10-Q/A

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q/A

þ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended October 31, 2012

o Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from __________ to __________

 Commission File Number 1-9065

ECOLOGY AND ENVIRONMENT, INC.

(Exact name of registrant as specified in its charter)

New York	16-0971022
(State or other jurisdiction of incorporation or organization)	(IRS Employer Identification Number)
368 Pleasant View Drive
Lancaster, New York	14086
(Address of principal executive offices)	(Zip code)

(716)  684-8060

(Registrant's telephone number, including area code)

Not Applicable

   (Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months, (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.   Yes þ   No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulations S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).   Yes o    No þ

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company (as defined in Exchange Act Rule 12b-2). (Check one):

Large accelerated filer	o	Accelerated filer	o
Non-accelerated filer (Do not check if a smaller reporting company)	o	Smaller reporting company	þ

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes  o   No  þ

At December 1, 2012, 2,600,144 shares of Registrant's Class A Common Stock (par value $.01) and 1,643,773 shares of Class B Common Stock (par value $.01) were outstanding.

Explanation of First Amendment

The Registrant, Ecology and Environment, Inc., (the “Company” or “EEI”), filed a Form 10-Q on December 19, 2012 with the Securities and Exchange Commission (the “SEC”).   Attached, complete with detailed tagging, are the Interactive Data for that filing.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	Ecology and Environment, Inc.
Date:     January 4, 2013	By:	/s/ H. John Mye III
		H. John Mye III
		Vice President, Treasurer and Chief Financial Officer – Principal Financial and Accounting Officer

EX-31.1

Exhibit 31.1

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER

I, KEVIN S. NEUMAIER, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Ecology and Environment, Inc.

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report.

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operation and cash flows of the Registrant as of, and for, the periods presented in this report.

4. The Registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:

  (a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

  (b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

  (c) evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

  (d) disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

5. The Registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions):

  (a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and

  (b) any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.

		ECOLOGY AND ENVIRONMENT, INC.
Date:	January 4, 2013	/s/ Kevin S. Neumaier
		Kevin S. Neumaier President and Chief Executive Officer (Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER

I, H. JOHN MYE III, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Ecology and Environment, Inc.

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report.

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operation and cash flows of the Registrant as of, and for, the periods presented in this report.

4. The Registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:

  (a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

  (b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

  (c) evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

  (d) disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

5. The Registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions):

  (a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and

  (b) any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.

		ECOLOGY AND ENVIRONMENT, INC.
Date:	January 4, 2013	/s/ H. John Mye III
		H. John Mye III Vice President, Treasurer and Chief Financial Officer (Principal Financial Officer)

EX-32.1

Exhibit 32.1

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE

SARBANES-OXLEY ACT OF 2002

I, KEVIN S. NEUMAIER, the principal executive officer of Ecology and Environment, Inc. (the "Company") hereby certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, to the best of my knowledge: that the Form 10-Q of the Company for the first quarter ended October 31, 2012 accompanying this certification (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that the information contained in the Report fairly presents, in all material respects, the financial condition and the results of operations of the Company.  This Certification is made to comply with the provisions of Section 906 of the Sarbanes-Oxley Act and is not intended to be used for any other purpose.

		ECOLOGY AND ENVIRONMENT, INC.
Date:	January 4, 2013	/s/ Kevin S. Neumaier
		Kevin S. Neumaier President and Chief Executive Officer (Principal Executive Officer)

EX-32.2

 Exhibit 32.2

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE

SARBANES-OXLEY ACT OF 2002

I, H. JOHN MYE III, the principal financial officer of Ecology and Environment, Inc. (the "Company") hereby certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, to the best of my knowledge, that the Form 10-Q of the Company for the first quarter ended October 31, 2012 accompanying this certification (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that the information contained in the Report fairly presents, in all material respects, the financial condition and the results of operations of the Company.  This Certification is made to comply with the provisions of Section 906 of the Sarbanes-Oxley Act and is not intended to be used for any other purpose.

		ECOLOGY AND ENVIRONMENT, INC.
Date:	January 4, 2013	/s/ H. John Mye III
		H. John Mye III Vice President, Treasurer and Chief Financial Officer (Principal Financial Officer)

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Income Taxes (Details)	3 Months Ended
	Oct. 31, 2012	Oct. 29, 2011
Income Taxes [Abstract]
Estimated effective tax rate (in hundredths)	39.50%	32.60%

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Supplemental Cash Flow Information Disclosure (Details) (USD $)	3 Months Ended
	Oct. 31, 2012	Oct. 29, 2011	Jul. 31, 2012
Supplemental Cash Flow Information Disclosure [Abstract]
Cash paid for interest	$ 82,000	$ 73,000
Cash paid for income taxes	600,000	900,000
Dividends paid	1,018,783	1,028,881
Accrued dividends payable		$ 1,000,000	$ 1,000,000

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Segment Reporting (Tables)

3 Months Ended

Oct. 31, 2012

Segment Reporting [Abstract]

Segment Reporting

Segment information as of October 31, 2012 approximates the following:

Geographic information:

	Revenue		Gross Long- Lived Assets
United States	$	24,810,000	$	29,899,000
Foreign countries		12,012,000		5,440,000

(1)  Revenue is attributed to countries based on the location of the customers.  Revenues in the most significant foreign countries include $3.5 million in Peru, $4.1 million in Brazil and $2.5 million in Chile.

Segment information as of October 29, 2011 approximates the following:

Geographic information:

	Revenue		Gross Long- Lived Assets
United States	$	28,430,000	$	26,470,000
Foreign countries		13,882,000		5,187,000

 (1)  Revenue is attributed to countries based on the location of the customers.  Revenues in the most significant foreign countries include $3.6 million in Peru, $4.1 million in Brazil and $2.5 million in Chile.

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Subsequent Event

3 Months Ended

Oct. 31, 2012

Subsequent Event [Abstract]

Subsequent Event

16. Subsequent Event

The Company's majority owned subsidiary Walsh Environmental Scientists and Engineers, LLC (Walsh), at its most recent board meeting approved purchasing an additional 7% of its majority owned subsidiary Gustavson Associates, LLC (Gustavson) from a minority shareholder.  The share purchase with take place prior to December 31, 2012, and with this purchase Walsh will increase its ownership percentage of Gustavson to 78%.

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Shareholders' Equity (Details) (USD $)	3 Months Ended		12 Months Ended			12 Months Ended					3 Months Ended	12 Months Ended		3 Months Ended	12 Months Ended	3 Months Ended	12 Months Ended	3 Months Ended	12 Months Ended	3 Months Ended	12 Months Ended	3 Months Ended	12 Months Ended	3 Months Ended	12 Months Ended	3 Months Ended	12 Months Ended	3 Months Ended	12 Months Ended	3 Months Ended	12 Months Ended				3 Months Ended
	Oct. 31, 2012	Oct. 29, 2011	Jul. 31, 2012	Jan. 04, 2012	Aug. 31, 2010	Jul. 31, 2012 Gustavson [Member]	Jul. 31, 2012 Walsh 01 [Member]	Jul. 31, 2012 Walsh 02 [Member]	Jul. 31, 2012 Ecology and Environment do Brasil LTDA [Member]	Jul. 31, 2012 Walsh 03 [Member]	Oct. 29, 2011 Lowham [Member]	Jul. 31, 2012 Walsh Peru [Member]	Jul. 31, 2012 Gestion Ambiental Consultores [Member]	Oct. 31, 2012 Noncontrolling Interest [Member]	Jul. 31, 2012 Noncontrolling Interest [Member]	Oct. 31, 2012 Noncontrolling Interest [Member] Gustavson [Member]	Jul. 31, 2012 Noncontrolling Interest [Member] Gustavson [Member]	Oct. 31, 2012 Noncontrolling Interest [Member] Walsh 01 [Member]	Jul. 31, 2012 Noncontrolling Interest [Member] Walsh 01 [Member]	Oct. 31, 2012 Noncontrolling Interest [Member] Walsh 02 [Member]	Jul. 31, 2012 Noncontrolling Interest [Member] Walsh 02 [Member]	Oct. 31, 2012 Noncontrolling Interest [Member] Ecology and Environment do Brasil LTDA [Member]	Jul. 31, 2012 Noncontrolling Interest [Member] Ecology and Environment do Brasil LTDA [Member]	Oct. 31, 2012 Noncontrolling Interest [Member] Walsh 03 [Member]	Jul. 31, 2012 Noncontrolling Interest [Member] Walsh 03 [Member]	Oct. 31, 2012 Noncontrolling Interest [Member] Lowham [Member]	Jul. 31, 2012 Noncontrolling Interest [Member] Lowham [Member]	Oct. 31, 2012 Noncontrolling Interest [Member] Walsh Peru [Member]	Jul. 31, 2012 Noncontrolling Interest [Member] Walsh Peru [Member]	Oct. 31, 2012 Noncontrolling Interest [Member] Gestion Ambiental Consultores [Member]	Jul. 31, 2012 Noncontrolling Interest [Member] Gestion Ambiental Consultores [Member]	Jan. 04, 2012 Walsh [Member]	Dec. 14, 2011 Ecology and Environment do Brasil LTDA [Member]	Nov. 18, 2011 Walsh Peru [Member]	Oct. 31, 2012 Common Class A [Member]
Class A and Class B common stock [Abstract]
Percentage equity holders entitled to elect Board of Directors (in hundredths)																																			25.00%
Minimum percentage of the number of outstanding Class A shares to combined classes of shares (in hundredths)																																			10.00%
Voting power of Class A common share holders to the Class B common share holders (in hundredths)																																			0.10%
Dividends, Cash [Abstract]
Cash dividends declared	$ 0	$ 0	$ 2,000,000												$ 0
Accrued dividends payable		1,000,000	1,000,000
Stock Repurchase [Abstract]
Number of shares authorized to be repurchased (in shares)					200,000
Remaining number of shares authorized to be repurchased (in shares)	93,173
Business Acquisition [Line Items]
Purchase of noncontrolling interest	30,002	61,750	128,000
Interest Acquired (in hundredths)																																1.30%	4.00%	3.90%
Acquisition price				254,000																													180,000	432,000
Percentage of acquisition paid in cash (in hundredths)																																66.00%
Percentage of acquisition paid with stock (in hundredths)																																33.333%
Number of additional purchases of noncontrolling interest			3
Schedule of Equity Method Investments [Line Items]
Issuance of shares to noncontrolling interests														0	41,634	0	41,634
Transfers from noncontrolling interest	0	2,289												(30,002)	(619,775)			0	(73,748)	0	(269,064)	0	77,539	0	(94,601)	(30,002)	0	0	(213,917)	0	(7,452)
Transfers to (from) noncontrolling interest														$ (30,002)	$ (539,609)
Shares issued (in shares)						600
Shares repurchased (in shares)							152	496	5,389	166	75	26,482	25

