Document

METROPOLITAN COUNCIL ON JEWISH POVERTY, INC. AND AFFILIATES

Combined Financial Statementsand

Supplemental Schedules

For the Years Ended June 30, 2009 and 2008

BUCHBINDER TUNICK & COMPANY LLP "'.,,..

METROPOLITAN COUNCIL ON JEWISH POVERTY, INC. AND AFFILIATESFor the Years Ended June 30, 2009 and 2008

INDEX

Page

Independent Auditor's Report 1Financial Statements

Combined Statements of Financial Position 2Combined Statements of Activities 3-4Combined Statements of Cash Flows 5-6Combined Statements of Functional Expenses 7-8Notes to Combined Financial Statements 9-31

Independent Auditor's Report on Supplemental Schedules 32Supplemental Schedules

Combining and Combined Statements of Financial Position' 33

Combining and Combined Statements of Activities2 34

Combining and Combined Statements of Functional Expenses2 35Statements of Financial Position of Met Council' 36Statements of Activities of Met Councii2 37Combining and Combined Statements of Functional Expenses of Met Councii2 38

Combining and Combined Statements of Financial Position of Housing' 39

Combining and Combined Statements of Activities of Housing2 40Combining and Combined Statements of Functional Expenses of Housing2 41

Combining and Combined Statements of Financial Position of Home Care' 42

Combining and Combined Statements of Activities of Home Care2 43

Combining and Combined Statements of Functional Expenses of Home Care2 44

, As of June 30, 2009 (with comparative totals for June 30, 2008)

2 For the year ended June 30, 2009 (with comparative totals for June 30, 2008)


BTcc.BUCHBINDER TUNICK & COMPANY LLPCERTIFIED PUBLIC ACCOUNTANTS

ONE PENNSYLVANIA PLAZA. SUITE 5335 . NEW YORK, NY 10119-0219

212-695-5003 . FAX 212-695-4638 . www.buchbinder.com

INDEPENDENT AUDITOR'S REPORT

To the Board of DirectorsMetropolitan Council on Jewish Poverty, Inc. and Affiliates

We have audited the accompanying combined statements of financial position ofMetropolitan Council on Jewish Poverty, Inc. ("Met Council") and affiliates as of June 30, 2009and 2008, and the related combined statements of activities, cash flows, and functionalexpenses for the years then ended. These combined financial statements are the responsibilityof Met Council's management. Our responsibilty is to express an opinion on these combinedfinancial statements based on our audits.

We conducted our audits in accordance with auditing standards generallyaccepted in the United States of America. Those standards require that we plan and performthe audit to obtain reasonable assurance about whether the combined financial statements arefree of material misstatement. An audit includes examining, on a test basis, evidencesupporting the amounts and disclosures in the combined financial statements. An audit alsoincludes assessing the accounting principles used and significant estimates made bymanagement, as well as evaluating the overall financial statement presentation. We believethat our audits provide a reasonable basis for our opinion.

In our opinion, the combined financial statements referred to above presentfairly, in all material respects, the financial position of Metropolitan Council on Jewish Poverty,Inc. and affiliates as of June 30, 2009 and 2008, and the changes in their net assets and theircash flows for the years then ended, in conformity with accounting principles generally acceptedin the United States of America.

As described in Note 27 to the combined financial statements, the combinedfinancial statements for the year ended June 30, 2008 have been restated to include theactivities of 385 Third Avenue HDFC. Additionally, an adjustment has been made to net assetsas of July 1, 2007 to reflect the restatement.

11::~i. ~~ ¡~~ uPBUCHBINDER TUNICK & COMPANY LLP

March 20, 2010

OFFICE IN : ROCKVillE, MARYLAND l&~28B

METROPOLITAN COUNCIL ON JEWISH POVERTY, INC. AND AFFILIATESCombined Statements of Financial Position

June 30, 2009 and 2008

20082009 Restated

ASSETSAssets:

Cash and cash equivalents $ 15,882,680 $ 9,767,067Program grants and other receivables 18,792,731 17,203,703Inventory 27,494 17,340Security deposits and other assets 1,591,671 937,600Investments held for deferred compensation plan 320,714 249,070Fixed assets, net 101,558,663 92,226,397Restricted deposits 6,113,350 4,424,988Investments - restricted 1,721,876 2,495,986Investments in limited partnerships andlimited liabilty company 113,090 552,886

Investment in land 16,548,125 16,548,125Total assets $ 162,670,394 $ 144,423,162

LIABILITIES AND NET ASSETSLiabilities:

Accounts payable, accrued expenses andother payables $ 11,298,886 $ 9,818,794

Loans payable 125,000 95,000Government advances payable 20,645,892 15,966,185Mortgage payable - N.Y.S. Dormitory Authority 5,325,428 5,571,892Operating reserve limited partnerships 564,380 675,581Deferred compensation payable 320,714 249,070HPD advances 600,134 250,000HUD advances 48,150,914 48,150,914HPD mortgage payable 4,620,895Deferred rent from land lease 16,139,683 16,305,829

Total liabilities 107,791,926 97,083,265

Net assets:Unrestricted 54,543,174 47,099,797Temporarily restricted 335,294 240,100

Total net assets 54,878,468 47,339,897

Total liabilities and net assets $ 162,670,394 $ 144,423,162

See notes to combined financial statements.

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BUCHBINDER TUNICK & COMPANY LLP "'~,..

METROPOLITAN COUNCIL ON JEWISH POVERTY, INC. AND AFFILIATESCombined Statement of ActivitiesFor the year ended June 30, 2009


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BUCHBINDER TUNICK & COMPANY LLP Ø~288

METROPOLITAN COUNCIL ON JEWISH POVERTY, INC. AND AFFILIATESCombined Statement of ActivitiesFor the year ended June 30, 2008

Temporarily TotalUnrestricted Restricted Restated

Revenue:Public support:

Government grants $ 102,204,092 $ $ 102,204,092Grants from UJAlFederation of New York 4,423,171 4,423,171Grants from United Way 180,608 180,608Private grants 3,197,790 3,197,790Building contributions 13,986,169 13,986,169Rental income - land lease 166,146 166,146Contributions and donated services 1,865,071 1,865,071

Total public support 126,023,047 126,023,047

Special events revenue 677,300 677,300Less: cost of direct benefits to donors 83,766 83,766

Net revenue from special events 593,534 593,534

Total public support and special events revenue 126,616,581 126,616,581

Other revenue:Interest 430,088 430,088Program fees 1,807,810 1,807,810Rental income 4,220,569 4,220,569Other 462,083 462,083

Total other revenue 6,920,550 6,920,550

Total revenue 133,537,131 133,537,131

Expenses:Program services 115,674,728 115,674,728Supporting services:

Management and general 5,340,233 5,340,233Fund-raising 281,319 281,319

Total functional expenses 121,296,280 121,296,280

Other expenses:Realized loss on investment

(primarily Fund for the Jewish Poor) 1,430,724 1,430,724Interest 296,956 296,956

Total other expenses 1,727,680 1,727,680Total expenses 123,023,960 123,023,960

Changes in net assets from non housing operations (1,220,962) (1,220,962)Net assets released from restrictions 23,478 (23,478)

Total changes in net assets from non housing operations (1,197,484) (23,478) (1,220,962)

Changes in net assets from housing 11,734,133 11,734,133Total changes in net assets from housing 11,734,133 11,734,133

Total changes in net assets 10,536,649 (23,478) 10,513,171

Net assets, beginning of year, as originally reported 36,486,998 263,578 36,750,576

Prior period adjustment 76,150 76,150

Net assets, beginning of year, as restated 36,563,148 263,578 36,826,726

Net assets, end of year, as restated $ 47,099,797 $ 240,100 $ 47,339,897


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,

METROPOLITAN COUNCIL ON JEWISH POVERTY, INC. AND AFFILIATESCombined Statements of Cash Flows

For the years ended June 30, 2009 and 2008

20082009 Restated

Cash flows from operating activities:Changes in net assets $ 7,538,571 $ 10,513,171Adjustments to reconcile changes in net assets

to net cash provided by operating activities:Depreciation and amortization 3,489,906 3,172,061Equity in net loss of limited partnerships' investments 6,013 6,842Contribution of land and building (8,418,305) (13,880,911)Amortization of deferred rent from land lease (166,146) (166,146)Realized loss on investment 1,423,882Changes in operating assets and liabilities:

Program grants and other receivables (1,576,849) 303,911Inventory (10,154) 1,405Security deposits and other assets (14,371) (125,806)Accounts payable, accrued expenses, and other payables 1,300,211 83,986Government advances payable 4,679,707 (720,350)Deferred compensation payable 71,644 174,818Operating reserve limited partnerships (111,201) 18,445

Net cash provided by operating activities 6,789,026 805,308

Cash flows from investing activities:Purchase of fixed assets (471,357) (179,943)Redemption of investment - Fund for the Jewish Poor 949,125Redemption of investment 774,110 38,396Restricted deposits (1,038,192) (4,424,988)Investments held for deferred compensation plan (71,644) (194,818)

Net cash (used in) investing activities (807,083) (3,812,228)

Cash flows from financing activities:Proceeds (repayment) of loans payable 30,000 (145,500)HUD advances 350,134(Repayment of) mortgage payable (246,464) (234,702)

Net cash provided by (used in) financing activities 133,670 (380,202)

Net increase (decrease) in cash and cash equivalents 6,115,613 (3,387,122)

Cash and cash equivalents:Beginning of year 9,767,067 13,154,189

End of year $ 15,882,680 $ 9,767,067


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BUCHBINDER TUNICK & COMPANY LLP "''''88

METROPOLITAN COUNCIL ON JEWISH POVERTY, INC. AND AFFILIATESCombined Statements of Cash Flows (Continued)

For the years ended June 30, 2009 and 2008

Supplemental disclosure of cash flows information:

Interest paid

Noncash investing and financing activities:

Noncash contribution of land, building - 334 East 92nd Street

Shorefront Housing Council Development Fund Corp.:Program grants and other receivablesSecurity deposits and other assets

Fixed assetsRestricted depositsAccounts payable, accrued expenses and other payablesHPD mortgage payableInvestment in limited partnerships

