YOUNG MEN'S CHRISTIAN ASSOCIATION OF GREATER LOUISVILLE, INC. AND AFFILIATE CONSOLIDATED FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION

Transcription

1 YOUNG MEN'S CHRISTIAN ASSOCIATION OF GREATER LOUISVILLE, INC. AND AFFILIATE CONSOLIDATED FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION Yers Ended Decemr 31, 214 nd 213

2 Tble of Contents Pge Independent Auditors' Report 1 nd 2 Finncil Sttements Consolidted sttements of fmncil position Consolidted sttements of ctivities Consolidted sttements of functionl expenses Consolidted sttements of csh flows Notes to consolidted fmncil sttements ru Supplementry Informtion Consolidting sttements of finncil position Consolidting sttements of ctivities Consolidting sttements of functionl expenses Schedules of Expenditures of Federl Awrds Independent Auditors' Report on Internl Control Over Finncil Reporting nd on Complince nd Other Mtters Bsed on n Audit of Finncil Sttements Performed in Accordnce with Government Auditing Stndrds Independent Auditors' Report on Complince for Ech Mjor Progrm nd on Internl Control Over Complince Required by MB Circulr A nd nd nd nd nd Schedule of Findings nd Questioned Costs 43 nd 44

3 DM1 i) iin G jl'\lon L]J3j\ ' R O i.)ff Independent Auditors' Report To the Bord of Directors Young Men's Christin Assocition of Greter Louisville, Inc. nd Affilite Louisville, Kentucky Report on the Finncil Sttements We hve udited the ccompnying consolidted fmncil sttements of Young Men's Christin Assocition of Greter Louisville, Inc. (YMCA) nd Ntionl Sfe Plce, Inc. (Affilite) (not-for-profit orgniztions), which comprise the consolidted sttements of fmncil position s of Decemr 31, 214 nd 213, nd the relted consolidted sttements of ctivities, functionl expenses nd csh flows for the yers then ended, nd the relted notes to the consolidted fmncil sttements. Mngement's Responsibility for the Consolidted Finncil Sttements Mngement is responsible for the preprtion nd fir presenttion of these consolidted fmncil sttements in ccordnce with ccounting principles generlly ccepted in the United Sttes of Americ; this includes the design, implementtion, nd mintennce of internl control relevnt to the preprtion nd fir presenttion of the consolidted fmncil sttements tht re free from mteril missttement, whether due to frud or error. Auditors' Responsibility Our responsibility is to express n opinion on these consolidted fmncil sttements bsed on our udits. We conducted our udits in ccordnce with uditing stndrds generlly ccepted in the United Sttes of Americ nd the stndrds pplicble to fmncil udits contined in Government Auditing Stndrds, issued by the Comptroller Generl of the United Sttes. Those stndrds require tht we pln nd perform the udits to obtin resonble ssurnce bout whether the consolidted fmncil sttements re free of mteril missttement. An udit involves performing procedures to obtin udit evidence bout the mounts nd disclosures in the consolidted fmncil sttements. The procedures selected depend on the uditors' judgment, including the ssessment of the risks of mteril missttement of the consolidted fmncil sttements, whether due to frud or error. In mking those risk ssessments, the uditor considers internl control relevnt to the Orgniztions' preprtion nd fir presenttion of the consolidted fmncil sttements in order to design udit procedures tht re pproprite in the circumstnces, but not for the purpose of expressing n opinion on the effectiveness of the Orgniztions' internl control. Accordingly, we express no such opinion. An udit lso includes evluting the ppropriteness of ccounting policies used nd the resonbleness of significnt ccounting estimtes mde by mngement, s well s evluting the overll presenttion of the consolidted fmncil sttements. We lieve tht the udit evidence we hve obtined is sufficient nd pproprite to provide bsis for our udit opinion. 93 Shelbyville Rod Suite 11 Louisville, Kentucky 4222 Telephone Fx

4 Opinion In our opinion, the consolidted fmncil sttements referred to bove present firly, in ll mteril respects, the consolidted fmncil position of the YMCA nd Affilite s of Decemr 31, 214 nd 213, nd the consolidted chnges in net ssets nd csh flows for the yers then ended in conformity with ccounting principles generlly ccepted in the United Sttes of Americ. Other Mtters Other Informtion Our udits were conducted for the purpose of forming n opinion on the consolidted fmncil sttements s whole. The consolidting sttements of fmncil position, consolidting sttements of ctivities, nd consolidting sttements of functionl expenses on pges 3-35 re presented for purposes of dditionl nlysis nd re not required prt of the consolidted fmncil sttements. The ccompnying schedules of expenditures of federl wrds on pges 36 nd 37, s required by U.S. Office of Mngement nd Budget Circulr A-i 33, Audits of Sttes, Locl Governments nd Non-P rofit Orgniztions, is presented for purposes of dditionl nlysis nd is not required prt of the consolidted fmncil sttements. Such informtion is the responsibility of mngement nd ws derived from nd reltes directly to the underlying ccounting nd other records used to prepre the consolidted fmncil sttements. The informtion hs en subjected to the uditing procedures pplied in the udit of the consolidted fmncil sttements nd certin dditionl procedures, including compring nd reconciling such informtion directly to the underlying ccounting nd other records used to prepre the consolidted fmncil sttements themselves, nd other dditionl procedures in ccordnce with uditing stndrds generlly ccepted in the United Sttes of Americ. In our opinion, the informtion is firly stted in ll mteril respects in reltion the consolidted fmncil sttements s whole. Other Reporting Required by Government Auditing Stndrds In ccordnce with Government Auditing Stndrds, we hve lso issued our report dted My 13, 215 on our considertion of the YMCA nd Affilite internl control over fmncil reporting nd on our tests of its complince with certin provisions of lws, regultions, contrcts, grnt greements, nd other mtters. The purpose of tht report is to descri the scope of our testing of internl control over fmncil reporting nd complince nd the results of tht testing nd not to provide n opinion on the internl control over fmncil reporting or on complince. Tht report is n integrl prt of n udit performed in ccordnce with Government Auditing Stndrds in considering YMCA nd Affilite's internl control over fmncil reporting nd complince. Louisville, Kentucky My 13, 214 2

