UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 11-K

þ ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 2013
OR

o TRANSITION REPORT 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)

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

Item 1.
 
Not applicable.
 
 
 
Item 2.
 
Not applicable
 
 
 
Item 3.
 
Not applicable
 
 
 
Item 4.
 
Financial Statements of the Plan
 
 
 
 
 
The Financial Statements of the Ecology and Environment, Inc. 401(k) Plan (the Plan) for the fiscal years ended December 31, 2013 and 2012, together with the report of Schneider Downs & Co., Inc., Independent Registered Public Accounting Firm, is included in this Annual Report on Form 11-K, and are by specific reference incorporated herein and filed as a part hereof. The Financial Statements and the Notes thereto are presented in lieu of the financial statements required by Items 1, 2 and 3 of Form 11-K. The Plan is subject to the requirements of the Employee Retirement Income Security Act of 1974 (ERISA).

Exhibits:

 
Exhibit Number
Description of Exhibit
 
 
 
 
Consent of Schneider Downs & Co., Inc., Independent Registered Public Accounting Firm

Ecology and Environment, Inc.
401(k) Plan
Index to Financial Statements and Supplemental Schedule
for the Years Ended December 31, 2013 and 2012

Table of Contents

 
Page
 
 
1
 
 
Financial Statements:
 
 
 
2
 
 
3
 
 
4 – 13
 
 
Supplemental Schedule:
 
 
 
14 - 16

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Participants and Administrator of
Ecology and Environment, Inc. 401(k) Plan
Lancaster, New York

We have audited the accompanying statements of net assets available for benefits of Ecology and Environment, Inc. 401(k) Plan (Plan) as of December 31, 2013 and 2012, and the related statements of changes in net assets available for benefits for the years then ended.  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 in accordance with the standards of the Public Company Accounting Oversight Board (United States).  Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.  The company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included 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 the Plan’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 net assets available for benefits of Ecology and Environment, Inc. 401(k) Plan as of December 31, 2013 and 2012, and the changes of net assets available for benefits 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 taken as a whole.  The accompanying supplemental schedule of assets (held at end of year) as of December 31, 2013 is presented for the purpose of additional analysis and is not a required part of the basic financial statements but is 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 supplemental schedule is the responsibility of the Plan’s management.  The supplemental schedule has been subjected to the auditing procedures applied in the audits 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.
 
/s/ Schneider Downs & Co., Inc.
 
 
 
Pittsburgh, Pennsylvania
June 26, 2014
 
Ecology and Environment, Inc.
401(k) Plan
Statements of Net Assets Available for Benefits
December 31,

Assets
  
2013
    
2012
  
 
  
   
 
Investments, at fair value (see Note 6)
  
$
41,047,012
    
$
34,632,094
  
Notes receivable from participants
    
447,349
      
321,139
  
Participant contributions receivable
    
-
      
101,850
  
 
                
Total assets
    
41,494,361
      
35,055,083
  
               
Liabilities
                
 
                
Excess contributions
    
-
      
41,591
  
 
                
Total liabilities
    
-
      
41,591
  
 
                
Net assets available for benefits at fair value
    
41,494,361
      
35,013,492
  
 
                
Adjustment from fair value to contract value for fully benefit-responsive investment contracts
    
(41,218
)
    
(83,400
)
 
                
Net assets available for benefits
  
$
41,453,143
    
$
34,930,092
  

See accompanying notes to the financial statements.
Ecology and Environment, Inc.
401(k) Plan
Statements of Changes in Net Assets Available for Benefits
Years Ended December 31,

 
  
2013
    
2012
  
 
  
   
 
Additions to net assets attributed to:
  
   
 
Interest
  
$
22,480
    
$
15,199
  
Dividends
    
1,476,604
      
1,013,093
  
Net appreciation in fair value of investments (see Note 7)
    
6,089,227
      
2,743,307
  
 
    
7,588,311
      
3,771,599
  
 
                
Contributions:
                
Participant
    
2,741,036
      
2,785,991
  
Rollovers
    
145,630
      
177,615
  
 
    
2,886,666
      
2,963,606
  
 
                
Total additions
    
10,474,977
      
6,735,205
  
 
                
Deductions from net assets attributed to:
                
Benefits paid to participants
    
3,947,344
      
2,081,710
  
Administrative expenses
    
4,582
      
6,148
  
Total deductions
    
3,951,926
      
2,087,858
  
 
                
Net increase
    
6,523,051
      
4,647,347
  
 
                
Net assets available for benefits:
                
Beginning of year
    
34,930,092
      
30,282,745
  
 
                
End of year
  
$
41,453,143
    
$
34,930,092
  

See accompanying notes to the financial statements.
Ecology and Environment, Inc.
401(k) Plan
Notes to Financial Statements
December 31, 2013 and 2012

1. Description of Plan
 
The following description of the Ecology & Environment, Inc. 401(k) Plan (the Plan) is provided for general information purposes only.  Participants should refer to the Plan document 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).  Beginning August 1, 2002 the hours of service requirement was eliminated and employees age twenty-one or older are immediately eligible to participate in the plan during the month following their date of hire.  The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974 (ERISA).  The Trustees determine the appropriateness of the Plan’s investment offerings and monitor investment performance.

