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Reading 5 NASAA Training How to Assess Nonprofit Financial Performance Elizabeth K. Keating, CPA Assistant Professor of Accounting and Information Systems Kellogg Graduate School of Management Northwestern University 2001 Sheridan Drive, Room 6226 Evanston, IL 60208-2002 Tel: (847) 467-3343 Fax: (847) 467-1202 E-Mail: [email protected] Peter Frumkin Assistant Professor of Public Policy Kennedy School of Government Harvard University 79 JFK Street Cambridge, MA 02138 Tel: (617) 495-8057 E-Mail: [email protected] With research assistance from: Robert Caton [email protected] Michelle Sinclair Colman [email protected] October 2001 09/10/2008 IV. UNDERSTANDING FINANCIAL STATEMENTS A. Overview This section will describe the structure underlying the financial statements and explain how the statements stated in the Form 990 differ from those in audited financial statements. Sample financial statements are included in this section, while sample 990 Tax returns are presented in Appendix 1.7 8 The accounting system for nonprofits is designed to capture the economic activities of the firm and its financial position. The financial statements are constructed based on the "Accounting Equation" in which: Assets = Liabilities + Net Assets This equation states that the things of value that the nonprofit organization owns (assets) are equal to its outstanding debt (liabilities) plus the portion of assets funded by the nonprofit's own resources (net assets). In a for-profit setting, net assets are labeled equity or net worth. Until the mid-1990s, nonprofits labeled this account fund balance. The accounting equation is the basis of one of the four financial statements called the Statement of Financial Position, Statement of Financial Condition or Balance Sheet. However, the accounting equation does not provide information on how or why the assets, liabilities or net assets changed over time. As a result, the financial statements provide a second report called the Statement of Activity or Income Statement. This statement explains how net 7 For more detailed explanation of the relation between GAAP, the IRS Form 990 and other nonprofit financial reports see Sumariwalla, R. D. and W. C. Levis. Unified Financial Reporting System for Not-for-Profit Organizations. San Francisco: Jossey-Bass, Inc. (2000). 8 To better understand the GAAP requirements for nonprofit organizations, see the AICPA Audit and Accounting Guide for Not-for-Profit Organizations put out by the American Institute for Certified Public Accountants. 28 assets changed from one date to another. Essentially, net assets increase when revenues are recorded and decrease when expenses are recorded as follows: Revenues – Expenses = Change in Net Assets In a for-profit context, revenues less expenses is called net income or net profit and is an indicator of the firm's success. For non-profits, the change in net assets is a surplus or deficit that is carried forward. Rather than focusing on profit, a nonprofit focuses upon fulfilling its mission. Therefore, the annual surplus or deficit is not necessarily informative about a non-profit's success. One way to assess a nonprofit's performance is to examine how it spends its resources. Hence, many nonprofits prepare a third financial statement called the Statement of Functional Expenses that depicts how total expenses are distributed between three functional areas: Total Expenses = Program Expenses + Fundraising Expenses + Administrative Expenses The distribution between these three areas is a reflection of the nonprofit's mission, values, success and accounting practices. There are two accounting methods that are commonly used by nonprofit organizations when maintaining their accounting records. The easiest system is the cash method of accounting. Under this system, the organization records revenues when cash is received and expenses when cash is paid. While simple, the cash method does not accurately reflect the economic condition of the nonprofit organization. For example, it can receive commitments for donations in advance of cash receipts or incur debts before paying the associated bills. As a result, an alternative method of accounting has been developed called the accrual method. CPAs prefer the accrual method since it requires that revenues be recorded when earned and expenses when incurred. 29 While the 990 tax form can be completed according to the cash method, audited financial statements must be presented on the accrual basis. For simplicity, many nonprofits maintain their records on a cash basis and convert them to an accrual basis at year-end to prepare the annual financial statements. To ensure that financial statements are presented in consistent fashion year to year and are comparable between firms, audited financial statements must be prepared in accordance with generally accepted accounting principles (GAAP).9 While an accrual-basis Statement of Activity portrays economic changes in the net assets of the firm, stakeholders may also want to understand the nature of cash inflows and outflows. So, an additional financial statement must be presented called the Statement of Cash Flows. The statement divides cash movements into three broad categories: Change in Cash = Cash from Operations + Cash from Investing + Cash from Financing Each of the four financial statements and accompanying footnotes will now be discussed in more depth. The financial statements of a fictitious nonprofit, the National Youth Training and Resources Organization (NYTRO), will be used as an illustration. B. Statement of Financial Condition (Part IV of the Form 990) The statement provides a snapshot at one point of time of the financial position of the nonprofit. The assets always balance the liabilities and net equity since each asset must be funded by resources provided by others or by the organization itself. The Statement of Financial Condition is generally prepared at the end of the fiscal year. Some larger organizations prepare 9 An independent body known as the Financial Accounting Standards Board (FASB) sets the accounting standards that are followed by for-profit and not-for-profit organizations. The Governmental Accounting Standards Board (GASB) sets generally accepted accounting principles for state and local governmental units. 30 this report quarterly or monthly. Figure 3 depicts the comparative statement of financial condition for NYTRO. The assets are listed in order of their liquidity, i.e. their ability to be converted into cash. The most common assets for nonprofits include: o Cash and cash equivalents: These are the funds on deposit in the bank or in highly liquid and secure securities, such as US treasury bills. In an audited financial statement cash (or any other asset) that is received with a donor-imposed restriction that limits its long term use must be classified in a separate account from the unrestricted cash. o Pledges or Grants Receivable: This represents amounts that have been committed to the organization by an outside donor. Rather than the full or gross amount that is due, these receivables are carried at net realizable value, i.e. the amount that the nonprofit expects to receive. o Prepaid Expenses: Costs, such as insurance, that are paid in advance of receiving benefits. This asset declines in value (and is recorded as an expense) as the benefit associated with this cost is consumed. o Investments: This represents the value of stocks and bonds that are held as investments. In audited financial statements, the amount reported is the fair market value on the date the financial statements are prepared. On the tax return, this amount may be the fair market value, the historical cost of the investments purchased or even the lower of the fair market value or the historical cost. o Fixed Assets: This account is also called Property, Plant and Equipment. This amount includes the historical cost of land as well as the net book value of other long-lived physical assets. The net book value is the historical cost of long-lived assets less accumulated 31 depreciation. The value of fixed assets on the balance sheet does not reflect fair market value or the cost of replacement, since these assets are not generally intended to be sold. Instead the accounting is designed to allocate the cost of a long-lived asset over its useful life. In general, the value of fixed assets is reduced each year by recording a non-cash depreciation expense. Often the value of the asset drops according to a straight-line method that reduces the value in equally sized increments over the estimated useful life of the asset. Note that prior to 1994, the full cost of purchasing a fixed asset was expensed immediately. Hence, many valuable tangible assets were not reflected as an asset in the financial records. When nonprofits implemented the new standard, many chose to not capitalize (i.e. record as an asset) the old fixed assets. As a result, many nonprofits have understated assets and net assets on their books. o Collections: Nonprofits may own works of art, historical treasures, or similar items that may not decline in value. Nonprofits must select a policy for recording collection items and consistently apply it to all collections. Some nonprofits chose to retroactively capitalize its collection that had been expensed and depreciate it. Others continued the policy of expensing all acquisitions and contributed collection items immediately. If the collection is capitalized, then depreciation need not be taken of the economic benefit of the asset is not consumed over time. The most common liabilities include: o Accounts Payable: Amounts owed to vendors or creditors for goods or services rendered; unpaid bills. Unpaid wages, taxes or grants can be included in this account or reported separately if significantly large. o Grants Payable: Grant amounts promised to individuals or other organizations. 32 o Refundable Advances: Also known as deferred revenue. Grants received from donors that have not been recognized as revenue because the conditions of the grant have not been met. o Due to Third Parties: Certain nonprofit organizations, such as the United Way and federated membership organizations, collect contributions from one group and transfer them to another nonprofit. When these organizations are operating as a transfer agent with no variance power to change the recipient, then the associated cash receipts are not recorded as revenues by the transfer agent, rather they are carried as liabilities. o Long Term Debt: The principal and interest owed to a creditor. These debts can be in the form of bank loans, publicly traded bonds, or privately arranged debt financing. The net assets are divided into three categories: o Unrestricted: The portion of net assets that is not restricted by donor-imposed stipulations. This amount is positive when the sum of historical revenues and gains from unrestricted contributions exceeds the amount of unrestricted expenses. The amount is negative when the total historical unrestricted expenses exceeds the unrestricted revenues. o Temporarily Restricted: The portion of the net assets that are limited by donor-imposed stipulations that either expire with time or can be fulfilled by actions of the organization. o Permanently Restricted: The portion of the net assets that are limited by donor-imposed stipulations that will not expire with time or be fulfilled by actions of the organization. An endowment is an example of permanently restricted funds. 