Increase in cash

Noncash contribution of land, building - 231 East 77th Street

Noncash contribution of land, building - 91 Carlton Avenue

385 Third Avenue Associates, LP:Investment in landDeferred rent from land leaseNet assets

Proceeds from sale of air rights contributed to385 Third Avenue Associates, LP

Sale of air rights

Investment in 385 Third Avenue Associates, LPImpairment loss on investment

Investment in 385 Third Avenue Associates, LP at June 30, 2009


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BUCHBINDER TUNICK & COMPANY LLP "''',B8

METROPOLITAN COUNCIL ON JEWISH POVERTY, INC. AND AFFILIATESCombined Statement of Functional Expenses

For the year ended June 30, 2009

Met Council Home Care Housing Management CombinedProgram Services Program Services Program Services and General Fund-raising Total

Salaries $ 7,726,110 $ 62,739,530 $ 695,284 $ 1,623,293 $ $ 72,784,217Employee benefits 2,272,585 19,224,833 283,287 1,163,623 22,944,328

Total salaries and employee benefits expenses 9,998,695 81,964,363 978,571 2,786,916 95,728,545

Grants to aid individuals 2,093,514 221,339 105,010 2,419,863Rent and utilities 3,254,478 405,879 1,217,250 249,839 13,500 5,140,946Contract services 2,143,360 694,005 744,393 247,764 2,022 3,831,544Office expense 686,479 72,822 22,399 31,565 67,874 881,139Postage 41,362 49,355 8,971 175,958 275,646Repairs and maintenance 140,154 2,211 290,864 4,445 437,674Telephone 187,056 67,342 49,897 7,252 311,547Furniture and equipment 414,419 20,830 54,593 489,842Travel 227,286 39,469 52,538 204 319,497Insurance 343,562 36,562 444,656 260,879 1,085,659Special events 166,856 16,266 39,221 222,343Real estate taxes 451,501 451,501Food 1,417,664 241 1,417,905Administrative fee and overhead 450,155 47,000 603,760 1,100,915Bank charges 27,357 26,347 53,704Depreciation and amortization 198,232 3,258,670 33,004 3,489,906Miscellaneous expenses 357,538 135,897 222,179 213,567 929,181

Total functional expenses $ 22,120,810 $ 83,563,092 $ 8,505,479 $ 4,099,197 $ 298,779 $ 118,587,357


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BUCHBINDER TUNICK & COMPANY LLP f)~288

METROPOLITAN COUNCIL ON JEWISH POVERTY, INC. AND AFFILIATESCombined Statement of Functional Expenses

For the year ended June 30,2008

Met Council Home Care Housing ManagementProgram Services Program Services Program Services and General Fund-raising Combined Total

Salaries $ 7,286,358 $ 60,933,869 $ 553,645 $ 2,517,081 $ $ 71,290,953Employee benefits 2,168,821 24,607,709 226,859 1,102,384 28,105,773


Grants to aid individuals 1,731,866 184,661 128,336 2,044,863Rent and utilities 2,888,646 385,597 901,229 549,625 4,725,097Contract services 2,852,513 724,581 688,104 173,358 74,985 4,513,541Office expense 467,353 78,810 10,681 50,939 37,852 645,635Postage 325,036 63,558 65,152 156,271 610,017Repairs and maintenance 185,171 2,981 185,350 20,859 394,361Telephone 168,034 64,904 46,612 49,682 329,232Furniture and equipment 298,831 19,121 73,995 391,947Travel 179,414 32,874 121,029 333,317Insurance 312,897 33,448 413,479 184,318 944,142Special events 172,226 82,926 12,211 267,363Real estate taxes 353,142 353,142Food 1,354,566 2,590 1,357,156Administrative fee and overhead 487,393 67,000 564,664 1,119,057Bank charges 10,692 9,091 19,783Depreciation and amortization 198,232 2,935,517 38,312 3,172,061Miscellaneous expenses 193,021 100,833 214,430 170,556 678,840

Total functional expenses $ 21,270,378 $ 87,125,977 $ 7,278,373 $ 5,340,233 $ 281,319 $ 121,296,280


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BUCHBINDER TUNICK & COMPANY LLP CF~288

METROPOLITAN COUNCIL ON JEWISH POVERTY, INC. AND AFFILIATESNotes to Combined Financial Statements (Continued)

June 30, 2009 and 2008

Note 1 - Summary of Significant Accounting Policies

Financial Reporting Entity

The combined financial statements present the accounts of Metropolitan Council onJewish Poverty, Inc. ("Met Council") and affiliates, including accounts of the localJewish Community Councils for which Met Council acts as fiscal agent and thefinancial statements of those separately administered organizations where MetCouncil exercises oversight responsibility. All significant intercompany balances andtransactions have been eliminated.

Oversight responsibilities include:

~ Selection of governing authority,

~ Designation of management,

~ Ability to significantly influence operations, and~ Accountability for fiscal matters.

Those organizations and operating segments include the following:

Home Care

Jewish Community Council Services Commission ("JCCSC")Project OHR, Inc. ("OHR")Met Council Home Care Services, Inc. ("MCHCS")

Housing - Year Ended December 31,2008

Council Towers Housing Development Fund Corp.Council Towers II Housing Development Fund Corp.Council Towers III Housing Development Fund Corp.Council Towers IV Housing Development Fund Corp.Council Towers V Housing Development Fund Corp.Council Towers Vi Housing Development Fund Corp.141 East 23rd Street Housing Development Fund Corp.351 East 61st Street Housing Development Fund Corp.East 54th Street HDFCLexington Avenue HDFCCouncil Management Corp.231 East 77th Street Housing Development Fund Corp.91 Carlton Avenue Housing Development Fund Corp.385 Third Avenue Housing Development Fund Corp.334 East 92nd Street Housing Development Fund Corp.Shorefront Housing Council Development Fund Corp.Seaview Senior Living Corp.

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June 30, 2009 and 2008

Note 1 - Summary of Significant Accounting Policies (Continued)

Limited Partnership Housing - Year Ended December 31, 2008

Surfgate HDFC:G-P Surf Avenue Corp.Surfgate Limited Partnership

Limited Liabilty Company Housing - Year Ended December 31, 2008

MC Caroline, LLC

Met Council is the managing agent of Met Council's various housing partnershipsand receives a management fee of 8% of rental income.

Financial Statement Presentation

The combined financial statements have been prepared on the accrual basis ofaccounting. The statements are presented in accordance with the provisions ofStatement of Financial Accounting Standards No. 117 ("SFAS No. 117"), FinancialStatements of Not-far-Profit Organizations. Under SFAS No. 117, Met Council isrequired to report information regarding its financial position and activities accordingto three classes of net assets: unrestricted net assets, temporarily restricted netassets, and permanently restricted net assets.

Endowments

In August 2008, the Financial Accounting Standards Board issued Staff Position("FSP") No. FAS 117-1, Endowments of Not-for-Profit Organizations: Net AssetClassification of Funds Subject to an Enacted Version of the Uniform PrudentManagement of Institutional Funds Act, and Enhanced Disclosures for allEndowment Funds. This FSP provides guidance on the net assets classification ofdonor-restricted endowment funds for a not-for-profit organization that is subject toan enacted version of the Uniform Prudent Management of Institutional Funds Act of2006 ("UPMIFA"). The FSP also improves disclosures about an organization'sendowment funds (both donor-restricted endowment funds and board-designatedendowment funds) whether or not the organization is subject to UPMIFA.

The State of New York has not adopted UPMIFA. Met Council has adopted FSP117-1 for the year ended June 30, 2009. Met Council is subject to the New YorkNot-for-Profit Corporation Law. The Board of Directors, on the advice of legalcounsel, has determined. that when Met Council receives a contribution and thedonor restricts Met Council from spending the principal, New York law requires MetCouncil to maintain the original historical dollar value of the contribution received asan endowment. Such amount is recorded as permanently restricted and investmentreturn is recorded as temporarily restricted or unrestricted based on the purpose forwhich the endowment was created. As of June 30, 2009 and 2008, Met Council'sendowment funds were held in cash and cash equivalents.

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June 30, 2009 and 2008


Use of Estimates

The preparation of combined financial statements in conformity with accountingprinciples generally accepted in the United States of America, requires managementto make estimates and assumptions that affect the reported amounts of assets andliabilities, and disclosure of contingent assets and liabilties at the date of thecombined financial statements, and the reported amounts of revenue and expensesduring the reporting period. Actual results could differ from those estimates.

Investments - Restricted

Investments consist of U.S. Treasury bills and are recorded at fair value asdetermined by quoted market prices.

Investments held for the deferred compensation plan consist of mutual funds.Mutual funds are valued at the net asset value of the shares held by Met Council atyear end.

Program Grants and Other Receivables

Program grants and other receivables consist principally of amounts due fromFederal, State and local governmental agencies under contractual agreements. MetCouncil believes that grants will be fully collected within one year. Program grantsreceivable and other receivables are reported at net realizable amounts based uponmanagement's expectation of collectabilty.

Promises to Give

Unconditional promises to give are recognized as revenue in the period received.Conditional promises to give are recognized only when the conditions on which theydepend are substantially met and the promises become unconditionaL.

Inventory

Inventory consists principally of new furniture and mattresses, and is stated at lowerof cost or market value.

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June 30,2009 and 2008


Fixed Assets

Fixed assets are stated at cost. Depreciation is recorded on the straight-line methodover the estimated useful lives of the assets, ranging from four to thirty-nine years.Amortization of leasehold improvements is recorded over the term of the lease.

Capital grants from government agencies that have restrictions as to use imposedover periods greater than five years are expensed in the year the grant funds arerecognized.

Impairment of Long-lived Assets

Met Council is subject to the provisions of Statement of Financial AccountingStandards ("SFAS") No. 144, Accounting for the Impairment or Disposal of Long-Lived Assets, which requires impairment losses to be recorded on long-lived assetswhen indicators of impairment are present and the undiscounted cash flowsestimated to be generated by those assets (excluding interest) are less than thecarrying amount of the assets. In such cases, the carrying values of assets to beheld and used are adjusted to their estimated fair value. Met Council reviews itsinvestments in long-lived fixed assets for impairment events or when changes incircumstances indicate that the carrying values of such property may not berecoverable. No impairment losses were recognized in 2009 and 2008.

