The American Institute for Contemporary
German Studies at The
Johns Hopkins University, Inc.
Financial Statements and
Independent Auditor's Report
June 30, 2010 and 2009
The American Institute for Contemporary
German Studies at The
Johns Hopkins University, Inc.
Table of Contents
Page
Independent Auditor's Report
1
Statement of Financial Position
2
Statement of Activities
3
Statement of Cash Flows
4
Notes to Financial Statements
5-11
Independent Auditor's Report on Supplemental Information
13
Statement of Expenditures by Program
14
Statement of Functional Expenditures
15
William A. Russ, CPA
Independent Auditor's Report
To the Board of Directors
The American Institute for Contemporary German Studies
at The Johns Hopkins University, Inc.
Washington, DC
I have audited the accompanying Statements of Financial Position of The American
Institute for Contemporary German Studies at The Johns Hopkins University, Inc., (a
non-profit organization) as of June 30, 2010, and the related Statements of Activities and
Cash Flows for the year then ended. These financial statements are the responsibility of
the Institute's management. My responsibility is to express an opinion on these financial
statements based on my audit. The prior year summarized comparative information has
been derived from the Institute's 2009 financial statements and, in my report dated
September 20, 2009,1 expressed an unqualified opinion on those financial statements.
I conducted my audit in accordance with generally accepted auditing standards in the
United States of America. Those standards require that I plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. I believe my audit provides a
reasonable basis for my opinion.
In my opinion, the financial statements referred to above present fairly, in all material
respects, the financial position of The American Institute for Contemporary German
Studies at The Johns Hopkins University, Inc. as of June 30, 2010, and the changes in its
net assets and its cash flows for the year then ended in conformity with generally
accepted accounting principles.
September 20, 2010
2376 Tucker Lane, Baltimore, Maryland 21207,
(410) 448-9100,
WmRussCPA@aol.com
The American Institute for Contemporary German Studies
at The Johns Hopkins University
Washington, D.C.
Statements of Financial Position
June 30, 2010 and 2009
2010
Assets
Current
Cash and cash equivalents
Pledge receivables
Grants receivable
Other receivables
Prepaid expenses and other assets
$
Total current assets
Non-current
Furniture, equipment and leasehold improvements, less accumulated
depreciation of $162,035 in 2010 and $150,542 in 2009
Investments, at fair value
Total assets
Liabilities and Net Assets
Current Liabilities
Johns Hopkins University overdraft
Accounts payable
Net Assets
Unrestricted - undesignated
Unrestricted - board designated endowments
Total unrestricted
Temporarily restricted
Total net assets
Total liabilities and net assets
$
314,229
259,000
444,023
1,714
44,424
$ 426,706
232,300
368,817
11,795
48,524
1,063,390
1,088,142
24,259
2,477,795
35,753
2,172,280
2,502,054
2,208,033
3,565,443
3,296,175
2,382
32,563
14,862
34,945
14,862
443,737
2,477,795
2,921,533
548,903
2,172,280
2,721,183
608,964
560,130
3,530,498
3,281,313
3,565,443
$3,296,175
The accompanying notes are an integral part of these financial statements.
-2-
2009
The American Institute for Contemporary German Studies
at The Johns Hopkins University
Washington, D.C.
Statements of Activities
For The Years Ended June 30,2010 and 2009 (summarized)
Revenue
Contributions and grants
Interest, dividends and realized gains
Other revenues
Unrealized appreciation (loss) of investments
reported at fair value
Total revenues
Net assets released from restrictions:
Satisfaction of program restrictions
Net revenues
Unrestricted
2010
Temporarily
Restricted
$
$
921,398
66,042
16,507
2009
Total
Total
665,642
47,913
223,345
$ 1,587,040
113,955
16,507
223,345
1,227,292
713,555
1,940,847
664,721
(664,721)
-
1,892,013
48,834
1,921,972
114,070
19,476
(661,086)
1,394,432
1,940,847
1,394,432
1,150,078
259,259
282,325
1,165,434
175,760
442,544
1,783,738
Expenditures
Program expenditures
Fund raising
Management and general
1,150,078
259,259
282,325
Total expenditures
1,691,662
-
1,691,662
200,351
48,834
249,185
(389,306)
2,721,183
560,130
3,281,313
3,670,619
608,964
$ 3,530,498
Change in net assets
Net assets at beginning of year
Net assets at end of year
$ 2,921,533
$
The accompanying notes are an integral part of these financial statements.