Contributions
Participants may elect to make voluntary contributions subject only to the limitations of the Internal Revenue Code (IRC).  The elective deferral percentage may be modified the first day of any month.  Upon enrollment in the Plan, a participant may direct, in at least 10 percent increments in each option selected, his or her contributions in any combination of the various investment options and a self directed brokerage account.  The Plan allows Roth 401(k) contributions from participants.  Participants who were 50 years of age or older during the plan year are allowed to contribute catch up contributions.

Participant accounts
Each participant’s account is credited with the participant’s contribution 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.  There is no partial vesting. There are no company matching or discretionary contributions.

Notes Receivable from Participants
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.  Note terms range from one to five years or a reasonable period of time determined when the note is made for the purchase of a primary residence.  The notes are collateralized by the balance in the participant’s account.  The interest rate is the Prime Rate published by the Wall Street Journal on the first business day of the month before the loan is originated plus 1%.  The interest rate is fixed over the life of the loan.  Principal and interest are paid ratably through bi-weekly payroll deductions.

Payment of benefits
Participants may withdraw all or a portion of their vested account balance at any time upon hardship or after the attainment of age 59 ½.  In general, unless the participant elects otherwise, distribution of benefit will commence within 60 days after the latest of the close of the Plan year in which the participant terminates employment with the employer.  Participants must begin to receive benefits no later than the April 1st following the calendar year in which the participant attains 70 ½ or terminates employment, whichever is later.

Upon termination, if a participant’s vested account balance is $1,000 or less, the participant will automatically receive a lump sum distribution as soon as feasible.

Ecology and Environment, Inc.
401(k) Plan
Notes to Financial Statements
December 31, 2013 and 2012
 
1. Description of Plan (Continued)

Administration
The Plan is administered by the Company.  Effective July 1, 2013 the Company selected Putnam Fiduciary Trust Company as the Trustee and Recordkeeper of the Plan.  Prior to July 1, 2013, Mass Mutual Retirement Services (formerly known as The Hartford Retirement Services, LLC) was the Recordkeeper of the Plan and Reliance Trust Company was the Trustee of the Plan.

Certain expenses of maintaining the Plan are paid directly by the Company and are excluded from these financial statements.  The remaining expenses are paid for by the Plan participants.

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
Investments are reported at fair value.  Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transfer between market participants at the measurement date.  See Note 6 for Fair Value Measurements. The Plan’s assets include an investment in the common stock of Ecology and Environment, Inc. through a unitized stock fund, which includes a money market fund for liquidity purposes, and through the brokerage access account.  The Plan’s trustees determine the Plan’s valuation policies utilizing information provided by the investment advisers and custodians.  See Note 6 for discussions of fair value measurements.

The Plan’s 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 a trade date basis.

Investment contracts held by a defined-contribution plan are required to be reported at fair value.  However, contract value is the relevant measurement attribute for that portion of the net assets available for benefits of a defined-contribution plan attributable to fully benefit responsive investment contracts because contract value is the amount participants would receive if they were to initiate permitted transactions under the terms of the Plan.  The Plan invests in investment contracts through a collective trust.  The Statement of Net Assets Available for Benefits presents the fair value of the investment in the collective trust as well as the adjustment of the investment in the collective trust from fair value to contract value relating to the investment contracts.  The Statements of Changes in Net Assets Available for Benefits is prepared on a contract value basis.

Notes Receivable from Participants
Notes receivable from participants are measured at their unpaid principal balances plus any accrued but unpaid interest.  Interest income is recorded on the accrual basis.  Delinquent notes receivable are reclassified as distributions based upon the terms of the plan document.  No allowance for credit losses has been recorded as of December 31, 2013 or 2012.

Excess Contributions Payable
Amounts payable to participants for contributions in excess of amounts allowed by the IRS are reported as a liability with a corresponding reduction to contributions.  The Plan distributed the 2012 excess contributions to the applicable participants prior to March 15, 2013.

Payment of Benefits
Benefits are recorded when paid.
Ecology and Environment, Inc.
401(k) Plan
Notes to Financial Statements
December 31, 2013 and 2012
 
2. Summary of Accounting Policies (Continued)

Use of Estimates
The preparation of the Plan’s financial statements in conformity with generally accepted accounting principles generally accepted in the United States of America 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.
 
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.
 
4. Tax Status
The Internal Revenue Service has determined and informed Putnam Fiduciary Trust Company by a letter dated May 18, 2011, that the prototype non-standardized profit sharing plan adopted by the Plan is designed in accordance with the applicable sections of the Internal Revenue Code (IRC).  Although the Plan had been amended since receiving the determination letter, the Plan administrator and the Plan’s tax counsel believe that the Plan was designed and was operated in compliance with applicable requirements of the Internal Revenue Code.