Investments in Limited Partnerships and Limited Liability Company

Met Council accounts for its general partner interests in limited partnerships and amembership interest in a limited liabilty company under the equity method ofaccounting. Under the equity method, the initial investment is recorded at cost,increased or decreased by Met Council's share of income or losses, and increasedor decreased by contributions or distributions. If the investment account is reducedto zero, Met Council suspends the application of the equity method, as managementbelieves Met Council will not be required to invest additional funds.

Met Council's investment in 385 Third Avenue Associates, LP is recorded using thecost method of accounting.

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June 30,2009 and 2008


Government Grants

Government grant awards are classified as refundable advances until expended forthe purposes of the grants because they are conditionaL. Medicaid and othergovernment contract revenue is subject to audit and retroactive adjustment.Provisions for estimated settements are provided in the period the related servicesare rendered. Differences between the estimated amounts accrued and interim and

final settlements are reported in operations in the year of settlement. Managementis of the opinion that such settlements will not have a material adverse effect on thecombined financial statements.

Classification of Revenue, Support and Net Assets

Contributions received are recorded as unrestricted, temporarily restricted orpermanently restricted support, depending on the existence and nature of donorrestrictions.

All contributions are considered to be available for unrestricted use unlessspecifically restricted by the donor. Contributions that are restricted by the donor forspecific purposes or for future periods are reported as an increase in temporarilyrestricted or permanently restricted support. When a restriction expires (that is,when a stipulated time restriction ends or purpose restriction is accomplished),temporarily restricted net assets are reclassified to unrestricted net assets andreported in the combined statements of activities as net assets released fromrestrictions. Support that is restricted by the donor is reported as an increase inunrestricted net assets if the restriction expires in the reporting period in which thesupport is recognized. As of June 30, 2009 and 2008, Met Council did not have anypermanently restricted net assets.

In-kind Revenue

In-kind revenue is recognized if the services received: (a) create or enhance long-lived assets, or (b) require specialized skills, are provided by individuals possessingthose skills, and would typically need to be purchased, if not provided by donation.

Donations of property and equipment are reported at their estimated fair value at thedate of donation.

Rental Income

Rental income is recognized on a straight line-basis as rentals become due. Rentalpayments received in advance are deferred until earned. All leases between MetCouncil and the tenants of the property are operating leases.

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June 30,2009 and 2008


Advertising

Met Council expenses the production costs of advertising the first time advertisingoccurs. Advertising expense totaled $229,872 and $322,662 for the years endedJune 30, 2009 and 2008, respectively.

Functional Allocation of Expenses

The costs of providing various programs and their administration have beensummarized on a functional basis in the combined statements of functionalexpenses. Accordingly, certain costs have been allocated to direct programs orsupporting services. The functional classifications are defined as follows:

· Program services expenses - consist of costs incurred in connection withprovided services and conducting programs.

· General and administrative expenses - consist of costs incurred inconnection with the overall activities of Met Council, which are not allocableto another functional expense category.

· Fund-raising expenses - consist of costs incurred in connection with activitiesrelated to obtaining grants and activities designed to generate revenue.

Reclassification of Accounts

Certain accounts in the prior year's combined financial statements have beenreclassified to conform to the current year's presentation. These reclassificationshad no effect on the previously reported results of operations or net assets.

Income Taxes

In June 2006, the Financial Accounting Standards Board ("FASB") issuedInterpretation No. 48 ("FIN 48"), Accounting for Uncertainty in Income Taxes, aninterpretation of FASB Statement No. 109 that prescribes a recognition thresholdand measurement attribute for the financial statement recognition and measurementof a tax position taken or expected to be taken in a tax return. FIN 48 also providesguidance on derecognition, classification, interest and penalties, accounting ininterim periods, disclosure, and transition.

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June 30, 2009 and 2008


Income Taxes (Continued)

In February 2008 and December 30, 2008, the FASB issued Staff Position ("FSP")FIN 48-2 and 48-3, Effective Date of FASB Interpretation No. 48 for CertainNonpublic Enterprises, respectively, to defer the effective date of FIN 48 for certainnonpublic organizations to the annual financial statements for fiscal years beginningafter December 15, 2008. Met Council will defer the adoption of FIN 48 and doesnot expect it to have a material impact on its combined financial statements.

Audits by Government Agencies

Financial awards from Federal, State, and Local governmental entities in the form ofgrants for the reimbursement of expenses and overhead applicable to variousprograms are subject to special audit. Such audits could result in claims against MetCouncil for disallowed costs or noncompliance with grantor restrictions. No provisionhas been made for any liabilties that may arise from such audits since the amounts,if any, cannot be determined at this date. Additionally, management is of the opinionthat such audits, if performed, would not have a material effect on the accompanyingcombined statements of functional expenses.

Subsequent Events

In May 2009, the FASB issued SFAS No. 165 ("SFAS 165"), Subsequent Events.The objective of SFAS 165 is to establish general standards of accounting for anddisclosure of events and transactions that occur after the combined statement offinancial position date but before financial statements are issued or are available tobe issued. It requires the disclosure of the date through which an entity hasevaluated subsequent events and whether that date is the date the financialstatements were issued or the date the financial statements were available to beissued. Met Council adopted SFAS 165 during the year ended June 30, 2009.

Met Council has evaluated subsequent events and transactions through March 20,2010, the date that Met Council's combined financial statements were available to beissued.

Note 2 - Risks and Uncertainties

Financial instruments that subject Met Council to concentrations of credit risk consistof cash and cash equivalents and contracts receivable. While Met Council andaffliates attempt to limit their financial exposure, their deposit balances may, attimes, exceed federally insured limits. Met Council and affiliates have notexperienced any losses on such balances.

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June 30, 2009 and 2008

Note 2 - Risks and Uncertainties (Continued)

Met Council has entered into service contracts and grant agreements with variousgovernmental agencies that are subject to business risks associated with theeconomy and administrative directives, rules and regulations that are subject tochange. A significant reduction in revenue from these various governmental agencycontracts would have an adverse effect on Met Council's programs.

Contracts receivable primarily represent receivables from the New York CityDepartment of Housing Preservation and Development, and the New York CityDepartment of Homeless Services. Any concentrations of credit risk related tocontracts receivable is subject to the city's financial condition.

Note 3 - Tax Status

Met Council is a nonprofit organization, which is exempt from Federal income taxunder Section 501 (c) 3 of the Internal Revenue Code.

Note 4 - Fair Value Measurements

Effective July 1, 2008, Met Council adopted Statement of Financial AccountingStandards 157 ("SFAS 157"), Fair Value Measurements, which establishes aframework for measuring fair value and clarifies the definition of fair value within thatframework. SFAS 157 defines fair value as an exit price, which is the price thatwould be received for an asset or paid to transfer a liability in Met Councils principalor most advantageous market for the asset or liability, in an orderly transactionbetween market participants on the measurement date. The fair value hierarchyestablished in SFAS 157 generally requires an entity to maximize the use ofobservable inputs and minimize the use of unobservable inputs when measuring fairvalue. Observable inputs reflect the assumptions market participants would use inpricing the asset or liability and are developed based on market data obtained fromsources independent of the reporting entity. Unobservable inputs reflect the entity'sown assumptions based on market data and the entity's judgments about theassumptions that market participants would use in pricing the asset or liability, andare to be developed based on the best information available in the circumstances.

Met Council determines the fair market value of its investment in securities based onthe fair value definition and hierarchy levels established in SFAS 157. SFAS 157establishes three levels within its hierarchy that may be used to measure fair value:

Level 1: Unadjusted quoted prices in active markets for identical assets or liabilties.

Level 2: Observable inputs, including Level 1 prices that have been adjusted;quoted prices for similar assets or liabilties; quoted prices in markets thatare less active than traded exchanges; and other inputs that areobservable or can be substantially corroborated by observable market data.

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June 30, 2009 and 2008

Note 4 - Fair Value Measurements (Continued)

Level 3: Unobservable inputs that are supported by little or no market activity andthat are a significant component of the fair value of the assets or liabilities.

Judgment is required in evaluating both quantitative and qualitative factors in thedetermination of significance for purposes of fair value level classification. Level 3amounts can include assets and liabilities whose value is determined using pricingmodels, discounted cash flow methodologies, or similar techniques, as well asassets and liabilities for which the determination of fair value requires significantmanagement judgment or estimation.

In many cases, a valuation technique used to measure fair value includes inputsfrom multiple levels of the fair value hierarchy. The lowest level of input that is asignificant component of the fair value measurements determines the placement ofthe entire fair value measurement in the hierarchy. Met Council's assessment of thesignificance of a particular input to the fair value measurement requires judgment,and may affect the classification of fair value assets and liabilities within the fairvalue hierarchy levels.

The following table sets forth, by level, Met Council's assets that were accounted forat fair value on a recurring basis as of June 30, 2009.

Investments in securities:

TotalFair Value

QuotedPrices

(Level 1)

SignificantOther

ObservableInputs

(Level 2)

SignificantOther

SignificantInputs

(Level 3)

Treasury securitiesrestricted $ 1.721.876 $ 1.721,876 $ - $

Investment held fordeferredcompensation plan $ 320,714 $ 243,986 $ 76,728 $

Restricted securities consist of reserves held for repairs, maintenance andunexpected operating expenditures. These reserves are held in separate accountsand are restricted in compliance with the U.S. Department of Housing and UrbanDevelopment.

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BUCHBINDER TUNICK & COMPANY LLP "'~2"


June 30, 2009 and 2008

Note 5 - Restricted Deposits

Restricted deposits consist of housing developer's contribution to an operatingreserve with the New York City Department of Housing Preservation andDevelopment ("HPD") in accordance with the Master Servicing Agreement for HPD'sSection 421 (a) - "Affordable and Inclusionary Housing Program." These reservesare held in separate accounts and generally are not available for operatingpurposes. Uses of these reserves are contingent upon HPD's prior written approval.

Note 6 - Fund for the Jewish Poor

In January 2004, Met Council established the Fund for the Jewish Poor (the "Fund"),a board-designated fund. Decisions regarding investments on behalf of the Fund forthe Jewish Poor are determined by a sub-committee of the board of directors. InApril 2004, Met Council invested $1,050,000 of the Fund's assets in the AscotLimited Partnership ("Ascot". On December 11, 2008, Ascot's general partneradvised Met Council that substantially all of its assets had been entrusted to BernardMadoff Investment Securities LLC and that Ascot would dissolve and utilize allremaining cash to wind down its operations. As of June 30, 2008, Met Council'sinvestment had a carrying value of $1,423,882. Due to the nature and magnitude ofthe investment advisor's and custodian's fraud, and the decision of Ascot toliquidate, Met Council has written down the investment to zero as of June 30, 2008and has reserved all its rights to recovery.