-3-
$ 3,281,313~
The American Institute for Contemporary German Studies
at The Johns Hopkins University
Washington, B.C.
Statement of Cash Flows
For the Years Ended June 30,2010 and 2009
2010
2009
Cash flows from operating activities:
Change in net assets
Adjustments to reconcile change in net
assets to net cash used by operating activities:
Unrealized loss (gain) on investments
Depreciation
Decrease (increase) in pledges receivable
Decrease (increase) in grants receivable
Decrease (increase) in other receivables
Decrease (increase) in prepaid expense
Increase (decrease) in JHU overdraft
Increase (decrease) in accounts payable
Net cash provided by operating activities
Cash flows from investing activities:
Interest earned on board designated endowment
Contributions designated to endowments
Purchase of additional shares in JHU endowment fund
Distributions from JHU - board designated endowments
Distributions from JHU - held pending disposition
Amount reinvested in board designated endowment
Investment in computers and phone system
Net cash used in investing activities
Net increase (decrease) in cash
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
$
249,185
(223,345)
11,494
(26,700)
(75,206)
10,081
4,101
2,382
17,701
(30,307)
661,085
13,953
(82,728)
45,822
(7,247)
(452)
(445)
(81,725)
(567)
(46,952)
(35,732)
47,519
111,536
(111,536)
(49,421)
191,707
-_
(82,170)
(148,612)
(20,821)
(205,165)
(112,477)
(13,458)
426,706
440,164
$ 314,229
$ 426,706
The accompanying notes are an integral part of these financial statements.
-4-
$ (389,305)
The American Institute for Contemporary German Studies
at The Johns Hopkins University, Inc.
Washington, D.C.
Notes to Financial Statements
June 30, 2010 and 2009
Note 1 Organization and Summary of Significant Accounting Policies
Organization
Located in Washington, D.C., the American Institute for Contemporary German Studies
at The Johns Hopkins University, Inc. (Institute) is an independent, non-profit public policy
organization, which works in Germany and the United States to address current and emerging
policy challenges. Founded in 1983, the Institute is affiliated with The Johns Hopkins University
(University). The Institute is governed by its own Board of Trustees, which includes prominent
German and American leaders from the business, policy, and academic communities. Through
original analyses, dialogue, conferences, and other activities, AICGS is helping to sustain
German-American and transatlantic cooperation in a new century. In 2007 an independent
association called AICGS e. V. was established under the laws of the Federal Republic of Germany.
This eingetragener Verein was established to allow German residents to make tax deductible
donations to support the mission of the Institute.
Summary of Significant Accounting Policies
Cash and Cash Equivalents
Cash and cash equivalents consist of demand deposits with financial institutions and with
the University. The University holds and disburses the Institute's funds in support of its normal
operations. Net cash (overdraft) on deposit with the University on June 30, 2010 and 2009
amounted to $(2,382) and $76,952 respectively.
Fund Accounting
To insure the observance of limitations and restrictions placed on the use of resources
available to the Institute, the accounts of the Institute are maintained in accordance with the
principles of fund accounting. This is the procedure by which resources for various purposes are
classified for accounting and recording purposes into funds established according to their nature
and purposes. Separate accounts are maintained for each fund; however, in the accompanying
financial statements, funds that have similar characteristics have been combined into fund groups.
All the Institute's financial transactions have been recorded as operating funds and classified as
either unrestricted or temporarily restricted.