Prior to July 1, 2013, the Plan was based upon a prototype plan designed by Mass Mutual Retirement Services (formerly known as The Hartford Retirement Services, LLC) that received a favorable determination letter dated March 31, 2008.  Although the Plan had been amended since receiving the determination letter, the Plan administrator and the Plan’s tax counsel believe that the Plan was designed and was operated in compliance with applicable requirements of the Internal Revenue Code.

Accounting principles generally accepted in the United States of America require plan management to evaluate tax positions taken by the Plan and recognize a tax liability if the Plan has taken an uncertain position that more likely than not would not be sustained upon examination by the Internal Revenue Service. The plan administrator has analyzed the tax positions taken by the Plan and has concluded that as of December 31, 2013 and 2012, there are no uncertain positions taken or expected to be taken that would require recognition of a liability or disclosure in the financial statements. The Plan is subject to routine audits by taxing jurisdictions; however there are currently no audits for any tax periods in progress.  The plan administrator believes that it is no longer subject to income tax examinations for the years prior to 2010.

5. Risks and Uncertainties

The Plan invests in various investment securities.  Investment securities are exposed to various risks such as interest rate, market, and credit risks.  Due to the level of risk associated with certain investment securities, it is at least reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect participants’ account balances and the amounts reported in the statements of net assets available for benefits.

Ecology and Environment, Inc.
401(k) Plan
Notes to Financial Statements
December 31, 2013 and 2012

6. Fair Value Measurements

Fair Value – FASB ASC 820 provides the framework for measuring the fair value.  That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value.  The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements).  The three levels of the fair value hierarchy under FASB ASC 820 are described as follows.
 
Level 1: Quoted market prices in active markets for identical assets or liabilities.
Level 2: Observable market based inputs or unobservable inputs that are corroborated by market data.
Level 3:  Unobservable inputs that are not corroborated by market data.
 
If the asset or liability has a specified (contractual) term, the level 2 input must be observable for substantially the full term of the asset or liability. The asset or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs.

Following is a description of the valuation methodologies used for assets measured at fair value.  There were no transfers between level 1 and level 2 assets for the years ended December 31, 2013 and 2012.

Cash and cash equivalents: Valued at the balance of the account at year end.

Common stocks and preferred stock: Valued at the closing price reported on the active market on which the individual securities are traded.

Mutual funds: Valued at the net asset value (NAV) of shares held by the plan at year end.  The NAV is the closing price reported on the active market on which the securities are traded.

Unit investment trusts: Comprised entirely of common stocks valued at the closing price reported on the active market on which the individual securities are traded.

Unitized stock fund: Valued at the closing price reported on the active market on which the individual securities are traded.  A small portion of the fund is invested in short-term money market instruments.

Common/collective trusts: Common/collective trusts include a stable value fund and an S&P 500 index fund as of December 31, 2013.  Common/collective trust includes a SEI Trust Company Fixed Fund as of December 31, 2012.

Stable value fund: The stable value fund is a collective investment trust.  The primary underlying investments held by this fund are guaranteed investment contracts and security-backed investment contracts.  Participation units held in the stable value fund are valued at contract value.  Contract value represents contributions made plus interest accrued less withdrawals.  Fair value of the Plan’s interest in this fund is based on the adjustment to the contract value based on information reported by the trustee using audited financial statements of the fund at year-end.  The fund seeks to preserve principal and achieve high current income through a diversified portfolio of high-quality investment contracts.

S&P 500 index fund: The S&P 500 index fund is a collective investment trust. The fair value of the Plan’s interest in the collective funds is based on the NAV reported by the fund managers as of the financial statement dates and recent transaction prices.  Fair values for the investments within the collective funds are based on reference to the respective fund’s underlying assets, which are primarily common stock securities.  The fund seeks to achieve a return that closely approximates the return of the Standard & Poor’s 500 Composite Stock Price Index before the assessment of any fees.
Ecology and Environment, Inc.
401(k) Plan
Notes to Financial Statements
December 31, 2013 and 2012
 
6. Fair Value Measurements (continued)

SEI Trust Company Fixed Fund: Valued at the NAV of units of the common collective trust.  The NAV as provided by the trustee is used as a practical expedient to estimate fair value.  The NAV is based on the fair value of the underlying investments held by the fund less its liabilities.  This practical expedient is not used when it is determined to be probable that the fund will sell the investment for an amount different from the reported NAV.  The Plan’s interest in this fund is based on information reported by the trustee using the audited financial statements of the fund at year end.  The common collective trust is classified as a Level 2 investment.  The common collective trust fund’s underlying investments seek to preserve principal and provide a stable crediting rate.  The underlying investments as of December 31, 2012 are benefit responsive contracts, including GICs and wrap (synthetic) contracts with high quality banks and insurance companies.

