CITIZENS COMMISSION ON HUMAN RIGHTSDECEMBER 31, 2014 and 2013

CF RTiFLU PUBUCUNTANTSh.
BUSNLSS CONSUL [ANTS

September 17, 2015

INDEPENDENT AUDITORS' REPORTBoard of Directors
Citizens Commission on Human Rights
Los Angeles, California

Report on the Financial Statements
We have audited the accompanying financial statements of Citizens Commission on HumanRights (a nonprofit organization), which comprise the statements of financial position as ofDecember 31, 2014 and 2013, and the related statements of activities, functional expenses andcash flows for the years then ended, and the related notes to the financial statements .

Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statementsin accordance with accounting principles generally accepted in the United States of America ; thisincludes the design, implementation, and maintenance of internal control relevant to thepreparation and fair presentation of financial statements that are free from material misstatement,
whether due to fraud or error .

Auditor's Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit . We
conducted our audit in accordance with auditing standards generally accepted in the UnitedStates of America . Those standards require that we plan and perform the audit to obtainreasonable assurance about whether the financial statements are free of material misstatement .
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements . The procedures selected depend on the auditor's
judgment, including the assessment of the risks of material misstatement of the financialstatements, whether due to fraud or error . In making those risk assessments, the auditor
considers internal control relevant to the entity's preparation and fair presentation of the financialstatements in order to design audit procedures that are appropriate in the circumstances, but notfor the purpose of expressing an opinion on the effectiveness of the entity's internal control .
Accordingly, we express no such opinion . An audit also includes evaluating the appropriateness9454 Wilshire Blvd ., 4th Floor . Beverly Hills . CA 90212-2907
P : 310 .273 .2501
F : 310 .859 .0374
www .nsbn .com

Page 2
INDEPENDENT AUDITORS' REPORTof accounting policies used and the reasonableness of significant accounting estimates made bymanagement, as well as evaluating the overall presentation of the financial statements .
We believe that the audit evidence we have obtained is sufficient and appropriate to provide abasis for our audit opinion .
OpinionIn our opinion, the financial statements referred to above present fairly, in all material respects,
the financial position of Citizens Commission on Human Rights of December 31, 2014 and 2013,
and the statements of activities, functional expenses and cash flows for the year then ended inconformity with accounting principles generally accepted in the United States of America .

5wj L LNNSBN
LLP
Beverly Hills, California

CITIZENS COMMISSION ON HUMAN RIGHTS
STATEMENTS OF FINANCIAL POSITIONDECEMBER 31, 2014 and 2013ASSETS

2014

2013

Cash and cash equivalents
Receivables, net
Deposits and other assets
Donated assets
Inventory
Property and equipment, net$

127,847
15,517
695,867
66,822
43,87932,722$

151,749
16,444
11,03861,46057,31336,705TOTAL ASSETS$982,654$334,709$20,695-$31,602
93,925

LIABILITIES
Accounts payable and accrued liabilities
Due to related party
TOTAL LIABILITIES

20,695125,527

NET ASSETS - unrestricted

961,959

209,182

TOTAL LIABILITIES AND NET ASSETS$

See accompanying independent auditors' report .
The notes are an integral part of these financial statements .

982,654$334,709

111111It

CITIZENS COMMISSION ON HUMAN RIGHTS
STATEMENT OF FUNCTIONAL EXPENSESYEAR ENDED DECEMBER 31, 2014

Hotline forPsychiatric
Abuse
Salaries and employee benefits
Payroll taxes$Contributions to affiliated organizations
Cost of materials soldDonation of materials
Fundraising commissions
Insurance
Maintenance
Office and administrative
Postage and shipping
Printing and promotion
Professional fees
Rent
Staff Training
Special events costs
Taxes, dues and fees
Telephone
TravelUtilities

Lobbying$72,464 $
5,994
78,458396,086
32,964
429,050$

8,950

Total expenses before depreciation
Depreciation
Total Expenses

111,554
9,896
121,450

Program Services
PublicAwarenessand Information
EducationalCampaign
Publications$2,998613
89994095

2,055
453
545
569
154

26,620392

176,801
14,815
191,616

25
4,415
58
4,477

19,635
237
16
2,674
3,399
3,302

5,362
1,214
4,663
5,595
4,303
61,072586

162,982

111,497

817

603
$

112,100$

Total
ProgramServices

Research$

168,257
14,057
182,314$925,162
77,726
1,002,888

rtin Services

Management
and General$

91,3778,106
99,483$

2,714,218

201,770

308,4103,224,398

9,809

1,363

1,054

12,226203,133 $309,464

39
6,609
86
8,856

1,891,616

317,115231 .008

6,167

1,617

605
$

231,613

See accompanying independent auditors' report .
The notes are an integral part of these financial statements .