33 FIGURE 3 Statement of Financial Condition National Youth Training and Resources Organization Comparative Statements of Financial Position For the Years Ended December 31, 1999 and 2000 1999 2000 Assets Cash Pledges Receivable (net) Investments Prepaid Expenses Fixed Assets (net) Total Assets Liabilities and Net Assets Liabilities Accounts Payable Grants Payable Refundable Advances Long Term Debt Total Liabilities Net Assets Unrestricted Temporarily Restricted Permanently Restricted Total Net Assets Total Liabilities and Net Assets $ $ 200,000 120,000 755,000 15,000 220,000 1,310,000 50,000 25,000 20,000 200,000 295,000 $ $ $ $ 325,000 45,000 645,000 1,015,000 1,310,000 $ 142,000 65,000 700,000 13,000 40,000 960,000 60,000 $ 60,000 $ 300,000 600,000 900,000 960,000 $ $ C. Statement of Activities (Part I of the Form 990) The Statement of Activities provides information on the operating activities of a nonprofit between one date and another. The statement provides information on the mix of revenues and expenses. It may also be a useful predictor of future activities. The statement measures activities as resources received and spent. In the case of a nonprofit, it may not fully capture the program service inputs, short-term outputs, or long term outcomes. To emphasize that the statement may not fully reflect an organization's activities, some nonprofits call this report the Statement of Revenues, Expenses, and Changes in Net 34 Assets. The statement of activity is divided between the activities that are unrestricted, temporarily restricted, and permanently restricted. It is generally presented in a multicolumnar format (as seen in Figure 4). When revenues are recorded, they are classified into one of the three columns based upon the intent of the donor. Unless otherwise specified, donations, fee for services, even investment income is considered to be unrestricted revenues. FIGURE 4 Statement of Activities National Youth Training and Resources Organization Statement of Activities For the Year Ended December 31, 2000 Changes in Unrestricted Net Assets: Revenues and Gains: Public Contributions (net) Program Service Revenue Investment Income Net Assets Released from Restrictions Total Revenues, Gains, Other Support Expenses and Losses: Program Services General Administration Fund-Raising Total Expenses and Losses Unrestricted Increase in Net Assets Net Assets at Beginning of Year Net Assets at End of Year $ $ 800,000 46,000 42,000 125,000 $ 1,013,000 $ Temporarily Restricted $ $ 165,000 Permanently Restricted $ 45,000 5,000 (125,000) 45,000 $ 45,000 676,000 197,000 115,000 988,000 $ 25,000 300,000 $325,000 Total $ 1,010,000 46,000 47,000 0 $ 1,103,000 $ $ $ 45,000 0 $45,000 $ 45,000 600,000 $645,000 676,000 197,000 115,000 988,000 $115,000 900,000 $1,015,000 The most common revenues for nonprofits are: o Contributions are an unconditional transfer of cash or other assets to a nonprofit or a settlement or cancellation of a liability in a voluntary nonreciprocal transfer. This includes unconditional promises to pay cash or other assets in the future. To be recognized as revenues, there must be some documentation to verify that the promise was made and received. 35 If a donor imposes a restriction on the contribution than the use of the contributed assets is limited; however, the donor can not demand repayment. These contributions are recorded as either temporarily or permanently restricted revenues depending on the donor's restrictions. When the restriction expires, the amount of the contribution is removed from the temporarily restricted section of the statement of activity and placed in the unrestricted column. In the case of NYTRO in Figure 4, $125,000 of previously restricted revenues were removed from the temporarily restricted column and recorded in the unrestricted section. If however the donor imposes a condition, then the proposed contribution may be rescinded. If the asset is received in advance of the condition being fulfilled, then the asset transfer is recorded as a liability (refundable advance) rather than a revenue. When the conditions are met, then this liability is eliminated, and revenues are recorded. Contributions are recorded at their fair market value at the time of the gift. If the contribution is a series of future cash payments, then the discounted present value of the payments is recorded in revenues immediately as if there were an implied interest rate associated with the donation. With the passage of time, the interest component of the contribution is recognized as a contribution. If uncertainty is associated with the future payments, the nonprofit can reduce the value of a contribution by the anticipated defaults. Some contributions are not provided in cash, rather they are in the form of in-kind goods and services. Organizations often seek to include these non-cash contributions to provide a more complete picture of the organization's funding sources and activities. When recorded 36 in the financial statements, they are recorded as equal and offsetting revenues and expenses. Recognition of most contributed goods and services can not be included in statement of activities on the Form 990, but can be disclosed in a later section. Under GAAP, most contributed goods can be recorded as an offsetting contribution and expense when the unconditional transfer occurs. Contributions of collection items are not required to be recognized as revenues under certain conditions. Contributed services can be recognized if they require specialized (i.e. professional) skills and create or enhance a nonfinancial asset. o Program Service Revenues are exchanges between a nonprofit and a another party, in which the nonprofit provides a service in exchange for a transfer of a cash or another asset. Increasingly nonprofits are relying on fees from governmental agencies or from clients to pay for services. o Membership Dues: Some organizations have members that pay an annual fee to receive some basic services. o Special Events Revenue: Revenues raised by special fundraising events are recorded separately from contributions. Under GAAP, the gross revenues from the events are recorded as revenues and the associated costs are shown as fundraising expenses. In the Form 990, the associated costs are recorded as a reduction in revenues rather than fundraising expenses. o Investment Income: This reflects the income earned off the investment portfolio. It includes dividends on stock as well as interest on bonds. Under the cash basis, this would be when the dividends and interest are received. Realized gains/losses on investment securities may be included in this account or under as its own line item. Under GAAP accounting, 37 investment income will also include changes in the market value of the investments, i.e. changes in the unrealized gains and losses in investment securities. In the Statement of Activities, the expenses are divided into three functional categories: o Program Expenses are the costs associated with the delivery of goods and services to beneficiaries, customers or members that fulfill the organizational mission. o Fundraising Expenses include publicizing and conducting fundraising campaigns, maintaining donor mailing lists, conducting special fund-raising events, preparing and distributing fund-raising manuals, and other activities involved in soliciting contributions or memberships. o Administrative Expenses include general and managerial costs such as oversight, business management, record-keeping, budgeting, financing and related administrative activities. D. Statement of Functional Expenses (Part II of the Form 990) The Statement of Functional Expenses is a statement that is unique to nonprofit organizations. It provides information on the distribution of costs between three functional categories and by natural categories, such as salaries, occupancy costs, and depreciation. If an organization has several major programs, it can separate program expenses into several categories as seen in Figure 5. For most organizations this statement is optional. Voluntary health and welfare organization, however, are required to issue this statement. Many costs are actually joint costs that are incurred to deliver both program and support services. When joint costs arise, the management must allocate the costs to the appropriate functional categories. 38 FIGURE 5 Statement of Functional Expenses National Youth Training and Resources Organization Statement of Functional Expenses For the Year Ended December 31, 2000 Salaries Employee Benefits Payroll Taxes Total Personnel Costs Professional Fees Supplies Telephone Postage Occupancy Costs Equipment Rental and Maintenance Printing and Publications Travel Conferences and Meetings Scholarships Interest Total before Depreciation Depreciation Total Expenses Program Services Educational/ Recreational Scholarships Programs $ 65,000 $ 88,000 15,000 22,000 7,000 11,000 $ 87,000 $ 121,000 45,000 10,000 10,000 15,000 10,000 5,000 20,000 20,000 5,000 20,000 40,000 20,000 143,000 $ 400,000 400,000 5,000 45,000 40,000 15,000 $ 276,000 276,000 Supporting Services General FundAdministration Raising $ 82,000 $ 15,000 20,000 3,000 10,000 1,500 $ 112,000 $ 19,500 45,500 8,000 8,000 7,000 7,000 5,000 3,000 15,000 3,000 20,000 2,000 1,000 7,500 14,500 26,000 3,000 - 192,000 5,000 197,000 $ 115,000 115,000 $ $ - $ Total Expenses $ 250,000 60,000 29,500 $ 339,500 45,500 71,000 39,000 23,000 58,000 30,000 93,000 84,000 42,500 143,000 14,500 $ $ 983,000 5,000 988,000 D. Statement of Cash Flows (not included in the Form 990) The final financial statement provides information on the cash inflows and outflows of the organization between one date and another. The cash flows are separated into three different business activities as shown in Figure 6: o Cash from Operating Activities: This section depicts the cash inflows and outflows arising for the organization's primary business of raising unrestricted and temporarily restricted funding and providing program services. 39 This section can be depicted in one of two formats. Both methods result in the same net cash from operating activities amount. In the main body of the cash flow statement in Figure 6 is the direct method that essentially restates the unrestricted and temporarily restricted portions of the income statement as if it were on the cash basis. The reconciliation at the bottom of the figure is an example of the indirect method. The indirect method starts with the change in net assets from the Statement of Activity and converts it from the accrual to cash basis using various adjustments. Given the design of accounting records, most nonprofits use the indirect format to depict their cash from operations. o Cash from Investing Activities: This section depicts the cash inflows and outflows associated with the purchase and sale of long-lived assets and investments. o Cash from Financing Activities: This section depicts the cash inflows and outflows associated with receipts and repayments of funds provided by creditors and by donors whose permanently restricted contributions are recognized in the statement of activity. When the three sections are totaled the statement of cash flows explains how the cash at the beginning of the reporting period was converted to the balance at the end of the period. 