2024-12-04T08:39:36-05:00 2024-01-31 520783935 SMITH ELLIOTT KEARNS & COMPANY LLC 19405 EMERALD SQUARE STE 1400 HAGERSTOWN MD 21742 990 2023-02-01 521176416 HEAD START OF WASHINGTON COUNTY INC HEAD 3017330088 325 WEST MEMORIAL BLVD HAGERSTOWN MD 21740 VICKI ROBINSON EXECUTIVE DIRECTOR 3017330088 2024-11-27 true true WILLIAM SOUDERS CPA P01297339 3017335020 2024-11-27 2023 2024-10-15 13:58:12Z VICKI ROBINSON 325 WEST MEMORIAL BOULEVARD HAGERSTOWN MD 21740 8063312 false X WWW.HEADSTARTWASHCO.ORG X 1980 MD DEDICATED TO MAKING A DIFFERENCE IN OUR COMMUNITY THROUGH COMPREHENSIVE CHILD AND FAMILY DEVELOPMENT SERVICES. OUR MISSION IS TO PROVIDE ALL CHILDREN WITH DIVERSE, NURTURING EXPERIENCES, A STRONG FOUNDATION FOR DEVELOPMENTAL GROWTH AND OPPORTUNITIES TO ACHIEVE SCHOOL READINESS. WE STRIVE TO UNDERSTAND AND EMPOWER FAMILIES TO TAKE AN ACTIVE ROLE IN THEIR CHILD'S DEVELOPMENT AND TO REACH THEIR FULL POTENTIAL. 10 10 159 254 0 7215473 7588125 335190 468913 5 6274 8487 0 7559155 8063312 0 0 5862932 6346906 0 0 1589612 1470579 7452544 7817485 106611 245827 4784107 5094562 2289000 2529722 2495107 2564840 X DEDICATED TO MAKING A DIFFERENCE IN OUR COMMUNITY THROUGH COMPREHENSIVE CHILD AND FAMILY DEVELOPMENT SERVICES. OUR MISSION IS TO PROVIDE ALL CHILDREN WITH DIVERSE, NURTURING EXPERIENCES, A STRONG FOUNDATION FOR DEVELOPMENTAL GROWTH AND OPPORTUNITIES TO ACHIEVE SCHOOL READINESS. WE STRIVE TO UNDERSTAND AND EMPOWER FAMILIES TO TAKE AN ACTIVE ROLE IN THEIR CHILD'S DEVELOPMENT AND TO REACH THEIR FULL POTENTIAL. false false 6620600 468913 HEAD START AND EARLY HEAD START PROGRAMS SERVE CHILDREN FROM BIRTH TO AGE 5. THESE PROGRAMS SPECIALIZE IN A COMPREHENSIVE FAMILY APPROACH TO EARLY CHILDHOOD EDUCATION WITH AN EMPHASIS ON SCHOOL READINESS. OUR PROGRAM SERVES AROUND 375 CHILDREN AND THEIR FAMILIES EACH YEAR. HEAD START IS A MULTI-GENERATIONAL PROGRAM, SERVING LOW INCOME OR OTHERWISE AT-RISK CHILDREN, PREGNANT WOMEN, AND FAMILIES FROM A DIVERSE VARIETY OF CULTURES AND BACKGROUNDS. HEAD START AGENCIES ARE MANDATED TO REDUCE THE IMPACT OF RISK FACTORS BY PROVIDING HEALTHY CHILD DEVELOPMENT SERVICES TO INCLUDE EDUCATION, FAMILY SUPPORTS, HEALTH, NUTRITION AND REFERRALS TO COMMUNITY SERVICES. STRENGTHENING FAMILIES AS THE PRIMARY NURTURERS OF THEIR CHILDREN IS A HALLMARK OBJECTIVE OF THE HEAD START PROGRAM. PERFORMANCE STANDARDS REQUIRE A HIGH STANDARD OF CARE AND OVERALL CULTURE OF CONTINUOUS QUALITY IMPROVEMENT. CLASSROOM TEACHERS VISIT FAMILIES IN THEIR HOMES TWICE PER SCHOOL YEAR. EVERY FAMILY IS ALSO ASSIGNED A FAMILY ADVOCATE TO HELP THEM IDENTIFY AND REACH GOALS RELATED TO PROVIDING A SAFE AND NURTURING HOME ENVIRONMENT. FAMILIES ARE LINKED TO ANY COMMUNITY RESOURCES THAT MAY BE NECESSARY TO MAKE