Excellence In Soccer Annual Report

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1 Excellence In Soccer Annual Report

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3 Table of Contents Cal South Annual Report Annual Report of the President Introduction Membership Numbers About Us Performance Summary Annual Summary On The Field (Summary) Off The Field (Summary) Reports Cal South Directory Cal South Board of Directors Reports President Executive Vice President Vice President of Youth Vice President of Adults Treasurer Secretary District 1 District 2 District 3 District 4 District 5 District 6 District 7 Cal South Committee Chairperson Reports Immediate Past President Cal South National Cup Cal South State Cup Tournament Committee TOPSoccer Committee Finance Committee Protest, Appeals & Disciplinary Committee State Referee Administrator District Risk Management Committee Referee Disciplinary Committee Nominations Committee Cal South Foundation Sponsorship Thank You Audited Financials 3

4 Annual Report of the President To Our Members, Without question, 2010 was a very busy, active and banner year for Cal South. Our member clubs, teams, players, and coaches achieved some major accomplishments this year at many levels. Additionally, your Board of Directors tackled a number of important issues and topics facing the association and our members. On the governance front, the Board worked diligently in revamping the Cal South Bylaws which have been long overdue for a review. The effort began in earnest in May and has been a monthly agenda topic leading up to the AGM. A tremendous amount of work has been invested to create a governing document that provides Cal South and our members a foundation for solid infrastructure to not only manage the technical aspects of our association today, but also provide the adaptive flexibility required to lead us in the future. Our sincere appreciation to all of you who contributed input, thoughts, comments, and questions leading to the final product presented to the membership at our 2011 Annual General Meeting. We also want to acknowledge Mr. Arthur Rieman, of the Law Firm for Nonprofits whose professional assistance guided us throughout the process. In conjunction with the Bylaws effort, this past summer the Board adopted a number of procedural components during the year to compliment the governance process within Cal South. A structure of Policy Bulletins has been incorporated as part of our administrative tool set to provide clarity and guidance around specific issues affecting Cal South and our members. Members can expect the model to play a more significant role in our governance process in the year ahead alongside a concerted effort toward reviewing our rules, regulations, and other operating procedures. In addition to the work related to Governance, the Board embraced a collaborative outreach with our neighboring State Association, Cal North. In July, 2010, the Board hosted a historic joint session with Cal North s Board of Directors, addressing a variety of topics affecting each state association and the soccer community in general. During the session, an agreement to eliminate the need for travel papers for teams traveling to participate in sanctioned tournaments hosted by each state was consummated. Several other topics and key initiatives were identified and will be addressed at a follow on meeting scheduled for the weekend of April 1-2, 2011 at a venue hosted by Cal North. One of the more significant achievements this past year has been the work of our Recreational Task Force (RTF). The RTF was convened in August, 2010 as part of our commitment to address the needs of our Recreational Community and Programs. The RTF was chaired by Mr. Rick Velasco, District 7 Commissioner and was comprised of representatives from each Cal South District. The RTF was tasked with three specific actions: Assist the Board of Directors to fully comprehend the current recreational landscape Identify current issues impacting Recreational Leagues & Programs Provide recommendations to the Cal South Board of Directors to serve, grow, sustain, and strengthen the recreational program and community The RTF worked diligently throughout the latter half of the year, and presented their findings to the Board of Directors in December Among their findings, the RTF submitted thirty three (33) recommendations to the Board in four (4) specified target areas for consideration: Policy (6), Program Development (14), Administration (6), Marketing and Promotion (7). Continued... 4

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6 Annual Report of the President (Continued) The Board began the process of reviewing and prioritizing these recommendations at our January 2011 meeting and will continue to move the effort forward in the months ahead with near, mid, and long term recommendations. This effort will continue to be a priority consideration for the Board, and members can expect additional communiqués regarding its next steps in the early part of On behalf of the Board of Directors, I want to personally acknowledge and thank the members of the Recreational Task Force who dedicated their time and energy to this important activity: Chairman: Rick Velasco District 1: Patti Ghio District 2: Toni De Carlo District 3: Dan Sheppard District 4: Steve Marquez District 5: Darwin Dallas District 6: Danny Moreno District 7: Bruce McAfee Staff Liaison: Luis Salcedo I am convinced your work will be the catalyst to advance the development of our recreational program now, and in the years ahead. Job well done! As many of you know, we adopted a town hall-style concept in January as part of our outreach to members to communicate and discuss a number of topics affecting Cal South. I want to personally thank those of you who participated and encourage everyone to participate in such events in the future. While these sessions have been invaluable as we communicate many of the activities ongoing throughout Cal South, they have also provided an excellent platform from which the Board of Directors have gained insight into many other issues facing each of you within the organization. Additionally, we have received a number of excellent suggestions for consideration in the future, many of which the Board will follow up on in the year ahead. Cal South continues to be an innovator on many fronts. Our Coaching Education, Referee Development and Identification, Sanctioned Tournaments, Risk Management, State Tournaments, and adult and youth programs continue to evolve and set standards for others to follow. Cal South was excited and privileged to play a key role in support of the NCAA Division I Men s College Cup which was held in Santa Barbara and hosted by UCSB. Congratulations to the host for putting on such an outstanding event. Particularly rewarding was seeing so many Cal South members in attendance. Cal South members demonstrated significant support of the event, which should bode well for opportunities to host the Cup again in the future. We are proud of the role we play in serving our members and the soccer community, but realize the real work of developing, growing, and improving the game lies with all of you who have made significant contributions to advancing the cause at the grass roots level. Our compliments to all of you for the great work you do every day. With this in mind, I would like to acknowledge the fantastic accomplishments by our clubs, teams, players, and coaches on the field of play. Cal South was represented during the past year at all levels of competition in both the youth and adult arenas. Congratulations to all our 2010 National Championship winners and finalist: US Youth Soccer National Presidents Cup Girls Under 14 PVSC Exiles Girls Under 16 South Bay Force Continued... 6

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8 Annual Report of the President (Continued) US Youth Soccer National Championship Series Boys Under 15 Finalist Albion White Boys Under 16 Champions Slammers FC Girls Under 17 Champion So Cal Blues Dodge Girls Under 18 Champion Laguna Hills Eclipse US Youth Soccer National ODP Championships Cal South 1994 Boys USASA National Championships U23 Camarillo Eagles (3rd National Championship, 2 Youth & 1 Adult) In closing, I would like to take this opportunity to recognize two individuals who have served our Board for many years and made significant contributions toward advancing the mission of Cal South. Chris Gallup has decided to not seek another term in his role as District 1 Commissioner. During Chris tenure as commissioner, he has been an advocate for District 1 members on the competitive, recreational, and adult player program fronts. He has sought to understand the issues facing his constituency and represent their interests in conjunction with the corporate issues facing the organization. Chris has been a grass roots DC who was not afraid to tackle tough issues within his District. His willingness to share issues in a transparent way has facilitated growth and learning amongst his peers representing Cal South s other districts and within the association. We wish him continued success in all his future endeavors. Finally, Dave De Leon has also decided to not seek another term on the Board of Directors. Dave is one of the Board s longest serving members, serving it in a variety of capacities. Throughout his tenure, Dave has always exuded a passion and love for Cal South that is unyielding. He has been an advocate for Cal South in nearly every program component and has always encouraged us to stretch to become the best we can be. He has represented us in regional and national settings, and served our members with distinction. While we will miss Dave s presence on our governing Board, we are delighted he has accepted the position as Chairman of the Cal South Foundation. We look forward to continuing our working relationship with him and to his leadership and insight in this important role. Yours in Service, Johnnie W. Garza Cal South President 8

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10 Introduction: Cal South s mission is to govern, lead and grow the game of soccer throughout Southern California. Our diverse business segments provide us with the opportunity to add value in all areas by working together and offering quality programs and services to our entire membership and the soccer community at large. In order to successfully manage these areas and stay true to our mission, our leadership is guided by the following 5 principles: Developing the game of soccer Coaching Education Referee Development Providing Opportunities for Player Development Field Development Programs for all ages & skill levels From Beginners to Elite Level Players Youth to Adult Serving Southern California Advocacy for open space & healthy lifestyles National State Association of USYS, USASA and USSF Keeping Members Safe Risk Management programs Insurance Continuing Education Fair Play Respect Accountability In essence, our charge is to grow the game in a responsible way and we approach this with a continual review of our business and with an extremely sharp focus on member service and efficiency. This approach, combined with our financial process which includes monthly reviews and constant knowledge of our financial position within each department ensures that we maintain the proper cost model for success, now and into the future. We will continuously look to increase the level of service provided to our members, increase the investment in membership and player development opportunities and create a positive environment which enables our members to succeed at all levels. 10

