11-K 12.31.2014 KGS 401(k) Financials
Table of Contents

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

FORM 11-K
___________________________________________
(Mark One)
ý
ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 2014
OR
¨
TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from             to            
Commission file number 0-26058 
 ___________________________________________
A.
Full title of the plan and the address of the plan, if different from that of the issuer named below:
KFORCE GOVERNMENT PRACTICE PLAN
 
B.
Name of issuer of the securities held pursuant to the plan and the address of its principal executive office:
KFORCE INC.
1001 EAST PALM AVENUE
TAMPA, FL 33605
 



Table of Contents

KFORCE GOVERNMENT PRACTICE PLAN
TABLE OF CONTENTS
 
Page
 
 
 
 
FINANCIAL STATEMENTS:
 
 
 
 
 
 
 
 
 
SUPPLEMENTAL SCHEDULES:
 
 
 
 
 
 
 
NOTE:
  
All other schedules required by Section 2520.103-10 of the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974 have been omitted because they are not applicable.

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Directors, Participants, and Administration of the
Kforce Government Practice Plan
Tampa, Florida
We have audited the accompanying statements of net assets available for benefits of the Kforce Government Practice Plan (the “Plan”) as of December 31, 2014 and 2013 and the related statement of changes in net assets available for benefits for the year ended December 31, 2014. 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 Plan is not required at this time, 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 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 audit provides 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 the Plan as of December 31, 2014 and 2013 and the changes in net assets available for benefits for the year ended December 31, 2014 in conformity with United States generally accepted accounting principles.
Our audit was conducted for the purpose of forming an opinion on the financial statements taken as a whole. The supplemental schedule of assets (held at end of year) as of December 31, 2014 is presented for the purpose of additional analysis and is not a required part of the 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. This schedule is the responsibility of the Plan’s management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. Such schedule has been subjected to the auditing procedures applied in our audit of the 2014 financial statements. In our opinion, the information is fairly stated in all material respects when considered in relation to the financial statements taken as a whole.
 
 
/s/ Warren Averett, LLC
 
Tampa, Florida
June 26, 2015

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KFORCE GOVERNMENT PRACTICE PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
AS OF DECEMBER 31, 2014 AND 2013
 
 
2014
 
2013
Participant-directed investments at fair value
 
$
20,801,164

 
$
20,497,467

Receivables:
 
 
 
 
Employer contributions
 
243,161

 
244,808

Notes receivable from participants
 
194,215

 
276,035

Other receivable
 

 
6,127

Total receivables
 
437,376

 
526,970

Net assets available for benefits
 
21,238,540

 
21,024,437

Adjustments from fair value to contract value for fully benefit-responsive investment contract
 

 

Net assets available for benefits
 
$
21,238,540

 
$
21,024,437

See notes to financial statements.

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KFORCE GOVERNMENT PRACTICE PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
FOR THE YEAR ENDED DECEMBER 31, 2014
Investment income:
 
Net appreciation in fair value of investments
$
1,260,683

Interest and dividends
292,519

Net investment income
1,553,202

Interest income on notes receivable from participants
10,889

Contributions:
 
Participant
2,568,553

Employer
243,162

Rollovers from other qualified plans
180,140

Total contributions
2,991,855

Benefits paid to participants
(4,341,189
)
Other income
38,610

Administrative expenses
(75,231
)
Net increase in net assets
178,136

Transfers into plan
35,967

Net assets available for benefits:
 
Beginning of period
21,024,437

End of period
$
21,238,540

See notes to financial statements.