$1,120,657
95,0691,215,726

279
3,616
1,486
7,467

3,997
1,023
7,885
770
78
30,96144,404
321

318,732

104,118
9,237
113,355

63,8493,446
792
39,647877
4,349
10,02934,3502,200
25,379
186
4,121
54
5,776

31,076
7,363
28,57948,471
881,776
3,575
327,903
3,075
230,327
12,62934,67512,08853,729$$8,950
27,114
63,84938,5199,178
76,111
50,118886,20344,565406,657
5,596
255,706
13,09442,412
13,62866,972

3,023
454
12,066
1,335
135
1,575
19,692
556
193
6,271
82
3,312

1,897,783

Total
Expenses

Fundraising

8,950
27,114

27,114

17,638
4,629
10,40640,032877,089
2,000
200,884
1,304
230,327
12,356
14,706
8,463
33,782

163,799Su2,724,027$$

3,236,624

CITIZENS COMMISSION ON HUMAN RIGHTS
STATEMENT OF FUNCTIONAL EXPENSESYEAR ENDED DECEMBER 31, 2013

Hotline for
Psychiatric
Abuse
Salaries and employee benefits
Payroll taxes
Contributions to other Scientology organizations
Cost of materials soldFundraising commissions
Insurance
Maintenance
Office and administrative
Postage and shipping
Printing and promotion
Professional fees
Rent
Special events costs
Taxes, dues and fees
Telephone
TravelUtilities
Total expenses before depreciation
Depreciation
Total Expenses$

77,897
7,630
85,527

Program Services
PublicAwarenessand Information
Educational
Campaign
Publications

Lobbying$

66,834
6,019
72,853$371,168
33,718404,886$

96,000-158,747
14,494
173,241

Supporting Services
TotalProgramServicesResearch$

138,090
12,471
150,561$

812,736
74,332887,068

Management
and General$

93,581
9,167
102,748

Total
Expenses

Fundraising$

85,0408,330
93,370$991,357
91,8291,083,186

2,342
575
10,564
1,749
331
22,617
19,593
6,515
25,111
5,966
93
3,012

96,00033,091
2,426
22,696
9,323
23,432
9,863
958,432
64,301
325,185
38,832
239,045
31,61035,56321,654
48,863

3,015
1,295
11,2171,286
243
38,91644,180
4,789
236
4,386
316
6,791

98,4682,481
1,002
45,6798,693
13,382
11,384
34,177
4,352
6,529
336
3,98562
5,253

96,00033,091
2,426
98,46828,192
11,62080,328
19,842
972,057
114,601
403,542
47,973
245,574
32,182
43,93422,03260,907

70
3,651
57
4,071

1,568
573
401
844
15,785
5,503
19,536
3,144
55
2,880
9,568
3,003

12,714
5,861
9,540
4,924
933,045
36,181
199,873
17,615
239,045
5,416
16,132
11,82830,72333,091
2,426
4,009
1,537
2,419
1,276
9,069
59,697
7,572
958
6,934
108
8,054

128,468

135,713

2,023,783

310,391

249,029

2,847,384

219,418329,153

3,395,955

737

544

5,564

1,459

545

8,849

1 .230951

11,030

2,063
777
508
1,070
202
26,486
3,986

129,205$

136,257$

2,029,347$

311,850$

249,574

See accompanying independent auditors' report .
The notes are an integral part of these financial statements .

$2,856,233$

220,648$

330,104$

3,406,985

CITIZENS COMMISSION ON HUMAN RIGHTSNOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2014 and 2013

