The Montana District of

Transcription

1 The Montana District of 1st Quarter 2015 (1 January 31 March 2015) Financial Statements Unaudited 1

2 Board of Directors The Montana District of the Lutheran Church - Missouri Synod 30 Broadwater Avenue Billings, Montana The Montana District LCMS 1st Quarter 2015 Financial Statements TABLE OF CONTENTS Page No. TABLE OF CONTENTS 2 FINANCIAL STATEMENTS: 1st QTR STATEMENT OF FINANCIAL POSITION 3-5 1st QTR STATEMENT OF CASH FLOWS 6 1st QTR STATEMENT OF INCOME AND EXPENSES 7-11 YTD STATEMENT OF INCOME AND EXPENSES BY CLASS FINANCIAL GRAPH 16 NOTES TO FINANCIAL STATEMENTS

3 Montana District - Lutheran Church Missouri Synod Statement of Financial Position (Unaudited) 1st Quarter 2015 compared to previous Quarter Mar 31, 15 Dec 31, 14 $ Change % Change ASSETS Current Assets Checking/Savings Yellowstone Bank Checking 68, , (43,551.24) (38.7%) Yellowstone Bank Savings General Savings (4,282.55) 93, (98,210.33) (104.56%) Car Replacement Fund 9, , , % Mercy Fund 24, , % Scholarship payables 7, , % Student Loan Repay Fund Payable 30, , % Total Yellowstone Bank Savings 67, , (70,762.61) (51.32%) Pay Pal - Mercy Fund Donations % Total Checking/Savings 136, , (114,311.90) (45.65%) Accounts Receivable Accounts Receivable - Invoiced % Total Accounts Receivable % Total Current Assets 136, , (113,665.19) (45.39%) Fixed Assets Property Plant & Equipment 66, , % Total Fixed Assets 66, , % Other Assets Long Term Invest. - Restricted LCMS Foundation Funds Scholarship Fund Scholarship Fund - Corpus 439, , % Gain/Loss Scholarship Mkt-Mkt (1,647.75) (9,626.63) 7, % Total Scholarship Fund 438, , , % "The Fund" - Missions MT District "The Fund" 608, , % Gain/Loss "The Fund" Mkt-Mkt 116, , , % Total "The Fund" 724, , , % Total LCMS Foundation Funds 1,162, ,131, , % LCEF Funds Schools Fund Interest Payable. #019 1, % Schools Fund Prin. # , , % Total LCEF Funds 92, , % Thrivent MF - for Scholarships Large Cap Value 24, , % Large Cap Stock 21, , % Balanced Income Plus 24, , % 3

4 Total Thrivent MF - for Scholarships 69, , , % Total Long Term Invest. - Restricted 1,325, ,291, , % Long Term Invest.- Unrestricted LCEF Funds LCEF Savings 2yr CD # , , % LCEF Savings # , , % LCEF Savings # , , % Total LCEF Funds 291, , , % Total Long Term Invest.- Unrestricted 291, , , % Total Other Assets 1,616, ,432, , % TOTAL ASSETS 1,819, ,749, , % LIABILITIES & EQUITY Liabilities Current Liabilities Accounts Payable 3, , (1,460.43) (32.25%) Credit Cards 1, , % Other Current Liabilities Payroll Liabilities % Total Other Current Liabilities % Total Current Liabilities 1, , % Total Liabilities 1, , % Equity Restricted Net Assets Campus Ministry Support 1, , % Convention Assessments 57, , , % District Conferences & Retreats Pastor/Teacher & Cir Conference fees 4, , , % Total District Conferences & Retreats 4, , , % Indian Ministry MT District 17, , (495.00) (2.77%) LCEF Investments District Schools Fund Principal 91, , % District Schools Fund Interest Payable 1, % Total LCEF Investments 92, , % Mercy Fund 24, , % LCMS Foundation Investments MT District "THE FUND" BOD 587, , , % Scholarship Fund Principal 439, , % Scholarship Fund Income payable 10, , , % Total LCMS Foundation Investments 1,037, ,024, , % Thrivent MFs - Scholarships 69, , , % Student Loan Repay Fund Payable 30, , % Total Restricted Net Assets 1,336, ,273, , % Unrestricted Land/Building/Equip 66, , % Unrestricted Net Assets (RE) 342, (2,647.72) 345, ,030.28% 4

