CITIZENS COMMISSION ON HUMAN RIGHTSDECEMBER 31, 2013 and 2012

CERTIFIED PUBLIC ACCOUNTANTS
BUSINESS CONSULTANTS

September 3, 2014
INDEPENDENT AUDITORS' REPORTBoard of Directors
Citizens Commission on Human Rights
Los Angeles, California

We have audited the accompanying financial statements of Citizens Commission on Human
Rights (a nonprofit organization), which comprise the statements of financial position as ofDecember 31, 2013 and 2012, 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 the
preparation 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 financial
statements, 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 financial
statements 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 appropriatenessof accounting policies used and the reasonableness of significant accounting estimates made bymanagement, as well as evaluating the overall presentation of the financial statements .
9454 Wilshire Blvd . . 4th Floor, Beverly Hills . CA 90212-2907
P :310 .273 .2501

F : 310 .859 .0374

www .nsbn .co m

INDEPENDENT AUDITORS' REPORTPage 2We 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, 2013 and 2012,
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 .

N~4N

LL3 2

NSBN LLP
Beverly Hills, California

CITIZENS COMMISSION ON HUMAN RIGHTS
STATEMENTS OF FINANCIAL POSITIONDECEMBER 31, 2013 and 2012ASSETS

2013

2012

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

151,749
16,444
11,03861,46057,31336,705$452,858
19,623
13,55460,14358,87921,607TOTAL ASSETS$

334,709$626,664$

31,602
93,925$61,282
76,712

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

125,527

137,994

NET ASSETS - unrestricted

209,182

488,670

TOTAL LIABILITIES AND NET ASSETS$

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

334,709$626,664

CITIZENS COMMISSION ON HUMAN RIGHTS
STATEMENTS OF ACTIVITIESYEARS ENDED DECEMBER 31, 2013 and 2012

REVENUE AND SUPPORT

2013

2012

Educational publications and materials sales
Contribution from related party
Grant from another nonprofit organization
Donations
License fee income
Membership income
Special events income
Other revenue$

65,276446,991
712,919
1,543,204
39,14372,313230,071
17,580$65,823
407,694
477,532
1,784,682
45,85553,998211,857
15,518TOTAL REVENUE AND SUPPORT$

3,127,497$

3,062,959$

129,205
136,257
2,029,347
311,850
249,574$

140,939
104,331
1,731,501
266,698
177,566

EXPENSES
Program services
Hotline for psychiatric abuse
Lobbying
Public awareness and information campaign
Educational publications
Research
Supporting services
Management and GeneralFundraising
TOTAL EXPENSES

220,648
330,104$

3,406,985

239,367
335,245$

2,995,647

CHANGES IN NET ASSETS - unrestricted(279,488)

67,312NET ASSETS - unrestricted, January 1

488,670

421,358

209,182

488,670

NET ASSETS - unrestricted, December 31$

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

CITIZENS COMMISSION ON HUMAN RIGHTS
STATEMENTS OF CASH FLOWSYEARS ENDED DECEMBER 31, 2013 and 2012

2013

CASH FLOWS FROM OPERATING ACTIVITIES
Change in net assets - unrestricted$(279,488)2012$

67,312Adjustments to reconcile change in net assets to
net cash provided by operating activities :Depreciation
Loss on disposition of property and equipment

11,03062,4305(Increase) decrease in assets :Receivables
Deposits and other assets
Donated assets
Inventory

3,179
2,516
(1,317)
1,566

6,394
(854)
38,768(17,825)

Increase (decrease) in liabilities :Accounts payable and accrued liabilities
Due to related party(29,680)
17,213(206,812)
15,938(274,981)(34,644)

Acquisitions of property and equipment(26,128)(7,462)NET CASH (USED IN) INVESTING ACTIVITIES(26,128)(7,462)NET (DECREASE) IN CASH AND CASH EQUIVALENTS(301,109)(42,106)

CASH AND CASH EQUIVALENTS, January 1

452,858

494,964

NET CASH (USED IN) OPERATING ACTIVITIESCASH FLOWS FROM INVESTING ACTIVITIESCASH AND CASH EQUIVALENTS, December 31$

151,749

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

$452 858

I

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 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
Total expenses before depreciation$

Lobbying$

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

Research$

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

26,486
3,986
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
11,82830,723

4,009
1,537
2,419
1,276
9,069
59,697
7,572
958
6,934
108
8,054

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

128,468

135,713

2,023,783

310,391

249,029

2,847,384

219,418

329,153

3,395,955

737

544

5,564

1,459

545

8,849

1,230

951

11,030

2,063
777
508
1,070
202

$

158,747
14 .494
173,241

Total
ProgramServices

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
48,86396 .000

Depreciation
Total Expenses

77,897
7,630
85,527

Supporting Services

Program Services
PublicAwareness
and Information
Educational
Campaign
Publications

129,205$

136,257$

2,029,347

33,091
2 .426$

311,850$

249,574

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

$2856233

$

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
3,985
62
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
43,93422,03260,907220648$330,104$

3,406,985

CITIZENS COMMISSION ON HUMAN RIGHTS
STATEMENT OF FUNCTIONAL EXPENSESYEAR ENDED DECEMBER 31, 2012

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

Lobbying$

64,6606,078
70 .738$

292,30927,301
319,610$82,021

Total expenses before depreciation
Depreciation
Total Expenses

86,388
8,616
95,004Program Services
PublicAwareness
Educationaland Information
Campaign
Publications$

