SECURITIES & EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
--------------------------------
FORM 11-K
--------------------------------
[X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the fiscal year ended December 31, 1998
OR
[ ] TRANSITION REPORT REQUIRED PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from to .
Commission file number 1-9065.
Ecology and Environment, Inc. 401(k) Plan
(Full title of the Plan)
368 Pleasant View Drive, Lancaster, New York 14086
(Address of the Plan)
Ecology and Environment, Inc.
(Name of issuer of the securities held pursuant to the plan.)
368 Pleasant View Drive, Lancaster, New York 14086
(Address of principal executive office.)
REQUIRED INFORMATION
(1) Plan financial statements and schedules prepared in accordance with
financial reporting requirements of ERISA.
See accompanying Index on page 3.
(2) Exhibits:
Exhibit Number Description of Exhibit
(1) Consent of Independent
Accountants
<TABLE>
Ecology and Environment, Inc.
401(k) Plan
Index to Financial Statements and Additional Information
For the Year Ended December 31, 1998 and 1997
<CAPTION>
Page
<S> <C>
Report of Independent Accountants 1
Financial Statements:
Statement of Net Assets Available for Plan Benefits, 2
with Fund Information at December 31, 1998
Statement of Net Assets Available for Plan Benefits,
with Fund Information at December 31, 1997 3
Statement of Changes in Net Assets Available for Plan Benefits,
with Fund Information for the Year Ended December 31, 1998 4
Statement of Changes in Net Assets Available for Plan Benefits,
with Fund Information for the Year Ended December 31, 1997 5
Notes to Financial Statements 6-11
Additional Information:
Item 27a - Schedule of Assets Held for Investment Purposes
at December 31, 1998 12
Item 27b - Schedule of Loans or Fixed Income Obligations
for the Year Ended December 31, 1998 13
Item 27d - Schedule of Reportable Transactions for the
year Ended December 31, 1998 14
</TABLE>
Page 1
Report of Independent Accountants
To the Participants and Plan Administrator of
the Ecology and Environment, Inc. 401(k) Plan
In our opinion, the accompanying statement of net assets available for
benefits and the related statements of changes in net assets available for
benefits present fairly, in all material respects, the net assets available
for benefits of the Ecology and Environment, Inc. 401(k) Plan (the "Plan") at
December 31, 1998 and 1997, and the changes in net assets available for
benefits for the years then ended in conformity with generally accepted
accounting principles. These financial statements are the responsibility of
the Plan's management; our responsibility is to express an opinion on these
financial statements based on our audits. We conducted our audits of these
statements in accordance with generally accepted auditing standards which
require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material misstatement. An
audit 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, and evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for the opinion expressed above.
Our audits were conducted for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedules of assets
held for investment purposes at December 31, 1998, of loans or fixed income
obligations at December 31, 1998, and of reportable transactions for the year
ended December 31, 1998 are presented for the purpose of additional analysis
and are not a required part of the basic financial statements but are
supplementary information required by the Department of Labor's Rules and
Regulations for Reporting and Disclosure under the Employee Retirement Income
Security Act of 1974. The fund information in the statements of net assets
available for benefits and the statement of changes in net assets available
for benefits is presented for purposes of additional analysis rather than to
present the net assets available for plan benefits and changes in net assets
available for benefits of each fund. These supplemental schedules and fund
information are the responsibility of the Plan's management. The supplemental
schedules and fund information have been subjected to the auditing procedures
applied in the audits of the basic financial statements and, in our opinion,
are fairly stated in all material respects in relation to the basic financial
statements taken as a whole.
/s/ PricewaterhouseCoopers LLP
Buffalo, New York
June 25, 1999
Page 2
<TABLE>
ECOLOGY AND ENVIRONMENT, INC.