40 FIGURE 6 Statement of Cash Flows National Youth Training and Resources Organization Statement of Cash Flows For the Year Ended December 31, 2000 Cash Flows from Operating Activities: Cash Received from Unrestricted and Temporarily Restricted Contributors Cash Received from Service Recipients Grants Paid Cash paid to Employees and Suppliers Interest Paid Interest and Dividends Received Net Cash from Operating Activities Cash Flows from Investing Activities: Purchase of Investments Fixed Asset Purchases Net Cash Used for Investing Activities Cash Flows from Financing Activities: Addition to Endowment Issuance of Long Term Debt Net Cash from Financing Activities Net Increase in Cash Beginning Cash Balance Ending Cash Balance $ 930,000 46,000 (118,000) (837,500) (14,500) 37,000 $ 43,000 $ (45,000) (185,000) $ (230,000) $ $ $ 45,000 200,000 245,000 $ 58,000 142,000 200,000 $ 115,000 $ 5,000 (45,000) (55,000) 20,000 25,000 (10,000) (2,000) (10,000) 43,000 Reconciliation of change in net assets to net cash provided by operating activities Change in Net Assets Adjustments Depreciation Expense Restricted Contributions to Endowment Increase in Pledges Receivable Increase in Refundable Advances Increase in Grants Payable Decrease in Accounts Payable Increase in Prepaid Expenses Unrealized Gains in Long-Term Investments Net Cash Provided by Operations 41 E. Footnotes The footnotes are an important but often overlooked component of the audited financial statements. These notes describe the accounting principles used by the management of the nonprofit in preparing the financial statement. If joint costs are allocated, generally the footnotes will describe how these allocation decisions are made. The notes include a description of the entity being audited, which can include a depiction of the mission and key programs. If a nonprofit receives or has restricted funding, then the footnotes provide detailed information on the amounts, time and nature of stipulations imposed. Nonprofits can disclose the use of contributed services that are not recorded as revenues. If a nonprofit has expensed its collection, then it must describe its collection and accounting and stewardship policies for collections. It must also describe items that are removed from the collection for any reason and disclose the fair market value of those items. E. The Role of an External Auditor Depending on a nonprofit's size and funding sources, it may be required to have an annual financial audit. An audit is a systematic examination of the financial records of the organization. A financial audit undertaken by a certified public accountant (CPA) following a set of prescribed auditing procedures. The auditor's work may include examining the internal controls and a systematic analysis of the substantial transactions. The auditor is asked to provide an audit opinion on whether the financial statements are presented fairly in all material respects the financial position of the organization and in conformity with generally accepted accounting principles. If the auditors believe that the statements meet these expectations, then they issue an unqualified opinion as in Figure 7. If the financial statements do not meet these criteria, they can issue a qualified opinion, and the auditor's letter would indicate the reason for the qualification. 42 The auditors can also issue an unqualified opinion modified by explanatory language. For example, if they feel the statements are fairly stated but outside parties should be warned about a financial problem, they occasionally include wording indicating concern about an organization's ability to continue as a going concern. FIGURE 7 Unqualified Audit Opinion Independent Auditor's Report We have audited the accompanying statement of financial position of the National Youth Training and Resources Organization as of December 31, 2000 and the related statements of activities, functional expenses and cash flows for the year then ended. These financial statements are the responsibility of the management of the National Youth Training and Resources Organization. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. 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 includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes the assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the National Youth Training and Resources Organization as of December 31, 2000 and the changes in its net assets and its cash flows for the year then ended in conformity with generally accepted accounting principles. (Signature) (Date) As an alternative to a full financial audit, a nonprofit can hire an outside auditor to either compile or review the financial statements. A compilation means that the auditor has looked at the financial statements without verifying any of the balances or assuring that the statements 43 adhere to GAAP. With a review, an accountant has conducted an examination of the accounting records and provides an assurance that he is not aware of any material modifications needed to make the statements conform with GAAP. A review entails substantially more work for an auditor than a compilation, but it provides a negative, or weaker assurance, than an audit. These services may improve the reliability or relevance of the financial statements; however, the auditors have not thoroughly examined the financial records and are not providing an opinion on the accuracy of the financial statements. In either case, the auditors issue a letter that can be sent to outsiders. These letters will use the words compilation or review instead of audit. Generally, if a nonprofit organization receives $300,000 in federal awards either directly or indirectly, it is subject to a special A-133 audit. The Office of Management and Budget (OMB) Circular #133 prescribes the audit requirements which include a traditional financial audit as well as an audit to examine an organization's internal control structure in more detail, to verify that the federal funds were handled and spent in compliance with the grant, and to assess whether the organization is in compliance with various federal laws. These audits must be conducted by CPAs that have undertaken additional training. In addition to the audit opinion, most auditors also provide the nonprofit organization with information regarding their audit findings. These findings are shortcomings in the financial system, such as poor internal controls, weak accounting practices, or insufficient safeguarding of assets. The auditor often requests that these shortcomings be corrected before the next audit is conducted. To help assess the quality of financial management, board members and substantial stakeholders can request information regarding the audit findings. A final audit issue to consider is the quality of the auditor. Auditors vary considerably in their overall knowledge of accounting and auditing as well as their specific experience in not-for- 44 profits. Unfortunately, some auditors do not perform a quality audit of a not-for-profit. This may because they are inexperienced, are doing the work pro bono, or believe it is unlikely that there will be adverse consequences from doing a substandard job. Before relying on the auditor's opinion, it is important to determine whether the auditor completed a high-quality audit. F. Supplemental Disclosures in an Annual Report Some nonprofits prepare a special annual report that is distributed to donors or other interested parties. A recent study (Christensen and Mohr 2001) indicates that museums frequently prepare such reports. They found that the reports varied in length from 2 to 220 pages. Most but not all contained financial statements. The financial information comprised 10% of the report, in contrast to corporate annual reports that were 48% financial information. The museum reports often contain information on attendance, the donors and their giving levels, a description of the organization and its mission, and a discussion of the past year's activities including major acquisitions and tallies of volunteer hours. A similar study of environmental organizations (Khumawala, Gordon, and Kraut 2001) finds that financial information composes about 10% of the annual report; supplemental disclosures include program descriptions, the success of various lobbying efforts as well as lists of board members, donors and staff. G. Supplemental Disclosures in the Form 990 The Form 990 is designed primarily as an informational tax return. Hence, the form is designed to help the IRS determine if a nonprofit is in compliance with various federal laws and is permitted to maintain its tax-exemption. Figure 8 outlines the supplemental disclosures included in the Form 990. 45 FIGURE 8 Differences in Reporting Requirements Between the Form 990 and Audited Financial Statements Present in the Form 990 but not required for audited financial statements ! Information on officers, directors and compensation (was Schedule A, now Part V) ! Description of mission and program services (optional in audited financials) (Part III) ! Partial reconciliation between Form 990 and audited financial statements (Part IV-A and Part IV-B) ! Responses to yes/no questions regarding compliance with various legal requirements (Part VI) ! Analysis of income-producing activities (used to determine if firm is fulfilling operational tests required to maintain exempt status) (Parts VII and VIII) ! Ownership information on taxable subsidiaries (Part IX) ! Information regarding transfers associated with personal benefit contracts (Part X) Present in audited financial statements but missing from the Form 990: ! Information on whether the statements are audited and received a qualified or unqualified opinion ! Accounting principles used to prepare the statements ! Description of the entity being audited ! Cash flow statement ! Amounts, timing and conditions associated with restricted funds Practices in the Form 990 that are not consistent with Generally Accepted Accounting Principles (GAAP): ! The accounting method for many accounts are not disclosed in the 990 ! Use of an indeterminate basis for allocating joint costs to program activities rather than to administrative or fundraising activities in Form 990 ! Unrealized gains and losses on investments are reported in the Form 990 but are reflected in value of the investments and the equity in the audited financial statements ! Recognition of most contributed goods and services can not be included in the Form 990, while certain non-cash contributions can be included in the audited financials ! Limited or no information is disclosed about revenues and expenditures associated with restricted funds are provided in the 990 ! Indirect costs of selling merchandise (such as selling, general and administrative costs) can be included in cost of goods sold ! The 990 requires that nonprofits carry revenues from sales of merchandise, special events, and rental activities net of expenses as a gain/loss included in revenue rather than having the separate components shown in revenues and expenses. GAAP accounting allows netting of only for incidental or peripheral activities. 46 V. FINANCIAL PERFORMANCE MEASURES Based on the focus groups and informal interviews, we identified questions commonly asked by the stakeholders to assess the performance of a nonprofit: FIGURE 9 Questions Asked to Assess Financial Performance 1. Mission o What is your organizational mission? o Is the mission consistent with the stakeholder's values? o How does that translate into goals and objectives? o What is the business model/strategy? o What are present obstacles to fulfilling the mission? 2. Service Delivery o What is the demand for these services? o What type, volume and quality of services are delivered? o Are these services compatible with mission? o Are they meeting goals and objectives (are $ spent on right stewardship things)? o What are present obstacles in service delivery? 3. Organizational Management o What is the experience and expertise of management? o What is the quality of internal support systems? o What is the administrative efficiency? o What is the appropriateness of compensation? 4. Organizational Funding o What cash funds are available? o What non-cash contributions (goods, services volunteers) are used and available? o How financial supportive are board and community? o How financial supportive are commercial activities? o Is there continuity of support and diversity of income streams? o How compatible is the funding with the mission? o How efficiency is fundraising and development? o What are present obstacles in funding and support? 