11 145,000+ PLAYERS 240+ SANCTIONED LEAGUES, CLUBS & GAMING CIRCUITS 11,000+ TEAMS 22,000+ COACHES & REFEREES 11

12 About Cal South: The California State Soccer Association - South (Cal South) is a 501c(3) California public benefit corporation and is the official youth and adult state soccer association of the United States Soccer Federation, United States Youth Soccer and United States Adult Soccer Association. Cal South represents 11,000+ teams, 240+ Member Leagues and Clubs comprising our membership of more than 145,000+ registered players, 22,000+ coaches, referees and league administrators....we provide rewarding recreational and competitive opportunities for boys, girls, men and women of all ages and skill levels... The organization, with a service area that extends from San Luis Obispo to San Diego, provides rewarding recreational and competitive opportunities for players of all ages, genders and skill levels. Cal South TOPSoccer Program 12

13 PERFORMANCE SUMMARY U23 Camarillo Eagles - USASA National Champions 13

14 Annual Summary When we begin our strategic planning process, we start with our mission, guiding principles and business structure to ensure we remain focused on growing the game in Southern California. This focus and fundamental way of doing business at Cal South has enabled us to substantially grow the game, operate more efficiently and with greater transparency. This past year was no different as we grew our player base at over two percent while maintaining our registration fees in what remains a tough economic downturn for many of our members. Our financial support of member teams regionally and nationally remained strong due to the continued success of both State and National Cup. We renewed our commitment to our recreational base and look forward to carrying out some of the great recommendations of the Recreation Task Force. We also remained aggressive in pursuit of corporate partnerships, the generation of non-fee based revenues and the growth of continuing education through our coaching and referee certification programs. On the governance front, the leadership of our Board embraced the challenge of an exhaustive review and updating of our bylaws which will allow us to lead, govern and grow the association responsibly well into the future. As we continue to evolve our business, we are on a never ending search for four things: Continual improvements in our current operations to operate as efficiently as possible New opportunities in all areas of the organization specifically in the level of services we provide Quality Programming Membership Development Strengthening our membership in all areas of both youth and adult play and providing relevant member benefits and services is the true lifeblood and focus of this association. We have tremendous leadership at the Board and Committee levels of the organization and a talented staff, all of whom work hard to deliver services representative of Excellence in Soccer. Respectfully Submitted, John Weinerth Chief Executive Officer 14

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16 On The Field (Summary) US Youth Soccer National Championships 3 National Champions: BU16 Slammers, GU17 So Cal Blues & GU18 Laguna Hills Eclipse 7 Cal South Teams attend the National Championships Cal South Teams have won 31 National Championships since 2001 (North Texas 18; Maryland 10, Illinois 10 ) US Youth Soccer Far West Regional Championships 33 Cal South Teams attend the Far West Regional Championships Cal South Captures 8 out of 16 Far West Regional Titles US Youth Soccer Presidents Cup Cal South captures 8 of 10 Region IV Presidents Cup Titles 6 Cal South Teams attend Presidents Cup Finals GU14 PVSC Exiles Black & GU16 South Bay Force Blue capture Presidents Cup National Titles US Adult Soccer U23 Championship 2 Cal South Teams attend the USASA U23 Championships Eagles U23 Women s Team wins championship their record 3rd National Championship! Olympic Development Program Cal South captures 5 of 8 ODP Regional Championships Cal South Boys 1994 capture ODP National Championship Cal South ODP Teams have won 16 out of 40 US Youth Soccer ODP National Championships (40%) 57 players placed in Region IV ODP pools (33%) 10 Cal South ODP Players make finalized Fall Semester roster for U17 Men s National Team Residency Program 6 ODP Alumni land spots on the 2010 U.S. World Cup team State & National Cup Tournaments Successful transition to State Cup Governors and Presidents Divisions Referee Development Six Referees named as U.S. Soccer Development Academy Referees of the Week Kyle Kazmer named as USYS Male Young Referee of the Year Membership Sanctioned and sustained governance over 240 leagues, clubs and gaming circuits in the 2009/10 Seasonal Year 16

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18 Off The Field (Summary) 1 of 2 Registration Increased Player Registration by 2.3% setting youth player registration at 136,057 total players (2008/09 132,991; 2007/08 123,581; 2006/07 118,039) 1st year as the new Adult State Association handling all adult administration surpassing approved budget goal of 7,500 players by successfully registering over 8,000 adult players 6th consecutive year without any player registration fee increase 1st full year of Cal South administration of all USSF certification courses, assessments, re-certifications, upgrades, fitness testing and instructor trainings Cal South contributes impressive level of over $350,000 in direct financial support of advancing Cal South Teams for the US Youth National Championship Series, President Cup Regional s & Nationals Series, and the USASA Nationals Executes first year of partnership with United States Soccer Foundation Soccer for Success grant resulting in 1,600 at-risk youth being impacted and registered with Cal South US World Cup Bid Pays out first $50,000 installment of $100,000 donation to the US World Cup Bid education Fulfilled consultancy role for the LA84 Foundation s Coaching Education Budget for 3rd year straight resulting in twelve E courses, two D courses, four Spanish E Courses and four specialty topic courses subsidized for our members Educated the referee community on the KidSafe Program and instituted Risk Management requirements for all 7,728 youth match referees effective June 1, 2010 Soccer Nation Expo Soccer Nation Expo in its 3rd year as a two day show features top name national and international coaches and attracts 16,000 attendees. Also, features $30 VIP Coach Pass with over 350 purchases Social Media Initial foray into social media resulting in 799 followers on Twitter, 833 friends on Face Book, 10,000 total views on the Cal South You Tube channel Cal South Hall of Fame Second Male (Eric Wynalda) & Female Player (Julie Foudy) inducted into the Cal South Hall of Fame Elections Successful election and transition of leadership with new President, Johnnie Garza; 1st time Vice President of Adults, Brett Wood, Vice President of Youth, Roy Carlson, along with the re-election of Secretary, Lila Smith, District 2 Commissioner, John Mullen, District 4 Commissioner, Derek Barraza, and District 6 Commissioner, Ann Shoemake 18

19 Off The Field (Summary) 2 of 2 Formation and orientation of several newly appointed Board Committee s: Personnel Committee: Ken Goldman (Chair), Johnnie Garza, Sue Abadie, Ann Shoemake, John Weinerth Finance Committee: Ken Goldman (Chair), Johnnie Garza, John Mullen, Rick Velasco, John Weinerth Nominations Committee: Ann Shoemake (Chair), John Mullen, Lila Smith Recreation Task Force: Rick Velasco (Chair), Patti Ghio, Toni De Carlo, Dan Sheppard, Steve Marquez, Darwin Dallas, Danny Moreno, Bruce McCaffy, Luis Salcedo (Staff Liason) Release & Transfer Cal South Board of Directors initiates automation of the Release and Transfer process and sets in motion the restructuring of the Cal South Bylaws Sponsors & partners Executed eight year partnership with the National Soccer Coaches Association of America which will result in formation of a Cal South Coaches Association with NSCAA Membership built in at market record rates Promotional partnership established with the UC Santa Barbara Men s College Cup to drive attendance and southern California support of NCAA College Soccer New sponsorships established with two highly recognizable corporate entities including three year deal with Jamba Juice and the Sports Authority agreement which included the coaches gift captain armbands and naming rights for the Cal South State Cup Presidents Summit Successful Presidents Summit at the Cal State Dominguez Hills Loker Student Union with 73 Cal South Member Leagues represented ODP Camps ODP Residential Camps attendance hits 435 campers & Day Camp turnout was 640 for a grand total of 1075 youth impacted by our top-notch ODP staff Cal South Magazine Cal South Soccer Magazine revamped design provides a more professional and cohesive look with greater readability Fields LAUSD Joint Use Partnership: $2 million capital field project completed at the new East Los Angeles Mendez Learning Center High School and ready for mid-fall 2010 programming activation 19

