Financial Statements

The report accompanying these financial statements was issued by BDO USA, LLP, a Delaware limited liability partnership and the U.S. member of BDO International Limited, a UK company limited by guarantee.

Girl Scout Council of the Nation’s Capital Financial Statements Years Ended September 30, 2014 and 2013

Girl Scout Council of the Nation’s Capital

Financial Statements

Years Ended September 30, 2014 and 2013


Contents

2

Independent Auditor’s Report 3 Financial Statements

Statements of Financial Position 4 Statements of Activities 5 Statements of Changes in Net Assets 6 Statements of Functional Expenses 7-8 Statements of Cash Flows 9 Notes to Financial Statements 10-25

September 30, 2014 2013

Assets

Cash and cash equivalents 32,529$ 283,725$

Accounts receivable, net 286,840 337,045

Contributions receivable, net 642,838 481,606

Inventory 445,284 492,160

Prepaid expenses and deposits 275,450 206,006

Investments 7,254,612 6,633,586

Beneficial interest in perpetual trusts 98,095 95,535

Land, buildings and equipment, net 9,777,360 9,856,871

Total assets 18,813,008$ 18,386,534$

Liabilities and Net Assets

Liabilities

Accounts payable and accrued expenses 507,975$ 348,787$

Accrued annual leave 430,956 440,135

Deferred revenue 56,911 59,387

Deferred rent 642,211 682,362

Note payable 75,000 -

Line-of-credit 850,000 600,000

Total liabilities 2,563,053 2,130,671

Commitments and contingencies

Net assets

Unrestricted

Board designated

Fund for cash flow 713,105 1,376,896

Board reserve 6,604,829 6,454,829

Undesignated 6,486,060 6,250,532

Total unrestricted net assets 13,803,994 14,082,257

Temporarily restricted 656,075 412,484

Permanently restricted 1,789,886 1,761,122

Total net assets 16,249,955 16,255,863

Total liabilities and net assets 18,813,008$ 18,386,534$

See accompanying notes to financial statements.

Girl Scout Council of the Nation's Capital

Statements of Financial Position

4

Years ended September 30 2013

Operating Capital Total Total

Changes in Unrestricted Net AssetsRevenue, gains and other support

Sales 15,640,563$ -$ 15,640,563$ 16,857,501$

Cost of sales 4,859,892 - 4,859,892 5,137,582

Net sales 10,780,671 - 10,780,671 11,719,919

Other supportCamping and other program fees 1,510,777 - 1,510,777 1,584,893 Foundation and corporate contributions 586,249 - 586,249 495,902 Annual giving campaigns 900,686 227,300 1,127,986 942,071 United Way designations 66,211 - 66,211 111,145 Interest, dividends and other income 357,146 - 357,146 413,187 Net realized and unrealized gain on investments 446,515 - 446,515 300,609

Total other support 3,867,584 227,300 4,094,884 3,847,807

Net assets released from restrictions:Satisfaction of program restrictions 308,146 38,838 346,984 468,500

Total unrestricted revenue, gains and other support 14,956,401 266,138 15,222,539 16,036,226

ExpensesProgram services

Troop-type service 6,962,856 321,899 7,284,755 6,951,864 Camping and property 3,551,973 273,614 3,825,587 3,811,342 Day camp and outreach 1,254,677 64,380 1,319,057 1,342,444 Adult/volunteer development 833,587 24,142 857,729 975,340

Total program services 12,603,093 684,035 13,287,128 13,080,990

Supporting servicesFundraising 1,083,553 58,344 1,141,897 1,206,107 Management and general 1,009,409 62,368 1,071,777 1,058,229

Total supporting services 2,092,962 120,712 2,213,674 2,264,336

Total expenses 14,696,055 804,747 15,500,802 15,345,326

Increase (Decrease) in Unrestricted Net Assets 260,346 (538,609) (278,263) 690,900

Changes in Temporarily Restricted Net AssetsFoundation and corporate contributions 383,575 - 383,575 273,150 Individual giving contributions 150,500 56,500 207,000 139,334 Net assets released from restrictions (308,146) (38,838) (346,984) (468,500)

225,929 17,662 243,591 (56,016)

Contributions 28,764 - 28,764 34,100

Increase in Permanently Restricted Net Assets 28,764 - 28,764 34,100

Increase (Decrease) in Net Assets 515,039$ (520,947)$ (5,908)$ 668,984$



Statements of Activities

2014

Increase (Decrease) in Temporarily Restricted Net Assets

Changes in Permanently Restricted Net Assets

5

Temporarily Permanently

Unrestricted Restricted Restricted Total

Net Assets, September 30, 2012 13,391,357$ 468,500$ 1,727,022$ 15,586,879$

Change in net assets 690,900 (56,016) 34,100 668,984

Net Assets, September 30, 2013 14,082,257 412,484 1,761,122 16,255,863

Change in net assets (278,263) 243,591 28,764 (5,908)