5 YOUNG MEN'S CHRISTIAN ASSOCIATION OF GREATER LOUISVILLE, INC. AND AFFILIATE CONSOLIDATED STATEMENTS OF FINANCIAL POSITION Decemr 31, 214 nd 213 Assets Csh nd csh equivlents Grnts nd ccounts receivble Pledges receivble Prepid expenses nd inventories Certifictes of deposit Investments Property nd equipment, net Rel estte held for others AIiI $ 17,349,463 1,171,55 1,396, ,434 1,56,151 4,237,868 46,553,523 3,261, $ 16,951,58 1,178,625 1,93, ,953 1,53,579 4,115,299 44,63,884 3,261,554 Totl ssets $ 75,479,285 $ 72,736,347 Libilities nd Net Assets Accounts pyble nd ccrued expenses Custodil libilities Debt Cpitl lese obligtions Rel estte held for others Derivtive finncil instruments $ 2,198,747 88,25 19,422, ,631 3,261,554 87,264 $ 2,218,796 7,71 2,166, ,52 3,261,554 1,97,785 Totl libilities 26,462,943 27,231,12 Net Assets Unrestricted: Bord designted reserves Bord designted endowment Undesignted Temporrily restricted Permnently restricted 15,949,42 3,134,261 24,998,616 44,82,279 3,589,78 1,344,283 15,642,646 3,11,691 22,27,984 4,925,321 3,242,791 1,337,133 Totl net ssets Totl libilities nd net ssets 49,16,342 45,55,245 $ 75,479,285 $ 72,736,347 See Notes to Consolidted Finncil Sttements. 3

6 YOUNG MEN'S CHRISTIAN ASSOCIATION OF GREATER LOUISVILLE, INC. AND AFFILIATE CONSOLIDATED STATEMENTS OF ACTIVITIES Yers Ended Decemr 31, 214 nd Temporrily Permnently Unrestricted Restricted Restricted Totl Public Support, Revenues nd Gins Public support: Contributions Specil events (net of cost of direct nefits to donors of $88,666 nd $7,376) Government grnts [n-kind dontions Metro United Wy grnt Other grnts Totl public support Revenues nd gins: Memrship dues Progrms Sles of merchndise Investment income Net relized nd unrelized gin on investments Chnge in fir vlue of derivtive finncil instrument Grge nd rentl income Loss on inipinnent of building Gin on sle of property nd equipment Miscellneous Totl revenues nd gins Net ssets relesed from restriction Totl public support, revenues, nd gins Expenses Progrm services Mngement nd generl Fund-rising Totl expenses $ 965,3 $ 1,146,98 $ 7,15 $ 2,118,251 34,669 34,669 4,513,436 4,513, ,74 8,55 337, , ,33 757,252 31,514 31,514 6,294,645 1,769,951 7,15 8,71,746 18,8,126 18,8,126 16,658,124 16,658,124 96,669 96, , , , , , ,521 23,531 23,531 69,464 69,464 16,294 16,294 36,427,94 36,427,94 1,422,962 (1,422,962) 44,144,71 346,989 7,15 44,498,84 35,521,94 35,521,94 5,7,844 5,7, , ,995 4,987,743 4,987,743 Chnges in net ssets fore chnges relted to cquistion of Youth nd Fmily Services Network, Inc. 3,156, ,989 7,15 3,511,97 Excess of ssets cquired over libilites ssumed in the cquisition of Youth nd Fmily Services Network, Inc. Increse (decrese) in totl net ssets Net ssets t ginning of yer 3,156, ,989 7,15 3,511,97 4,925,321 3,242,791 1,337,133 45,55,245 Net ssets t end of yer $ 44,82,279 $ 3,589,78 $ 1,344,283 $ 49,16,342 See Notes to Consolidted Finncil Sttements. 4

7 213 Temporrily Permnently Unrestricted Restricted Restricted Totl S 691,496 $ 2,536,156 $ 43 $ 3,228,55 4,462 4,462 4,574,639 4,574, ,82 25, ,183 95, ,31 688, , ,927 5,917,278 3,153,847 9,71,528 17,881,24 17,881,24 15,936,173 15,936, ,49 114,49 134, , , , , , , ,548 (12,) (12,) 19,393 19,393 35,513,517 35,513,517 4,253,969 (4,253,969) 45,684,764 (1,1,122) 44,585,45 34,996,231 34,996,231 4,429,713 4,429, , ,286 39,855,23 39,855,23 5,829,534 (1,1,122) 43 4,729,815 81,857 81,857 5,911,391 (1,1,122) 43 4,811,672 35,13,93 4,342,913 1,336,73 4,693,573 $ 4,925,321 $ 3,242,791 $1,337,133 $ 45,55,245

8 rfl N N N Q N CC CC O CO - CO N CO r' N N O N '- j - C CC N c N CO CC Q\ CO CC N r CO 1 - CC N N r CC CC c N N C r CC tr 'j - - N V CC r N CO N V) N N N N C Lr ' - N CO t( C - S NN-r CO CC CC N N * cfl * N CC CC z C N CO N CO - CO C\ V 1C C C CO CC C N N CO N CO N C CC j.e Nr N C) N t N C N O\ - C) Co N ' N - N CC C n N CO V CC N C N rn C) CO ' rn CO N CO c C CO C C ' CO C E V'zrCO N C) C N N N t t CC N N t C 't CC O CC r b CC 4 N Lf) CO r (t L1) * <'- O CC - CC CC N C) N CC CC N - CC CC N CC ' CC C CO CC N N CC CC CO CC V N Q Co N C CC CC CC CC C N r CC O CO N CC CC E C r QCCNNONN N t - N CO - '1 - o - c Q O 'r N CC CC CC O CO CC CO CC 1 CC C) CC CO j CC N V N o L C CO N N N C CO CO 'r N Ir CO r N N CC CC CC ' CC * CO N C CO CO C CC t - C C C CC N CC CC CC - i CC N CC C N C CC CC CC CO N CC N C C N CO N N CC C 'I C CC CO N CC II N ' C CC C N CC L() * CC CC. L* CC CO N CC N N CO O\ CC CO NCCN CCNC-CCCO CC N N N n N C CC N C '/ N N CO N CO N N C C 'l Ci t CO CO N CC CC CC CC N N C O\ C).E NN C) CC C C CC N ct CO - N C) CO CC 1 - N C CO CC CC C N C CC C N CC C CO N C C) N N C C '1 CO CC Lf N J N CO O N 1 E NNCNN CC C) V ' N ' N CC CC C) CC '1 - N - CO CC CO N CC b C N CC V N r N CO CO N CC N r CO CC N C C) '-V' CO V - N N C I CC CC N O\ N CC CO N ' N C CC N - CO CC CC C C N N CO CC C CC L( N CC C E CCCCCNN'1CC NV CC *CCNCCCCr o o N N C N o N CC CO N CO O C v - CC - CC N V CO C L$ N C O N CC O CC N CO N CO Li - - CC i - N CC CC C) C) C) o 2 'd 2,) C) C) C) - ci 2 C) C) C) 2 C) ci C) c C) C). C) C) QD rj C) C) C) Ct, do C) --o C) ca' I) C) C) C) C) C) C) C) C) C) C) - 2 ( ft 4 C) C) 2 2 C) o r Ct P C/D H HOU.2