5 Net Income 70, , (337,049.94) (82.77%) Total Equity 1,814, ,744, , % TOTAL LIABILITIES & EQUITY 1,816, ,744, , % The accompanying NOTES TO THE FINANCIAL STATEMENTS are an integral part of these statements. 5

6 Montana District - Lutheran Church Missouri Synod Statement of Cash Flows (Unaudited) 1st Quarter 2015 Jan - Mar 15 OPERATING ACTIVITIES Net Income 70, Adjustments to reconcile Net Income to net cash provided by operations: Accounts Receivable - Invoiced (646.71) Accounts Payable (1,460.43) CHASE MC #5609 1, Payroll Liabilities:403b Retirement Plan- Employee Payroll Liabilities: Taxable GTL Benefits - Employee (28.84) Payroll Liabilities: Unemployment Ins Company Paid (38.59) Net cash provided by Operating Activities 69, INVESTING ACTIVITIES Long Term Invest. - Restricted: LCMS Foundation Funds: Scholarship Fund: Gain/Loss Scholarship Mkt-Mkt (7,978.88) Long Term Invest. - Restricted: LCMS Foundation Funds: "The Fund": Gain/Loss "The Fund" Mkt-Mkt (23,714.75) Long Term Invest. - Restricted: LCEF Funds: Schools Fund Interest Payable. #019 (292.28) Long Term Invest. - Restricted: Thrivent MF - for Scholarships: Large Cap Value (48.06) Long Term Invest. - Restricted: Thrivent MF - for Scholarships: Large Cap Stock (857.16) Long Term Invest. - Restricted: Thrivent MF - for Scholarships: Balanced Income Plus (672.25) Long Term Invest.- Unrestricted: LCEF Funds: LCEF Savings 2yr CD #8787 (150,008.22) Long Term Invest.- Unrestricted: LCEF Funds: LCEF Savings #2734 (403.94) Net cash provided by Investing Activities (183,975.54) FINANCING ACTIVITIES Restricted Net Assets: Convention Assessments 21, Restricted Net Assets: District Conferences & Retreats: Pastor/Teacher & Cir Conference fees 1, Restricted Net Assets: Indian Ministry MT District (495.00) Restricted Net Assets: LCEF Investments: District Schools Fund Interest Payable Restricted Net Assets: Mercy Fund 24, Restricted Net Assets: LCMS Foundation Investments: MT District "THE FUND" BOD 5, Restricted Net Assets: LCMS Foundation Investments: Scholarship Fund Income payable 7, Restricted Net Assets: Thrivent MFs - Scholarships 1, Unrestricted Net Assets (RE) (62,218.92) Net cash provided by Financing Activities Net cash increase for period (114,311.90) Cash at beginning of period 250, Cash at end of period 136, The accompanying NOTES TO THE FINANCIAL STATEMENTS are an integral part of these statements. 6