Net Assets, September 30, 2014 13,803,994$ 656,075$ 1,789,886$ 16,249,955$



Statements of Changes in Net Assets

6

Year ended September 30, 2014

Troop- Camping Day Camp Adult/Type and and Volunteer Fund- Management Total

Service Property Outreach Development Total Raising and General Total Expenses

ExpensesSalaries 3,554,371$ 1,187,189$ 495,807$ 354,521$ 5,591,888$ 489,919$ 459,177$ 949,096$ 6,540,984$ Staff health and retirement benefits 838,632 254,607 112,526 95,901 1,301,666 124,379 113,295 237,674 1,539,340 Payroll taxes 320,470 107,039 44,702 31,965 504,176 44,173 41,400 85,573 589,749 Total salaries and related expenses 4,713,473 1,548,835 653,035 482,387 7,397,730 658,471 613,872 1,272,343 8,670,073

Professional fees 152,400 317,232 74,183 41,490 585,305 123,179 98,722 221,901 807,206 Supplies 375,720 634,478 149,645 64,593 1,224,436 40,017 22,260 62,277 1,286,713 Communication 81,997 62,361 12,553 13,205 170,116 11,958 9,866 21,824 191,940 Postage and shipping 64,649 15,904 8,863 6,512 95,928 15,832 5,783 21,615 117,543 Occupancy 738,894 528,619 91,445 71,069 1,430,027 96,498 103,507 200,005 1,630,032 Rentals and maintenance 52,934 17,535 17,545 8,433 96,447 10,887 11,780 22,667 119,114 Outside printing and artwork 145,891 40,280 25,832 43,283 255,286 40,750 16,700 57,450 312,736 Transportation and related expenses 193,537 181,199 123,799 40,651 539,186 30,041 26,822 56,863 596,049 Adult conferences and conventions 27,187 6,024 1,966 26,154 61,331 12,881 9,107 21,988 83,319 Specific assistance to individual girls and adults 338,068 165,544 73,794 19,150 596,556 - - - 596,556 Dues for membership in other organizations 3,801 1,977 - 1,142 6,920 1,722 5,204 6,926 13,846 Interest 7,101 3,228 968 3,228 14,525 3,228 14,525 17,753 32,278 Miscellaneous 67,204 28,757 21,049 12,290 129,300 38,089 71,261 109,350 238,650 Total expenses before depreciation and amortization 6,962,856 3,551,973 1,254,677 833,587 12,603,093 1,083,553 1,009,409 2,092,962 14,696,055

Depreciation and amortization 321,899 273,614 64,380 24,142 684,035 58,344 62,368 120,712 804,747

Total expenses 7,284,755$ 3,825,587$ 1,319,057$ 857,729$ 13,287,128$ 1,141,897$ 1,071,777$ 2,213,674$ 15,500,802$



Statement of Functional Expenses

Program Services Supporting Services

7

Year ended September 30, 2013

Troop- Camping Day Camp Adult/Type and and Volunteer Fund- Management Total

Service Property Outreach Development Total Raising and General Total Expenses

ExpensesSalaries 3,391,179$ 1,130,606$ 485,552$ 443,275$ 5,450,612$ 531,033$ 424,057$ 955,090$ 6,405,702$ Staff health and retirement benefits 703,767 219,711 93,118 100,026 1,116,622 119,287 92,454 211,741 1,328,363 Payroll taxes 284,090 94,715 40,676 37,135 456,616 44,486 35,525 80,011 536,627 Total salaries and related expenses 4,379,036 1,445,032 619,346 580,436 7,023,850 694,806 552,036 1,246,842 8,270,692

Professional fees 166,296 346,157 80,946 45,273 638,672 134,411 107,722 242,133 880,805 Supplies 404,758 683,514 161,210 69,585 1,319,067 43,109 23,981 67,090 1,386,157 Communication 51,879 39,456 7,942 8,355 107,632 7,566 6,242 13,808 121,440 Postage and shipping 64,007 15,746 8,775 6,447 94,975 15,676 5,726 21,402 116,377 Occupancy 654,173 507,168 103,373 76,005 1,340,719 100,401 122,765 223,166 1,563,885 Rentals and maintenance 48,631 16,108 16,119 7,748 88,606 10,002 10,823 20,825 109,431 Outside printing and artwork 149,202 41,194 26,418 44,265 261,079 41,674 17,079 58,753 319,832 Transportation and related expenses 229,292 214,674 146,670 48,160 638,796 35,591 31,777 67,368 706,164 Adult conferences and conventions 25,341 5,615 1,833 24,378 57,167 12,006 8,488 20,494 77,661 Specific assistance to individual girls and adults 354,289 173,487 77,335 20,068 625,179 - - - 625,179 Dues for membership in other organizations 4,291 2,232 - 1,290 7,813 1,945 5,875 7,820 15,633 Interest 8,698 3,954 1,186 3,954 17,792 3,954 17,791 21,745 39,537 Miscellaneous 78,586 33,628 24,614 14,372 151,200 44,540 83,331 127,871 279,071 Total expenses before depreciation and amortization 6,618,479 3,527,965 1,275,767 950,336 12,372,547 1,145,681 993,636 2,139,317 14,511,864

Depreciation and amortization 333,385 283,377 66,677 25,004 708,443 60,426 64,593 125,019 833,462