Note lNATURE OF ACTIVITIES AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Description of Reporting EntityCitizens Commission on Human Rights (CCHR) is a California, tax-exempt, nonprofit,
public benefit corporation dedicated to investigating and exposing psychiatric violations ofhuman rights . As a research and educational organization, CCHR's primary goal is toprovide the general public with the facts they need for a better understanding of the social,
medical, economic and legal effects of certain psychiatric practices and treatments . It
also seeks to protect the public against increasing encroachment on individual rights andcivil liberties that result from psychiatry's impingement on society .
CCHR's objectives are to bring these matters to the attention of the public and relevant
governmental entities and to encourage a more responsible approach to mental healingthat respects human and civil rights of all individuals concerned .
CCHR achieves its goals through extensive educational and outreach activities . It
conducts research, publishes educational literature, serves as an international
informational clearinghouse, hosts educational events, and engages in other public
outreach and educational activities, including providing tours of its permanent museum,Psychiatry, the Industry of Death Museum .
Tax Exempt StatusCCHR is recognized by the Internal Revenue Service as exempt from Federal income tax
under Section 501 (c)(3) . CCHR is also recognized by the California Franchise Tax Board
as exempt from California Corporation Franchise Tax under Section 23772(a)(2)(A)(i) ofthe California Revenue and Taxation Code and exempt from income tax under Section
2370(1)(d) . CCHR qualifies for the charitable contribution deduction under Section
170(b)(1)(A) and has been classified as an organization other than a private foundation
under Section 509(a)(2) .
Income TaxesCCHR files Form 990, Return of Organization Exempt from Income Tax, and Form 199,
California Exempt Organization Annual Information Return .
CCHR has evaluated its tax positions and the certainty as to whether those tax positions
will be sustained in the event of an audit by taxing authorities at the federal and state level
It has determined that all income tax positions are more likely than not (greater than 50%chance) of being sustained upon potential audit or examination ; therefore, no recognition
or disclosure of uncertain income tax positions is required in the financial statements .
With few exceptions, CCHR is no longer subject to U .S . federal and state examinations
by tax authorities for years before 2011 and 2010, respectively .

CITIZENS COMMISSION ON HUMAN RIGHTSNOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2014 and 2013

Note lNATURE OF ACTIVITIES AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Basis of AccountingThe financial statements of CCHR have been prepared on the accrual basis ofaccounting and conform to accounting principles generally accepted in the United Statesof America as applicable to nonprofit organizations .
Basis of PresentationThe financial statements of CCHR have been presented in accordance with the AICPA's
Audit and Accounting Guide, "Not-For-Profit Organizations ." The accounting policies
followed are described below .
Net Asset ClassesThe accompanying financial statements present information regarding CCHR's financial
position and activities according to three classes of net assets : unrestricted, temporarilyrestricted and permanently restricted . The three classes are differentiated by donor
restrictions :a- Unrestricted
Net assets that are not subject to donor-imposed restrictions, or donor-restricted
contributions whose restrictions are met within the same reporting period .
b- Temporarily Restricted
Net assets that are subject to donor-imposed time or use restrictions that have notbeen met as of year-end . Temporarily restricted net assets are restricted for time(e .g ., multi-year pledges) or specific programs . There were no temporarily restricted
net assets at December 31, 2014 and 2013 .
c- Permanently Restricted
Net assets subject to donor-imposed restrictions that are maintained permanently .
There were no permanently restricted net assets at December 31, 2014 and 2013 .
Functional Expense AllocationThe costs of providing CCHR's programs and the supporting services have beensummarized on a functional basis in the statement of activities, and in the statement offunctional expenses. Accordingly, certain costs have been allocated between programand supporting services in reasonable ratios determined by management .
Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with accounting principles generally
accepted in the United States of America requires management to make estimates andassumptions that affect certain reported amounts and disclosures . Accordingly, actual
results could differ from those estimates .

CITIZENS COMMISSION ON HUMAN RIGHTSNOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2014 and 2013
Note lNATURE OF ACTIVITIES AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Cash and Cash EquivalentsCash and cash equivalents include all funds in banks and highly liquid investments inother financial institutions, with initial maturity of three months or less . The carrying value
approximates fair value .
InventoryInventory is stated at lower of cost or market ; cost is determined by the average cost
method . Inventory consists of public awareness and/or educational booklets, pamphlets
and books, as well as insignia promoting the museum . Shipping costs are expensed
when paid .
Fair value measurementsCCHR adopted the Financial Accounting Standards Board issued ASC number 820-10,
Fair Value Measurements, which defines fair value, establishes a framework formeasuring fair value, and expands disclosures about fair value measurements . The
standard provides a consistent definition of fair value which focuses on an exit pricebetween market participants in an orderly transaction as prescribed by ASC number
820-10 . The standard also prioritizes, within the measurement of fair value, the use of
market-based information over entity-specific information and establishes a three-level
hierarchy for fair value measurements based on the transparency of information used in
the valuation of an asset or liability as of the measurement date .
The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fairvalue into three broad levels :Level I - Quoted prices are available in active markets for identical investments as of thereporting date . The type of investments in Level I include listed equities held in thi
name of the Organization, and exclude listed equities and other securities held
indirectly through commingled funds .
Level II Pricing inputs, including broker quotes, are generally those other than exchange
quoted prices in active markets, which are either directly or indirectly observable
as of the reporting date, and fair value is determined through the use of models ofother valuation methodologies .
Level III Pricing inputs are unobservable for the investment and includes situations where
there is little, if any, market activity for the investment . The inputs into thedetermination of fair value require significant management judgment orestimation . Investments that are included in this category generally include
privately held investments and partnership interests .