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21 REPORTS 21

22 Cal South Directory Cal South Board of Directors President Johnnie Garza (Cell) Executive Vice President David De Leon Vice President of Youth Roy Carlson Vice President of Adults Brett Wood Treasurer Ken Goldman District 1 (San Diego South / Imperial Counties) Chris Gallup cgallup@calsouth.com District 2 (San Diego County North) John Mullen calsouthdist2@aol.com District 3 (Orange County) Sue Abadie sabadie@calsouth.com District 4 (Los Angeles County) Derek Barraza dbarraza@calsouth.com District 5 (San Bernardino / Riverside Counties) Rick McCown firerick@charter.net District 6 (Kern County & Antelope Valley portion of Los Angeles County) Ann Shoemake calsouthdc6@aol.com District 7 (San Luis Obispo, Santa Barbara & Ventura Counties) Rick Velasco rvelasco@calsouth.com Secretary Lila Smith ext 3034 shaky13@aol.com Cal South Committee Chairpersons Immediate Past President Gregory Falk gregorypfalk@yahoo.com Cal South National Cup Vic Fodor vfodor@socal.rr.com Cal South State Cup Craig Mues csosc@earthlink.net Tournament Committee Frank Sanford fpsanford@sbcglobal.net TOPSoccer Committee Sandy Castillo sandjules@cs.com Finance Committee Ken Goldman kgoldman@mgocpa.com Protest, Appeals & Disciplinary Committee Paul Doty pjdoty@calsouth.com State Referee Administrator George Noujaim gnoujaim@calsouth.com Risk Management Committee Lila Smith ext 3034 lsmith@calsouth.com Referee Disciplinary Committee Paul Doty pjdoty@calsouth.com Nominations Committee Ann Shoemake calsouthdc6@aol.com Cal SOuth Foundation David De Leon dkkdeleon@yahoo.com 22

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24 Reports Cal South Board of Directors Cal South President Johnnie Garza Please see report on page 4. Cal South Executive Vice President David De Leon This will be my final report serving as your Executive Vice President. Over the last eight years, I worked with my colleagues to strengthen the Cal South brand by improving programs that has increased membership and improve opportunities for players. This effort has made Cal South the top youth organization in the country. We have grown from the early years of 106,000 to 145,000 youth players, 8,000 referees, 10,000 adult players, 20,000 coaches and administrators. We have had a long history of national championships and can boast that 40% of the Men s and Women s National Team Players come from Cal South. My hope is that my contribution to Cal South can continue to help the organization prosper. Before I submit my final report I would like to thank Rod Short for encouraging me to run for office and Gregg Falk for allowing me the opportunity to engage in new ideas and territories. I d especially like to thank the 2010 Board of Directors for their continued support. I would be remiss if I did not thank my good friend and colleague Mick Dawson who passed away several years ago. He had a wit about him that made our Board of Director meetings go faster. My report is as follows: During 2010, Cal South became fully engaged with the Adult program. We met with numerous cities to discuss increasing youth and adult programs. The Board of Directors updated the bylaws. Following my decision not to run for re-election, the Board of Directors appointed me as the President of the Cal South Field Foundation. I have spent the last few months working with the Foundation Board of Directors, and will be releasing a new structure at Soccer Nation Expo. Thank you very much for your continued support and allowing me the opportunity to serve you. David De Leon Cal South Executive Vice President Cal South VICE President OF YOUTH Roy Carlson rcarlson@calsouth.com Welcome to Soccer Nation Expo, Cal South s annual celebration of soccer and all of our membership who make Cal South teams the best in the nation. Although I only joined the Cal South Board of Directors in June of this year, my involvement with youth soccer began in 1982 when I started coaching a U8 girls team. 24

25 Reports (Continued) I have seen a tremendous growth in youth soccer over the years, and look forward to being a part of an organization that is leading the way in developing not only our best and brightest players, but also those just looking to have fun. My first months on the Board have been very busy. Immediately upon my return from South Africa (where I attended my fifth World Cup in a row), we had a joint meeting with the Board of Cal North which was very productive and generated many ideas towards facilitating easier competition opportunities between the two associations. We look forward to a return meeting with Cal North later this spring. Then I attended my first annual general meeting of US Youth Soccer held in conjunction with the US Youth Soccer National Championship Series in Overland Park, Kansas. I was very proud to watch outstanding and entertaining soccer by BU16 champion Slammers FC, GU17 champion So Cal Blues Dodge, GU18 champion Laguna Hills Eclipse Select and BU15 finalist Albion White. Another highlight was watching the Eagles win their third national championship by winning the USASA National Women s U23 Cup. Cal South was also represented in Overland Park by some outstanding young referees. However, these weren t the only championships won by Cal South teams. The GU14 PVSC Exiles Black and U16-Girls South Bay Force Blue both won championships in the US Youth Soccer National Presidents Cup in Murfreesboro, Tennessee and the Cal South 1994 Boys won an ODP National Championship. These accomplishments are a tribute to all of you as our members. In my role as Vice President, I am responsible for promoting the interest of youth soccer within Cal South, both competitive and recreational. I got my start in recreational soccer and I believe that the success of our competitive teams is built on the solid foundation provided by vibrant recreational programs. During 2010, Cal South President Johnnie Garza commissioned the Recreational Task Force Committee to ensure that our recreational membership is properly served. The committee devoted many hours to understanding the current recreational landscape, identifying the issues currently facing our recreational leagues and providing recommendations to the Cal South Board for the purpose of providing the recreational leagues with the necessary tools and ideas to strengthen our recreational programs. The committee, chaired by District 7 Commissioner Rick Velasco, made dozens of recommendations to the Board for consideration in the short term, mid-term and long-term. I look forward to working with the Board, the committee and our membership in refining these recommendations and growing the recreational programs which are the future of all soccer from our competitive teams to our national teams. In order to keep pace with our superb teams, during 2010, the Board undertook an extensive review and revision of our bylaws, the set of legal rules under which Cal South operates. Hopefully all of your questions about the revisions were answered in the series of town hall-style meetings the Board hosted in each of the seven districts and you will vote in favor of the revised Bylaws at the annual general meeting. But that is just the start of our task in reviewing all of our procedures and rules under which we operate. Continued... 25

26 Reports During 2011 we will be soliciting your assistance and input on a review and revision of our Rules and Regulations which govern such things as registration procedures, player release and transfer, rules of play, player safety, playing field conditions, club approval, league approval, tournament approval and a host of others aimed at playing the game we love. I plan to be deeply involved in this effort and will look to all of you for guidance in keeping Cal South the premier soccer organization in the country. Roy Carlson Cal South Vice President of Youth Cal South VICE President OF Adults Brett Wood calsouthbrett@msn.com No written report submitted. Cal South Treasurer Ken Goldman kgoldman@mgocpa.com I appreciate this opportunity to report to you, Cal South s membership, about the financial affairs of Cal South. During this past 2009/2010 fiscal year, Cal South s accounting department, under the direction of office manager Adrian Marquez and bookkeeper Rebecca Nelson, is operating smoothly and efficiently. The accounting department is currently adequately staffed and is performing within acceptable parameters. During the year, the Finance Committee has expanded by adding two new members John Mullen (District 2 Commissioner) and Rick Velasco (District 7 Commissioner). They join existing members, Johnnie Garza (President), John Weinerth (Chief Executive Officer) and me (Treasurer) to constitute Cal South s newly-constituted five-member Finance Committee. The Committee has met during the past year and continues to monitor the financial affairs and well-being of Cal South. For the 2009/2010, Cal South s revenues and expenses in the approximate amount of $6,400,000 were roughly equal, resulting in a break-even. Thus Cal South was operating in compliance with our balanced budget. This result was achieved in spite of the soft economic climate in Southern California and rising costs associated with field rental, travel and strong support of all existing programs. While operating within a balanced budget, Cal South was able to provide support to all of our teams attending Regional and National competitions in amounts exceeding $350,000. Overall, Cal South was prepared for these circumstances, and continued to maintain adequate investment reserves. Such investment reserves, in fact, exceed $1,200,000 at January 31, The Finance Committee has determined that the magnitude of these reserves are adequate and necessary, considering the growth in Cal South s membership, programs, anticipated operations, and Cal South s adult and referee initiatives. Our budgeting process has been in effect for six years, and is now a streamlined and efficient process. The process continues to enable the Board and senior management to assess financial accountability at all levels of operation. At the Board of Directors