5. Financial Health o What is the cash flow position? o How financially stable is the organization? o Does it have accumulated wealth to sustain it if funding is reduced? 6. Financial Management o What is the quality of internal control system? o How prudent is the cash and investment management? o Are non-financial assets prudently managed? 47 For many stakeholders, the most critical questions relate to an organization's mission, its appropriateness, and its success in fulfilling it. These first two issues cannot be readily answered using financial or quantitative measures.10 This section will examine how the third issue of program accomplishment may be answerable, in part, through eight sets of financial measures. We will do this by describing various financial analysis techniques and how they apply in the nonprofit setting. These techniques have been drawn from a variety of sources including Tuckman and Chang 1991, Gross, Warshauer, Larkin 1991, Hodgkinson and Weitzman 1996, Stevenson, Pollak, and Lampkin 1997, Forrester 1998, Maddox 1999, and Froelich, Knoepfle, Pollak 2000. A. Peer Benchmarking In many cases, it is difficult to look at the financial statements alone and gain insight into the operation of the firm and its current and long-term prospects. Benchmarking a firm against a peer can lend perspective to the analysis. Several attributes should be considered when searching for an appropriate benchmark. Often computing an average of three to four organizations will create a benchmark that is not overly volatile. The peers should be roughly comparable in mission, industry classification, and size. When benchmarking compensation or changes in program services, it is often helpful to use nonprofit organizations in the same geographic area or sensitive to the same fluctuations in funding. The nonprofit itself may be able to suggest some suitable peers. Alternatively, one can search the IRS tax filings for similar organizations. The recent filings are industry coded using the National Taxonomy of Exempt Entities (NTEE). This 10 A publication that addresses these issues is The Five Most Important Questions You will Ever Ask about Your Nonprofit Organization by Peter F. Drucker. 48 classification system is being replaced by the North American Industry Classification System (NAICS), which also covers for-profit organizations.11 B. Common-Sizing Financial Statements To become familiar with an organization's emphasis, it is helpful to determine how its resources are distributed. This can be accomplished through common sizing, i.e. converting to percentages, several financial statements. The Statement of Financial Condition is generally divided by total assets, the Statement of Activities is divided by total revenues, and the Statement of Functional Expenses is divided by total expenses. The following insights can be developed: o Asset Concentrations: Analysis of the asset mix can help identify the resources available to deliver future services. Missing from this analysis is the value of a nonprofit's staff or any internally developed expertise. Many older nonprofits have not capitalized their fixed assets or may be holding valuable collections that are not reflected at their fair market value on the financial statements. Hence, an analyst may want to develop a list of unidentified assets. o Revenue Concentrations: By looking at the mix of revenues, one can assess a non-profit's reliance on different forms of revenue, see if this reliance has shifted over time, or if it has a substantially different profile from some if its industry peers. If a nonprofit is following GAAP and receives large multi-year grants then the contributions will be high in years that grants are awarded and relatively small in the subsequent years. A common practice when analyzing these firms is to average revenues over three years. o Expense Concentrations: This analysis can reveal the nature of the production function needed to run organization. For example, how important are personnel costs relative to total costs; does the organization provide indirect services through giving grants to others or 11 For more information on these classification systems, go to: http://nccs.urban.org/ntee-cc/index.htm 49 does it provide the services directly. The expense concentrations also indicate whether resources are consumed by delivering program services or support services (fundraising and administrative). One particular measure that many stakeholders use is the program efficiency ratio which is Program Expenses . This measure indicates what percentage of Total Expenses the resources consumed are used to provide program services. As seen in Appendix 3, several watchdog organizations rely on this as a key measure of success. The Chronicle of Philanthropy publishes comparative ratios for large nonprofits each year. Many nonprofits emphasize their efficiency in marketing materials, by stating things like for every dollar you give x% is spent on program. Unfortunately, this statement is often inaccurate. Many large contributions are provided on a temporarily restricted basis with stipulations that the funds be spent often exclusively on program services. The small, individual donations are then used to cover administrative and fundraising costs. Since the program efficiency ratio is a prominent ratio, it may be subject to financial misreporting. Nonprofits purchase goods and services that may provide benefits to program as well as fundraising and administration. Through an allocation process, joint costs such as salaries, employee benefits, and rent are distributed between the three functional areas. Historically, nonprofits have been accused of allocating too many costs of direct mail marketing campaigns to program expenses. GAAP now limits this joint cost allocation decision. With about one-third of all nonprofits reporting zero fundraising expenses on their 990 Form, it is suspected that some nonprofits still intentionally allocate a disproportionate amount to program expenses. Finally, assessing program efficiency using the Form 990 produces artificially favorable efficiency ratios. Since the Form 990 allows 50 the organization to record various administrative and fundraising costs as reductions in revenues rather than expenses, these support service expenses are understated relative to program expenses. C. Trend Analysis Another technique to analyze an organization is to conduct a trend analysis. For this approach, at least three years of financial information is required. The annual growth rates in important accounts such as program expenses, support services, total revenues, cash and compensation are computed. Generally, stakeholders look for positive and sustained growth in these categories with program expenses growing as fast or faster than support services or compensation. If this is not occurring, it may be that the organization had previously underinvested in compensation or support functions, or it may be an indicator that management is inefficient or is being excessively compensated or accepting perquisites, such as an expense account. If revenue growth consistently exceeds program service growth, it may be an indication that the organization is strengthening its long-term financial health or that it is not sufficiently expanding its programs. D. Comparisons in Relation to the Budget Another method of assessing an organization's performance is to compare its reported financial information to its budget. Most nonprofits undertake an annual budgeting process that entails developing budget projections for the following year, obtaining the approval of the board for incurring the anticipated expenses, carrying out its operations, and then reporting to the board on its performance for the year. The annual budget is not a formally disclosed document, but board members and selected donors can receive copies. 51 E. Profitability Measures In a for-profit setting, it is critical to know if the firm is operating profitably. For non-profits, the excess of revenues over expenses is not necessarily an indicator of good performance. In small non-profits, many budget their operations to ensure that they provide the maximum program services. One measure of that is whether revenues are fully consumed as expenses in the period received, i.e. the organization never reports a profit or a loss. As a firm becomes larger, it is more difficult to operate with expenses fully offsetting revenues. Larger nonprofits seek to regularly report a modest excess of unrestricted revenues over expenses, creating some slack in the organization that can be used to support services of there are delays in receiving funding or an unexpected drop in revenues. Larger organizations often have investments and some moneymaking activities. The objective is to generate a profit that can be used to finance the program services. For these activities, it is common to compare the profit to the size of the activity. For example: o Return on Investments is defined as o Gross Margin is defined as o Investment Income Average Investments Sales of Merchandise - Cost of Goods Sold Sales of Merchandise Margin on Rental Activities is defined as Rental Revenue - Rental Expenses Rental Revenue F. Liquidity Ratios A concern for many nonprofits is their ability to pay their obligations on time (liquidity). Today, in for-profit companies, liquidity is assessed by looking at free cash flows. This is often measured by: Cash from Operating Activities + Cash from (Nondiscretionary) Investments. Since the Form 990 does not require a cash flow statement, it often not possible to compute free cash flows. Instead, analysts compute more traditional liquidity measures as follows: 52 o Current Ratio is defined as Current Assets , where current assets are the assets that will Current Liabilities be converted into cash in the next 12 months, and current liabilities are the debts that become due in the next 12 months. It is measure of a nonprofit's ability to pay its obligations on time. Nonprofit balance sheets often do not classify assets and liabilities as current or long-term. An estimate of current assets includes cash, receivables, inventories, and prepaid expenses. An estimate for current liabilities is total liabilities minus bonds, mortgages and bank debt maturing in over one year. o Net Working Capital is defined as Current Assets- Current Liabilities. This is an alternative method of assessing a nonprofit's ability to pay its short-term obligations. o Days Cash On Hand is defined as Cash and Cash Equivalents . Assuming that the Monthly Expenses organization stops receiving revenues, this measures gives a sense of how many months a nonprofit can continue to pay bills. It has been suggested that having at least, three, if not six months of cash on hand is desirable. o Accounts Payable . This measure indicates how many months of expenses are still owed to Monthly Expenses creditors. G. Measures of Financial Distress or Vulnerability While liquidity measures help assess a nonprofit's ability to continue in operations in the short term, they not as helpful in predicting long term viability, i.e. solvency. The basic definition of solvency is whether net assets are positive. However, nonprofits can be viable with negative 53 net assets. This because many important assets of the firm are not recorded in the financial system at all or are severely understated. An alternative measure is leverage, which is often defined as Total Liabilities . The measure indicates how much of a nonprofit's assets are funded Total Assets by other people's money. Debt financing is important to allow nonprofit's to grow and to help asset intensive organizations support and expand their facilities. However, an overly high reliance on debt financing can put a nonprofit at risk. If creditors become concerned, they may demand debt repayment or be reluctant make new loans. If the nonprofit fails to make debt or interest payments in a timely fashion, the creditors can force the termination or liquidation of the organization. Several academic studies have examined the measures that are mostly likely to predict financial distress or vulnerability in the form of a substantial decline in program services or in net assets (Tuckman and Chang 1991, Greenlee and Trussel 2000, Trussel and Greenlee 2001). These studies indicate that when the following ratios differ substantially and adversely from their industry peers, these firms are more likely to experience financial distress: o Profit Margin defined as Total Revenues - Total Expenses Total Revenues o Revenue Concentration Index defined as the sum of squares of each revenue source divided by total revenues. o Administrative Cost Ratio defined as o Equity Balances defined as o Administrative Expenses Total Expenses Total Equity Total Revenues Size defined as the natural log of total assets. 