401(k) Plan
Statement of Net Assets Available for Plan Benefits, with Fund Information at December 31, 1998
<CAPTION>
Fund Information
Growth & Strategic Peoples New
Income Investing Index Bond Leaders
Fund Fund Fund Fund Fund
<S> <C> <C> <C> <C> <C>
Assets
Investments, at fair value
Dreyfus Growth and Income
Fund, Inc. $1,689,383 $ --- $ --- $ --- $ ---
Dreyfus Strategic Investing --- 953,121 --- --- ---
Dreyfus Peoples Index Fund, Inc. --- --- 2,687,394 --- ---
Dreyfus A Bonds Plus, Inc. --- --- --- 502,373 ---
Dreyfus New Leaders Fund, Inc. --- --- --- --- 2,210,508
LaSalle Capital Preservation
Fund
Series E --- --- --- --- ---
Other --- --- --- --- ---
Participant loans --- --- --- --- ---
---------- ---------- ---------- ---------- -----------
Total investments 1,689,383 953,121 2,687,394 502,373 2,210,508
---------- ---------- ---------- ---------- -----------
Receivables:
Dividends --- --- --- --- ---
Employee contributions 12,631 6,404 24,250 4,505 17,611
---------- ---------- ---------- ---------- ----------
Total assets 1,702,014 959,525 2,711,644 506,878 2,228,119
---------- ---------- ---------- ---------- ----------
Liabilities
Administrative expenses --- --- --- --- ---
---------- ---------- ---------- ---------- ----------
Total liabilities --- --- --- --- ---
---------- ---------- ---------- ---------- ----------
Net assets available
for plan benefits $1,702,014 $ 959,525 $2,711,644 $ 506,878 $2,228,119
========== ========== ========== ========== ==========
</TABLE>
Page 2 (Continued)
<TABLE>
ECOLOGY AND ENVIRONMENT, INC.
401(k) Plan
Statement of Net Assets Available for Plan Benefits, with Fund Information at December 31, 1998 (Continued)
<CAPTION>
Fund Information
Capital
Preservation Loan
Fund Other Fund Total
<S> <C> <C> <C> <C>
Assets
Investments, at fair value
Dreyfus Growth and Income
Fund, Inc. $ --- $ --- $ --- $ 1,689,383
Dreyfus Strategic Investing --- --- --- 953,121
Dreyfus Peoples Index Fund, Inc. --- --- --- 2,687,394
Dreyfus A Bonds Plus, Inc. --- --- --- 502,373
Dreyfus New Leaders Fund, Inc. --- --- --- 2,210,508
LaSalle Capital Preservation
Fund
Series E 887,101 --- --- 887,101
Other --- 980,807 --- 980,807
Participant loans --- --- 202,068 202,068
---------- ---------- ---------- -----------
Total investments 887,101 980,807 202,068 10,112,755
---------- ---------- ---------- -----------
Receivables:
Dividends --- 2,401 --- 2,401
Employee contributions 4,746 13,656 --- 83,803
---------- ---------- ---------- ----------
Total assets 891,847 996,864 202,068 10,198,959
---------- ---------- ---------- ----------
Liabilities
Administrative expenses 8,176 --- --- 8,176
---------- ---------- ---------- ----------
Total liabilities 8,176 --- --- 8,176
---------- ---------- ---------- ----------
Net assets available
for plan benefits $ 883,671 $ 996,684 $ 202,068 $10,190,783
========== ========== ========== ===========
The accompanying notes are an integral part of these financial statements.
</TABLE>
Page 3
<TABLE>
ECOLOGY AND ENVIRONMENT, INC.
401(k) Plan
Statement of Net Assets Available for Plan Benefits, with Fund Information at December 31, 1997
<CAPTION>
Fund Information
Growth & Strategic Peoples New Company
Income Investing Index Bond Leaders Stock
Fund Fund Fund Fund Fund Fund
<S> <C> <C> <C> <C> <C> <C>
Assets
Investments, at fair value
Shares in Dreyfus Corporation,
Registered Investment Company:
Growth and Income Fund, Inc. $1,808,922 $ --- $ --- $ --- $ --- $ ---
Strategic Investing --- 1,044,259 --- --- --- ---
Peoples Index Fund, Inc. --- --- 1,596,626 --- --- ---
Dreyfus A Bonds Plus, Inc. --- --- --- 380,370 --- ---
Dreyfus New Leaders Fund, Inc. --- --- --- --- 2,310,213 ---
Company Stock Fund --- --- --- --- --- 148,978
Shares in LaSalle National
Trust, N.A.:
Capital Preservation Fund
Series E --- --- --- --- --- ---
Shares in Franklin Templeton
Group of Funds:
Templeton Foreign Fund --- 174,435 174,435
Participant loans --- --- --- --- --- ---
---------- ---------- ---------- ---------- ---------- ----------
Total investments 1,808,922 1,044,259 1,596,626 380,370 2,310,213 148,978
---------- ---------- ---------- ---------- ---------- ----------
Receivables:
Employee contributions 18,192 9,739 19,827 3,840 22,377 983
---------- ---------- ---------- ---------- ---------- ----------
Total assets 1,827,114 1,053,998 1,616,453 384,210 2,332,590 149,961
---------- ---------- ---------- ---------- ---------- ----------
Liabilities
Administrative expenses --- --- --- --- --- ---
---------- ---------- ---------- ---------- ---------- ----------
Total liabilities --- --- --- --- --- ---
---------- ---------- ---------- ---------- ---------- ----------
Net assets available
for plan benefits $1,827,114 $1,053,998 $1,616,453 $ 384,210 $2,332,590 $ 149,961
========== ========== ========== ========== ========== ==========
</TABLE>
Page 3 (Continued)
<TABLE>
ECOLOGY AND ENVIRONMENT, INC.
