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, 2012

OR

□   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, 2012 and 2011, 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
 
 
 
 
 
 
 
 
 
23.1
 
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, 2012 and 2011
 



Table of Contents

 
Page
 
 
Report of Independent Registered Public Accounting Firm
1
 
 
Financial Statements:
 
 
 
Statements of Net Assets Available for Benefits
2
 
 
Statements of Changes in Net Assets Available for Benefits
3
 
 
Notes to Financial Statements
4 – 11
 
 
Supplemental Schedule:
 
 
 
Schedule H, line 4i - Schedule of Assets Held at End of Year
12 - 14



 
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, 2012 and 2011, 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. Our audits 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 includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes 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, 2012 and 2011, and the changes in 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, 2012 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.  Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements.  The information has been subjected to the auditing procedures applied in the audits of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other procedures in accordance with auditing standards generally accepted in the United States of America.  In our opinion, the information is fairly stated in all material respects in relation to the financial statements as a whole.


/s/ Schneider Downs & Co., Inc.


Pittsburgh, Pennsylvania
­­­­­­June 28, 2013






- 1 -

 
Ecology and Environment, Inc.
401(k) Plan
Statements of Net Assets Available for Benefits
December 31,


 
 
2012
 
 
2011
 
 
 
 
 
 
 
 
Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
Investments, at fair value (see Note 6)
 
$
34,632,094
 
 
$
29,853,583
 
Notes receivable from participants
 
 
321,139
 
 
 
331,364
 
Participant contributions receivable
 
 
101,850
 
 
 
111,092
 
 
 
 
 
 
 
 
 
 
Total assets
 
 
35,055,083
 
 
 
30,296,039
 
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Excess contributions
 
 
41,591
 
 
 
19,206
 
 
 
 
 
 
 
 
 
 
Total liabilities
 
 
41,591
 
 
 
19,206
 
 
 
 
 
 
 
 
 
 
Net assets available for benefits at fair value
 
 
35,013,492
 
 
 
30,276,833
 
 
 
 
 
 
 
 
 
 
Adjustment from fair value to contract value for interest in collective trust
relating to fully benefit-responsive investment contracts
 
 
(83,400)
 
 
 
5,912
 
 
 
 
 
 
 
 
 
 
Net assets available for benefits
 
$
34,930,092
 
 
$
30,282,745
 


See accompanying notes to the financial statements.
- 2 -


Ecology and Environment, Inc.
401(k) Plan
Statements of Changes in Net Assets Available for Benefits
Years Ended December 31,


 
 
2012
 
 
2011
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Additions to net assets attributed to:
 
 
 
 
 
 
Interest
 
$
15,199
 
 
$
14,479
 
Dividends
 
 
1,013,093
 
 
 
718,099
 
Net appreciation in fair value of investments (see Note 7)
 
 
2,743,307
 
 
 
-
 
 
 
 
3,771,599
 
 
 
732,578
 
 
 
 
 
 
 
 
 
 
Contributions:
 
 
 
 
 
 
 
 
Participant
 
 
2,785,991
 
 
 
2,788,070
 
Rollovers
 
 
177,615
 
 
 
35,723
 
 
 
 
2,963,606
 
 
 
2,823,793
 
 
 
 
 
 
 
 
 
 
Total additions
 
 
6,735,205
 
 
 
3,556,371
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Deductions from net assets attributed to:
 
 
 
 
 
 
 
 
Net depreciation in fair value of investments (see Note 7)
 
 
-
 
 
 
1,031,472
 
Benefits paid to participants
 
 
2,081,710
 
 
 
1,953,911
 
Administrative expenses
 
 
6,148
 
 
 
5,460
 
Total deductions
 
 
2,087,858
 
 
 
2,990,843
 
 
 
 
 
 
 
 
 
 
Net increase
 
 
4,647,347
 
 
 
565,528
 
 
 
 
 
 
 
 
 
 
Net assets available for benefits:
 
 
 
 
 
 
 
 
Beginning of year
 
 
30,282,745
 
 
 
29,717,217
 
 
 
 
 
 
 
 
 
 
End of year
 
$
34,930,092
 
 
$
30,282,745
 


See accompanying notes to the financial statements.



