ST. JOHN S LUTHERAN CHURCH

Transcription

1 FINANCIAL REPORT JUNE 30, 2016

2 ST. JOHN S LUTHERAN CHURCH FINANCIAL REPORT JUNE 30, 2016

3 C O N T E N T S INDEPENDENT AUDITOR S REPORT ON THE FINANCIAL STATEMENTS 1-2 FINANCIAL STATEMENTS Statement of financial position 3 Statement of activities 4 Statement of cash flows 5 Notes to financial statements 6-13 SUPPLEMENTARY INFORMATION Statement of functional expenses 14 Statement of activities by location 15

4 Daniells Phillips Vaughan & Bock CPAs & Advisors Certified Public Accountants Business & Personal Consultants Member of the McGladrey Alliance Member of AICPA Division for Firms Private Companies Practice Section INDEPENDENT AUDITOR'S REPORT To the Board of Directors St. John s Lutheran Church Bakersfield, California Report on the Financial Statements We have audited the accompanying financial statements of St. John s Lutheran Church which comprise the statement of financial position as of June 30, 2016, and the related statements of activities and cash flows for the year 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. Auditor s Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit 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 New Stine Road Bakersfield, CA Tel Fax

5 Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of St. John s Lutheran Church as of June 30, 2016, and the results of its operations and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America. Other Matter Our audits were conducted for the purpose of forming an opinion on the financial statements as a whole. The accompanying supplementary information is presented for purposes of additional analysis and is 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. Daniells Phillips Vaughan & Bock Bakersfield, California October 18,

6 ST. JOHN'S LUTHERAN CHURCH STATEMENT OF FINANCIAL POSITION JUNE 30, 2016 ASSETS Cash $ 336,657 Investments in endowment fund 175,138 Tuition receivable, less allowance for uncollectible accounts of $9,491 78,707 Pledges receivable, less allowance for uncollectible pledges of $256,506 (Note 2) 4,873,611 Inventory 11,360 Prepaid expenses 89,971 Restricted assets Cash restricted to investment in land, building, and equipment 136,943 Investments restricted to youth conference 5,022 Investments restricted to endowment 262,343 Land, buildings and equipment (Notes 6, 7 and 8) 17,807,752 Total assets $ 23,777,504 LIABILITIES AND NET ASSETS Accounts payable $ 92,025 Accrued expenses 136,156 Deferred revenue 242,330 Designated funds 278,154 Obligations under capital lease (Note 8) 77,274 Long-term debt (Note 7) 1,219,139 Total liabilities 2,045,078 Net Assets (Note 9): Unrestricted: Board designated 403,044 Other 15,718,507 Temporarily restricted 5,345,393 Permanently restricted 265,482 Total net assets 21,732,426 Total liabilities and net assets $ 23,777,504 See Notes to Financial Statements. -3-

7 ST. JOHN'S LUTHERAN CHURCH STATEMENT OF ACTIVITIES Year Ended June 30, 2016 Revenues, gains and other support: Contributions: Worship services 2,006,885 Temporarily Permanently Unrestricted Restricted Restricted Total $ $ - $ - $ 2,006,885 Building fund - 5,310,767-5,310,767 Other ,248 46,933 Tuition: School 3,158, ,158,563 Children's Center 1,525, ,525,571 Activities 278, ,569 Scrip 118, ,196 Interest and dividends 2,487 18,527-21,014 Realized and unrealized gain (loss) on investments 30 (28,963) - (28,933) Other income 64, ,377 Net assets released from restrictions: Satisfaction of program restrictions Total revenue, gains and other support 7,154,678 5,301,016 46,248 12,501,942 Expenses: Program: Church 2,133, ,133,698 School 3,093, ,093,144 Children's Center 1,436, ,436,778 Total program services 6,663, ,663,620 General and administrative 985, ,933 Total expenses 7,649, ,649,553 Change in net assets (494,875) 5,301,016 46,248 4,852,389 Net assets, beginning 16,616,426 44, ,234 16,880,037 Net assets, ending $ 16,121,551 $ 5,345,393 $ 265,482 $ 21,732,426 See Notes to Financial Statements. -4-