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Line of Credit (Details) (USD $) In Millions, unless otherwise specified			12 Months Ended
	Oct. 31, 2012	Jul. 31, 2012	Jul. 31, 2012 Unsecured Line of Credit [Member]	Jul. 31, 2012 Other Lines of Credit [Member]
Line of Credit Facility [Line Items]
Borrowing capacity			$ 32.5	$ 1.6
Interest rate, minimum (in hundredths)			2.50%	4.50%
Interest rate, maximum (in hundredths)			3.00%	5.00%
Amount outstanding	16.1	14.9
Letters of credit outstanding	1.5	4.1
Available borrowing capacity	$ 18.0

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Subsequent Event (Details) (Subsequent Event [Member], Gustavson [Member])	3 Months Ended
	Oct. 31, 2012
Subsequent Event [Member] | Gustavson [Member]
Subsequent Event [Line Items]
Interest Acquired (in hundredths)	7.00%
Percentage of ownership after transaction (in hundredths)	78.00%

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Summary of Operations and Basis of Presentation

3 Months Ended

Oct. 31, 2012

Summary of Operations and Basis of Presentation [Abstract]

Summary of Operations and Basis of Presentation

Summary of Operations and Basis of Presentation

The consolidated financial statements included herein have been prepared by Ecology and Environment, Inc. ("E&E" or the "Company"), without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. The financial statements reflect all adjustments that are, in the opinion of management, necessary for a fair statement of such information. All such adjustments are of a normal recurring nature.  The Company follows the same accounting policies in preparation of interim reports. Although E&E believes that the disclosures are adequate to make the information presented not misleading, certain information and footnote disclosures, including a description of significant accounting policies normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America, have been condensed or omitted pursuant to such rules and regulations. Therefore, these financial statements should be read in conjunction with the consolidated financial statements and the notes thereto included in E&E's 2012 Annual Report on Form 10-K filed with the Securities and Exchange Commission. The consolidated results of operations for the three months ended October 31, 2012 are not necessarily indicative of the results for any subsequent period or the entire fiscal year ending July 31, 2013.

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Earnings Per Share (Details) (USD $)	3 Months Ended		12 Months Ended
	Oct. 31, 2012	Oct. 29, 2011	Jul. 31, 2012
Earnings Per Share [Abstract]
Net income available to common stockholders	$ 242,527	$ 1,159,777
Dividend declared	0	0	2,000,000
Undistributed earnings	$ 242,527	$ 1,159,777
Weighted average common shares outstanding: basic and diluted (in shares)	4,244,010	4,203,445
Distributed earnings per share (in dollars per share)	$ 0	$ 0
Undistributed earnings per share (in dollars per share)	$ 0.06	$ 0.28
Net income per common share: basic and diluted (in dollars per share)	$ 0.06	$ 0.28
Minimum percentage right of Class B common stock holders to elect Board of Directors (in hundredths)	75.00%

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Debt and Capital Lease Obligations (Tables)

3 Months Ended

Oct. 31, 2012

Debt and Capital Lease Obligations [Abstract]

Debt Inclusive of Capital Lease Obligations

Debt inclusive of capital lease obligations consists of the following:

	October 31, 2012			July 31, 2012
Various bank loans and advances at interest rates ranging from 5% to 14%	$	324,296		$	372,744
Capital lease obligations at varying interest rates averaging 11%		216,560			218,351
		540,856			591,095
Current portion of long-term debt and capital lease obligations		(453,611	)		(488,460	)
Long-term debt and capital lease obligations	$	87,245		$	102,635

Aggregate Maturities of Long-term Debt and Capital Lease Obligations

The aggregate maturities of long-term debt and capital lease obligations at October 31, 2012 are as follows:

	Amount
November 2012 – October 2013	$	453,611
November 2013 – October 2014		69,945
November 2014 – October 2015		17,300
November 2015 – October 2016		---
November 2016 – October 2017		---
Thereafter		---
	$	540,856

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Contract Receivables, net (Tables)

3 Months Ended

Oct. 31, 2012

Contract Receivables, net [Abstract]

Contract Receivables, net

	October 31, 2012			July 31, 2012
Billed	$	40,781,996		$	42,977,016
Unbilled		31,193,272			28,829,818
		71,975,268			71,806,834
Allowance for doubtful accounts and contract adjustments		(11,322,000	)		(10,238,391	)
	$	60,653,268		$	61,568,443

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Segment Reporting (Details) (USD $)	3 Months Ended
	Oct. 31, 2012		Oct. 29, 2011
United States [Member]
Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Line Items]
Revenue	$ 24,810,000	[1]	$ 28,430,000	[2]
Gross Long-Lived Assets	29,899,000	[1]	26,470,000	[2]
Foreign Countries [Member]
Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Line Items]
Revenue	12,012,000	[1]	13,882,000	[2]
Gross Long-Lived Assets	5,440,000	[1]	5,187,000	[2]
Peru [Member]
Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Line Items]
Revenue	3,500,000		3,600,000
Brazil [Member]
Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Line Items]
Revenue	4,100,000		4,100,000
Chile [Member]
Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Line Items]
Revenue	$ 2,500,000		$ 2,500,000

[1] Revenue is attributed to countries based on the location of the customers. Revenues in the most significant foreign countries include $3.5 million in Peru, $4.1 million in Brazil and $2.5 million in Chile.

[2] Revenue is attributed to countries based on the location of the customers. Revenues in the most significant foreign countries include $3.6 million in Peru, $4.1 million in Brazil and $2.5 million in Chile.

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Other Accrued Liabilities (Tables)

3 Months Ended

Oct. 31, 2012

Other Accrued Liabilities [Abstract]

Other Accrued Liabilities

	October 31,  2012		July 31, 2012
Allowance for contract adjustments	$	2,723,974	$	2,724,474
Other		1,105,699		1,208,114
	$	3,829,673	$	3,932,588

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Shareholders' Equity (Tables)

3 Months Ended

Oct. 31, 2012

Shareholders' Equity [Abstract]

Effects of Changes in Ownership Interest in Subsidiaries

Effects of changes in E&E's ownership interest in its subsidiaries on E&E's equity:

	Three months ended October 31, 2012			Fiscal year ended July 31, 2012
Transfers to noncontrolling interest:
Sale of 600 Gustavson common shares	$	---		$	41,634
Total transfers to noncontrolling interest		---			41,634
Transfers from noncontrolling interest:
Purchase of 152 Walsh common shares		---			(73,748	)
Purchase of  496 Walsh common shares		---			(269,064	)
Purchase of  5,389 Brazil common shares		---			77,539
Purchase of 26,482 Walsh Peru common shares		---			(213,917	)
Purchase of 166 Walsh common shares		---			(94,601	)
Purchase of 25 Gestion Ambiental Consultores common shares		---			(7,452	)
Purchase of 75 Lowham common shares		(30,002	)		---
Total transfers from noncontrolling interest		(30,002	)		(581,243	)
Transfers to (from) noncontrolling interest	$	(30,002	)	$	(539,609	)

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Consolidated Statements of Comprehensive Income (USD $)	3 Months Ended
	Oct. 31, 2012	Oct. 29, 2011
Comprehensive Income (Loss) [Abstract]
Net income including noncontrolling interests	$ 543,096	$ 1,405,267
Foreign currency translation adjustments	116,992	(188,583)
Unrealized investment gain (loss), net	40,616	(222)
Purchase of additional noncontrolling interests	0	2,289
Comprehensive income	700,704	1,218,751
Comprehensive income attributable to noncontrolling interests	(295,397)	(245,637)
Comprehensive income attributable to Ecology and Environment, Inc.	$ 405,307	$ 973,114

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Earnings Per Share (Tables)

3 Months Ended

Oct. 31, 2012

Earnings Per Share [Abstract]

Computation of Basic Earnings per Share Reconciled to Diluted Earnings per Share

            The computation of basic earnings per share reconciled to diluted earnings per share follows:

	Three months ended
	October 31, 2012		October 29, 2011
Total income available to common stockholders	$	242,527	$	1,159,777
Dividend declared		---		---
Undistributed earnings		242,527		1,159,777
Weighted-average common shares outstanding (basic)		4,244,010		4,203,445
Distributed earnings per share	$	---	$	---
Undistributed earnings per share		.06		.28
Total earnings per share	$	.06	$	.28

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Other Accrued Liabilities (Details) (USD $)	Oct. 31, 2012	Jul. 31, 2012
Other Accrued Liabilities [Abstract]
Allowance for contract adjustments	$ 2,723,974	$ 2,724,474
Other	1,105,699	1,208,114
Other Accrued Liabilities	$ 3,829,673	$ 3,932,588