The Institute reports gifts of cash and other assets as restricted support if they are
received with donor stipulations that limit the use of the donated assets. When a donor restriction
expires, that is, when a stipulated time restriction ends or the 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.
Unrestricted Funds
Operating funds that are not restricted by the donor are reported as revenue in the period
received. Pledges, less an allowance for un-collectible amounts, are recorded as receivables in the
period pledged.
-5-
The American Institute for Contemporary German Studies
at The Johns Hopkins University, Inc.
Washington, B.C.
Notes to Financial Statements
June 30,2010 and 2009
Note 1 Organization and Summary of Significant Accounting Policies (Continued)
Temporarily Restricted Funds
Gifts of cash or other long-lived assets with explicit restrictions that specify how the
assets are to be used are reported as temporarily restricted support. Absent explicit donor
stipulations about how those long-lived assets must be maintained, the Institute reports expirations
of donor restrictions when the donated or acquired long-lived assets are placed in service.
Board Designated Endowment
Unrestricted contributions have been designated by the Institute's Board of Directors as
endowment funds. Donors have stipulated certain contributions be invested in this otherwise
unrestricted endowment funds. Accordingly, additional contributions from donors have been
invested into one of two board designated endowment funds. As of June 30, 2010, the Institute
has not received any permanently restricted contributions.
A portion of the Institute's endowment funds have been invested in The Johns Hopkins University
endowment pool with the remaining funds invested in a money market bank account. A portion of
the endowment fund income and gains (realized and unrealized) have been designated to benefit
the Institute's Harry & Helen Gray Culture & Politics Program with the remaining funds
supporting general operations. The fair market value of the endowment funds invested at June 30,
2010 and 2009 are as follows:
2010
2009
Humanities program
$ 957,317
$
862,163
General operations
1,520,478
1,310,117
Total endowment funds
$2,477,795
$ 2,172,280
An additional $94,500 and $35,732 was designated by the Institute's Board of Directors as
endowment funds during the years ending June 30, 2010 and 2009, respectively.
Equipment
Equipment has been stated at cost. Depreciation is provided on the straight-line method
over the estimated useful lives of the assets. Repairs and maintenance are charged to earnings as
incurred. Leasehold improvements are capitalized. When assets are sold, retired, or otherwise
disposed of, the applicable costs and allowances are removed from the accounts and the resulting
gain or loss is recognized. Depreciation expense was $11,494 and $13,953 for the years ending 30
June 2010 and 2009, respectively.
The American Institute for Contemporary German Studies
at The Johns Hopkins University, Inc.
Washington, B.C.
Notes to Financial Statements
June 30,2010 and 2009
Note 1 Organization and Summary of Significant Accounting Policies (Continued)
Use of Estimates
The preparation of the financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclose of contingent assets and liabilities at the
date of the financial statements and reported amounts of revenue and expenses during the
reporting period. Actual results could differ from those estimates.
Comparative Amounts
The amounts shown for 2009 in the accompanying statement of activities are included to
provide a basis for comparison with 2010. They do not include all of the information necessary
for a fair presentation of the 2009 activities in conformity with generally accepted accounting
principles.
Fair Value Measurements
The Institute categorizes its assets measured at fair value into a three-level hierarchy
based on the priority of inputs to the valuation technique used to determine fair value. The fair
value hierarchy gives the highest priority to quoted prices in active markets for identical assets
(Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used in the
determination of the fair value measurement fall within different levels of the hierarchy, the
categorization is based on the lowest level input that is significant to the fair value measurement.
Assets valued at fair value are categorized based on the inputs to the valuation techniques as
follows:
Level 1 - Valuations based on unadjusted quoted prices for identical assets or liabilities in
active markets;
Level 2 - Valuations based on quoted prices for similar assets or liabilities or identical
assets or liabilities in less active markets, such as dealer or broker markets; and
Level 3 - Valuations derived from valuation techniques in which one or more significant
inputs or significant value drivers are unobservable, such as pricing models, discounted
cash flow models and similar techniques not based on market, exchange, dealer or broker
traded transactions. The only assets or liabilities which are valued at fair value on a
recurring basis consist of investments in equity securities and mutual funds.