54 H. Activity and Efficiency Measures The primary efficiency measure used to assess nonprofits is the program efficiency ratio described in the subsection on common sizing. While frequently used, the program efficiency does not reflect well the activity of the firm. When reported accurately the program efficiency ratio depicts the input costs of the services provided. Most stakeholders are interested in the direct deliverables (outputs) or the long term benefits outcomes. Given the present financial disclosures, it is not possible to determine the number of clients served, the man-hours of services provided, or the any measurable benefits received. Recent concern over the inability to assess this critical element of performance has led to books aimed to improve their organizations and manage more efficiently (Antos and Brimson 1994; Dropkin and LaTouche 1998; Drucker 1992; Eadies and Schrader 1997; Firstenberg 1996; Pynes and Schrader 1997; Wolf 1990). Many attempt to bring business concepts such as reengineering, quality management, and benchmarking to bear on the nonprofit sector, usually with the intent of raising the level of organizational and program performance. Hence, the reader should recognize that an important limitation of current financial statements is their relative inability to assess whether an organization is efficiently accomplishing its mission. A more fruitful activity may be to assess fundraising efficiency using a measure such as Fundraising Expenses . The measure assesses the cost of generating a dollar of Contributions + Special Event Revenue contributions. An analysis by the National Center for Charitable Statistics that revealed that on one-third of recent 990 tax forms reported zero fundraising expenses. One suspicion is that nonprofits are allocating fundraising expenses to program or administrative costs, allowing them to reduce this ratio to zero. In addition, a number of nonprofits may be recording revenues from direct mail and telemarketing campaigns as the receipts less the associated fundraising expenses. 55 Alternatively, a fundraising ratio of zero may indicate that the agency is accepting contributions from federated fundraising agencies, such as the United Way, or headquarters/umbrella organizations, and these agencies are recording the fundraising expenses. Rather than an indicator of fundraising efficiency, a fundraising ratio of zero may indicate that the financial statements do not materially reflect the financial condition of the organization. I. Compensation Issues A final area to consider is compensation. Three issues regularly emerge in the nonprofit setting: Are top executives excessively compensated? Are other employees adequately compensated? Are employees effectively compensated? The first question can be examined by looking at Form 990 and the required Schedule A that includes the salary, benefits and expense account disclosures for the five highest paid employees of the organization. These amounts can be compared to compensation reported by comparable institutions on their Form 990s. Nonprofits, however, can understate an individual's compensation by creating multiple reporting entities. For example, hospitals often pay doctors through both their operating nonprofit and an associated foundation. Each tax return only reports a portion a doctor's total compensation. The latter two questions are more difficult to determine. The total compensation and benefits are reported in the statement of functional expenses, however, headcount is not provided. As regards the effectiveness of the compensation, many nonprofits do not pay incentive compensation, since such payments may be interpreted as violating the nondistribution constraint that prohibits nonprofits from distributing their excess earnings to third parties. The latter two questions can best be answered by asking management for supplemental information. 56 VI. CONCLUSIONS This report has discussed the state of nonprofit financial reporting and provided advice on how to analyze a nonprofit's financial performance using currently available information. In this section, we present some expected enhancements in financial reporting and outline a plan for making additional improvements. A. Anticipated Improvements Stakeholders interested in a single nonprofit tax filing are presently able to go the Guidestar website and download a scanned version of the document. The National Center for Charitable Statistics is completing a "digitized" version of these filings. The digitized information is expected to be available in late 2001 and will allow users to analyze almost all of the Form 990 datafields for almost all recent filers of the Form 990 and 990EZ. Recently, the National Association of State Charity Officials (NASCO) has worked together to develop a unified registration statement. In the eleven participating states, a nonprofit will be able to complete a single annual filing that will be accepted in a number of states. The NCCS is working with NASCO and others to develop software that will allow nonprofits to file the unified registration statement electronically. Potentially, this software may accommodate more complex financial reporting, such as audited financial statements. A third project underway at NCCS will produce information that will classify not only the nonprofit by its industry code but also classify its programs. This project relies heavily on the information reported in Part III of the Form 990. Currently, this section is often left empty or is not accurately completed by the nonprofit filing the return. B. A Plan for An Improved Performance Assessment 57
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The novel is called 'Of mice & men' because things can go wrong between a small mouse to an important human being. Thing can go wrong despite how hard you try.
There are two characters in this novel that I think are portrayed as being weak. One of the characters that I feel comes across as weak in the novel is Crooks. The reason being is because of how he is treated by the other characters in this novel.
For example, most of the characters except for Slim refer to Crooks as a 'Nigger'. Even though 'Nigger' is a racist term, it was used normally in those days. But this shows the little respect the rest of the characters had for Crooks; they could have decided to refer to him using his real name, just like Slim. The fact that they continuously call him that shows the weakness in Crook, if he had the amount of free will and power the rest had, he would have spoke up and tell them to stop calling him a 'Nigger'.
Steinbeck may have set it out like this to show that not everyone was racist and disrespectful to whom the majority of the people thought was inferior. Slim could have been a character just like Steinbeck, he's showing that he is not racist and is empathetic to Crook's feelings, and is aware that despite his skin colour, he is just as superior. However, noticing this, Slim could be portrayed as weak because he didn't speak up to defend Crooks when it came to the name calling, if he did, he probably would have been casted as a 'Sell out' by the other characters.
There is another incident in the novel that shows how inferior and weak Crooks is portrayed. After Curley's wife enters the room to talk to him, Lennie and Candy, Crook's ends up getting frustrated with Curley's wife and starts telling her off. However, by now the readers would have thought that Crook's is finally standing up for himself and defending himself, but this all changes in the space of a few minutes. For example, Curley's wife retaliates and say's 'Listen, Nigger, you know what I can do to you if you open your trap?' 'Well, keep your place Nigger. I could get you strung up on a tree so easily it ain't even funny'.
'Strung up on a tree' meant to be lynched; this shows that she had the power to get Crooks lynched, even for the pettiest things. So even though Crooks was speaking the truth, him speaking up could get him into trouble, he can't win, him staying quiet and saying the things the other characters wants to hear makes him look weak, but even when he does speak up against problems, he is still portrayed as weak. After Curley's wife mentions this, the narration says 'Crooks seemed to grow smaller' the use of the letters 'Er' shows that he was already 'small' but by Curley's wife mentioning Lynching, it made him 'smaller', weaker than he already is.
One more factor that shows Crooks is weak, is by the structure of the chapter, the chapter starts and ends the same. On page 99, it say's 'Crooks sat on his bunk […] he held a bottle of liniment and with the other hand, rubbed his spine'. The chapter also ends the same way. This shows that the way Crooks is living is never ending, it's a cyclical feature, and there is no hope for him. Also, because Steinbeck kept on referring to his spine, shows that even though Crooks does have hopes and dreams, him being black and being injured is what's stopping him from living the 'American dream'. The injury to Crooks back occurred after being kicked in the spine by a horse.
The reason for this is because of where Crooks Is forced to sleep. Crooks sleeps in a barn. This is usually a place where horses rest. On page 98, it lets the readers know the Crooks bun was made form a long box filled with straw. 'Crooks' bunk was a long box filled with straw'. This portrays him to be some sort of animal. He is portrayed as a horse. Again even though horses are strong physically, they are weak in the sense that they have no power, they are usually tied up. This is a good example of Crooks. Again, he may be the most intelligent out of the characters and in some ways, mentally strong. But he is still weak in other ways.
Another character that Steinbeck portrays as being weak is Curley's wife. The apostrophe in 'Curley's' is possessive, this shows that Curley's wife belongs to Curley and that he is her owner. She is referred to as 'Curley's wife' throughout the novel and is not named. It also shows how unimportant she is and how little the characters think of her. Another way she is portrayed as weak is by her attitude towards the men in the novel. Curley doesn't pay her much attention, so she feels insecure and lonely. This makes her want the attention of the other men and makes her feel superior and important, even though she isn't. The characters talk about her in a negative way behind her back. For example, after Curley's wife is introduced George say's 'Jesus, what a tramp'. The use of the word 'Jesus' makes Georges reaction the Curley's wife seem dramatic, this shows that Curley's wife is a huge problem if she causes such dramatic responses. Also he refers to her as a tramp.