- 3 -


Ecology and Environment, Inc.
401(k) Plan
Notes to Financial Statements
December 31, 2012 and 2011
 

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).

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 and bear interest at rates that range from 4.25 percent to 9.5 percent, which are 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 or beneficiary 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.  Participants are charged a one time distribution fee at the time when a participant requests a distribution from the plan.

Administration
The Plan is administered by the Company.  The Company has selected The Hartford to be the Recordkeeper of the Plan and Reliance Trust Company as the Trustee.

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.




- 4 -


Ecology and Environment, Inc.
401(k) Plan
Notes to Financial Statements
December 31, 2012 and 2011


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 net (depreciation) appreciation 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.  Delinquent notes receivable are reclassified as distributions based upon the terms of the plan document.

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 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.
- 5 -


Ecology and Environment, Inc.
401(k) Plan
Notes to Financial Statements
December 31, 2012 and 2011


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. Tax Status

The Plan is based upon a prototype plan designed by the Hartford Retirement Services, Inc. that received a favorable determination letter dated March 31, 2008.  Although the Plan has been amended since receiving the determination letter, the Plan administrator and the Plan's tax counsel believe that the Plan is designed and is currently being 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, 2012 and 2011, 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 2009.

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.

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.

- 6 -

Ecology and Environment, Inc.
401(k) Plan
Notes to Financial Statements
December 31, 2012 and 2011


6. Fair Value Measurements (continued)

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, 2012 and 2011.  There have been no changes in the methodologies used at December 31, 2012 and 2011.

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 trust 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 and December 2011 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.  Unanticipated events such as a GIC issuer's inability to meet its obligations or significant withdrawal requests from plan participants in the common collective trust could affect the recoverability of assets including the underlying investment securities of synthetic GICs.  The Plan's management does not believe that the occurrence of any such events are probable.
 
The following table sets forth by level, within the fair value hierarchy, the Plan's investments at fair value as of December 31, 2012 and 2011:
 
 
 
 
 
At 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
 
 
 
- 7 -
 
Ecology and Environment, Inc.
401(k) Plan
Notes to Financial Statements
December 31, 2012 and 2011

6. Fair Value Measurements (continued)

At December 31, 2012
  
Quoted
Prices In
Active
Market
Level 1
    
Significant
Other
Observable
Inputs
Level II
    
Significant
Unobservable
Inputs
Level III
    
Total
  
Mutual funds:
  
   
   
   
 
Other
    
133,788
      
-
      
-
      
133,788
  
Target date funds
    
64,391
      
-
      
-
      
64,391
  
Growth funds
    
50,627
      
-
      
-
      
50,627
  
Allocation fund
    
50,249
      
-
      
-
      
50,249
  
World stock funds
    
46,431
      
-
      
-
      
46,431
  
Value fund
    
28,544
      
-
      
-
      
28,544
  
Bond 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
  
 

 
 
 
 
 
At December 31, 2011
 
Quoted
Prices in
Active
Market
Level I
 
 
Significant
Other
Observable
Inputs
Level II
 
 
Significant
Unobservable
Inputs
Level III
 
 
 
 
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Mutual funds:
 
 
 
 
 
 
 
 
 
 
 
 
Blend funds
 
$
7,352,947
 
 
$
-
 
 
$
-
 
 
$
7,352,947
 
Growth funds
 
 
6,827,979
 
 
 
-
 
 
 
-
 
 
 
6,827,979
 
Value funds
 
 
4,066,836
 
 
 
-
 
 
 
-
 
 
 
4,066,836
 
Bond funds
 
 
2,604,192
 
 
 
-
 
 
 