THIS POSSIBLE. RESEARCH HAS SHOWN THAT CHILDREN MAKE SIGNIFICANT INCREASES IN THEIR SCHOOL READINESS SCORES WITH INCREASED TIME IN A STRUCTURED CLASSROOM SETTING. DURING THIS FISCAL YEAR, THE AGENCY APPLIED AND WAS APPROVED FOR A "CHANGE IN SCOPE" FROM THE OFFICE OF HEAD START. THIS APPROVAL ALLOWED US TO MEET OUR LONG-TIME GOAL OF PROVIDING FULL DAY SERVICES TO ALL OF OUR CLASSROOMS. TO CONTINUE TO RECEIVE OUR FUNDING, THE AGENCY IS REQUIRED TO RAISE A 25% MATCH TO ALL FEDERAL DOLLARS RECEIVED. AT OUR CURRENT FUNDING LEVEL, THE 25% EQUATES TO 1,733,404 THROUGH INDIVIDUAL, COMPANY AND/OR FOUNDATION DONATIONS. FOR THIS REPORTING YEAR A 100% WAIVER WAS GRANTED BY THE AWARDING AGENCY. AS OUR AGENCY BEGAN TO WELCOME BACK IN PERSON VOLUNTEERING FOLLOWING THE PANDEMIC, WE ALSO BEGAN TO LOOK AT NEW AND CREATIVE WAYS TO INCREASE OUR IN-KIND CONTRIBUTIONS AS NO AUTOMATIC WAIVER WILL BE GRANTED IN THE COMING YEAR. CONTRIBUTIONS OF ANY SIZE ARE ALWAYS WELCOME AND ALLOW US TO REACH OUR REQUIRED MATCH AND ENABLE US TO REQUEST ADDITIONAL FUNDS IN THE FUTURE WE HUMBLY ASK FOR YOUR HELP TO CONTINUE SERVING THE NEEDIEST CHILDREN AND FAMILIES IN OUR COMMUNITY. 329054 USDA CHILD CARE FOOD PROGRAM - PROVIDING BREAKFAST, LUNCH, AND SNACKS FOR CHILDREN AGES BIRTH TO AGE 5. DURING THIS PROGRAM YEAR 120,939 MEALS WERE SERVED TO ENROLLED CHILDREN. THE RETURN OF FULLY IN-PERSON SERVICES AND FULL STAFFING LED TO AN INCREASE IN MEALS SERVED COMPARED TO THE PREVIOUS FISCAL YEAR. NO ROLLING CLOSURES WERE NEEDED TO COMPENSATE FOR STAFF SHORTAGES AND DECREASED ILLNESS RESTRICTIONS DUE TO COVID ALLOWED FOR INCREASED ATTENDANCE OF CHILDREN. 146670 MARYLAND HEAD START AND EARLY HEAD START SUPPLEMENTAL GRANT TO ENHANCE THE SCHOOL READINESS OF HS AND EHS CHILDREN BY PROVIDING EXPANDED AND IMPROVED SERVICES TO ELIGIBLE CHILDREN BIRTH TO AGE 5 THROUGH THE EXPANSION OF HOURS AND DAYS OF SERVICES FOR CHILDREN TO ADDRESS THE FULL DAY, YEAR-ROUND NEEDS OF PARENTS WHO ARE WORKING, ATTENDING AN EDUCATIONAL PROGRAM OR ATTENDING JOB TRAINING. 58941 MARYLAND STATE DEPARTMENT OF EDUCATION PRE-K EXPANSION GRANT TO EXPAND FREE ACCESS TO PUBLIC PREKINDERGARTEN FOR THREE AND FOUR-YEAR-OLDS FROM FAMILIES WITH HOUSEHOLD INCOMES UP TO 300 PERCENT OF FEDERAL POVERTY GUIDELINES. GAMING COMMISSION GRANT TO PARTNER WITH ACHIEVING TRUE SELF TO PROVIDE SOCIAL GROUPS TO OUR MOST VULNERABLE CHILDREN AND PRODUCE LEARNING VIDEOS FOR FAMILIES AND COMMUNITY PARTNERS TO VIEW. MARYLAND STATE DEPARTMENT OF EDUCATION CHILDCARE PROVIDER AND EMPLOYEE RETENTION BONUS PROGRAM PROVIDED A RETENTION BONUS TO EMPLOYEES WHO MET SPECIFIC HIRE DATE AND CREDENTIALING CRITERIA. 