EVANGELISM EXPLOSION INTERNATIONAL, INC.

Transcription

1 EVANGELISM EXPLOSION INTERNATIONAL, INC. Financial Statements With Independent Auditors Report

2 Table of Contents Independent Auditors Report 1 Financial Statements Statements of Financial Position 3 Statements of Activities 4 Statements of Cash Flows 5 Notes to Financial Statements 6 Supplementary Data Independent Auditors Report on Supplementary Data 16 Schedule of Functional Expenses Schedule of Functional Expenses Page

3 INDEPENDENT AUDITORS REPORT Board of Directors Evangelism Explosion III International, Inc. Arden, North Carolina We have audited the accompanying financial statements of Evangelism Explosion III International, Inc. (a nonprofit corporation) as of, and the related statements of activities and cash flows for the years then ended, and the related notes to the financial statements. Management s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors Responsibility Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. (continued)

4 Board of Directors Evangelism Explosion III International, Inc. Arden, North Carolina Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Evangelism Explosion III International, Inc. as of, and the changes in its net assets and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States. Atlanta, Georgia October 16,

5 Statements of Financial Position June 30, ASSETS: Current assets: Cash and cash equivalents $ 4,208,425 $ 3,364,667 Investments 309, ,003 Accounts receivable less allowance for doubtful accounts 53,988 35,003 Notes receivable 17,260 47,861 Inventory 238, ,417 Prepaid expenses and other assets 21, ,365 4,848,993 4,152,316 Property and equipment net 3,925,586 2,313,941 Total Assets $ 8,774,579 $ 6,466,257 LIABILITIES AND NET ASSETS: Current liabilities: Accounts payable $ 206,622 $ 207,257 Accrued vacation and other accrued expenses 106, ,305 Deferred revenue - 31,174 Notes payable current portion 2,063, ,812 2,376, ,548 Long-term liabilities Notes payable net of current portion 150,000-2,526, ,548 Net assets: Unrestricted: Undesignated 352,398 (13,608) Equity in property and equipment 1,712,206 1,721,129 2,064,604 1,707,521 Temporarily restricted: Donor-restricted worldwide ministry support 4,183,771 3,817,188 6,248,375 5,524,709 Total Liabilities and Net Assets $ 8,774,579 $ 6,466,257 See notes to financial statements -3-

6 Statements of Activities Year Ended June 30, Temporarily Temporarily Unrestricted Restricted Total Unrestricted Restricted Total SUPPORT AND REVENUE: Support: Contributions $ 1,045,078 $ 2,709,544 $ 3,754,622 $ 937,978 $ 2,817,872 $ 3,755,850 Foundation grants and estate distributions 382,796 5,050,763 5,433, ,950 7,007,456 7,366,406 Gifts-in-kind 67,168-67,168-54,998 54,998 1,495,042 7,760,307 9,255,349 1,296,928 9,880,326 11,177,254 Revenue: Training material sales 518, , , ,238 Clinics and seminars 164, , , ,943 Investment income 22,444-22,444 10,564-10,564 Other income 29,987-29,987 22,325-22,325 Total Support and Revenue 2,230,828 7,760,307 9,991,135 1,874,998 9,880,326 11,755,324 RECLASSIFICATIONS: Net assets released from restrictions: Administrative assessment 702,416 (702,416) - 502,184 (502,184) - Satisfaction of purpose restrictions 6,691,308 (6,691,308) - 7,327,942 (7,327,942) - Total Reclassifications 7,393,724 (7,393,724) - 7,830,126 (7,830,126) - EXPENSES: Program services: Worldwide ministries 5,953,029-5,953,029 6,159,890-6,159,890 Training materials 978, ,518 1,256,046-1,256,046 Clinics and seminars 619, , , ,617 7,551,003-7,551,003 8,106,553-8,106,553 Supporting activities: General and administrative 770, , , ,585 Fund-raising 946, ,069 1,048,069-1,048,069 1,716,466-1,716,466 1,807,654-1,807,654 Total Expenses 9,267,469-9,267,469 9,914,207-9,914,207 Change in Net Assets 357, , ,666 (209,083) 2,050,200 1,841,117 Net Assets, Beginning of Year 1,707,521 3,817,188 5,524,709 1,916,604 1,766,988 3,683,592 Net Assets, End of Year $ 2,064,604 $ 4,183,771 $ 6,248,375 $ 1,707,521 $ 3,817,188 $ 5,524,709 See notes to financial statements -4-