In January 2009, a contribution of $1,000,000 was made to Met Council for thepurpose of replenishing the Fund.

Changes in net assets of the Fund for the years ended June 30, 2009 and 2008 areas follows:

2009Fund for the Jewish Poor,

beginning of year

Investment return:Investment incomeNet depreciation

(realized and unrealized)

Total investment return

Contributions

Expenditure of funds

$ 771,212

14,045

14,045

1,082,177

(447,420)

648,802

1,420,014Fund for the Jewish Poor, end of year $

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BUCHBINDER TUNICK & COMPANY LLP

2008

$ 2,524,489

25,446

(1,423,882)

(1,398,436)

141,100

(495,941)

(1,753,277)

$ 771,212

"'.,,..


June 30,2009 and 2008

Note 7 - Investment in Senior Health Partners

Met Council, the Mount Sinai Hospital, and the Jewish Home and Hospital for theAged have entered into a membership agreement to form Senior Health Partners.The membership agreement consists of two classes of members, Class A and ClassB members. Met Council receives 15% of all cash distributions, as defined in theagreement.

Note 8- Fixed Assets

Fixed assets as of June 30, 2009 and 2008 consist of:

2009 2008

Land $ 28,964,762 $ 21,609,826Building 99,885,212 94,853,004Equipment 420,685 597,170Leasehold improvements 515,555 384,464Automobile 40,871 40,871

129,827,085 117,485,335

Less: accumulated depreciation andamortization (30,517,739) (27,027,836)

Construction in progress 2,249,317 1,768,898

Fixed assets, net $ 101,558,663 $ 92,226,397

Construction in progress consists of preliminary development cost of Council TowersV and Vi housing projects and Seaview Senior Living Corp. assisted living housingdevelopment.

Note 9 - Investments in Limited Partnerships and Limited Liabilty Company

Surfgate Limited Partnership

Surfgate HDFC, a wholly owned subsidiary of Met Council, owns a 100% interest inG-P Surf Avenue Corp., the general partner of Surfgate Limited Partnership. G-PSurf Avenue Corp. owns a 1 % interest in Surfgate Limited Partnership. Met Councilaccounts for its investment in Surfgate Limited Partnership on the equity method ofaccounting.

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BUCHBINDER TUNICK & COMPANY LLP ",~,..


June 30,2009 and 2008

Note 9 - Investments in Limited Partnerships and Limited Liabilty Company(Continued)

Seagate Limited Partnership

Shorefront Housing Council Development Fund Corp. ("Shorefront HDFC"), a whollyowned subsidiary of Met Council, owns a 100% interest in Seagate Neptune Corp.,the general partner of Seagate Limited Partnership. Seagate Neptune Corp. owns a1 % interest in Seagate Limited Partnership. During the year ended June 30, 2008,Met Council accounted for its investment in Seagate Limited Partnership on theequity method of accounting.

On May 29, 2009, Seagate Limited Partnership's limited partner, Corporate HousingInitiative Limited Partnership, transferred its 99% interest in Seagate LimitedPartnership to Shorefront HDFC. On June 1, 2009, Seagate Neptune Corporationtransferred its 1 % general partner interest in Seagate Limited Partnership toShorefront HDFC. As a result, Shorefront HDFC assumed the operations ofSeagate Limited Partnership. The accounts of Shorefront HDFC are included in thecombined financial statements as of June 30, 2009.

385 Third Avenue Associates, LP

On July 1, 2006, 385 Third Avenue Housing Development Fund Corporation ("385HDFC"), a wholly owned subsidiary of Met Council, entered into a limited partnershipagreement as a Class B limited partner of 385 Third Avenue Associates, LP. Thepurpose of 385 Third Avenue Associates, LP is to develop and operate a low incomeresidential housing project (the "Project" under the regulations of the New YorkState Housing Finance Agency (the "HFA"). The Project consists of 49 units locatedin New York, New York. 385 Third Avenue Associates, LP has a general partner,385 Third Avenue GP, Inc., a special limited partner, MMA Special Limited Partner,Inc., and an investor limited partner MMA Financial Institutional Tax Credits XXiX,LP. 385 HDFC owns a .009% interest in 385 Third Avenue Associates, LP.

Met Council accounts for its investment in 385 Third Avenue Associates, LP underthe cost method of accounting. See Note 10.

MC Caroline, LLC

On July 1, 2008, MC Caroline, LLC entered into a membership agreement withRelated Apartment Preservation, LLC to form Caroline Apartments Preservation GP,LLC. The purpose of Caroline Apartments Preservation GP, LLC is to acquire,construct, improve, operate and dispose of properties on such terms and conditionsas Related Apartment Preservation, LLC, the managing member, shall determine.Met Council is the sole member of MC Caroline, LLC. As of June 30, 2009 CarolineApartments Preservation GP, LLC had not commenced operations.

- 20-


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Note 10 - Investment in 385 Third Avenue Associates, LP

385 HDFC was assigned air rights from Atlantic Development Group, LLC inaccordance with an Inclusionary Air Rights Purchase Agreement. Pursuant to alimited partnership agreement 385 HDFC was required to contribute the proceedsfrom the sale of the air rights to 385 Third Avenue Associates, LP ("385 LP"), a lowincome residential housing project, in exchange for a Class B limited partnershipinterest. During the year ended June 30, 2009, 385 HDFC sold the air rights for$32,910,672 and contributed the proceeds to 385 LP.

Met Council has evaluated the recoverability of its investment in 385 LP as of June30, 2009 and has determined that an other than temporary impairment exists. MetCouncil and the management of 385 LP do not expect the operations of 385 LP togenerate sufficient cash flow that would allow for the full recovery of 385 HDFC'sinvestment. Met Council's management has reviewed the carrying value of theinvestment in relation to the expected future cash flows to be received from 385 LP.As a result, an impairment loss of $32,810,672 was recorded during the year endedJune 30, 2009. The carrying value of Met Council's investment in 385 LP was$100,000 as of June 30,2009.

Note 11 - Deferred Rent from Land Lease

On July 20, 2006, 385 HDFC entered into a land lease with 385 Third AvenueAssociates, LP. The lease agreement calls for equal annual payments ofapproximately $166,146 for 99 years, or $16,548,125, which was prepaid by 385Third Avenue Associates, LP in conjunction with the signing of the land lease.

The land is recorded at cost and the prepaid rent is being amortized to rental incomefrom land leases over the life of the lease.

- 22-



June 30, 2009 and 2008

Note 12 - Mortgage Payable - N.Y.S. Dormitory Authority

New York State Dormitory Authority converted a $6,488,965 advance from NewYork State Office of Mental Health to a $6,911,000 mortgage loan. The semi-annualmortgage payments of $259,630 include interest at a rate of 4.95% throughDecember 1, 2023. The loan is collateralized by a building located on East 96thStreet. Mortgage payable maturities during the next five years and thereafter aretabulated as follows:

Years Ending

June 30, Amount

20102011201220132014Thereafter

Total

$ 259,630519,260519,260519,260519,260

2,988,758

$ 5,325,428

Note 13 - Loans Payable

As of June 30, 2009 and 2008, Met Council had the following outstanding loans:

(1) On December 15, 2003, the UJA advanced $100,000 to be repaid over a five-year period, with the first payment of $20,000 due January 1, 2006. The loanwas non-interest bearing and was not collateralized. The balance on the loanwas paid during the year ended June 30, 2009. At June 30, 2008, theoutstanding balance was $20,000.

(2) On January 10, 2007, Met Council entered into an $800,000 unsecuredpredevelopment loan with Enterprise Community Loan Fund, Inc. relating to theproposed project consisting of the new construction of 515 units of housinglocated in Staten Island. The loan includes interest at 6.00% and is due ninemonths after the date of the note. At June 30, 2009 and 2008, the balance onthe note was $25,000, respectively. The outstanding balance was paid in thesubsequent period.

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BUCHBINDER TUNICK & COMPANY LLP ~~288


June 30, 2009 and 2008

Note 13 - Loans Payable (Continued)

(3) On August 18, 2006, Met Council entered into a $50,000 unsecuredpredevelopment loan with the Corporation for Supportive Housing relating to theconstruction of Council Towers V, a 70-unit HUD Section 202 senior housingproject. The loan originally was to be repaid without interest at the earlier of theHUD Section 202 construction loan closing, or February 28, 2008. The maturitydate was extended to December 31, 2008. The loan was paid in full inDecember 2009.

(4) Met Council has a $1,000,000 line of credit available from a bank. Met Councilhad borrowings under this line of credit of $50,000 as of June 30, 2009 and noborrowings as of June 30, 2008. The line of credit bears interest at 5.25% and iscollateralized by accounts receivable.

(5) OHR has a $2,000,000 line of credit available from a bank. As of June 30, 2009and 2008, OHR had no borrowings under this line of credit. The line of creditbears interest at 4.00% plus the prime rate, which is the interest rate announcedby the bank. The note is collateralized by accounts receivable.

(6) JCCSC has a $750,000 line of credit available from a bank. As of June 30, 2009and 2008, JCCSC had no borrowings under this line of credit. The line of creditbears interest at 5.25% and is collateralized by accounts receivable.

Interest has not been imputed on any of the above loans that carry below-marketinterest rates as they are payable to governmental entities and carry legalrestrictions. The restrictions require Met Council to use the property for low incomehousing, as defined in the loans and mortgage regulatory agreements.

Note 14 - Government Advances

Government advances represent advances on contracts for program expenses to beexpended in future periods.

Note 15 - HPD Advances

HPD advances represent monies advanced by a government agency in connectionwith repairs to some of the buildings.

Note 16 - HPD Mortgage Payable

The following loans of Seagate Limited Partnership were transferred to ShorefrontHDFC on June 1, 2009. The interest rates and service fees on these loans wereeliminated. All other terms of the loans remain the same.