Total expenses 6,951,864$ 3,811,342$ 1,342,444$ 975,340$ 13,080,990$ 1,206,107$ 1,058,229$ 2,264,336$ 15,345,326$


Program Services Supporting Services


Statement of Functional Expenses

8

Years ended September 30, 2014 2013

Cash flows from operating activities

Change in net assets (5,908)$ 668,984$

Adjustments to reconcile change in net assets

to net cash provided by operating activities

Bad debt expense 3,348 38,418

Realized and unrealized gains on investments and perpetual trusts (446,515) (300,609)

Depreciation and amortization 804,747 833,462

Donated land (225,000) -

Proceeds from contributions restricted for investment

in permanently restricted net assets (28,764) (34,100)

(Increase) decrease in assets

Accounts receivable 46,857 (124,202)

Contributions receivable (161,232) 198,257

Inventory 46,876 97,095

Prepaid expenses and deposits (69,444) 28,502

Increase (decrease) in liabilities

Accounts payable and accrued expenses 159,188 (155,658)

Accrued annual leave (9,179) (12,453)

Deferred revenue (2,476) 20,155

Deferred rent (40,151) 129,195

Net cash provided by operating activities 72,347 1,387,046

Cash flows from investing activities

Proceeds from sales and maturities of investments 2,179,741 2,120,851

Purchases of investments (2,356,812) (2,289,534)

Capital expenditures (425,236) (604,962)

Net cash used in investing activities (602,307) (773,645)

Cash flows from financing activities

Proceeds from contributions restricted for

investment in permanently restricted net assets 28,764 34,100

Principal payments on line-of-credit (3,150,000) (3,150,000)

Borrowings on line-of-credit 3,400,000 2,750,000

Net cash provided by (used in) financing activities 278,764 (365,900)

(Decrease) increase in cash and cash equivalents (251,196) 247,501

Cash and cash equivalents, beginning of year 283,725 36,224

Cash and cash equivalents, end of year 32,529$ 283,725$

Supplemental disclosures of cash flows information:

Noncash item - tenant improvement allowance 80,777$ 142,110$

Noncash item - note payable issued for donated land 75,000$ -$ Cash paid for interest 32,278$ 39,535$



Statements of Cash Flows

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Notes to Financial Statements

10

1. Organization and Summary of Significant Accounting Policies

Organization

The Girl Scout Council of the Nation’s Capital (the Council) was incorporated on January 1, 1963 in Virginia. The Council serves girls throughout the District of Columbia, eight counties in Maryland, ten counties in Virginia and seven counties in West Virginia. The accompanying financial statements do not include financial data for individual Girl Scout Troops.

Basis of Accounting

The financial statements of the Council have been prepared on the accrual basis of accounting.

Cash and Cash Equivalents

Cash and cash equivalents consist of deposits in checking, savings and money market accounts, and all liquid debt instruments with original maturities of three months or less. Certain money market accounts intended for long-term investment are categorized as investments.

Accounts Receivable

Accounts receivable consists mainly of receivables from the Council's troops for cookie sales.

The allowance method is used to determine doubtful accounts. The allowance for doubtful accounts is based on specifically identified amounts that the Council believes to be uncollectible. The Council also records an additional allowance for doubtful accounts based on certain percentages of aged receivables, which are determined based on management's historical experience and an assessment of general financial conditions. Currently this is 40% of the current year’s balances and 50% of prior year and before balances. If actual collection experience changes, revisions to the allowance may be required. After all attempts to collect a receivable have failed, the receivable is written off against the allowance.

As of September 30, 2014 and 2013, the Council believes that the allowance for doubtful accounts is adequate. However, future write-offs might exceed the recorded allowance. Contributions Receivable

Unconditional promises to give that are expected to be collected within one year are recorded at net realizable value. Unconditional promises to give that are expected to be collected in future years are recorded at the present value of their estimated future cash flows. The discounts on those amounts are computed using risk-free interest rates applicable to the years in which the promises are received. Amortization of the discounts is included in contribution revenue. The Council expects its contributions receivable to be fully realized and; consequently, did not record an allowance for uncollectible amounts.

Conditional promises to give are not included as support until the conditions are substantially met.



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Inventory

Inventory, stated at the lower of cost or market, consists of clothing, supplies and other items sold in the Girl Scout shops and at trading posts at campsites. There is no Girl Scout cookie inventory because the cookie sales occur between February and May each year and all of the cookies are sold by year-end.

Investments

Investments are recorded at readily determinable fair values. The Council utilized readily available market prices to value its investments as of September 30, 2014 and 2013. Therefore, all investments are classified at Level I as defined under Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 820. Unrealized and realized gains and losses are included in the statements of activities. Beneficial Interest in Perpetual Trusts The Council is the beneficiary of several trusts. Net unrealized gains and losses in these trusts are reported as restricted support based on the various donor gifts to the trusts which restrict distribution from the trusts to interest and dividend income. The carrying value of these assets is equal to the estimated fair value of the underlying trust assets, (which approximates the present value of the future cash flows to be derived from those trust accounts). The Council does not require collateral to secure its beneficial interest in perpetual trusts.

