8. Does ASPCA have a defined benefit or defined contribution retirement plan? Do they have enough money invested currently to pay for estimated future retirement benefits? How do you know? (8)

9.a. Assume that in December 2014 ASPCA pays a $50,000 liability insurance premium for its animal health services to cover the first 6 months of 2015. How would this affect the 2014 financial statements that you have? Please be specific about which accounts (line items) would be affected (14).

Statement of Financial Position

Statement of Activities

Statement of Functional Expenses

b. Assume that on June 30, 2015 ASPCA has used up the insurance coverage they purchased the previous December. How would this affect the 2015 financial statements? (Note: dont worry about whether they bought more insurance).

THE AMERICAN SOCIETY FOR THE PREVENTION OF CRUELTY TO ANIMALS Notes to Financial Statements December 31, 2014 and 2013 The following tables present the ASPCA's activities for the years ended December 31, 2014 and 2013 for assets classified in Level 3: Total $ Beginning balance at January 1, 2014 Acquisitions Dispositions Net appreciation Ending balance at December 31, 2014 Fund of funds 2,753,258 278,912 (680,831) 164,771 2,516,110 Private equity 5,857,541 1,885,431 (1,113,124) 7,630 8,610,799 2,164,343 (1,793,955) 172,401 9,153,588 $ 6,637,478 Private equity Total $ Beginning balance at January 1, 2013 Acquisitions Dispositions Net appreciation Ending balance at December 31, 2013 Fund of funds 2,267,507 532,464 (610,984) 564,271 2,753,258 5,132,619 562,501 (917,266) 1,079,687 5,857,541 7,400,126 1,094,965 (1,528,250) 1,643,958 8,610,799 $ Investments with a fair value of $10,019,347 and $8,551,417 and cash equivalents of $274,807 and $204,565 at December 31, 2014 and 2013, respectively, were held in investment accounts relating to charitable gift annuities, in compliance with the insurance laws of various states. The ASPCA maintains separate and distinct reserve funds adequate to meet the future payments of all outstanding charitable gift annuities administered by the ASPCA. Certain information regarding the liquidity and redemption features of the ASPCA's alternative investments (measured at NAV) is as follows: 2014 Fair value 2013 Fair value Unfunded commitments 2014 Redemption frequency Redemption notice period $ Equity long (a) Distressed debt (b) Global asset allocation (c) Funds of funds (d) Fund of funds - private equity (e) Fund of funds - capital appreciation (f) Private equity (9) Emerging markets (h) 8,252,116 6,607,544 8,419,334 5,941,534 2,516,110 9,743,644 6,646,321 6,123,585 5,804,266 2,753,258 Monthly Quarterly Weekly Annual None 30 days 90 days 5 days 60 days 1,061,604 N/A 90 days 6,603,192 6,637,478 5,982,816 7,515,280 5,857,541 6,198,167 6,533,415 Quarterly None Daily N/A 3-5 days S 50,960,124 50,642,062 7,595,019 THE AMERICAN SOCIETY FOR THE PREVENTION OF CRUELTY TO ANIMALS Statement of Activities Year ended December 31, 2014 Temporarily restricted Permanently restricted Unrestricted Total $ 8,560,115 128,267,214 14,585,922 14,297,431 4,431,672 136,827,329 14,585,922 26,710,253 4,431,672 12,412,822 5,272,000 5.272.000 17,648,146 (17,648,146) 184,502,385 3,324,791 187,827,176 36,325,919 33,606,739 22,399,770 22,800,090 15,445,879 130,578,397 ||||| 11111 36,325,919 33,606,739 22,399,770 22,800,090 15,445,879 130,578,397 Operating support and revenues: Contributions, memberships, grants, and sponsorships Animal