7 Statements of Cash Flows Year Ended June 30, CASH FLOWS FROM OPERATING ACTIVITIES: Change in net assets $ 723,666 $ 1,841,117 Adjustments to reconcile change in net assets to net cash provided (used) by operating activities: Amortization - 70,822 Depreciation 106,635 76,533 Realized and unrealized gains on investments (743) (2,561) Realized losses on land held for sale - 40,700 Noncash contributions: Donated securities (67,168) (54,999) Changes in operating assets and liabilities: Accounts receivable (18,985) 10,544 Notes receivable 30, Inventory 34 4,380 Prepaid expenses and other assets 151,329 (143,523) Accounts payable and accrued expenses (4,738) (110,743) Deferred revenue (31,174) 30,999 Net Cash Provided by Operating Activities 889,457 1,763,669 CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of investments (48,913) - Proceeds on sale of investments 100,926 32,213 Proceeds from land held for sale - 21,300 Purchase of property and equipment (1,718,280) (274,724) Net Cash Used by Investing Activities (1,666,267) (221,211) CASH FLOWS FROM FINANCING ACTIVITIES: Payments on notes payable (29,432) (31,922) Proceeds from new borrowing 1,650,000 - Net Cash Provided (Used) by Financing Activities 1,620,568 (31,922) Change in Cash and Cash Equivalents 843,758 1,510,536 Cash and Cash Equivalents, Beginning of Year 3,364,667 1,854,131 Cash and Cash Equivalents, End of Year $ 4,208,425 $ 3,364,667 SUPPLEMENTAL DISCLOSURES: Cash paid for interest expense $ 35,119 $ 27,667 Noncash activities donated securities $ 67,168 $ 54,999 See notes to financial statements -5-

8 Notes to Financial Statements 1. NATURE OF ORGANIZATION: Evangelism Explosion III International, Inc. (EE) is a Florida nonprofit corporation organized to glorify God by equipping local churches worldwide to multiply through friendship, evangelism, discipleship, and healthy growth. EE is exempt from income tax under Section 501(c)(3) of the U.S. Internal Revenue Code (Code), and contributions to it are deductible within the limitations prescribed by the Code. EE has been classified as a publicly supported, religious, and educational organization, which is not a private foundation under Section 509(a) of the Code. EE s goal is to cooperate with all true believers in the Lord Jesus Christ, of every denomination, to promote the spread of His gospel to everyone on earth, and to have at least one church actively engaged in the EE ministry in every nation. EE s international ministries are financed by individual churches and people dedicated to spreading the gospel around the world through the local church. The major programs include worldwide training, the sale and distribution of training materials, and U.S. based clinics and seminars on the proper use of the training materials and evangelism tools. Affiliated ministries in some other countries have been organized using the name of Evangelism Explosion. The operations of these affiliated entities are not included in these financial statements because they are not considered to be under common board control. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: The financial statements have been prepared on the accrual basis of accounting. The significant accounting policies followed are described below to enhance the usefulness of the financial statements to the reader. ESTIMATES The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates. RECLASSIFICATION Certain information from the prior year financial statements has been reclassified to conform to the current year presentation format. CASH AND CASH EQUIVALENTS Cash equivalents are defined as short-term, highly liquid debt securities that are both readily convertible to cash and have an original maturity of three months or less. The Organization maintains cash and cash equivalents in financial institutions which may, at times, exceed federally insured limits. The Organization has not experienced any losses on such accounts. -6-