Financial Instruments and Credit Risk Financial instruments which potentially subject the Council to concentrations of credit risk consist principally of investments held at creditworthy financial institutions. By policy, these investments are kept within limits designed to prevent risks caused by concentration. As of September 30, 2014, the Council had no other significant concentration of credit risk, except as described in Note 3.

Land, Buildings, Equipment and Depreciation Land, buildings and equipment are recorded at cost, or if donated, such assets are capitalized at the estimated fair market value at the date of receipt. The value of the land represents the historical cost at the date of acquisition. Depreciation of buildings and equipment is computed using the straight-line method with the following estimated useful lives:

Camp buildings 20 to 40 years Camp equipment 5 to 15 years Vehicles 4 years

Office equipment 3 to 15 years The Council capitalizes all acquisitions of land, buildings and equipment over $2,500 and when assets are sold or disposed of, the cost and corresponding accumulated depreciation and amortization are removed from the accounts with any gain or loss recognized currently. Expenditures for repairs and maintenance are charged to expense as incurred. Costs associated with construction in progress are held until the asset is placed in service, at which point the asset is transferred out of construction in progress and depreciated over its estimated useful life. During the years ended September 30, 2014 and 2013, $291,024 and $0 of the prior year’s construction in process was reclassified to building and improvements as the construction was completed. During



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the years ended September 30, 2014 and 2013, $264,015 and $522,141, respectively, were capitalized as construction in progress. It is not the Council's policy to imply time restrictions expiring over the useful life of donated assets. In the absence of donor-imposed restrictions on the use of the asset, gifts of long-lived assets are reported as unrestricted support as placed in service.

Impairment of Long-Lived Assets

The Council reviews asset carrying amounts whenever events or circumstances indicate that such carrying amounts may not be recoverable. When considered impaired, the carrying amount of the asset is reduced to its current fair value by a charge to the statements of activities.

Unrestricted Net Assets

Unrestricted net assets are available for use in general operations. Unrestricted - board designated net assets consist of net assets designated by the Board for a specific use.

Temporarily and Permanently Restricted Net Assets

The Council reports gifts of cash and other assets as restricted revenue if they are received with donor stipulations that limit the use of the donated assets. When a donor restriction expires, that is, when a stipulated time restriction ends or purpose restriction is accomplished, temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statements of activities as net assets released from restriction. Expenses are reported as decreases in unrestricted net assets. Gains or losses on investments and other assets or liabilities are reported as increases or decreases in unrestricted net assets unless their use is restricted by explicit donor stipulation or by law.

Temporarily restricted net assets whose restrictions expire in the same year as received are classified as unrestricted revenue in the statements of activities. Permanently restricted net assets consist of assets whose use is limited by donor-imposed restrictions that neither expire by the passage of time nor can be fulfilled or otherwise removed by action of the Council. The restrictions stipulate that resources be maintained permanently but permit the Council to expend the income generated in accordance with the provisions of the agreements.

Endowments

The Council has interpreted the Commonwealth of Virginia’s Uniform Prudent Management of Institutional Funds Act (UPMIFA) as requiring the preservation of the fair value of the original gift as of the gift date of the donor-restricted endowment funds absent explicit donor stipulations to the contrary. As a result of this interpretation, the Council classifies as permanently restricted net assets (a) the original value of gifts donated to the permanent endowment, and (b) the original value of subsequent gifts to the permanent endowment. The associated gains and income on donor-restricted endowment funds are classified as temporarily restricted net assets until those amounts are appropriated for expenditure by the Council in a manner consistent with the standard of prudence prescribed by UPMIFA.



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In accordance with UPMIFA, the Council considers the following factors in making a determination to appropriate or accumulate donor-restricted endowment funds:

(1) The purposes that the Council will appropriate funds from the donor-restricted endowment

fund; (2) General economic conditions; (3) The possible effect of inflation and deflation; (4) The expected total return from income and the appreciation of investments; (5) Other resources of the Council; (6) The investment policies of the Council.

From time to time, the fair value of assets associated with individual donor-restricted endowment funds may fall below the level that the donor or UPMIFA requires the Council to retain as a fund of perpetual duration.

Endowment Investment and Spending Policies - The objective of the Endowment Fund is principal preservation pursued as a long-term goal designed to maximize the income returns without exposure to undue risk. It is understood that fluctuating rates of return are characteristic of the securities markets. This fund has a long-term performance horizon of 3-5 years.

For purposes of measuring performance:

(1) The total return, net of investment expenses, will be compared to an index comprised of a

blend of indices whose mix approximates the mix of the Endowment Fund. (2) The total return, net of investment expenses, of each investment manager will be evaluated

against an appropriate individual benchmark and a peer universe. For purposes of measuring performance, total return is defined as all dividends and interest and both realized and unrealized gains and losses reduced by investment expenses and fees.

To satisfy its long-term rate-of-return objectives, the Council relies on a total return strategy in which investment returns are achieved through both capital appreciation (realized and unrealized) and current yield (interest and dividends). The Council targets a diversified asset allocation that places a greater emphasis on equity-based investments to achieve its long-term return objectives within prudent risk parameters.