health services fees Bequests and trusts Royalties, licenses, and other Investment income designated for operations (note 3) Net assets released from restrictions (note 10) Total operating support and revenues Operating expenses (note 8): Program expenses: Animal health services Public education and communications Anticruelty programs Community Outreach Grants (note 9) Total program expenses Supporting expenses: Membership development and fund-raising Management and general Total supporting expenses Total operating expenses Change in net assets from operating activities Nonoperating activities: Investment return (less than) in excess of amounts designated for operations (note 3) Net (depreciation) appreciation on beneficial interest in trusts held by others (note 4) Contributions related to endowment (note 11) Pension-related charges other than net periodic pension cost (note 6) Change in net assets Net assets at beginning of year Net assets at end of year 35,542,646 9,069,156 35,542,646 9,069,156 44,611,802 44,611,802 175,190,199 175,190,199 9,312,186 3,324,791 12,636,977 (1,409,354) 382,807 (1,026,547) (267,247) 326,868 62,521 59,621 62,521 (3,029,274) 4,873,558 135,314,763 140,188,321 3,440,351 36,925,063 40,365,414 389,389 25,671,894 26,061,283 (3,029,274) 8,703,298 197,911,720 206,615,018 $ See accompanying notes to financial statements. THE AMERICAN SOCIETY FOR THE PREVENTION OF CRUELTY TO ANIMALS Statement of Functional Expenses Year ended December 31, 2014 Program expenses Animal health services Grants $ Compensation Employee benefits Supplies Telephone Postage and shipping Rent Repairs and maintenance Data processing Printing Auto expenses Travel, conferences, and seminars Insurance Utilities Veterinary and medical services Media buys, promotion, and related costs Professional services Grants Other Total expenses before depreciation and amortization Depreciation and amortization 19,744,282 6.988.505 635,443 388,007 57.183 726,791 362 288 346,838 12,856 206,931 562,004 283,195 274,457 3,064.214 140,790 931,309 Public education and communications 3,763,844 1,127,378 110,864 57,509 4,717,275 615,514 14,011 3,396,584 3,091,537 14 202,451 45.092 55,597 Anticruelty programs 7,979,892 2,275,124 506,887 185,640 182.192 1,414.887 105.075 365,017 89.877 234.314 2.072.432 336,003 135,324 1.428 520 691,342 3,494,944 Community outreach 11,379,476 3,549,345 1,161,990 267,117 25,973 339,876 614,340 533,125 3,586 32,266 1,315,312 108,799 265,754 297,486 67,823 1.198.253 585.949 165.038 5.190 11.607 1.293 87,013 2.201 109,352 866 5 65,199 7,399 8.012 Total program expenses 43,453,443 14,105,390 2,420,374 909,880 4.983,916 3,184,081 1,097,915 4,750,916 3,198,722 473,530 4,217,398 780,488 739,144 4,790.220 14,410,710 8,332.789 14,244,160 531,791 Membership development and fund-raising 4,627,314 1,406,603 149,402 46,496 4,202.130 697.855 15,808 5,783,735 2,633,990 3,610 246,307 67,029 62,981 Supporting expenses Management and general 3,682,112 1,026,990 67,807 181,105 79,423 558,868 76,963 525,456 41.755 816 107.190 81 526 94,767 Total supporting expenses 8,309,426 2,433,593 217,209 227,601 4,281,553 1,256,723 92.771 6,309,191 2,675,745 4,426 353,497 148,555 157,748 Total expenses 51,762,869 16,538.983 2.637,583 1,137,481 9.265,469 4.440.804 1.190.686 11,060,107 5,874,467 477.956 4,570,895 929,043 896,892 4,790,220 26,940,839 13,070.126 14,244,160 828,303 13,510,755 2,627,425 12,332,125 2,880,125 198,004 1.857.212 12,530,129 4,737,337 