one to five years
Total Unconditional Promises to Give
Less discounts to net present value
Long-term Unconditional Promises to Give
$
-0-
$
20,000
Unconditional promises to give in more than one year have not been discounted because the
discount is considered immaterial to the financial statements. Unconditional promises to give are
deemed 100% collectible by Farm Sanctuary and therefore, no allowance for uncollectible accounts has
been recorded.
Note 7 - Land, Buildings, and Equipment
Land, buildings, and equipment consisted of the following at:
Assets
Land
Buildings and improvements
Equipment
Software
Totals
$
$
Cost
285,283
5,355,249
1,171,914
138,977
December 31, 2012
Accumulated
Depreciation
$
-0- $
1,517,843
711,997
119,526
6,951,423 $
- 12 -
2,349,366
$
Book
Value
285,283
3,837,406
459,917
19,451
4,602,057
FARM SANCTUARY, INC.
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
FOR THE TWELVE-MONTH PERIOD ENDED DECEMBER 31, 2012 AND THE THREE-MONTH PERIOD
ENDED DECEMBER 31, 2011
Assets
Land
Buildings and improvements
Equipment
Software
Construction in process
Totals
$
$
Cost
285,283
4,337,095
972,356
138,977
358,411
December 31, 2011
Accumulated
Depreciation
$
-0- $
1,349,774
593,327
98,620
-0-
Book
Value
285,283
2,987,321
379,029
40,357
358,411
6,092,122
$
4,050,401
2,041,721
$
Depreciation expense for the periods ended December 31, 2012 and 2011 amounted to $315,824 and
$53,392, respectively.
Note 8 - Program and Supporting Services
The following program and supporting services are included in the accompanying financial
statements:
Rescue, Shelter, and Adoption
Providing rescue, rehabilitation, and care for abused and neglected farm animals, as well as
offering services involving adoptions, animal placement assistance, and animal care information.
Education and Outreach
Providing programs and disseminating literature and information to educate the public about
farm animal issues. Programs include farm tours, education centers, conferences, speaking
events, free literature distribution, volunteer and internship programs for hands-on experience,
and community outreach events.
Legislative Action
Monitoring federal and state legislation, informing the public on legislation involving farm
animals, and working with legislators on federal and state bills.
Research, Investigation, and Action
Conducting investigations of farm animal facilities, assisting police, attorneys, and humane
enforcement officers in farm animal cruelty cases, encouraging communities to increase legal
protection for farm animals, and encouraging consumers and businesses to consider farm animal
issues in their decision-making processes.
Supporting Services
Providing general support services for Farm Sanctuary’s program services including mail
processing, mailing list maintenance, accounting, charity registrations, and personnel matters.
Fundraising
Promoting Farm Sanctuary and developing membership programs to maintain and increase
membership donations, grant applications, and general fundraising projects.
- 13 -
FARM SANCTUARY, INC.
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
FOR THE TWELVE-MONTH PERIOD ENDED DECEMBER 31, 2012 AND THE THREE-MONTH PERIOD
ENDED DECEMBER 31, 2011
Note 9 - Joint Costs of Activities which Include a Fundraising Appeal
Farm Sanctuary achieves some of its programmatic and general goals via direct mail campaigns
which include requests for contributions. Costs that were not directly attributable to either the program or
the fundraising component of these activities were $770,525 and $164,468 for the twelve month period
ending December 31, 2012 and the three month period ending December 31, 2011, respectively.
Education and outreach
Research, investigation and action
Fundraising
Total
$
$
2012
259,923
59,736
450,866
770,525
$
$
2011
53,587
32,512
78,369
164,468
Note 10 - Restatement of Net Assets
Beginning net assets were restated by $156,556 and $19,060, when management discovered
unrecorded revenue of $156,556 and $19,060 from the three month period ending December 31, 2011
and the twelve month period ending September 30, 2011, respectively. The effect on the financial
statements increased beginning net assets, cash equivalents, and revenue in the amount and prior
periods described above.
Note 11 - Board Designated Net Assets
Board designated net assets are available for the following purposes at December 31,:
Restricted Shelter Fund
$
2012
1,375,459
$
2011
1,375,459
Note 12 - Temporarily Restricted Net Assets
Temporarily restricted net assets are available for the following purposes at December 31,:
Melrose Small Animal Hospital
Duck and Goose Pond
Legislative Fund
Shelter Projects
Run-in Cattle Shed
Rescue Transport Vehicle
Compassionate Communities-General
Compassionate Communities-Ad Campaign
Someone, Not Something Project-General
Someone, Not Something Project-Researcher
Total
$
$
2012
77,276
10,852
70,791
-025,000
3,907
16,377
102,735
106,500
40,000
453,438
$
$
2011
495,701
10,852
10,000
19,679
-0-0-0-0-0-0536,232
Note 13 - Loan Management Account
As of the report release date, Farm Sanctuary, Inc. is considering the use of a Loan Management
Account of an amount not to exceed $2.5 million with interest rates at LIBOR plus 2.25% collateralized by
certain eligible assets held at an affiliate of the lender.
- 14 -