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Consolidated Balance Sheets (USD $)	Oct. 31, 2012	Jul. 31, 2012
Current assets:
Cash and cash equivalents	$ 10,121,580	$ 10,467,770
Investment securities, available for sale	3,037,806	1,404,582
Contract receivables, net	60,653,268	61,568,443
Deferred income taxes	4,732,761	4,799,724
Income tax receivable	2,761,815	2,502,431
Other current assets	3,028,495	1,802,843
Total current assets	84,335,725	82,545,793
Property, building and equipment, net of accumulated depreciation, $23,199,528 and $22,584,958, respectively	12,139,007	12,112,078
Deferred income taxes	861,123	860,499
Other assets	1,985,567	1,993,785
Total assets	99,321,422	97,512,155
Current liabilities:
Accounts payable	10,104,224	11,492,602
Line of credit	14,502,034	12,309,335
Accrued payroll costs	9,526,442	7,529,728
Current portion of long-term debt and capital lease obligations	453,611	488,460
Billings in excess of revenue	7,214,991	8,281,919
Other accrued liabilities	3,829,673	3,932,588
Total current liabilities	45,630,975	44,034,632
Income taxes payable	194,023	194,023
Deferred income taxes	423,324	423,324
Long-term debt and capital lease obligations	87,245	102,635
Commitments and contingencies (see note #13)
Shareholders' equity:
Preferred stock, par value $.01 per share; authorized - 2,000,000 shares; no shares issued	0	0
Capital in excess of par value	19,876,191	19,751,992
Retained earnings	29,777,310	29,534,783
Accumulated other comprehensive income	874,622	711,842
Treasury stock - Class A common, 88,617 and 136,461 shares; Class B common, 64,801 shares, at cost	(1,897,032)	(1,897,032)
Total Ecology and Environment, Inc. shareholders' equity	48,675,029	48,145,523
Noncontrolling interests	4,310,826	4,612,018
Total liabilities and shareholders' equity	99,321,422	97,512,155
Total shareholders' equity	52,985,855	52,757,541
Class A [Member]
Shareholders' equity:
Class A common stock, par value $.01 per share; authorized - 6,000,000 shares; issued - 2,685,151 shares	26,851	26,851
Class B common stock, par value $.01 per share; authorized - 10,000,000 shares; issued - 1,708,574 shares	26,851	26,851
Class B [Member]
Shareholders' equity:
Class A common stock, par value $.01 per share; authorized - 6,000,000 shares; issued - 2,685,151 shares	17,087	17,087
Class B common stock, par value $.01 per share; authorized - 10,000,000 shares; issued - 1,708,574 shares	$ 17,087	$ 17,087

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Commitments and Contingencies (Details) (Pending Litigation [Member])		3 Months Ended
	Sep. 12, 2012 USD ($)	Oct. 31, 2012 Ecology and Environment do Brasil LTDA [Member] USD ($)	Feb. 04, 2011 Ecology and Environment do Brasil LTDA [Member] BRL
Loss Contingencies [Line Items]
Loss Contingency, Estimate of Possible Loss	$ 216,000	$ 256,000	520,000
Number of employees individually served with Notices of Infraction		4

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Consolidated Statements of Changes in Shareholders' Equity and Comprehensive Income (USD $)	3 Months Ended		12 Months Ended
	Oct. 31, 2012	Oct. 29, 2011	Jul. 31, 2012
Balance	$ 52,757,541
Net income	543,096	1,405,267
Foreign currency translation adjustments	116,992	(188,583)
Cash dividends paid	0	0	(2,000,000)
Unrealized investment gain, net	40,616	(222)
Purchase of additional noncontrolling interests	0	2,289
Balance	52,985,855		52,757,541
Balance (in shares)	149,808
Common Stock [Member] | Class A [Member]
Balance	26,851	26,851	26,851
Balance (in shares)	2,685,151	2,685,151	2,685,151
Net income	0		0
Foreign currency translation adjustments	0		0
Cash dividends paid			0
Unrealized investment gain, net	0		0
Repurchase of Class A common stock			0
Issuance of stock under stock award plan			0
Share-based compensation expense	0		0
Tax impact of share based compensation			0
Sale of subsidiary shares to noncontrolling interests			0
Distributions to noncontrolling interests	0		0
Purchase of additional noncontrolling interests	0		0
Purchase of additional noncontrolling interests (in shares)	0		0
Stock award plan forfeitures	0		0
Balance	26,851		26,851
Balance (in shares)	2,685,151		2,685,151
Common Stock [Member] | Class B [Member]
Balance	17,087	17,087	17,087
Balance (in shares)	1,708,574	1,708,574	1,708,574
Net income	0		0
Foreign currency translation adjustments	0		0
Cash dividends paid			0
Unrealized investment gain, net	0		0
Repurchase of Class A common stock			0
Issuance of stock under stock award plan			0
Share-based compensation expense	0		0
Tax impact of share based compensation			0
Sale of subsidiary shares to noncontrolling interests			0
Distributions to noncontrolling interests	0		0
Purchase of additional noncontrolling interests	0		0
Purchase of additional noncontrolling interests (in shares)	0		0
Stock award plan forfeitures	0		0
Balance	17,087		17,087
Balance (in shares)	1,708,574		1,708,574
Capital in Excess of Par Value [Member]
Balance	19,751,992	19,983,029	19,983,029
Net income	0		0
Foreign currency translation adjustments	0		0
Cash dividends paid			0
Unrealized investment gain, net	0		0
Repurchase of Class A common stock			0
Issuance of stock under stock award plan			(716,662)
Share-based compensation expense	127,992		731,583
Tax impact of share based compensation			105,988
Sale of subsidiary shares to noncontrolling interests			0
Distributions to noncontrolling interests	0		0
Purchase of additional noncontrolling interests	(3,793)		(351,946)
Stock award plan forfeitures	0		0
Balance	19,876,191		19,751,992
Retained earnings [Member]
Balance	29,534,783	30,797,763	30,797,763
Net income	242,527		773,579
Foreign currency translation adjustments	0		0
Cash dividends paid			(2,036,559)
Unrealized investment gain, net	0		0
Repurchase of Class A common stock			0
Issuance of stock under stock award plan			0
Share-based compensation expense	0		0
Tax impact of share based compensation			0
Sale of subsidiary shares to noncontrolling interests			0
Distributions to noncontrolling interests	0		0
Purchase of additional noncontrolling interests	0		0
Stock award plan forfeitures	0		0
Balance	29,777,310		29,534,783
Accumulated Other Comprehensive Income (loss) [Member]
Balance	711,842	1,527,189	1,527,189
Net income	0		0
Foreign currency translation adjustments	132,736		(871,476)
Cash dividends paid			0
Unrealized investment gain, net	30,044		17,597
Repurchase of Class A common stock			0
Issuance of stock under stock award plan			0
Share-based compensation expense	0		0
Tax impact of share based compensation			0
Sale of subsidiary shares to noncontrolling interests			0
Distributions to noncontrolling interests	0		0
Purchase of additional noncontrolling interests	0		38,532
Stock award plan forfeitures	0		0
Balance	874,622		711,842
Treasury Stock [Member]
Balance	(1,897,032)	(2,317,515)	(2,317,515)
Balance (in shares)	149,531	190,724	190,724
Net income	0		0
Foreign currency translation adjustments	0		0
Cash dividends paid			0
Unrealized investment gain, net	0		0
Repurchase of Class A common stock			(363,050)
Repurchase of Class A common stock (in shares)			22,825
Issuance of stock under stock award plan			716,662
Issuance of stock under stock award plan (in shares)			(62,099)
Share-based compensation expense	0		0
Tax impact of share based compensation			0
Sale of subsidiary shares to noncontrolling interests			0
Distributions to noncontrolling interests	0		0
Purchase of additional noncontrolling interests	0		66,871
Purchase of additional noncontrolling interests (in shares)			(5,208)
Stock award plan forfeitures	0		0
Stock award plan forfeitures (in shares)	277		3,289
Balance	(1,897,032)		(1,897,032)
Balance (in shares)			149,531
Noncontrolling Interest [Member]
Balance	4,612,018	3,923,429	3,923,429
Net income	300,569		2,266,171
Foreign currency translation adjustments	(15,744)		124,455
Cash dividends paid			0
Unrealized investment gain, net	10,572		0
Repurchase of Class A common stock			0
Issuance of stock under stock award plan			0
Share-based compensation expense	0		0
Tax impact of share based compensation			0
Sale of subsidiary shares to noncontrolling interests			41,634
Distributions to noncontrolling interests	(566,587)		(1,123,896)
Purchase of additional noncontrolling interests	(30,002)		(619,775)
Stock award plan forfeitures	0		0
Balance	$ 4,310,826		$ 4,612,018

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Cash and Cash Equivalents (Details) (USD $) In Millions, unless otherwise specified	Oct. 31, 2012	Jul. 31, 2012
Cash and Cash Equivalents [Abstract]
Short-term Investments	$ 2.4	$ 2.2

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Commitments and Contingencies

3 Months Ended

Oct. 31, 2012

Commitments and Contingencies [Abstract]

Commitments and Contingencies

13. Commitments and Contingencies

From time to time, the Company is a named defendant in legal actions arising out of the normal course of business. The Company is not a party to any pending legal proceeding the resolution of which the management of the Company believes will have a material adverse effect on the Company's results of operations, financial condition, cash flows, or to any other pending legal proceedings other than ordinary, routine litigation incidental to its business. The Company maintains liability insurance against risks arising out of the normal course of business.

Certain contracts contain termination provisions under which the customer may, without penalty, terminate the contracts upon written notice to the Company. In the event of termination, the Company would be paid only termination costs in accordance with the particular contract. Generally, termination costs include unpaid costs incurred to date, earned fees and any additional costs directly allocable to the termination.