27 Reports meeting in September, the Board approved Cal South s budget for the 2010/2011 fiscal year the earliest date a budget has been approved in recent memory. This budget was balanced and was the largest budget in Cal South history, exceeding $6,500,000. Thanks go to John Weinerth, his staff, and my fellow Finance Committee members for their hard work in getting such an important and complex task done efficiently and timely. In summary, despite the current economic climate, Cal South continues to maintain a strong financial condition, with transparency to its financial affairs, and with adequate reserves to both operate its programs and fund its future plans. Respectfully submitted, Kenneth L. Goldman, C.P.A. Cal South Treasurer Cal South Secretary Lila Smith shaky13@aol.com ext 3034 I would like to thank all the member clubs, leagues, players and parents for making Cal South such a great organization. Without you, the Board would not have been able to accomplish so much this year. The revision of the bylaws was an endeavor that took many hours but was something that was needed. I would like to thank John Weinerth for all the hours he spent making sure that the bylaws were brought up to non-profit standards. Thanks to Lucinda Williams, our new secretariat, who has allowed me to be more involved in the Board activities during the meetings. Many changes took place this year within Cal South. The Board was kept busy with all of the positive items, we had a meeting with Cal North and were able to meet and get some positive feedback from them. We will be having a second meeting in Cal North in 2011 to follow up with some of the items we both felt were important for the growth of our organizations. I would like to thank the Board for all of their support after I broke my leg in August. I am looking forward to a busy and productive Sincerely, Lila Smith Cal South Secretary

28 Reports Cal South District 1 Commissioner Chris Gallup cgallup@calsouth.com has been an exciting and busy year for Cal South. In February, we held Soccer Nation Expo and our AGM, where we saw the election of Johnnie Garza as our new President. The Cal South staff did another excellent job putting together the biggest and best soccer expo in the world. State Cup and National Cup led to 3 new Cal South National Champions. This can t be done without the coaches and volunteers that teach our children the biggest game in the world. The Board tackled the review and revision of the Bylaws. It had been over ten years since this had been done. The next task is to review the Cal South Rules and Regulations. Having just finished another season of league play, it is exciting to see the growth of our players since last year. Now we are at Soccer Nation Expo 2011 and our next AGM. The games continue and the opportunity for more National Champions lies before us. It has been a privilege to serve as District 1 Commissioner the past 6 years. I didn t know a lot about the competitive side coming into this office, because I was from a recreational league. The next District 1 Commissioner, Mark Flahan, will come in with a more balanced background and knowledge about what is currently happening in Cal South. Thank you for the experience and I hope to serve Cal South more in the future. Chris Gallup Cal South District 1 Commissioner Cal South District 2 Commissioner John Mullen calsouthdist2@aol.com District 2 enjoyed significant growth in the number of registered players for the 2010/2011 season, with an over 5% increase, bringing the total enrollment to just over 16,000 players. We also added one new club, San Elijo Hills, which not only plays soccer, but also helps the kids of the area play other sports. San Elijo also provides after-school programs for children as well. The club is located in the San Elijo Hills area, which has been primarily served by AYSO in the past. As I did last year, I would also like to commend Encinitas Soccer for their continuing support of the Los Angelitos program, which not only provides financially disadvantaged kids the opportunity to play soccer, but conducts after school programs as well. Since I am already repeating myself, I would once again like to thank the Escondido Soccer Club for hosting another successful Commissioner s Cup, the District 2 tournament for recreational teams. We had over 90 teams participate this year, and in addition to soccer, we also had an inflatable fun zone in between the fields. Apparently kids don t get tired enough playing soccer, so this allowed them to run, jump, slide and bounce to their heart s content during the first day of the tournament.

29 Reports I appreciate all the hard work and effort put into the Commissioner s Cup by Escondido Soccer. John Mullen Cal South District 2 Commissioner Cal South District 3 Commissioner Sue Abadie sabadie@calsouth.com To start out this year, I would like to say thank you to all the leagues that have gone above and beyond to keep the kids playing and enjoying themselves. When you think that Orange County has over 20,000 players that participate in our competitive and recreational leagues, that is a big job. My hat goes off to all of you. Since I did not hear from many of you, I assume that most of the leagues have done well and are looking forward to a good season. I am hoping I will be able to help some of our leagues grow the recreational part of our program and I would like to hear your thoughts for this upcoming season on how we can help. Our adult program is doing well and we are hoping that it will keep growing and that we can make it an environment that will be attractive to all the clubs in our area. I would like to thank President Johnnie Garza for looking forward and showing us some new ideas on where he would like to see us grow and prosper and help our clubs and their teams and players. It have been a privilege to work with the Cal South Board and I would like to thank each and everyone of them for their work at keeping Cal South in the front of the line in the soccer community. Thanks to everyone for their time and participation. Without it we would not have been successful. Sue Abadie Cal South District 3 Commissioner Cal South District 4 Commissioner Derek Barraza dbarraza@calsouth.com Dear Cal South Members: Since my last report, many families in our association have continued to experience economic challenges. District 4 is no exception. Our goal continues to be to offer high-quality programs serving the needs of our members while keeping fundamental costs affordable. During our 2010 District 4 meeting, several initiatives were identified and discussed. As we move forward, I will continue to pursue these initiatives: Fields Availability of quality soccer fields continues to be a challenge. The intent of this initiative is to connect resources with opportunities and needs. Whether the opportunity Continued...

30 Reports is for developing a multi-field complex, adding field lighting or other improvements to existing fields, or working with school district or municipal authorities, we will work with our members to help increase the availability of quality soccer fields. Cal South Infrastructure Working with the Cal South BOD to support a comprehensive review to further refine and strengthen the Cal South member support infrastructure. Improve accessibility, responsiveness, and thoroughness for our members. Provide access to information that is accurate, timely, and foremost, authoritative. The areas targeted for review include, but are not limited to: Risk Management Internet-based Tools CalSouth.com, CORIS Coaching Curriculum Coaching Community developed Code of Ethics Referee Program Support for Soccer Programs Recreational, Signature, Top Soccer, Competitive Grass-roots development of Adult teams and programs within existing Youth and Adult Clubs By-Laws, Rules & Regulations Simplification where possible; Creation of templates for Affiliate members Support for Affiliate members to obtain and sustain their Non-Profit, Tax Exempt Corporate Status The review will result in actionable recommendations. The recommendations will be prioritized, set to timeline, budgeted (if necessary), and tracked to completion. Acknowledgements I would like to acknowledge the fine support and hard work of the follow people: District 4 Staff Our superb team of assistant DCs: Cyndi Dempster, Gary Emerson, Val Silveri, and Sylvia Holborn provide outstanding service to our membership. Their contribution to Cal South helps get the players on the field. Corporate Office Our hard working staff at the Corporate Office keep our operations running smoothly so our members can keep the ball rolling on the field. Leagues & Clubs Our club and league leaders are truly the experts. Cal South is stronger because of their efforts. We are fortunate to have the support of our many administrators, coaches, and volunteers dedicating their valuable time to provide the best experience possible for our membership. District Honorees Mike Herman, Compton United SC Mike continues to do an outstanding job serving the needs of the community. The Compton United SC program serves dozens of Compton area youth teaching valuable life lessons through the sport of soccer.