9 YOUNG MEN'S CHRISTIAN ASSOCIATION OF GREATER LOUISVILLE, INC. AND AFFILIATE CONSOLIDATED STATEMENTS OF CASH FLOWS Yers Ended Decemr 31, 214 nd 213 Csh Flows from Operting Activities Csh received from contributions nd grnts Csh received from services Csh pid to suppliers nd employees Interest pid Interest received $ 7,238,346 35,81,798 (37,318,551) (648,981) 197,688 $ 6,798,683 34,179,4 (35,886,966) (672,651) 144,8 Net csh provided by operting ctivities 5,279,3 4,562,114 Csh Flows from Investing Activities Purchse of property nd equipment Proceeds from sle of property nd equipment Increse in custodil ccounts Proceeds from sle of investments Purchse of investments Reinvested ernings from certifictes of deposit Csh received through cquisition of Youth nd Fmily Services Network, Inc. (4,17,62) 82,344 17,954 99,54 (983,916) (2,572) (3,16,61) 8,15 3,334,944 (3,281,616) 81,857 Net csh used in investing ctivities (4,3,27) (2,872,771) Csh Flows from Finncing Activities Proceeds from debt Contributions for long-term purposes Pyments on debt Pyments on cpitl leses Net csh (used in) provided by finncing ctivities Net increse in csh nd csh equivlents Csh nd csh equivlents t ginning of yer 3,861,227 7,15 2,2,83 (743,654) (41,93) (141,121) (138,171) (877,625) 5,323, ,45 7,13,272 16,951,58 9,937,786 Csh nd csh equivlents t end of yer $ 17,349,463 $ 16,951,58 See Notes to Consolidted Finncil Sttements.

10 Reconcilition of Increse in Totl Net Assets to Net Csh Provided by Operting Activities Increse in totl net ssets Adjustments to reconcile increse in totl net ssets to net csh provided by operting ctivities: Deprecition Confributions for long term purposes Gin on disposl of property nd equipment Loss on impirment of building Net relized nd unrelized gin on investments Chnge in fir vlue of derivtive finncil instrument Provision for doubtful ccounts nd discounts In-kind dontions for use of fcilities Csh received through cquisiton of Youth nd Fmily Services Network, Inc. Chnges in ssets nd libilities: (Increse) decrese in: Grnts nd ccounts receivble Accrued interest Pledges receivble Prepid expenses nd inventories Increse (decrese) in: Accounts pyble nd ccrued expenses Totl djustments Net csh provided by operting ctivities $ 3,511,97 $ 4,811,672 2,899,78 (7,15) (69,464) (129,193) (227,521) 2, ,449 2,817,891 (2,2,83) 12, (599,393) (653,143) 6, ,62 (81,857) 9,54 (5,837) (1,484) 9,871 (579,83) (135,571) 25,519 (37,438) (428,496) 99,766 1,768,23 (249,558) $ 5,279,3 $ 4,562,114 Supplementl Schedule of Non-Csh Investing nd Finncing Activities Bond obligtion for fcility construction Cpitl lese obligtion for fitness equipment Purchses of property nd equipment in ccounts pyble $ $ 668,339 $ 346,232 $ 33,178 $ 649,652 $ 241,25

11 YOUNG MEN'S CHRISTIAN ASSOCIATION OF GREATER LOUISVILLE, INC. AND AFFILIATE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Note 1. Nture of Opertions nd Summry of Significnt Accounting Poliéies Nture of opertions: Young Men's Christin Assocition of Greter Louisville, Inc. (YMCA) is not-forprofit, chritble orgniztion dedicted to providing services tht re bsed on Judeo-Christin principles nd tht enble ll persons, regrdless of rce, religion, income, gender, or physicl bility, to chieve their full potentil in spirit, mind nd body. Within vilble resources, the YMCA provides services for ny youth or dult who desires to prticipte, regrdless of their bility to py the estblished memrship, clss or progrm fees. The YMCA opertes thirteen brnches throughout Jefferson, Bullitt, Mede, nd Oldhm counties in Kentucky. Ntionl Sfe Plce, Inc. is not-for-profit, chritble orgniztion tht is controlled ffilite of the YMCA. Ntionl Sfe Plce, Inc. services teens in crisis nd shelters ntionlly for runwy teens through the implementtion of the Sfe Plce Progrm. Their primry ctivities include promotionl efforts to help shelters seek locl businesses to serve s Sfe Plce loction nd s sponsors of the progrm, trining of those business employees s volunteers in the Sfe Plce progrm, trining shelter stff in understnding st prctices in communicting the vilbility of the concept to teens both in nd out of school systems, providing support services to shelters in expnding the locl knowledge of the shelter services provided nd helping secure ccessibility to shelters by teens in crisis. Ntionl Sfe Plce hs lso undertken the ctivity of providing trining nd technicl ssistnce, through funding from federl grnt, to ll federlly funded runwy nd homeless youth service progrms cross the United Sttes nd its territories. This trining is in the form of ntionl grntee meetings, technicl ssistnce clinics, one dy trinings, web bsed trining nd on-site trining visits. Summry of significnt ccounting policies: This summry of significnt ccounting policies of YMCA nd Ntionl Sfe Plce, Inc. is presented to ssist in understnding the Orgniztions' consolidted finncil sttements. The consolidted finncil sttements nd notes re representtions of the Orgniztions' mngement who is responsible for the integrity nd objectivity of the consolidted finncil sttements. These ccounting policies conform to ccounting principles generlly ccepted in the United Sttes of Americ nd hve en consistently pplied in the preprtion of the consolidted finncil sttements. 7