58941 7155265 true true false false false false false false false false true false false false false true true false false false false false false false false false false false false false false false false false false false false false false false false false false false false false false true 14 0 true 159 true false false false false false false false false X 10 10 false false false false false false false true true false false true true true true true true true true false MD X X RHONDA SMITH 3017330088 325 WEST MEMORIAL BOULEVARD HAGERSTOWN MD 21740 VICKI ROBINSON EXECUTIVE DI 40.00 X 109775 0 14963 RHONDA SMITH DIRECTOR OF 40.00 X 83104 0 21814 BROOKE KERBS PRESIDENT 2.00 X X 0 0 0 KENT MATSUMOTO VICE PRESIDE 1.00 X X 0 0 0 EMILY RADAKER DIRECTOR 2.00 X 0 0 0 NICOLE TWIGG DIRECTOR 1.00 X 0 0 0 STACY CAMPBELL DIRECTOR 2.00 X 0 0 0 TERRI LANCASTER DIRECTOR 1.00 X 0 0 0 CLAUDIA MARTIN DIRECTOR 1.00 X 0 0 0 DIANE VERDIER DIRECTOR 1.00 X 0 0 0 CARROL LOURIE DIRECTOR 1.00 X 0 0 0 TONNIE GEORGE DIRECTOR 1.00 X 0 0 0 192879 36777 1 false false false 7585843 2282 7588125 MD CHILDCARE SCHOLARSHIP PROG 624410 455413 455413 MARYLAND EXCELS 624410 13500 13500 468913 38 38 6236 6236 6236 6236 8063312 468913 6274 232574 232574 4505448 4273193 232255 494107 462834 31273 644306 613628 30678 470471 433617 36854 26525 26525 57254 56644 610 4219 1375 2844 213452 188510 24942 245799 223860 21939 166105 165495 610 58544 45080 13464 185754 184377 1377 73173 69802 3371 FOOD SERVICE SUPPLIES 264398 264398 CHILD/FAMILY SVC SUPPLIES 158658 158658 PARENT SERVICES 9665 9665 MEMBERSHIPS 6579 4129 2450 454 454 7817485 7155265 662220 0 290068 267575 958052 1275521 26956 49511 558 46929 5706469 2251443 3508473 3455026 4784107 5094562 944052 1290669 29070 26858 1315878 1212195 2289000 2529722 X 2495107 2564840 2495107 2564840 4784107 5094562 X 245827 -176094 X X false true X true true true X 6076667 6467890 7078208 7215473 7588125 34426363 750340 750340 742932 735530 558790 3537932 6827007 7218230 7821140 7951003 8146915 37964295 37964295 30 5 38 73 38955 8487 47442 38011810 1408530 0.99870 0.99870 X PART II, LINE 10 OTHER INCOME 47,442 RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 446475 446475 3881450 1137928 2743522 1378544 1113515 265029 3455026 X 9103555 1040243 1040243 8063312 8063312 8980370 1040243 362801 1403044 7577326 240159 240159 7817485 SCHEDULE D, PAGE 3, PART X THE ORGANIZATION FOLLOWS GENERALLY ACCEPTED ACCOUNTING PRINCIPLES, WHICH PROVIDES GUIDANCE ON ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES RECOGNIZED IN AN ORGANIZATIONS FINANCIAL STATEMENTS. THE ORGANIZATIONS POLICY IS TO CHARGE PENALTIES AND INTEREST TO INCOME TAX EXPENSE AS INCURRED. THE ORGANIZATIONS FEDERAL AND STATE INCOME TAX RETURNS ARE SUBJECT TO EXAMINATION BY THE INTERNAL REVENUE SERVICE AND STATE TAX