31 Reports Sharon Kornfield, Galaxy Alliance SC Sharon has provided years of outstanding service to the South Bay area Galaxy Alliance SC. Providing both registration services and club leadership, Sharon is a fine example of leadership in her community. Please join me in congratulating the 2010 District 4 Honorees! I look forward to working with you in the coming year and for a successful season. Yours in Soccer, Derek Barraza Cal South District 4 Commissioner Cal South District 5 Commissioner Rick McCown firerick@charter.net District 5 had a great year. Our youth player numbers increased by a little over 1,000, in comparison to last year s slight decrease. We lost 2 leagues but gained 2 other new ones, so we still have 43 leagues. The Corinthians joined with the Pumas to become Alliance in San Bernardino. Arsenal South came up with 15 new recreational teams and even participated in our Commissioner s/presidents Cup. The biggest change was Arsenal s losing the John Blanche field in Temecula. However, they bought 204 acres and are naming the area Galway Downs. I m told if all the paperwork is completed, it should be ready for play by June We had Temecula and Horsethief Canyon support Cal South by displaying our logo on their uniforms. District 5 is still the leader for recreational player numbers with 13,500 and 8,500 club players. We provided our recreational leagues the opportunity to play in outstanding tournaments at the end of the fall season, such as Open/Commissioner s/presidents Cup and the Tournament of Champions. These tournaments are run by the best volunteers working for Cal South: John and Cindy Quan, Louie and Lisa De La Cruz, and Mike Schaffer. On the same note, I would like to say thank you to our hosting leagues for these great tournaments: Temecula (Hawks), Yucaipa and Palm Desert. This is the second year that District 5 honored an outstanding coach and referee at the Tournament of Champions, and for next year, the League of Excellence award will be presented. Also for the second year, mentor instructors were used at Presidents Cup for the All-Star coaches. On the club side, congratulations go out to So Cal Rush U17 s coed for winning State Cup, winning Regional and coming in as finalist at Nationals. Also, congratulations to Arsenal Girls U13 team for winning National Cup and their U12 team for winning State Cup. Rick McCown Cal South District 5 Commissioner

32 Reports Cal South District 6 Commissioner Ann Shoemake calsouthdc6@aol.com District Honorees Hugo Estrada Angie Estrada It s my pleasure to honor Hugo Estrada, President and Angie Estrada, Registrar for the Antelope Valley Soccer Club (also known as the Ambush ) as the 2011 District 6 honorees. Hugo also serves as the District 6 State Cup Representative as well as giving numerous hours on the field as a coach. Both Hugo and Angie have been very instrumental in the structure of their league on and off the field. Thank you Hugo and Angie for your dedication to Cal South s Youth Soccer Program. Ann Shoemake Cal South District 6 Commissioner Cal South District 7 Commissioner Rick Velasco rvelasco@calsouth.com Once again, 2010 has been a great and productive year for Cal South and District 7. We had several major events and significant changes in administration, Coaching Education, the State Referee Association, Parental Education and a significant growth in the TOPSoccer Program. These are positive changes that will affect our environment and development for the years to come. My thanks to Mr. John Weinerth and his staff for their continuous support. At the board meeting on Saturday, December 11, 2010, the Cal South Board of Directors finalized what has been a seven-month comprehensive review of the organization s bylaws in an effort to ensure that Cal South, under its status as a non-profit 501 (3) corporation, is operating fully in accordance with the current California Corporations Code. The bylaws of an organization are a critical governing document intended to outline an organization s basic structure, voting rights, the powers of its directors, and most importantly, what comprises membership within that organization. It was time for an exhaustive review. There have been new revisions to the Corporations Code and we wanted to ensure that our legal counsel did a full review, stated Cal South President Johnnie Garza. Outside of the legal aspects, there were other elements we wanted to take a closer look at as well. We are a membership-based organization, and we wanted that to be clearly established very early on in the document. People want to know who our members are, how you become a member, and who gets to vote. We have outlined that with much greater clarity within our revisions, and we think it will be a welcome change.

33 Reports This year we also saw the formation of the Cal South Recreational Task Force. It was a privilege for me to be nominated Chair of this committee. The Cal South Recreational Task Force Team (RTF) was put together in an effort to provide feedback from member leagues and clubs that have a recreational focus. The RTF was made up of volunteers who were appointed by their District Commissioners to represent the recreational leagues and players within their respective districts. A key part of the committee s duties was to facilitate communication between the organization of Cal South and its recreational members. The RTF was engaged and solicited recreational member feedback through participation in a satisfaction survey and other statistical tools. Through these efforts, the RTF provided the Cal South Board of Directors with a set of prioritized recommendations. These recommendations will have a great impact and will establish a road map to improve the recreational arena. This will provide a more robust foundation of Cal South benefits and services for our recreational membership. The RTF recommendations will offer an additional avenue of engagement for recreational members not only strategically, but also operationally by providing additional tools to help them meet their goals. I would like to thank the RTF Committee members for their time, commitment and dedication. I would like to thank Mr. David De Leon, Cal South Executive Vice President, for his eight (8) years of service to Cal South BOD. His knowledge and leadership will be greatly missed. I would also like to thank our outgoing District 1 District Commissioner, Mr. Chris Gallup, for his Cal South services. I would like to thank you for electing me for another term as your District 7 Commissioner. As your District Commissioner, I will continue to ensure that District 7 is well represented and that all your concerns and problems are resolved in a timely manner. Challenging scenarios require challenging decisions, and your patience and support is truly appreciated. My great thanks to my Assistant District Commissioner, Ms. Christie Paulson, for her continued support and dedication to Cal South. Congratulations to our entire district Champions and finalist. Congratulations to our District 7 honorees for , Mr. Howard Fink, President of West Valley Soccer League and Ms. Karen Sweeny of Estero Bay Youth Soccer. Once again, I would like to commend the Cal South Staff, PAD and all staff committees for their professionalism, dedication and commitment to Cal South and our game. In closing, I would like to leave with this thought: Commitment is not an emotion; it is a character quality that enables us to reach our goals (unknown) Best regards. Please make sure to visit the Cal South District 7 web site, under Our Board of Directors menu and click on District 7 ( South.com/en/district-7/) to keep up-to-date on District and Cal South informational news. Hoping to see you at the District 7 informational meetings and the Cal South AGM. Rick Velasco Cal South District 7 Commissioner

34 Reports Cal South Committee Reports Cal South TOPSoccer Committee Sandy Castillo TOPSoccer in Cal South continues to impact players of all levels of competition. Our festivals and TOPSoccer Day are a big part of our outreach to the soccer communities, and attendance of TOPSoccer players and volunteers increases each year. This coming year, I am looking for programs in our other districts willing to host these events to introduce new players to TOPSoccer. Orcutt Youth Soccer (District 7) hosted the US Youth Soccer TOPSoccer Coaching Course and Buddy Training in May, with Murrieta Youth Soccer(District 5) also providing the course in August. This course is available to any league/club with existing and/or new programs. The Cal South TOPSoccer Coaches Workshop will be held on April 2-3, Existing and new program coaches and administrators will be invited to attend. The TOPSoccer Coaching Course will be offered along with hands-on training with TOPSoccer players. Additional topics will include Risk Management as it relates to players with disabilities, Picture Exchange Communication (PEC) training and Behavior Modification. Buddy training will also be included. The Marketing Department has helped develop some new tools for the TOPSoccer program. They created a new Cal South-specific Parent Guide. This replaces the US Youth Parent Guide. The new guide has information that is specific to our programs. A Coaches Activity Flip book and the accompanying Coaches Guide will be completed by the end of March. The next project which is being discussed is a PEC book to be used in conjunction with these two items. These tools will assist our coaches in working with our players and allow coaches to be more comfortable and confident on the field. Congratulations to Craig Lepire and Mike Conway for their selection as Cal South TOPSoccer Buddies of the Year. They both dedicate many hours to insuring the success of TOPSoccer as well as the safety of the players. Karen Sparks is the recipient of the TOPSoccer Angel Award. Ms. Sparks has supported TOPSoccer and many of our events. I would like to thank the Cal South BOD and Cal South office staff for the support. I would also like to thank the many volunteer coaches, administrators, and buddies who dedicate countless hours to provide soccer opportunities to the players with special needs. Without you, our TOPSoccer players would not have the opportunity to prove that Cal South is truly a place of Excellence in Soccer. Sandy Castillo Cal South TOPSoccer Committee 34