On September 21, 2012 the Colorado Department of Public Health and Environment (the "Department") issued a proposed Compliance Order on Consent (the "Consent Order") to the City and County of Denver ("Denver") and to Walsh.  Walsh is a majority-owned subsidiary of Ecology and Environment, Inc.  The proposed Consent Order concerns construction improvement activities of certain property owned by Denver which was the subject of asbestos remediation.  Denver had entered into a contract with Walsh for Walsh to provide certain environmental consulting services (asbestos monitoring services) in connection with the asbestos containment and/or removal performed by other contractors at Denver's real property.  The Consent Order, among other provisions, proposes a violation penalty of $216,000, jointly and severally to be paid by Denver and Walsh.  Under Walsh's environmental consulting contract with Denver, Walsh has agreed to indemnify Denver for certain liabilities which would include the imposition of this proposed penalty.  Walsh has put its professional liability carrier on notice of this claimed penalty.  At this time, neither Walsh nor Denver has filed a response to the September 21, 2012 draft Consent Order.  It is the position of Walsh that it has fully complied with all applicable Colorado laws, regulations and statutes in connection with its role as an environmental consultant to Denver and the claimed violations are not applicable to the activities of Walsh in connection with its environmental consulting contract with Denver.  The Company believes that this administrative proceeding involving Walsh will not have an adverse material effect upon the operations of the Company.

On February 4, 2011 the Chico Mendes Institute of Biodiversity Conservation of Brazil (the "Institute") issued a Notice of Infraction to E & E Brasil.  E & E Brasil is a majority-owned subsidiary of Ecology and Environment, Inc.  The Notice of Infraction concerns the taking and collecting species of wild animal specimens without authorization by the competent authority and imposes a fine of 520,000 Reais, which has a value of approximately $256,000 at October 31, 2012.  No claim has been made against Ecology and Environment, Inc.  The Institute has also filed Notices of Infraction against four employees of E & E Brasil alleging the same claims and has imposed fines against those individuals that, in the aggregate, are equal to the fine imposed against E & E  Brasil.  E & E Brasil has filed administrative responses with the Institute for itself and its employees that: (a) denies the jurisdiction of the Institute, (b) states that the Notice of Infraction is constitutionally vague and (c) affirmatively stated that E & E Brasil had obtained the necessary permits for the surveys and collections of specimens under applicable Brazilian regulations and that the protected conservation area is not clearly marked to show its boundaries.  At this time, E & E Brasil has attended one meeting where depositions were taken. The Company believes that these administrative proceedings in Brazil will not have an adverse material effect upon the operations of the Company. 

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Contract Receivables, net (Details) (USD $)	3 Months Ended
	Oct. 31, 2012	Oct. 29, 2011	Jul. 31, 2012
Contracts Receivable [Line Items]
Billed Contracts Receivable	$ 40,781,996		$ 42,977,016
Unbilled Contracts Receivable	31,193,272		28,829,818
Contracts Recevable, Gross	71,975,268		71,806,834
Allowance for doubtful accounts and contract adjustments	(11,322,000)		(10,238,391)
Contract Receivable, net	60,653,268		61,568,443
Contract receivable retainage	246,000		248,000
Provision for allowance for doubtful accounts and contract adjustments	1,100,000	200,000
Contracts receivable from Kuwait	14,500,000		14,500,000
Billings in excess of revenue	1,700,000		1,900,000
China [Member]
Contracts Receivable [Line Items]
Billed Contracts Receivable	$ 4,700,000		$ 2,800,000

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Recent Accounting Pronouncements

3 Months Ended

Oct. 31, 2012

Recent Accounting Pronouncements [Abstract]

Recent Accounting Pronouncements

15. Recent Accounting Pronouncements

The FASB and the International Accounting Standards Board (IASB) have issued common disclosure requirements related to offsetting arrangements. Specifically, the FASB issued Accounting Standards Update (ASU) No. 2011-11, Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities.  The amendments in this ASU require an entity to disclose information about offsetting and related arrangements to enable users of its financial statements to understand the effect of those arrangements on its financial position.  An entity is required to apply the amendments for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods.  An entity should provide the disclosures required by those amendments retrospectively for all comparative periods presented.  The Company has not yet assessed the impact that these provisions will have on its consolidated financial statements.

In June 2011, the FASB issued ASU No. 2011-05 Comprehensive Income (Topic 220): Presentation of Comprehensive Income ("ASU 2011-05"). ASU 2011-05 increases the prominence of other comprehensive income in financial statements. Under ASU 2011-05, companies will have the option to present the components of net income and comprehensive income in either one or two consecutive financial statements. ASU 2011-05 eliminates the option to present other comprehensive income in the statement of changes in equity and is applied retrospectively. ASU 2011-05 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2011. The adoption of this standard did not have a material impact on the Company's consolidated financial statements. 

In May 2011, the FASB issued ASU No. 2011-04, Fair Value Measurement: Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. This ASU provides a consistent definition of fair value to ensure that the fair value measurement and disclosure requirements are similar between U.S. GAAP and IFRS.  This standard changes certain fair value measurement principles and enhances the disclosure requirements.  ASU No. 2011-04 is effective for interim and annual periods beginning after December 15, 2011 and should be applied prospectively.  The Company early adopted this ASU and the adoption of this standard did not have a material impact on the Company's consolidated financial statements. 

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Consolidated Statements of Changes in Shareholders' Equity and Comprehensive Income (Parenthetical) (USD $)	12 Months Ended
	Jul. 31, 2012
Consolidated Statements of Changes in Shareholders' Equity and Comprehensive Income (Parenthetical) [Abstract]
Cash dividends paid (in dollars per share)	$ 0.48

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Consolidated Balance Sheets Parenthetical (USD $)	Oct. 31, 2012	Jul. 31, 2012
Assets
Property, building and equipment, accumulated depreciation	$ 23,199,528	$ 22,584,958
Shareholders' equity
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, authorized (in shares)	2,000,000	2,000,000
Class A [Member]
Shareholders' equity
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, authorized (in shares)	6,000,000	6,000,000
Common stock, issued (in shares)	2,685,151	2,685,151
Treasury Stock (in shares)	85,007	125,923
Class B [Member]
Shareholders' equity
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, authorized (in shares)	10,000,000	10,000,000
Common stock, issued (in shares)	1,708,574	1,708,574
Treasury Stock (in shares)	64,801	64,801

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Stock Award Plan

3 Months Ended

Oct. 31, 2012

Stock Award Plan [Abstract]

Stock Award Plan

8. Stock Award Plan

Ecology and Environment, Inc. has adopted a 1998 Stock Award Plan effective March 16, 1998 (1998 Plan).  To supplement the 1998 Plan, a 2003 Stock Award Plan (2003 Plan) was approved by the shareholders at the Annual Meeting held in January 2004 and a 2007 Stock Award Plan (2007 Plan) was approved by the shareholders at the Annual Meeting held in January of 2008 (the 1998 Plan, 2003 Plan and the 2007 Plan collectively referred to as the Award Plan).  The 2003 Plan was approved retroactive to October 16, 2003 and terminated on October 15, 2008 and the 2007 Plan was approved retroactive to October 18, 2007 and terminated on October 17, 2012. 

The Company awarded 62,099 shares valued at approximately $.9 million in October 2011 pursuant to the Award Plan. These awards issued have a three year vesting period. The "pool" of excess tax benefits accumulated in Capital in Excess of Par Value was $330,000 at October 31, 2012 and July 31, 2012.   Total gross compensation expense is recognized over the vesting period. Unrecognized compensation expense was approximately $.7 million and $.8 million at October 31, 2012 and July 31, 2012, respectively.

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Document and Entity Information	3 Months Ended
	Oct. 31, 2012	Dec. 01, 2012 Common Class A [Member]	Dec. 01, 2012 Common Class B [Member]
Class of Stock [Line Items]
Entity Registrant Name	ECOLOGY & ENVIRONMENT INC
Entity Central Index Key	0000809933
Current Fiscal Year End Date	--07-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	No
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		2,600,144	1,643,773
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	Q1
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Oct. 31, 2012

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Shareholders' Equity

3 Months Ended

Oct. 31, 2012

Shareholders' Equity [Abstract]

Shareholders' Equity

9. Shareholders' Equity

 a. Class A and Class B common stock

The relative rights, preferences and limitations of the Company's Class A and Class B common stock can be summarized as follows: Holders of Class A shares are entitled to elect 25% of the Board of Directors so long as the number of outstanding Class A shares is at least 10% of the combined total number of outstanding Class A and Class B common shares. Holders of Class A common shares have one-tenth the voting power of Class B common shares with respect to most other matters.

In addition, Class A shares are eligible to receive dividends in excess of (and not less than) those paid to holders of Class B shares. Holders of Class B shares have the option to convert at any time, each share of Class B common stock into one share

of Class A common stock. Upon sale or transfer, shares of Class B common stock will automatically convert into an equal number of shares of Class A common stock, except that sales or transfers of Class B common stock to an existing holder of Class B common stock or to an immediate family member will not cause such shares to automatically convert into Class A common stock.

b. Cash Dividend

The Company declared cash dividends of approximately $2.0 million in fiscal year 2012.  No cash dividends have been declared as of October 31, 2012. Within accounts payable, the Company recorded outstanding dividend payables at July 31, 2012 of approximately $1.0 million which was paid in August 2012.

c. Stock Repurchase

The Company's Board of Directors approved a 200,000 share repurchase program in August 2010 in which 93,173 shares remain available for repurchase.

d. Noncontrolling Interest

The Company's noncontrolling interest is disclosed as a separate component of the Company's consolidated equity on the balance sheets. Earnings and other comprehensive income are separately attributed to both the controlling and noncontrolling interests.  Earnings per share is calculated based on net income attributable to the Company's controlling interest.

There was a purchase of noncontrolling interest in the three months ending October 31, 2012 for which the Company paid cash of approximately $30,000.