401(k) Plan
Statement of Net Assets Available for Plan Benefits, with Fund Information at December 31, 1997
<CAPTION>
Fund Information (Continued)
Capital Templeton
Preservation Foreign Loan
Fund Fund Fund Total
<S> <C> <C> <C> <C>
Assets
Investments, at fair value
Shares in Dreyfus Corporation,
Registered Investment Company:
Growth and Income Fund, Inc. $ --- $ --- $ --- $1,808,922
Strategic Investing --- --- --- 1,044,259
Peoples Index Fund, Inc. --- --- --- 1,596,626
Dreyfus A Bonds Plus, Inc. --- --- --- 380,370
Dreyfus New Leaders Fund, Inc. --- --- --- 2,310,213
Company Stock Fund --- --- --- 148,978
Shares in LaSalle National
Trust, N.A.:
Capital Preservation Fund
Series E 819,944 --- --- 819,944
Shares in Franklin Templeton
Group of Funds:
Templeton Foreign Fund --- 174,435 174,435
Participant loans --- --- 141,867 141,867
---------- ---------- ---------- ----------
Total investments 819,944 174,435 141,867 8,425,614
---------- ---------- ---------- ----------
Receivables:
Employee contributions 6,075 4,319 --- 85,352
---------- ---------- ---------- ----------
Total assets 826,019 178,754 141,867 8,510,966
---------- ---------- ---------- ----------
Liabilities
Administrative expenses 24,454 --- --- 24,454
---------- ---------- ---------- ----------
Total liabilities 24,454 --- --- 24,454
---------- ---------- ---------- ----------
Net assets available
for plan benefits $ 801,565 $ 178,754 $ 141,867 $8,486,512
========== ========== ========== ==========
The accompanying notes are an integral part of these financial statements.
</TABLE>
Page 4
<TABLE>
ECOLOGY AND ENVIRONMENT, INC.
401(k) Plan
Statement of Changes in Net Assets Available for Plan Benefits, with Fund Information for the Year Ended December 31, 1998
<CAPTION>
Fund Information
Growth & Strategic Peoples New
Income Investing Index Bond Leaders
Fund Fund Fund Fund Fund
<S> <C> <C> <C> <C> <C>
Additions to net assets
attributed to:
Investment income (loss) -
Net appreciation (depreciation)
in fair value of investments $ 185,081 $ 94,884 $ 499,732 $ (14,622) $ (104,072)
Interest --- --- --- --- ---
Dividends 17,030 4,522 27,019 25,809 ---
----------- --------- ---------- ----------- ----------
202,111 99,406 526,751 11,187 (104,072)
Contributions -
Employee 334,592 185,369 455,492 77,949 432,452
Rollovers 1,245 1,245 41,251 3,774 31,692
----------- --------- ---------- ---------- ----------
Total Additions 537,948 286,020 1,023,494 92,910 360,072
----------- --------- ---------- ---------- ----------
Deductions from net assets
attributed to:
Benefits paid to participants 166,225 125,234 244,353 43,789 199,085
Administrative expenses --- --- --- --- ---
----------- ---------- --------- ---------- ----------
Total Deductions 166,225 125,234 244,353 43,789 199,085
----------- ---------- --------- ---------- ----------
Net increase (decrease) prior
to interfund transfers 371,723 160,786 779,141 49,121 160,987
Interfund transfers (496,823) (255,259) 316,050 73,547 (265,458)
------------ ----------- --------- ----------- ----------
Net increase (decrease) (125,100) (94,473) 1,095,191 122,668 (104,471)
Net assets available
for plan benefits:
Beginning of year 1,827,114 1,053,998 1,616,453 384,210 2,332,590
----------- ---------- ---------- ----------- ----------
End of year $1,702,014 $ 959,525 $2,711,644 $ 506,878 $2,228,119
=========== =========== ========== =========== ===========
</TABLE>
Page 4 (Continued)
<TABLE>
ECOLOGY AND ENVIRONMENT, INC.