8 ST. JOHN'S LUTHERAN CHURCH STATEMENT OF CASH FLOWS Year Ended June 30, 2016 Cash Flows From Operating Activities Change in net assets $ 4,852,389 Adjustments to reconcile change in net assets to net cash provided by operating activities: Depreciation 623,717 Allowance for bad debts 255,476 Realized and unrealized loss on investments 28,933 Changes in assets and liabilities: (Increase) decrease in: Accounts receivable (5,122,413) Inventory 730 Prepaid expenses (23,012) Increase (decrease) in: Accounts payable and accrued expenses (10,814) Designated funds 43,520 Deferred tuition income (9,807) Net cash provided by operating activities 638,719 Cash Flows From Investing Activities Purchase of property and equipment (196,654) Purchase of assets restricted for long-term purposes (65,699) Net cash (used in) investing activities (262,353) Cash Flows From Financing Activities Decrease in restricted cash and investments (94,492) Net (payments) on revolving line of credit (55,001) Principal payments on long-term borrowings (322,265) Net cash (used in) financing activities (471,758) Net (decrease) in cash (95,392) Cash: Beginning 432,049 Ending $ 336,657 Supplemental Disclosures of Cash Flow Information Cash payments for interest $ 47,468 See Notes to Financial Statements. -5-

9 ST. JOHN S LUTHERAN CHRUCH NOTES TO FINANCIAL STATEMENTS Note 1. Nature of Activities and Significant Accounting Policies Nature of Activities: St. John s Lutheran Church ( the Church ) is a not-for-profit organization located in Bakersfield, California. Part of its mission program is accomplished through the operation of St. John s Children s Center and St. John s Lutheran School, providing Christian based daycare and education for students from preschool through grade eight. The school operations are supported primarily from tuition fees. A summary of the Church s significant accounting policies follows: Contributions: Contributions received are recorded as unrestricted, temporarily restricted, or permanently restricted support, depending on the existence and/or nature of donor restrictions. Contributions that are restricted by the donor are reported as increases in unrestricted net assets if the restrictions expire in the fiscal year in which the contributions are recognized. All other donor-restricted contributions are reported as increase in temporarily or permanently restricted net assets, depending on the nature of the restrictions. Contributions that are required to be reported as temporarily restricted support are then reclassified to unrestricted net assets upon expiration of time restrictions or satisfaction of donor restrictions. Contributed Services, Materials and Assets: In addition to receiving cash contributions, the Church occasionally receives in-kind contributions from various donors. It is the policy of the Church to record the estimated fair market value of certain in-kind donations as an asset or expense in its financial statements and, similarly increase income by a like amount. In 2015 The Church accepted an in-kind donation from the Arvin Union Congregational Church ( AUCC ), whereas AUCC donated all of its real property, including a church and a parsonage. The donation received from AUCC was free and clear of all encumbrances and liens. The Church now operates the AUCC in Arvin as the St. John s Valley of Faith Church. Donated services are recognized as contributions if the services (a) create or enhance non-financial assets or (b) require specialized skills, are performed by individuals possessing those skills, and would otherwise be purchased by the Church. A substantial number of volunteers have donated significant amounts of time to the Church's programs and supporting services. No amounts have been reflected in the financial statements for these services since they do not meet the criteria for recognition. Tuition receivable: Tuition receivable is stated at the amount management expects to collect from outstanding balances. Management provides for probable uncollectible amounts through a provision for bad debt expense and an adjustment to a valuation allowance based on its assessment of the current status of individual accounts. Balances that are still outstanding after management has used reasonable collection efforts are written off through a charge to the valuation allowance and a credit to accounts receivable. Investment Valuation and Income Recognition: Financial statement presentation follows the guidance in the FASB Accounting Standards Codification for Not-for-Profit Entities. Accordingly, investments in marketable securities with readily determinable fair values and all investments in debt securities are reported at their fair values in the statement of financial position. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. See Note 4 for further discussion of fair value measurements. -6-