12 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Principles of consolidtion: The ccompnying consolidted finncil sttements, s of nd for the yers ended Decemr 31, 214 nd 213, include the ccounts of the YMCA nd Ntionl Sfe Plce, Inc. Consolidtion is required bsed on the YMCA's mjority voting interest in Ntionl Sfe Plce, Inc. All inter-compnyblnces nd trnsctions hve en eliminted in the consolidtion. Use of estimtes: The preprtion of consolidted finncil sttements in confonnity with ccounting principles generlly ccepted in the United Sttes of Americ requires mngement to mke estimtes nd ssumptions tht ffect the reported mounts of ssets nd libilities nd disclosure of contingent ssets nd libilities t the dte of the consolidted finncil sttements nd the reported mounts of revenues nd expenses during the reporting period. Actul results could differ from those estimtes. Csh nd csh equivlents: For purposes of the sttement of csh flows, the YMCA nd Ntionl Sfe Plce, Inc. considers undesignted csh nd investments with originl mturities of three months or less, to csh nd csh equivlents excluding those mounts held s prt of the investment portfolio. Inventories: Inventories of merchndise re stted t the lower of cost or mrket. Cost is determined by the first-in, first-out (FIFO) method. Investments nd credit risk: Investments re stted t fir mrket vlue s of the dte of the consolidted sttements of finncil position, which is determined bsed upon the most recent quoted price of the security.

13 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS The YMCA hs significnt investments in equity securities held by n investment mnger nd is, therefore, subject to concentrtions of credit risk. Due to the level of risk ssocited with certin investment securities, it is resonbly possible tht chnges in the vlue of investments will occur in the ner term nd tht such chnges could mterilly ffect the finncil condition of the Orgniztions. Investments re mde by the investment mnger nd the investments re monitored by the Bord of Directors. Though the mrket vlue of investments is subject to fluctutions on yer-to-yer bsis, mngement lieves the investment policy is prudent for the long-term welfre of the Orgniztion. Property nd equipment: Property nd equipment re stted t cost if purchsed, or in the cse of donted property nd equipment, t fir vlue t the dte of dontion. The YMCA's policy is to cpitlize expenditures greter thn $5, with n estimted life greter thn one yer. Deprecition is recorded on stright-line method over the following estimted useful lives: Yers Buildings 1-4 Furniture nd equipment 5-1 Vehicles 3-6 Lesehold improvements 3 Sofiwre 3 Designtion of unrestricted net ssets: It is the policy of the Bord of Directors of the Orgniztion to designte pproprite sums of unrestricted net ssets for future mintennce nd opertions. Advertising nd promotion: Advertising nd promotion costs re expensed s incurred. Advertising nd promotion costs for 214 nd 213 were pproximtely $966, nd $1,222,, respectively. 9

14 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Temporrily nd permnently restricted net ssets: Temporrily restricted net ssets re those whose uses by the YMCA nd Ntionl Sfe Plce, Inc. hve en limited by donors to specific time period or purpose. When the donor restriction expires, or purpose restriction is ccomplished, temporrily restricted net ssets re reclssified to unrestricted net ssets nd reported in the consolidted sttement of ctivities s net ssets relesed from restriction. A donor restricted contribution is reported s n increse in unrestricted net ssets if the restriction expires in the fiscl yer in which the entire contribution is received. Permnently restricted net ssets hve en restricted by donors to mintined by the YMCA in perpetuity. Dontions other thn csh: Dontions other thn csh re recorded t their fir mrket vlue s of the dte of dontion. Donted services must meet the specific expertise requirements nd would normlly hve en purchsed fore they re recorded. Dontions of long-lived ssets with explicit restrictions tht specifi how the ssets re to used nd dontions of csh or other ssets tht must used to cquire long-lived ssets re reported s temporrily restricted support, Absent explicit donor stipultions bout how long those long-lived ssets must mintined, the YMCA reports expirtions of donor restrictions when the donted or cquired long-lived ssets re plced in service. Donted services re mesured t their fir vlues s determined by mngement. During the yer ended Decemr 31, 214 nd 213, the vlue of contributed services meeting the requirements for recognition totled $297,252 nd $1 18,155, respectively nd were recorded s progrm expense, most of which consisted of mrketing nd consulting services. Derivtive finncil instruments: The YMCA mkes limited use of derivtive instruments for the purpose of mnging interest rte risks. Interest rte swp greements re used to convert the YMCA's floting rte long-term debt to fixed rte (see Note 8). The differentils pid or received on interest rte swp greements re ccrued nd recognized s djustments to interest expense; gins nd losses relized upon settlement of these greements re deferred until the underlying hedged instrument is settled. 1

15 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS At Decemr 31, 214 nd 213, the YMCA's derivtive finncil instruments consisted of three interest rte swp greements entered into with PNC Bnk for the purpose of hedging ginst the risk of interest rte increses on certin vrible rte bonds. These derivtive finncil instruments re recorded on the consolidted sttements of finncil position t their fir vlue. The fir vlue represented on the consolidted sttements of finncil position is the estimted mount the YMCA would hve to py to cncel the swp greements. The difference tween the floting rte nd the swp rte is recognized s component of interest expense on the consolidted sttements of ctivities. If these interest rte swp greements re held to mturity, s mngement intends to do, the cumultive effect of this recognized libility on the chnge in net ssets will zero. Compensted bsences: Compensted bsences for sick py nd vction time hve not en ccrued since they re not ccumulted pst their clendr yer end. The YMCA's policy is to recognize these costs when ctully pid. Income tx sttus: The YMCA nd Ntionl Sfe Plce, Inc. re exempt from federl, stte nd locl income txes s not-for-profit corportions s descrid under Internl Revenue Code Section 51(c)(3). The YMCA nd Ntionl Sfe Plce, Inc. file informtionl tx returns in the U.S. federl jurisdiction nd with the Kentucky Office of the Attorney Generl. However, income from certin ctivities not directly relted to the YMCA nd Ntionl Sfe Plce, Inc.'s tx-exempt purpose my subject to txtion s unrelted business income. As of Decemr 31, 214 nd 213, the YMCA nd Ntionl Sfe Plce, Inc. did not hve ny ccrued interest or penlties relted to income tx libilities, nd no interest or penlties hve en chrged to opertions for the yers then ended. Tx yers ending on or fter Decemr 31, 211, remin subject to IRS review nd chnge. Tx yers still open under stte sttute of limittions remin subject to review nd chnge. 11