401(k) Plan
Statement of Net Assets Available for Plan Benefits, with Fund Information For the Year Ended December 31, 1998 (Continued)
<CAPTION>
Fund Information (Continued)
Capital
Preservation Loan
Fund Other Fund Total
<S> <C> <C> <C> <C>
Additions to net assets
attributed to:
Investment income (loss) -
Net appreciation (depreciation)
in fair value of investments $ 13 $ 17,633 $ --- $ 678,649
Interest --- 32 12,729 12,761
Dividends 55,015 9,884 --- 139,279
---------- ----------- ---------- ----------
55,028 27,549 12,729 830,689
Contributions
Employee 97,272 135,695 --- 1,718,821
Rollovers --- 3,774 --- 82,981
----------- ----------- ---------- ----------
Total Additions 152,300 167,018 12,729 2,632,491
----------- ----------- ---------- ----------
Deductions from net assets
attributed to:
Benefits paid to participants 98,017 14,510 13,840 905,053
Administrative expenses 23,167 --- --- 23,167
----------- ----------- ---------- ----------
Total Deductions 121,184 14,510 13,840 928,220
----------- ---------- ---------- ----------
Net increase (decrease) prior
to interfund transfers 31,116 152,508 (1,111) 1,704,271
Interfund transfers 50,990 515,641 61,312 ---
----------- ----------- ---------- ----------
Net increase (decrease) 82,106 668,149 60,201 1,704,271
Net assets available
for plan benefits:
Beginning of year 801,565 328,715 141,867 8,486,512
----------- ----------- ---------- ----------
End of year $ 883,671 $ 996,864 $202,068 $10,190,783
=========== =========== ========== ===========
The accompanying notes are an integral part of these financial statements.
</TABLE>
Page 5
<TABLE>
ECOLOGY AND ENVIRONMENT, INC.
401(k) Plan
Statement of Changes in Net Assets Available for Plan Benefits, with Fund Information for the Year Ended December 31, 1997
<CAPTION>
Fund Information
Growth & Strategic Peoples New Company
Income Investing Index Bond Leaders Stock
Fund Fund Fund Fund Fund Fund
<S> <C> <C> <C> <C> <C> <C>
Additions to net assets
attributed to:
Investment income (loss) -
Net appreciation (depreciation)
in fair value of investments $ 218,916 $ 140,568 $ 310,532 $ 13,986 $ 343,017 $ 41,747
Interest --- --- --- --- --- ---
Dividends 26,126 4,710 16,357 20,401 25,899 5,219
----------- --------- ---------- ---------- ---------- ---------
245,042 145,278 326,889 34,387 368,916 46,966
Contributions -
Employee 380,621 199,534 331,353 81,821 458,546 15,828
Rollovers 3,627 3,209 8,696 3,209 4,279 34
----------- ----------- --------- ---------- ---------- ---------
Total Additions 629,290 348,021 666,938 119,417 831,741 62,828
----------- ----------- --------- ---------- ---------- ----------
Deductions from net assets
attributed to:
Benefits paid to participants 158,856 123,285 39,561 43,900 222,552 2,310
Administrative expenses --- --- --- --- --- ---
----------- ----------- --------- ---------- ---------- ----------
Total Deductions 158,856 123,285 39,561 43,900 222,552 2,310
----------- ----------- --------- ---------- ---------- ----------
Net increase (decrease) prior
to interfund transfers 470,434 224,736 627,377 75,517 609,189 60,518
Interfund transfers (180,984) (59,589) 177,850 (59,996) (174,463) 13,874
------------ ------------ --------- ----------- ---------- ----------
Net increase 289,450 165,147 805,227 15,521 434,726 74,392
Net assets available
for plan benefits:
Beginning of year 1,537,664 888,851 811,226 368,689 1,897,864 75,569
----------- ---------- ---------- ------------ ----------- ----------
End of year $1,827,114 $1,053,998 $1,616,453 $ 384,210 $2,332,590 $ 149,961
=========== ========== ========== ============ =========== ==========
</TABLE>
Page 5 (Continued)
<TABLE>
ECOLOGY AND ENVIRONMENT, INC.