On January 4, 2012, the Company purchased an additional 1.3% of Walsh from noncontrolling shareholders for approximately $254,000.  Two thirds of the purchase price was paid in cash while the remaining one third was paid for with E&E stock.   On December 14, 2011, the Company purchased an additional 4.0% of Ecology and Environment do Brasil LTDA from noncontrolling shareholders for approximately $180,000.  The entire purchase price was paid in cash.  On November 18, 2011, the Company purchased an additional 3.9% of Walsh Peru from noncontrolling shareholders for approximately $432,000.  The entire purchase price was paid in cash.  There were three additional purchases of noncontrolling interest in fiscal year 2012 for which the Company paid cash of approximately $128,000.

Most transactions with noncontrolling shareholders for the three months ended October 31, 2012 and fiscal year ended July 31, 2012 were made at book value, which management believes approximates fair value.  The purchase of the Walsh Peru and E&E Brasil shares, were at a calculated value in excess of book value which management believes approximated the fair value.

Effects of changes in E&E's ownership interest in its subsidiaries on E&E's equity:

	Three months ended October 31, 2012			Fiscal year ended July 31, 2012
Transfers to noncontrolling interest:
Sale of 600 Gustavson common shares	$	---		$	41,634
Total transfers to noncontrolling interest		---			41,634
Transfers from noncontrolling interest:
Purchase of 152 Walsh common shares		---			(73,748	)
Purchase of  496 Walsh common shares		---			(269,064	)
Purchase of  5,389 Brazil common shares		---			77,539
Purchase of 26,482 Walsh Peru common shares		---			(213,917	)
Purchase of 166 Walsh common shares		---			(94,601	)
Purchase of 25 Gestion Ambiental Consultores common shares		---			(7,452	)
Purchase of 75 Lowham common shares		(30,002	)		---
Total transfers from noncontrolling interest		(30,002	)		(581,243	)
Transfers to (from) noncontrolling interest	$	(30,002	)	$	(539,609	)

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Consolidated Statemets of Income (USD $)	3 Months Ended
	Oct. 31, 2012	Oct. 29, 2011
Consolidated Statemets of Income [Abstract]
Revenue	$ 36,821,768	$ 42,311,806
Cost of professional services and other direct operating expenses	13,308,000	15,577,703
Subcontract costs	7,015,358	9,112,140
Administrative and indirect operating expenses	11,066,514	11,199,254
Marketing and related costs	3,874,155	3,942,280
Depreciation and amortization	583,288	440,837
Income from operations	974,453	2,039,592
Interest expense	(83,750)	(80,300)
Interest income	58,420	11,682
Other income (expense)	(6,242)	109,278
Net foreign exchange gain (loss)	(45,170)	3,332
Income before income tax provision	897,711	2,083,584
Income tax provision	354,615	678,317
Net income	543,096	1,405,267
Net income attributable to noncontrolling interests	(300,569)	(245,490)
Net income attributable to Ecology and Environment, Inc.	$ 242,527	$ 1,159,777
Net income per common share: basic and diluted (in dollars per share)	$ 0.06	$ 0.28
Weighted average common shares outstanding: basic and diluted (in shares)	4,244,010	4,203,445

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Contract Receivables, net

3 Months Ended

Oct. 31, 2012

Contract Receivables, net [Abstract]

Contract Receivables, net

3.       Contract Receivables, net

	October 31, 2012			July 31, 2012
Billed	$	40,781,996		$	42,977,016
Unbilled		31,193,272			28,829,818
		71,975,268			71,806,834
Allowance for doubtful accounts and contract adjustments		(11,322,000	)		(10,238,391	)
	$	60,653,268		$	61,568,443

Unbilled receivables result from revenues which have been earned, but are not billed as of period-end.  The above unbilled balances are comprised of incurred costs plus fees not yet processed and billed; and differences between year-to-date provisional billings and year-to-date actual contract costs incurred.  Management anticipates that the October 31, 2012 unbilled receivables will be substantially billed and collected within one year.  Within the above billed balances are contractual retainages in the amount of approximately $246,000 and $248,000 at October 31, 2012 and July 31, 2012. Management anticipates that the July 31, 2012 retainage balance will be substantially collected within one year. For the three months ended October 31, 2012 and October 29, 2011, the quarter provision for allowance for doubtful accounts and contract adjustments was approximately $1.1 million and $.2 million, respectively.

Included in the balance of receivables are receivables due under the contracts with organizations in Kuwait of $14.5 million at October 31, 2012 and July 31, 2012.  Of the outstanding balances due from Kuwait, approximately $1.7 million and $1.9 million were included in billings in excess of revenue as of October 31, 2012 and July 31, 2012, respectively.  Included in the balance of unbilled receivables are receivables due under certain contracts with organizations in China of $4.7 million and $2.8 million at October 31, 2012 and July 31, 2012, respectively.

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Cash and Cash Equivalents

3 Months Ended

Oct. 31, 2012

Cash and Cash Equivalents [Abstract]

Cash and Cash Equivalents

2.         Cash and Cash Equivalents

The Company's policy is to invest cash in excess of operating requirements in income-producing short-term investments. At October 31, 2012 and July 31, 2012, short-term investments consisting of money market funds are reflected in the accompanying consolidated balance sheets and statements of cash flows in cash and cash equivalents which amounted to approximately $2.4 million and $2.2 million, respectively.

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Supplemental Cash Flow Information Disclosure

3 Months Ended

Oct. 31, 2012

Supplemental Cash Flow Information Disclosure [Abstract]

Supplemental Cash Flow Information Disclosure

14. Supplemental Cash Flow Information Disclosure

For purposes of the consolidated statements of cash flows, the Company considers all highly liquid instruments purchased with a maturity of three months or less to be cash equivalents.  Cash paid for interest amounted to approximately $82,000 and $73,000 for the three months ended October 31, 2012 and October 29, 2011, respectively.  Cash paid for income taxes amounted to approximately $.6 million and $.9 million for the three months ended October 31, 2012 and October 29, 2011, respectively.  The $1.0 million in dividends paid by the Company for the three months ended October 31, 2012 was accrued in accounts payable as of July 31, 2012 and paid in August 2012.  The $1.0 million in dividends paid by the Company for the three months ended October 29, 2011 was accrued in accounts payable as of July 31, 2011 and paid in August 2011.

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Shareholders' Equity Restrictive Agreement

3 Months Ended

Oct. 31, 2012

Shareholders' Equity - Restrictive Agreement [Abstract]

Shareholders' Equity - Restrictive Agreement

10. Shareholders' Equity - Restrictive Agreement

Messrs. Gerhard J. Neumaier, Silvestro, Frank, and Strobel entered into a Stockholders' Agreement dated May 12, 1970, as amended January 24, 2011, which governs the sale of certain shares of common stock owned by them and the children of those individuals.  The Agreement provides that prior to accepting a bona fide offer to purchase the certain covered part of their shares, each party must first allow the other members to the Agreement the opportunity to acquire on a pro rata basis, with right of over-allotment, all of such shares covered by the offer on the same terms and conditions proposed by the offer.

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Income Taxes

3 Months Ended

Oct. 31, 2012

Income Taxes [Abstract]

Income Taxes

 6. Income Taxes

The estimated effective tax rate for the three months ended October 31, 2012 and October 29, 2011 was 39.5% and 32.6% respectively. The increase is mainly a result of decreased income from foreign entities in countries with a lower effective tax rate than in the U.S, decreased income from U.S. partnerships, recognition of nondeductible expenses in a foreign jurisdiction and additional foreign taxes.  

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Line of Credit

3 Months Ended

Oct. 31, 2012

Line of Credit [Abstract]

Line of Credit

4. Lines of Credit

The Company maintains unsecured lines of credit available for working capital and letters of credit of $32.5 million at the parent company with interest rates ranging from 2.5% to 3% at July 31, 2012 and an additional $1.6 million in lines of credit at the Company's subsidiaries with interest rates ranging from 4.5% to 5% at July 31, 2012.  The Company guarantees the lines of credit of Walsh Environmental Scientists and Engineers, LLC (Walsh).  Its lenders have reaffirmed the Company's lines of credit within the past twelve months.  At October 31, 2012 and July 31, 2012, the Company had letters of credit and amounts outstanding under the lines of credit totaling approximately $16.1 million and $14.9 million, which is inclusive of outstanding letters of credit of $1.5 million and $4.1 million, respectively. After letters of credit and amounts outstanding under the lines of credit, there was $18.0 million of availability under the lines of credit at October 31, 2012.

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Debt and Capital Lease Obligations

3 Months Ended

Oct. 31, 2012

Debt and Capital Lease Obligations [Abstract]

Debt and Capital Lease Obligations

5. Debt and Capital Lease Obligations

Debt inclusive of capital lease obligations consists of the following:

	October 31, 2012			July 31, 2012
Various bank loans and advances at interest rates ranging from 5% to 14%	$	324,296		$	372,744
Capital lease obligations at varying interest rates averaging 11%		216,560			218,351
		540,856			591,095
Current portion of long-term debt and capital lease obligations		(453,611	)		(488,460	)
Long-term debt and capital lease obligations	$	87,245		$	102,635

The aggregate maturities of long-term debt and capital lease obligations at October 31, 2012 are as follows:

	Amount
November 2012 – October 2013	$	453,611
November 2013 – October 2014		69,945
November 2014 – October 2015		17,300
November 2015 – October 2016		---
November 2016 – October 2017		---
Thereafter		---
	$	540,856

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Other Accrued Liabilities

3 Months Ended

Oct. 31, 2012

Other Accrued Liabilities [Abstract]

Other Accrued Liabilities

7. Other Accrued Liabilities

	October 31,  2012		July 31, 2012
Allowance for contract adjustments	$	2,723,974	$	2,724,474
Other		1,105,699		1,208,114
	$	3,829,673	$	3,932,588

Included in other accrued liabilities is an allowance for contract adjustments relating to potential cost disallowances on amounts billed and collected in current and prior years' projects.  The allowance for contract adjustments is recorded for contract disputes and government audits when the amounts are estimatable.