9 Notes to Financial Statements 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued: INVESTMENTS Investments consist of an investment portfolio/money market account in the form of cash and money funds, CDs and equivalents, and corporate bonds. Investments are carried at fair value with gains and losses included in the statements of activities. Other investments are reported at the lower of cost or fair value. EE has established donor-advised fund accounts with a local Christian Community Foundation (Foundation). They are called The Dr. D. James and Anne Kennedy Foundation for World Evangelism and The Evangelism Explosion Training Center Endowment-Fiji Fund. Since the Foundation has variance power over the funds, they are not reported as an asset of EE. The executive committee of EE has the ability to request grants from the funds. The amounts in these funds as of, were $11,773 and $20,518, respectively. ACCOUNTS AND NOTES RECEIVABLE Accounts receivable are reported net of any anticipated losses due to uncollectible accounts. EE s policy for determining when receivables are past due or delinquent is when they exceed 30 days past due. Uncollectible accounts are reported as additions to the allowance for bad debts when it is determined the amounts will become uncollectible, which is typically when the account is one year old. EE assesses finance charges against receivables that are past due 30 days or more at the rate of 12% per annum. EE s policy for placing receivables on non-accrual status is when no collections are received on the accounts after one year. Payments received from non-accrual receivables are credited to appropriate receivable accounts. Accounts older than 30 days amounted to $1,825 and $19,200, as of, respectively. The allowance for doubtful accounts is maintained at a level which, in management s judgment, is adequate to absorb potential losses inherent in the receivable portfolio. The amount of the allowance is based on management s evaluation of the collectability of the receivable portfolio, including the nature of the portfolio, trends in historical loss experience, specific impaired accounts, and economic conditions. An allowance for uncollectible accounts has been provided for in the amount of $3,000 and $6,000, for the years ended, respectively. INVENTORY Inventory consists primarily of training materials held for resale in connection with the clinic and seminar activities. Inventory is stated at the lower of cost or market on the first-in, first-out method. PROPERTY, EQUIPMENT, AND DEPRECIATION Property and equipment in excess of $2,500 are capitalized at cost. Donated assets are capitalized at their fair market value on the date of the gift. Depreciation is computed on the straight-line method over the estimated useful lives of the assets. This ranges from eighteen months to ten years for property and equipment, and thirty years for the warehouse building in North Carolina and the buildings at the Brook at Bethpage and the Ranch. -7-

10 Notes to Financial Statements 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued: CLASSES OF NET ASSETS The financial statements report amounts by class of net assets. Unrestricted net assets are currently available for the Organization s purposes under the direction of the board, resources invested in furniture and equipment, or reserved to comply with Florida annuity statutes. Temporarily restricted net assets are contributions with donor stipulations for specific operating purposes, time restrictions, or not currently available for use until commitments regarding their use have been fulfilled. SUPPORT, REVENUE, AND EXPENSES Revenue is recognized when earned and support when contributions are made, which may be when cash is received, unconditional promises are made, or ownership of other assets is transferred to the Organization. The Organization reports gifts of property and equipment as unrestricted support unless explicit donor stipulations specify how the donated assets must be used. Absent explicit donor stipulations about how long those long-lived assets must be maintained, the Organization reports expirations of donor restrictions when the donated or acquired long-lived assets are placed in service. Training material sales, clinics and seminar registration fees, and other income are recorded as revenue when earned. Registration fees received in advance, but not earned, are reported as a prepaid registration fees liability. Expenses are recorded when incurred in accordance with the accrual basis of accounting. The costs of providing the various program services and supporting activities are summarized on a functional basis in the statements of activities. Accordingly, certain costs have been allocated among the program services and supporting activities benefited. UNCERTAIN TAX POSITIONS The financial statement effects of a tax position taken or expected to be taken are recognized in the financial statements when it is more likely than not, based on the technical merits, that the position will be sustained upon examination. Interest and penalties, if any, are included in expenses in the statements of activities. As of, EE had no uncertain tax positions that qualified for recognition or disclosure in the financial statements. -8-

11 Notes to Financial Statements 3. INVESTMENTS: Investments at fair value consist of: -9- June 30, Money market funds $ 309,901 $ 294,003 Investment income consists of: Year Ended June 30, Net realized and unrealized gains $ 743 $ 2,561 Interest and dividends 21,701 8, PROPERTY AND EQUIPMENT NET: Property and equipment consist of: $ 22,444 $ 10,564 June 30, Land North Carolina warehouse $ 70,000 $ 70,000 Building North Carolina 672, ,437 Land Missouri 766, ,000 Buildings Missouri 712, ,000 Building improvements Washington, DC 247, ,319 Property and equipment 148, ,286 Software 35,652 35,652 Website development 116,826 61,826 International Headquarters - building 1,192,153 - International Headquarters - land 420,000 - International Headquarters - conference room furnishings 20,957-4,402,306 2,701,520 Less accumulated depreciation (476,720) (387,579) Net book value of property and equipment 3,925,586 2,313,941 Less related indebtedness (2,213,380) (592,812) Equity in property and equipment $ 1,712,206 $ 1,721,129