The common collective trust fund does not have any unfunded commitments relating to its investments, nor any significant restrictions or redemptions.  Participant directed redemptions can be made on any business day and do not have a redemption notice period.  Certain events, such as a change in law, regulation, administrative ruling or employer-initiated termination of the Plan, may limit the ability of the Plan to transact the common collective trust fund at contract value with the issuer.  The Plan’s management does not believe that the occurrence of any such events is probable.

The preceding methods described may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, although the Plan believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.

The following table sets forth by level, within the fair value hierarchy the plan’s investments at fair value as of December 31, 2013 and 2012:
Ecology and Environment, Inc.
401(k) Plan
Notes to Financial Statements
December 31, 2013 and 2012
 
6. Fair Value Measurements (continued)
 
December 31, 2013
  
Quoted
Prices in
Active
Market
Level I
    
Significant Other Observable Inputs
Level II
    
Significant Unobservable Inputs
Level III
    
Total
  
 
  
   
   
   
 
Mutual funds:
  
   
   
   
 
Growth funds
  
$
9,496,906
    
$
-
    
$
-
    
$
9,496,906
  
Blend funds
    
6,236,656
      
-
      
-
      
6,236,656
  
Value funds
    
6,167,373
      
-
      
-
      
6,167,373
  
Bond funds
    
2,938,224
      
-
      
-
      
2,938,224
  
Allocation funds
    
2,663,546
      
-
      
-
      
2,663,546
  
Target date funds
    
2,257,536
      
-
      
-
      
2,257,536
  
 
                                
Total mutual funds
    
29,760,241
      
-
      
-
      
29,760,241
  
 
                                
Brokerage access account:
                                
Cash and cash equivalents
    
414,366
      
-
      
-
      
414,366
  
Preferred stock
    
51,960
      
-
      
-
      
51,960
  
Common stock:
                                
Basic materials
    
119,627
      
-
      
-
      
119,627
  
Technology
    
106,096
      
-
      
-
      
106,096
  
Services
    
79,076
      
-
      
-
      
79,076
  
Utilities
    
64,007
      
-
      
-
      
64,007
  
Other
    
55,554
      
-
      
-
      
55,554
  
Conglomerates
    
28,629
      
-
      
-
      
28,629
  
Consumer goods
    
19,365
      
-
      
-
      
19,365
  
Industrials
    
17,870
      
-
      
-
      
17,870
  
 
                                
Mutual funds:
                                
Allocation funds
    
206,513
      
-
      
-
      
206,513
  
Growth funds
    
160,184
      
-
      
-
      
160,184
  
Value funds
    
142,314
      
-
      
-
      
142,314
  
Other
    
46,975
      
-
      
-
      
46,975
  
Bond funds
    
38,117
      
-
      
-
      
38,117
  
Target date funds
    
20,440
      
-
      
-
      
20,440
  
World stock
    
11,898
      
-
      
-
      
11,898
  
Unit investment trusts
    
123,361
      
-
      
-
      
123,361
  
 
                                
Total brokerage access account
    
1,706,352
      
-
      
-
      
1,706,352
  
 
                                
Unitized stock fund
    
482,146
      
-
      
-
      
482,146
  
Common collective trust funds
    
-
      
9,098,273
      
-
      
9,098,273
  
 
                                
Total investments at fair value
  
$
31,948,739
    
$
9,098,273
    
$
-
    
$
41,047,012
  

Ecology and Environment, Inc.
401(k) Plan
Notes to Financial Statements
December 31, 2013 and 2012

6. Fair Value Measurements (continued)

December 31, 2012
  
Quoted
Prices in
Active
Market
Level I
    
Significant Other Observable Inputs
Level II
    
Significant Unobservable Inputs
Level III
    
Total
  
 
  
   
   
   
 
Mutual funds:
  
   
   
   
 
Blend funds
  
$
9,529,801
    
$
-
    
$
-
    
$
9,529,801
  
Growth funds
    
7,718,819
      
-
      
-
      
7,718,819
  
Value funds
    
4,887,715
      
-
      
-
      
4,887,715
  
Bond funds
    
3,407,038
      
-
      
-
      
3,407,038
  
Allocation funds
    
2,038,737
      
-
      
-
      
2,038,737
  
Target date funds
    
1,394,012
      
-
      
-
      
1,394,012
  
 
                                
Total mutual funds
    
28,976,122
      
-
      
-
      
28,976,122
  
 
                                
Brokerage access account:
                                
Cash and cash equivalents
    
228,385
      
-
      
-
      
228,385
  
Preferred stock
    
26,940
      
-
      
-
      
26,940
  
Common stock:
                                
Services
    
247,259
      
-
      
-
      
247,259
  
Utilities
    
157,508
      
-
      
-
      
157,508
  
Other
    
130,937
      
-
      
-
      
130,937
  
Consumer goods
    
88,411
      
-
      
-
      
88,411
  
Technology
    
87,864
      
-
      
-
      
87,864
  
Basic materials
    
43,318
      
-
      
-
      
43,318
  
Conglomerates
    
31,905
      
-
      
-
      
31,905
  
Industrials
    
6,419
      
-
      
-
      
6,419
  
 
                                