- 24-



June 30,2009 and 2008

Note 16 - HPD Mortgage Payable (Continued)

A mortgage in the amount of $3,560,895, dated December 29, 1989, payable toNew York City and the City of New York Department of Housing Preservation andDevelopment. The loan is collateralized by a mortgage on the building. Themortgage payable bears interest of 0% and 1.25% per annum as of June 1, 2009and December 31,2008, respectively. The principal is due December 30,2021.The loan balance as of June 30, 2009 is $3,560,895.

A mortgage in the amount of $425,000, dated May 13, 1999, payable to New YorkCity Department of Housing Preservation and Development. The purpose ofobtaining a construction loan was to renovate the property and to thereafter comparethe same with a permanent project loan. The term of the loan is 30 years from theDebt Service Date which is defined as the 270th day after the date of substantialcompletion of the construction work. The mortgage note provides that interestaccrues at a rate of 0% and 1 % as of June 1, 2009 and December 31, 2008,respectively. The interest was accrued per annum but is not payable from the firstday of the first calendar month following the Debt Service Date.

Under the terms of the loan, the City of New York has agreed that, after the 26thyear of the loan, it would reduce and forgive the principal balance and any accruedinterest in equal decrements of 20% of the balance so that by the 30th year therewould be no interest or principal due. The balance of the construction loan was$425,000 as of June 30, 2009.

A mortgage in the amount of $635,000, dated June 22,2004, payable to New YorkCity Department of Housing Preservation and Development. The purpose ofobtaining a construction loan was to renovate the property and to thereafter comparethe same with a permanent project loan for a total amount of $635,000.

The term of the loan is 15 years from the Debt Service Date which is defined as the270th day after the date of substantial completion of the construction work. Themortgage note provides that no interest be accrued and that the note is forgivenafter 15 years. The balance of the construction loan was $635,000 at June 30,2009.-Interest has not been imputed on the above loan which carries a below-marketinterest rate as it is payable to a governmental entity and carries legal restrictions.The restrictions require Shorefront HDFC to use the property for low incomehousing, as defined in the loan and mortgage regulatory agreement.

- 25-



June 30, 2009 and 2008

Note 17 - HUD Advances

As of June 30, 2009 and 2008, a total of $48,150,914, respectively, is due to HUDfor buildings located in Brooklyn and the Bronx. The construction of the housingunits was financed through a direct loan under the provisions of Section 202 of theNational Housing Act.

The mortgage notes bear interest rates from 7.25% to 10.00% and mature over arange of years from 2035 to 2039.

Pursuant to certain agreements, the mortgage notes provide, among other things,that repayment of the note principal and interest is not required so long as thehousing remains available for very low income elderly persons, or very low incomepersons with disabilities. The mortgage notes mature after thirty years and if MetCouncil remains in compliance, the debt obligation will be converted to net assets.Furthermore, it is required that the mortgage notes may not otherwise become dueand payable by reason of default under the note, mortgage or regulatory agreement.

Note 18 - Retirement Plan

Met Council maintains a 403(b) retirement plan (the "Plan") for the benefit of itsemployees. The Plan is administered by Mutual of America Life Insurance Co.

Met Council contributes 3% of eligible employees' gross salaries to employeeaccounts in the Plan. Eligible employees have completed one year of service.

Employees may make voluntary additional contributions to the Plan in any amount,subject to limits established by the Internal Revenue Code. Employees canimmediately make voluntary contributions upon their employment, and may adjustthe amount of their contributions at any time.

The Plan's assets are invested in investment funds administered by Mutual ofAmerica Life Insurance Co. The investment funds include money market, debt,balanced, and equity funds. Employees select the investment funds for theiraccounts, including both the Met Council contribution and the employee'scontribution.

Employer contributions to this plan for the years ended June 30, 2009 and 2008were $292,882 and $267,551, respectively.

- 26-



June 30, 2009 and 2008

Note 19 - Operating Reserve Limited Partnerships

The operating reserve limited partnerships represent cash reserves with respect tothe Seagate and Surfgate projects. The funds were to be used in the event ofunforeseen expenditures. After the passage of the fifteen (15) year tax creditperiod, these monies will no longer be restricted. The restriction on Seagate reserveexpired on June 1, 2009. The balances in the reserve accounts at June 30, 2009and 2008, were $-0- and $118,937, respectively for Seagate, and $564,380 and$556,644, respectively for Surfgate.

Note 20 - Deferred Compensation Plan

Effective January 1, 2005, Met Council established a deferred compensationprogram for eligible employees under Section 457(F) of the Internal Revenue Code.Under this program, Met Council agrees to pay each covered employee all deferredamounts at retirement, at the time of termination by Met Council, or at death. At theoption of Met Council, payment shall be made in a one-time lump sum payment or inthe form of a straight-line annuity payable over the covered employee's lifetime. Thedeferred plan is not intended to be a qualified plan under the provisions of theInternal Revenue Code. All deferred compensation is invested by Met Council inindividual investment accounts in the name of Met CounciL. Met Council has theoption of changing the annual contribution, and the rights to amend, modify, orterminate the deferred plan. The contribution incurred by Met Council for the yearsended June 30,2009 and 2008, was $65,000 and $50,000, respectively. At June30, 2009 and 2008, the balance held at brokers was $320,714 and $249,070,respectively. The amounts held in this program are held in mutual funds.

Note 21 - Temporarily Restricted Net Assets

As of June 30, 2009 and 2008, temporarily restricted net assets were available forthe following program purposes:

Cash assistanceHousing

Total temporarily restricted net assets

2009 2008

$ 325,852 $ 230,6589,442 9,442

$ 335,294 $ 240.100

$ 240,100 $ 263,578217,634 240,000

(122,440) (263,478)

$ 335,294 $ 240,100

Temporarily restricted net assets, beginning of yearContributions for cash assistanceTemporarily restricted net assets used for

cash assistance

Temporarily restricted net assets, end of year

- 27-



June 30,2009 and 2008

Note 22 - Lease Commitments

As of June 30, 2009, Met Council is obligated under non-cancelable operatingleases covering its offce space and several of its program sites. The minimumannual rental commitments under operating leases in effect as of June 30, 2009 are:

Years Ending

June 30, Amount

2010 $ 2,357,9042011 2,234,7742012 2,224,9782013 1,997,0662014 1,406,316

Total $ 10,221,038

As of June 30, 2009, Project OHR, Inc. is obligated under a non-cancelableoperating lease covering its offce space. The minimum annual rental commitmentsunder the operating lease in effect as of June 30, 2009 are:

Years Ending

June 30, Amount

2010 $ 217,8252011 222,1822012 226,6252013 231,156

Total $ 897,788

- 28-



June 30, 2009 and 2008

Note 22 - Lease Commitments (Continued)

As of June 30, 2009, The Jewish Community Council Services Commission isobligated under a non-cancelable operating lease covering its office space. Theminimum annual rental commitments under the operating lease in effect as of June30, 2009 are:

Years Ending

June 30, Amount

2010 $ 137,4372011 140,1862012 142,9902013 145,848

Total $ 566,461

Rent expense for the years ended June 30, 2009 and 2008, was $946,067 and$1,024,944, respectively.

Note 23 - Risks and Uncertainties

Met Council invests in various investment securities. Investment securities areexposed to various risks such as interest rate, market, and credit risks. Due to thelevel of risk associated with certain investment securities, it is at least reasonablypossible that changes in the values of investment securities will occur in the nearterm and that such changes could materially affect the amounts reported in theaccompanying combined statements of financial position.

Met Council, either as a direct owner, advisor or general partner, has an economicinterest in the real estate projects that are subject to business risks associated withthe economy and level of unemployment in the New York metropolitan area, whichaffects occupancy as well as the tenants' ability to make rental payments. Inaddition, these projects operate in a heavily regulated environment. The operationsof these projects are subject to the administrative directives, rules and regulations ofFederal, State and local regulatory agencies, including, but not limited to, HUD.Such administrative directives, rules and regulations are subject to change by an actof Congress or an administrative change mandated by HUD and may occur with littlenotice or inadequate funding to pay for the related cost, including the additionaladministrative burden, to comply with a change.

- 29-



June 30, 2009 and 2008

Note 23 - Risks and Uncertainties (Continued)

Financial instruments that potentially subject Met Council to concentrations of creditrisk consist principally of cash and cash equivalents accounts in financial institutions,which from time to time exceed the Federal depository insurance coverage limit.Met Council's accounts are maintained in a major New York money centerinstitution.

Note 24 - Major Governmental Contract and Grant Revenue

Metropolitan Council on Jewish Poverty, Inc. has entered into major governmentcontracts with the following agencies:

New York City: Human Resources Administration, Department of Youth andCommunity Development, Department for the Aging, Department of HomelessServices.

New York State: Department of Health, Office of Mental Health, Office ofChildren and Family Services, Office for the Aging, Division of Criminal JusticeServices.

Federal: Department of Health and Human Services, Department of Housing andUrban Development.

Note 25 - Conditional Pledge

During 1994, Metropolitan Council on Jewish Poverty, Inc. entered into a leaseagreement with an unrelated party. The lease agreement is renewed yearly andallows Met Council the option to cancel without penalties. The lessee pledged todonate the building to Met Council after 20 years of consistent lease renewaL.

Note 26 - Contributed Property

East 92nd Street Housing Development Fund Corp. is a 23-unit rental apartmentbuilding located at 334 East 92nd Street, New York, NY. On April 5,2005, adeveloper contributed land, building, operating and operating reserves in the amountof $8,417,463 under the inclusionary zoning act.

- 30-



June 30,2009 and 2008

Note 26 - Contributed Propert (Continued)

231 East 7ih Street Housing Development Fund Corp. is a 12-unit rental apartmentbuilding project located at 231 East 7ih Street, New York, NY. On September 1,2007, a developer contributed land, building, and operating and replacement reservesin the amount of $7,349,443 for this project under the inclusionary zoning act.

91 Carlton Avenue Housing Development Fund Corp. is a 22-unit rental apartmentbuilding project located at 89-91 Carlton Avenue, Brooklyn, NY. On October 1,2007,a developer contributed land, building, and operating and replacement reserves in theamount of $6,636,726 for this project under the inclusionary zoning act.