7 1st Quarter 2015 Montana District - Lutheran Church Missouri Synod Statement of Income and Expenses (Unaudited) Jan - Mar 15 Oct - Dec 14 $ Change % Change Ordinary Income/Expense Income PUBLIC SUPPORT District Congregations 138, , (25,985.88) (15.84%) Convention Income Vendor Income % Total Convention Income % Donations & Grants Individual Donations , (66,269.00) (99.45%) District Expense Reimbursements % Restricted Donations Convention Assessments 21, , % District Conferences & Retreats Pastor/Teacher & Cir Conference fees 3, , % Total District Conferences & Retreats 3, , % District Subsidized Ministries Emmaus Lutheran Mission (B/T/L) 5, , , % Total District Subsidized Ministries 5, , , % Mercy Fund 30, , % Education Conference (120.00) (100.0%) Indian Ministry MT District % Total Restricted Donations 62, , , ,250.51% Other Donations Misc. Donations % Total Other Donations % Total Donations & Grants 63, , (8,306.43) (11.54%) Total PUBLIC SUPPORT 202, , (33,892.31) (14.36%) REVENUE Investment Revenue (U) LCEF - CD Savings # % LCEF - Savings # (8.91) (50.11%) LCEF - Savings # % Yellowstone Bank Savings % Trust Revenue (U) Wegner Found Trust Income % Total Trust Revenue (U) % Total Investment Revenue (U) % Investment Revenue (R) LCEF Investments (R) 7

8 LCEF-District School Interest pay # % Total LCEF Investments (R) % LCEF Operating Results for Student Loan Repayments (R) , (34,692.00) (100.0%) LCMS Foundation "The Fund" (R) "The Fund" Earned Income 6, , , % "The Fund" Mkt G/L/E (Mkt-Mkt) 17, (209.10) 17, ,340.45% Total LCMS Foundation "The Fund" (R) 23, , , % LCMS Found Scholarship Fund (R) Realized Gain/Loss (6,423.37) 0.00 (6,423.37) (100.0%) Scholarship Fund Earned Income 3, , , % Gain/loss-Scholarship (Mkt-Mkt) 11, (88.27) 11, ,597.94% Total LCMS Found Scholarship Fund (R) 7, , , % Thrivent MF - Scholarships 1, , (471.78) (23.02%) Total Investment Revenue (R) 33, , (8,766.87) (20.71%) Total REVENUE 34, , (8,619.69) (20.07%) NET ASSETS RELEASED Restricted Net Assets Released Convention Assessments (167.24) 0.00 (167.24) (100.0%) District Conferences & Retreats Pastors/Teacher Cir Conference fees (2,062.32) (1,863.26) (199.06) (10.68%) Total District Conferences & Retreats (2,062.32) (1,863.26) (199.06) (10.68%) District Subsidized Ministries Emmaus Lutheran Mission (B/T/L) (5,748.00) (9,166.33) 3, % Total District Subsidized Ministries (5,748.00) (9,166.33) 3, % Education Conference 0.00 (120.00) % Indian Ministry MT District (1,172.00) (720.00) (452.00) (62.78%) LCMS Foundation "The Fund" (18,586.60) (17,067.41) (1,519.19) (8.9%) LCMS Found Scholarship Fund 0.00 (2,553.85) 2, % Mercy Fund (5,626.48) 0.00 (5,626.48) (100.0%) Student Loan Repay (SLR) Fund 0.00 (30,000.00) 30, % Total Restricted Net Assets Released (33,362.64) (61,490.85) 28, % Unrestricted Net Asset Released 33, , (28,128.21) (45.74%) Total NET ASSETS RELEASED % Total Income 236, , (42,512.00) (15.24%) Gross Profit 236, , (42,512.00) (15.24%) Expense PROGRAM EXPENSE SYNOD SUPPORT - 25% Cong Support 34, , (6,496.46) (15.84%) CONVENTIONS District Convention % Total CONVENTIONS % GRANTS & SUBSIDIZED MISSIONS Dist. Student Loan Repay Grants , (27,390.75) (100.0%) Emmaus Lutheran Mission (B/T/L) 5, , , % 8