16 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Impirment of property nd equipment: Mngement evlutes the recoverbility of property nd equipment on n ongoing bsis nd recognizes ny impirment in the yer of determintion. In the opinion of mngement, donted building received in 212 vlued t $12, ws determined to impired nd subsequently demolished. The impirment ws recorded on the consolidted sttements of ctivities for the yer ended Decemr 31, 213. Subsequent events: Subsequent events hve en evluted through My 13, 215 which is the dte the consolidted finncil sttements were vilble to issued. Note 2. Grnts nd Accounts Receivble Grnts nd ccounts receivble for the YMCA consist of the following: Metro United Wy Federl grnts Progrm services Other 214 $ 33,852 59,81 149,58 126,822 $1,171, $ 33,32 531, , ,224 Si, Note 3 Pledges Receivble The YMCA hd outstnding unconditionl pledges to give for opertions nd cpitl cmpign totling $1,282,94, net of llownce of $32,97, nd net of discount of $1 1,738 for 214. The YMCA hd outstnding unconditionl pledges to give for opertions nd cpitl cmpign totling $75,612, net of llownce of $29,677, nd net of discount of$12,493 for 213. The YMCA entered into two in-kind lese contrcts for future use of fcilities, s descrid in detil low. The YMCA hd outstnding pledge receivbles for the future use of the fcilities of$l 13,333, for 214 nd $387,783, net of discount of $8,55 for

17 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Pledge receivbles fter one yer from dte of pledge were discounted using interest rtes rnging from four to five percent. The pledges receivble relted to the cmpigns nd contrcts for future use of fcilities s of Decemr 31, 214 nd 213 were s follows: Due less thn one yer Due one to five yers Less discount to net present vlue Less llownce for doubtful ccounts Net unconditionl promises to give 214 $1,333,2 17,925 1,44,945 (32,97) (11,738) $1,396, $ 95,54 238,611 1,144,115 (21,43) (29,677) $ In Jnury 21, the YMCA committed to 5-yer lese with Simons Publishing Compny for lnd nd building locted t 49 Joe B. Hll Avenue, Shepherdsville, Kentucky 4165, which expired in Decemr 214. The lese ws renewed in Jnury 215 for n dditionl five yers with no chnge in the terms of the lese. The lese pyments re $1 per yer. The lese fir mrket vlue hs en determined to $735, nd will recorded in the 215 consolidted sttements of finncil position s pledge receivble nd discounted ccordingly over the term of the lese. The expected pledge receivble nd discount for 215 will s follows: Due less thn one yer $147, Due one to five yers 588, 735, Less discount to net present vlue (74,928) Net unconditionl promises to give 66,72 On Novemr 1, 21, the YMCA committed to 5-yer lese with Jefferson County Fiscl Court for lnd nd building locted in Berrytown Prk. The lese pyments re $1 per yer. The lese fir mrket vlue of $68, hs en recorded in the consolidted sttements of finncil position s pledge receivble nd discounted ccordingly over the term of the lese. 13

18 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Future in-kind lese expense relted to the pledges receivble included bove re s follows: Yer ending Decemr 31, $26, , 147, 147, 147, Note 4. Certifictes of Deposit Certifictes of deposit for the YMCA nd Ntionl Sfe Plce, Inc. re with finncil institutions locted in Kentucky, with originl mturities greter thn three months. The interest rtes on the certifictes of deposit rnge from of.5% to 1.39% nd mturity dtes vry from Februry 215 to April 216. Note 5. Investments nd Fir Vlue Mesurements The frmework for mesuring fir vlue provides fir vlue hierrchy tht prioritizes the inputs to vlution techniques used to mesure fir vlue. The hierrchy gives the highest priority to undjusted quoted prices in ctive mrkets for identicl ssets or libilities (level 1) nd the lowest priority to unobservble inputs (level 3). The three levels of the fir vlue hierrchy re descrid s follows: Level 1 - Inputs to the vlution methodology re undjusted quoted prices for identicl ssets or libilities in ctive mrkets tht the Orgniztion hs the bility to ccess. Level 2 - Inputs to the vlution methodology include: quoted prices for similr ssets or libilities in ctive or inctive mrkets; inputs other thn quoted prices tht re observble for the sset or libility; inputs tht re derived principlly from or corroborted by observble mrket dt by correltion or other mens. If the sset or libility hs specified (contrctul) term, the level 2 input must observble for substntilly the full term of the sset or libility. Level 3 - Inputs to the vlution methodology re unobservble nd significnt to the fir vlue mesurement. 14

19 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS The sset or libility's fir vlue mesurement level within the fir vlue hierrchy is bsed on the lowest level of n input tht is significnt to the fir vlue mesurement. Vlution techniques mximize the use of observble inputs nd minimize the use of unobservble inputs. All ssets hve en vlued using mrket pproch. Following is description of the vlution methodologies used for ssets mesured t fir vlue. There hve en no chnges in methodologies used t Decemr 31, 214 nd 213. Common stocks vlued t the closing price reported on the ctive mrket on which the individul securities re trded. Mutul funds - vlued t the closing price reported on the ctive mrket on which the individul securities re trded. Louisville Community Foundtion - vlued t net sset vlue per shre bsed on quoted prices for ssets held by the fund. In-kind ssets nd libilities - vlued bsed on independent pprisl reports or on similr like ssets. The preceding methods descrid my produce fir vlue clcultion tht my not indictive of net relizble vlue or reflective of future fir vlues. Furthermore, lthough the Orgniztions lieve their vlution methods re pproprite nd consistent with other mrket prticipnts, the use of different methodologies or ssumptions to determine the fir vlue of certin finncil instruments could result in different fir vlue mesurement t the reporting dte. 15

20 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS The following tble sets forth the level, within the fir vlue hierrch, the Orgniztions investments t fir vlue s of Decemr 31, 214 nd 213: Level 1 investments: Csh equivlents Common stocks Mutul funds: Fixed income funds Equity funds 214 Unrelized Fir Apprecition Cost Vlue (Deprecition) $ 32,18 4,6 999,861 2,573,971 $ 32, ,34 3,148,633 $ (4,2) (9,521) 574,662 Totl level 1 investments 3,61,612 4,171,553 56,941 Level 2 investments: Louisville Community Foundtion 64,888 66,315 h427 Totl investments $4237, Cost Fir Vlue Unrelized Apprecition (Deprecition) Level 1 investments: Csh equivlents Common stocks Mutul funds: Fixed income funds Equity funds $ 32,916 4,6 91,29 2,588,157 $ 32, ,72 3,118,375 $ (4,2) (11,57) 53,218 Totl level 1 investments 3,535,963 4,5, ,448 Level 2 investments: Louisville Community Foundtion 57,194 64,888 7,694 Totl investments 57 $4.1 15,299 S522, 142 The Louisville Community Foundtion ccount hs no unfunded commitment nd cn redeemed dily, with no redemption notice period, without specific terms or conditions t the underlying investments' net sset vlue NAV). The NAV is updted dily. 16