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Summary of Significant Accounting Policies (Details) (USD $)	3 Months Ended
	Oct. 31, 2012	Oct. 29, 2011	Jul. 31, 2012
Summary of Significant Accounting Policies [Abstract]
Joint venture, ownership percentage (in hundredths)	50.00%
Gross Unrealized Gains	$ 83,000		$ 42,000
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net foreign exchange gain (loss)	(45,170)	3,332
Goodwill	1,200,000
Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	3,037,806		1,404,582
Fair Value, Measurements, Recurring [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	1,445,042		1,353,365
Fair Value, Measurements, Recurring [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	1,592,764		51,217
Fair Value, Measurements, Recurring [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	$ 0		$ 0

XML

Segment Reporting

3 Months Ended

Oct. 31, 2012

Segment Reporting [Abstract]

Segment Reporting

12. Segment Reporting

Segment information as of October 31, 2012 approximates the following:

Geographic information:

	Revenue		Gross Long- Lived Assets
United States	$	24,810,000	$	29,899,000
Foreign countries		12,012,000		5,440,000

(1)  Revenue is attributed to countries based on the location of the customers.  Revenues in the most significant foreign countries include $3.5 million in Peru, $4.1 million in Brazil and $2.5 million in Chile.

Segment information as of October 29, 2011 approximates the following:

Geographic information:

	Revenue		Gross Long- Lived Assets
United States	$	28,430,000	$	26,470,000
Foreign countries		13,882,000		5,187,000

 (1)  Revenue is attributed to countries based on the location of the customers.  Revenues in the most significant foreign countries include $3.6 million in Peru, $4.1 million in Brazil and $2.5 million in Chile.

XML

Summary of Significant Accounting Policies (Policies)

3 Months Ended

Oct. 31, 2012

Summary of Significant Accounting Policies [Abstract]

Consolidation

a. Consolidation

The consolidated financial statements include the accounts of the Company and its wholly owned and majority owned subsidiaries. Also reflected in the consolidated financial statements is the 50% ownership in the Chinese operating joint venture, The Tianjin Green Engineering Company. This joint venture is accounted for under the equity method. All intercompany transactions and balances have been eliminated.

Use of Estimates

b. Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions as of the date of the financial statements, which affect the reported values of assets and liabilities and revenues and expenses and disclosures of contingent assets and liabilities. Actual results may differ from those estimates.

Revenue Recognition

c. Revenue Recognition

Substantially all of the Company's revenue is derived from environmental consulting work. The consulting revenue is principally derived from the sale of labor hours. The consulting work is performed under a mix of fixed price, cost-type, and time and material contracts. Contracts are required from all customers. Revenue is recognized as follows:

Contract Type	Work Type	Revenue Recognition Policy
Time and Materials	Consulting	As incurred at contract rates.
Fixed Price	Consulting	Percentage of completion, approximating the ratio of either total costs or Level of Effort (LOE) hours incurred to date to total estimated costs or LOE hours.
Cost-Type	Consulting	Costs as incurred.  Fixed fee portion is recognized using percentage of completion determined by the percentage of LOE hours incurred to total LOE hours in the respective contracts.

Substantially all of the Company's cost-type work is with federal governmental agencies and, as such, is subject to audits after contract completion. Under these cost-type contracts, provisions for adjustments to accrued revenue are recognized on a quarterly basis and based on past audit settlement history. Government audits have been completed and final rates have been negotiated through fiscal year 2005. The Company records an allowance for contract adjustments which is recorded in other accrued liabilities principally represents a reserve for contract adjustments for the fiscal years 1996-2013.

We reduce our contract receivables and costs and estimated earnings in excess of billings on contracts in process by establishing an allowance for amounts that, in the future, may become uncollectible or unrealizable, respectively. We determine our estimated allowance for uncollectible amounts based on management's judgments regarding our operating performance related to the adequacy of the services performed, the status of change orders and claims, our experience settling change orders and claims and the financial condition of our clients, which may be dependent on the type of client and current economic conditions that the client may be subject to.

Change orders can occur when changes in scope are made after project work has begun, and can be initiated by either the Company or its clients. Claims are amounts in excess of the agreed contract price which the Company seeks to recover from a client for customer delays and / or errors or unapproved change orders that are in dispute. Costs related to change orders and claims are recognized as incurred. Revenues and profit are recognized on change orders when it is probable that the change order will be approved and the amount can be reasonably estimated. Revenues are recognized only up to the amount of costs incurred on contract claims when realization is probable, estimatable and reasonable support from the customer exists.

 All bid and proposal and other pre-contract costs are expensed as incurred. Out of pocket expenses such as travel, meals, field supplies, and other costs billed direct to contracts are included in both revenues and cost of professional services. Sales and cost of sales at the Company's South American subsidiaries exclude tax assessments by governmental authorities, which are collected by the Company from its customers and then remitted to governmental authorities.

Investment securities

d. Investment securities

Investment securities have been classified as available for sale and are stated at fair value. Unrealized gains or losses related to investment securities available for sale are reflected in accumulated other comprehensive income, net of applicable income taxes in the consolidated balance sheets and statements of changes in shareholders' equity. The cost basis of securities sold is based on the specific identification method. The Company had gross unrealized gains of approximately $83,000 and $42,000 at October 31, 2012 and July 31, 2012, respectively.

Fair value of financial instruments

e. Fair value of financial instruments

The Company's financial assets or liabilities are measured using inputs from the three levels of the fair value hierarchy.  The asset's or liability's classification 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.  The Company has not elected a fair value option on any assets or liabilities.

The three levels of the hierarchy are as follows:

Level 1 Inputs – Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.  Generally this includes debt and equity securities and derivative contracts that are traded on an active exchange market (e.g., New York Stock Exchange) as well as certain U.S. Treasury and U.S. Government and agency mortgage-backed securities that are highly liquid and are actively traded in over-the-counter markets.  The Company's investment securities classified as Level 1 are comprised of mutual funds. 

 Level 2 Inputs – Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in inactive markets; or valuations based on models where the significant inputs are observable (e.g., interest rates, yield curves, credit risks, etc.) or can be corroborated by observable market data.  The Company's investment securities classified as Level 2 are comprised of international and domestic corporate and municipal bonds.

Level 3 Inputs – Valuations based on models where significant inputs are not observable.  The unobservable inputs reflect the Company's own assumptions about the assumptions that market participants would use.

The following table presents the level within the fair value hierarchy at which the Company's financial assets are measured on a recurring basis.

Financial assets as of October 31, 2012:
	Level 1		Level 2		Level 3		Total
Assets
Investment securities available for sale	$	1,445,042	$	1,592,764	$	---	$	3,037,806

Financial assets as of July 31, 2012:
	Level 1		Level 2		Level 3		Total
Assets
Investment securities available for sale	$	1,353,365	$	51,217	$	---	$	1,404,582

The carrying amount of cash and cash equivalents at October 31, 2012 and July 31, 2012 were classified as level 1 and approximate fair value.  Long-term debt consists of bank loans and capitalized equipment leases. The demand loan payable consists of borrowings against the Company's line of credit for working capital requirements.  Based on the Company's assessment of the current financial market and corresponding risks associated with the debt and line of credit borrowings, management believes that the carrying amount of the liabilities at October 31, 2012 and July 31, 2012 were classified as level 2 and approximates fair value.  There were no financial instruments classified as level 3.

The availability of observable market data is monitored to assess the appropriate classification of financial instruments within the fair value hierarchy.  Changes in economic conditions or model-based valuation techniques may require the transfer of financial instruments from one fair value level to another.  In such instances, the transfer is reported at the beginning of the reporting period.  The Company evaluated the significance of transfers between levels based upon the nature of the financial instrument.  For the three months ended October 31, 2012 and fiscal year ended July 31, 2012 there were no transfers in or out of levels 1, 2 or 3, respectively.

Foreign Currencies

f. Foreign Currencies

The financial statements of foreign subsidiaries where the local currency is the functional currency are translated into U.S. dollars using exchange rates in effect at period end for assets and liabilities and average exchange rates during each reporting period for results of operations. Translation adjustments are deferred in accumulated other comprehensive income.  Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the results of operations as incurred. The Company recorded foreign currency transaction gains/(losses) of approximately $(45,000) and $3,000 for the three months ended October 31, 2012 and October 29, 2011, respectively.  

The financial statements of foreign subsidiaries located in highly inflationary economies are remeasured as if the functional currency were the U.S. dollar. The remeasurement of local currencies into U.S. dollars creates transaction adjustments which are included in net income. There were no highly inflationary economy translation adjustments for fiscal year 2012 and through the first quarter of fiscal year 2013.

Income Taxes

g. Income Taxes

The Company follows the asset and liability approach to account for income taxes.  This approach requires the recognition of deferred tax liabilities and assets for the expected future tax consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities.  Although realization is not assured, management believes it is more likely than not that the recorded net deferred tax assets will be realized.  Since in some cases management has utilized estimates, the amount of the net deferred tax asset considered realizable could be reduced in the near term.  No provision has been made for United States income taxes applicable to undistributed earnings of foreign subsidiaries as it is the intention of the Company to indefinitely reinvest those earnings in the operations of those entities.

Income tax expense includes U.S. and international income taxes, determined using the applicable statutory rates.  A deferred tax liability is recognized for all taxable temporary differences, and a deferred tax asset is recognized for all deductible temporary differences and net operating loss carryforwards.

The Company has significant deferred tax assets, resulting principally from contract reserves and accrued expenses.  The Company periodically evaluates the likelihood of realization of deferred tax assets, and provides for a valuation allowance when necessary.