9 MISSION PLANT PASTOR 18, , % Circle of Life - Lame Deer 19, , % Crow Lutheran Ministry 12, , (148.50) (1.13%) Mercy Fund 5, , % Total GRANTS & SUBSIDIZED MISSIONS 62, , (19,326.19) (23.54%) ECCLESIASTICAL SERVICES CIRCUIT VISITORS 1, , (104.22) (9.23%) DISTRICT CONFERENCES Pastor/Teacher & Cir Conference 2, , % Pastors Wives Retreat (50.87) (100.0%) Retired Pastor/Pastor Wives Expenses (258.14) (100.0%) Total DISTRICT CONFERENCES 2, , (109.95) (5.06%) DISTRICT PRESIDENT Cell Phone (351.74) (62.39%) District Planning Meetings (262.28) (100.0%) Doxology / Pastor Assistance % District Reconciler , (1,351.44) (100.0%) President Hospitality (16.31) (32.08%) President Travel 3, , % Synod Assessments-District Office (716.49) (100.0%) Synod PIF/SET Data Base Program % Vehicles-Insurance/Registration (281.53) (100.0%) District President MISC % Total DISTRICT PRESIDENT 5, , (992.92) (16.09%) Total ECCLESIASTICAL SERVICES 8, , (1,207.09) (12.74%) Total PROGRAM EXPENSE 105, , (26,862.50) (20.26%) DISTRICT OFFICERS AND ADMIN BOARD OF DIRECTORS Board & Committee Meetings 2, , % Insurance-Travel & Accident % Office Building Building & Janitor Supplies (5.76) (100.0%) Insurance-Property 3, , % Taxes-SIDs (286.36) (100.0%) Utilities % Total Office Building 4, , % BOD Expenses BOD action directed Spanish Mission Pledge - Warner % Thrivent Choice Lutherans for Life % BOD action directed - Other 8, , , % Total BOD action directed 9, , , % BOD Misc % Total BOD Expenses 9, , , % 9

10 Total BOARD OF DIRECTORS 16, , , % PRESIDENT OFFICE ADM ADM Secretary Salary 2, , % ADM Secretary Payroll Expense % Computer Support % Continuing Ed. & Resource Mat (564.91) (98.44%) Equipment Maintenance % Equipment Purchases 1, , % Equipment Rental / Lease % Office Supplies (23.85) (82.7%) Office Telephone/Internet (172.22) (43.47%) Postage & Shipping ,967.88% President Salary 14, , , % President Salary Housing Allow 3, , % President 3% CRP SS Offset % President CPS Benefits 5, , % President Payroll Expense % Total PRESIDENT OFFICE ADM 30, , , % TREASURER Accounting/Bookkeeping Costs % Cell Phone Data Plan Reimburse % Computer Support (423.00) (83.19%) Conferences and Workshops ,746.26% Depreciation Expense , (9,439.52) (100.0%) District Payroll Expenses 1, , (399.40) (27.41%) Pay Pal - Mercy Fund Trans Fees % Periodicals & Resource Mat (81.50) (100.0%) Treasurer Salary 7, , (558.48) (6.81%) Treasurer- CPS Benefits % Treasurer - Payroll Expenses % Total TREASURER 10, , (10,139.44) (48.89%) Total DISTRICT OFFICERS AND ADMIN 57, , , % MINISTRY BOARD AND COMMITTEES EDUCATION/CAMPUS MINSTRY Conferences & Workshops (959.99) (100.0%) Professional Association Fees (250.00) (100.0%) Program Activities Education Ministry , (2,264.21) (100.0%) Total Program Activities , (2,264.21) (100.0%) Total EDUCATION/CAMPUS MINSTRY , (3,474.20) (100.0%) INDIAN MINISTRY Program Activities 1, % Total INDIAN MINISTRY 1, % MISSIONS/EVANGELISM MINISTRY MISSIONS/EVANGELISM ADMIN 10