21 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Note 6. Endowment Funds The YMCA's endowment funds consist of investments nd csh nd csh equivlents held in vrious institutions investment ccounts (see Note 5). These investments consist of bord designted funds nd permnently restricted funds. The bord designted endowment funds re for funding the future opertions of the YMCA. As required by generlly ccepted ccounting principles, net ssets ssocited with endowment funds, including funds designted by the Bord of Directors to function s endowments, re clssified nd reported bsed on the existence or bsence of donor-imposed restrictions. The endowment net sset composition by type of fund nd chnges in endowment net ssets s of nd for the yers ended Decemr 31, 214 nd 213 re s follows: Endowment net ssets, ginning of yer Contributions Investment income Unrelized gin Relized gin Trnsfers to opertions Endowment net ssets, end of yer Unrestricted - Bord Designted Endowment $3,11, ,113 47,921 81,272 (185,736) $3, Donor Permnently Restricted $1,337,133 $4,348,824 7,15 7,15 179,113 47,921 81,272 (185,736) $1,344.2 Unrestricted - Bord Designted Endowment 213 Donor Permnently Restricted Totl Endowment net ssets, ginning of yer $2,463,517 $1,336,73 $3,8,247 Contributions 1, ,372 Investment income 118,45 118,45 Unrelized gin 138,42 138,42 Relized gin 46,967 46,967 Trnsfers to opertions (171,587) (171,587) Endowment net ssets, end of yer $3,11,691 $1,337,133 17

22 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Interprettion of relevnt lws: The Bord of Directors of the Orgniztion hs interpreted the Uniform Prudent Mngement of Institutionl Funds Act (UPMIFA) s requiring the preservtion of the fir vlue of the originl gift s of the gift dte of the donor restricted endowment funds bsent explicit donor stipultions to the contrry. As result of this interprettion, the YMCA clssifies s permnently restricted net ssets () the originl vlue of gifts donted to the permnent endowment, (b) the originl vlue of subsequent gifts to the permnent endowment, nd (c) ccumultions to the permnent endowment mde in ccordnce with the direction of the pplicble donor gift instrument t the time the ccumultion is dded to the fund. In ccordnce with UPMIFA, the YMCA considers the following fctors in mking determintion to pproprite or ccumulte donor restricted endowment funds: (1) The durtion nd preservtion of the fund (2) The purpose of the YMCA's nd the donor restricted endowment fund (3) Generl economic conditions (4) The possible effect of infltion nd defltion (5) The expected totl return from income nd the pprecition of investments (6) Other resources of the YMCA (7) The investment policies of the YMCA Return objectives nd risk prmeters: The YMCA hs dopted investment nd spending policies for endowment ssets tht ttempt to provide predictble strem of funding to progrms supported by its endowment while seeking to mintin the purchsing power of the endowment ssets. Endowment ssets include those ssets of donor restricted funds tht the YMCA must hold in perpetuity s well s bord designted funds. Under this policy, the endowment ssets re invested in mnner tht is intended to produce results tht re comprble to price nd yield totl return in excess of the Brclys Intermedite Government/Corporte Index nd S&P 5 Index. The YMCA expects its endowment funds, over time, to provide n verge rte of return of pproximtely seven percent nnully. Actul returns in ny given yer my vry from this mount. Strtegies employed for chieving objectives: To stisfy long-tenn rte-of-return objectives, the YMCA relies on totl return strtegy in which investment returns re chieved through both cpitl pprecition (relized nd unrelized) nd current yield (interest nd dividends). The YMCA trgets diversified sset lloction. 18

23 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Spending policy nd how investment objectives relte to spending policy: The YMCA hs policy of ppropriting for distribution n mount ech yer s deemed necessry to support their mission. In estblishing this policy, the YMCA hs considered the long term expected return on its Endowment. Accordingly over the long term, the YMCA expects the current spending policy to llow its Endowment to grow t rte to cover the nnully pproved spending policy plus n mount tht llows ssets over time to keep pce with the long term infltion rte. This is consistent with the YMCA's objective to mintin the purchsing power of the endowment ssets held in perpetuity or for specified term s well s to provide dditionl rel growth through new gifts nd investment returns. Note 7. Property nd Equipment, Net A summry of property nd equipment nd ccumulted deprecition t Decemr 31 is s follows: Lnd nd improvements Buildings Furniture nd equipment Vehicles Lesehold improvements Construction in progress (Note 12) Less ccumulted deprecition $ 8,672,638 62,174,286 9,481,619 31, ,545 2,11,74 82,93,4 36,376,517 $ 8,643,296 58,896,68 9,75, ,39 189,545 1,216,962 78,344,244 33,74,36 $46, S

24 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Note 8. Debt Debt consisted of the following (ll terms, collterl nd interest rtes re presented s of Decemr 31, 214): Industril Revenue Bond (Note A) with PNC Bnk, due in Decemr 217, with monthly pyment of $43,25 which includes principl nd interest, with n effective swp interest rte of 4.22%. Collterlized by mortgge on rel estte locted on Mill Brook Rod, Crittenden Drive, S. Second Street, nd Qulity Plce with net book vlue of $7,813,734. A blloon pyment of $5,786,63 is due in Decemr 217. Industril Revenue Bond (Note B) with PNC Bnk, due in Decemr 217, with monthly pyment of $22,42 which includes principl nd interest, with n effective swp interest rte of 4.22%. Collterlized by mortgge on rel estte locted on Mill Brook Rod, with net book vlue of $3,437,843. A blloon pyment of $2,976,53 is due in Decemr 217. Industril Revenue Bond (Note C) with PNC Bnk, due in Decemr 218, with monthly pyment of $53,357 which includes principl nd interest, with n effective swp interest rte of 2.5%. Collterlized by mortgge on rel estte locted t Norton Commons nd the personl property locted or pertining to the property. Also collterlized by the gross revenues of the YIVICA. A blloon pyment of $7,947,83 is due in Novemr 218. $ 6,525,287 $ 6,763,546 3,353,397 3,467,211 9,544,38 9,935,619 $19,422, In 27, the YMCA entered into n interest rte swp greement with PNC Bnk concerning the City of Lyndon, Kentucky Culturl nd Eductionl Development Revenue Bonds, Series 27 (Note A) with remining notionl mount s of Decemr31, 214, of pproximtely $6,525,. Under this swp greement, fixed swp interest rte of 4.22% is chrged insted of floting rte of 65% of the Bnk's Index Rte. The swp greement hs libility of $473,963 recognized on the consolidted sttements of finncil position t Decemr 31, 214. The swp greement mtures on Decemr 14,