AUTHORITIES, GENERALLY FOR A PERIOD OF THREE YEARS AFTER THE RETURNS ARE FILED. SCHEDULE D, PAGE 4, PART XII, LINE 2D FIXED ASSET PURCHASES CAPITALIZED 130,925 CURRENT YEAR ENCUMBERED EXPENSES 231,876 SCHEDULE D, PAGE 4, PART XII, LINE 4B DEPRECIATION EXPENSE 184,377 PRIOR YEAR ENCUMBERED EXPENSES 55,782 FORM 990 - ORGANIZATION'S MISSION DEDICATED TO MAKING A DIFFERENCE IN OUR COMMUNITY THROUGH COMPREHENSIVE CHILD AND FAMILY DEVELOPMENT SERVICES. OUR MISSION IS TO PROVIDE ALL CHILDREN WITH DIVERSE, NURTURING EXPERIENCES, A STRONG FOUNDATION FOR DEVELOPMENTAL GROWTH AND OPPORTUNITIES TO ACHIEVE SCHOOL READINESS. WE STRIVE TO UNDERSTAND AND EMPOWER FAMILIES TO TAKE AN ACTIVE ROLE IN THEIR CHILD'S DEVELOPMENT AND TO REACH THEIR FULL POTENTIAL. FORM 990 IN-KIND RENT - 558,790 IN-KIND MATERIALS - 36,230 IN-KIND SERVICES - 445,226 FORM 990, PAGE 1, PART I, LINE 6 5,181 VOLUNTEER HOURS VALUED AT 152,262 WERE INCLUDED WITH IN-KIND CONTRIBUTIONS AND EXPENSES REPORTED ON THE FINANCIAL STATEMENT FOR THE CURRENT FISCAL YEAR. VOLUNTEER SERVICES ARE VALUED AT THE AGENCY PAY SCALE FOR LIKE SKILLS. FORM 990, PAGE 2, PART III, LINE 4A HEAD START AND EARLY HEAD START PROGRAMS SERVE CHILDREN FROM BIRTH TO AGE 5. THESE PROGRAMS SPECIALIZE IN A COMPREHENSIVE FAMILY APPROACH TO EARLY CHILDHOOD EDUCATION WITH AN EMPHASIS ON SCHOOL READINESS. OUR PROGRAM SERVES AROUND 375 CHILDREN AND THEIR FAMILIES EACH YEAR. HEAD START IS A MULTI-GENERATIONAL PROGRAM, SERVING LOW INCOME OR OTHERWISE AT-RISK CHILDREN, PREGNANT WOMEN, AND FAMILIES FROM A DIVERSE VARIETY OF CULTURES AND BACKGROUNDS. HEAD START AGENCIES ARE MANDATED TO REDUCE THE IMPACT OF RISK FACTORS BY PROVIDING HEALTHY CHILD DEVELOPMENT SERVICES TO INCLUDE EDUCATION, FAMILY SUPPORTS, HEALTH, NUTRITION AND REFERRALS TO COMMUNITY SERVICES. STRENGTHENING FAMILIES AS THE PRIMARY NURTURERS OF THEIR CHILDREN IS A HALLMARK OBJECTIVE OF THE HEAD START PROGRAM. PERFORMANCE STANDARDS REQUIRE A HIGH STANDARD OF CARE AND OVERALL CULTURE OF CONTINUOUS QUALITY IMPROVEMENT. CLASSROOM TEACHERS VISIT FAMILIES IN THEIR HOMES TWICE PER SCHOOL YEAR. EVERY FAMILY IS ALSO ASSIGNED A FAMILY ADVOCATE TO HELP THEM IDENTIFY AND REACH GOALS RELATED TO PROVIDING A SAFE AND NURTURING HOME ENVIRONMENT. FAMILIES ARE LINKED TO ANY COMMUNITY RESOURCES THAT MAY BE NECESSARY TO MAKE THIS POSSIBLE. RESEARCH HAS SHOWN THAT CHILDREN MAKE SIGNIFICANT INCREASES IN THEIR SCHOOL READINESS SCORES WITH INCREASED TIME IN A STRUCTURED CLASSROOM SETTING. DURING THIS FISCAL YEAR, THE AGENCY APPLIED AND WAS APPROVED FOR A "CHANGE IN SCOPE" FROM THE OFFICE OF HEAD START. THIS APPROVAL ALLOWED US TO MEET OUR LONG-TIME GOAL OF PROVIDING FULL DAY SERVICES TO ALL OF OUR CLASSROOMS. TO CONTINUE TO RECEIVE OUR FUNDING, THE