11 Conferences and Workshops 1, % Program Activities Missions (960.53) (100.0%) Total Program Activities (960.53) (100.0%) Total MISSIONS/EVANGELISM ADMIN 1, , (322.79) (22.51%) Total MISSIONS/EVANGELISM MINISTRY 1, , (322.79) (22.51%) STEWARDSHIP/HUMAN CARE MINISTRY Program Activities Human Care Jan - Mar 15 Oct - Dec 14 $ Change % Change Life Issues % Total Human Care % Stewardship (250.00) (100.0%) Total Program Activities (186.55) (20.45%) Total STEWARDSHIP/HUMAN CARE MINISTRY (186.55) (20.45%) Total MINISTRY BOARD AND COMMITTEES 3, , (3,531.54) (54.0%) Total Expense 166, , (26,055.70) (13.55%) Net Ordinary Income 70, , (16,456.30) (19.0%) Net Income 70, , (16,456.30) (19.0%) The accompanying NOTES TO THE FINANCIAL STATEMENTS are an integral part of these statements. 11

12 1st Quarter 2015 Montana District - Lutheran Church Missouri Synod 1 st Quarter Statement of Income and Expenses by Class (Un-Audited) Unrestricted Assets Restricted Assets TOTAL Ordinary Income/Expense Income PUBLIC SUPPORT District Congregations 138, , Convention Income Vendor Income Total Convention Income Donations & Grants Individual Donations District Expense Reimbursements Restricted Donations Convention Assessments , , District Conferences & Retreats Pastor/Teacher & Cir Conference fees , , Total District Conferences & Retreats , , District Subsidized Ministries Emmaus Lutheran Mission (B/T/L) , , Total District Subsidized Ministries , , Mercy Fund , , Indian Ministry MT District Total Restricted Donations , , Other Donations Misc. Donations Total Other Donations Total Donations & Grants 1, , , Total PUBLIC SUPPORT 140, , , REVENUE Investment Revenue (U) LCEF - CD Savings # LCEF - Savings # LCEF - Savings # Yellowstone Bank Savings Trust Revenue (U) Wegner Found Trust Income Total Trust Revenue (U) Total Investment Revenue (U) Investment Revenue (R) LCEF Investments (R) LCEF-District School Interest pay

13 Total LCEF Investments (R) LCMS Foundation "The Fund" (R) "The Fund" Earned Income , , "The Fund" Mkt G/L/E (Mkt-Mkt) , , Total LCMS Foundation "The Fund" (R) , , LCMS Found Scholarship Fund (R) Realized Gain/Loss 0.00 (6,423.37) (6,423.37) Scholarship Fund Earned Income , , Gain/loss-Scholarship (Mkt-Mkt) , , Total LCMS Found Scholarship Fund (R) , , Thrivent MF - Scholarships , , Total Investment Revenue (R) , , Total REVENUE , , NET ASSETS RELEASED Restricted Net Assets Released Convention Assessments 0.00 (167.24) (167.24) District Conferences & Retreats Pastors/Teacher Cir Conference fees 0.00 (2,062.32) (2,062.32) Total District Conferences & Retreats 0.00 (2,062.32) (2,062.32) District Subsidized Ministries Emmaus Lutheran Mission (B/T/L) 0.00 (5,748.00) (5,748.00) Total District Subsidized Ministries 0.00 (5,748.00) (5,748.00) Indian Ministry MT District 0.00 (1,172.00) (1,172.00) LCMS Foundation "The Fund" 0.00 (18,586.60) (18,586.60) Mercy Fund 0.00 (5,626.48) (5,626.48) Total Restricted Net Assets Released 0.00 (33,362.64) (33,362.64) Unrestricted Net Asset Released 33, , Total NET ASSETS RELEASED 33, (33,362.64) 0.00 Total Income 174, , , Gross Profit 174, , , Expense PROGRAM EXPENSE SYNOD SUPPORT - 25% Cong Support 34, , CONVENTIONS District Convention Total CONVENTIONS GRANTS & SUBSIDIZED MISSIONS Emmaus Lutheran Mission (B/T/L) 5, , MISSION PLANT PASTOR 18, , Circle of Life - Lame Deer 19, , Crow Lutheran Ministry 12, , Mercy Fund 5, , Total GRANTS & SUBSIDIZED MISSIONS 62, , ECCLESIASTICAL SERVICES 13