Additionally, the Financial Accounting Standards Board ("FASB") Accounting Standard Codification ("ASC") Topic Income Taxes prescribes a recognition threshold and measurement principles for financial statement disclosure of tax positions taken or expected to be taken on a tax return.   A tax position is a position in a previously filed tax return or a position expected to be taken in a future tax filing that is reflected in measuring current or deferred income tax assets and liabilities. Tax positions shall be recognized only when it is more likely than not (likelihood of greater than 50%), based on technical merits, that the position will be sustained. Tax positions that meet the more likely than not threshold should be measured using a probability weighted approach as the largest amount of tax benefit that is greater than 50% likely of being realized upon settlement. Whether the more-likely-than-not recognition threshold is met for a tax position, is a matter of judgment based on the individual facts and circumstances of that position evaluated in light of all available evidence.  The Company recognizes interest accrued related to unrecognized tax benefits in interest expense and penalties in administrative and indirect operating expenses.

Earnings Per Share (EPS)

h. Earnings Per Share (EPS)

Basic and diluted EPS is computed by dividing income available to common shareholders by the weighted average number of common shares outstanding for the period.  The Company allocates undistributed earnings between the classes on a one-to-one basis when computing earnings per share.  As a result, basic and fully diluted earnings per Class A and Class B shares are equal amounts.  See Note 11 to Consolidated Financial Statements for additional information.

Comprehensive Income

i. Comprehensive Income

Comprehensive income is defined as "the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources." The term "comprehensive income" is used to describe the total net earnings plus other comprehensive income. Other comprehensive income includes currency translation adjustments on foreign subsidiaries and unrealized gains or losses on available-for-sale securities.

Impairment of Long-Lived Assets

j. Impairment of Long-Lived Assets

 The Company assesses recoverability of the carrying value of long-lived assets by estimating the future net cash flows (undiscounted) expected to result from the asset, including eventual disposition. If the future net cash flows are less than the carrying value of the asset, an impairment loss is recorded equal to the difference between the asset's carrying value and fair value. The Company identified no events or changes in circumstances that necessitated an evaluation for an impairment of long lived assets.

Goodwill

k. Goodwill

The total goodwill of approximately $1.2 million is subject to an annual assessment for impairment.  The Company's most recent annual impairment assessment for goodwill was completed during the fourth quarter of fiscal year 2012. The results of this assessment showed that the fair values of the reporting units, using a discounted cash flow method, to which goodwill is assigned was in excess of the book values of the respective reporting units, resulting in the identification of no goodwill impairment. Goodwill is also assessed for impairment between annual assessments whenever events or circumstances make it more likely than not that an impairment may have occurred. The Company identified no events or changes in circumstances during the year that necessitated an evaluation for an impairment of goodwill.

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Stock Award Plan (Details) (USD $)	3 Months Ended		12 Months Ended
	Oct. 31, 2012	Oct. 29, 2011	Jul. 31, 2012
Stock Award Plan [Abstract]
Shares awarded (in shares)		62,099
Shares awarded, value		$ 900,000
Share-based award, vesting period		3 years
Excess tax benefits accumulated in Capital in Excess of Par Value	330,000		330,000
Unrecognized compensation expense	$ 700,000		$ 800,000

XML

Consolidated Statement of Cash Flows (USD $)	3 Months Ended
	Oct. 31, 2012	Oct. 29, 2011
Cash flows from operating activities:
Net income	$ 543,096	$ 1,405,267
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	583,288	440,837
Benefit for deferred income taxes	66,339	(197,076)
Share-based compensation expense	127,992	182,896
Tax impact of share-based compensation	0	105,988
Provision for contract adjustments	1,083,109	187,209
(Increase) decrease in:
- contract receivables	(43,886)	(832,932)
- other current assets	(1,213,383)	(583,483)
- income tax receivable	(259,384)	0
- other non-current assets	9,951	7,958
Increase (decrease) in:
- accounts payable	219,286	(1,121,380)
- accrued payroll costs	1,967,917	(826,593)
- income taxes payable	(536)	(162,297)
- billings in excess of revenue	(1,093,281)	621,753
- other accrued liabilities	(119,221)	(557,108)
Net cash provided by (used in) operating activities	1,871,287	(1,328,961)
Cash flows provided by (used in) investing activities:
Acquistion of noncontrolling interest of subsidiaries	(30,002)	(61,750)
Purchase of property, building and equipment	(549,926)	(975,657)
Change in accounts payable due to purchase of equipment	(610,192)	10,392
Sale (purchase) of investment securities, net	(1,599,636)	(434)
Net cash used in investing activities	(2,789,756)	(1,027,449)
Cash flows provided by (used in) financing activities:
Dividends paid	(1,018,783)	(1,028,881)
Proceeds from debt	0	251,427
Repayment of debt and capital lease obligations	(106,673)	(57,011)
Net proceeds from line of credit	2,200,000	2,500,000
Distributions to noncontrolling interests	(566,587)	(110,754)
Proceeds from sale of subsidiary shares to noncontrolling interests	0	41,634
Purchase of treasury stock	0	(363,050)
Net cash provided by financing activities	507,957	1,233,365
Effect of exchange rate changes on cash and cash equivalents	64,322	177,526
Net decrease in cash and cash equivalents	(346,190)	(945,519)
Cash and cash equivalents at beginning of period	10,467,770	8,529,842
Cash and cash equivalents at end of period	$ 10,121,580	$ 7,584,323

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Summary of Significant Accounting Policies

3 Months Ended

Oct. 31, 2012

Summary of Significant Accounting Policies [Abstract]

Summary of Significant Accounting Policies

1. Summary of Significant Accounting Policies

a. Consolidation

The consolidated financial statements include the accounts of the Company and its wholly owned and majority owned subsidiaries. Also reflected in the consolidated financial statements is the 50% ownership in the Chinese operating joint venture, The Tianjin Green Engineering Company. This joint venture is accounted for under the equity method. All intercompany transactions and balances have been eliminated.

b. Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions as of the date of the financial statements, which affect the reported values of assets and liabilities and revenues and expenses and disclosures of contingent assets and liabilities. Actual results may differ from those estimates.

c. Revenue Recognition

Substantially all of the Company's revenue is derived from environmental consulting work. The consulting revenue is principally derived from the sale of labor hours. The consulting work is performed under a mix of fixed price, cost-type, and time and material contracts. Contracts are required from all customers. Revenue is recognized as follows:

Contract Type	Work Type	Revenue Recognition Policy
Time and Materials	Consulting	As incurred at contract rates.
Fixed Price	Consulting	Percentage of completion, approximating the ratio of either total costs or Level of Effort (LOE) hours incurred to date to total estimated costs or LOE hours.
Cost-Type	Consulting	Costs as incurred.  Fixed fee portion is recognized using percentage of completion determined by the percentage of LOE hours incurred to total LOE hours in the respective contracts.

Substantially all of the Company's cost-type work is with federal governmental agencies and, as such, is subject to audits after contract completion. Under these cost-type contracts, provisions for adjustments to accrued revenue are recognized on a quarterly basis and based on past audit settlement history. Government audits have been completed and final rates have been negotiated through fiscal year 2005. The Company records an allowance for contract adjustments which is recorded in other accrued liabilities principally represents a reserve for contract adjustments for the fiscal years 1996-2013.

We reduce our contract receivables and costs and estimated earnings in excess of billings on contracts in process by establishing an allowance for amounts that, in the future, may become uncollectible or unrealizable, respectively. We determine our estimated allowance for uncollectible amounts based on management's judgments regarding our operating performance related to the adequacy of the services performed, the status of change orders and claims, our experience settling change orders and claims and the financial condition of our clients, which may be dependent on the type of client and current economic conditions that the client may be subject to.

Change orders can occur when changes in scope are made after project work has begun, and can be initiated by either the Company or its clients. Claims are amounts in excess of the agreed contract price which the Company seeks to recover from a client for customer delays and / or errors or unapproved change orders that are in dispute. Costs related to change orders and claims are recognized as incurred. Revenues and profit are recognized on change orders when it is probable that the change order will be approved and the amount can be reasonably estimated. Revenues are recognized only up to the amount of costs incurred on contract claims when realization is probable, estimatable and reasonable support from the customer exists.

 All bid and proposal and other pre-contract costs are expensed as incurred. Out of pocket expenses such as travel, meals, field supplies, and other costs billed direct to contracts are included in both revenues and cost of professional services. Sales and cost of sales at the Company's South American subsidiaries exclude tax assessments by governmental authorities, which are collected by the Company from its customers and then remitted to governmental authorities.

d. Investment securities

Investment securities have been classified as available for sale and are stated at fair value. Unrealized gains or losses related to investment securities available for sale are reflected in accumulated other comprehensive income, net of applicable income taxes in the consolidated balance sheets and statements of changes in shareholders' equity. The cost basis of securities sold is based on the specific identification method. The Company had gross unrealized gains of approximately $83,000 and $42,000 at October 31, 2012 and July 31, 2012, respectively.

e. Fair value of financial instruments

The Company's financial assets or liabilities are measured using inputs from the three levels of the fair value hierarchy.  The asset's or liability's classification 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.  The Company has not elected a fair value option on any assets or liabilities.

The three levels of the hierarchy are as follows:

Level 1 Inputs – Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.  Generally this includes debt and equity securities and derivative contracts that are traded on an active exchange market (e.g., New York Stock Exchange) as well as certain U.S. Treasury and U.S. Government and agency mortgage-backed securities that are highly liquid and are actively traded in over-the-counter markets.  The Company's investment securities classified as Level 1 are comprised of mutual funds. 

 Level 2 Inputs – Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in inactive markets; or valuations based on models where the significant inputs are observable (e.g., interest rates, yield curves, credit risks, etc.) or can be corroborated by observable market data.  The Company's investment securities classified as Level 2 are comprised of international and domestic corporate and municipal bonds.

Level 3 Inputs – Valuations based on models where significant inputs are not observable.  The unobservable inputs reflect the Company's own assumptions about the assumptions that market participants would use.