Note 27 - Prior Period Adjustment

On July 20,2006, 385 HDFC entered into a 99-year land lease agreement with 385Third Avenue Associates, LP. The lease agreement calls for equal annual paymentsof approximately $166,146 for 99 years, or $16,548,125, which was prepaid by 385Third Avenue Associates, LP in conjunction with the signing of the land lease.Management has restated the combined financial statements for the year endedJune 30, 2008 as follows:

As Originally Prior PeriodReported Adjustment As Restated

Combined statement of financialposition as of July 1, 2007:

Investment in landDeferred rent from land leasesNet assets

Combined statement of activitiesfor the year ended June 30, 2008:

Rental income - land lease

$ - $16,548,125 $16,548,12516,471,975 16,471,975

36,750,576 76,150 36,826,726

166,146 166,146

The 2008 combined financial statements have been restated to reflect managementand general expenses of $5,340,233 and program services of $115,674,728. Thisrestatement had no effect on Met Council's total expenses for the year ended June30,2008 and total net assets as of June 30,2008.

Note 28 - Subsequent Event

Seaview Senior Living Corp., obtained a promissory note from Berkshire Bank in theamount of $500,000. The note matures on November 1, 2010 and bears an annualinterest of 6.50%. The purpose of the note is to provide funds for the preliminarydevelopment construction cost of a senior persons' living campus on vacant landlocated at 460 Brielle Avenue, Staten Island, New York. The loan is guaranteed bythe codevelopers.

- 31 -

BUCHBINDER TUNICK & COMPANY LLP "'..,..

BTcc.BUCHBINDER TUNICK & COMPANY LLPCERTIFIED PUBLIC ACCOUNTANTS

ONE PENNSYLVANIA PLAZA. SUITE 5335 . NEW YORK, NY 10119-0219

212-695-5003 . FAX 212-695-4638 . www.buchbinder.com

INDEPENDENT AUDITOR'S REPORTON SUPPLEMENTAL SCHEDULES

To the Board of DirectorsMetropolitan Council on Jewish Poverty, Inc. and Affiliates

We have audited the combined financial statements of Metropolitan Council onJewish Poverty, Inc. ("Met Council") and affiliates as of and for the years ended June 30,2009and 2008, upon which we have reported elsewhere herein under date of March 20, 2010. Ouraudits were performed for the purpose of forming an opinion on the basic combined financialstatements taken as a whole.

The accompanying supplemental combining schedules, appearing on pages 33through 44, are presented for purposes of additional analysis of the combined financialstatements rather than to present the financial position, changes in net assets, and cash flowsof the individual companies. Such information has been subjected to the auditing proceduresapplied in the audits of the basic combined financial statements and, in our opinion, is fairlystated in all material respects in relation to the basic combined financial statements taken as awhole.

The prior year summarized comparative information has been derived from theJune 30, 2008 combined financial statements and in our report on the supplemental combiningschedules dated March 20, 2009, we expressed an unqualified opinion on the supplementalcombining schedules in relation to the combined financial statements taken as a whole.

Ii~~i. ~ ¡~~ UPBUCHBINDER TUNICK & COMPANY LLP

March 20,2010

OFFICE IN : ROCKVILLE, MARYLAND i&~288


(Supplemental Schedules)Combining and Combined Statements of Financial Position

For the year ended June 30, 2009 (with comparative totals for June 30, 2008)

20082009 Restated

Home Care Combined CombinedMet Council Entities Housing Eliminations Total Total

ASSETSAssets:

Cash and cash equivalents $ 3,905,827 $ 10,761,367 $ 1,215,486 $ $ 15,882,680 $ 9,767,067Program grants and other receivables 8,560,900 10,195,778 36,053 18,792,731 17,203,703Inventory 27,494 27,494 17,340Security deposits and other assets 379,742 199,887 1,012,042 1,591,671 937,600Investments held for deferred compensation plan 320,714 320,714 249,070Fixed assets, net 6,604,936 94,953,727 101,558,663 92,226,397Restricted deposits 600,769 5,512,581 6,113,350 4,424,988Investments - restricted 1,721,876 1,721,876 2,495,986Investments in limited partnerships andlimited liability company 5,645,511 100,000 (5,632,421 ) 113,090 552,886

Investment in land 16,548,125 16,548,125 16,548,125

Total assets $ 26,045,893 $ 21,157,032 $ 121,099,890 $ (5,632,421 ) $ 162,670,394 $ 144,423,162

LIABILITIES AND NET ASSETS

Liabilties:Accounts payable, accrued expenses

and other payables $ 6,526,408 $ 3,659,148 $ 1,113,330 $ $ 11,298,886 $ 9,818,794Loans payable 125,000 125,000 95,000Government advances payable 3,689,312 16,956,580 20,645,892 15,966,185Mortgage payable - N.Y.S. Dormitory Authority 5,325,428 5,325,428 5,571,892Operating reserve limited partnerships 564,380 564,380 675,581Deferred compensation payable 320,714 320,714 249,070HPD advances 600,134 600,134 250,000HUD advances 48,150,914 48,150,914 48,150,914HPD mortgage payable 4,620,895 4,620,895Deferred rent from land lease 16,139,683 16,139,683 16,305,829

Total liabilties 16,551,242 20,615,728 70,624,956 107,791,926 97,083,265

Net assets:Unrestricted 9,159,357 541,304 50,474,934 (5,632,421 ) 54,543,174 47,099,797Temporarily restricted 335,294 335,294 240,100

Total net assets 9,494,651 541,304 50,474,934 (5,632,421 ) 54,878,468 47,339,897

Total liabilties and net assets $ 26,045,893 $ 21,157,032 $ 121,099,890 '$ (5,632,421 ) $ 162,670,394 $ 144,423,162

See independent auditor's report on supplemental schedules.

- 33-

BUCHBINDER TUNICK & COMPANY LLP (!~288


(Supplemental Schedules)Combining and Combined Statements of Activities


20082009 Restated

Home Care Combined CombinedMet Council Entities Housing Eliminations Total Total


Government grants $ 13,847,909 $ 82,683,298 $ 421,100 $ $ 96,952,307 $ 102,204,092Grants from UJAlFederation of New York 5,529,657 5,529,657 4,423,171Grants from United Way 247,147 247,147 180,608Rental income - land lease 166,146 166,146 166,146Private grants 2,997,333 908,804 3,906,137 3,197,790Building contributions 8,418,305 8,418,305 13,986,169Sale of air rights - 385 Third Avenue Associates, LP 32,910,672 32,910,672Impairment loss on investment in 385 Third Avenue Associates, LP (32,810,672) (32,810,672)Contributions and donated services 3,199,295 3,199,295 1,865,071

Total public support 25,821,341 83,592,102 9,105,551 118,518,994 126,023,047Special events revenue 686,869 686,869 677,300Less: cost of direct benefits to donors 68,400 68,400 83,766

Net revenue from special events 618,469 618,469 593,534Total public support and special events revenue 26,439,810 83,592,102 9,105,551 119,137,463 126,616,581

Other revenue:

Interest 34,062 66,134 194,252 294,448 430,088Program fees 1,230,211 1,230,211 1,807,810Rental income 5,227,614 5,227,614 4,220,569Other 527,387 527,387 462,083

Total other revenue 1,791,660 66,134 5,421,866 7,279,660 6,920,550Total revenue 28,231,470 83,658,236 14,527,417 126,417,123 133,537,131

Expenses:Program services 22,120,810 83,563,092 8,505,479 114,189,381 110,714,759Supporting services:

Management and general 4,099,197 4,099,197 10,300,202Fund-raising 298,779 298,779 281,319

Total functional expenses 26,518,786 83,563,092 8,505,479 118,587,357 121 ,296,280

Other expenses:Realized loss on investment (primarily Fund for the Jewish Poor in 2008) 6,013 6,013 1,430,724Interest 285,194 285,194 296,956

Total other expenses 291,207 291,207 1,727,680Total expenses 26,809,993 83,563,092 8,505,479 118,878,564 123,023,960

Changes in net assets:Unrestricted 1,421,477 95,144 6,021,938 7,538,559 10,513,171

Total changes in net assets 1,421,477 95,144 6,021,938 7,538,559 10,513,171Net assets, beginning of year, as originally reported 8,073,174 446,160 43,870,386 (5,049,823) 47,339,897 36,750,576Prior period adjustment 76,150Net assets contributed 582,610 (582,598) 12

Net assets, end of year, as restated $ 9,494,651 $ 541,304 $ 50,474,934 $ (5,632,421 ) $ 54,878,468 $ 47,339,897


- 34-



(Supplemental Schedules)Combining and Combined Statements of Functional Expenses


2009 2008Total Home Care Combined Combined

Met Council Entities Housing Eliminations Total Total

Salaries $ 9,349,403 $ 62,739,530 $ 695,284 $ $ 72,784,217 $ 71,290,953Employee benefits 3,436,208 19,224,833 283,287 22,944,328 28,105,773


Grants to aid individuals 2,198,524 221,339 2,419,863 2,044,863Rent and utilities 3,517,817 405,879 1,217,250 5,140,946 4,725,097Contract services 2,393,146 694,005 744,393 3,831,544 4,513,541Offce expense 785,918 72,822 22,399 881,139 645,635Postage 226,291 49,355 275,646 610,017Repairs and maintenance 144,599 2,211 290,864 437,674 394,361Telephone 194,308 67,342 49,897 311,547 329,232Furniture and equipment 469,012 20,830 489,842 391,947Travel 280,028 39,469 319,497 333,317Insurance 604,441 36,562 444,656 1,085,659 944,142Special events 222,343 222,343 267,363Real estate taxes 451,501 451,501 353,142Food 1,417,905 1,417,905 1,357,156Administrative fee and overhead 450,155 47,000 603,760 1,100,915 1,119,057Bank charges 26,347 27,357 53,704 19,783Depreciation and amortization 231,236 3,258,670 3,489,906 3,172,061Miscellaneous expenses 571,105 135,897 222,179 929,181 678,840

Total functional expenses $ 26,518,786 $ 83,563,092 $ 8,505,479 $ $ 118,587,357 $ 121,296,280


- 35 -

BUCHBINDER TUNICK & COMPANY LLP "'~'"