12 Notes to Financial Statements 4. PROPERTY AND EQUIPMENT NET, continued: Depreciation in the amounts of $106,635 and $147,356 has been allocated to program services and supporting activities in the statements of activities for the years ended, respectively. 5. NOTES PAYABLE: Notes payable consist of: June 30, A bank term loan with a fixed interest rate of 5.95%. Principal and interest is due on demand, or if no demand is made, in monthly installments of $3,350 for 60 months. In March 2010, it converted to an adjustable rate plus prime. The note payable is collateralized by a deed of trust on real estate, an insurance policy, and the remaining EE assets. The loan has a maturity date of March 1, A bank term loan with a fixed interest rate of 5.75%. Principal and interest is due on demand, or if no demand is made, in monthly installments of $1,931 for 59 months followed by a balloon payment in the final month. The note payable is collateralized by an assignment of rents and a deed of trust on the Brook property in Missouri. The loan has a maturity date of June 28, A bank term loan with fixed interest rate of 3.75%. Interest only is due during the first 12 months. During the following years, principal and interest is due on demand, if no demand is made, in monthly installments of $4,167 for 48 months followed by a balloon payment in the final month. The note payable is collateralized by an assignment of rents and a deed of trust on the real estate. The loan has a maturity date of June 1, A corporate term loan with a fixed interest rate of 2.75%. Interest only is due quarterly for the term of the loan with the principal balance due on the maturity date. The loan is not collateralized. The loan has a maturity date of December 30, $ 303,928 $ 325, , , ,000-1,500,000-2,213, ,812 Current portion of notes payable 2,063, ,812 Notes payable net of current portion $ 150,000 $

13 Notes to Financial Statements 5. NOTES PAYABLE, continued: Three of the notes are subject to provisions that principal and interest are due on demand, or in monthly installments if no demand is made. Accordingly, those notes are classified as current on the statements of financial position. The debt is expected to mature as follows: Years ending June 30, $ $ 50,000 50,000 50, , ALLOCATION OF JOINT COSTS: For the years ended, EE conducted activities that included requests for contributions, as well as program, and general and administrative components. Those activities included informational materials and special mailings of EE publications and staff prayer letters, as well as invitations to special events, such as dinner meetings and prayer breakfasts. The costs of conducting those activities were allocated as follows: Year Ended June 30, Worldwide ministries $ 63,976 $ 45,732 General and administrative 37,319 26,677 Fund-raising 165, ,141 $ 266,565 $ 190,

14 Notes to Financial Statements 7. COMMITMENTS AND CONTINGENCIES: EE entered into an operating lease for a photocopier in December The lease is a non-cancelable lease for 60 months at a fixed monthly amount. EE entered into a lease for office space in Arden, North Carolina, in June The lease is a non-cancelable lease for 12 months at a fixed monthly amount, with option to renew for five additional years ending on May 31, EE entered into a second lease for additional office space under the same terms, ending on December 31, EE entered into an operating lease for a building to be used for the D. James Kennedy Center for Christian Statesmanship in Washington, D.C. in January The lease is a non-cancelable lease for 60 months at a fixed monthly amount. EE entered into an elevator maintenance agreement in May 2014 with a term of five years, renewable annually thereafter. Monthly payments are $145. Rent expenses for the years ended, were $127,082 and $75,671, respectively. Future minimum rental payments required under operating leases that have an initial or remaining non-cancelable lease term in excess of one year are as follows: Years Ending June 30, Amounts 2014 $ 129, , , , Thereafter 50,755 - $ 496,

