Independent Auditor’s Report Board of Directors standards require that we plan and Greater Chicago Food Depository perform the audit to obtain reasonable Chicago, Illinois assurance about whether the financial statements are free of material misstate- ment. An audit includes examining, on We have audited the accompanying a test basis, evidence supporting the statements of financial position of amounts and disclosures in the financial Greater Chicago Food Depository as of statements. An audit also includes June 30, 2009 and 2008, and the related assessing the accounting principles statements of activities, functional used and significant estimates made by expenses and cash flows for the years management, as well as evaluating the then ended. These financial statements overall financial statement presentation. are the responsibility of Greater Chicago We believe that our audits provide a Food Depository’s management. Our reasonable basis for our opinion. responsibility is to express an opinion on these financial statements based on In our opinion, the financial statements our audits. referred to above present fairly, in all material respects, the financial position We conducted our audits in accordance of Greater Chicago Food Depository as of with auditing standards generally June 30, 2009 and 2008, and the results accepted in the United States of America of its operations and its cash flows for and the standards applicable to financial the years then ended in conformity with audits contained in Government Auditing accounting principles generally accepted Standards, issued by the Comptroller in the United States of America. General of the United States. Those September 30, 2009 26 GREatER CHICAGO FOOD DEPOSITORY 2008-2009 ANNUAL REPORT 27 STATEMENTS OF FINANCIAL POSITION STATEMENTS OF Cash FLOWS June 30, 2009 and 2008 Years Ended June 30, 2009 and 2008 ASSETS 2009 2008 CASH FLOWS FROM OPErating ACTIVITIES 2009 2008 Current Assets Change in net assets $««««««««(1,778,247) $««««««««685,682 Cash and cash equivalents $««««««««««7,816,201 $««««««««««8,389,256 Adjustments to reconcile change in net assets to net cash provided by operating activities Accounts receivable 456,919 539,443 Credits to agency accounts receivable balances 158,005 162,744 Pledges receivable Decrease in allowance for uncollectible pledges and discount to net present value (754) (29,671) Capital campaign 141,858 396,030 Depreciation 1,253,836 1,358,346 Other pledges receivable 96,250 274,834 Loss on disposal of fixed assets 4,306 7,883 Inventory Decrease in inventory - Contributed food 356,557 429,101 Contributed food 1,911,952 2,268,509 Donated assets (105,514) — Purchased food programs 1,985,828 1,502,656 Donated investments (135,342) (487,417) Other current assets 326,098 344,387 Investment loss net 783,304 2,080,530 (Increase) decrease in Total Current Assets 12,735,106 13,715,115 Accounts receivable 82,524 23,598 Capital campaign pledges 354,900 814,744 Noncurrent Assets Other pledges 118,584 19,916 Investments - Certificates of deposit 3,429,699 — Inventory - Purchased (483,172) (708,668) Investments - Securities 16,111,391 19,291,938 Other current assets 18,289 30,297 Pledges receivable 154,337 194,310 Increase (decrease) in Land, building and equipment, net of accumulated depreciation 24,323,423 25,072,642 Accounts payable 973,584 (54,113) Accrued expenses 55,425 24,898 44,558,890 Total Noncurrent Assets 44,018,850 Deferred revenue and other (928,817) (599,280) TotaL ASSETS $««««««««56,753,956 $««««««««58,274,005 Net Cash Provided by Operating Activities 727,468 3,758,590 LIABILITIES AND NET ASSETS CASH FLOWS FROM INVESTING ACTIVITIES Liabilities Proceeds from disposal of fixed assets 16,300 1,500 Accounts payable 1,441,968 468,383 Proceeds from sales of investments 5,508,210 2,629,417 Accrued expenses 537,946 482,521 Purchase of investments - Securities (2,975,624) (2,966,241) Deferred revenue 1,577,532 2,348,344 Purchase of investments - Certificates of deposit (3,429,699) — Purchase of fixed assets (419,710) (216,734) Total Liabilities 3,557,446 3,299,248 Net Cash Used in Investing Activities (1,300,523) (552,058) Net Assets Unrestricted Net (Decrease) Increase in Cash and Cash Equivalents (573,055) 3,206,532 Operating 34,470,094 32,536,136 Cash and Cash Equivalents, Beginning of Year 8,389,256 5,182,724 16,111,391 19,291,938 Founders’ Fund Endowment $«««««««««7,816,201 $««««««««8,389,256 Total Food Bank 50,581,485 51,828,074 CASH AND CASH EquivaLENTS, END OF YEAR Contributed Food 1,911,952 2,268,509 THE accOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. Total Unrestricted 52,493,437 54,096,583 Temporarily Restricted 703,073 878,174 Total Net Assets 53,196,510 54,974,757 TotaL LIABILITIES AND NET ASSETS $««««««««56,753,956 $««««««««58,274,005 THE accOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 28 GREatER CHICAGO FOOD DEPOSITORY 2008-2009 A nnua L R E port 29 STATEMENT OF ACTIVITIES STATEMENT OF ACTIVITIES Year Ended June 30, 2009 Year Ended June 30, 2008 Unrestricted Unrestricted Contributed Temporarily Contributed Temporarily PUBLIC SUPPORT AND REVENUE Food Bank Food TotaL Restricted TotaL PUBLIC SUPPORT AND REVENUE Food Bank Food TotaL Restricted TotaL Public support Public support Contributions and grants $« 16,987,774 $««««««««««««««— $« 16,987,774 $« ««2,126,041 $« 19,113,815 Contributions and grants $«15,292,946 $«««««««««««««««— $« 15,292,946 $« ««1,808,787 $« 17,101,733 Contributed food received — 47,245,602 47,245,602 — 47,245,602 Contributed food received — 37,614,231 37,614,231 — 37,614,231 Satisfaction of program restrictions 1,948,653 — 1,948,653 (1,948,653) — Satisfaction of program restrictions 1,862,453 — 1,862,453 (1,862,453) — Revenue Revenue Fees and grants from Fees and grants from government agencies 4,921,105 — 4,921,105 — 4,921,105 government agencies 4,723,992 — 4,723,992 — 4,723,992 Handling fee paid by agencies 723,240 — 723,240 — 723,240 Handling fee paid by agencies 739,461 — 739,461 — 739,461 Purchased food by agencies 2,189,768 — 2,189,768 — 2,189,768 Purchased food by agencies 1,513,760 — 1,513,760 — 1,513,760 Investment loss (3,110,635) — (3,110,635) — (3,110,635) Investment loss (1,172,534) — (1,172,534) — (1,172,534) Other income 119,791 — 119,791 — 119,791 Other income 222,924 — 222,924 — 222,924 Total Public Support Total Public Support and Revenue 23,779,696 47,245,602 71,025,298 177,388 71,202,686 and Revenue 23,183,002 37,614,231 60,797,233 (53,666) 60,743,567 OPErating EXPENSES OPErating EXPENSES Food bank operations 20,294,503 — 20,294,503 — 20,294,503 Food bank operations 17,592,238 — 17,592,238 — 17,592,238 Contributed food distributed — 47,602,159 47,602,159 — 47,602,159 Contributed food distributed — 38,043,332 38,043,332 — 38,043,332 Management and general 2,602,805 — 2,602,805 — 2,602,805 Management and general 2,539,389 — 2,539,389 — 2,539,389 Fundraising 2,478,477 — 2,478,477 — 2,478,477 Fundraising 2,023,547 — 2,023,547 — 2,023,547 Total Operating Expenses 25,375,785 47,602,159 72,977,944 — 72,977,944 Total Operating Expenses 22,155,174 38,043,332 60,198,506 — 60,198,506 (Decrease) Increase in Net Increase (Decrease) in Net Assets from Operations (1,596,089) (356,557) (1,952,646) 177,388 (1,775,258) Assets from Operations 1,027,828 (429,101) 598,727 (53,666) 545,061 NEW FACILITY CapitaL Campaign NEW FACILITY CapitaL Campaign Capital campaign contributions — — — 2,011 2,011 Capital campaign contributions — — — 141,671 141,671 Change in allowance for uncollectible — — — (5,000) (5,000) Change in allowance for uncollectible — — — (1,050) (1,050) Satisfaction of new facility — — — — — Satisfaction of new facility contribution restrictions 349,500 — 349,500 (349,500) — contribution restrictions 925,694 — 925,694 (925,694) — Total New Facility Total New Facility Capital Campaign 349,500 — 349,500 (352,489) (2,989) Capital Campaign 925,694 — 925,694 (785,073) 140,621 Decrease in Net Assets (1,246,589) (356,557) (1,603,146) (175,101) (1,778,247) Increase (Decrease) in Net Assets 1,953,522 (429,101) 1,524,421 (838,739) 685,682 Net Assets, Beginning of Year 51,828,074 2,268,509 54,096,583 878,174 54,974,757 Net Assets, Beginning of Year 49,874,552 2,697,610 52,572,162 1,716,913 54,289,075 NET ASSETS, END OF YEAR $« 50,581,485 $« ««1,911,952 $« 52,493,437 $« «««««703,073 $« 53,196,510 NET ASSETS, END OF YEAR $« 51,828,074 $« ««2,268,509 $« 54,096,583 $« «««««878,174 $« 54,974,757 THE accOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. THE accOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 30 GREatER CHICAGO FOOD DEPOSITORY 2008-2009 A nnua L R E port 31 STATEMENT OF FUNCTIONAL EXPENSES STATEMENT OF FUNCTIONAL EXPENSES Year Ended June 30, 2009 Year Ended June 30, 2008 Food Bank Management Food Bank Management Programs and General Fundraising TotaL Programs and General Fundraising TotaL Salaries $« ««4,629,966 $« ««««« 868,281 $« «««««619,395 $« «« 6,117,642 Salaries $« ««4,275,887 $« «««««881,205 $« «««««539,359 $« ««5,696,451 Employee fringe benefits 1,194,430 149,945 123,734 1,468,109 Employee fringe benefits 1,100,362 158,927 105,492 1,364,781 Total Salaries and Fringe Benefits 5,824,396 1,018,226 743,129 7,585,751 Total Salaries and Fringe Benefits 5,376,249 1,040,132 644,851 7,061,232 Cost of food sold 9,308,673 — — 9,308,673 Cost of food sold 7,787,256 — — 7,787,256 Occupancy and utility costs 485,587 20,446 5,111 511,144 Occupancy and utility costs 489,714 20,620 5,155 515,489 Trucking, freight and storage 516,363 — 372 516,735