25 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS In 27, the YMCA entered into n interest rte swp greement with PNC Bnk concerning the City of Lyndon, Kentucky Culturl nd Eductionl Development Revenue Bonds, Series 27 (Note B) with remining notionl mount s of Decemr 31, 214 of pproximtely $3,353,. Under this swp greement, fixed swp interest rte of 4.22% is chrged insted of floting rte of 65% of the Bnk's Index Rte. The swp greement hs libility of $246,594 recognized on the consolidted sttements of finncil position t Decemr 31, 214. The swp greement mtures on Decemr 14, 217. In 211, the YMCA entered into n interest rte swp greement with PNC Bnk concerning the City of Lyndon, Kentucky Culturl nd Recretionl Development Revenue Bonds, Series 211 (Note C) with current notionl mount s of Decemr 31, 214 of pproximtely $9,544,. Under this swp greement, fixed interest rte of 2.5% is chrged insted of floting rte of 65% of the Libor-Bloomrg Index rte. The swp greement hs libility of $149,77 recognized on the consolidted sttements of finncil position t Decemr 31, 214. The swp greement mtures on Decemr 1, 218. The bove interest rte swps re considered derivtive finncil instruments nd re clssified s level 2 (fir vlue hierrchy s descrid in Note 5) nd re included in libilities on the consolidted sttements of finncil position. The fir vlue represents the estimted mount the YMCA would hve to py to cncel the swp greements. The fir vlues of the derivtives hve en estimted by n independent third prty. The third prty estimtes re bsed upon models nd forwrd rte ssumptions in order to predict future csh flows on the floting side. The csh flows re then compred to the csh flows on the fixed side. The model then tkes the net of the future pyment mounts nd uses the net present vlue to derive ll vlues. Losses relting to their swp contrcts totled $351,693 nd $336,755 for the yers ended Decemr 31, 214 nd 213, respectively. The losses re included in interest expense nd re reported in the consolidted sttements of functionl expenses. As the YMCA mkes its monthly instllment pyments, if the bnk's rte is low the swp rte, then the YMCA pys the difference. If the bnk's rte exceeds the swp rte, the YMCA is reimbursed from the bnk. These rrngements effectively provide fixed rte component of the totl interest rte chrged on these lons. The future principl mturities of ll debt re s follows: Yer ending Decemr 31, $ 791,69 799,839 9,523,993 8,37,2 81 S

26 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Note 9. Donted Lnd Held for Others The YMCA entered into n greement with Norton Commons, LLC in 211 to receive cres of lnd. As prt of this greement with Norton Commons, the YMCA greed to provide the Bord of Eduction of Jefferson County, Kentucky n exclusive nd irrevocble option to receive cres of the trct of lnd, until Mrch 1, 215. The Bord of Eduction of Jefferson County exercised this option by providing written notice to the YMCA in 215. As result, the YMCA recorded the elimintion of the rel estte held for others (sset nd offsetting libility) vlued t $3,261,554. In Februry 215, bsed on the finl school rchitecturl footprint, the YMCA donted.956 cre of lnd vlued t pproximtely $48, to the Bord of Eduction of Jefferson County restricted for the future construction of the school. This results in reduction of ssets nd reduction in previously donted income ing recorded in 215. Note 1. Cpitl Leses The YMCA hs severl fitness equipment leses nd one lese for computer equipment nd softwre tht hve en clssified s cpitl leses. The economic substnce of the leses is tht the YMCA is finncing the cquisition of equipment through leses nd, ccordingly, the leses re recorded in the Compny's ssets nd libilities. The future nnul minimum lese pyments nd their net present vlue re s follows: Yer ending Decemr 31, Totl minimum lese pyments Less mount representing interest Present vlue of minimum lese pyments $22, , ,854 76,956 45,61 666,559 (44,928) $621,631 The following is n nlysis of the lesed ssets included in property nd equipment: Equipment $ 864,759 Accumulted mortiztion (243,141) $

27 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Note 11. Chnges in Temporrily nd Permnently Restricted Net Assets Temporrily restricted: Blnce Relesed from Blnce Progrm Revenues Restrictions Comprehensive Youth Development (MUW) Dy Cre Progrms (MLTW) Housing Progrms (MUW) Berrytown After School Progrm (MUW) Oldhm County summer cmp (MUW) Blck Achievers (MUW) Project NOW (MUW) Bullitt Co. cpitl Blck Achiever progrm Annul Giving Cmpign Sfe Plce Services Shelter House West Louisville project Berrytown - In-kind use of fcility Bullitt County - In-kind use of fcility $ 58,47 66, ,454 6,22 6,22 4,443 19,84 16,322 6, ,156 15, 25, 2,, 24, , $ 12,69 138, ,41 12,643 13,198 9,53 41,422 $ (118,351) (136,419) (274,155) (12,541) (12,818) (8,969) (4,553) 611,98 (496,156) 35, (15,) (25,) 5, 8,55 (136,) (147,) $ 6,35 69, ,7 6,322 6,6 4,527 2,79 16,322 6, ,98 35, 2,5, 113, ,1791 $L75925i 8( ) $i58928q Progrm Blnce Relesed from Blnce Revenues Restrictions Comprehensive Youth Development (MUW) Dy Cre Progrms (MUW) Housing Progrms (MUW) Berrytown After School Progrm (MLTW) Oldhm County summer cmp (MUW) Blck Achievers (MUW) Project NOW (MUW) Berrytown Corner Store Bullitt Co. cpitl Blck Achiever progrm Annul Giving Cmpign Sfe Plce Services Shelter House West Louisville project Berrytown - In-kind use of fcility Bullitt County - In-kind use of fcility Norton Commons lnd dontion $ 57,431 66, ,68 6,27 5,981 4,269 19,831 6, 16,322 6, , , ,91 3,13,447 $ 116,93 133, ,99 12,439 12,439 8,885 39, ,156 15, 25, 2,, 14,291 11,9 $ (115,477) (133,11) (267,523) (12,246) (12,2) (8,711) (39,674) (6,) (362,581) (136,) (147,) (3,13,447) $ 58,47 66, ,454 6,22 6,22 4,443 19,84 16,322 6, ,156 15, 25, 2,, 24, , l ) $