80,858 14.244.160 26.269 314.284 14,102 67.645 109,491 209.629 86,883 296,512 21,565,115 15,400,411 35,365,139 8.666,877 35.039.377 1.286.542 36,325,919 33,349,952 256,787 33,606,739 21,270,012 1,530,078 22,800,090 834,655 22,399.770 126,624,867 3,953,530 130,578,397 45,468 15,445,879 Total expenses 177,507 35,542.646 44,032,016 579,786 44,611.802 402,279 9.069,156 170,656,883 4,533,316 175.190.199 $ THE AMERICAN SOCIETY FOR THE PREVENTION OF CRUELTY TO ANIMALS Notes to Financial Statements December 31, 2014 and 2013 The following tables present the ASPCA's activities for the years ended December 31, 2014 and 2013 for assets classified in Level 3: Total $ Beginning balance at January 1, 2014 Acquisitions Dispositions Net appreciation Ending balance at December 31, 2014 Fund of funds 2,753,258 278,912 (680,831) 164,771 2,516,110 Private equity 5,857,541 1,885,431 (1,113,124) 7,630 8,610,799 2,164,343 (1,793,955) 172,401 9,153,588 $ 6,637,478 Private equity Total $ Beginning balance at January 1, 2013 Acquisitions Dispositions Net appreciation Ending balance at December 31, 2013 Fund of funds 2,267,507 532,464 (610,984) 564,271 2,753,258 5,132,619 562,501 (917,266) 1,079,687 5,857,541 7,400,126 1,094,965 (1,528,250) 1,643,958 8,610,799 $ Investments with a fair value of $10,019,347 and $8,551,417 and cash equivalents of $274,807 and $204,565 at December 31, 2014 and 2013, respectively, were held in investment accounts relating to charitable gift annuities, in compliance with the insurance laws of various states. The ASPCA maintains separate and distinct reserve funds adequate to meet the future payments of all outstanding charitable gift annuities administered by the ASPCA. Certain information regarding the liquidity and redemption features of the ASPCA's alternative investments (measured at NAV) is as follows: 2014 Fair value 2013 Fair value Unfunded commitments 2014 Redemption frequency Redemption notice period $ Equity long (a) Distressed debt (b) Global asset allocation (c) Funds of funds (d) Fund of funds - private equity (e) Fund of funds - capital appreciation (f) Private equity (9) Emerging markets (h) 8,252,116 6,607,544 8,419,334 5,941,534 2,516,110 9,743,644 6,646,321 6,123,585 5,804,266 2,753,258 Monthly Quarterly Weekly Annual None 30 days 90 days 5 days 60 days 1,061,604 N/A 90 days 6,603,192 6,637,478 5,982,816 7,515,280 5,857,541 6,198,167 6,533,415 Quarterly None Daily N/A 3-5 days S 50,960,124 50,642,062 7,595,019 THE AMERICAN SOCIETY FOR THE PREVENTION OF CRUELTY TO ANIMALS Statement of Activities Year ended December 31, 2014 Temporarily restricted Permanently restricted Unrestricted Total $ 8,560,115 128,267,214 14,585,922 14,297,431 4,431,672 136,827,329 14,585,922 26,710,253 4,431,672 12,412,822 5,272,000 5.272.000 17,648,146 (17,648,146) 184,502,385 3,324,791 187,827,176 36,325,919 33,606,739 22,399,770 22,800,090 15,445,879 130,578,397 ||||| 11111 36,325,919 33,606,739 22,399,770 22,800,090 15,445,879 130,578,397 Operating support and revenues: Contributions, memberships, grants, and sponsorships Animal health services fees Bequests and trusts Royalties, licenses, and other Investment income designated for operations (note 3) Net assets released from restrictions (note 10) Total operating support and revenues Operating expenses (note 8): Program expenses: Animal health services Public education and communications Anticruelty programs Community Outreach Grants (note 9) Total program expenses Supporting