The Council’s fiscal policy governs the use of resources in the endowment fund for scholarships, camperships and financial assistance for programs. Endowment funds are used for the specified purpose, or over the specified time period, designated by the donor. The use of the endowment funds is incorporated into the operating budget process.

Revenue Recognition

Revenue is recognized during the period in which it is earned. Revenue received in advance and not yet earned is deferred to the applicable period.

Expenses

Expenses are recognized during the period in which they are incurred. Expenses paid in advance and not yet incurred are deferred to the applicable period.



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Functional Allocation of Expenses

The costs of providing various programs and supporting services have been summarized on a functional basis in the statements of activities. Accordingly, certain costs have been allocated among the programs and supporting services benefited.

Donated Services

A substantial number of volunteers have donated significant amounts of time to the Council's program services and to its fund-raising campaigns. Although the value of these services is significant, the Council does not record such value in its financial statements since the criteria for recognition is not met.

Use of Estimates

The preparation of the financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.

Operating Indicator

Operating activities include all revenue and expenses for the year, except for those amounts received or utilized for the acquisition of land, buildings and equipment. Net Accounting Pronouncement In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (ASU 2014-09). ASU 2014-09 requires a NFP entity to recognize revenue to depict the transfer of goods or services to customers in amounts that reflect the consideration (that is, payment) to which the entity expects to be entitled in exchange for those goods or services. Five key steps will be required to assess revenue recognition along with enhanced disclosures. The amendment is effective for fiscal years beginning after December 15, 2017. The Council is currently evaluating the effect the provisions of ASU 2014-09 will have on the financial statements. 2. Income Taxes

The Council has been granted exemption by the Internal Revenue Service (IRS), from Federal income taxes under Section 501(c)(3) of the Internal Revenue Code and as an exempt organization by the District of Columbia. In addition, the IRS has determined that the Council is not a “private foundation.”

The Council must recognize the tax benefit associated with tax positions taken for tax return purposes when it is more-likely-than-not that the position will be sustained. The Council’s management believes it has no material uncertain tax positions and; accordingly, it will not recognize any liability for unrecognized tax benefits. For the years ended September 30, 2014 and 2013, the Council did not recognize any interest or penalties. The Council is no longer subject to income tax examinations by federal or state tax authorities for fiscal years prior to 2011.



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3. Uninsured Cash Balances The cash balances that the Council maintains at several financial institutions did not exceed federally insured limits at September 30, 2014 and 2013. At times, during the year, these balances may exceed federally insured limits. The Council has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk on its cash and cash equivalents. 4. Accounts Receivable

Accounts receivable consist of the following at:

September 30, 2014 2013 Cookie receivables

$ 297,349

$ 358,125

Other receivables 90,465 95,254 387,814 453,379

Less: allowance for doubtful accounts (100,974) (116,334) Net accounts receivable

$ 286,840

$ 337,045

5. Contributions Receivable

The Council expects its contributions receivable to be fully realized. However, accounting standards require any multi-year pledges be discounted to reflect their net present value. Contributions receivable consist of the following unconditional promises to give at:

September 30, 2014 2013 Unconditional promises to give before

unamortized discount $ 655,802 $ 494,570 Less: unamortized discount (12,964) (12,964) Net unconditional promises to give

$ 642,838

$ 481,606

The discount is calculated using risk free rates between 0.23% and 0.62% for the years ended September 30, 2014 and 2013. The expected future cash receipts of contributions receivable are as follows at:

September 30, 2014 2013 Amounts due in: Less than one year $ 570,802 $ 451,570 One to five years 85,000 43,000 Unconditional promises to give before discount

$ 655,802

$ 494,570



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6. Investments

Investments, at fair value, consist of the following at:

September 30, 2014 2013 Corporate securities

$ 872,338

$ 1,347,290

Corporate bonds 797,066 76,154 Mutual funds 5,565,617 5,192,414 Money market funds 19,591 17,728 $ 7,254,612 $ 6,633,586

The following schedule summarizes the investment return for the years ended:

September 30, 2014 2013 Interest and dividends, net

$ 159,866

$ 175,549

Net realized and unrealized gains 446,515 300,609

$ 606,381

$ 476,158 Investment expenses that are offset against interest and dividends were $56,703 and $16,079 for the years ended September 30, 2014 and 2013, respectively.



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7. Land, Buildings, and Equipment

Land, buildings and equipment consists of the following at September 30, 2014:

Book Value, Beginning of Year

Net Change During Year

Book Value, End

of Year Land

$ 1,487,677

$ 350,000

$ 1,837,677

Building and Improvements Potomac Woods 2,056,883 124,931 2,181,814 Brighton Woods 2,505,465 19,982 2,525,447 Crowell 1,505,731 10,000 1,515,731 Winona 4,946,144 40,178 4,986,322 May Flather 712,548 - 712,548 Aquasco 555,730 - 555,730 Coles Trip 1,910,952 - 1,910,952 White Rock 814,540 91,933 906,473 Leasehold improvements - headquarters 1,050,110 11,197 1,061,307

Leasehold improvements – equipment center

Frederick County Office Space

7,254

200,000

- -

7,254

200,000 Shenandoah Office Space 247,643 - 247,643 Total buildings and improvements 16,513,000 298,221 16,811,221 Equipment