Mutual funds:
                                
Target date funds
    
133,788
      
-
      
-
      
133,788
  
Other
    
64,391
      
-
      
-
      
64,391
  
Growth funds
    
50,627
      
-
      
-
      
50,627
  
Allocation funds
    
50,249
      
-
      
-
      
50,249
  
Bond funds
    
46,431
      
-
      
-
      
46,431
  
World stock
    
28,544
      
-
      
-
      
28,544
  
Value funds
    
17,955
      
-
      
-
      
17,955
  
Unit investment trusts
    
115,922
      
-
      
-
      
115,922
  
 
                                
Total brokerage access account
    
1,556,853
      
-
      
-
      
1,556,853
  
 
                                
Unitized stock fund
    
414,885
      
-
      
-
      
414,885
  
Common collective trust fund
    
-
      
3,684,234
      
-
      
3,684,234
  
 
                                
Total investments at fair value
  
$
30,947,860
    
$
3,684,234
    
$
-
    
$
34,632,094
  
Ecology and Environment, Inc.
401(k) Plan
Notes to Financial Statements
December 31, 2013 and 2012

7. Investments

The following presents investments that represent five percent or more of the Plan’s net assets at December 31:

 
  
2013
    
2012
  
 
  
   
 
Putnam S & P 500 Index Fund, 107,185 and 0 shares, respectively
  
$
5,913,370
    
$
-
  
Putnam Equity Income A Fund 265,972 and 0 shares, respectively
  
$
5,444,456
    
$
-
  
Columbia Acorn Fund – A, 150,676 and 159,355 shares, respectively
  
$
5,391,187
    
$
4,678,649
  
Fidelity Low Priced Stock Fund, 68,587 and 58,835 shares, respectively
  
$
3,392,323
    
$
2,323,987
  
Putnam Stable Value Fund, 3,143,685 and 0 shares, respectively (A)
  
$
3,184,903
    
$
-
  
PIMCO Total Return Fund A, 248,389 and 268,309 shares, respectively
  
$
2,655,275
    
$
3,015,788
  
Franklin Growth Fund A, 37,645 and 36,149 shares, respectively
  
$
2,453,728
    
$
1,829,494
  
Harbor International Fund-Inv, 33,428 and 33,200 shares, respectively
  
$
2,351,018
    
$
2,043,478
  
DWS Equity 500 Index Fund S, 0 and 30,502 shares, respectively
  
$
-
    
$
4,876,723
  
MFS Value Fund A, 0 and 173,904 shares, respectively
  
$
-
    
$
4,408,478
  
SEI Trust Company Fixed Fund Institutional, 0 and 3,600,834 shares, respectively (B)
  
$
-
    
$
3,684,234
  
* Investment balance did not meet the 5% threshold at the respective year end.

(A) The contract value the Putnam Stable Value fund at December 31, 2013 amounted to $3,143,685 ($0 – 2012).
(B) The contract value of the SEI Trust Company Fixed fund at December 31, 2013 amounted to $0 ($3,600,834 – 2012).

The Plan’s investments for the years ended December 31, 2013 and 2012 (including gains and losses on investments bought and sold, as well as held during the year) appreciated (depreciated) in value as follows:

 
  
2013
    
2012
  
 
  
   
 
Mutual funds
  
$
4,924,531
    
$
2,804,796
  
 
                
Self Directed Brokerage access account:
                
Common stock
    
274,464
      
71,032
  
Mutual fund
    
60,996
      
57,056
  
Unit investment trust
    
29,530
      
5,501
  
Preferred stock
    
51
      
5,310
  
 
                
Total brokerage access account
    
365,041
      
138,899
  
 
                
Unitized stock fund
    
1,673
      
(200,317
)
 
                
Common collective trust funds
    
797,982
      
(71
)
 
                
 
  
$
6,089,227
    
$
2,743,307
  

Ecology and Environment, Inc.
401(k) Plan
Notes to Financial Statements
December 31, 2013 and 2012

8.
Transactions with Parties-in-Interest

As of December 31, 2013 and 2012, the Plan held certain securities issued by the Company as follows:

 
  
December 31, 2013
    
December 31, 2012
  
 
  
Number of Shares
    
Fair
Value
    
Number of Shares
    
Fair
Value
  
 
  
   
   
   
 
Unitized Stock Fund
  
   
   
   
 
Ecology and Environment, Inc.
  
   
   
   
 
Common Stock
    
36,627
    
$
407,659
      
31,648
    
$
351,926
  
 
                                
Brokerage Access Account
                                
Ecology and Environment, Inc.
                                
Common Stock
    
6,265
    
$
68,915
      
6,324
    
$
70,324
  

Dividends on Ecology and Environment, Inc. Common Stock amounted to approximately $8,289 and $16,695 during the years ended December 31, 2013 and 2012, respectively.