35 Reports (Continued) State Referee Administrator George Noujaim A new Indoor Administrative Directorship was added to address the growth in Indoor Soccer and Beach Soccer. An active campaign to meet the June 1 Risk Management requirement for referees was conducted and met. Referee Association eligibility requirements were defined and implemented. Five new State Referee Assessors were added. Four referees were selected to officiate in the USASA Region IV U23 finals in Sacramento. Youth Mentoring Program The Youth mentor program was very active with over 40 mentor referees participating in the State and National Cups. The Youth Referee Development Program is quickly becoming a benchmark for referee development in the United States. State Director of Assignors An Assignors Clinic was reintroduced in 2010 to ensure that the latest techniques and philosophies were made available. Indoor/Beach Soccer Program Beach Soccer Referee and Futsal (Indoor Soccer) refereeing training was initiated. The Nike Cup in Torrance was supported. State Youth Referee Administrator Youth referees supported the Far West Regionals, Presidents Cup, Girls ODP Camp and Boys ODP Camp. State Director of Instruction FIFA Referees Baldomero Toledo, Richard Salazar and Fabio Tovar were guest speakers at the Soccer Nation Expo Referee training. They made an interactive presentation where referees discussed the range of calls for given situations. A major expansion in Spanish referee and instructor training continued to be targeted. Cal South supported the Referee Training (RTS) for FIFA Referees, National Referees, National Referee Candidates. The Advanced Referee Development Program (ARDP) continued at four venues. State Director of Assessment The online assessment request was initiated and continues to grow. Kelly Mock, Ed Kirshner, Ali Hacock (who was also promoted on July 14 to a full National Assessor) and Arturo Angeles were selected to be the assessors for the Academy finals at the Home Depot Center from July 10 to July 17. George Noujaim State Referee Administrator 35

36 Reports Risk Management Committee Lila Smith ext 3034 I would like to thank the office staff for all of their help this year, especially Lisa Wolfs who keep the RM department running on a daily basis. Thanks also to Danielle Bryant, who kept the Referee RM database up to date was a very busy year as we added referees to the required RM list. Thank you to all of the referee associations that embraced the requirement and had Live Scan available at their meetings. I would like to thank the referees for their patience and time in getting the requirement taken care of. We have a large number of Live Scans done each year. There was a lot of time spent getting the Risk Management department caught up as we have quite a few approved persons who do not appear in the CORIS database. A big thanks to Paul Doty for assisting with the appeal process as I would not be able to do it without him. I would also like to thank Dave De Leon for all of his help in the RM department. He will be greatly missed. Thanks, Lila Smith Risk Management Committee 36

37 37

38 Cal South Thanks Official Sponsors Partners Strategic Partners Field Foundation Affiliates 38

39 FINANCIAL REPORTS Audited Financial Statements. 39

40 40

41 California State Soccer Association South Audited Financial Statements and Supplementary Financial Information Years ended August 31, 2010 and 2009 With Report of Independent Auditors 41

42 California State Soccer Association South Table of Contents PAGE REPORT OF INDEPENDENT AUDITORS 43 FINANCIAL STATEMENTS Statements of Financial Position Statements of Activities Statements of Cash Flows Notes to Financial Statements SUPPLEMENTARY INFORMATION Schedules of Functional Expenses August 31, 2010 August 31,

43 Report of Independent Auditors Board of Directors California State Soccer Association South We have audited the accompanying statements of financial position of California State Soccer Association South (a nonprofit organization) as of August 31, 2010 and 2009 and the related statements of activities and cash flows for the years then ended. These financial statements are the responsibility of California State Soccer Association South s management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of California State Soccer Association South s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of California State Soccer Association South as of August 31, 2010 and 2009 and the changes in its net assets and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America. Our audits were performed for the purpose of forming an opinion on the basic financial statements of California State Soccer Association South taken as a whole. The schedules of functional expenses are presented for purposes of additional analyses and are not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. Los Angeles, California March 11,

44 California State Soccer Association South Statements of Financial Position ASSETS August Cash and cash equivalents $ 914,001 $ 702,286 Receivables, net 316, ,304 Investments 636, ,919 Inventories 23,374 9,934 Prepaid expenses 92,941 72,878 Property and equipment - net 538, ,452 Total assets $ 2,522,465 $ 2,348,773 LIABILITIES AND NET ASSETS Accounts payable and accrued expenses $ 365,836 $ 212,569 Unearned revenues 749, ,510 Total liabilities 1,114, ,079 Net assets Unrestricted 1,407,482 1,389,694 Total liabilities and net assets $ 2,522,465 $ 2,348,773 See notes to financial statements. 44

45 California State Soccer Association South Statements of Activities Years ended August Changes in unrestricted net assets Revenues, gains and other support: Players' registration $ 2,510,340 $ 2,371,009 Fees, camps and tournaments 2,324,914 2,248,567 Coaching education 314, ,313 Advertising, sponsorship and publications 491, ,160 Referee program 436, ,506 Soccer nation and promotions 238, ,138 Far West Regional host - 55,852 Investment income 45,838 12,033 Risk management fees 9,068 3,604 Other 77,905 48,022 Total unrestricted revenues, gains and other support 6,448,887 5,729,204 Expenses Program services: Member services 1,412,291 1,335,858 State cup 1,114, ,073 Olympic development program 456, ,331 Camps 303, ,919 Coaching education 228, ,705 Soccer nation 169, ,886 Referee program 299, ,337 Far West Regional host - 96,542 Adult 131,429 74,735 Risk management 33,049 39,061 Topsoccer 10,290 14,339 Others 583, ,644 Total program services 4,742,861 4,185,430 Support services: General and administrative 1,104, ,430 Publication 347, ,317 Fundraising 235, ,104 Total support services 1,688,238 1,440,851 Total expenses 6,431,099 5,626,281 Change in net assets 17, ,923 Net assets Beginning of year 1,389,694 1,286,771 End of year $ 1,407,482 $ 1,389,694 See notes to financial statements. 45

46 California State Soccer Association South Statements of Cash Flows Years ended August Cash flows from operating activities Change in net assets $ 17,788 $ 102,923 Adjustments to reconcile change in net assets to net cash provided by operating activities: Depreciation and amortization 19,988 17,489 Change in fair value of investments (26,726) 228,051 Change in allowance for doubtful accounts (3,338) 16,000 Decrease (increase) in assets: Receivables 168,110 (234,975) Inventories (13,440) (5,551) Prepaid expenses (20,063) 61,004 Increase (decrease) in liabilities: Accounts payable and accrued expenses 153,267 (26,328) Unearned revenues 2, ,047 Net cash provided by operating activities 298, ,660 Cash flows from investing activities Purchase of property and equipment (13,285) (4,926) Sale of investments 130, ,536 Purchase of investments (203,223) (403,009) Net cash (used in) provided by investing activities (86,508) 73,601 Net change in cash and cash equivalents 211, ,261 Cash and cash equivalents at beginning of year 702, ,025 Cash and cash equivalents at end of year $ 914,001 $ 702,286 See notes to financial statements. 46

47 California State Soccer Association South Notes to Financial Statements Years ended August 31, 2010 and 2009 NOTE 1 ORGANIZATION PROFILE The California State Soccer Association South (Cal South) is a not-for-profit corporation organized under the laws of the State of California. The Association was originally incorporated as California Youth Soccer Association South. On June 5, 2010, pursuant to a resolution of the Board of Directors, the Association changed its name from California Youth Soccer Association South to California State Soccer Association South. Cal South s primary purpose is to promote and provide nonprofit, public educational soccer programs and amateur competitions. Cal South is an affiliated branch of, and operates under the authority of, the United States Soccer Federation (USSF), the United States Youth Soccer Association (USYSA) and the United States Adult Soccer Association (USASA). On March 14, 2009, the U.S. Soccer Federation National Council formally admitted Cal South into full membership as the adult state association for Southern California. The net effect of this was that the organization is now recognized as a joint state association, responsible for administrating both youth and adult programs. NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Accounting The financial statements of Cal South have been prepared on the accrual basis of accounting. Basis of Presentation Financial statement presentation follows the recommendations of Accounting Standards Codification (ASC) Topic 958, Not-for-Profit Entities. Cal South is required to report information regarding its financial position and activities according to three classes of net assets: unrestricted net assets, temporarily restricted net assets and permanently restricted net assets. As of August 31, 2010 and 2009, Cal South has no temporary or permanently restricted net assets. Cash and Cash Equivalents Cal South considers highly liquid investments with original maturity of three months or less to be cash equivalents. Investments Investments are stated at fair value. Total investment income includes interest, dividend and change in fair value of investments. Financial Instruments All financial instruments are carried at amounts that approximate fair value. Inventories Inventories consist of educational materials for camps, coaching and referee programs. Inventories included in the financial statements are stated at the lower of cost (determined by using the first-in, first-out method) or market. 47