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KFORCE GOVERNMENT PRACTICE PLAN
NOTES TO FINANCIAL STATEMENTS
1.
DESCRIPTION OF THE PLAN
General—The Kforce Government Practice Plan (the “Plan”) is sponsored by Kforce Government Solutions, Inc. (“KGS”), a wholly owned subsidiary of Kforce Inc. The Plan is a defined contribution plan covering substantially all employees of KGS, except those that meet certain exceptions. Prudential Bank & Trust, FSB (“Prudential” or the “Trustee”) is the trustee of the Plan and The Prudential Insurance Company of America is the record-keeper. The Plan was established effective October 2, 2006.
The following description of the Plan is provided for general information purposes. Participants should refer to the Plan document for a more complete description of the Plan provisions. The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974 (“ERISA”).
Eligibility—All employees of KGS are eligible to participate in the Plan with the exception of the following:
Employees who are leased employees under Section 414(n) of the Internal Revenue Code (the “Code”),
Employees who are covered by a collective bargaining agreement that does not provide for participation in the Plan,
Employees who are nonresident aliens with no U.S. source earned income,
Individuals who are performing service as independent contractors or consultants, regardless of whether they are subsequently determined to be common law employees,
Employees who are not on the U.S. payroll of KGS.
Contributions—Participants may contribute up to 75% of their compensation for each year subject to the limitations provided in the Code, which was $17,500 for those under age 50 and $23,000 for those age 50 and above for 2014. KGS matching and other contributions are made at the discretion of the Board of Directors, in cash or Kforce Inc. common stock, in amounts not to exceed the maximum permitted as a deductible expense by the Code. KGS contributions, if any, are funded annually to eligible participants remaining in the Plan at each year-end. Eligible participants are employees who are active as of the last day of the Plan year and who have completed at least 1,000 hours as of the last day of the Plan year. Additionally, employees who have terminated employment because of death, total disability, or after reaching age 55, are considered eligible participants. For the year ended December 31, 2014, KGS made matching contributions equal to 25% of each participant’s eligible contributions up to 6% of compensation for the period to all eligible participants at December 31, 2014.
All contributions to the Plan are deposited with the Trustee. Contributions are then directed at the employee’s discretion into various investment options. Investment elections may be changed by the employee at any time.
Participant Accounts—Each participant’s account is self-directed and is credited with the participant’s contributions, KGS’s matching and other contributions, transfers into the Plan, rollovers and Plan earnings and is charged with withdrawals and Plan losses. The benefit to which a participant is entitled is the benefit that can be provided from the participant’s vested account balance.
Rollovers—All employees who meet the Plan eligibility requirements are eligible to make cash rollover contributions to the Plan from a previous employer’s qualified retirement plan or a conduit IRA.
Vesting—Participants are immediately vested in their contributions plus actual earnings, if any, thereon. KGS contributions and earnings, if any, vest at the rate of 20% for each year of service earned. A year of service is defined as any eligible participant who has completed at least 1,000 hours as of the last day of the Plan year. KGS contributions become 100% vested upon:
Normal retirement,
Total disability,
Death,
Completion of five years of vesting service, or
Plan termination.
In-Service Withdrawals—Participants may request the following types of in-service withdrawals from the Plan during any given calendar month:
Age 59-1/2,
Financial hardship,
Withdrawals from rollover contribution account,
Qualified reservist distribution.

