Financial Statements

Consolidated Statements of Financial Position
Consolidated Statement of Financial Position
Consolidated Statement of Activities and Changes in Net Assets
Consolidated Statement of Functional Expenses
Consolidated Statement of Cash Flows
Schedule of Expenditures for Federal Awards
Notes to Consolidated Financial Statements
Notes to the Schedule of Expenditures of Federal Awards
Report on Internal Control Over Financial Reporting and on Compliance and other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards
Independent Auditors' Report on Compliance with Requirements that Could Have a Direct and Material Effect on Each Major Program and on Internal Control Over Compliance in Accordance with OMB Circular A-133
Independent Auditors' Report

American Foundation for the Blind, Inc.

Consolidated Statement of Financial Position
JUNE 30, 2011 and 2011

(in thousands of dollars)	2011	2010

ASSETS
Cash and cash equivalents	$ 3,756	$ 4,542
Investments, at fair value	37,503	32,362
Accounts receivable, net	377	313
Pledges and grants receivable, net	3,250	3,661
Other receivables	199	551
Inventories, net	344	353
Prepaid expenses and other assets	154	322
Property and equipment, net	1,919	2,052

TOTAL ASSETS	$ 47,502	$ 44,156

LIABILITIES AND NET ASSETS
Accounts payable and accrued expenses	$ 1,364	$ 935
Accrued postretirement benefit liability	153	212
Deferred revenue	226	132
Deferred rent obligation	495	476
Obligations under capital leases	38	78

TOTAL LIABILITIES	$ 2,276	$ 1,833

Net Assets
Unrestricted	26,457	22,548
Temporarily restricted	14,879	15,996
Permanently restricted	3,890	3,779

Total Net Assets	45,226	42,323

TOTAL LIABILITIES AND NET ASSETS	$ 47,502	$ 44,156

American Foundation for the Blind, Inc.

Consolidated Statement of Activities and Changes in Net Assets
FOR THE YEAR ENDED JUNE 30, 2011 AND 2010

(in thousands of dollars)	Unrestricted	Temporarily Restricted	Permanently Restricted	Total 2011	Total 2010

Revenues, gains and other support:
Public support	1,788	1,229	78	3,095	2,840
Legacies and bequests	4,007	1	33	4,041	1,657
Grants from government agencies	—	557	—	557	146

Total Public Support	5,795	1,787	111	7,693	4,643

Other Revenue:
Sales, primarily Text Book and other publications	787	3	—	790	1,533
Investment activity	4,396	1,766	—	6,162	4,927
Royalty and other income, net	—	—	—	—	—
Miscellaneous revenue	436	188	—	624	2,882

Total other revenue before discontinued operations	5,619	1,957	—	7,576	9,342
Less revenues from discontinued operations	(24)	—	—	(24)	(864)

Total other revenue from continuing operations	5,595	1,957	—	7,552	8,478

Net assets released from restrictions	4,861	(4,861)	—	—	—

Total revenues, gains and other support from continuing operations	16,251	(1,117)	111	15,245	13,121

EXPENSES
Program services:
Knowledge Building and information dissemination	4,0721	—	—	4,072	3,981
Technology solutions	3,618	—	—	3,618	3,148
Advocacy and public policy	818	—	—	818	770
Production, sale, and distribution of audio material	(5)	—	—	(5)	1,189

Total program services	8,503	—	—	8,503	9,088

Supporting services:
Management and general	1,073	—	—	1,073	1,572
Fundraising	2,785	—	—	2,785	3,201

Total supporting services	3,858	—	—	3,858	4,773

Total expenses before discontinued operations	12,361	—	—	12,361	13,861
Less expenses from discontinued operations	5	—	—	5	(1,189)

Total expenses from continuing operations	12,366	—	—	12,366	12,672

Changes in net assets before loss on discontinued operations and postretirement related changes	3,885	(1,117);	111	2,879	449
Gain (Loss) on discontinued operations (Note 16)	29	—	—	29	(325)
Postretirement related changes other than net periodic costs	(5)	—	—	(5)	8

Changes in net assets	3,909	(1,117)	111	2,903	132
Net assets, beginning of year	22,548	15,996	3,779	42,323	42,191

Net assets, end of year	26,457	14,879	3,890	45,226	42,323

American Foundation for the Blind, Inc.