401(k) Plan
Statement of Net Assets Available for Plan Benefits, with Fund Information For the Year Ended December 31, 1997 (Continued)
<CAPTION>
Fund Information (Continued)
Capital Templeton
Preservation Foreign Loan Holding
Fund Fund Fund Account Total
<S> <C> <C> <C> <C> <C>
Additions to net assets
attributed to:
Investment income (loss) -
Net appreciation (depreciation)
in fair value of investments $ --- $ (16,309) $ --- $ --- $1,052,457
Interest 33,685 --- 8,569 --- 42,254
Dividends --- 14,432 --- 1,675 114,819
----------- ----------- ---------- ---------- ----------
33,685 (1,877) 8,569 1,675 1,209,530
Contributions -
Employee 107,118 67,632 --- --- 1,642,453
Rollovers 4,279 --- --- --- 27,333
----------- ----------- ---------- ---------- ----------
Total Additions 145,082 65,755 8,569 1,675 2,879,316
----------- ----------- ---------- ---------- ----------
Deductions from net assets
attributed to:
Benefits paid to participants 35,996 12,798 --- --- 639,258
Administrative expenses 3,716 --- --- 16,650 20,366
----------- ----------- ---------- ---------- ----------
Total Deductions 39,712 12,798 --- 16,650 659,624
----------- ----------- ---------- ---------- ----------
Net increase (decrease) prior
to interfund transfers 105,370 52,957 8,569 (14,975) 2,219,692
Interfund transfers 121,997 125,797 20,539 14,975 ---
----------- ----------- ---------- ---------- ----------
Net increase 227,367 178,754 29,108 --- 2,219,692
Net assets available
for plan benefits:
Beginning of year 574,198 --- 112,759 --- 6,266,820
----------- ------------ ---------- ---------- ----------
End of year $ 801,565 $ 178,754 $141,867 $ --- $8,486,512
=========== ============ ========== ========== ==========
The accompanying notes are an integral part of these financial statements.
</TABLE>
Page 6
Ecology and Environment, Inc.
401(k) Plan
Notes to Financial Statements
1. Description of Plan
The following description of the Ecology and Environment, Inc. 401(k) Plan
(the Plan) is provided for general information purposes only.
Participants should refer to the Plan agreement for a more comprehensive
description of the Plan's provisions.
General
The Plan was established January 1, 1994 as a defined-contribution plan to
cover all eligible employees of Ecology and Environment, Inc. (the
Company). In accordance with the Plan agreement, eligibility is defined
as an employee who has completed a minimum of 1,000 hours of service and
is age twenty-one or older. Contributions to the Plan were not permitted
prior to July 1, 1994. The Plan is subject to the provisions of the
Employee Retirement Income Security Act of 1974 (ERISA).
Contributions
Participants may elect to make voluntary contributions up to 15% of their
annual compensation subject to certain limitations. The elective deferral
percentage may be modified the first day of any month.
The Company may make contributions in the form of matching contributions
and/or an annual discretionary contribution fixed by appropriate action of
the Company. There were no Company contributions for the 1998 and 1997
plan years.
Participant accounts
Each participant's account is credited with the participant's contribution
and allocations of the Company's contribution (if any) and the Plan
earnings, and charged with an allocation of administrative expenses.
Allocations are based on participant account balances, as defined in the
Plan document. The benefit to which a participant is entitled is the
participant's vested account balance.
Vesting
Participants are immediately vested in their contributions plus actual
earnings thereon. Vesting on the Company's matching and discretionary
contribution portion of their accounts plus actual earnings thereon is
based on years of continuous service. A participant is 100% vested in the
Company contributions after five years of credited service.
Page 7
Investment options
Upon enrollment in the Plan, a participant may direct their contributions
in any combination of the seven investment options in at least ten percent
increments in each option selected. The investment options are as
follows:
Dreyfus Growth and Income Fund, Inc.