28 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Permnently restricted: Progrm Endowments Bob Hook, Sr. Memoril Bill Ewing Memoril Sfe Plce Services: Jon Crlle Dy Fund Joyce Skees Memoril Cmp Piomingo: Boyce Greer Memoril Roy Griffm Fund Willim Erly Fund Chestnut Street: Rort Lee Christmn Fund Reel. Alexnder Fund Blnce Blnce Contributions $1,234,924 $7,15 $1,242,74 11,779 11,779 7, 7, 41, 8,11 3, , ,233 41, 8,11 3, , ,233 Progrm Endowments Bob Hook, Sr. Memoril Bill Ewing Memoril Sfe Plce Services: Jon Crlle Dy Fund Joyce Skees Memoril Cmp Piomingo: Boyce Greer Memoril Roy Griffm Fund Willim Erly Fund Chestnut Street: Rort Lee Christmn Fund Reel. Alexnder Fund $7.15 Blnce Contributions $1,234,521 $43 11,779 7, 41, 8,11 3, , ,233 3 $4 j344,283 Blnce $1,234,924 11,779 7, 41, 8,11 3, , ,233 L=3 37,133 The mjority of the permnent endowments hve no specific use restrictions; therefore, the interest income from these ssets is utilized for generl opertions of the YMCA. Gins nd losses (net pprecition nd deprecition) on permnent endowment fund investments will recorded s n increse (decrese) in unrestricted bord designted endowment net ssets unless the donor hs explicitly restricted the use of the net pprecition nd deprecition. 24

29 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Note 12. Construction in Progress At Decemr 31, 214, the YMCA hd expended pproximtely $2,77, in plnning nd demolition costs for new fcility locted in West Louisville. For the yers ended Decemr 31, 214 nd 213, $42,55 nd $21,182, respectively, of interest ws cpitlized for this project. Totl costs for the project, re estimted to pproximtely $26 million nd construction is nticipted to gin in lte 215. The project will finnced with $4 million in dontions, $6 million in csh provided by the YMCA, nd the reminder from other sources. The estimted completion is lte 216. During 214, the YMCA entered into contrct for the option to purchse 14-cre trct of lnd in Hrdin County, s future site of fitness fcility. The YMCA hs expended $25, s good fith deposit on the contrct. The YMCA must obtin nd fulfill certin contingencies to exercise its option to purchse the lnd. The seller must obtin n pprisl of the property. If the pprisl of the property indictes fir mrket vlue of less thn $1.26 million, either prty in the contrct my elect to terminte the contrct. If the property pprises for more thn $1.75 million, the purchse price of the property will $1.75 million, nd the dontion to the YMCA by the seller will $49, plus the excess over the $1.75 million. If the property pprises for less thn $1.75 million the mount of the dontion shll reduced proportiontely. Note 13. Memorndum of Agreement Commitment As the result of Memorndum of Agreement with the Bord of Eduction for the Jefferson County Public School District (JCPS), the YMCA pid $297, in 214 nd $295, in 213 to offset JCPS's expenses for hosting the Childcre Enrichment Progrm nd to ssure its continution nd expnsion. Note 14. Retirement Pln The YMCA is memr of the Ntionl YMCA Retirement Fund, seprte corportion tht dministers the retirement pln. The pln is co-contributory, defined contribution, individul ccount, money purchse retirement pln for the nefit of virtully ll full-time nd qulified prt-time YMCA employees. The YMCA vesting periods re two yer witing period nd immedite vesting, qulified employee contributions re voluntry, The YMCA contributed 12% of the employee's compenstion. The YMCA's contributions were $1,176,926 for 214 nd $1,168,52 for 213.

30 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Note 15. Concentrtion of Csh The YMCA nd Ntionl Sfe Plce, Inc. mintin csh blnces t severl finncil institutions locted in the Louisville, Kentucky re. Accounts t ech institution re insured by the Federl Deposit Insurnce Corportion up to $25,. At Decemr31, 214, the YMCA nd Ntionl Sfe Plce, Inc.'s uninsured csh blnces totled pproximtely $17.1 million. Csh blnces fluctute bsed upon operting needs nd the timing of deposit nd check clering ctivity. Mngement lieves tht these finncil institutions re of sufficient size to provide finncil security of uninsured blnces nd does not lieve the Orgniztions re exposed to ny significnt credit risk. Note 16. Operting Leses In Novemr 24, the YMCA committed to long-term lese for spce locted t the Middletown Plz, 1233 ShelbyvilleRod, Middletown, Kentucky4O243. InFebrury 2 13, the term of lese ws extended for n dditionl three yers, however the mount of squre footge ws reduced from 12,9 squre feet to pproximtely 11,5 squre feet. The monthly lese pyments re $8,. The fcility is used for helth, fitness, nd youth services. In Decemr 21, the YMCA entered into contrct with Jefferson County Fiscl Court, whereby the YMCA opertes fcility locted in Berrytown Prk s YMCA brnch. The lnd nd building is owned by Jefferson County nd will lesed to the YMCA for term of three yers t cost of $1 per yer with three five-yer renewl options. The YMCA supplied equipment nd furnishings for this fcility t n estimted cost of$ 187,. The lese greement ws effective Novemr 1, 22 nd the second five-yer renewl option ws exercised on Novemr 1, 21. The lese fir mrket vlue of $136, hs en recorded in the consolidted sttements of ctivities s occupncy expense for 214 nd 213. In Jnury 21, the YMCA committed to five-yer lese with Simons Publishing Compny for lnd nd building locted t 49 Joe B. Hll Avenue, Shepherdsville, Kentucky The lese pyments re $1 per yer. The fcility is used for helth, fitness nd youth services. The lese fir mrket vlue of$ 147, hs en recorded in the consolidted sttements of ctivities s occupncy expense for 214 nd 213. In Jnury 215, the YMCA renewed this lese for five-yer period, with no chnges in the terms of the lese.