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Plan Termination—Although it has not expressed any intent to do so, KGS has the right under the Plan to discontinue its contributions at any time and to terminate the Plan subject to the provisions of ERISA. In the event of Plan termination, participants will become 100% vested in their accounts and the trust shall continue until all participants’ accounts have been completely distributed to each participant (or their designated beneficiary) in accordance with the Plan.
Investments—Participants direct the investment of their contributions into various investment options offered by the Plan. KGS contributions are automatically invested in the investment options selected by each participant for their contributions.
Notes Receivable from Participants—Participants may borrow money from their vested account balance for any reason. The maximum amount available for notes receivable is the lesser of $50,000, reduced by the participant’s highest note receivable balance outstanding in the 12 months prior to the date of the note receivable, or 50% of the participant’s vested account balance. The minimum amount for a loan is $500.
Notes receivable must have a definite repayment period not to exceed five years unless the note receivable is for the purchase of a principal residence, in which case the repayment period must not exceed 15 years. Prior to the Plan’s amendment in January 2009, the repayment period for notes receivable used for the purchase of a principal residence was not to exceed 10 years. A participant who terminates employment with an outstanding note receivable must pay off the outstanding balance of the note receivable within a reasonable amount of time after termination. If the participant does not repay the entire outstanding loan balance, the participant’s vested account balance will be reduced by the remaining outstanding balance of the loan, and then any remaining outstanding balance of the note receivable is deemed to be a distribution to the participant. Notes receivable from participants, including interest thereon, are taxable to the participant and subject to applicable excise penalties upon default.
The notes receivable are collateralized by the balance in the participant’s account and bear interest at a reasonable fixed rate of interest, as defined by the Plan. Principal and interest are generally paid ratably through payroll deductions, but may also be paid directly to the Trustee.
Payment of Benefits—Upon termination of service, a participant may elect an immediate lump-sum payment. Other forms of payment are available, as defined by the Plan. Withdrawals from the Plan shall be paid to a participant, to the extent possible, in cash or Kforce Inc. common stock, as elected by the participant.
At December 31, 2014 and 2013, there were no distribution payments that were processed and approved for payment by the Plan, but not yet paid to participants.
Forfeited Accounts—Non-vested balances resulting from KGS contributions will be forfeited upon the date the participant incurs five consecutive one-year breaks in service or receives a distribution. A one-year break in service is any year a participant works less than 500 hours. For terminated employees who receive a distribution but who are re-employed during the five consecutive years following termination, the forfeiture amount shall be restored to the participant’s account if the participant pays back the full amount of the distribution within five years of the re-employment date.
Forfeited balances will be used first to fund any restorations. If any forfeitures remain unallocated, they shall be used to reduce administrative expenses payable by the Plan, to reduce employer matching contributions, if any, then to reduce employer qualified non-elective contributions, and finally to increase the employer matching contributions. Any remaining forfeitures shall be credited to a suspense account to be used for future restorations. During the year ended December 31, 2014, there was approximately $56,300 in matching contributions made using forfeited funds. The suspense account was maintained in the Guaranteed Income Fund at December 31, 2014 and 2013. Forfeited funds in the suspense account at December 31, 2014 and 2013 were approximately $66,000 and $41,800, respectively.
2.
SUMMARY OF ACCOUNTING POLICIES
Basis of Accounting—The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”).
Use of Estimates—The preparation of financial statements in conformity with GAAP requires Plan management to make estimates and assumptions that affect the reported amounts of net assets available for benefits and changes therein. Actual results could differ from those estimates.
Risks and Uncertainties—The Plan utilizes various investment instruments, including common stock, mutual funds, pooled separate accounts and investment contracts. Investment securities, in general, are exposed to various risks, such as interest rate, credit, and overall market volatility. Due to the level of risk associated with certain investment securities, it is reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect the amounts reported in the financial statements.

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Investment Valuation and Income Recognition—The Plan’s investments are stated at fair value. The Plan’s self-directed accounts hold shares of mutual funds and common stock. Shares of mutual funds are valued at quoted market prices, which represent the net asset value of shares held by the Plan at year-end. Common stock is valued at quoted market prices. The units of the pooled separate accounts are stated at fair value, as determined by the issuer of the pooled separate accounts based on the fair market value of the underlying investments, which are shares of mutual funds and common stock. The fully benefit-responsive investment contract is stated at fair value which equals contract value at December 31, 2014 and 2013 and is valued based upon the participant contributions made, plus participant transfers into the fund and credited interest, less participant withdrawals, participant transfers out of the fund and administrative expenses. The fully benefit-responsive investment contract is explained in detail in Note 4 of these financial statements.
Purchases and sales of securities are recorded on a trade-date basis. Interest income is recorded on the accrual basis. Dividends are recorded on the ex-dividend date.
Management fees and operating expenses charged to the Plan for investments in the mutual funds and in the units of pooled separate accounts are deducted from income or loss on a daily basis and are not separately reflected. Consequently, management fees and operating expenses are reflected as a reduction of investment return for such investments.
Valuation of Notes Receivable from Participants—Notes receivable from participants represent participant loans and are valued at the unpaid principal balance plus any accrued but unpaid interest.
Contributions—Employee contributions are recorded when eligible compensation is paid. Employer contributions are recorded when authorized.
Payment of Benefits—Benefits are recorded when paid.
Expenses of Plan—Administrative expenses of the Plan are paid by KGS, the Plan and/or unallocated Plan forfeitures.
Subsequent Events—KGS considers events that occur after the date of the statement of net assets available for benefits but before the financial statements are issued to determine appropriate accounting and disclosure for those events. We evaluated all events or transactions that occurred subsequent to December 31, 2014 and through the time of filing this Annual Report on Form 11-K.
Effective January 1, 2015, the Plan was amended to eliminate the right of participants to make new investments in Kforce Inc. common stock. The Plan permits participants to maintain investments in Kforce Inc. common stock that were made prior to January 1, 2015. Beginning January 1, 2015, KGS matching and other contributions must be made in cash. Benefits payable under the Plan should be paid in cash or Kforce Inc. common stock to the extent that the vested balance is invested in Kforce Inc. common stock.
3.
INVESTMENTS
The following presents the individual investments that represent 5% or more of the Plan’s net assets available for benefits at December 31, 2014 and 2013:
 