This fund's main goals are long-term capital growth, current income and
growth of income while maintaining reasonable investment risk. The Fund
may invest in securities of U.S. and foreign companies.
Dreyfus Strategic Investing
This fund is invested primarily in publicly issued common stock with the
objective of high capital growth.
Dreyfus Peoples Index Fund, Inc.
This fund invests in a portfolio of common stocks included in the
Standard & Poor's 500 Composite Index and attempts to match as closely
as possible the performance of that Index.
Dreyfus A Bonds Plus, Inc.
This fund seeks to provide the maximum amount of current income while
also preserving capital and maintaining liquidity through high current
yields from a portfolio made up mainly of high quality fixed income
securities.
Dreyfus DisciplinedStock Fund
This fund seeks consistency of returns which exceed the S&P 500 and
stability of the fund's asset value relative tot he S&P 500 by investing
in a broadly diversified list of equity securities.
Dreyfus Appreciation Fund, Inc.
This fund seeks long-term capital growth consistent with the
preservation of capital. The fund invests mainly in common stocks of
United States companies, many of which are multinational with global
business exposure.
Page 8
Dreyfus New Leaders Fund, Inc.
This fund is invested in a portfolio primarily comprised of emerging
small to mid-sized growth company common stocks and seeks to maximize
capital growth.
Company Stock Fund
This fund invests solely in the common stock of Ecology and Environment,
Inc.
Capital Preservation Fund Series E
This fund is a collective investment fund investing primarily in
Guaranteed Investment Contracts (GICs) and similar investments, managed
by LaSalle National Trust, N.A. The fund seeks high current income with
stability of principal.
Templeton Foreign Fund
This fund is a long term capital growth fund investing in stocks and
debt obligations of companies and governments outside the United States.
This fund became available to participants on May 1, 1997.
Participant loans
Participants may borrow from their account a minimum of $1,000 with a
maximum equal to the lesser of $50,000 or 50% of their vested account
balance. Loan transfers are treated as a transfer to (from) the
investment fund from (to) the Loan Fund. Loan terms range from one to
five years or a reasonable period of time determined when the loan is made
for the purchase of a primary residence. The loans are secured by the
balance in the participant's account and bear interest at a rate
commensurate with local prevailing rates as determined by the Plan
administrator. Principal and interest are paid ratably through bi-weekly
payroll deductions.
Payment of benefits
On termination of service due to death, disability, or retirement, a
participant may elect to receive either a lump-sum amount equal to the
value of the participant's vested interest in his or her account, or
monthly, quarterly, semi-annual or annual installments over a period not
to exceed the life of the participant or the life of a designated
beneficiary.
Page 9
Administration
The Plan is administered by the Company. The Company has selected
Dreyfus Retirement Services to be the Trustee of the Plan. The Trustee is
responsible for maintaining the assets of the Plan and reporting on the
earnings and assets of the Plan.
Administrative expenses are paid by the participants and the Company. An
asset based fee is paid by the participants on an annual basis. This
amount is deducted from participant accounts and placed in the Holding
Account to be used to pay administrative expenses submitted for payment to
the Trustee from the Company. Effective November 1, 1997 the Holding
Account was merged into the Capital Preservation Fund, which will be used
for the same purposes as the Holding Account in the future. Any remaining
administrative expenses in excess of the amounts which are set aside by
the Plan are paid by the Company.
2. Summary of Accounting Policies
Basis of Accounting
The financial statements of the Plan are prepared under the accrual method
of accounting.
Investments and Related Transactions
The Plan's investments are reflected at current market value as measured
by quoted market prices in an active market or as determined in good faith
by the Trustee, except for investment contracts within the Capital
Preservation Fund which are reflected at contract value which approximates
market value. Net appreciation/(depreciation) in fair value of
investments includes both realized gains and losses and unrealized
appreciation/(depreciation). Interest and dividend income is recognized
as earned. Investment transactions are accounted for on the trade date.
Net unrealized appreciation at December 31, 1998 and 1997, $1,311,392 and
$1,135,931, respectively. Participant loans are valued at cost, which
approximates fair value.
Payment of Benefits
Benefits are recorded when paid.
Use of Estimates
The preparation of the Plan's financial statements in conformity with
generally accepted accounting principles requires the Plan Administrator
to make estimates and assumptions that affect the reported amounts of net
assets and disclosures of contingent net assets at the date of
the financial statements and the reported amounts of changes in net assets
during the reporting period. Actual results could differ from those
estimates.