-
 
 
 
2,604,192
 
Allocation funds
 
 
1,946,682
 
 
 
-
 
 
 
-
 
 
 
1,946,682
 
Target date funds
 
 
1,117,502
 
 
 
-
 
 
 
-
 
 
 
1,117,502
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total mutual funds
 
$
23,916,138
 
 
$
-
 
 
$
-
 
 
$
23,916,138
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Brokerage access account:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
141,080
 
 
$
-
 
 
$
-
 
 
$
141,080
 
Preferred stock
 
 
21,630
 
 
 
-
 
 
 
-
 
 
 
21,630
 
Common Stock:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Services
 
 
356,380
 
 
 
-
 
 
 
-
 
 
 
356,380
 
Utilities
 
 
76,719
 
 
 
-
 
 
 
-
 
 
 
76,719
 
Industrials
 
 
55,007
 
 
 
-
 
 
 
-
 
 
 
55,007
 
Other
 
 
35,666
 
 
 
-
 
 
 
-
 
 
 
35,666
 
Basic materials
 
 
33,868
 
 
 
-
 
 
 
-
 
 
 
33,868
 
Conglomerates
 
 
27,223
 
 
 
-
 
 
 
-
 
 
 
27,223
 
Technology
 
 
13,773
 
 
 
-
 
 
 
-
 
 
 
13,773
 
Consumer Goods
 
 
9,363
 
 
 
-
 
 
 
-
 
 
 
9,363
 
- 8 -


Ecology and Environment, Inc.
401(k) Plan
Notes to Financial Statements
December 31, 2012 and 2011
 
6. Fair Value Measurements (continued)

 
At December 31, 2011
 
 
Quoted
Prices In
Active
Market
Level 1
 
 
Significant
Other
Observable
Inputs
Level II
 
 
Significant
Unobservable
Inputs
Level III
 
 
 
Total
 
Mutual funds:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other
 
$
212,996
 
 
$
-
 
 
$
-
 
 
$
212,996
 
Target date funds
 
 
109,666
 
 
 
-
 
 
 
-
 
 
 
109,666
 
Growth funds
 
 
43,587
 
 
 
-
 
 
 
-
 
 
 
43,587
 
Allocation fund
 
 
42,701
 
 
 
-
 
 
 
-
 
 
 
42,701
 
World stock funds
 
 
23,815
 
 
 
-
 
 
 
-
 
 
 
23,815
 
Value fund
 
 
16,238
 
 
 
-
 
 
 
-
 
 
 
16,238
 
Bond funds
 
 
13,417
 
 
 
-
 
 
 
-
 
 
 
13,417
 
Unit Investment Trusts
 
 
50,332
 
 
 
-
 
 
 
-
 
 
 
50,332
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total brokerage access
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
account
 
 
1,283,461
 
 
 
-
 
 
 
-
 
 
 
1,283,461
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unitized stock fund
 
 
1,033,225
 
 
 
-
 
 
 
-
 
 
 
1,033,225
 
Common collective trust fund
 
 
-
 
 
 
3,620,759
 
 
 
-
 
 
 
3,620,759
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total investments at fair value
 
$
26,232,824
 
 
$
3,620,759
 
 
$
-
 
 
$
29,853,583
 


7. Investments

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

 
 
2012
 
 
2011
 
 
 
 
 
 
 
 
DWS Equity 500 Index Fund S, 30,502 and 29,073 shares, respectively
 
$
4,876,723
 
 
$
4,101,002
 
Columbia Acorn Fund – A, 159,355 and 146,470 shares, respectively
 
$
4,678,649
 
 
$
3,900,498
 
MFS Value Fund A, 173,904 and 160,247 shares, respectively
 
$
4,408,478
 
 
$
3,586,327
 
SEI Trust Company Fixed Fund Institutional, 3,600,834 and 3,626,671 shares, respectively (A)
 