Plan investments include accounts with Putnam Fiduciary Trust Company (Putnam). Effective July 1, 2013 Putnam is the trustee as defined by the Plan and therefore, these transactions qualify as party-in-interest transactions. Prior to July 1, 2013, certain plan investments were shares of mutual funds and a collective investment trust made available through Mass Mutual Retirement Services (formerly known as Hartford Retirement Services, LLC) recordkeeping platform. Mass Mutual Retirement Services was the recordkeeper for the Plan.  Reliance Trust Company (“RTC”) was the trustee and custodian of plan investments that included mutual funds, the collective investment trust and the Company stock.

Fees paid by the Plan for administrative services to Putnam for the Plan year ended December 31, 2013 amounted to $1,313 ($0 – 2012). Fees paid by the Plan for administrative services to HRS for the Plan year ended December 31, 2013 amounted to $3,269 ($6,148 – 2012). Investment income from participant loans through Putnam amounted to $8,811 for the Plan year ended December 31, 2013 ($0 – 2012). Investment income from participant loans through Mass Mutual Retirement Services (formerly known as Hartford Retirement Services, LLC) amounted to $13,669 for the Plan year ended December 31, 2013 ($15,199 – 2012). The Plan sponsor pays directly any other fees related to the Plan’s operations.
Ecology and Environment, Inc.
401(k) Plan
Notes to Financial Statements
December 31, 2013 and 2012

9.
Reconciliation of Financial Statements to Form 5500

The following is a reconciliation of net assets available for plan benefits per the financial statements to the Form 5500:
 
 
  
2013
    
2012
  
 
  
   
 
Net assets available for benefits per the financial statements
  
$
41,453,143
    
$
34,930,092
  
 
                
Adjustment from contract value to fair value for fully benefit responsive investment contracts
    
41,218
      
83,400
  
 
                
Net assets available for benefits per the Form 5500
  
$
41,494,361
    
$
35,013,492
  
               
Net increase in net assets per the financial statements
  
$
6,523,051
    
$
4,647,347
  
 
                
Adjustment from contract value to fair value for fully benefit responsive investment contracts
    
(42,182
)
    
89,312
  
 
                
Net increase in net assets per the Form 5500
  
$
6,480,869
    
$
4,736,659
  
Ecology and Environment, Inc.
401(k) Plan
EIN: 16-0971022
PLAN NUMBER: 003
Schedule H - line 4i - Schedule of Assets Held at End of Year

 
  
(c) Description of Investment
  
   
 
 
  
Including Maturity Date,
  
   
 
 
(b) Identity of Issue
Rate of Interest,
  
   
 
 
Borrower, Lessor
Collateral, Par, or
  
   
 
(a) Shares
  
or Similar Party
Maturity Value
  
(d) Cost
    
(e) Current Value
  
 
 
 
  
   
 
 
Mutual Funds:
*
265,972
  
Putnam
Equity Income A
    
**
    
$
5,444,456
  
 
150,676
  
Columbia
Acorn Fund A
    
**
      
5,391,187
  
 
68,587
  
Fidelity
Low Priced Stock Fund
    
**
      
3,392,323
  
 
248,389
  
PIMCO
Total Return Fund A
    
**
      
2,655,275
  
 
37,645
  
Franklin
Franklin Growth Fund A
    
**
      
2,453,728
  
 
33,428
  
Harbor
Harbor International Fund Inv
    
**
      
2,351,018
  
 
61,747
  
MFS
Aggressive Growth Allocation Fund A
    
**
      
1,183,063
  
 
49,908
  
MFS
Growth Allocation Fund A
    
**
      
887,366
  
 
45,316
  
MFS
Total Return Fund A
    
**
      
796,664
  
 
34,590
  
T. Rowe Price
Retirement 2030 Fund
    
**
      
776,195
  
 
43,976
  
MFS
Moderate Allocation Fund A
    
**
      
714,176
  
 
29,467
  
T. Rowe Price
Retirement 2020 Fund
    
**
      
597,297
  
 
12,105
  
Victory
Small Company Opportunity Fund A
    
**
      
486,871
  
 
16,523
  
Clearbridge
Small Cap Growth A
    
**
      
468,928
  
 
19,657
  
T. Rowe Price
Retirement 2040 Fund
    
**
      
457,036
  
 
19,846
  
Neuberger Berman
Socially Responsible Fund
    
**
      
454,867
  
 
24,626
  
American Century
Inflation Adj Bond Adv
    
**
      
282,949
  
 
18,465
  
MFS
Conservative Allocation Fund A
    
**
      
265,340
  
 
10,109
  
Janus Adviser
Perkins Mid Cap Value Fund A
    
**
      
236,046
  
 
11,438
  
T. Rowe Price
Retirement 2050 Fund
    
**
      
148,355
  
 
8,804
  
T. Rowe Price
Retirement 2035 Fund
    
**
      
142,797
  
 
5,549
  
T. Rowe Price
Retirement 2010 Fund
    
**
      
98,393
  
 
2,600
  
T. Rowe Price
Retirement Income Advantage
    
**
      
38,448
  
 
1,655
  
T. Rowe Price
Retirement 2025 Fund
    
**
      
25,331
  
 
720
  
T. Rowe Price
Retirement 2045 Fund
    
**
      
11,178
  
 
42
  
T. Rowe Price
Retirement 2015 Fund
    
**
      
599
  
 
28
  
T. Rowe Price
Retirement 2055 Fund
    
**
      
355
  
     
  