AGENCY IS REQUIRED TO RAISE A 25% MATCH TO ALL FEDERAL DOLLARS RECEIVED. AT OUR CURRENT FUNDING LEVEL, THE 25% EQUATES TO 1,733,404 THROUGH INDIVIDUAL, COMPANY AND/OR FOUNDATION DONATIONS. FOR THIS REPORTING YEAR A 100% WAIVER WAS GRANTED BY THE AWARDING AGENCY. AS OUR AGENCY BEGAN TO WELCOME BACK IN PERSON VOLUNTEERING FOLLOWING THE PANDEMIC, WE ALSO BEGAN TO LOOK AT NEW AND CREATIVE WAYS TO INCREASE OUR IN-KIND CONTRIBUTIONS AS NO AUTOMATIC WAIVER WILL BE GRANTED IN THE COMING YEAR. CONTRIBUTIONS OF ANY SIZE ARE ALWAYS WELCOME AND ALLOW US TO REACH OUR REQUIRED MATCH AND ENABLE US TO REQUEST ADDITIONAL FUNDS IN THE FUTURE WE HUMBLY ASK FOR YOUR HELP TO CONTINUE SERVING THE NEEDIEST CHILDREN AND FAMILIES IN OUR COMMUNITY. FORM 990, PAGE 2, PART III, LINE 4D MARYLAND STATE DEPARTMENT OF EDUCATION PRE-K EXPANSION GRANT TO EXPAND FREE ACCESS TO PUBLIC PREKINDERGARTEN FOR THREE AND FOUR-YEAR-OLDS FROM FAMILIES WITH HOUSEHOLD INCOMES UP TO 300 PERCENT OF FEDERAL POVERTY GUIDELINES. GAMING COMMISSION GRANT TO PARTNER WITH ACHIEVING TRUE SELF TO PROVIDE SOCIAL GROUPS TO OUR MOST VULNERABLE CHILDREN AND PRODUCE LEARNING VIDEOS FOR FAMILIES AND COMMUNITY PARTNERS TO VIEW. MARYLAND STATE DEPARTMENT OF EDUCATION CHILDCARE PROVIDER AND EMPLOYEE RETENTION BONUS PROGRAM PROVIDED A RETENTION BONUS TO EMPLOYEES WHO MET SPECIFIC HIRE DATE AND CREDENTIALING CRITERIA. FORM 990, PAGE 6, PART VI, LINE 11B UPON RECEIPT OF A DRAFT FORM 990 FROM THE INDEPENDENT AUDITOR, THE EXECUTIVE DIRECTOR, THE DIRECTOR OF FINANCE, AND THE FINANCE COMMITTEE PERFORM A DETAILED REVIEW OF THE DRAFT. THE ENTIRE REPORT IS READ FOR TYPOGRAPHICAL ERRORS AND ALL FINANCIAL DATA IS TRACED BACK AND CONFIRMED TO THE ACCOUNTING RECORDS AND/OR INTERNAL FINANCIAL STATEMENTS OF HSWC, INC. ANY QUESTIONS OR ERRORS NOTED AS PART OF THIS REVIEW SHALL BE COMMUNICATED TO THE INDEPENDENT AUDITOR IN A TIMELY MANNER AND RESOLVED TO THE SATISFACTION OF THE EXECUTIVE DIRECTOR, THE DIRECTOR OF FINANCE, AND THE FINANCE COMMITTEE. THE BOARD OF DIRECTORS WILL BE PRESENTED WITH THE DRAFT FORM 990 PRIOR TO IT BEING FINALIZED AND SUBMITTED. FORM 990, PAGE 6, PART VI, LINE 12C HSWC, INC. REQUIRES THAT ALL MEMBERS OF THE BOARD OF DIRECTORS, THE EXECUTIVE DIRECTOR, MEMBERS OF MANAGEMENT, AND EMPLOYEES WITH PURCHASING AND/OR HIRING RESPONSIBILITIES OR AUTHORITY SHALL INFORM IN WRITING, THE EXECUTIVE DIRECTOR AND THE PRESIDENT OF THE BOARD OF DIRECTORS, OF ALL REPORTABLE CONFLICTS. MONITORING OCCURS ON AN ON-GOING BASIS THROUGH THE REVIEW AND APPROVAL PROCESS AND DURING THE ANNUAL HEAD START SELF ASSESSMENT. FORM 990, PAGE 6, PART VI, LINE 15A IN NOVEMBER 2022, THE ORGANIZATION CONTRACTED WITH AN INDEPENDENT CONSULTANT TO PROVIDE UPDATED SALARY INFORMATION