15 Notes to Financial Statements 8. NET ASSETS: Net assets consist of: Unrestricted: June 30, Undesignated $ 459,982 $ (64,931) Board designated 51,323 51,323 Board designated - CCS/DJK Library renovation (158,907) - 352,398 (13,608) Equity in property and equipment 1,712,206 1,721,129 $ 2,064,604 $ 1,707,521 Temporarily Restricted: June 30, Missionary support $ 736,674 $ 823,286 Project funds 3,447,097 2,993,902 $ 4,183,771 $ 3,817, EMPLOYEE BENEFIT PLANS: EE provides employee benefit programs for all full-time employees, including major medical, dental, and life insurance. For the year ended June 30, 2014, the contributions to these plans were $288,282 for major medical and dental and $8,084 for life insurance. For the year ended June 30, 2013, the contributions to these plans were $293,233 for major medical and dental and $11,705 for life insurance. EE has a tax-sheltered annuity plan whereby employees may elect to make contributions pursuant to a salary reduction agreement. EE made contributions to the plan in the amounts of $24,519 and $4,004, for the years ended, respectively. -13-

16 Notes to Financial Statements 10. FAIR VALUE MEASUREMENTS: The Fair Value Measurements and Disclosure topic of the FASB Accounting Standards Codification establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. This hierarchy consists of three broad levels: Level 1 inputs consist of unadjusted quoted prices in active markets for identical assets and have the highest priority, Level 2 inputs consist of observable inputs other than quoted prices for identical assets, and Level 3 inputs have the lowest priority. EE uses appropriate valuation techniques based on the available inputs to measure the fair value of its investments. When available, EE measures fair value using Level 1 inputs because they generally provide the most reliable evidence of fair value. Level 3 inputs are only used when Level 1 or Level 2 inputs are not available. The following table presents the fair value measurements of assets and liabilities recognized in the accompanying statements of financial position measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall at : Fair Value Measurements at June 30, 2014 Total Level 1 Level 2 Level 3 Assets: Investments: Money market funds $ 309,901 $ 309,901 $ - $ - $ 309,901 $ 309,901 $ - $ - Fair Value Measurements at June 30, 2013 Total Level 1 Level 2 Level 3 Assets: Investments: Money market funds $ 294,003 $ 294,003 $ - $ - $ 294,003 $ 294,003 $ - $ - Methods and assumptions used by the Organization in estimating fair values are as follows: Money Market funds The fair value of cash and cash equivalents approximate the carrying value due to their short-term nature. Bonds The fair value of the financial instruments is based on yields currently available on comparable securities with similar credit ratings. Changes in methods and assumptions None. -14-

17 Notes to Financial Statements 11. RELATED PARTY TRANSACTIONS: EE paid $96,000 and $48,000 to a foundation for which a board member is trustee to lease office space for the years ended, respectively. In addition, EE has borrowed $1.5 million from a foundation for which a board member is trustee. EE paid $10,313 in interest on the loan during the year ended June 30, EE has an investment account with a company that is owned by an EE board member. This board member also serves as an investment advisor for EE. 12. SUBSEQUENT EVENTS: Subsequent events have been evaluated through the report date, which represents the date the financial statements were available to be issued. Subsequent events after that date have not been evaluated. -15-

18 SUPPLEMENTARY DATA

19 INDEPENDENT AUDITORS REPORT ON SUPPLEMENTARY DATA Board of Directors Evangelism Explosion III International, Inc. Arden, North Carolina We have audited the financial statements of Evangelism Explosion III International, Inc. as of and for the years ended, and our report thereon dated October 16, 2014, which expresses an unmodified opinion on those financial statements, appears on page 1. Our audits were conducted for the purpose of forming an opinion on the financial statements as a whole. The schedules of functional expenses are presented for purposes of additional analysis and are not a required part of the financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audits of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the financial statements as a whole. Atlanta, Georgia October 16, 2014