Total Mutual Funds
            
29,760,241
  
 
Common Collective Trust Funds:
                
*
107,185
  
Putnam
S&P 500 Index
    
**
    
5,913,370
  
*
3,143,685
  
Putnam
Stable Value Fund
    
**
 
    
3,184,903
  
     
  
Total Common Collective Trust Funds
            
9,098,273
  
     
 
 
                
 
Unitized Stock Fund:
                
*
36,627
  
Unitized Stock Fund
Ecology and Environment, Inc.
    
**
    
407,659
  
 
-
  
Unitized Stock Fund
Federated Government Prime Obligation Fund
    
**
    
74,487
  
     
  
Total Unitized Stock Fund
            
482,146
  
     
(c) Description of Investment
        
     
Including Maturity Date,
        
   
(b) Identity of Issue
  
Rate of Interest,
  
   
 
   
Borrower, Lessor
  
Collateral, Par, or
  
   
 
(a) Shares
    
or Similar Party
  
Maturity Value
  
(d) Cost
    
(e) Current Value
  
             
 
Brokerage Access Account:
 
 
Cash and Cash Equivalents
 
 
413,395
      
-
  
Schwab Money Market Fund
    
**
      
413,395
  
 
-
      
-
  
Cash
    
**
      
971
  
             
 
            
414,366
  
             
 
                
  Common Stock                      
 
800
      
-
  
Continental Resources
    
**
      
90,016
  
*
6,265
      
-
  
Ecology and Environment, Inc
    
**
      
68,915
  
 
1,500
      
-
  
Centurylink Inc
    
**
      
47,775
  
 
800
      
-
  
Vodafone Group New ADR
    
**
      
31,448
  
 
300
      
-
  
Western Digital Corp
    
**
      
25,170
  
 
333
      
-
  
Duke Energy Corp
    
**
      
22,980
  
 
620
      
-
  
General Electric Company
    
**
      
17,379
  
 
132
      
-
  
Chevron Corporation
    
**
      
16,488
  
 
2,000
      
-
  
Just Energy Group Inc
    
**
      
14,320
  
 
1,000
      
-
  
Cons Water Co Inc Ord
    
**
      
14,100
  
 
628
      
-
  
Hydrogenics Corp
    
**
      
12,026
  
 
500
      
-
  
Pitney Bowes Inc
    
**
      
11,650
  
 
15,000
      
-
  
Makism 3D Corp
    
**
      
11,250
  
 
500
      
-
  
Delta Nat Gas Inc
    
**
      
11,190
  
 
1,000
      
-
  
Alcoa Inc
    
**
      
10,630
  
 
1,000
      
-
  
First Niagara Finl New
    
**
      
10,620
  
 
2,777
      
-
  
Renesola Ltd Adr
    
**
      
9,581
  
 
500
      
-
  
Corning Inc
    
**
      
8,910
  
 
500
      
-
  
Ford Motor Company New
    
**
      
7,715
  
 
175
      
-
  
Yandex NV Class A
    
**
      
7,551
  
 
2,000
      
-
  
Sirius XM Radio Inc
    
**
      
6,980
  
 
16,900
      
-
  
Vasomedical Inc
    
**
      
5,746
  
 
100
      
-
  
Citgroup Inc New
    
**
      
5,227
  
 
200
      
-
  
Masco Corp
    
**
      
4,554
  
 
100
      
-
  
Retailmenot Inc
    
**
      
2,879
  
 
50
      
-
  
Facebook Inc Class A
    
**
      
2,732
  
 
110
      
-
  
Clean Energy Fuels Corp
    
**
      
1,417
  
 
429
      
-
  
Chimera Invt Corp
    
**
      
1,329
  
 
1,000
      
-
  
Capstone Turbine Corp
    
**
      
1,290
  
 
100
      
-
  
Jamba Inc New
    
**
      
1,243
  
 
10
      
-
  
ETFS Gold TR
    
**
      
1,184
  
 
18
      
-
  
Citrix Systems Inc
    
**
      
1,139
  
 
91
      
-
  
Kodiak Oil & Gas Corp
    
**
      
1,020
  
 
23
      
-
  
Bonanza Creek Energy
    
**
      
1,000
  
 
25
      
-
  
Microsoft Corp
    
**
      
935
  
 
75
      
-
  
Realnetworks Inc New
    
**
      
566
  
 
950
      
-
  
Suntech Power Holdings Co
    
**
      
494
  
 
50
      
-
  
Contango Ore Inc
    
**
      
473
  
 
150
      
-
  
Cal Dive International
    
**
      
302
  
             
 