48 California State Soccer Association South Notes to Financial Statements Years ended August 31, 2010 and 2009 NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Fair Value Measurements Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. The Organization reports its assets and liabilities that are measured at fair value using a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. This hierarchy maximizes the use of observable inputs and minimizes the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows: Level 1 Level 2 Level 3 Quoted prices in active markets for identical assets or liabilities. Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. An asset s or liability s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. At each reporting period, a detailed analysis is performed of the Organization s assets and liabilities that are measured at fair value. All assets and liabilities for which the fair value measurement is based on significant unobservable inputs or instruments which trade infrequently and therefore have little or no price transparency are classified as Level 3. The Organization s financial instruments include primarily cash and cash equivalents and receivables, and accounts payable and accrued liabilities. Due to the short-term nature of the cash, receivables, accounts payable and accrued liabilities, the carrying amounts of these assets and liabilities approximate their fair value. Property and Equipment Property and equipment are stated at cost or, if donated, at fair value at date of donation. Provision for depreciation and amortization is computed using the straightline method over the estimated useful lives of the properties, as follows: Registration software Equipment and furniture Building improvements Building 3 years 3-7 years 39 years 39 years 48

49 California State Soccer Association South Notes to Financial Statements Years ended August 31, 2010 and 2009 NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Impairment of Long-lived Assets Cal South reviews the carrying values of its long-lived assets for possible impairment annually, or more frequently whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. The measurement of possible impairment is based primarily on the undiscounted future operating cash flows without interest charges generated through the use of these assets during their remaining estimated useful life. The assessed recoverability of long-lived assets will be impacted if estimated future operating cash flows are not achieved. Based upon its most recent analyses, Cal South believes that there was no impairment of the carrying value of its long-lived assets as at and during the years ended August 31, 2010 and Unrestricted Net Assets Contributions and allocations, the uses of which are not restricted by donors or grantors, are recorded in unrestricted net assets. Revenue Recognition/Unearned Revenues Revenue from player registration fees, camps and tournaments are recorded on the accrual basis. Fees received in advance for future registration and sponsorship is considered unearned until the applicable year. Donated Services A significant portion of Cal South s programs are conducted by unpaid volunteers and committees. The value of this contributed time is not reflected in the accompanying financial statements because the volunteers time does not meet the criteria for recognition under Financial Accounting Standards Board Accounting Standards Codification (ASC) Section , Accounting for Contributions Received and Contributions Made. Functional Allocation of Expenses The costs of providing Cal South s various programs and other activities have been summarized on their functional basis. Accordingly, certain costs have been allocated among the programs and supporting services benefited by the expenditure. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and 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 those estimates. 49

50 California State Soccer Association South Notes to Financial Statements Years ended August 31, 2010 and 2009 NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Income Taxes Cal South is a not-for-profit corporation exempt from the payment of income taxes under Internal Revenue Code Section 501(c)(3) and California Revenue and Taxation Code Section 23701(d). Accordingly, no provision has been made for income taxes. However, Cal South is subject to income taxes on any net income that is derived from a trade or business not in furtherance of the purposes for which it was granted exemption. No income tax provision has been recorded as the net income, if any, from any unrelated trade or business in the opinion of management, is not material to the financial statements taken as a whole. In 2009, Cal South adopted Financial Accounting Standards Board Accounting Standards Codification (ASC) Section , which clarifies the accounting for uncertainty in income taxes. ASC Section prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC Section requires that an organization recognize in the financial statements the impact of the tax position if that position will more likely than not be sustained on audit, based on the technical merits of the position. As of and for the years ended August 31, 2010 and 2009, Cal South had no material unrecognized tax benefits, tax penalties or interest. NOTE 3 RECEIVABLES Receivables at August 31 consist of: National games $ 106,062 $ 202,539 Sponsorship 20, ,921 Grant - 34,531 Registration 101,604 76,859 Olympic development program 34,640 22,590 Referee fees/certifications 10,620 9,874 Others 56,268 49, , ,304 Less allowance for doubtful accounts 12,662 16,000 $ 316,532 $ 481,304 50

51 California State Soccer Association South Notes to Financial Statements Years ended August 31, 2010 and 2009 NOTE 4 INVESTMENTS Investments at August 31 consist of: Fixed income Corporate bonds $ - $ 73,982 US treasury securities 100,906 - Mutual funds Equities 239, ,880 Fixed income 296, ,057 $ 636,868 $ 536,919 Cal South s investments in equities and fixed income securities were accounted for at fair value and were measured using Level 1 inputs which are the quoted market prices available in active markets. NOTE 5 PROPERTY AND EQUIPMENT Property and equipment at August 31 consist of: Land $ 148,500 $ 148,500 Building 294, ,398 Building improvements 216, ,511 Furniture and equipment 47,574 34,289 Registration software 90,000 90, , ,698 Less accumulated depreciation and amortization 258, ,246 $ 538,749 $ 545,452 Provision for depreciation and amortization expense during the years ended August 31, 2010 and 2009 amounted to $19,988 and $17,489, respectively. NOTE 6 UNEARNED REVENUES Unearned revenues consist of payments received for future player registration and sponsorship. As of August 31, 2010 and 2009, unearned revenue amounted to $749,147 and $746,510 respectively. 51

52 California State Soccer Association South Notes to Financial Statements Years ended August 31, 2010 and 2009 NOTE 7 COMMITMENTS Cal South leases certain equipment under various operating lease agreements expiring through March Total lease expense for the years ended August 31, 2010 and 2009 amounted to $21,733 and $29,268, respectively. Future minimum lease payments under these non-cancelable leases at August 31 are as follows: Year ending August 31 Amount 2011 $ 14, , , Total $ 3,420 27,515 NOTE 8 RELATED PARTY TRANSACTIONS Cal South established the Cal South Field Development Foundation (FDF) to assist its member leagues and clubs with the development, improvement and acquisition of playing fields and facilities. Cal South contributes a portion of its player registration fees to FDF. For the years ended August 31, 2010 and 2009, contributions made to FDF amounted to $217,005 and $199,487, respectively. Pursuant to certain affiliation agreements, Cal South paid a portion of its players registration fees to its affiliates (USSF and USYSA) amounting to $487,885 and $375,197 for the years ended August 31, 2010 and 2009, respectively. NOTE 9 CONCENTRATION OF RISK Cal South maintains its cash accounts and investments in major banks, which at times may exceed insured limits. (On July 21, 2010, the Dodd-Franklin financial regulatory reform legislation was signed into law making all noninterest-bearing transaction accounts fully insured without limit effective December 31, 2010 until January 1, In addition, the regulatory reform made the standard maximum deposit insurance amount of $250,000 permanent.) Cal South has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk on cash and cash equivalents. Cal South s deposit accounts with the bank exceeded the Federal Deposit Insurance Corporation insured limit by $502,829 and $0 at August 31, 2010 and 2009, respectively. 52

53 California State Soccer Association South Notes to Financial Statements Years ended August 31, 2010 and 2009 NOTE 10 SUBSEQUENT EVENTS Cal South has evaluated events subsequent to August 31, 2010 to assess the need for potential recognition or disclosure in the financial statements. Such events were evaluated through March 11, 2011, the date the financial statements were available to be issued. Based upon this evaluation, it was determined that no subsequent events occurred that require recognition or additional disclosure in the financial statements. 53