-7-
The American Institute for Contemporary German Studies
at The Johns Hopkins University, Inc.
Washington, D.C.
Notes to Financial Statements
June 30, 2010 and 2009
Note 2 Temporarily Restricted Net Assets
Temporarily restricted net assets available for the Institute's programs after June 30 are
as follows:
Bosch Religion & Politics Project
Business & Economics Program
Society, Culture & Politics Program
DAAD Fellowship
Daimler Energy Policy Program
Deutsche Bank Fellowship
DGroup Security Project
Draeger Foundation Lecture Series
Elfriede Drager Global Governance Project
ERP 60th Anniversary of the FRG
F.H. Langhammer Luncheon Series
GMF Work Study Groups
Harry and Helen Gray Culture & Politics Program
NRW Fellowship
Other Programs
Foreign & Domestic Policies Program
Thyssen Terrorism Conference
$
2010
2009
$
30,787
10,470
321,147
63,412
6,986
31,896
16,417
3,979
38,196
32,307
28,190
7,997
14,578
2,602
112,374
16,616
17,684
119,801
7,848
21,123
121,813
39,213
31,071
11,584
7,681
53,322
$ 608,964
$ 560,130
Note 3 Contributions and Grants
Contributions and grants consist of the following as of June 30, for the following years:
2010
Unrestricted trustee contributions
Unrestricted membership donations
Global Leadership Award Dinner revenues
Other contributions
Unrestricted contributions and support
Restricted trustee donations
Restricted membership donations
Other restricted grants
Restricted contributions and support
Total contributions and support
$ 209,479
83,890
533,529
94,500
921,398
2009
$
474,221
85,459
834,208
1,393,888
107,215
110,437
447,990
665,642
53,616
69,257
405,211
528,084
$ 1,587,040
$ 1,921,972
The American Institute for Contemporary German Studies
at The Johns Hopkins University, Inc.
Washington, B.C.
Notes to Financial Statements
June 30,2010 and 2009
Note 4 Investments
The Institute has invested its endowment funds into the University's Endowment Pool
and in a money market fund at a bank. Contributions into the endowment pool, reinvested
earnings and realized gains for the years ending on June 30 are as follows:
Board Designated Investments
2010
Cost
Investment in JHU Endowment Fund
Humanities endowment
$
640,200
Board endowment
1,610,948
1
2,251,148
Market
~$
Accumulated
Unrealized
Gain (Loss)
957,317
1,520,478
$
2,477,795
$
317,117
(90,470)
226,647
2009
Cost
Investment in JHU Endowment Fund
Humanities endowment
$
640,200
Board endowment
1,528,779
~$2,168,979
Market
$
862,162
1,310,118
~$
2,172,280
Accumulated
Unrealized
Gain (Loss)
$ 221,962
(218,661)
~$
Note 5 Fair Value Measurement
The Institute uses fair value measurement to record fair value adjustments to certain assets and to
determine fair value disclosures. For additional information on how the Institute measures fair
value refer to Note 1 - Organization and Summary of Significant Accounting Policies.
Investment in JHU Endowment Fund and Commercial Money Market Account - Shares in
the JHU Endowment Pool are valued at the Institute's proportional share of the pool's investment
in debt and equity securities. Such investments are classified within Level 1 of the valuation
hierarchy.
-9-
3,301
The American Institute for Contemporary German Studies
at The Johns Hopkins University, Inc.
Washington, D.C.