 
December 31,
Description of Investment
 
2014
 
2013
Guaranteed Income Fund (see Note 4)
 
$
3,431,220

 
$
3,298,073

Artisan International Fund
 
2,965,503

 
3,128,752

Vanguard Growth Index Admiral
 
2,818,220

 
2,632,224

Pimco Total Return Institutional Class Fund
 
2,093,203

 
1,946,317

Vanguard US Value Inv Fund
 
2,052,703

 
2,097,615

Vanguard Mid Cap Growth Fund
 
1,660,949

 
1,825,266

Vanguard Small Cap Value Index Admiral
 
1,336,707

 
1,293,744

Vanguard 500 Index Admiral
 
1,194,297

 
1,097,028


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During the year ended December 31, 2014, the Plan’s investments, including gains and losses on investments purchased, sold, and held during the year, appreciated (depreciated) in value as follows:
 
Net Realized and
Unrealized
Appreciation (Depreciation)
In Fair Value of
Investments
Mutual fund—Vanguard Growth Index Admiral
$
313,510

Mutual fund—Vanguard US Value Inv Fund
260,814

Mutual fund—Vanguard Mid Cap Growth Fund
182,161

Mutual fund—Vanguard 500 Index Admiral
120,480

Mutual fund—Vanguard Mid-Cap Value Index Admiral
111,383

Mutual fund—Vanguard Small Cap Value Index Admiral
110,915

Common stock—Kforce Inc.
83,890

Mutual fund—PIMCO Total Return Instl
46,635

Mutual fund—American Funds American Balanced R6
31,405

Mutual fund—Vanguard Small Cap Growth Index Fund
21,020

Mutual fund—Vanguard Mid Cap Index Admiral
18,544

Mutual fund—DFA Global Equity I
6,921

Mutual fund—PIMCO Real Return Instl
3,708

Mutual fund—Vanguard Small Cap Index Admiral
249

Mutual fund—DFA Intermediate Government Fixed Income I
222

Mutual fund—Federated High Yield Institutional
(1,004
)
Mutual fund—Ivy High Income Fund
(1,215
)
Mutual fund—Templeton Global Bond Adv
(3,459
)
Mutual fund—Artisan International Fund
(45,496
)
Net appreciation in fair value of investments
$
1,260,683

4.
INVESTMENT CONTRACT WITH INSURANCE COMPANY
The Plan has a fully benefit-responsive investment contract with Prudential Retirement Insurance and Annuity Company (“PRIAC”). PRIAC maintains the contributions in a general account, which is credited with earnings on the underlying investments and charged for participant withdrawals and administrative expenses. The contract is included in the financial statements at fair value, which is equal to contract value. The concept of a value other than contract value does not apply to this contract. The contract is not a traditional guaranteed investment contract as it is backed by the creditworthiness of the issuer and not by specific securities in the general account and therefore there are no known cash flows that can be discounted. Contract value represents participant contributions made, plus participant transfers into the fund and credited interest, less participant withdrawals, participant transfers out of the fund and administrative expenses. Participants may direct the withdrawal or transfer of all or a portion of their investment at contract value.
The contract has certain restrictions that impact the ability to collect the full contract value, for example, the Plan may not withdraw more than 10% of the value of the general account without incurring a penalty. Plan management believes that the possibility of the occurrence of events that would cause the Plan to transact at less than contract value is remote. In the case of discontinuance of the investment contract, the contract value would be paid no later than 90 days from the date the Plan sponsor provides notice to discontinue. PRIAC may not terminate the contract at any amount less than contract value.

