National Nurses United

Audit + Index_FINAL 12/30/09 2:16 PM Page 17 CALIFORNIA NURSES ASSOCIATION NOTES TO FINANCIAL STATEMENTS (CONTINUED) CALIFORNIA NURSES ASSOCIATION NOTES TO FINANCIAL STATEMENTS (CONTINUED) Note 5 - Fixed Assets Note 4 - Investments Fixed assets at June 30, 2008 and June 30, 2007 consisted of the following: Investments are stated at fair value and are summarized as follows: 2008 2008 Corporate Bonds U.S. Treasury Obligations Common Stocks $ $ $ $ Cost 379,668 143,753 468,720 Fair Value 377,265 146,789 436,192 960,246 992,141 Estimated Useful Lives Unrealized Gain (Loss) $ (2,403) 3,036 (32,528) $ Office Furniture Computers and Software Communication Systems Building and Improvements Parking Lot Land (31,895) 2007 Corporate Bonds U.S. Treasury Obligations Common Stocks $ $ Cost 358,423 241,322 477,850 $ 1,077,595 $ 1,059,181 $ Total Investment Return $ (5,084) $ 1,044,137 1,029,609 739,549 6,115,328 438,588 593,935 $ 470,914 616,413 260,832 1,231,320 - $ $ Unrealized Gain (Loss) $ (18,070) (6,140) 5,796 9,961,146 $ 2,579,479 $ 7,381,667 573,223 413,196 478,717 4,884,008 438,588 593,935 2007 Estimated Useful Lives Net Book Value Accumulated Depreciation Cost (18,414) Year Ended June 30 2008 2007 70,090 $ 56,195 (75,174) 65,057 $ $ Total Fair Value 340,353 235,182 483,646 The following summarizes the investment return and its classification in the Statement of Activities. Interest and Dividends Net Realized and Unrealized Gains & (Losses) 5–7 5–7 5–7 39.5 - Net Book Value Accumulated Depreciation Cost Office Furniture Computers and Software Communication Systems Building and Improvements Parking Lot Land 5–7 5–7 5–7 39.5 - $ $ 292,856 446,610 139,573 1,076,902 - $ $ Total 856,206 840,689 560,000 6,053,754 438,588 593,935 563,350 394,079 420,427 4,976,852 438,588 593,935 9,343,172 $ 1,955,941 $ 7,387,231 Depreciation expenses were $623,538 and $497,569 for the years ending June 30, 2008 and 2007, respectively. 121,252 -11- -12- CALIFORNIA NURSES ASSOCIATION NOTES TO FINANCIAL STATEMENTS (CONTINUED) CALIFORNIA NURSES ASSOCIATION NOTES TO FINANCIAL STATEMENTS (CONTINUED) Note 6 - Assets Designated for Specific Programs Note 6 - Assets Designated for Specific Programs (Continued) In accordance with CNA's bylaws, constitution, or by direction of the Board a portion of dues paid by each member is designated for specific purposes. By direction of the Board up to $8.00 of each member's monthly dues for the months of January 2006 through December 2006 were to be allocated from the state's general fund to the CNA Initiative PAC Fund. Program The following is a summary of revenue and expenses and the balance of funds at year-end for each program. CNA is not required to segregate undesignated and designated net assets from each other except for the funds in the Candidate PAC, Initiative PAC and Voter Guide PAC programs that are shown as assets set aside for specific programs in the Statement of Financial Position. Delegate Balance 2006 $ Supportive Program June 30, 2008 Other Receipts Expenditures Dues Balance 2008 Delegate $ Supportive 568,918 2,392,515 $ 370,530 $ 580 - (933,166) 3,348,496 - 864,456 - (225) 864,231 Candidate PAC 257,732 701,683 - (754,467) 204,948 Initiative PAC 15,089 - - (14,530) 559 36 - Voter Guide PAC Federal PAC Total $ 3,234,290 - $ 3,825,816 8,771 $ 9,351 611,745 3,197,366 335,000 $ 5,737,987 - 3,137,344 36 $ $ $ 335,000 $ (200) $ Balance 2007 568,918 (900,700) 2,392,515 (601,263) 257,732 (4,533,900) 15,089 - 36 $ (6,036,063) $ 3,234,290 $ (1,772,426) $ (832,398) 1,889,147 MSNA Trust 341,895 1,647,003 247,250 Voter Guide PAC Total $ 1,076,645 Initiative PAC Balance 2007 227,223 1,646,212 Candidate PAC June 30, 2007 Other Receipts Expenditures Dues (4,944) 36 3,827 $ (3,479,758) $ 3,589,699 Note 7 - Margin Loan CNA's investment account is managed by an investment adviser and the underlying assets are held by a financial institution. CNA has an agreement with the financial institution allowing CNA to borrow and withdraw funds up to a percentage of the securities' current fair market value (purchasing power) using the underlying securities as collateral. The agreement also allows the investment advisor to purchase new securities by borrowing against the existing underlying securities. Payment of any balance of borrowed funds is due upon demand. The agreement also calls for CNA to remit funds, either directly or by selling the underlying securities, whenever the balance of funds borrowed exceeds the allowed percentage of their fair market value. Interest is paid on the average balance of borrowed funds on a monthly basis and rate varies depending on the total amount of funds outstanding. The agreement does not stipulate a termination date as long as investment securities are held by the financial institution. Note 8 - Mortgages & Loans Payable The Organization owns and occupies its four story Headquarters Building at 2000 Franklin Street, Oakland, and an adjacent parking lot known as 2002 Webster. The parking lot is for the sole use of CNA members, staff, and guests. -13- NOVEMBER | DECEMBER 2009 -14- W W W. C A L N U R S E S . O R G REGISTERED NURSE 17

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