14 CIRCUIT VISITORS 1, , DISTRICT CONFERENCES Pastor/Teacher & Cir Conference 2, , Total DISTRICT CONFERENCES 2, , DISTRICT PRESIDENT Cell Phone Doxology / Pastor Assistance President Hospitality President Travel 3, , Synod PIF/SET Data Base Program District President MISC Total DISTRICT PRESIDENT 5, , Total ECCLESIASTICAL SERVICES 8, , Total PROGRAM EXPENSE 105, , DISTRICT OFFICERS AND ADMIN BOARD OF DIRECTORS Board & Committee Meetings 2, , Insurance-Travel & Accident Office Building Insurance-Property 3, , Utilities Total Office Building 4, , BOD Expenses BOD action directed Spanish Mission Pledge - Warner Thrivent Choice - Lutherans for Life BOD action directed - Other 8, , Total BOD action directed 9, , BOD Misc Total BOD Expenses 9, , Total BOARD OF DIRECTORS 16, , PRESIDENT OFFICE ADM ADM Secretary Salary 2, , ADM Secretary Payroll Expense Computer Support Continuing Ed. & Resource Mat Equipment Maintenance Equipment Purchases 1, , Equipment Rental / Lease Office Supplies Office Telephone/Internet Postage & Shipping President Salary 14, , President Salary Housing Allow 3, , President CPS Benefits 5, ,

15 President Payroll Expense Total PRESIDENT OFFICE ADM 30, , TREASURER Accounting/Bookkeeping Costs Cell Phone Data Plan Reimburse Computer Support Conferences and Workshops District Payroll Expenses 1, , Pay Pal - Mercy Fund Trans Fees Treasurer Salary 7, , Treasurer- CPS Benefits Treasurer - Payroll Expenses Total TREASURER 10, , Total DISTRICT OFFICERS AND ADMIN 57, , MINISTRY BOARD AND COMMITTEES INDIAN MINISTRY Program Activities 1, , Total INDIAN MINISTRY 1, , MISSIONS/EVANGELISM MINISTRY MISSIONS/EVANGELISM ADMIN Conferences and Workshops 1, , Total MISSIONS/EVANGELISM ADMIN 1, , Total MISSIONS/EVANGELISM MINISTRY 1, , STEWARDSHIP/HUMAN CARE MINISTRY Program Activities Human Care Life Issues Total Human Care Total Program Activities Total STEWARDSHIP/HUMAN CARE MINISTRY Total MINISTRY BOARD AND COMMITTEES 3, , Total Expense 166, , Net Ordinary Income 7, , , Net Income 7, , , The accompanying NOTES TO THE FINANCIAL STATEMENTS are an integral part of these statements. 15