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The crediting interest rate is based on contract balances using a single “portfolio rate” approach, which is guaranteed by PRIAC. Under this methodology, a single interest crediting rate is applied to all contributions made to the product regardless of the timing of those contributions, but may not be less than 1.50% before asset charges. The asset charges were 0.70% for the plan years ending December 31, 2014 and 2013. Such interest rates are reviewed on a semi-annual basis for resetting.
 
 
2014
 
2013
Average yields:
 
 
 
 
Based on annualized earnings (1)
 
1.35
%
 
1.55
%
Based on interest rate credited to participants (2)
 
1.35
%
 
1.55
%
(1)
Computed by dividing the annualized one-day actual earnings of the contract on the last day of the plan year by the fair value of the investments on the same date.
(2)
Computed by dividing the annualized one-day earnings credited to participants on the last day of the plan year by the fair value of the investments on the same date.
5.
FAIR VALUE MEASUREMENTS
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., an exit price) in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy and a framework which requires categorizing assets and liabilities into one of three levels based on the assumptions (inputs) used in valuing the asset or liability. Level 1 provides the most reliable measure of fair value, while Level 3 generally requires significant management judgment. Level 1 inputs are unadjusted, quoted market prices in active markets for identical assets or liabilities. Level 2 inputs are observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets or liabilities in inactive markets. Level 3 inputs include unobservable inputs that are supported by little, infrequent, or no market activity and reflect management’s own assumptions about inputs used in pricing the asset or liability. Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.

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The following table sets forth by level within the fair value hierarchy a summary of the Plan’s investments measured at fair value on a recurring basis at December 31, 2014 and 2013:
 
 
Fair Value Measurements at December 31, 2014
Description of Investment
 
Total
 
Quoted
Prices in
Active
Markets for
Identical
Assets
(Level  1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
Mutual funds:
 
 
 
 
 
 
 
 
International large blend fund
 
$
2,965,503

 
$
2,965,503

 
$

 
$

Large growth fund
 
2,818,220

 
2,818,220

 

 

Intermediate-term bond fund
 
2,093,203

 
2,093,203

 

 

Large value fund
 
2,052,703

 
2,052,703

 

 

Mid growth fund
 
1,660,949

 
1,660,949

 

 

Small value fund
 
1,336,707

 
1,336,707

 

 

Large blend fund
 
1,194,297

 
1,194,297

 

 

Mid value fund
 
814,592

 
814,592

 

 

Small growth fund
 
521,707

 
521,707

 

 

Moderate allocation fund
 
496,673

 
496,673

 

 

International stock fund
 
291,520

 
291,520

 

 

Mid blend fund
 
188,087

 
188,087

 

 

Inflation protected bond fund
 
118,662

 
118,662

 

 

International bond fund
 
87,958

 
87,958

 

 

High yield bond fund
 
85,704

 
85,704

 

 

Intermediate government fund
 
83,854

 
83,854

 

 

Small blend fund
 
8,975

 
8,975

 

 

Total mutual funds
 
16,819,314

 
16,819,314

 

 

Guaranteed income fund
 
3,431,220

 

 
3,431,220

 

Kforce Inc. common stock
 
550,630

 
550,630

 

 

Total
 
$
20,801,164

 
$
17,369,944

 
$
3,431,220

 
$


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Fair Value Measurements at December 31, 2013
Description of Investment
 
Total
 
Quoted
Prices in
Active
Markets for
Identical
Assets
(Level  1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
Mutual funds:
 
 
 
 
 
 
 
 
International large blend fund
 
$
3,128,752

 
$
3,128,752

 
$

 
$

Large growth fund
 
2,632,224

 
2,632,224

 

 

Large value fund
 
2,097,615

 
2,097,615

 

 

Intermediate-term bond fund
 
1,946,317

 
1,946,317

 

 

Mid growth fund
 
1,825,266

 
1,825,266

 

 

Small value fund
 
1,293,744

 
1,293,744

 

 

Large blend fund
 
1,097,028

 
1,097,028

 

 

Mid value fund
 
1,016,845

 
1,016,845

 

 

Small growth fund
 
636,058

 
636,058

 

 

Moderate allocation fund
 
401,804

 
401,804

 

 

International stock fund
 
224,267

 
224,267

 

 

Inflation protected bond fund
 
131,460

 
131,460

 