(Supplemental Schedules)Statements of Financial Position of Met Council


Fund for theMet Council Jewish Poor 2009 2008

Assets:Cash and cash equivalents $ 2,485,813 $ 1,420,014 $ 3,905,827 $ 1,196,688Program grants and other receivables 8,560,900 8,560,900 7,175,504Inventory 27,494 27,494 17,340Security deposits and other assets 379,742 379,742 422,237Investments held for deferred compensation plan 320,714 320,714 249,070Restricted deposits 600,769 600,769 704,743Fixed assets, net 6,604,936 6,604,936 6,604,161Investments in limited partnerships and limited liablity company 5,645,511 5,645,511 5,602,709

Total assets $ 24,625,879 $ 1,420,014 $ 26,045,893 $ 21,972,452

Liabilties:Accounts payable, accrued expenses

and other payables $ 6,526,408 $ $ 6,526,408 $ 5,151,428Mortgage payable - N.Y.S. Dormitory Authority 5,325,428 5,325,428 5,571,892Loans payable 125,000 125,000 95,000Government advances payable 3,689,312 3,689,312 2,156,307Deferred compensation payable 320,714 320,714 249,070Operating reserve limited partnerships 564,380 564,380 675,581

Total liabilities 16,551,242 16,551,242 13,899,278

Net assets:Unrestricted 7,739,343 1,420,014 9,159,357 7,833,074Temporarily restricted 335,294 335,294 240,100

Total net assets 8,074,637 1,420,014 9,494,651 8,073,174

T otalliabilties and net assets $ 24,625,879 $ 1,420,014 $ 26,045,893 $ 21,972,452


- 36-

BUCHBINDER TUNICK & COMPANY LLP 1!~268

METROPOLITAN COUNCIL ON JEWISH POVERTY, iNC. AND AFFILIATES

(Supplemental Schedules)Statements of Activities of Met Council


Fund forMet Council the Jewish Poor 2009 2008


Government grants $ 13,847,909 $ $ 13,847,909 $ 15,562,951Grants from UJNFederation of New York 5,529,657 5,529,657 4,423,171Grants from United Way 247,147 247,147 180,608Private grants 2,997,333 2,997,333 2,346,852Contributions and donated services 2,117,118 1,082,177 3,199,295 1,865,071

Total public support 24,739,164 1,082,177 25,821,341 24,378,653

Special events revenue 686,869 686,869 677,300Less: cost of direct benefits to donors 68,400 68,400 83,766

Net revenue from special events 618,469 618,469 593,534Total public support and special events revenue 25,357,633 1,082,177 26,439,810 24,972,187

Other revenue:

Interest 20,017 14,045 34,062 35,150Program fees 1,230,211 1,230,211 1,770,787Other 527,387 527,387 462,083

Total other revenue 1,777,615 14,045 1,791,660 2,268,020Total revenue 27,135,248 1,096,222 28,231.470 27,240,207

Expenses:Program services 21,673,390 447,420 22,120,810 16,310,409Supporting services:

Management and general 4,099,197 4,099,197 10,300,202Fund-raising 298,779 298,779 281,319

Total functional expenses 26,071,366 447,420 26,518,786 26,891,930

Other expenses:Realized loss on investments (primarily Fund for the Jewish Poor in 2008) 6,013 6,013 1,430,724Interest 285,194 285,194 296,956

Total other expenses 291,207 291,207 1,727,680Total expenses 26,362,573 447,420 26,809,993 28,619,610

Changes in net assets:Unrestricted 772,675 648,802 1,421,477 (1,379,403)

Net assets, beginning of year 7,301,962 771,212 8,073,174 9,452,577

Net assets, end of year $ 8,074,637 $ 1,420,014 $ 9,494,651 $ 8,073,174


- 37-



(Supplemental Schedules)Combining and Combined Statements of Functional Expenses of Met CouncilFor the year ended June 30, 2009 (with comparative totals for June 30, 2008)

PROGRAMS

2009

TotalProgram Management

Crisis Intervention Housing Career Services Food Home Services Services and General Fund-raising Total 2008

Salaries $ 3,915,004 $ 1,770,969 $ 1,004,309 $ 440,143 $ 595,685 $ 7,726,110 $ 1,623,293 $ $ 9,349,403 $ 9,803,439Employee benefits 1,151,426 512,562 301,471 128,554 178,572 2,272,585 1,163,623 3,436,208 3,271,205

Total salaries andemployee benefits expenses 5,066,430 2,283,531 1,305,780 568,697 774,257 9,998,695 2,786,916 12,785,611 13,074,644

Grants to aid individuals 2,063,886 29,628 2,093,514 105,010 2,198,524 1,860,202Rent and utilities 459,203 2,189,222 343,314 146,918 115,821 3,254,478 249,839 13,500 3,517,817 3,438,271Contract services 1,115,482 462,903 531,041 33,934 2,143,360 247,764 2,022 2,393,146 3,100,856Offce expense 353,459 149,438 109,306 27,526 46,750 686,479 31,565 67,874 785,918 873,466Postage 32,223 363 7,113 1,663 41,362 8,971 175,958 226,291 229,137Repairs and maintenance 46,071 80,135 2,398 4,102 7,448 140,154 4,445 144,599 206,030Telephone 117,398 32,871 15,625 9,299 11,863 187,056 7,252 194,308 192,754Furniture and equipment 130,143 190,947 34,399 24,804 34,126 414,419 54,593 469,012 372,826Travel 102,322 24,195 33,826 39,105 27,838 227,286 52,538 204 280,028 300,443Insurance 72,814 154,593 47,000 43,772 25,383 343,562 260,879 604,441 497,215Special events 149,474 8,505 8,559 318 166,856 16,266 39,221 222,343 267,363Food 131,722 1,138 8 1,284,796 1,417,664 241 1,417,905 1,357,156Administrative fee and overhead 117,012 284,354 8,743 40,046 450,155 450,155 487,393Bank charges 26,347 26,347 9,091Depreciation and amortization 198,232 198,232 33,004 231,236 236,544Miscellaneous expenses 232,603 63,262 32,115 25,562 3,996 357,538 213,567 571,105 388,539

Total functional expenses $ 10,190,242 $ 6,123,689 $ 2,479,227 $ 2,239,806 $ 1,087,846 $ 22,120,810 $ 4,099,197 $ 298,779 $26,518,786 $26,891,930


- 38 -

BUCHBINDER TUNICK & COMPANY LLP C!~28a


(Supplemental Schedules)Combining and Combined Statements of Financial Position of Housing


2009 2008lexington Shorefront Housing Council Combined Combined

Council Council Council Council Council Council 141 East East 54th St. 351 East Avenue 385 231 East 91 Carlton East 92nd Council Management Housing HousingTowers I Towers II Towers III Towers iV Towers V Towers Vi 23rd Street HDFC 61st Street HDFC Third Avenue 77th Street Avenue Street HDFC Corp. Companies Companies

ASSETSAssets:

Cash and cash equivalents $ 62,769 $ 38,805 $ 58,086 $ 94.955 $ $ $ 127,710 $ 30.976 $ 228,948 $ 99,140 $ $ 31,147 $ 12,281 $ 80,458 $ 120,039 $ 230,172 $ 1,215,486 $ 997,018Program grants and other receivables 931 123 1,595 969 673 811 7,197 4,187 77 3,988 1,680 12.179 1,643 36,053 28,187Security deposits and other assets 21.394 15,422 176,998 95,252 12 17,414 24,074 20,090 639,700 1,686 1,012,042 410,010Fixed assets, net 6.976,949 7,464.603 9,124,506 9,814,445 301,319 48,815 4,508,006 5.352,082 11,971,917 13,541,823 7,175,075 6,353,519 8,348,157 3,932,511 20,000 94,953,727 85,622,236Restricted deposits 810,046 1,112,731 1.011,756 1,010,585 50,789 28,088 364,531 312,946 25,958 80,928 25,278 678,945 5,512,581 3,720,245Investments - restricted 671,226 707,646 213,002 130.002 1,721,876 2,495,986Investments in limited parlnerships andlimited liability company 100,000 100,000Investment in land 16,548,125 16,548,125 16,548,125

Total assets $ 8,521,921 $ 9,343,908 $ 10,408,945 $ 11,050,956 $ 301,319 $ 48,815 $ 4,708,572 $ 5,427,379 $ 12,749,591 $ 14,053,348 $ 16,648,137 $ 7,249,671 $ 6,474,790 $ 8,475,663 $ 5,383,374 $ 253,501 $ 121,099,890 $ 109,821,807

liABILITIES AND NET ASSETSliabilities:

Accounts payable. accrued expensesand other payables $ 111,108 $ 129,489 $ 131,686 $ 113,029 $ $ $ 51,706 $ 38,436 $ 97,180 $ 79,130 $ $ 36,426 $ 67,500 $ 42,490 $ 179,881 $ 35,269 $ 1,113,330 $ 1,112,994Govemment advances payable

131,684HPD advances 250,000 301,319 48,815 600,134 250,000HUD advances 11,788,314 12,028,200 12,196,100 12,138,300 48,150,914 48,150,914HPD mortgage payable 4,620,895 4,620,895Deferred rent from land lease 16,139,683 16,139,683 16,305,829

Totalliabililies 12,149,422 12,157,689 12,327,786 12,251,329 301,319 48,815 51,706 38,436 97,180 79,130 16,139,683 36,426 67,500 42,490 4,800,776 35,269 70,624,956 65,951,421Net assets:

Unrestricted (3,627,501) (2,813,781) (1,918,841) (1,200,373) 4,656,866 5,388,943 12,652,411 13,974,218 508,454 7,213,245 6,407,290 8,433,173 582,598 218,232 50,474,934 43,870,386Total net assets (3,627,501 ) (2,813,781) (1,918,841 ) (1,200,373) 4,656,866 5,388,943 12,652,411 13,974,218 508,454 7,213,245 6,407,290 8,433,173 582,598 218.232 50,474,934 43,870,386Total liabilities and net assets $ 8,521,921 $ 9,343,908 $ 10,408,945 $ 11,050,956 $ 301,319 $ 48.815 $ 4,708,572 $ 5,427,379 $ 12,749,591 $ 14,053,348 $ 16,648,137 $ 7.249,671 $ 6,474,790 $ 8,475,663 $ 5,383,374 $ 253,501 $ 121,099,890 $ 109,821,807

See independent auditots report on supplemental schedules.