16 1st Qtr. Financial Graphs 16

17 Board of Directors Montana District of the Lutheran Church - Missouri Synod 30 Broadwater Avenue Billings, Montana NOTES TO THE FINANCIAL STATEMENTS NOTE 1. NATURE OF THE ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Montana District of the Lutheran Church Missouri Synod, a non-profit organization, is one of the 35 geographic Districts of The Lutheran Church- Missouri Synod (the Synod). The Montana District encompasses 69 congregations in the state of Montana, Idaho and North Dakota. The Synod established its District offices to more effectively achieve its objectives and assist its congregations and their members in conserving and promoting the unity of the faith, and in carrying out their functions of worship, witness, teaching and nurture, service and support. The District relies on donations from its member congregations for a significant portion of its support. As shown on the statement of Income and Expenses, unrestricted support from District congregations totaled $138,022 for the 1st Quarter of 2015ending 31 March 2015 a total of 58% of total income. The Montana District of the Synod is an organization described in Section 501(c)(3) of the Internal Revenue Code of 1986, as amended, and has received a determination letter from the Internal Revenue Service stating that it is exempt from federal income taxes on the income from related exempt activities under Code Section 501(a). No provisions for federal income taxes have been made in the accompanying financial statements because of the exemption and there was no unrelated business income for the reporting period. 1.a. BASIS OF ACCOUNTING The Montana District-LCMS uses the accrual method of accounting in accordance with generally accepted accounting principles (GAAP) in the United States of America. With this measurement focus operating statements present increases (e.g. revenues) and decreases (e.g. expenses) in total net assets. Revenues are recognized when they are earned and expenses when they are incurred. Contributions received are recorded as unrestricted or temporarily restricted depending on the existence or nature of any donor restriction imposed at the time the gift was given. Support that is restricted by the donor is reported as an increase in temporarily restricted net assets. When a restriction expires (that is, when a stipulated time restriction ends or purpose restriction is accomplished), temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statements of activities as net assets released from restrictions. 1.b CASH AND INVESTMENTS For financial statement purposes, the Montana District-LCMS considers currency, demand deposits, and liquid investments with a maturity of three months or less, when purchased, to be cash and cash equivalents. At times throughout the year, the cash and cash equivalent balances may exceed amounts insured by the Federal Deposit Insurance Corporation (FDIC). The Lutheran Church Extension Fund (LCEF), and LCMS Foundation are religious organizations, therefore amounts held by them are not insured by the FDIC. 1.c. FUND ACCOUNTING To ensure observance of limitations and restrictions placed on the use of resources available to the Montana District-LCMS, the accounts of the district are maintained in accordance with the principles of fund accounting. This is the procedure by which resources for various purposes are classified for accounting and reporting purposes into funds established according to their nature and purposes. Separate accounts are maintained for each fund; however, in the accompanying financial statements, funds that have similar characteristics have been combined into fund/class groups. Accordingly, all financial transactions have been recorded and reported in the unrestricted, and temporarily restricted as noted below. 1.d. UNRESTRICTED NET ASSETS Unrestricted net assets result from revenues from receiving unrestricted contributions from individual donors, receiving interest from investments, and performing administrative functions. The only limits on the use of unrestricted net assets are the broad limits resulting from the nature of the organization, the environment in which it operates, and the purposes specified in its articles of incorporation. 17

18 1.e. TEMPORARY RESTRICTED NET ASSETS NOTES TO THE FINANCIAL STATEMENTS (continued) Temporary restricted net assets contain donor-imposed restrictions that expire upon the passage of time (Normally limited to 5 years) or once specific actions have been undertaken by the Montana District. Temporarily restricted net assets consist of the following as of the date of this report: Campus Ministry $1,520 Convention Assessments $58, Pastor / Teacher & Circuit Conferences $$4, Indian Ministry $17, Schools Fund Principal $91, Schools fund Interest payable $1, Mercy Fund $24, The Fund for Missions $563, Scholarship Fund Principal $439, Scholarship Fund Interest Payable $2, Thrivent Mutual Funds for Scholarships $68, Student Loan Repayment Funds (LCEF Operating Results) $30, Total $1,302, f. CAPITAL ASSETS The District s property, plant, equipment, and infrastructure with useful lives of more than one year and in excess of $5,000 are stated at historical cost and comprehensively reported in the financial statements. Historical cost was established at the initial booking of the capital assets by determining actual costs. The costs of normal maintenance and repair are not capitalized. Depreciation on capital assets is provided over their estimated useful lives on the straightline method. The useful lives of these assets have been estimated as follows: Buildings & Improvements Automobiles and Equipment years 5-10 years 1.g. 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 that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. NOTE 2. CASH 2.a. At period end 31 March, 2015 the carrying amount of the Districts cash deposits were $520, One local bank has cash deposits of $136, in checking and savings accounts which is covered by FDIC Insurance in the name of the District. An additional $384, of cash deposits ($291, unrestricted and $92, restricted) are held as investments by a brokerage firm (LCEF) in the name of the District and are not covered by FDIC. For purposes of the statement of cash flows, the District considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. NOTE 3. INVESTMENTS As of 31 March, 2015 the carrying amount of temporarily restricted Synod investments was $1,232, The investments consist of two different investment tools. One investment of $1,162, is held by the Lutheran Church Missouri Synod Foundation. The temporarily restricted investment is in the Standard Fund Account Conservative Balanced Fund. This is a blended portfolio that holds both fixed income (Core bond Fund, High Yield Bond Fund) and equity securities (Domestic Equity Fund, International Equity Fund). This portfolio has a high exposure to fixed income focusing primarily on income generation with a limited potential for growth. This fund is a jointly managed by Willshire Investments under contract with the LCMS Foundation board. The second temporarily restricted investment ($63,841.72) is held by Thrivent Financial. The investment is in the Thrivent Large Cap Stock Fund-A ($20,433), Thrivent Large Cap Value Fund-A ($24,175), and Thrivent Balanced Income Plus Fund-A ($23,656) NOTE 4. PLANT, PROPERTY, AND EQUIPMENT Capital assets are reported at historical cost. Historical cost was established at the initial booking of capital assets by determining actual costs or estimating using standard costing procedures. Donated property is recorded at fair value as of the date of the gift. 18