10 ST. JOHN S LUTHERAN CHRUCH NOTES TO FINANCIAL STATEMENTS 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. A significant estimate with respect to these financial statements is the allowance for uncollectible pledges. Property and Equipment: Purchases of property and equipment are recorded at cost. Donations of property and equipment are recorded as support at their estimated fair value at date of gift. Such donations are reported as unrestricted support unless the donor has restricted the donated asset to a specific purpose. Assets donated with explicit restrictions regarding their use and contributions of cash that must be used to acquire property and equipment are reported as restricted support. Absent donor stipulations regarding how long those donated assets must be maintained, the Church reports expirations of donor restrictions when the donated or acquired assets are placed in service as instructed by the donor. Property and equipment is depreciated using the straight-line method over the estimated useful life of assets. The class lives of the more significant items within each property classification are as follows: Buildings and improvements Furniture and fixtures Equipment years 5-10 years 3-5 years Construction in Progress: Costs attributed to the construction of the new church facilities and improvements are capitalized. As the stages are completed and put into service, the property is depreciated using the straight-line method over the applicable years. Deferred Revenue: Deferred revenue consists of prepaid tuition for the next school year. Income Taxes: The Church is a not-for-profit corporation and has been recognized as tax exempt pursuant to Section 501(c) (3) of the Internal Revenue Code and related State of California tax code sections, and is not required to file information returns. Advertising: The Church expenses advertising costs as they are incurred. Advertising expense totaled $7,194 for the year ended June 30, Subsequent Events: The Church has evaluated subsequent events through October 18, 2016, the date on which the financial statements were available to be issued. There are no events identified by management which would require disclosure in the financial statements. Note 2. Pledges Receivable Pledges receivable consist of the following at June 30, 2016: Amount receivable within one year $ 623,301 Amount receivable in 1 to 5 years 4,506,816 Total pledges receivable 5,130,117 Less allowance for uncollectible amounts 256,506 Pledges receivable, net of allowance $ 4,873,611-7-

11 ST. JOHN S LUTHERAN CHRUCH NOTES TO FINANCIAL STATEMENTS Note 3. Endowment Funds The Church has adopted the guidance on the net classification of donor restricted endowment funds for a not-for-profit organization that is subject to an enacted version of the State Prudent Management of Institutional Funds Act (SPMIFA) and also requires disclosure about endowment funds, both donorrestricted endowment funds and institution-designated endowment funds. The Church's endowment funds include donor-restricted endowment funds. As required by accounting principles generally accepted in the United States, net assets associated with endowment funds are classified and reported based on the existence or absence of donor-imposed restrictions. The Church has interpreted the SPMIFA as requiring the preservation of the fair value of the original gift as of the gift date of the donor-restricted endowment funds absent explicit donor stipulations to the contrary. As a result of this interpretation, the Church classifies as permanently restricted net assets: (a) the original value of gifts donated to the permanent endowment, (b) the original value of subsequent gifts to the permanent endowment, and (c) accumulations to the permanent endowment made in accordance with the direction of the applicable donor gift instrument at the time the accumulation is added to the funds. The remaining portion of the donor-restricted endowment funds that are not classified in permanently restricted net assets are classified either as unrestricted, board designated or temporarily restricted net assets until those amounts are appropriated for expenditure by the Church in a manner consistent with the standard of prudence prescribed by SPMIFA. In accordance with SPMIFA, the Church considers the following factors in making a determination to appropriate or accumulate donor restricted endowment funds: (1) The duration and preservation of the funds (2) The purposes of the Church and the donor-restricted endowment funds (3) General economic conditions (4) The possible effect of inflation and deflation (5) The expected total return from income and the appreciation of investments (6) Other resources of the Church (7) The investment policies of the Church Investment policy: The Church's primary investment objectives are to preserve the real purchasing power of the principal, and to provide a stable source of perpetual financial support to fund programs in accordance with the Church's spending policy. To satisfy the Church's long-term rate of return objective, the Church relies on a total return strategy in which investment returns are achieved through both capital appreciation (realized and unrealized) and from current yield (interest and dividends). The objective is expected to be achieved over rolling five to ten year periods on a total return basis. Spending policy: The purpose of the endowment funds is to provide a perpetual source of operating support to the endowed programs. The Church's spending policy allocates total earnings from the portfolio between current spending and the reinvestment for future earnings. The Church s policy is designed to preserve both the purchasing power of their endowments and of their endowment spending withdrawals. Such a policy also ensures that the competing needs both current and future are in financial equilibrium. For the unrestricted board designated funds, the Church has adopted a long-term spending rate target equal to 5% of the trailing three year average of the endowment fund's quarterly total asset value. This amount can be changed by board action. Temporarily restricted funds are withdrawn only for youth gathering scholarships as specified by the donor. -8-