Office equipment 2,609,575 89,459 2,699,034 Equipment under capital lease 84,844 - 84,844 Vehicles 508,801 - 508,801 Camp and program equipment 189,804 - 189,804 Potomac Woods 119,968 4,000 123,968 Brighton Woods 11,645 - 11,645 Crowell 28,496 - 28,496 Winona 115,131 - 115,131 May Flather 92,966 10,565 103,531 Aquasco 4,579 - 4,579 Coles Trip 103,989 - 103,989 White Rock 139,384 - 139,384

Total equipment 4,009,182 104,024 4,113,206

Construction in progress 594,982 (27,009) 567,973

Total land, buildings, and equipment 22,604,841 725,236 23,330,077

Less: accumulated depreciation and amortization 12,747,970 804,747 13,552,717 Total

$ 9,856,871

$ (79,511)

$ 9,777,360



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Land, buildings and equipment consists of the following at September 30, 2013:

Book Value, Beginning of Year

Net Change During Year

Book Value, End

of Year Land

$ 1,487,677

$ -

$ 1,487,677

Building and Improvements Potomac Woods 2,056,883 - 2,056,883 Brighton Woods 2,505,465 - 2,505,465 Crowell 1,505,731 - 1,505,731 Winona 4,946,144 - 4,946,144 May Flather 712,548 - 712,548 Aquasco 555,730 - 555,730 Coles Trip 1,910,952 - 1,910,952 White Rock 814,540 - 814,540 Leasehold improvements - headquarters 1,050,110 - 1,050,110

Leasehold improvements – equipment center

Frederick County Office Space

7,254

200,000

- -

7,254

200,000 Shenandoah Office Space 247,643 - 247,643 Total buildings and improvements 16,513,000 - 16,513,000 Equipment

Office equipment 2,526,754 82,821 2,609,575 Equipment under capital lease 84,844 - 84,844 Vehicles 508,801 - 508,801 Camp and program equipment 189,804 - 189,804 Potomac Woods 119,968 - 119,968 Brighton Woods 11,645 - 11,645 Crowell 28,496 - 28,496 Winona 115,131 - 115,131 May Flather 92,966 - 92,966 Aquasco 4,579 - 4,579 Coles Trip 103,989 - 103,989 White Rock 139,384 - 139,384

Total equipment 3,926,361 82,821 4,009,182

Construction in progress 72,841 522,141 594,982

Total land, buildings, and equipment 21,999,879 604,962 22,604,841

Less: accumulated depreciation and amortization 11,914,508 833,462 12,747,970 Total

$ 10,085,371

$ (228,500)

$ 9,856,871

The Council leases, for a nominal value, the land on which Camp May Flather is located from the National Park Service and a portion of the land used for Camp Acquasco from the Maryland Capital Parks and Planning Commission.



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8. Note Payable In August 2014, the Council received donated land in Brookeville, Maryland from an individual donor and issued a deed of trust agreement (the agreement) between the Council and the donor to execute the purchase and donation of the land. At the time of donation, the land was appraised at $350,000. As part of the agreement, the Council was required to pay the donor $50,000 in cash and issued a note payable amounting to $75,000. The remaining amount of $225,000 was recorded as a contribution from the donor and included in the statements of activities. The note bears a 4% interest rate, payable in 40 regular payments of $2,284 starting in November 2014. As of September 30, 2014, no principal or interest payments have been made. 9. Line-of-Credit

During the years ended September 30, 2014 and 2013, the Council had an unsecured $3,000,000 and $2,750,000, respectively, line-of-credit with Capital One Bank. During, 2014, the Council borrowed $3,400,000 and subsequently repaid $3,150,000 on this line-of-credit, of which the $600,000 was borrowed from previous year. During the year ended September 30, 2013, the Council borrowed $2,750,000 and subsequently repaid $3,150,000 on this line-of-credit, of which the $1,000,000 was borrowed from previous year. The interest rate on this line-of-credit as of September 30, 2014 and 2013 was LIBOR plus 2.5%, which was 2.73% for both years. The Council is also subject to, and is in full compliance with, certain financial, affirmative, and negative covenants under this arrangement as of September 30, 2014 and 2013. During the years ended September 30, 2014 and 2013, the Council had an unsecured $400,000 line-of-credit with BB&T Bank which expires on February 10, 2016. During the years ended September 30, 2014 and 2013, the Council did not have borrowings from this line. The interest rate on this line-of-credit as of September 30, 2014 and 2013 was 3.25% and 5.25%, respectively. The Council is also subject to, and is in full compliance with certain financial, affirmative, and negative covenants under this arrangement as of September 30, 2014 and 2013.

10. Board Designated Net Assets

The Fund for Cash Flow provides the working capital required by the seasonal nature of cookie sales, the Council's primary source of revenue, which generally takes place in the first half of each fiscal year. Allocations to the fund are made annually by the Board. The Board also established a fund called the “Board Reserve.” In accordance with the guidelines of Girl Scouts of the USA, it is the goal of the Council to build a reserve fund equal to 50% of annual operating expenses. The fund is currently at 45% and 44% of the operating expenses for the years ended September 30, 2014 and 2013, respectively.