          
490,224
  
     
(c) Description of Investment
        
     
Including Maturity Date,
        
   
(b) Identity of Issue
  
Rate of Interest,
        
   
Borrower, Lessor
  
Collateral, Par, or
        
(a) Shares
    
or Similar Party
  
Maturity Value
  
(d) Cost
    
(e) Current Value
  
   
 
 
  
   
 
 
Mutual Funds
 
3,849
      
-
  
Vanguard Total Stock Market Index Signal
    
**
      
173,423
  
 
3,735
      
-
  
Icon Energy Fund Class S
    
**
      
86,797
  
 
5,772
      
-
  
First Eagle Gold Fund Class A
    
**
      
83,745
  
 
609
      
-
  
Brown Cap Mgmt Small Co Fund
    
**
      
45,128
  
 
1,290
      
-
  
T Rowe Price Capital Appreciation Fund
    
**
      
33,090
  
 
694
      
-
  
CGM Focus Fund
    
**
      
27,983
  
 
907
      
-
  
Yacktman Focused Fund
    
**
      
22,805
  
 
486
      
-
  
Fidelity Leveraged Company Stock Fund
    
**
      
21,029
  
 
722
      
-
  
Vanguard Target Retirement 2040 Fund
    
**
      
20,440
  
 
591
      
-
  
Vanguard Equity Income Fund Inc
    
**
      
17,602
  
 
1,232
      
-
  
Pimco Income D
    
**
      
15,110
  
 
1,414
      
-
  
Metropolitan West Total Return BD M
    
**
      
14,922
  
 
1,305
      
-
  
Vanguard Short Term Bond Index
    
**
      
13,688
  
 
763
      
-
  
Matthews Asia Dividend Fund
    
**
      
11,898
  
 
395
      
-
  
Schwab Small Cap Index Select
    
**
      
10,895
  
 
1,456
      
-
  
Pioneer Floating Rate
    
**
      
10,116
  
 
880
      
-
  
Pioneer Strategic Income Fund Class A
    
**
      
9,507
  
 
615
      
-
  
Powershs Exch Trad Fund Tr
    
**
      
3,930
  
 
228
      
-
  
Lazard Intl Strategic
    
**
      
3,328
  
 
27
      
-
  
Dreyfus Midcap Index Fund
    
**
      
1,005
  
             
 
            
626,441
  
 
Unit Investment Trusts   
                
 
681
      
-
  
Schw US LCAP Val ETF
    
**
      
27,731
  
 
435
      
-
  
Schwab ETFS-US Small Cap ETF
    
**
      
22,841
  
 
590
      
-
  
Sch US Mid-Cap ETF
    
**
      
22,101
  
 
216
      
-
  
Powershares QQQ Trust Ser 1
    
**
      
19,033
  
 
253
      
-
  
Schwab ETFS-US Large Cap ETF
    
**
      
11,139
  
 
144
      
-
  
Sch US Div Equity ET
    
**
      
5,278
  
 
238
      
-
  
First TR Exch Traded Fd
    
**
      
4,265
  
 
60
      
-
  
Market Vectors ETF Trust
    
**
      
3,269
  
 
48
      
-
  
Market Vectors New ETF
    
**
      
2,686
  
 
200
      
-
  
Ishares Trust S&P Global
    
**
      
2,088
  
 
58
      
-
  
Guggenheim ETF New Solar Energy
    
**
      
2,040
  
 
50
      
-
  
Alps Trust ETF
    
**
      
890
  
             
 
            
123,361
  
  Preferred Stock                     
 
1,000
      
-
  
M&T Cap TR 8.5% 1/31/68
    
**
      
26,000
  
 
1,000
      
-
  
Deutsche BK Cap 7.6% PFD
    
**
      
25,960
  
             
 
            
51,960
  
             
 
                
             
Total Brokerage Account
            
1,706,352
  
 
Participant Loans:  
                
*
-
          
Notes receivable from participants with
                
             
interest rates ranging from 4.25% - 10.50%
    
-0-
      
447,349
  
             
 
          
$
41,494,361
  

*
Indicates parties-in-interest to the Plan.
**
Cost not required to be presented for participant directed investments.

SIGNATURES

The Plan. Pursuant to the requirements of the Securities Exchange Act of 1934, the trustees (or other persons who administer the employee benefit plan) have duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized.

 
Name of Plan:
 
Ecology and Environment, Inc. 401(k) Plan
 
 
 
 
 
By:
 
Ecology and Environment, Inc. 401(k) Plan Committee Plan Administrator
 
 
 
 
Date:   June 26, 2014
By:
 
/s/ Ronald L. Frank
 
 
 
Ronald L. Frank
Committee Member
 
 
- 17 -