$
3,684,234
 
 
$
3,620,759
 
PIMCO Total Return Fund A, 268,309 and 216,177 shares, respectively
 
$
3,015,788
 
 
$
2,349,841
 
Fidelity Low Priced Stock Fund, 58,835 and 48.838 shares, respectively
 
$
2,323,987
 
 
$
1,744,976
 
Harbor International Fund-Inv, 33,200 and 23,831 shares, respectively
 
$
2.043,478
 
 
$
1,239,246
*
Franklin Growth Fund A, 36,149 and 34,145 shares, respectively
 
$
1,829,494
 
 
$
1,524,230
 
 
 
 
 
 
 
 
 
 
*  Investment balance did not meet the 5% threshold at the respective year end.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(A) The contract value of the fund at December 31, 2012 and 2011 amounted to $3,600,834 ($3,626,671 – 2011).
 






- 9 -


Ecology and Environment, Inc.
401(k) Plan
Notes to Financial Statements
December 31, 2012 and 2011
 

7. Investments (continued)

The Plan's investments for the years ended December 31, 2012 and 2011 (including gains and losses on investments bought and sold, as well as held during the year) appreciated (depreciated) in value as follows:

 
 
2012
 
 
2011
 
 
 
 
 
 
 
 
Mutual funds
 
$
2,804,796
 
 
$
(1,131,171
)
 
 
 
 
 
 
 
 
 
Self Directed Brokerage access account:
 
 
 
 
 
 
 
 
Common stock
 
 
71,032
 
 
 
24,338
 
Mutual fund
 
 
57,056
 
 
 
3,649
 
Unit investment trust
 
 
5,501
 
 
 
(4,816
)
Preferred stock
 
 
5,310
 
 
 
(779
)
 
 
 
 
 
 
 
 
 
Total brokerage access account
 
 
138,899
 
 
 
22,392
 
 
 
 
 
 
 
 
 
 
Unitized stock fund
 
 
(200,317
)
 
 
77,315
 
 
 
 
 
 
 
 
 
 
Common collective trust fund
 
 
(71
)
 
 
(8
)
 
 
 
 
 
 
 
 
 
 
 
$
2,743,307
 
 
$
(1,031,472
)


8. Transactions with Parties-in-Interest

  As of December 31, 2012 and 2011, the Plan held certain securities issued by the Company as follows:

 
 
December 31, 2012
 
 
December 31, 2011
 
 
 
Number of Shares
 
 
Fair
Value
 
 
Number of
 Shares
 
 
Fair
Value
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unitized Stock Fund
 
 
 
 
 
 
 
 
 
 
 
 
Ecology and Environment, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
Common Stock
 
 
31,648
 
 
$
351,926
 
 
 
54,907
 
 
$
887,297
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Brokerage Access Account
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ecology and Environment, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Common Stock
 
 
6,324
 
 
$
70,324
 
 
 
6,468
 
 
$
104,524
 


  Dividends on Ecology and Environment, Inc. Common Stock amounted to approximately $16,695 and $25,453 during the years ended December 31, 2012 and 2011, respectively.

  Certain plan investments are shares of mutual funds and a collective investment trust made available through the Hartford Retirement Services, LLC ("HRS") recordkeeping platform.  HRS is the recordkeeper for the Plan.  Reliance Trust Company ("RTC") is the trustee and custodian of plan investments that include mutual funds, the collective investment trust and the Company stock.
- 10 -

Ecology and Environment, Inc.
401(k) Plan
Notes to Financial Statements
December 31, 2012 and 2011


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.