expenses: Membership development and fund-raising Management and general Total supporting expenses Total operating expenses Change in net assets from operating activities Nonoperating activities: Investment return (less than) in excess of amounts designated for operations (note 3) Net (depreciation) appreciation on beneficial interest in trusts held by others (note 4) Contributions related to endowment (note 11) Pension-related charges other than net periodic pension cost (note 6) Change in net assets Net assets at beginning of year Net assets at end of year 35,542,646 9,069,156 35,542,646 9,069,156 44,611,802 44,611,802 175,190,199 175,190,199 9,312,186 3,324,791 12,636,977 (1,409,354) 382,807 (1,026,547) (267,247) 326,868 62,521 59,621 62,521 (3,029,274) 4,873,558 135,314,763 140,188,321 3,440,351 36,925,063 40,365,414 389,389 25,671,894 26,061,283 (3,029,274) 8,703,298 197,911,720 206,615,018 $ See accompanying notes to financial statements. THE AMERICAN SOCIETY FOR THE PREVENTION OF CRUELTY TO ANIMALS Statement of Functional Expenses Year ended December 31, 2014 Program expenses Animal health services Grants $ Compensation Employee benefits Supplies Telephone Postage and shipping Rent Repairs and maintenance Data processing Printing Auto expenses Travel, conferences, and seminars Insurance Utilities Veterinary and medical services Media buys, promotion, and related costs Professional services Grants Other Total expenses before depreciation and amortization Depreciation and amortization 19,744,282 6.988.505 635,443 388,007 57.183 726,791 362 288 346,838 12,856 206,931 562,004 283,195 274,457 3,064.214 140,790 931,309 Public education and communications 3,763,844 1,127,378 110,864 57,509 4,717,275 615,514 14,011 3,396,584 3,091,537 14 202,451 45.092 55,597 Anticruelty programs 7,979,892 2,275,124 506,887 185,640 182.192 1,414.887 105.075 365,017 89.877 234.314 2.072.432 336,003 135,324 1.428 520 691,342 3,494,944 Community outreach 11,379,476 3,549,345 1,161,990 267,117 25,973 339,876 614,340 533,125 3,586 32,266 1,315,312 108,799 265,754 297,486 67,823 1.198.253 585.949 165.038 5.190 11.607 1.293 87,013 2.201 109,352 866 5 65,199 7,399 8.012 Total program expenses 43,453,443 14,105,390 2,420,374 909,880 4.983,916 3,184,081 1,097,915 4,750,916 3,198,722 473,530 4,217,398 780,488 739,144 4,790.220 14,410,710 8,332.789 14,244,160 531,791 Membership development and fund-raising 4,627,314 1,406,603 149,402 46,496 4,202.130 697.855 15,808 5,783,735 2,633,990 3,610 246,307 67,029 62,981 Supporting expenses Management and general 3,682,112 1,026,990 67,807 181,105 79,423 558,868 76,963 525,456 41.755 816 107.190 81 526 94,767 Total supporting expenses 8,309,426 2,433,593 217,209 227,601 4,281,553 1,256,723 92.771 6,309,191 2,675,745 4,426 353,497 148,555 157,748 Total expenses 51,762,869 16,538.983 2.637,583 1,137,481 9.265,469 4.440.804 1.190.686 11,060,107 5,874,467 477.956 4,570,895 929,043 896,892 4,790,220 26,940,839 13,070.126 14,244,160 828,303 13,510,755 2,627,425 12,332,125 2,880,125 198,004 1.857.212 12,530,129 4,737,337 80,858 14.244.160 26.269 314.284 14,102 67.645 109,491 209.629 86,883 296,512 21,565,115 15,400,411 35,365,139 8.666,877 35.039.377 1.286.542 36,325,919 33,349,952 256,787 33,606,739 21,270,012 1,530,078 22,800,090 834,655 22,399.770 126,624,867 3,953,530 130,578,397 45,468 15,445,879 Total expenses 177,507 35,542.646 44,032,016 579,786 44,611.802 402,279 9.069,156 170,656,883 4,533,316 175.190.199 $