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measures to the Center's sustainability may be low due to the unique concentration of <br />Government contract revenue. <br />Results of Financial Operations <br />The following financial analysis pertains to the Davis Street Family Resource Center for <br />the four fiscal years ending June 30, 2007. The financial results for this period can be <br />summarized as follows: <br />Revenue <br />Support <br />Total Support and Revenue <br />Program Service Expenditures <br />General & Administrative <br />Development <br />Total Expenditures <br />Change in Net Assets <br />$29,463,091 <br />5,935,021 <br />$35,398,112 <br />$32,677,329 <br />2,243,915 <br />509,987 <br />$35,431,231 <br />(33.1191 <br />Program Service Expenditures were 92.2°'0 of Total Support and Revenue, comfortably <br />above the popular 90% standard frequently used as a criteria for Grants and Awards. <br />Total operating surplus (deficit) of the 4 years was as follows: <br />Year Amount <br />2004 ($ 79,226) <br />2005 (103,123) <br />2006 ( 16,602) <br />2007 165,832 <br />Total 33 1 <br />Operating results appear to have shown a positive trend in 2006 and 2007 but we must be <br />on guard against making any conclusion by simply looking at bottom-line results for a <br />nonprofit organization. The purpose of the organization is to fulfill its mission, not to <br />publish a profitable result. Financial sustainability must be evaluated first of all <br />based on the financial position and ratios, and then on the prospects for successful <br />results in producing Revenue and Support to fulfill their Expenditure goals. <br />Almost all of the $29 Million in Revenue comes from Government Grants and Contracts <br />or user fees associated with Government programs, identified as follows: <br />Alternative Payment Program $21,215,701 <br />Mental Health 1,867,813 <br />Basic Needs 1,200,268 <br />Childcare Program 4,879.615 <br />Sustainability Study: Davis Street Family Resource Center- 4/08 Page 7 oF96 <br />