Page 10
3. Plan Termination
Although it has not expressed any intent to do so, the Company has the
right under the Plan to discontinue at any time and to terminate the Plan
subject to the provisions of ERISA. In the event of Plan termination,
participants will become 100 percent vested in their accounts.
4. Other Investments
Investments that represent five percent or more of the Plan's assets are
separately identified on the financial statements. Information regarding
the Other Investments are as follows:
<TABLE>
<CAPTION>
Dreyfus Dreyfus Dreyfus
Company Appreciation Diciplined Templeton
Stock Fund Stock Foreign
Fund Inc. Fund Fund Total
<S> <C> <C> <C> <C> <C>
Addition
Net appreciation (depreciation)
in fair value of investments $(33,024) $ 33,525 $ 36,312 $ (19,180) $ 17,633
Interest 32 --- --- --- 32
Dividends 4,328 --- 228 5,328 9,884
(28,664) 33,525 36,540 (13,852) 27,549
Contributions
Employees 22,459 16,813 17,407 79,016 135,695
Rollovers --- --- --- 3,774 3,774
Total addition (6,205) 50,338 53,947 68,938 167,018
Benefits paid 2,343 --- --- 12,167 14,510
Administration --- --- --- --- ---
2,343 --- --- 12,167 14,510
Net interest/dividends (8,548) 50,338 53,947 56,771 152,508
Interfund (9,773) 278,769 282,297 (36,652) 515,641
(18,321) 329,107 336,244 21,119 668,149
Beginning of year 149,961 --- --- 178,754 328,715
End of year $131,640 $329,107 $336,244 $199,873 $996,864
Page 11
5. Reconciliation of Financial Statements to Form 5500
</TABLE>
<TABLE>
The following is a reconciliation of net assets available for plan benefits according to the
financial statements to Form 5500:
<CAPTION>
December 31, December 31,
1998 1997
----------- -----------
<S> <C> <C>
Net assets available for plan benefits
per the financial statements $10,190,783 $8,486,512
Amounts allocated to withdrawing
participants (521,796) (418,577)
----------- -----------
Net assets available for benefits
per Form 5500 $9,668,987 $8,067,935
=========== ===========
</TABLE>
<TABLE>
The following is a reconciliation of benefits paid to participants
according to the financial statements to Form 5500:
<CAPTION>
Year Ended
December 31,
1998
------------
<S> <C>
Benefits paid to participants per the financial
statements $905,053
Add: Amounts allocated to withdrawing participants
at December 31, 1998 521,796
Less: Amounts allocated to withdrawing participants
at December 31, 1997 (418,577)
-----------
Benefits paid to participants per Form 5500 $1,008,272
===========
Amounts allocated to withdrawing participants are recorded on the Form
5500 for benefit claims that have been processed and approved for payment
prior to December 31 but not yet paid as of that date.
</TABLE>
6. Tax Status
The Plan Administrator has not applied to the Internal Revenue Service for
a determination letter for the Plan. The Plan Administrator and Plan's
tax counsel believe that the Plan, which is based upon a prototype plan
designed by the Dreyfus Corporation that received a favorable
determination letter dated September 1, 1994, is being operated in
compliance with the applicable requirements of ERISA and the Internal
Revenue Code and therefore fulfills the criteria for exemption from
federal and state income taxes.
Page 12
<TABLE>
ECOLOGY AND ENVIRONMENT, INC.
401(k) Plan
Item 27a - Schedule of Assets Held for Investment Purposes at December 31, 1998
<CAPTION>
Shares Fair
Units Description Cost Value
POOLED INVESTMENT FUNDS:
Dreyfus Corporation:
<S> <C> <C> <C>
91,367 Growth and Income Fund, Inc. $1,714,218 $1,689,383
44,959 Premier Value Fund 976,581 953,121
73,850 Peoples Index Fund, Inc. 1,876,187 2,687,394
35,884 A Bonds Plus, Inc. 509,515 502,373
8,841 Disciplined Stock Fund 294,398 331,167
7,728 Appreciation Fund 291,578 325,103
53,510 New Leaders Fund, Inc. 1,648,623 2,210,508
13,816 Company Stock Fund 159,059 127,801
---------- ----------
7,470,699 8,826,850
OTHER INVESTMENTS:
LaSalle National Trust, N.A.