Consolidated Statement of Functional Expenses
FOR THE YEAR ENDED JUNE 30, 2011 and 2010

Program Services

(in thousands of dollars)	Knowledge Building & Information Dissemination	Technology Solutions	Advocacy and Public Policy	Production, Sale and Distribution of of Audio Materials	Total Program Services

Salaries and related expenses	$ 2,347	$ 2,410	$ 481	$ —	$ 5,238
Occupancy	362	316	119	—	797
Cost of materials sold	260	192	6	13	471
Office and operating expenses	95	114	25	(31)	203
Postage and shipping supplies	13	8	1	—	22
Other selling expenses	322	5	11	—	338
Readers fees	—	9;	—	—	9
Professional services	236	223	30	—	489
Printed materials	33	15	11	—	59
Travel and meetings	113	123	43	—	279
Project expenses	74	5	52	—	131
Depreciation and amortization	198	126	17	9	350
Other expenses (Note 10A)	19	72	22	4	117

Total expenses before discontinued operations	4,072	3,618	818	(5)	8,503

Less expenses from discontinued operations	—	—	—	5	5

Total expenses from continuing operations	$ 4,072	$ 3,618	$ 818	—	$ 8,508

Supporting Services

(in thousands)	Management and General	Fundraising	Total Supporting Services	TOTAL EXPENSES 2011	TOTAL EXPENSES 2010

Salaries and related expenses	$ 612	$ 875	$ 1,487	$ 6,725	$ 7,130
Occupancy	136	110	246	1,043	1,088
Cost of materials sold	—	—	—	471	679
Office and operating expenses	73	134	207	410	590
Postage and shipping supplies	2	522	524	546	371
Other selling expenses	1	6	7	345	319
Readers fees	—	—	—	9	83
Professional services	71	274	345	834	1,297
Printed materials	2	670	672	731	579
Travel and meetings	59	62	121	400	438
Project expenses	4	2	6	137	332
Depreciation and amortization	64	9	73	423	630
Other expenses	49	121	170	287	325

Total expenses before discontinued operations	$ 1,073	$ 2,785	$ 3,858	$ 12,361	$ 13,861

Less expenses from discontinued operations	$ —	$ —	$ —	$ 5	$ (1,189)

Total expenses from continuing operations	$ 1,073	$ 2,785	$ 3,858	$ 12,366	$ 12,672

American Foundation for the Blind, Inc.

Consolidated Statement of Cash Flows
FOR THE YEAR ENDED JUNE 30, 2011 AND 2010

(in thousands of dollars)	2011	2010

CASH FLOWS FROM OPERATING ACTIVITIES
Change in net assets	$2,903	$132
Adjustments to reconcile change in net assets to net cash provided (used) by operating activities:
Depreciation and amortization	423	630
Realized (gain) loss on sales of investments	(49)	611
Unrealized (gain) loss on investments	(4,768)	(4,412)
Increase (decrease) in pledge discount	23	62
Bad debt expense	100	105
Contributions restricted for investment in endowment	(111)	(217)
(Gain) Loss on disposal of equipment	—	(75)
Decrease (increase) in:
Accounts and pledges receivable	366	2,299
Other receivables	352	(260)
Inventories	9	89
Prepaid expenses and other assets	168	(75)
Increase (decrease) in:
Accounts payable and accrued expenses	429	(630)
Accrued postretirement benefit liability	(59)	(56)
Deferred revenue and rent obligation	113	438

Net Cash Provided (Used) In Operating Activities	(101)	(1,359)

Cash Flows from Investing Activities
Proceeds from sales of investments	838	9,897
Purchases of investments	(1,162)	(5,333)
Proceeds from sales of property and equipment	—	94
Purchases of property and equipment	(290)	(821)

Net Cash Provided (Used) in Investing Activities	(614)	3,837

Cash Flows from Financing Activities
Contributions restricted for endowment	111	217
Principle payments under capital lease obligations	(40)	(39)

Net Cash Provided (Used) by Financing Activities	71	178

Net Increase (Decrease) in Cash and Cash Equivalents	(644)	2,656

Beginning Cash and Cash Equivalents	4,542	1,886

Ending Cash and Cash Equivalents	$3,898	$4,542

Supplemental Disclosures:
Cash payments for interest	$2	$3

American Foundation for the Blind, Inc.

Schedule of Expenditures of Federal Awards
for the Year Ended June 30, 2011

Federal Grantor/Pass-Through Grantor/Program Title	Federal CFDA Number	Pass-Through Entity identifying Number	Federal Expenditures

U.S. DEPARTMENT OF EDUCATION
Direct Programs
National Institute on Disability and Rehabilitation Research	84.133G		$ 164,378
Special Projects and Demonstrations for Providing Vocational Rehabilitation Services to Individuals With Severe Disabilities	84.235K		327,315

Subtotal of Education Direct Programs			491,693
Department of Education Pass-Through Program From:
Mississippi State University-RRTC on Employment Outcomes for Individuals who are Blind or Visually Impaired	84.133B	H133B100022	65,513

Total U.S. Department of Education			$ 557,206

Total Expenditures of Federal Awards			$ 557,206