 
 
2012
 
 
2011
 
 
 
 
 
 
 
 
Net assets available for benefits per the financial statements
 
$
34,930,092
 
 
$
30,282,745
 
 
 
 
 
 
 
 
 
 
Adjustment from contract value to fair value for fully benefit responsive investment contracts
 
 
83,400
 
 
 
(5,912
)
 
 
 
 
 
 
 
 
 
Net assets available for benefits per the Form 5500
 
$
35,013,492
 
 
$
30,276,833
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net increase in net assets per the financial statements
 
$
4,647,347
 
 
$
565,528
 
 
 
 
 
 
 
 
 
 
Adjustment from contract value to fair value for fully benefit responsive investment contracts
 
 
89,312
 
 
 
68,326
 
 
 
 
 
 
 
 
 
 
Net increase in net assets per the Form 5500
 
$
4,736,659
 
 
$
633,854
 

 


- 11 -

 
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
 
 
 
 
 
 
 
 
 
 
 
(a) Shares
 
(b)  Identity of Issue
      Borrower, Lessor
      or Similar Party
 
(c)  Description of Investment including Maturity Date, Rate of Interest, Collateral, Par, or Maturity Value
 
(d) Cost
 
(e) Current Value
 
 
 
 
 
 
 
 
 
 
 
Mutual Funds:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
30,502
 
DWS
 
Equity 500 Index Funds
 
**
 
$4,876,723
 
159,355
 
Columbia
 
Acorn Fund A
 
**
 
4,678,649
 
173,904
 
MFS
 
Value Fund A
 
**
 
4,408,478
 
268,309
 
PIMCO
 
Total Return Fund A
 
**
 
3,015,788
 
58,835
 
Fidelity
 
Low Priced Stock Fund
 
**
 
2,323,987
 
33,200
 
Harbor
 
Harbor International Fund Inv
 
**
 
2,043,478
 
36,149
 
Franklin
 
Franklin Growth Fund A
 
**
 
1,829,494
 
69,444
 
MFS
 
Aggressive Growth Allocation Fund A
 
**
 
1,074,296
 
44,496
 
MFS
 
Growth Allocation Fund A
 
**
 
672,773
 
42,431
 
MFS
 
Total Return Fund A
 
**
 
645,378
 
30,682
 
T. Rowe Price
 
Retirement 2030 Fund
 
**
 
577,123
 
36,932
 
MFS
 
Moderate Allocation Fund A
 
**
 
536,248
 
29,798
 
American Century
 
Inflation Adj Bond Adv
 
**
 
391,250
 
20,180
 
T. Rowe Price
 
Retirement 2020 Fund
 
**
 
359,011
 
17,145
 
T. Rowe Price
 
Retirement 2040 Fund
 
**
 
325,237
 
8,973
 
Victory
 
Small Company Opportunity Fund A
 
**
 
289,844
 
15,472
 
Neuberger Berman
 
Socially Responsible Fund
 
**
 
285,613
 
8,883
 
Janus Advisor
 
Perkins Mid Cap Value Fund A
 
**
 
189,393
 
13,574
 
MFS
 
Conservative Allocation Fund A
 
**
 
184,338
 
6,785
 
Clearbridge
 
Small Cap Growth A
 
**
 
136,380
 
6,841
 
T. Rowe Price
 
Retirement 2050 Fund
 
**
 
72,442
 
3,668
 
T. Rowe Price
 
Retirement 2010 Fund
 
**
 
60,199
 
 
 
 
 
Total Mutual Funds
 
 
 
28,976,122
 
 
 
 
 
 
 
 
 
Common Collective Trust Fund:
 
 
 
 
 
 
 
3,600,834
 
SEI Trust Company
 
Fixed Fund Institutional
 
**
 
3,684,234
 
 
 
 
 
 
 
 
 
 
 
Unitized Stock Fund
 
 
 
 
 
 
*
31,648
 
Unitized Stock Fund
 
Ecology and Environment, Inc.
 