887,101 Capital Preservation Fund Series E 887,101 887,101
Franklin Templeton Group of Funds
23,449 Templeton Foreign Fund 241,495 196,736
Participant Loans, 9 - 10% --- 202,068
---------- ----------
$8,599,295 $10,112,755
========== ==========
</TABLE>
Page 13
<TABLE>
Ecology and Environment, Inc.
401(k) Plan
Item 27b - Schedule of Loans or Fixed Income Obligations at December 31, 1998
<CAPTION>
Amount Received During
Identity and Original the Year Ended
Address of Amount of December 31, 1998 Unpaid Balance Amount Overdue
Obligor Loan Principal Interest December 31, 1998 Description Principal Interest
<S> <C> <C> <C> <C> <C> <C> <C>
Karen Lintz $19,000 $--- $--- $19,000 General loan; $19,000 $---
6A Windy Hill Interest rate - 9.50%
Ballton Lake, NY 12019 Originated on
May 29, 1998
Kilpatrick Woodward 1,100 140 53 654 General loan;
53 Ruspin Ave. Interest rate - 9.75% 158 45
Buffalo, NY 14215 Originated on
September 18, 1995
</TABLE>
Page 14
<TABLE>
ECOLOGY AND ENVIRONMENT, INC.
401(k) Plan
Item 27d - Schedule of Reportable Transactions for the Year Ended December 31, 1998
<CAPTION>
Purchases
Identity of
Party Description of Purchase
Involved Asset Price Transactions Selling Price Transactions
<S> <C> <C> <C> <C> <C>
Dreyfus Corporation Growth & Income Fund, Inc. $ 332,483 35 $ --- ---
--- --- 657,398 70
Dreyfus Corporation Strategic Investing Fund 172,127 28 --- ---
--- --- 364,249 51
Dreyfus Corporation Peoples Index Fund, Inc. 917,129 70 --- ---
--- --- 396,069 31
Dreyfus Corporation New Leaders Fund, Inc. 496,570 49 --- ---
--- --- 500,588 58
LaSalle National Capital Preservation 381,292 51 --- ---
Trust, N.A. Fund Series E --- --- 362,242 42
</TABLE>
Page 14 (Continued)
<TABLE>
ECOLOGY AND ENVIRONMENT, INC.
401(k) Plan
Item 27d - Schedule of Reportable Transactions for the Year Ended December 31, 1998
<CAPTION>
Sales
Current Value
Identity of Expense of Asset on
Party Description of Lease Incurred with Cost of Transaction Net Gain
Involved Asset Rental Transaction Asset Date or (Loss)
<S> <C> <C> <C> <C> <C> <C>
Dreyfus Corporation Growth & Income Fund, Inc. $ --- --- $332,483 $332,483 $ ---
--- --- 681,709 657,398 (24,311)
Dreyfus Corporation Strategic Investing Fund --- --- 172,127 172,127 ---
373,251 364,249 (9,002)
Dreyfus Corporation Peoples Index Fund, Inc. --- 917,129 917,129 ---
--- --- 285,291 396,069 110,778
Dreyfus Corporation New Leaders Fund, Inc. --- 496,570 496,570 ---
--- --- 348,698 500,588 151,890
LaSalle National Capital Preservation --- 381,292 381,292 ---
Trust, N.A. Fund Series E --- --- 362,242 362,242 ---
</TABLE>
SIGNATURE
The Plan. Pursuant to the requirements of the Securities Exchange Act of
1934, the Plan Administrator has duly caused this annual report to be
signed by the undersigned thereunto duly authorized.
Ecology and Environment, Inc.
401(k) Plan
(Name of Plan)
By: Ecology and Environment, Inc.
401(k) Plan Committee
Plan Administrator
By: /s/ Ronald L. Frank
Ronald L. Frank
Committee Member
DATE: July 15, 1999
Exhibit 1
CONSENT OF INDEPENDENT ACCOUNTANTS
We hereby consent to the incorporation by reference in the Registration
Statement on Form S-8 No. 333-30085 of Ecology and Environment, Inc. of our
report dated June 25, 1999 relating to the financial statements, which
appears in this Form 11-K.
/s/ PricewaterhouseCoopers LLP
Buffalo, New York
July 15, 1999