Notes to Financial Statements
June 30, 2010 and 2009
Note 5 Fair Value Measurement (continued)
The following table presents assets measured at fair value by classification within the fair value
hierarchy as of June 30, 2010:
Fair Value Measurements Using
Significant
Quoted Prices in
Active Markets for
Shares in JHU
Endowment Pool
Deposits at
commercial banks
Total
$
Other
Significant
Observable Unobservable
Identical Assets
Inputs
Inputs
(Level 1)
(Level 2)
(Level 3)
$
$
2,247,014
230,781
2,477,795
-
Total
-
$ 2,247,014
-
230,781
$
$ 2,477,795
The following table presents assets measured at fair value by classification within the fair value
hierarchy as of June 30, 2009:
Fair Value Measurements Using
Significant
Other
Significant
Quoted Prices in
Active Markets for Observable Unobservable
Inputs
Inputs
Identical Assets
(Level 2)
(Level 3)
(Level 1)
Shares in JHU
Endowment Pool
Deposits at
commercial banks
Total
2,023,668
$
148,612
2,172,280
- 10-
Total
$ 2,023,668
148,612
$
$ 2,172,280
The American Institute for Contemporary German Studies
at The Johns Hopkins University, Inc.
Washington, B.C.
Notes to Financial Statements
June 30, 2010 and 2009
Note 6 Lease Obligation
The University has entered into a lease of the office space used by the Institute at 1755
Massachusetts Avenue, NW, in Washington, D.C. The Institute reimburses the University for its
use of this space. The lease period extends to 31 March 2014 and is classified as an operating
lease. Rent expense was $232,610 and $224,094 for the years ended June 30, 2010 and 2009,
respectively. The Institute's minimum lease obligation for years ending on June 30 are as follows:
Year
Amount
2011
2012
2013
2014
237,933
247,450
257,348
198,744
Note 7 Tax Status
The financial statements do not include a provision for income taxes because the
Institute is a tax-exempt organization. Should that status be challenged in the future, the
Institute's 2007, 2008 and 2009 tax years are open for examination by the IRS. The IRS
has not classified the Institute as a private foundation.
Note 8 Pension and Post-Retirement Benefit Plans
The Institute participates in a multi-employer defined contributions pension plan of the
University. The plan is available to substantially all employees. The Institute pays its portion of
the cost of this plan through the fringe benefits charge it is assessed by the University. During the
years ended June 30, 2010 and 2009, the Institute contributed $198,365 and $210,889 into the
University's fringe benefits pool, respectively.
Note 9 Subsequent Events
Management evaluated subsequent events through September 20,2010, the date the
financial statements were available to be issued. Events or transactions occurring after June 30,
2009, but prior to September 20, 2010, that provided additional evidence about conditions that
existed at June 30, 2010, have been recognized in the financial statements for the year ended June
30, 2010. Events or transactions that provided evidence about conditions that did not exist at June
30, 2010 but arose before the financial statements were available to be issued have not been
recognized in the financial statements for the year ended June 30, 2010.
-11-
The American Institute for Contemporary
German Studies at The
Johns Hopkins University, Inc.
Supplementary Information
June 30,2010 and 2009
-12-
William A. Russ, CPA
Independent Auditor's Report on Supplementary Information
To the Board of Directors
The American Institute for Contemporary German Studies
at The Johns Hopkins University, Inc.
Washington, DC
My report on my audit of the basic financial statements of The American Institute for
Contemporary German Studies at The Johns Hopkins University, Inc., for the year ended
June 30, 2010 appears on page 1. My audit was conducted for the purpose of forming an
opinion on the basic financial statements taken as a whole. The supplementary
information for the year ended June 30, 2010 and prior year summarized comparative
information derived from the Institute's 2009 financial statements presented on the
following pages is presented for purposes of additional analysis. Such information has
been subject to the auditing procedures applied in the audit of the basic financial
statements and, in my opinion, is fairly stated in all material respects in relation to the
basic financial statements for the year ended June 30, 2010 taken as a whole.
September 20, 2010
-13-
2316 Tucker Lane, Baltimore, Maryland 21207,
(410) 448-9100,
WmRussCPA@aol.com
The American Institute for Contemporary German Studies
at The Johns Hopkins University
Washington, D.C.