**
 
351,926
 
62,959
 
Unitized Stock Fund
 
MFS Money Market Fund
 
**
 
62,959
 
 
 
 
 
Total Unitized Stock Fund
 
 
 
414,885


- 12 -



 
(a) Shares
 
(b)  Identity of Issue
       Borrower, Lessor
       or Similar Party
 
(c)  Description of Investment including Maturity Date, Rate of Interest, Collateral,  Par, or Maturity Value
 
(d) Cost
 
(e) Current
  Value
 
 
 
 
 
 
 
 
 
 
 
Brokerage Access Account:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and Cash Equivalents
 
 
 
 
 
 
 
227,679
 
-
 
Schwab Money Market Fund
 
**
 
227,679
 
-
 
-
 
Cash
 
**
 
706
 
 
 
 
 
 
 
 
 
228,385
 
 
 
 
 
 
 
 
 
Common Stock
 
 
 
 
 
 
 
14,000
 
-
 
Tivo Inc
 
**
 
172,340
 
53,100
 
-
 
Vestas Wind Sys A/S ADR
 
**
 
100,094
 
4,150
 
-
 
Irobot Corp
 
**
 
77,771
  *
6,324
 
-
 
Ecology and Environment, Inc.
 
**
 
70,324
 
1,000
 
-
 
Centurylink Inc.
 
**
 
39,120
 
1,100
 
-
 
Freeport-Mcmoran Copper & Gold, Inc.
 
**
 
37,620
 
1,520
 
-
 
General Electric Company
 
**
 
31,905
 
4,500
 
-
 
Halcon Resources New
 
**
 
31,140
 
1,000
 
-
 
Vodafone Group New ADR
 
**
 
25,190
 
333
 
-
 
Duke Energy Corp
 
**
 
21,245
 
500
 
-
 
Western Digital Corp
 
**
 
21,245
 
500
 
-
 
Merck & Co Inc. New
 
**
 
20,470
 
1,000
 
-
 
Getty Realty Corp New
 
**
 
18,060
 
666
 
-
 
Aqua America Inc.
 
**
 
16,930
 
1,527
 
-
 
Seagate Technology PLC F
 
**
 
15,210
 
1,000
 
-
 
Pitney Bowes Inc.
 
**
 
10,640
 
500
 
-
 
Delta Nat Gas Inc.
 
**
 
9,775
 
200
 
-
 
Transcanada Corp
 
**
 
9.464
 
1,000
 
-
 
First Niagara Finl New
 
**
 
7,930
 
500
 
-
 
Fifth Third Bancorp
 
**
 
7,600
 
10,000
 
-
 
Guided Therapeutics Inc
 
**
 
6,800
 
500
 
-
 
Ford Motor Company New
 
**
 
6,475
 
500
 
-
 
Corning Inc
 
**
 
6,310
 
1,000
 
-
 
Novagold Red Inc New
 
**
 
4,510
 
1,500
 
-
 
Sirius XM Radio Inc
 
**
 
4,335
 
100
 
-
 
Citigroup Inc New
 
**
 
3,965
 
200
 
-
 
Masco Corp
 
**
 
3,332
 
456
 
-
 
Hydrogenics Corp
 
**
 
3,087
 
1,550
 
-
 
Suntech Power Holdings Co
 
**
 
2,372
 
1.027
 
-
 
Renesola Ltd Adr
 
**
 
2,352
 
12,900
 
-
 
Vasomedical Inc
 
**
 
2,309
 
382
 
-
 
Chimera Invt Corp
 
**
 
998
 
800
 
-
 
Brigus Gold Corp
 
**
 
752
 
25
 
-
 
Microsoft Corp
 
**
 
668
 
75
 
-
 
Realnetworks Inc New
 
**
 
567
 
50
 
-
 
Contango Ore Inc
 
**
 
436
 
150
 
-
 
Cal Dive International
 
**
 
260
 
40
 
-
 
Plug Power Inc New
 
**
 
20
 
 
 
 
 
 
 
 
 
793,621

- 13 -



 
(a) Shares
 
(b)  Identity of Issue
       Borrower, Lessor
       or Similar Party
 
(c)  Description of Investment including Maturity Date, Rate of Interest, Collateral, Par, or Maturity Value
 