AND ANALYSIS FOR ALL JOB DESCRIPTIONS USING A LEADING COMPENSATION SOFTWARE AND DATA COMPANY WHICH WAS DEVELOPED TO HELP PEOPLE AND EMPLOYERS OBTAIN ACCURATE, REAL-TIME INFORMATION ON THE JOB MARKET COMPENSATION. FORM 990, PAGE 6, PART VI, LINE 15B SAME DESCRIPTION AS FOR LINE 15A FORM 990, PAGE 6, PART VI, LINE 19 HSWC, INC. MAKES AVAILABLE FOR PUBLIC INSPECTION AGENCY GOVERNING DOCUMENTS, THE CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENT TO ALL MEMBERS OF THE GENERAL PUBLIC. ANYONE APPEARING IN PERSON AT THE OFFICE OF HSWC, INC. DURING NORMAL WORKING HOURS MAKING A REQUEST TO INSPECT THE FORMS ARE GRANTED ACCESS TO A FILE COPY OF THE FORMS. THE DIRECTOR OF FINANCE IS RESPONSIBLE FOR MAINTAINING THESE COPIES AND FOR MAKING THEM AVAILABLE TO ALL REQUESTERS. ALL WRITTEN REQUESTS FOR COPIES RECEIVED BY HSWC, INC. REQUIRE PREPAYMENT OF ALL COPYING AND SHIPPING CHARGES AND WILL BE SHIPPED TO REQUESTERS WITHIN 30 DAYS. FORM 990, PART XI, LINE 9 PY ENCUMBERED EXPENSES INCLUDED ON CY 990 55,782 CY ENCUMBERED EXPENSES NOT INCLUDED ON 990 -231,876 TOTAL -176,094 FORM 990, PART XII FOR FINANCIAL STATEMENT REPORTING, THE ORGANIZATION'S POLICY IS TO EXPENSE THE COST OF EQUIPMENT AND BUILDING IMPROVEMENTS IN THE YEAR OF ACQUISITION, AND LAND AND BUILDINGS THAT ARE FINANCED ARE REPORTED AT COST ON THE BALANCE SHEET WITH NO ACCUMULATED DEPRECIATION REPORTED. THE ORGANIZATION ALSO INCLUDES EXPENSES THAT ARE ENCUMBERED BUT NOT YET RECEIVED AT YEAR END IN CURRENT YEAR EXPENSES. THE 990 IS REPORTED IN ACCORDANCE TO GAAP FINANCIAL STATEMENT REPORTING TO BE IN COMPLIANCE WITH IRS REGULATIONS. CURRENT YEAR FIXED ASSET PURCHASES IN THE AMOUNT OF 130,929 INCLUDED AS OPERATING EXPENSES ON THE FINANCIAL STATEMENTS WERE CAPITALIZED FOR 990 PURPOSES AND NOT INCLUDED AS FUNCTIONAL EXPENSES ON PART IX OF THE FORM 990, RATHER, THESE EXPENDITURES ARE INCLUDED IN FIXED ASSETS ON PART X COLUMN B LINES 10A AND 10B. DEPRECIATION EXPENSE IN THE AMOUNT OF 184,376 NOT REPORTED ON THE FINANCIAL STATEMENTS WAS INCLUDED AS A FUNCTIONAL EXPENSE ON PART IX. CURRENT YEAR ENCUMBERED EXPENSES IN THE AMOUNT OF 231,876 ARE INCLUDED IN OPERATING EXPENSES ON THE FINANCIAL STATEMENTS FOR THE CURRENT YEAR, BUT NOT INCLUDED ON PART IX, STATEMENT OF FUNCTIONAL EXPENSES; RATHER THIS IS REPORTED AS "OTHER CHANGES IN NET ASSETS" ON PART XI, LINE 9. PRIOR YEAR ENCUMBERED EXPENSES IN THE AMOUNT OF 55,782 ARE NOT INCLUDED IN OPERATING EXPENSES ON THE FINANCIAL STATEMENTS FOR CURRENT YEAR, BUT ARE INCLUDED ON PART IX, STATEMENT OF FUNCTIONAL EXPENSES; THIS IS REPORTED AS "OTHER CHANGES IN NET ASSETS" ON PART XI, LINE 9. SEE SCHEDULE D, PART XI FOR THE RECONCILIATION OF EXPENSES PER AUDITED FINANCIAL STATEMENTS WITH EXPENSES PER RETURN.