FINANCIAL STATEMENTS
STATEMENTS OF FINANCIAL POSITION As of December 31,
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS To the Board of Trustees of Practising Law Institute Opinion We have audited the financial statements of the Practising Law Institute (the “Institute”), which comprise the statements of financial position as of December 31, 2024 and 2023, and the related statements of activities, functional expenses, and cash flows for the years then ended, and the related notes to the financial statements. In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Institute as of December 31, 2024 and 2023, and the results of its operations and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America. Basis for opinion We conducted our audits of the financial statements in accordance with auditing standards generally accepted in the United States of America (US GAAS). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Institute and to meet our other ethical responsibilities in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Responsibilities of management for the financial statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Institute’s ability to continue as a going concern for one year after the date the financial statements are available to be issued. Auditor’s responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with US GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with US GAAS, we: • Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Institute’s internal control. Accordingly, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. • Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Institute’s ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.
2024
2023
Assets Cash and cash equivalents............................................ $
19,464,875 $ 20,904,245
Accrued interest and dividends receivable ...................................... 4,213 Accounts receivable for programs, publications and memberships, net of allowance for credit losses of approximately $540,000 in 2024 and $446,000 in 2023.......... 2,190,439
67,597
2,375,857 Investments, at fair value...................................................... 127,074,771 119,038,752 Inventories.................................................................................... 279,750 265,420 Fixed assets, net..................................................................... 30,542,077 27,627,978 Goodwill. ...................................................................................... 381,200 476,500 Other intangible assets, net.......................................................... 140,000 140,000 Prepaid expenses and other assets.......................................... 6,616,416 5,779,283 Operating lease - right of use assets........................................ 21,290,403 25,626,756 Total assets.................................................................... $ 207,984,144 $ 202,302,388 Liabilities and Net Assets Liabilities Accounts payable and accrued expenses................. $ 10,164,930 $ 10,153,901 Deferred revenues................................................................ 38,734,202 37,769,934 Operating lease liability......................................................... 27,509,492 32,911,413 Term bank loan..................................................................... 7,500,000 8,500,000 Accrued postretirement benefits.......................................... 13,294,000 13,597,000 Total liabilities..................................................................... 97,202,624 102,932,248
Net Assets - without donor restrictions ............................. 110,781,520 99,370,140 Total liabilities and members equity......................... $ 207,984,144 $ 202,302,388
The accompanying notes are an integral part of these financial statements.
STATEMENTS OF ACTIVITIES For the years ended December 31,
2024
2023
Operating activities Revenues Programs, publications and memberships............. $ 87,179,542 $ 82,841,579 Expenses Programs, publications and memberships..................... 80,420,527 75,834,854 General and administrative............................................... 8,496,869 7,471,348 Total expenses......................................................... 88,917,396 83,306,202 Decrease in net assets from operating activities................................................. (1,737,854) (464,623) Non-operating activities Interests and dividends.................................................... 2,577,597 2,493,402 Realized and unrealized gains on investments, net.................. 9,729,010 18,010,517 Increase in net assets from non-operating activities................................................ 12,306,607 20,503,919
Increase in net assets before pension related adjustment other than service cost................................. 10,568,753
20,039,296
Pension related adjustment other than service cost............ 842,627
(979,829)
CHANGE IN NET ASSETS .................................... 11,411,380
19,059,467
Net assets, beginning of year.......................................... 99,370,140 80,310,673 Net assets, end of year................................................ $110,781,520 $ 99,370,140
The accompanying notes are an integral part of these financial statements.
New York, New York April 24, 2025
8
2024 Annual Report
Made with FlippingBook. PDF to flipbook with ease