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11. Temporarily and Permanently Restricted Net Assets

Temporarily and permanently restricted net assets consist of the following at September 30, 2014: Temporarily Restricted

September 30, 2013

Contributions

Released From

Restrictions

September 30, 2014

Day camps $ 69,000 $ 84,075 $ 69,000 $ 84,075 Troop-type service 279,646 450,000 239,146 490,500 Acquisition of land,

building and equipment 63,838 56,500 38,838 81,500

$ 412,484

$ 590,575

$ 346,984

$ 656,075

Permanently Restricted

September 30, 2013

Contributions

September 30, 2014

Ewing Fund for Campership $ 15,578 $ - $ 15,578 Schwartz/Wolff Foundation Fund 18,208 - 18,208 Juliette Low Society 362,983 12,000 374,983 Phillips Gold Award Fund 250,000 - 250,000 Samuel Rosenstock Irrevocable Trust 225,277 - 225,277 Pangborn Trust 38,150 - 38,150 Shingleton Trust 41,913 - 41,913 Eva Woolridge Scholarship Fund 54,864 - 54,864 Verhage Campership Fund 754,149 - 754,149 Bobby Lerch Endowment Fund - 16,764 16,764

$ 1,761,122

$ 28,764

$ 1,789,886

Temporarily and permanently restricted net assets consist of the following at September 30, 2013:

Temporarily Restricted

September 30, 2012

Contributions

Released From

Restrictions

September 30, 2013

Day camps $ 96,000 $ 69,000 $ 96,000 $ 69,000 Troop-type service 372,000 279,646 372,000 279,646 Acquisition of land,

building and equipment 500 63,838 500 63,838

$ 468,500

$ 412,484

$ 468,500

$ 412,484



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September 30, 2012

Contributions

September 30, 2013

Ewing Fund for Campership $ 15,578 $ - $ 15,578 Schwartz/Wolff Foundation Fund 18,208 - 18,208 Juliette Low Society 329,883 33,100 362,983 Phillips Gold Award Fund 250,000 - 250,000 Samuel Rosenstock Irrevocable Trust 225,277 - 225,277 Pangborn Trust 38,150 - 38,150 Shingleton Trust 41,913 - 41,913 Eva Woolridge Scholarship Fund 54,864 - 54,864 Verhage Campership Fund 753,149 1,000 754,149

$ 1,727,022

$ 34,100

$ 1,761,122

12. Sales For the year ended September 30, 2014:

Cookies

Fall Sale Girl Scout

Shops

Total

Sales

$ 13,264,488

$ 763,536

$1,612,539

$ 15,640,563

Cost of sales 3,639,848 343,275 876,769 4,859,892 Net sales

$ 9,624,640

$ 420,261

$ 735,770

$ 10,780,671

For the year ended September 30, 2013:

Cookies

Fall Sale Girl Scout

Shops

Total

Sales

$ 14,403,555

$ 716,010

$1,737,936

$ 16,857,501

Cost of sales 3,825,987 337,807 973,788 5,137,582 Net sales

$ 10,577,568

$ 378,203

$ 764,148

$ 11,719,919

Cookie sales are net of $2,773,655 and $2,984,213 retained by troops for the years ended September 30, 2014 and 2013, respectively. Fall sales are net of $122,931 and $111,468 retained by troops for the years ended September 30, 2014 and 2013, respectively.

Net revenues from cookie sales represented approximately 63.0% and 66.0% of unrestricted revenues and other support for the years ended September 30, 2014 and 2013, respectively.



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13. Annual Giving Campaigns Annual giving campaigns revenue consists of the following:

September 30, 2014 2013 SHARE

$ 667,909

$ 690,600

Donated Capital Major gifts

227,300 194,037

- 205,166

Women of Distinction 38,740 46,305

$1,127,986

$ 942,071

14. Description of Program and Supporting Services

The following program and supporting services are included in the accompanying statements of activities:

Troop-type Service

The Council is the support organization of Girl Scouting in neighborhoods throughout the District of Columbia, eight counties in Maryland, ten counties in Virginia and seven counties in West Virginia.

It is responsible for the recruitment of girls and adults and the formation of Girl Scout troops throughout the region. The Council develops programs for girls and troops, provides outreach to low-income and linguistically diverse populations, as well as providing the financial support to ensure equal access to programs and activities by all members.

Camping and Property

The Council provides overnight and multi-day outdoor education experiences that teach teamwork, cooperation, self-reliance and leadership while enhancing girls’ skills in numerous sports, crafts, arts and outdoor related activities. The Council maintains seven area campsites that are used as overnight camps, summer day programs, service unit and troop camping and training. The Council provides financial support for resident camping through camperships to girls.

Day Camps and Outreach

The Council provides weeks of summer programs for youth that focus on self-awareness and skill building activities, as well as outdoor education, science, arts and crafts. Some of these programs are located in economically depressed and/or at-risk areas or in neighborhoods where English is not the primary language while others are more traditional and are located on campsites and in state parks. Through the day camps, the Council is able to serve the diverse population of girls in the region. The Council also provides financial support for day camps through camperships to girls.