(d) Cost
 
(e) Current
   Value
 
 
 
 
 
 
 
 
 
 
 
Mutual Funds
 
 
 
 
 
 
 
5,988
 
-
 
Vanguard Target Retirement 2025 Fund
 
**
 
81,372
 
3,995
 
-
 
T Rowe Price Retirement 2025 Fund
 
**
 
52,416
 
599
 
-
 
Brown Cap Mgmt Small Co Fund
 
**
 
30,292
 
1,215
 
-
 
T Rowe Price Capital Appreciation Fund
 
**
 
27,028
 
2,362
 
-
 
Pimco Total Return FD CL D
 
**
 
26,549
 
477
 
-
 
Permanent Portfolio
 
**
 
23,221
 
694
 
-
 
CGM Focus Fund
 
**
 
20,335
 
1,002
 
-
 
Lazard Emerging Markets Equity Open
 
**
 
20,076
 
790
 
-
 
Matthews China Investor
 
**
 
18,544
 
875
 
-
 
Yacktman Focused Fund
 
**
 
17,955
 
483
 
-
 
Fidelity Leveraged Company Stock FD
 
**
 
15,565
 
1,287
 
-
 
Vanguard Short Term Bond Index
 
**
 
13,679
 
804
 
-
 
Berwyn Income Fund
 
**
 
10,577
 
1,456
 
-
 
Pioneer Floating Rate
 
**
 
10,102
 
686
 
-
 
Matthews Asia Dividend Fund
 
**
 
10,000
 
513
 
-
 
Schwab Treasury Inflation Protected
 
**
 
6,203
 
193
 
-
 
Schwab Small Cap Index Select
 
**
 
4,073
 
980
 
-
 
Powershs Exch Trad Fd Tr
 
**
 
3,998
 
 
 
 
 
 
 
391,985
 
 
 
 
 
 
 
 
 
Unit Investment Trusts
 
 
 
 
 
 
 
500
 
-
 
Sector Spdr Tr Con Svcs
 
**
 
19,940
 
1000
 
-
 
Ishares TR Comex Gold
 
**
 
16,279
 
399
 
-
 
Schwab ETFS-US Small Cap ETF
 
**
 
15,210
 
540
 
-
 
Sch US Mid-Cap ETF
 
**
 
15,061
 
213
 
-
 
Powershares QQQ Trust Ser 1
 
**
 
13,904
 
429
 
-
 
Schw US LCAP Val ETF
 
**
 
13,657
 
470
 
-
 
Market Vectors ETF Trust
 
**
 
5,189
 
475
 
-
 
First TR Exch Traded Fd
 
**
 
4,413
 
60
 
-
 
Spdr S&P Global ETF
 
**
 
3,094
 
100
 
-
 
Sch US Reit ETF
 
**
 
3,064
 
400
 
-
 
Ishares Trust S&P Global
 
**
 
2,868
 
100
 
-
 
EGA Emerging Global
 
**
 
2,664
 
37
 
-
 
Guggenheim ETF New Solar Energy
 
**
 
579
 
 
 
 
 
 
 
115,922
 
Preferred Stock
 
 
 
 
 
 
 
1,000
 
-
 
Deutsche BK Cap 7.6% PFD
 
**
 
26,940
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Brokerage Account
 
 
 
1,556,853
 
 
 
 
 
 
 
 
 
 
 
Participant Loans:
 
 
 
 
 
 
*
-
 
 
 
Notes receivable from participants with
 
 
 
 
 
 
 
 
 
interest rates ranging from 4.25% - 9.50%
 
-0-
 
321,139
 
 
 
 
 
 
 
 
 
$               34,953,233
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 * 
   Indicates parties-in-interest to the Plan.
 
 
 
 
** 
  Cost not required to be presented for participant directed investments.
 
 
 
 

- 14 -




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:   06/28/2013
By:
 
/s/ Ronald L. Frank
 
 
 
Ronald L. Frank
Committee Member