140,940
13,316
154,256

Supporting Services
Total
ProgramServices

Research$

109,908
10,221
120,129$694,205
65,532759,737

Management
and General$

111,087
11,079122,166

Total
Expenses

Fundraising$

76,501
7,630
84,131$

881,793
84,241
966,034

10,00019,614
1,168
3
5,373
50
3,423

82,021
8,325
24 .602
6 .406
37,20016,720691,193
10,000324,323
7,486
284,014
12,082
34,45016,861
55,531

3,774
891
14,707979
30,62044,229
1,266
177
5,825
54
7,718

130,2292,750
689
18,5462,909
3,448
9 .95634,215872
31,557
540
4,011
37
5,970

82,021
8,325
130,229
31,126
7,986
70,453
20,608694,641
50,576
402,767
9,624
315,571
12,79944,286
16,952
69,219

3
3,195
30
3,413

12,962
4,028
20,704
10,263685,191
200,093
3,119
284,01412,064
14,353
16,67434,915

8,325
4,508
1,055
3,750
4,256
6,002
58,543
1,521
8
7,000
65
9,153

136,766

101,253

1,700,011

258,442

174,479

2,370,951

232,406

329,860

2,933,217

4,173

3,078

31,490

8,256

3,087

50,084

6,961

5 .38562,430

2,619
534
1,147
761

1,882
394
809
537

26,515984

19,558
694

4
4,529
42
4,627

140,939$

104,331$

1,731,501$

266,698

2,631
395
10,790903$

177,566

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

$2,421,035$

239,367$

335,245$

2,995,647

CITIZENS COMMISSION ON HUMAN RIGHTSNOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2013 and 2012

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 violationsof human rights . As a research and educational organization, CCHR's primary goal isto provide the general public with the facts they need for a better understanding of thesocial, medical, economic and legal effects of certain psychiatric practices andtreatments . It also seeks to protect the public against increasing encroachment on
individual rights and civil 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) of the 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 aprivate 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 statelevel . It has determined that all income tax positions are more likely than not (greaterthan 50% chance) of being sustained upon potential audit or examination ; therefore, norecognition 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 2010 and 2009, respectively .

CITIZENS COMMISSION ON HUMAN RIGHTSNOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2013 and 2012
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 UnitedStates of 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,
temporarily restricted and permanently restricted . The three classes are differentiatedby 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 havenot been met as of year-end . Temporarily restricted net assets are restricted fortime (e .g ., multi-year pledges) or specific programs . There were no temporarily
restricted net assets at December 31, 2013 and 2012 .
c- Permanently Restricted
Net assets subject to donor-imposed restrictions that are maintained
permanently . There were no permanently restricted net assets at December 31,
2013 and 2012 .
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 makeestimates and assumptions 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, 2013 and 2012

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
for measuring fair value, and expands disclosures about fair value measurements .
The standard provides a consistent definition of fair value which focuses on an exit
price between 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 measurefair value into three broad levels :Level I - Quoted prices are available in active markets for identical investments as of
the reporting date . The type of investments in Level I include listed equities
held in the name of the Organization, and exclude listed equities and othersecurities held indirectly through commingled funds .
Level II Pricing inputs, including broker quotes, are generally those other thanexchange quoted prices in active markets, which are either directly or
indirectly observable as of the reporting date, and fair value is determinedthrough the use of models or other 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
the determination of fair value require significant management judgment or
estimation . 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, 2013 and 2012

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
the straight-line method, with the following estimated useful lives :YEARSFurniture and equipment
Display fixtures
Software5-7
7
3

Expenditures for maintenance, repairs, and renewals of minor items are charged to
expense as incurred . Major renewals and improvements are capitalized . Upondisposition, the cost and related accumulated depreciation are removed from theaccounts and the resulting 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 3, 2014, the date
the financial 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, 2013 and 2012
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, 2013 and 2012 are as follows :Fair Value

Level I

Level II

Level III

Measured on a Nonrecurrinq
Basis at December 31, 2013
Donated assets$

61,460 $$60,143 $61,460$60,143$

Measured on a Nonrecurring
Basis at December 31, 2012
Donated assets

Note 4$

RECEIVABLES
License fees receivable
Pledges receivable

2013$

Less allowance for doubtful accounts$

Note 5PROPERTY AND EQUIPMENT
Furniture and equipment
Display fixtures
Software

32,638250

2012$

38,989258

32,88839,247(16,444)(19,624)

16,444$2013

19,6232012$ 1,289,318 $ 1,267,414
720,420
720,420
49,50947,384

Less accumulated depreciation$

2,059,247

2,035,218(2,022,542)(2,013,611)

36,705$

21,607

CITIZENS COMMISSION ON HUMAN RIGHTSNOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2013 and 2012

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 themonthly rent was estimated to be $32,460, which is included in contributions and rent
expenses in the statement of activities .
Included in Due to related party is liability insurance premiums due to CSI under groupinsurance policies obtained and paid for by CSI, in the amount of $93,925 and $76,712 in2013 and 2012, respectively .
Included in printing and promotion is dissemination expenses paid to related parties in theamount of $654,505 and $11,607, in 2013 and 2012, respectively .
Included in contributions from related party is CCHR's operating expenses paid by CSI in
the amount of $57,475 and $18,000, in 2013 and 2012, respectively .

Note 7

CONCENTRATION OF CREDIT RISKCash and cash equivalents include approximately $176,445 in excess of insured limits asof December 31, 2012 . Cash balances did no exceed the FDIC insured limits at
December 31, 2013 .