Statement of Expenditures by Program
For The Years Ended June 30, 2010 and 2009 (summarized)
2010
Bosch Muslim Integration Project
Bosch Religion & Politics Project
2009
Direct Costs
Shared Costs
$
$
99,656
20,478
Total Charged to Programs
$ 120,134
$
16,038
-
78,799
55,698
88,463
103,350
119,140
45,075
164,215
166,199
DAAD Fellowships 2010-2012
91
23,232
23,323
Daimler Energy Policy Program
3,803
10,175
13,978
-
-
Business & Economics Program
32,765
DAAD Fellowships 2007-2010
DaimlerChrysler Regulatory Dynamics 2005-2006
-
DaimlerFonds Transatlantic Climate & Energy
862
Deutsche Bank Economic Roundtable/Fellowhip Series
Draeger Foundation NGOs and Global Governance
-
-
9,544
15,585
15,585
-
10,047
10,909
35,706
19
10,721
10,740
-
19,705
29,576
49,281
38,747
-
-
DGroup Security Project
Draeger Foundation Lecture Series
145,318
-
35,844
ERP 60th Anniversary of the FRG
112,342
32,187
144,529
80,655
F.H. Langhammer Luncheon Series
22,339
42,075
64,414
74,106
German Marshall Fund of the U.S. Work Study Group - Elections 2009-2010
39,213
25,192
64,405
66,774
German Marshall Fund of the U.S. Work Study Group EU 2008-2009
36,804
21,791
58,595
29,135
Harry and Helen Gray Culture & Politics Program
46,283
13,457
59,740
69,357
German Elections Conference
30,500
9,343
39,843
-
10
19,312
19,322
Policy Studies Program
26,236
52,449
78,685
105,094
Society, Culture & Politics Program
14,247
29,133
43,380
85,985
Steven Muller New Initiatives Fund
-
15,779
15,779
7,757
50,721
11,850
62,571
14,124
(7,799)
2,186
2,902
NRW Fellowship
Thyssen Terrorism Conference
Shared program costs (net)
9,985
664,721
$
485,357
The accompanying notes are an integral part of these financial statements.
See Independent Auditor's Report on Supplimentary Information.
- 14-
$1,150,078
-
$
1,165,434
The American Institute for Contemporary German Studies
at The Johns Hopkins University
Washington, D.C.
Statement of Functional Expenditures
For The Years Ended June 30,2010 and 2009 (summarized)
2010
Program
Services
$
Salaries
Personnel benefits
Books, subscriptions, reference
Equipment rental and maintenance
General office
409,941
Management
Fundraising
$
133,027
829
93,410
32,554
$
Telephone
81,472
7,866
(2,533)
3,888
304
6,934
17,893
142,862
Travel
Seminars/conferences/workshops
Award dinner/project development
$ 569,193
198,365
6,084
48,301
18,894
57,781
1,728
74,199
2009
Total
6,582
415
151,137
Printing & copying
65,842
32,784
973
18,916
Occupancy
Total
& General
2,457
$
618,778
210,889
829
7,555
25,415
232,609
53,634
22,085
168,690
57,781
78,384
1,051
15,239
27,156
224,094
65,660
19,686
122,573
51,508
1 14,204
Admin overhead
16,370
16,370
19,027
Donation return
918
513
1,865
5,985
444
76,000
78,600
43,577
918
3,052
11,493
78,540
12,148
76,000
78,600
1,390
6,264
13,953
91,287
17,793
84,585
78,600
$ 1,150,078
$ 259,259
Membership fees bank fees, staff dev.
Depreciation
General contractual services
Consultants/professional fees
Honoraria
Stipends
2,539
9,629
28,978
11,704
$
282,325
$1,691,661
—
The accompanying notes are an integral part of these financial statements.
See Independent Auditor's Report on Supplimentary Information.
- 15-
$
1,783,737