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Adult/Volunteer Development

The Council facilitates volunteer involvement in scouting by providing the resources, the administrative and financial support, adult education courses, training for skills enhancement and safety, publications and communications materials, and the support services that enhance the delivery of the Girl Scout program.

Fund-raising

The Council also secures private financial support, grants and in-kind gifts from families, individuals, foundations and corporations, and the United Way and Combined Federal Campaigns. The Council coordinates the Girl Scout alumni and planned giving program, as well as communicating the progress and activities of the Council to the donor community.

Management and General

The Council's resources are used to support a professional working environment, which allows for the coordination, articulation and dissemination of the organization's mission and programs. The Council provides leadership support for all the volunteer policy-making arms of the organization. The Council maintains competent legal services for program administration and manages the financial and budgetary responsibilities of the Council.

15. Employee Retirement Plan

The Council participates in the National Girl Scout Council Retirement Plan (NGSCRP), a noncontributory defined benefit pension plan sponsored by Girl Scouts of the USA. The National Board of Girl Scouts of the USA voted to freeze the plan to new entrants and to freeze future benefit accruals for all current participants under the Plan effective July 31, 2010. The plan covers substantially all of the employees of various Girl Scout councils who were eligible to participate in the plan prior to the Plan freeze. Accrued and vested benefits prior to July 31, 2010 are based on years of service and salary levels. Although net Plan assets grew during the year, net Plan assets available for Plan benefits continue to be less than the actuarial present value of accumulated Plan benefits as of January 1, 2013. Contributions made in fiscal year 2014 and 2013 were $792,339 and $629,082, respectively.

During the year ended September 30, 2011, as a result of the National Girl Scout Council Retirement Plan being frozen, the Board of Directors appointed an Ad-Hoc Committee to develop a new single employer retirement plan for the Council’s employees. The Ad Hoc Committee worked with the Council’s management to design a defined contribution plan that would include a 2% non-discretionary contribution by the Council for all employees who met the eligibility requirements and, in addition, the Council would also match up to 3% of the contribution made by each eligible employee to their retirement savings. This retirement plan was started in April 2011; however, the Board of Directors approved a retro-active January 1, 2011 effective date for the 2% non-discretionary contribution for all eligible employees. Effective January 1, 2013, the Council changed its non-discretionary contribution from 2% to 3% and the employees became immediately vested in their contribution. The Council’s pension expense and contributions to the new plan for the years ended September 30, 2014 and 2013 were $280,460 and $278,364, respectively. Employees are fully vested in the Council’s contributions after 3 years of service.



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16. Commitments and Contingencies

Operating Leases

The Council has commitments under operating leases, expiring at various times through the year 2025, for office space and equipment. Some leases have scheduled rental increases and some contain options to renew. Minimum rental payments under non-cancelable operating leases are as follows: Years Ending September 30, 2015 $ 964,446 2016 977,907 2017 965,313 2018 950,409 2019 935,275 Thereafter 1,431,594

$ 6,224,944

Rent expense under these leases amounted to $1,067,423 and $983,209 for the years ended September 30, 2014 and 2013, respectively. A deferred rent liability was recorded in 2008 to reflect the benefit of lease incentives included in the headquarters office space lease. The benefit of these incentives is being recognized straight-line over the term of the lease. During the years ended September 30, 2014 and 2013, the Council’s landlords paid $80,777 and $142,110, respectively, in tenant improvements as part of these lease agreements. This is a non-cash transaction which resulted in an increase in leasehold improvements and deferred lease obligations.

17. Endowment

The Council‘s endowment consists of donor endowed contributions established for the purpose of funding scholarships and financial assistance to Girl Scouts. Net assets associated with the endowment funds are classified and reported on the existence or absence of donor-imposed restrictions.



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Changes in endowment net assets for the year ended September 30, 2014 are as follows:

Endowments

Unrestricted



Total

Endowments, September 30, 2013 $ - $ - $ 1,761,122 $ 1,761,122 Investment return:

Investment income 37,960 - - 37,960 Net appreciation

(realized and unrealized) 120,676 - - 120,676 Total investment return 158,636 - - 158,636 Contributions and transfers in - - 28,764 28,764 Appropriation of endowment

income for expenditure (158,636) - - (158,636) Endowment net assets, September 30, 2014

$ -

$ -

$ 1,789,886

$ 1,789,886

Changes in endowment net assets for the year ended September 30, 2013 are as follows:

Endowments

Unrestricted



Total

Endowments, September 30, 2012 $ - $ - $ 1,727,022 $ 1,727,022 Investment return:

Investment income 69,112 - - 69,112 Net appreciation

(realized and unrealized) 51,186 - - 51,186 Total investment return 120,298 - - 120,298 Contributions and transfers in - - $34,100 $34,100 Appropriation of endowment

income for expenditure (120,298) - - (120,298) Endowment net assets, September 30, 2013

$ -

$ -

$ 1,761,122

$ 1,761,122

18. Subsequent Events The Council evaluated subsequent events through January 29, 2015, which is the date the financial statements were available to be issued. There were no events noted that required adjustment to or disclosure in these financial statements.

Financial Statements

Documents

Transcript of Financial Statements