19 4.a. CHANGES IN CAPITAL ASSETS NOTES TO THE FINANCIAL STATEMENTS (continued) The value and changes to capital assets are recorded at year end (31 December). The values as of December 31, 2014 along with accumulated depreciation are $66, as shown in the Statement of Financial Position report (page 3). NOTE 5. ACCOUNTS RECEIVABLE 5.a Congregation Assessments Each congregation of The Montana District - LCMS is sent an annual Assessment Invoice in January of each year. These assessment are used to cover the costs of the tri-annual District and Synod conventions and the annual District Pastor and regional Pastor Conferences. The 2014 convention assessment (set annually by the Board of Directors) is $2.07 per communicant member. The Pastor Conference assessment for 2015 is $35 per conference or $70 per Pastor to cover the two conferences each Pastor is required to attend each year. As of 31 March 2015 three congregations had not paid their 2015 assessments which total $ b. Receivables (Grants and Misc.). The Montana District was the recipient of a Montana LWML Grant in the amount of $3,120 for 2013 and This grant was awarded and used for the Montana Indian Ministry to support the monthly Food for Thought radio broadcasts to the north eastern Indian reservations. $1,560 was received and is being used for the 2014 budget year. NOTE 6. OTHER DONATIONS AND REVENUES: Other unrestricted donations and revenues of $8, came from the following sources: (1) $4, from the 2013 IRS Health Care Tax Credit, and (2) $3, from the Thrivent Choice program. All Thrivent Choice program donations are now being forwarded to Lutherans for Life per 5 May 2014 Board of Director action. $3,262 in reimbursed 2014 Synod Convention Assessments was received and will be used to offset 2015 District and 2016 Synod Convention expenses. NOTE 7. OTHER Board of Directors Expenses: Other expenses of $10, came from the following sources: (1) $199 for a outside storage shed for District snow blower and fuel. (2) $ for the Mission Plant Pastor to purchase a projector for bible classes and presentations, and (3) $10,000 grant for Concordia Williston to purchase a parsonage for their new Pastor and family. NOTE 8. RISK MANAGEMENT The Montana District of the Lutheran Church - Missouri Synod is exposed to various types of risk of loss, including: a) damage to and loss of property and contents; b) employee torts; c) professional liability, i.e. errors and omissions; d) environmental damage; e) workers' compensation, i.e. employee injuries and f) medical insurance costs of employees. Several methods are used to provide insurance for these risks. Commercial policies, transferring all risks of loss, except for relatively small deductible amounts, are purchased for property and contents damage, employee torts, professional liabilities, and employee medical insurance. The Montana District of the Lutheran Church - Missouri Synod s employees is covered by the Montana State Fund, a state fund for workers compensation. The Montana District of the Lutheran Church - Missouri Synod has no coverage for potential losses from environmental damages. 19