 

Mid blend fund
 
129,919

 
129,919

 

 

High yield bond fund
 
22,861

 
22,861

 

 

Small blend fund
 
43

 
43

 

 

Total mutual funds
 
16,584,203

 
16,584,203

 

 

Guaranteed income fund
 
3,298,073

 

 
3,298,073

 

Kforce Inc. common stock
 
615,191

 
615,191

 

 

Total
 
$
20,497,467

 
$
17,199,394

 
$
3,298,073

 
$

6.
FEDERAL INCOME TAX STATUS
The Internal Revenue Service issued a favorable determination letter dated March 16, 2015 for all amendments with an effective date as of or prior to January 1, 2013, determining that the Plan and related trust were designed in accordance with the applicable requirements of the Code and underlying regulations. The Plan has been amended since the effective date of the favorable determination letter; however, KGS and the plan administrator believe that the Plan is currently designed and operated in compliance with the applicable requirements of the Code and underlying regulations and that the Plan and related trust continue to be tax-exempt. Therefore, no provision for income taxes has been included in the Plan’s financial statements.
GAAP requires the Plan Administrator 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 IRS. The Plan Administrator has analyzed the tax positions taken by the Plan, and has concluded that as of December 31, 2014 and 2013 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 authorities; however, there are currently no audits for any tax periods in progress.
7.
EXEMPT PARTY-IN-INTEREST TRANSACTIONS
Certain Plan investments include an unallocated insurance contract managed by the Trustee and, therefore, these transactions qualify as exempt party-in-interest transactions. Fees paid by the Plan participants for the investment management services were included as a reduction of the return earned on each investment.
At December 31, 2014 and 2013, the Plan held 22,819 and 30,068 shares, respectively, of common stock of Kforce Inc., the parent company of the sponsoring employer.

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KFORCE GOVERNMENT PRACTICE PLAN
FORM 5500, SCHEDULE H, PART IV, LINE 4i—SCHEDULE OF ASSETS (HELD AT END OF YEAR)
AS OF DECEMBER 31, 2014
Identity of Party Involved
Description of Investment
 
Current Value
Kforce Inc.*
Common Stock
 
$
550,630

Artisan International Fund
Mutual Fund
 
2,965,503

Vanguard Growth Index Admiral
Mutual Fund
 
2,818,220

Pimco Total Return Institutional Class Fund
Mutual Fund
 
2,093,203

Vanguard US Value Inv Fund
Mutual Fund
 
2,052,703

Vanguard Mid Cap Growth Fund
Mutual Fund
 
1,660,949

Vanguard Small Cap Value Index Admiral
Mutual Fund
 
1,336,707

Vanguard 500 Index Admiral
Mutual Fund
 
1,194,297

Vanguard Mid-Cap Value Index Admiral
Mutual Fund
 
814,592

Vanguard Small Cap Growth Index Fund
Mutual Fund
 
521,707

American Funds American Balanced R6
Mutual Fund
 
496,673

DFA Global Equity I
Mutual Fund
 
291,520

Vanguard Mid Cap Index Admiral
Mutual Fund
 
188,087

PIMCO Real Return Instl
Mutual Fund
 
118,662

Templeton Global Bond Adv
Mutual Fund
 
87,958

Federated High Yield Institutional
Mutual Fund
 
85,704

DFA Intermediate Government Fixed Income I
Mutual Fund
 
83,854

Vanguard Small Cap Index Admiral
Mutual Fund
 
8,975

Guaranteed Income Fund*
Unallocated Insurance  Contract
 
3,431,220

Various Participants*
Notes receivable from participants (maturing 2015 – 2029 with interest rates at 4.25%)
 
194,215

 
 
 
$
20,995,379

*
Indicates a party-in-interest to the Plan.

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SIGNATURE
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.
 
 
 
 
 
Kforce Government Practice Plan
 
 
June 26, 2015
 
/s/ Sara R. Nichols
 
 
Sara R. Nichols
 
 
Senior Vice President and Chief Accounting Officer
of the Plan Administrator, Kforce Inc.

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EXHIBIT
Exhibit No.
  
Description
23.1
  
Consent of Warren Averett, LLC, Independent Registered Public Accounting Firm

15