'Tramp' can mean many things, but one definition of a tramp for a female is a prostitute or a person regarded as promiscuous. This is Georges first impressions Of Curley's Wife, and this is how she comes across whilst trying to flirt. This shows how weak she is to George especially. She may be trying to flirt and act sexy in order for the men to lust after her but her trying has no effect on George, he thinks of her as the opposite. George also calls her a 'bitch' and a 'Rat trap' whilst talking to Lennie. A 'bitch' is the name given for a female dog, this links to the apostrophe in 'Curley's wife' Dogs are popular pets and have owners. She is like Curley's pet.
Curley's wife thinks of Crooks, Lennie and Candy as the 'Weak ones' by her saying this, it makes her look weak as well, she feels she has to refer to them as something deemed inferior in order to make her feel superior. However, even though she refers to them as this, she still hangs around them, this show's that she hasn't got much choice and that that is the only form of company she has and appreciates, despite coming across as nasty. This shows her weak side.
In section 5, Curley's wife goes in the barn to comfort Lennie and flirt with him, this could have led into something more. If she didn't end up dying she probably would have ended up sleeping with Lennie. This again, shows her weakness; she is not strong enough to just leave Curley if she is not happy, she married Curley for the wrong reasons, leading to her being unhappy. Instead she goes behind his back looking for 'Love', 'comfort' and a sense of 'importance'. This leads to her being accidently killed by Lennie.
Before this happens whilst she confides in Lennie she admits, 'He says he was gonna put me in the movies' referring to one of the actors she met. This didn't end up happening so she ended up marrying Curley. She then goes on and says 'So I married Curley. […] I don't like Curley, he ain't a nice fella'. This shows that she had no choice but to marry him and that she is finding it hard to escape from him.
The death of Curley's wife is like Karma. She threatened to get Crooks lynched if he carried on disrespecting her but then ended up dying as a result of her neck of being broken, this is what lynching is. Also, she married Curley for the wrong reasons and used him and she was also the women who stopped the characters from living their dreams, this may have been out of spite from her not getting to live hers. However, again, she ended up dying, and the characters still didn't get to live their dream. This is how Karma works, 'what goes around comes around'. This could be linked to the 'Cyclical feature' in the novel, the problems are never ending and there is just no hope.
To conclude, both Crooks and Curley's wife are very much alike and they're just as weak as each other. Both characters are referred to as harsh names other than their real names. They both had dreams of being successful but it never happened. Crooks is a black man, and Curley's wife is a white women. So even though Crooks had dreams and was capable of getting far the only problem that would have been stopping him is the fact that he is black and racism was in full effect in those days. Also, he was the smartest among the other characters, this links back to the title 'Of mice and men' that things can go wrong despite how hard you try. So despite his intelligence and how hard he learns, he still can't get to where he wants to go in life. Nevertheless, even though Curley's wife is white, she is a woman.
Women didn't have that much say or rights when men were involved. So her dreams and goals were not reached. For example she say's 'I never got that letter, I always thought my ol' lady stole it' She is adamant that her mum stole the letter an actor 'wrote' to her, so that's why she never became an actress. Except, going back to how powerful men were in those days, White American men especially, he may have not even written a letter, probably forgetting about her and just complimenting her because it was the heat of the moment type. This shows that Curley's wife is not mentally strong enough to come to terms and face reality of what actually might have happened, again that's her way of feeling important, because deep down she is a weak individual.
Cite this essay
Of Mice and men, Analysing weak characters. (2017, Nov 06). Retrieved from https://studymoose.com/of-mice-and-men-analysing-weak-characters-essay

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The National Union of Rail, Maritime and Transport Workers (RMT) and African LGBT Out and Proud Diamond Group protesting outside the Embassy of the Republic of Lithuania - 27th Nov 2013.
The RMT is alarmed by reports of rising hostility towards Lesbian, Gay, Bisexual and Transgender (LGBT) rights in Lithuania, and of attempts to introduce proposals to Parliament that attack the rights of Lithuania's LGBT citizens.
We strongly oppose the proposals to:
- ban gender reassignment
- give legal protection to 'criticism of homosexuality' ie. anti-LGBT speech
- introduce administrative liability for 'public denigration of constitutional moral values'
- attempt to restrict or ban same-sex parenting
- require the organisers of public meetings to pay the costs of their own security – meaning that events such as 'Baltic Pride' would have to pay prohibitive costs to protect themselves from homophobic attack.
We are pleased to hear that the government has opposed the first two of these proposals, and strongly urge the government to oppose the other three as well. We believe strongly in equality, freedom, rights and tolerance across Europe, and fully support those campaigning against homophobia and transphobia in every country.
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BWV 147 contains 10 Cantatas. This (Jesu, bleibet meine Freude) is the most famous of the 10. I made this arrangement so it would be as easy to play as possible without making too many compromises with Bach's music.
NOTE! Standard tuning.
Level: 3, Pages: 2
(verified owner) – 27th November 2016
This is 'Love'
Nathan Soares
(verified owner) – 17th September 2017
Miguel Rodriguez
(verified owner) – 23rd April 2020
Incredible this arrangement, a perfect mix of Bach and Per-Olov Kindgren.
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Create glamour with golden tones of almond and honey.
A coat of a new paint colour can truly transform a room, and while the sun shines and we move slowly into autumn there's a natural inclination to bring gold colours into the home.
This year saw Spiced Honey crowned as the Dulux Colour of the Year, because the colour experts felt it truly reflected the mood of the moment; the wonderfully gold colour is a warm amber tone inspired by the versatility of honey itself.
Honey can be soothing, calming and cosy, and when layered with natural fibres of wood, rattan and cottons, can really enrich a room. Other living room ideas include variants of warm browns like almond, walnut, and even terracotta on the bolder end of the spectrum.
Complimenting these colours with similar tones in lighter shades is a great way to add depth to a room, while also playing with colour. Not all ceilings were created equal, nor should they all look the same. A classic ceiling white is fine, but experiment with warm whites or soft creams to really play on the golden theme.
When it comes to décor, metallics like copper, brass and gold will add a touch of elegance to your space, while quite literally reflecting the golden hour glamour of the room.
Learn more about Spiced Honey, our Colour of the Year 2019.


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Wyborowa vodka, even though it does not belong to a Polish company anymore (now owned by French company Pernod Ricard).
Wyborowa is part of the super premium vodka market, which is a strategy the producers took to introduce new alcohol into the american market, already filled with a wide selection of vodkas from Russia. That actually seems strange and surprising to the Poles, as Wyborowa is not the most expensive vodka in Poland, nor it is the best one. Anyways, it is also one of few Polish brands that decided to invest in design. Their latest realese - Wyborowa Exquisite - comes in a bottle designed by Frank Gehry himself. As much as I admire the design, I am a little sad that Poland is only recognized for that one brand.
The Wyborowa Single Estate bottle was conceived by Frank Gehry, one of our greatest living architects and famous for outstanding structures such as the Guggenheim Museum in Bilbao and the Walt Disney Concert Hall in Los Angeles. Frank Gehry is of Polish descent and for this reason was the only designer considered for this project.The bottle design conveys a fusion of the Polish heritage & contemporary sophistication and mirrors the beauty and exquisite quality of Wyborowa Single Estate. (polandforall)


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Asheville, NC – Lakota R. Denton P.A., a renowned personal injury lawyer and founder of Asheville's Alcohol Safety Campaign, wants residents and tourists alike to be responsible and practice the campaign's slogan which is "Serve Safe, Drink Safe, Do the Right Thing."
The "Serve Safe, Drink Safe, Do the Right Thing" campaign is aimed at reducing the over service and overconsumption of alcohol in Asheville, NC. Denton's law firm has produced 10,000 coasters that bear the campaign's message. The coasters will be distributed to local bars and restaurants, urging service staff to follow local alcohol laws. This will also serve as a reminder to patrons to indulge with appropriate restraint and to keep the town safe for all to enjoy.
Denton says: "We want people to come to Asheville to sample our great local breweries, but many are not accustomed to the high alcohol content of these craft beers, which can be problematic. Some of these beers can contain as high as 9, 10 or even 11% alcohol, which is much stronger than typical beers, leading to a false sense of sobriety. They may think they're OK to drive since they've only had 2 beers, when in reality, they may already be over the legal limit of 0.08% and a danger to themselves and others." Along with the increased revenue, Asheville has enjoyed since its craft beer and destination tourism boom, the city has also seen a marked increase in DWI convictions in recent years, as well as a sharp rise in alcohol facilitated sexual assault crimes.
The Asheville personal injury attorney and his team are determined to help injured people get properly compensated and be given the justice they deserve. This law office only handles personal injury cases because they want to keep their focus and expertise in such cases only. They help their clients investigate accidents that happened to determine who was at fault and receive the compensation or settlement that they deserve. Lakota R. Denton also gives advice to clients on how to handle their personal injury claims without a lawyer.
Lakota R. Denton P.A. is located at 36 Orchard St. in Asheville, North Carolina. They can be reached by phone at (828) 333-5996, by email at email@example.com, or from their website, https://lakotardenton.com. According to Lakota R. Denton, in order for personal injury accidents and sexual assault-related crimes to decrease, residents and tourists need to practice the message behind their "'Serve Safe, Drink Safe, Do the Right Thing" campaign.
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Company Name: Lakota R. Denton, P.A.