The following table presents the level within the fair value hierarchy at which the Company's financial assets are measured on a recurring basis.

Financial assets as of October 31, 2012:
	Level 1		Level 2		Level 3		Total
Assets
Investment securities available for sale	$	1,445,042	$	1,592,764	$	---	$	3,037,806

Financial assets as of July 31, 2012:
	Level 1		Level 2		Level 3		Total
Assets
Investment securities available for sale	$	1,353,365	$	51,217	$	---	$	1,404,582

The carrying amount of cash and cash equivalents at October 31, 2012 and July 31, 2012 were classified as level 1 and approximate fair value.  Long-term debt consists of bank loans and capitalized equipment leases. The demand loan payable consists of borrowings against the Company's line of credit for working capital requirements.  Based on the Company's assessment of the current financial market and corresponding risks associated with the debt and line of credit borrowings, management believes that the carrying amount of the liabilities at October 31, 2012 and July 31, 2012 were classified as level 2 and approximates fair value.  There were no financial instruments classified as level 3.

The availability of observable market data is monitored to assess the appropriate classification of financial instruments within the fair value hierarchy.  Changes in economic conditions or model-based valuation techniques may require the transfer of financial instruments from one fair value level to another.  In such instances, the transfer is reported at the beginning of the reporting period.  The Company evaluated the significance of transfers between levels based upon the nature of the financial instrument.  For the three months ended October 31, 2012 and fiscal year ended July 31, 2012 there were no transfers in or out of levels 1, 2 or 3, respectively.

f. Foreign Currencies

The financial statements of foreign subsidiaries where the local currency is the functional currency are translated into U.S. dollars using exchange rates in effect at period end for assets and liabilities and average exchange rates during each reporting period for results of operations. Translation adjustments are deferred in accumulated other comprehensive income.  Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the results of operations as incurred. The Company recorded foreign currency transaction gains/(losses) of approximately $(45,000) and $3,000 for the three months ended October 31, 2012 and October 29, 2011, respectively.  

The financial statements of foreign subsidiaries located in highly inflationary economies are remeasured as if the functional currency were the U.S. dollar. The remeasurement of local currencies into U.S. dollars creates transaction adjustments which are included in net income. There were no highly inflationary economy translation adjustments for fiscal year 2012 and through the first quarter of fiscal year 2013.

g. Income Taxes

The Company follows the asset and liability approach to account for income taxes.  This approach requires the recognition of deferred tax liabilities and assets for the expected future tax consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities.  Although realization is not assured, management believes it is more likely than not that the recorded net deferred tax assets will be realized.  Since in some cases management has utilized estimates, the amount of the net deferred tax asset considered realizable could be reduced in the near term.  No provision has been made for United States income taxes applicable to undistributed earnings of foreign subsidiaries as it is the intention of the Company to indefinitely reinvest those earnings in the operations of those entities.

Income tax expense includes U.S. and international income taxes, determined using the applicable statutory rates.  A deferred tax liability is recognized for all taxable temporary differences, and a deferred tax asset is recognized for all deductible temporary differences and net operating loss carryforwards.

The Company has significant deferred tax assets, resulting principally from contract reserves and accrued expenses.  The Company periodically evaluates the likelihood of realization of deferred tax assets, and provides for a valuation allowance when necessary.

Additionally, the Financial Accounting Standards Board ("FASB") Accounting Standard Codification ("ASC") Topic Income Taxes prescribes a recognition threshold and measurement principles for financial statement disclosure of tax positions taken or expected to be taken on a tax return.   A tax position is a position in a previously filed tax return or a position expected to be taken in a future tax filing that is reflected in measuring current or deferred income tax assets and liabilities. Tax positions shall be recognized only when it is more likely than not (likelihood of greater than 50%), based on technical merits, that the position will be sustained. Tax positions that meet the more likely than not threshold should be measured using a probability weighted approach as the largest amount of tax benefit that is greater than 50% likely of being realized upon settlement. Whether the more-likely-than-not recognition threshold is met for a tax position, is a matter of judgment based on the individual facts and circumstances of that position evaluated in light of all available evidence.  The Company recognizes interest accrued related to unrecognized tax benefits in interest expense and penalties in administrative and indirect operating expenses.

h. Earnings Per Share (EPS)

Basic and diluted EPS is computed by dividing income available to common shareholders by the weighted average number of common shares outstanding for the period.  The Company allocates undistributed earnings between the classes on a one-to-one basis when computing earnings per share.  As a result, basic and fully diluted earnings per Class A and Class B shares are equal amounts.  See Note 11 to Consolidated Financial Statements for additional information.

i. Comprehensive Income

Comprehensive income is defined as "the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources." The term "comprehensive income" is used to describe the total net earnings plus other comprehensive income. Other comprehensive income includes currency translation adjustments on foreign subsidiaries and unrealized gains or losses on available-for-sale securities.

j. Impairment of Long-Lived Assets

 The Company assesses recoverability of the carrying value of long-lived assets by estimating the future net cash flows (undiscounted) expected to result from the asset, including eventual disposition. If the future net cash flows are less than the carrying value of the asset, an impairment loss is recorded equal to the difference between the asset's carrying value and fair value. The Company identified no events or changes in circumstances that necessitated an evaluation for an impairment of long lived assets.

k. Goodwill

The total goodwill of approximately $1.2 million is subject to an annual assessment for impairment.  The Company's most recent annual impairment assessment for goodwill was completed during the fourth quarter of fiscal year 2012. The results of this assessment showed that the fair values of the reporting units, using a discounted cash flow method, to which goodwill is assigned was in excess of the book values of the respective reporting units, resulting in the identification of no goodwill impairment. Goodwill is also assessed for impairment between annual assessments whenever events or circumstances make it more likely than not that an impairment may have occurred. The Company identified no events or changes in circumstances during the year that necessitated an evaluation for an impairment of goodwill.

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Summary of Significant Accounting Policies (Tables)

3 Months Ended

Oct. 31, 2012

Summary of Significant Accounting Policies [Abstract]

Revenue Recognition Policies

Substantially all of the Company's revenue is derived from environmental consulting work. The consulting revenue is principally derived from the sale of labor hours. The consulting work is performed under a mix of fixed price, cost-type, and time and material contracts. Contracts are required from all customers. Revenue is recognized as follows:

Contract Type	Work Type	Revenue Recognition Policy
Time and Materials	Consulting	As incurred at contract rates.
Fixed Price	Consulting	Percentage of completion, approximating the ratio of either total costs or Level of Effort (LOE) hours incurred to date to total estimated costs or LOE hours.
Cost-Type	Consulting	Costs as incurred.  Fixed fee portion is recognized using percentage of completion determined by the percentage of LOE hours incurred to total LOE hours in the respective contracts.

Fair Value of Financial Instruments

The following table presents the level within the fair value hierarchy at which the Company's financial assets are measured on a recurring basis.

Financial assets as of October 31, 2012:
	Level 1		Level 2		Level 3		Total
Assets
Investment securities available for sale	$	1,445,042	$	1,592,764	$	---	$	3,037,806

Financial assets as of July 31, 2012:
	Level 1		Level 2		Level 3		Total
Assets
Investment securities available for sale	$	1,353,365	$	51,217	$	---	$	1,404,582

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Debt and Capital Lease Obligations (Details) (USD $)	3 Months Ended
	Oct. 29, 2011	Oct. 31, 2012	Jul. 31, 2012
Debt Instrument [Line Items]
Long-term Debt, Current and Noncurrent		$ 540,856	$ 591,095
Current portion of long-term debt and capital lease obligations		(453,611)	(488,460)
Long-term debt and capital lease obligations		87,245	102,635
Long-term Debt, by Maturity [Abstract]
November 2012 - October 2013		453,611
November 2013 - October 2014		69,945
November 2014 - October 2015		17,300
November 2015 - October 2016		0
November 2016 - October 2017		0
Thereafter		0
Long-term Debt, Total		540,856	591,095
Various Bank Loans and Advances [Member]
Debt Instrument [Line Items]
Long-term Debt, Current and Noncurrent		324,296	372,744
Interest rate, minimum (in hundredths)	5.00%
Interest rate, maximum (in hundredths)	14.00%
Long-term Debt, by Maturity [Abstract]
Long-term Debt, Total		324,296	372,744
Capital Lease Obligations [Member]
Debt Instrument [Line Items]
Long-term Debt, Current and Noncurrent		216,560	218,351
Average interest rate (in hundredths)		11.00%
Long-term Debt, by Maturity [Abstract]
Long-term Debt, Total		$ 216,560	$ 218,351

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Earnings Per Share

3 Months Ended

Oct. 31, 2012

Earnings Per Share [Abstract]

Earnings Per Share

11. Earnings Per Share

            The computation of basic earnings per share reconciled to diluted earnings per share follows:

	Three months ended
	October 31, 2012		October 29, 2011
Total income available to common stockholders	$	242,527	$	1,159,777
Dividend declared		---		---
Undistributed earnings		242,527		1,159,777
Weighted-average common shares outstanding (basic)		4,244,010		4,203,445
Distributed earnings per share	$	---	$	---
Undistributed earnings per share		.06		.28
Total earnings per share	$	.06	$	.28

After consideration of all the rights and privileges of the Class A and Class B stockholders discussed in Note 9, in particular the right of the holders of the Class B common stock to elect no less than 75% of the Board of Directors making it highly unlikely that the Company will pay a dividend on Class A common stock in excess of Class B common stock, the Company allocates undistributed earnings between the classes on a one-to-one basis when computing earnings per share. As a result, basic and fully diluted earnings per Class A and Class B share are equal amounts.

The Company has determined that its unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities. These securities shall be included in the computation of earnings per share pursuant to the two-class method. The resulting impact was to include unvested restricted shares in the basic weighted average shares outstanding calculation.