- 39 -

BUCHBINDER TUNICK & COMPANY LLP CF~268


(Supplemental Schedules)Combining and Combined Statements of Activities of Housing


20082009 Restated

Lexington Shorefront Housing Council Combined CombinedCouncil Council Council Council Council Council 141 East East 54th Sl. 351 East Avenue 385 231 East 91 Carlton East 92nd Council Management Housing Housing

Towers I Towers II Towers III Towers IV Towers V Towers Vi 23rd Street HDFC 61st Street HDFC Third Avenue 77th Street Avenue Street HDFC Corp. Companies CompaniesRevenue:Public support:

Government grants $ 221,339 $ $ $ $ $ $ $ $ $ $ $ $ $ $ 39,761 $ 160,000 $ 421,100 $ 342,738Building contributions8,418,305 8,418,305 13,986,169Rental income - land lease 166,146 166,146 166,146

Sale of air rights - 385 Third Avenue Associates, LP 32,910,672 32,910,672Impairment loss on investment in

385 Third Avenue Associates, LP(32,810,672) (32,810,672)

Total public support 221,339 266,146 8,418,305 39,761 160,000 9,105,551 14,495,053

Special events revenueLess: cost of direct benefis to donors

Net revenue from special events

Total public support and special events revenue 221,339 266,146 8,418,305 39,761 160,000 9,105,551 14,495,053

Other revenue:

Interest 46,212 63,073 33,558 27,245 2,099 479 11,546 8,024 464 1,155 397 194,252 259,861Program fees

37,023Other 711,286 730,254 984,401 855,269 196,910 112,160 552,607 386,364 146,458 198,212 200,375 153,318 5,227,614 4,220,569

Total other revenue 757,498 793,327 1,017,959 882,514 199,009 112,639 564,153 394,388 146,922 199,367 200,772 153,318 5,421,866 4,517,453Total revenue 978,837 793,327 1,017,959 882,514 199,009 112,639 564,153 394,388 266,146 146,922 199,367 8,619,077 39,761 313,318 14,527,417 19,012,506

Expenses:Program services 1,488,325 1,266,814 1,285,166 1,172,109 309,942 276,689 830,247 848,564 254,812 378,941 185,904 39,761 168,205 8,505,479 7,278,373Supporting services:

Management and generalFund-raisingTotal functional expenses 1,488,325 1,266,814 1,285,166 1,172,109 309,942 276,689 830,247 848,564 254,812 378,941 185,904 39,761 168,205 8,505,479 7,278,373

Other expenses:Interest

Total other expenses

Total expenses 1,488,325 1,266,814 1,285,166 1,172,109 309,942 276,689 830,247 848,564 254,812 378,941 185,904 39,761 168,205 8,505,479 7,278,373Changes in net assets from housing:

Unrestricted (509,488) (473,487) (267,207) (289,595) (110,933) (164,050) (266,094) (454,176) 266,146 (107,890) (179,574) 8,433,173 145,113 6,021,938 11,734,133

Net assets, beginning of year, as originally reported (3,118,013) (2,340,294) (1,651,634) (910,778) 4,767,799 5,552,993 12,918,505 14,428,394 242,296 7,321,135 6,586,864 73,119 43,870,386 32,060,103Prior period adjustment76,150Net assets contributed

12 582,598 582,610

Net assets, end of year, as restated $ (3,627,501) $ (2,813,781) $ (1,918,841) $ (1,200,373) $ $ $ 4,656,866 $ 5,388,943 $12,652,411 $13,974,218 $ 508,454 $ 7,213,245 $ 6,407,290 $ 8,433,173 $ 582,598 $ 218,232 $ 50,474,934 $ 43,870,386


- 40 -



(Supplemental Schedules)Combining and Combined Statements of Functional Expenses of Housing


2009 2008Lexington Shorefront Housing Council Combined Combined

Council Council Council Council Council Council 141 East East 54th SI. 351 East Avenue 385 231 East 91 Carlton East 92nd Council Management Housing HousingTowers I Towers II Towers III Towers IV Towers V Towers Vi 23rd Street HDFC 61st Street HDFC Third Avenue 77th Street Avenue Street HDFC Corp. Companies Companies

Salaries $ 106,343 $ 98,219 $ 83,103 $ 76,487 $ $ $ 16,139 $ 10,712 $ 70,904 $ 45,405 $ $ 7,808 $ 32,914 $ 5,588 $ 18,585 $ 123,077 $ 695,284 $ 553,645Employee benefits 44,847 57,942 42,898 49,540 4,842 3,214 14,911 8,701 2,342 9,874 1,677 5,576 36,923 283,287 226,859Total salaries and employee benefits expenses 151,190 156,161 126,001 126,027 20,981 13,926 85,815 54,106 10,150 42,788 7,265 24,161 160,000 978,571 780,504

Grants to aid individuals 221,339 221,339 184,661Rent and utilities 223,279 213,348 215,950 180,118 35,230 20,420 98,045 84,727 31,719 64,931 49,483 1,217,250 901,229Contract services 96,035 125,608 127,578 98,436 24,325 6,596 117,082 85,004 3,316 34,559 23,854 2,000 744,393 688,104Offce expense 6,627 5,225 2,026 3,594 600 4,327 22,399 10,681Repairs and maintenance 50,869 69,375 54,401 28,269 6,580 9,323 13,628 17,919 4,636 8,632 16,232 11,000 290,864 185,350Telephone 5,634 7,609 7,025 8,547 1,400 1,572 5,648 4,541 1,283 2,482 1,514 2,642 49,897 46,612Insurance 67,368 67,642 67,512 67,921 33,231 14,339 40,500 36,007 10,693 16,200 23,243 444,656 413,479Real estate taxes 49,963 49,150 94,525 58,225 15,563 18,089 78,107 39,078 25,465 3,969 19,367 451,501 353,142Administrative fee and overhead 118,236 112,104 112,104 112,104 25,247 14,840 49,548 32,973 10,258 15,706 640 603,760 564,664Depreciation and amortization 457,013 432,318 454,505 464,583 134,152 164,236 323,808 469,494 139,782 174,473 44,306 3,258,670 2,935,517Miscellaneous expenses 40,772 28,274 23,539 24,285 12,633 13,348 18,066 24,715 17,510 15,201 2,600 1,236 222,179 214,430

Total functional expenses $ 1,488,325 $ 1,266,814 $ 1,285,166 $ 1,172,109 $ $ $ 309,942 $ 276,689 $ 830,247 $ 848,564 $ $ 254,812 $ 378,941 $ 185,904 $ 39,761 $ 168,205 $ 8,505,479 $ 7,278,373


. 41 -



(Supplemental Schedules)Combining and Combined Statements of Financial Position of Home Care


2009 2008Met Council Combined Combined

Project Home Care Home Care Home CareOHR, Inc. JCCSC, Inc. Services Entities Entities

ASSETSAssets:

Cash and cash equivalents $ 7,447,945 $ 2,869,877 $ 443,545 $ 10,761,367 $ 7,573,361Program grants and other receivables 6,432,290 3,653,531 109,957 10,195,778 10,000,012Security deposits and other assets 140,888 40,323 18,676 199,887 105,353

Total assets $ 14,021,123 $ 6,563,731 $ 572,178 $ 21,157,032 $ 17,678,726

LIABILITIES AND NET ASSETSLiabilties:

Accounts payable, accrued expensesand other payables $ 2,726,593 $ 901,681 $ 30,874 $ 3,659,148 $ 3,554,372

Government advances payable 11,294,530 5,662,050 16,956,580 13,678,194Total liabilties 14,021,123 6,563,731 30,874 20,615,728 17,232,566

Net assets:Unrestricted 541,304 541,304 446,160

Total net assets 541,304 541,304 446,160

Total liabilities and net assets $ 14,021,123 $ 6,563,731 $ 572,178 $ 21,157,032 $ 17,678,726


- 42-



(Supplemental Schedules)Combining and Combined Statements of Activities of Home Care



Project Home Care Home Care Home CareOHR, Inc. JCCSC, Inc. Services Entities Entities


Government grants $ 55,601,877 $ .27,081,421 $ $ 82,683,298 $ 86,298,403Private grants 908,804 908,804 850,938

Total public support 55,601,877 27,081,421 908,804 83,592,102 87,149,341

Less: cost of direct benefits to donorsNet revenue from special eventsTotal public support and special events revenue 55,601,877 27,081,421 908,804 83,592,102 87,149,341

Other revenue:

Interest 40,560 25,574 66,134 135,077Total other revenue 40,560 25,574 66,134 135,077Total revenue 55,642,437 27,106,995 908,804 83,658,236 87,284,418

Expenses:Program services 55,642,437 27,106,995 813,660 83,563,092 87,125,977

Total functional expenses 55,642,437 27,106,995 813,660 83,563,092 87,125,977

Total expenses 55,642,437 27,106,995 813,660 83,563,092 87,125,977

Changes in net assets:

Unrestricted 95,144 95,144 158,441

Net assets, beginning of year 446,160 446,160 287,719Net assets, end of year $ $ $ 541,304 $ 541,304 $ 446,160


- 43 -



(Supplemental Schedules)Combining and Combined Statements of Functional Expenses of Home CareFor the year ended June 30, 2009 (with comparative totals for June 30, 2008)


Project Home Care Home HomeOHR, Inc. JCCSC, Inc. Services Care Entities Care Entities

Salaries $ 41,940,617 $ 20,194,581 $ 604,332 $ 62,739,530 $ 60,933,869Employee benefits 12,760,747 6,352,889 111,197 19,224,833 24,607,709


Rent and utilities 256,199 149,680 405,879 385,597Contract services 397,676 260,830 35,499 694,005 724,581Offce expense 36,662 30,644 5,516 72,822 84,150Postage 27,313 20,762 1,280 49,355 58,218Repairs and maintenance 2,211 2,211 2,981Telephone 38,902 27,848 592 67,342 64,904Furniture and equipment 16,274 4,257 299 20,830 19,121Travel 22,797 9,727 6,945 39,469 32,874Insurance 36,562 36,562 33,448Administrative fee and overhead 30,000 17,000 47,000 67,000Bank charges 23,699 3,618 40 27,357 10,692Miscellaneous expenses 89,340 35,159 11,398 135,897 100,833

Total functional expenses $ 55,642,437 $ 27,106,995 $ 813,660 $ 83,563,092 $ 87,125,977


- 44-


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