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According to Ed Bullmore, Professor of Psychiatry at the University of Cambridge, depression is a physical illness that could be treated with anti-inflammatory drugs. Growing evidence shows that an overactive immune system causes widespread inflammation, leading to depressive symptoms such as unhappiness, hopelessness, and fatigue.
In October 2016, the journal Molecular Psychiatry published a review of research that revealed that the new class of anti-inflammatory drugs were found to reduce symptoms of depression. According to Molecular Psychiatry, nearly one-third of individuals diagnosed with chronic depression are shown to have higher levels of cytokines, proteins that regulate the immune response. This could indicate inflammation in their brains.
"It's pretty clear that inflammation can cause depression," Bullmore said. "In relation to mood, beyond reasonable doubt, there is a very robust association between inflammation and depressive symptoms. The question is, 'does the inflammation drive the depression or vice versa or is it just a coincidence?' In experimental medicine studies if you treat a healthy individual with an inflammatory drug, like interferon, a substantial percentage of those people will become depressed. So we think there is good enough evidence for a causal effect."
Think of the last time you were sick. When we're sick with the flu or common cold, the body enters an inflammatory state as it prepares to fight off the illness. When the body is inflamed, we experience symptoms very similar to depression – irregular sleep patterns, change in appetite, fatigue, depressed mood, etc. "Depression and inflammation often go hand in hand," Bullmore said. "If you have flu, the immune system reacts to that, you become inflamed and very often people find that their mood changes too." Chronic depression may be a symptom of the immune system failing to "switch off" after a trauma or illness, leading to widespread inflammation.
Many people do not fully understand depression. It's one thing when you're feeling sad or in a depressed mood—those are normal human emotions we have all experienced at one point or another. Depression is something greater. Depression is persistent, it is an overwhelming period of sadness that affects our emotional and physical well-being. It is a serious illness that over 350 million people worldwide currently suffer from. Those with chronic depression can't just "pull themselves together." If depression were seen as a physical illness rather than a mental problem, it could completely change our approach as to how we treat depression, and it could encourage many more to finally seek treatment.
This content was inspired by an article that can be found here.


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Arabella in Big Guns | Cosplay | Tank Girl | Gun | Rifle | Actor | Model | Photography | Nashville
Arabella "Big Guns"
In a Apocalypse you can never have too many big guns.
Arabella shows a variety of much needed Apocalypse fire power
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Driver's Cosplay and Character Photography, where your imagination is the limit.
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Driver's Photography located in Nashville Tennessee.
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Colca Canyon Peru tours
About Colca Canyon to visit, information from Arequipa and Colca
jueves, 15 de mayo de 2008
The Rafting Colca Canyon
Enjoys in the deepest canyons of earth, the Colca canyon and the Cotahuasi canyons are both located in Arequipa Perú. Enjoy the white water rafting adventure at the Colca and Cotahuasi rivers. Make your own Peru rafting trip. Come to Perú.
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viernes, 11 de abril de 2008
Colca Canyon and Cruz del Condor Peru
The Colca river begins high in the Andes, at Condorama Crucero Alto, drops down to the Pacific in stages, changing its name to Majes and then Camana as it goes. Where it runs between the tiny mountain villages of Chivay to Cabanaconde is a deep canyon known as the Colca Canyon.
This canyon is reportedly the deepest in the world, thought to be twice as deep as the Grand Canyon in the USA. Unlike most of the Grand Canyon, portions of the Colca canyon are habitable, with pre-Colombian terraced fields still supporting agriculture and human life. Click on this photo from Peru - Colca Canyon - Condor Pass, Part 2, Andrys Basten's Trip to Peru, for a very large photo which shows in wonderful detail how every bit of land is put to use. Then click to Part I and read her full account of her trip with more photos.
What brings increasingly more visitors each year, in addition to the awesome sights, are the Andean condors. The condor population of South America is unfortunately dwindling, but here in Colca Canyon, visitors can see them at fairly close range as they float on the rising thermals and scan for carrion far below them, as these photos of condors in flight demonstrate.
The river and valley were well-known to the Incas and their predecessors, and the Spaniards laid out townships along the valley, no doubt planning to use Rio Colca valley as the route to Cuzco and other Andean locations. They built churches along the way, notably the one at Coporaque, but for some reason, the towns never grew and the route faded from outside memory.
It wasn't until the early 1930's that the Colca valley was explored again, this time for the American Geographical Society. Colca Valley has been known by different names: The Lost Valley of the Incas, The Valley of Wonders, The Valley of Fire and The Territory of the Condor. It has even been called one of the Seven Natural Wonders of the World."
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It was one of those rare gifts that someone gives you just because. Early Monday morning I swallowed hard after stubbing my toe and sent a friend an email. Over the last several months I've had a real problem on this site. My problems real world form is even revolting. You see, my problem was something that festers. It's irritating. It does not matter how many times I hit delete 'cause it always comes back. Lil bugger. I had a SPAM issue and sent Network Geek an email to inquire about ways to fix it. After months of irritating email notifications of spam on this site and broken comment threads the email was sent.
"Hey there Jim - hope you have been doing well. Sounds as though
you have been keeping busy. Once you said if I ever wanted to switch
word press you would help me. Does the offer still stand?"
Upon opening his delightful response I knew today was going to be a good day. Cause not only did the offer still stand but he sent over this wicked new design as well. Even yours truly was yelling at the previous caricature to eat the damn rose already…or something.


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The 100 greatest movie insults of all time.
Harry Hanrahan's video does exactly what it says in the title – although with a certain Hollywood bent it's nice to see Monty Python and The Princess Bride in the
Yes Malcolm Tucker is here too, but the #1 insult? Well with hindsight it's obvious but we wouldn't want to spoil the surprise. After all, you might shout at us and you'd be hard pushed to be original after this video that may or may not be suitable to listen to at work.
Thanks to b3ta.


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Images courtesy of Flickr users (in order of appearance): UNAMID; Phil Beard; Peter Casier; PopTech; Intel Free Press; & Mayor McGinn.
Using this Guide
This guide is designed to help you find country information, data, and scholarly articles as you analyze social innovations and sustainable development goals. On these pages you will find sources to support:
Don't hesitate to contact me if you need more help.
The links below provide information about the GSBI Enterprises and Sustainable Development Goals you will be examining this quarter.


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Sunday 25th October 2020
Black Hill Conservation Park: Foxfield Oval, Athelstone, Australia
The Black Hill Challenge is amongst South Australia's oldest trail running events, raising money for the Royal Flying Doctor Service and St John Ambulance. It is a gruelling event, but well-worth the effort.
This run takes you past some of the most beautiful scenery in the Adelaide Hills through the Black Hill Conservation Park.
It is run jointly for non-profit by the Lions Club of Rostrevor and the 4WD Adventurer's Club of SA for over 18 years.
This event involves an arduous ascent which can require considerable physical exertion. If you have any medical condition which may be aggravated by strenuous physical exertion you should obtain medical advice before participating.
Strenuous physical exertion without adequate fluid intake can be dangerous.
While participating you are urged to ensure you keep physical exertion within your capabilities and drink frequently. (Drinking water will be supplied to competitors along the course).
1. Competitors must be at Foxfield Oval by 7:30 am on the day of the event.
2. Competitor number patches will be issued from 7:00 am on the day of the event.
3. Late entries will be accepted on the day of the event from 7.00 am.
4. Competitors must follow the instructions of the Course Marshals at all times.
5. The course will be as marked, starting and finishing at Foxfield Oval.
6. Competitors must complete the marked course – on foot and without assistance.
7. Any deviation from the marked course will result in disqualification.
8. Runners will reach the summit of Black Hill before returning to Foxfield Oval.
9. Competitors compete in this event entirely at their own risk.
10. If extreme weather conditions force closure of Black Hill Park the event will be cancelled.
Lions Club of Rostrevor
5 The Promenade, Northgate
Phone: 0412816904


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The Ukrainian Security Service and the Prosecutor's General Office consider opportunity of bringing criminal cases against officials of the Central Electoral Commission of Ukraine.
According to an UNIAN correspondent, deputy President's Chief of Staff Maryna Stavniychuk has disclosed this to journalists today.
M.Stavniychuk disclosed that the matter concerns officials responsible for compiling the state register of electors [as it is know, CEC member Jeanna Usenko-Chorna is responsible for that - UNIAN].
M.Stavniychuk noted that today the Prosecutor's General Office and the Counting Chamber finished an inspection of the Central Electoral Commission's activities in the use of financing allocated for creation of the state register.
The deputy Chief of Staff confirmed that numerous violations were discovered in the course of the inspection.


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Teaser Tuesdays is a weekly bookish meme, hosted by MizB of Should Be Reading. Anyone can play along! Just do the following:
*Grab your current read
*Open to a random page
*Share two (2) "teaser" sentences from somewhere on that page
*BE CAREFUL NOT TO INCLUDE SPOILERS! (make sure that what you share doesn't give too much away! You don't want to ruin the book for others!)
*Share the title & author, too, so that other TT participants can add the book to their TBR Lists if they like your teasers!
"Maybe she destroyed some records before she died," I suggested as I flipped through the pages. She never would have wanted us to know about this." I came to a page that was completely obliterated by a black marker.