20 Schedule of Functional Expenses Year Ended June 30, 2014 Program Services Supporting Activities Worldwide Training Clinics and General and Total Ministries Materials Seminars Total Administrative Fund-raising Total Expenses Cost of goods sold $ - $ 202,083 $ 42,950 $ 245,033 $ - $ - $ - $ 245,033 Salary and benefits 2,315, , ,478 3,128, , ,126 1,004,911 4,133,364 Travel and entertainment 1,252,142 35,042 12,317 1,299, , , ,448 1,518,949 Vehicle expense 52,729 12, ,264 4,561 4,579 9,140 74,404 Depreciation expense 11,672 79,519-91,191 11,333 4,111 15, ,635 Bank charges 24,059 22,168-46,227 4,581-4,581 50,808 Licenses and permits ,485-5,485 5,485 Memberships 4, ,544 13,562 26,526 40,088 44,632 Insurance 306 1, ,374 15, ,935 17,309 Miscellaneous and other 89,327 11, ,877 5,922 1,234 7, ,033 Postage and delivery 11,861 6,139 6,813 24,813 1,427 14,351 15,778 40,591 Training - 14,662-14, ,662 Photocopying 23,960 6,364 17,212 47,536 1,986 4,138 6,124 53,660 Consultant expense Board of directors Rent 63,278 27,275 12, ,400 14,596 9,086 23, ,082 Building maintenance 956 2,818 1,328 5,102 1, ,447 7,549 Equipment repairs 55, ,739 6,096-6,096 61,835 Telephone 40,351 22,700 6,167 69,218 5,106 11,022 16,128 85,346 Utilities 16,066 11,923 5,616 33,605 6,380 3,973 10,353 43,958 Professional fees 92, ,075 51,792-51, ,867 Office supplies 54,203 17,141 6,888 78,232 3,186 23,981 27, ,399 Office equipment 55,192 19,749 6,665 81,606 7,592 9,137 16,729 98,335 Materials development 190,103 13,058 6, ,182 1,297 1,932 3, ,411 Clinics 287,511 1, , , ,952 Field representatives Other ministry expense 117, ,626-44,611 44, ,237 Conferences 49, , ,658 Grants to others 1,122, ,122, ,122,456 Direct mail/fund-raising , , ,778 Interest expense 22,476 3,512 2,458 28,446 2,810 3,863 6,673 35,119 $ 5,953,029 $ 978,518 $ 619,456 $ 7,551,003 $ 770,397 $ 946,069 $ 1,716,466 $ 9,267,469 64% 11% 7% 81% 8% 10% 18% 99% -17-

21 Schedule of Functional Expenses Year Ended June 30, 2013 Program Services Supporting Activities Worldwide Training Clinics and General and Total Ministries Materials Seminars Total Administrative Fund-raising Total Expenses Cost of goods sold $ - $ 233,128 $ 49,549 $ 282,677 $ - $ - $ - $ 282,677 Salary and benefits 2,288, , ,503 3,092, , , ,345 4,085,795 Travel and entertainment 1,128,106 31,571 11,097 1,170,774 95, , ,709 1,368,483 Vehicle expense 41,556 9, ,436 3,594 3,609 7,203 58,639 Depreciation expense 16, , ,015 15,661 5,680 21, ,356 Bank charges 20,443 18,837-39,280 3,892-3,892 43,172 Licenses and permits ,130-3,130 3,130 Memberships 3, ,543 10,576 20,685 31,261 34,804 Insurance 319 1, ,432 16, ,624 18,056 Miscellaneous and other 85,532 11, ,548 5,670 1,182 6, ,400 Postage and delivery 18,232 9,437 10,473 38,142 2,194 22,056 24,250 62,392 Training - 254, , ,710 Photocopying 18,183 4,830 13,062 36,075 1,507 3,140 4,647 40,722 Consultant expense 16, ,033-48,097 48,097 64,130 Board of directors ,617-4,617 4,617 Rent 37,679 16,241 7,650 61,570 8,691 5,410 14,101 75,671 Building maintenance Equipment repairs ,858 54,858 54,858 Telephone 39,149 22,023 5,983 67,155 4,954 10,694 15,648 82,803 Utilities 12,222 9,071 4,273 25,566 4,854 3,021 7,875 33,441 Professional fees ,426-70,426 70,426 Office supplies 63,638 20,125 8,087 91,850 3,741 28,155 31, ,746 Office equipment 45,510 16,284 5,496 67,290 6,260 7,535 13,795 81,085 Materials development 298,238 20,486 9, ,169 2,035 3,031 5, ,235 Clinics 436,785 2, , , ,258 Field representatives Other ministry expense 175, ,466-66,927 66, ,393 Conferences 93, , ,213 Grants to others 1,303, ,303, ,303,490 Direct mail/fund-raising , , ,838 Interest expense 17,707 2,767 1,937 22,411 2,213 3,043 5,256 27,667 $ 6,159,890 $ 1,256,046 $ 690,617 $ 8,106,553 $ 759,585 $ 1,048,069 $ 1,807,654 $ 9,914,207 62% 13% 7% 82% 8% 10% 18% 100% -18-