CITIZENS COMMISSION ON HUMAN RIGHTSNOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2014 and 2013

Note lNATURE OF ACTIVITIES AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Property and equipmentProperty and equipment are carried at cost. Depreciation is computed using primarily thestraight-line method, with the following estimated useful lives :YEARSFurniture and equipment
Display fixtures
Software5-7
7
3Expenditures for maintenance, repairs, and renewals of minor items are charged to
expense as incurred . Major renewals and improvements are capitalized . Upon disposition,
the cost and related accumulated depreciation are removed from the accounts and theresulting gain or loss is reflected in operations for the period .
Donated assetsNon-cash donations are recorded as contributions at fair market value at the time ofdonation .
ReceivablesReceivables represent amounts owed to CCHR by CCHR chapters for license fees andby donors for pledged unconditional promises to give . The receivables are stated at fairvalue net of allowances .
Subsequent eventsManagement has evaluated subsequent events through September 17, 2015, the date thefinancial statements were available to be issued .
Note 2

DONATED ASSETS
Donated assets consisted of non-cash donations . These donated assets are recorded ascontributions at the fair market value at the time of donation . The fair value of the donatedassets has been measured on a nonrecurring basis using quoted prices for similar assets ininactive markets (Level II inputs) .

CITIZENS COMMISSION ON HUMAN RIGHTSNOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2014 and 2013

Note 3

FAIR VALUE MEASUREMENTS
The fair value measurements and levels within the fair value hierarchy of those measurements
for the assets reported at fair value at December 31, 2014 and 2013 are as follows :Fair Value

Level I

Level II

Level IIIMeasured on a Nonrecurrinq
Basis at December 31, 2014
Donated assets$66,822 $$

61,460 $66,822 $Measured on a Nonrecurrinq
Basis at December 31, 2013
Donated assets

Note 4$

RECEIVABLES
License fees receivable
Pledges receivable

2014$

Less allowance for doubtful accounts$
Note 5 PROPERTY AND EQUIPMENT
Furniture and equipment
Display fixtures
Software61,460 $30,109925

2013$

31,03432,888(15,517)(16,444)

15,517$2014$

Less accumulated depreciation$

32,638250

1,283,242
720,420
49,50916,4442013$

1,289,318
720,420
49,5092,053,171

2,059,247(2,020,449)(2,022,542)

32,722$36,705

CITIZENS COMMISSION ON HUMAN RIGHTSNOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2014 and 2013
Note 6

RELATED PARTY TRANSACTIONSCCHR is affiliated with Church of Scientology International (CSI) and Social Betterment
Properties Incorporated (SBPI), both of which are tax-exempt nonprofit corporations .
CCHR is related to all CCHR chapters globally and all license fees receivable are from relatedparties .
CCHR occupies a facility owned by SBPI, rent free . The approximate fair value of the monthly
rent was estimated to be $32,460, which is included in contributions and rent expenses in thestatement of activities .
Included in printing and promotion are dissemination expenses paid to related parties in theamount of $823,916 and $654,505, in 2014 and 2013, respectively .
Included in contribution from related party are CCHR's operating expenses paid by CSI in theamount of $27,528 and $57,475, in 2014 and 2013, respectively . CSI also contributed$121,801 in 2014 to CCHR for liability insurance premiums, which included prior year unpaid
liability insurance premium of $93,925 .
Included in deposits and other assets are prepaid dissemination expenses paid to CSI in theamount of $687,177 in 2014 . There were no prepaid dissemination expenses in 2013 .

Note 7

CONCENTRATION OF CREDIT RISKCash and cash equivalents include approximately $574,650 in excess of insured limits as ofDecember 31, 2014 . Cash balances did no exceed the FDIC insured limits at December 31,
2013 .