Bet Tzedek

“The clients trust accounts are a part of the organization's normal operations. The accounts includes funds that are held in a trust on behalf of clients for the purposes of rendering legal services. Custodial account liability also includes funds held for other agencies, which represents funds received and held by the organization that are payable to third-party agencies. On april 1, 2013, the organization received a settlement under the supervision from the california department of justice, office of the attorney general ("oag") in the amount of $1,750,000 as lead agency acting on behalf of the southern california consumer justice coalition ("the coalition"). The purpose of this fund is to design and develop innovative, scalable, and sustainable approaches for assisting california families impacted by the foreclosure process. $1,200,000 was granted on behalf of various subrecipients who are members of the coalition and $550,000 was granted directly to the organization. As of august 31, 2014, the organization earned revenue of $265,457 resulting in $204,831 of deferred revenue with respect to this settlement. The amount of $387,500 is due to other members of the coalition and will be remitted upon receipt of supporting documentation for milestones achieved and is included in "funds held for other agencies" on the statement of financial position.”

“The organization has adopted investment and spending policies for endowment assets that attempt to provide a predictable stream of funding to programs supported by its endowment while seeking to maintain the purchasing power of the endowment assets. Endowment assets include those assets of donor-restricted funds that the organization must hold in perpetuity or for a donor-specified period(s) as well as board-designated funds. Under this policy, as approved by the board of trustees, the endowment assets are invested in a manner that is intended to produce total returns (net of inflation) in excess of the endowment spend-out rate, thus allowing for real growth of endowment assets while assuming a moderate level of investment risk.”

“In accordance with financial accounting standards board ("fasb") accounting standards codification ("asc") topic no. 740, "uncertainty in income taxes" ("asc 740") (formerly fasb interpretation no. ("fin") 48, "accounting for uncertainty in income taxes - an interpretation of fasb statement 109"), the organization recognizes the impact of tax positions in the financial statements if that position is more likely than not to be sustained on audit, based on the technical merits of the position. To date, the organization has not recorded any uncertain tax positions. During the year ended august 31, 2014, the organization performed an evaluation of uncertain tax positions and did not note any matters that would require recognition in the financial statements or which may have an effect on its tax-exempt status. The organization's income tax returns remain subject to examination for all tax years ended on or after august 31, 2010 with regards to all tax positions and the results reported.”