THE ARC | 2010 ANNUAL REPORT


COMBINED STATEMENT OF FINANCIAL POSITION AS OF DECEMBER 31, 2010


INDEPENDENT AUDITORS’ REPORT


To the Board of Directors The Arc of the United States The Foundation of the Arc of the United States Washington, D.C.


We have audited the accompanying combined statement of financial position of The Arc of the United States (The Arc) and The Foundation of the Arc of the United States (the Foundation), collectively the Organizations, as of December 31, 2010, and the related combined statements of activities and change in net assets, functional expenses and cash flows for the year then ended. These combined financial statements are the responsibility of the Organizations’ management. Our responsibility is to express an opinion on these combined financial statements based on our audit. The prior year summarized comparative information has been derived from The Arc’s combined financial statements for the year ended December 31, 2009 and, in our report dated March 20, 2010, we expressed an unqualified opinion on those statements.


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We conducted our audit 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 combined financial statements are free of material misstatement. An audit includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Organizations’ internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the combined financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall combined financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.


In our opinion, the combined financial statements referred to above present fairly, in all material respects, the combined financial position of the Organizations as of December 31, 2010, and their combined change in net assets and their combined cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America.


CURRENT ASSETS Cash and cash equivalents


Cash held for endowment (Note 11)* Investments (Notes 2 and 10)*


Accounts receivable and advances, net of allowance for doubtful accounts of $143,454 during 2010 Grants receivable Prepaid expenses


Total current assets FIXED ASSETS Furniture and equipment


Less: Accumulated depreciation and amortization Net fixed assets


OTHER ASSETS Other assets


Investment held for beneficial interest in perpetual trust (Notes 3 and 10)*


Total other assets TOTAL ASSETS


LIABILITIES AND NET ASSETS CURRENT LIABILITIES


Accounts payable and accrued liabilities Deferred revenue


Due to Related Parties (Note 6)* Grants payable


Total current liabilities NET ASSETS


Unrestricted: Undesignated


Board-designated (Note 4)* Total unrestricted net assets


GELMAN, ROSENBERG & FREEDMAN CERTIFIED PUBLIC ACCOUNTANTS


April 30, 2011


Temporarily restricted (Note 5)* Permanently restricted (Note 11)*


Total net assets TOTAL LIABILITIES AND NET ASSETS


446,932 740,457


1,187,389 5,758,576


2,114,593 9,060,558


$ 9,540,315


$ 406,942 33,075 33,284 6,456


479,757 998,719


(915,665) 83,054


22,373


1,122,497 1,144,870


$ 9,540,315 ASSETS


$ 3,001,293 -


4,842,647 150,221


301,928 16,302


8,312,391


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