TREASURE COAST AGRICULTURALRESEARCH FOUNDATION, INC.

FINANCIAL STATEMENTS

June 30, 2013

Index

Independent Auditors' Report 1

Financial Statements

Statement of Financial Position 3 Statement of Activities 4 Statement of Cash Flows 5 Notes to Financial Statements 6

Independent Auditors' Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 8

Management Letter 10

See accompanying notes to financial statements

3

TREASURE COAST AGRICULTURALRESEARCH FOUNDATION, INC.

Statement of Financial PositionJune 30, 2013

ASSETS

Cash and cash equivalents 221,638$ Property and equipment, net of accumulated depreciation 62

Total assets 221,700

NET ASSETS

Net assets Unrestricted 221,700

Total net assets 221,700$

See accompanying notes to financial statements

4

TREASURE COAST AGRICULTURALRESEARCH FOUNDATION, INC.

Statement of ActivitiesFor the year ended June 30, 2013

Support and revenue Membership Dues 1,700$ Interest 125

Total support and revenue 1,825

Expenses Contributions 95,175 Legal and accounting 2,950 Meetings 1,314 Bank charges 150 Depreciation 117 Taxes and licenses 61 Total expenses 99,767

Decrease in net assets (97,942)

Net assets, beginning of year 319,642

Net assets, end of year 221,700$

See accompanying notes to financial statements 5

TREASURE COAST AGRICULTURALRESEARCH FOUNDATION, INC.

Statement of Cash FlowsFor the year ended June 30, 2013

CASH FLOWS FROM OPERATING ACTIVITIES

Decrease in net assets (97,942)$ Adjustments to reconcile change to net cash used in operating activities: Depreciation 117 Decrease in accounts payable (30,000) Net cash used in operating activities (29,883)

DECREASE IN CASH (127,825)

CASH AND CASH EQUIVALENTS, beginning of year 349,463

CASH AND CASH EQUIVALENTS, end of year 221,638$

TREASURE COAST AGRICULTURALRESEARCH FOUNDATION, INC.

Notes to Financial StatementsJune 30, 2013

6

NOTE 1 - Organization and Summary of Significant Accounting Policies Organization The Treasure Coast Agricultural Research Foundation, Inc. (the Foundation) is organized as a not-for-profit organization in the state of Florida and has been certified as a direct support organization of the University of Florida by the Board of Trustees of the University of Florida. The Foundation was formed to provide research, education, and extension services at the Institute of Food and Agricultural Sciences of the University of Florida. Basis of Financial Statement Presentation The financial statements of the Foundation have been prepared utilizing the accrual basis of accounting in accordance with United States generally accepted accounting principles. Donated Goods and Services The Foundation occupies office space at the University of Florida and is assisted by employees of the University. Additionally, the Foundation receives donated services from the officers and members of the Board of Directors who assist the Foundation in research and education programs. No amounts for these services have been recognized in the accompanying Statement of Activities because the criteria for recognition has not been satisfied. Income Taxes The Foundation is exempt from federal income taxes under Section 501(c)(5) of the Internal Revenue Code. Accordingly, income taxes are not provided for on the Foundation's financial statements. Property and Equipment The Foundation capitalizes all property and equipment acquisitions in excess of $500. Purchases of property and equipment are capitalized at cost. Donations of property and equipment are recorded as support at the estimated fair market value at the date of donation. Property and equipment are depreciated using the straight-line method over the estimated useful lives that range from 5 to 15 years. Use of Estimates The preparation of financial statements in conformity with United States generally accepted accounting principles requires management to make estimates and assumptions. This will affect the reported amount of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates.

TREASURE COAST AGRICULTURALRESEARCH FOUNDATION, INC.

Notes to Financial StatementsJune 30, 2012

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NOTE 3 - Property and Equipment

Property and equipment consists of the following:

Equipment 3,846$ Improvements 5,199

9,045 Less accumulated depreciation 8,983

Total property and equipment 62$

NOTE 4 - Leases The Foundation conducts its operations on approximately 218 acres of land under a sub-lease agreement with the University of Florida Board of Trustees. The sub-lease is for a period of ten years with automatic renewals for successive ten year periods up to a maximum of fifty years. The rent for the use of the property is ten dollars per ten year period. NOTE 5 - Contributions The Foundation contributed $95,175 to the University of Florida Foundation, Inc. in July 2012 to assist with the funding of a citrus horticulturist position. The Foundation does not plan to fund this position during the 2013-2014 fiscal year.

NOTE 2 - Cash and Cash Equivalents The Foundation maintains its cash balance at several financial institutions that are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000. As of June 30, 2013, the Foundation's balances are insured.