54 California State Soccer Association South Schedule of Functional Expenses Year ended August 31, 2010 Expenses Member Services State Cup Olympic Development Program Camps Coaching Education Soccer Nation Referee Program Adult Risk Management Topsoccer Others Total Program Support Services General and Administrative Publication Fundraising Total Support Total Advertising $ 150 $ - $ - $ - $ - $ - $ - $ 150 $ - $ - $ 2,250 $ 2,550 $ - $ - $ - $ - $ 2,550 B ank charges ,961 6,552 15, , ,178 20, ,279 74,457 B ad debts , ,485 8,485 C linic instructors C ontract labor 570-2,087 4,700 1,400 10, ,001 22,402 35,841-20,979 56,820 79,222 Depreciation and amortization , ,988 19,988 Dues and subscriptions , , ,945 Employee benefits 5,401-10,707 1,745 5,001 2,952 2,700 5,256 5,097-14,748 53,607 30,042 2,801 7,710 40,553 94,160 E ntry fees 29, , ,568 47, ,319 E quipment leases , ,733 21,733 Event on-site medical - 41, , ,226 Expensed equipment 3,608 6, ,889 1, , ,410 19,179 17, ,586 37,765 Field and equipment rental 12, ,803 21,534 98,700 13,994 41,997 2,938 1,285-1,406 4, , ,858 Field foundation program 204, , , ,005 F undraising apparel 104, , ,522 L odging 1,330 49, ,456 1,452 3,394 2,308 4,666 2, , ,855 21,431-1,959 23, ,245 Mileage and auto 1,401 35,253 15,296 2,581 3, ,101 2, ,101 27,440 94,694 7,045-1,196 8, ,935 O ffice supplies 1,501 3,075 2, ,228 1, ,788 12,519 14, ,475 26,994 P ayroll taxes 6,953 10,028 13,880 12,165 11,910 2,819 3,326-1,539-22,110 84,730 41,664 3,672 9,607 54, ,673 P er diem 1,133 27,142 22,775 3,085 6,913 9,148 5, , ,661 22, , ,950 Pins and aw ards 10,617 38, ,198 2,842 53, ,249 Players' insurance 360, , ,846 15, , ,440 Postage and shipping 6,953 2, ,532 2, ,096 1, ,725 34,776 7, ,225 5, , ,689 P rinting 10,869 1,873-8, , ,301-22,861 52,809 2, ,591 9, , ,263 Professional services 165, , , , , , ,467 Program supplies 10,348 1,564 12,258 16,967 44,149 1, ,534 7,135 97, ,186 P romotional items 730 5,749-1,321 1, , ,641 1,641 12,991 R eferee fees 7, ,139 2 Program Services , ,148 R ent , , ,642 Repairs and maintenance , ,080 14,105 Salaries and w ages 228, , , , ,398 42, ,966-22, ,565 1,090, ,167 52, , ,000 1,783,993 Signature league 8, , ,613 Subsidy to ODP 50, , ,000 T axes and licenses , ,858 6,858 T eam subsidy 301, , ,500 T elephone 2,672 9,623 7, ,895 28,346 34,660-1,423 36,083 64,429 Training and seminar 3, , ,300 9, ,575 T ravel 783 9,854 82, , , , ,689 7, , ,585 Tournament expense-district 29, , ,497 USYSA/USSF registration 273, ,555 57, , ,885 U tilities , ,312 16,312 Workers' comp insurance 1,623 3,882 5,235 4,327 3, , ,080 22,026 3, ,202 5,422 27,448 Miscellaneous expense ,225 5, ,078-2, ,977 42,662 51,264 1,184 4,697 57,145 99,807 Total expenses $ 1,412,291 $ 1,114,539 $ 456,607 $ 303,639 $ 228,714 $ 169,901 $ 299,400 $ 131,429 $ 33,049 $ 10,290 $ 583,002 $ 4,742,861 $ 1,104,773 $ 347,702 $ 235,763 $ 1,688,238 $ 6,431,099 54

55 California State Soccer Association South Schedule of Functional Expenses Year ended August 31, 2009 Expenses Member Services State Cup Olympic Development Program Camps Coaching Education Soccer Nation Program Services Referee Program Far West Regional Host Adult Risk Management Topsoccer Others Total Program Support Services General and Administrative Publication Fundraising Total Support Total Advertising $ 2,198 $ - $ - $ - $ - $ - $ - $ - $ 1,040 $ - $ - $ 3,665 $ 6,903 $ - $ - $ - $ - $ 6,903 B ank charges 26,641-4, ,467 34, ,578 66,045 B ad debts - 1, ,300 16, ,000 17,300 C linic instructors ,700-3, , ,670 C ontract labor - 4,900 4,000-10, ,450 38,786-15,375 54,161 74,611 Depreciation and amortization , ,489 17,489 Dues and subscriptions , ,862 2,862 Employee benefits 5,099-9,784 1,603 4,639 2, ,167-8,908 36,985 22,548 2,889 6,948 32,385 69,370 E ntry fees 22, , ,825 E quipment leases , ,268 29,268 Event on-site medical - 39, , ,212 Expensed equipment 3,554 3, ,741-2,438-3,088 1, ,627 18,054 34, ,009 52,063 Field and equipment rental 11,340 78,285 5,200 94,531 10,656 43,933 9,714 10, , ,719 Field foundation program 199, , ,487 F undraising apparel 44, , ,248 League development-program L odging 41, ,694 3,586 12,276 6,011 1,680 7,701 2,305-2,240 35, ,366 15,748-3,857 19, ,971 Mileage and auto 2,460 29,369 8,164 3,297 2,229 1,463 2,964 3,451 1, ,302 20,394 77,490 3,928-1,302 5,230 82,720 O ffice supplies ,468 1, ,734 13, ,808 20,542 P ayroll taxes 4,792 5,292 17,897 12,973 10,673 2, ,058-8,587 65,072 39,554 2,856 9,837 52, ,319 P er diem ,416 20,206 1,232 3,077 13,024 4,497 3,675 2, , ,359 9,776-1,175 10, ,310 Pins and aw ards 11,702 44, , ,659 Players' insurance 384, , ,159 13, , ,803 Postage and shipping 3, (141) 10,576 3, , , ,290 29,972 8,349 99,506 7, , ,157 P rinting 5,350 3,788 5,668 9,360 12,016 3, ,785 5, ,393 74,335 1, ,833 3, , ,778 Professional services 163, , ,955 92, , ,900 Program supplies 73,358 6,336 1,525 17,291 42,192 1,744 4,174 7,971 1,043-7,107 2, ,870 6, , ,096 Promotional items 4,846 2,951-1,712 3, , , ,371 R eferee fees , , , ,054 R ent , , ,441 Repairs and maintenance , ,021 14,021 Salaries and w ages 171,882 65, , , ,259 38,976 13, , , , ,914 39, , ,135 1,442,040 Signature league 11, , ,283 T axes and licenses , ,903 7,903 T eam subsidy 277, , ,500 T elephone 1,517 8,920 6,136-1, , ,905 22,856 34,548-1,279 35,827 58,683 Training and seminar 1, , ,386 7,502 1, ,539 10,041 T ravel 305 9,854 82, , ,800 1, , ,440 5,806-2,660 8, ,906 Tournament expense-district 3, , ,791 USYSA/USSF registration 266, , , ,197 U tilities , ,663 15,663 Workers' comp insurance 1,214 2,674 3,241 3,551 3, ,519 3, ,034 4,476 19,995 Miscellaneous expense ,644 1, ,451 6,206 3,982 41, ,926 80,471 52, ,688 59, ,021 Total expenses $ 1,335,858 $ 881,073 $ 427,331 $ 292,919 $ 246,705 $ 188,886 $ 164,337 $ 96,542 $ 74,735 $ 39,061 $ 14,339 $ 423,644 $ 4,185,430 $ 982,430 $ 256,317 $ 202,104 $ 1,440,851 $ 5,626,

56 About Cal South: The California State Soccer Association - South (Cal South) is a 501c (3) California public benefit corporation and is the official youth and adult state soccer association of the United States Soccer Federation, United States Youth Soccer and United States Adult Soccer Association. Cal South represents 240+ Member Leagues and Clubs comprising our membership of more than 180,000 registered players, coaches, referees and league administrators. The organization, with a service area that extends from San Luis Obispo to San Diego, provides rewarding recreational and competitive opportunities for players of all ages, genders and skill levels. For more information about Cal South, visit South.com.