5 Responses to "Teaser Tuesday"
Ooooohhhh…I love this teaser! I'm definitely adding this one to my wishlist. I love Diane Chamberlain's work.
Wonderful teaser. This makes me want to check it out!! Girl, no more book buying!
Here is my Teaser Tuesday: THe Lincoln Lawyer by Michael Connelly post!
I wonder what she wanted to black out… I haven't read any books by this author, but this one sounds interesting.
I am looking forward to this one. Great teaser.
I think I'll love the book too. Sounds great!


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Looking for quick tips, tricks and trivia on Brandy?
Brandy: The Water of Life
With the current battle between vodka and whisky/whiskey raging, it's easy for other spirits to fall out of favor and receive much less coverage. One such casualty of the Vodka-Brown Conflict is brandy. Many of you, right about now, are thinking, "Oh yeah, brandy. That thing my parents send me out to get during the holidays." What a large percentage of you aren't thinking of is cognac, armagnac, eau de vie, calvados and pisco, and that's a problem we need to fix.
What is This Stuff?
Plenty of people drink brandy but, if pressed, very few could actually explain just what it is. In very simple terms, brandy is distilled wine (grape wine, apple wine, etc.). It was created with the simple goal of making wine easier to transport and preserve. Some also believe that brandy was created as a way for merchants to lessen the taxes on their goods, as those were assessed by volume and distillation helped them save money. Where the subject of brandy can really get complicated is the regions of production, which commonly parallel the great wine-producing regions of the world. Let's start there.
We've discussed more than once Old World vs New World when it comes to wine. Quick recap: Old World labeling identifies by region, New World identifies by varietal. Keeping that in mind, you may be surprised to learn that cognac is not a unique spirit but rather a unique production region. Cognac is a commune in southwestern France that produces arguably the world's most famous brandy.
What makes Cognac unique in the world of brandy production is the region's double-distillation method: to be called cognac, the brandy must be distilled twice in a pot still. Unlike in some other regions, Cognac reduces the final product's alcohol by volume (ABV) to 80 proof with distilled water. Commonly made up of a blend of vintages, actual vintage brandy from the region is extremely rare, as is the printing of grape varietals on the labels.
Cognac tends to be lighter on fruit notes and aroma and stronger on floral characteristics than brandy produced by their main competitor, Armagnac (more on this region later). The oak barrels in which it is aged impart notes of herbs and spices, lending complexity and depth to the liquid. When it comes to aging, cognac peaks between 30 to 40 years. Notable houses in the region are Rémy Martin, Château de Montifaud (so named because the distillery sits on land once occupied by a castle, a rarity for the region), HINE (appointed the official cognac supplier to Her Royal Highness Queen Elizabeth II of England with their Royal Warrant having been renewed every 5 years) and Hennessy, which supplies a staggering 40% of cognac to the world and is the number one brand in America.
Armagnac is a county in southwestern France located around 100 miles south of Cognac. If Cognac is a '57 Chevy, Armagnac is a 1957 Lincoln Premiere convertible; less famous but amazing in its own right. While regulations allow for the same grapes to be used as those in Cognac, Armagnac also allows the use of a few other varietals.
The massive difference between Cognac and Armagnac comes down to the distillation process: armagnac is distilled once in a mobile alembic. Yes, one of those… A mobile alembic (or alambic for those who prefer the French spelling) is a small continuous still that is often transported from producer to producer between the months of November and January. Owing to the region's single distillation method, armagnac generally spends more time in oak and therefore develops more complexity, with the casks imparting vanilla, caramel, toffee, maple syrup and coconut milk notes. Aging peaks between 20 to 30 years and often results in the liquid developing aromas of smoke and earth.
Another difference is the ABV, with armagnac normally coming in between 92 and 96 proof. In addition, this region's products are often vintage and single varietal. While cognac may seem like a no-brainer for a bar menu with established and profitable names such as Hennessy and Rémy Martin on the market, offering armagnac definitely adds a touch of sophistication and will help to draw in connoisseurs. Look for armagnac from houses Delord, Castarède and Maison Janneau.
Eau de Vie
Eau de vie – eaux de vie for plural – translates from French to English as the epic, "water of life." This spirit is clear, colorless fruit brandy produced via fermentation and double distillation. The process for creating eau de vie is fairly cut and dry: ripe fruit is fermented, distilled and quickly bottled in order to preserve the freshness and aroma of the fruit. The fruit flavor is normally quite subtle. Typically, eau de vie isn't aged, as evidenced by the clear color. However, there are some distillers who do age their spirits. Fruit brandy made from wine grapes from regions in France other than Cognac and Armagnac are called eau de vie de vin and, in English-speaking countries, are referred to simply as French brandy. Two high-quality, readily available eaux de vie producers are F. Meyer and Etter of the Anchor Distilling Co. portfolio.
While eau de vie is a French term, comparable spirits are produced in other countries. Germany produces schnapps or schnaps (any strong alcoholic drink), the Balkans have rakia (fruit brandy), the Czech Republic and Slovakia make pálenka (any distilled beverage, in particular fruit brandy), pálinka (fruit brandy) is produced in Hungary, Austria, Romania and Slovakia, arrack or arak (distilled alcoholic beverages made from fermented sap of coconut flowers, grain, sugarcane or fruit) is made in South Asia and Southeast Asia and Georgia – the country – produces chaca (pomace brandy), which is sometimes called vine vodka, grape vodka, Georgian vodka or Georgian grappa.
California Widow
Combine three-quarters of an ounce of pear (poire) eau de vie, three-quarters of an ounce of gin, three-quarters of an ounce of elderflower liqueur (St. Germain), a half-ounce of Green Chartreuse, a quarter-ounce Bénédictine liqueur, 2 dashes of the bitters of your choice and ice in a shaker. Stir and then strain. Serve up with a lemon twist.
Not to be outdone by the successes of Cognac and Armagnac, Basse-Normandie or Lower Normandy, a northern region of France, also produces brandy. This spirit is called calvados, an apple brandy produced by distilling cider. Should your bar feature ciders or ginger beer (alcoholic or not), calvados is an excellent spirit to put on your menu to tantalize your guests. Calvados can be used as an aperitif, digestif or cocktail ingredient and actually tastes quite nice in coffee.
The production method is simple enough: specially grown and selected apples (200 known varieties) are harvested, pressed into juice, fermented into cider, distilled into eau de vie and aged in oak barrels for at least 2 years. Calvados is often aged for much longer than the required 2 years, resulting in a smoother drink. Check out Christian Drouin calvados to find products for your menu.
As with Cognac and Armagnac, the distillation method is strictly regulated when it comes to calvados. The AOC (appellation of control) of calvados requires single distillation via single column still and authorizes double distillation via alembic. However, one AOC, Pay d'Auge, requires double distillation for the production of calvados. Of course, as with any production method, there are pros and cons. Champions of the single distillation method prefer the fresh, clean apple flavor it provides while those who favor the double distillation method believe it produces a more complex calvados suitable for longer aging. Some also feel that a single column still, run expertly, creates a calvados just as complex as those produced via double distillation.
Calvados & Ginger Beer
Fill a tall glass with ice. Combine 1.5 ounces of calvados, 4 ounces of ginger beer and a dash of Angostura bitters. Lime wheel to garnish.
Chile and Peru are also major players in the brandy game. Their product is colorless, yellowish or amber brandy called pisco produced in their winemaking regions. Pisco is made from grape wine and, as you may have guessed, both Chile and Peru produce pisco according to exacting distillation regulations.
Peruvian pisco is required to be produced from any one of – or a blend of – 8 local grape varieties. Of course, each grape imparts its own characteristics to the finished product. Regardless of the grape variety (or varieties) used, Peruvian pisco may only be distilled once and is never permitted to be diluted. Stainless steel and glass are the only materials that are allowed to come into contact with Peruvian pisco. In stark contrast to Cognac and Armagnac, Peruvian pisco may never be aged in wood or manipulated beyond the blending of grape varietals. A great place to start for this type of brandy is Barsol.
Chilean regulations give distillers the freedom to influence their products more than the rules set forth in Peru. Multiple distillations are permitted and the spirit may be diluted and barrel aged. Additionally, while Peruvian distillers may use 8 grape varietals for production, Chilean distillers focus on just three, with the moscatel grape being the most commonly used. Capel (the Capel Moai bottle is unique and perfect for tiki bars), Pisco Mistral and Kappa are all fine examples of Chilean pisco.
Pisco Sour
In a shaker, combine 3 ounces pisco, 1 ounce Key lime juice, 1 ounce simple syrup and 1 egg white. Add ice. Shake and strain into a rocks glass. Add 2 to 3 dashes Angostura bitters to foam and serve immediately. To make the Chilean version, use Pica lime juice, omit the bitters and egg white and serve over ice.


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After the freeze and frosts, my veggies all perked up and so did many other plants, but my 3 newly-planted princess flower shrubs (Tibouchina) and 3 Mexican bush sages (S. leucantha, pictured below) really suffered.
Compare backyard-planted ones with an unprotected southwestern exposure...
...to the east-facing ones planted out front, right up against the house (reflected heat):
They were all planted from the same batch of plants at the same time. Just goes to show you... Microclimate really does matter!
I think all plants will survive, but it's a drag that some got nipped back.