12 ST. JOHN S LUTHERAN CHRUCH NOTES TO FINANCIAL STATEMENTS At times, the fair value of assets associated with the endowment funds may fall below the level that the donor would require the Church to retain as funds of perpetual duration. These deficiencies result from unfavorable market fluctuations. In accordance with generally accepted accounting principles deficits of this nature are reported as unrestricted net assets. Changes in the endowment net assets for the year ended June 30, 2016 are as follows: Unrestricted Board Designated Temporarily Restricted Permanently Restricted Total Endowment fund net assets, June 30, 2015 $ 184,750 $ 1,852 $ 219,234 $ 405,836 Contributions ,248 46,248 Investment return 5, ,333 Appropriation of endowment assets for expenditure (14,914) - - (14,914) Endowment fund net assets, June 30, 2016 $ 175,138 $ 1,883 $ 265,482 $ 442,503 Note 4. Investments Investments are stated at fair value. Cost, fair value and unrealized appreciation (depreciation) at June 30, 2016 are as follows: Unrealized Appreciation Cost Fair Value (Depreciation) Youth Endowment: Mutual Fund $ 4,992 $ 5,023 $ 31 Church Endowment Global Balanced Fund $ 436,280 $ 437,480 $ 1,200 The following schedule summarizes the investment return and its classification in the statement of activities for the year ended June 30, 2016: Temporarily Permanently Unrestricted Restricted Restricted Total Interest income $ 2,487 $ 18,527 $ - $ 21,014 Net realized and unrealized gain (loss) on investments 30 (28,963) - (28,933) Total reported investment return $ 2,517 $ (10,436) $ - $ (7,919) -9-

13 ST. JOHN S LUTHERAN CHRUCH NOTES TO FINANCIAL STATEMENTS Note 5. Fair Value Measurements The Fair Value Measurements topic of the Financial Accounting Standards Board Codification establishes a framework for measuring fair value. That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurement) and the lowest priority to unobservable inputs (level 3 measurements). The three levels of the fair value hierarchy are described below: Level 1 Level 2 Level 3 Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the Church has the ability to access. Inputs to the valuation methodology include: Quoted prices for similar assets or liabilities in active markets; Quoted prices for identical or similar assets or liabilities in inactive markets; Inputs other than quoted prices that are observable for the asset or liability; Inputs that are derived principally from or corroborated by observable market data by correlation or other means. If the asset or liability has a specified (contractual) term, the Level 2 input must be observable for substantially the full term of the asset or liability. Inputs to the valuation methodology are unobservable and significant to the fair value measurement. The asset s or liability s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. Following is a description of the valuation methodologies used for assets measured at fair value. Pooled accounts: Accounts that invest exclusively in mutual funds are valued at the net asset value ( NAV ) of the underlying mutual fund. Those accounts directly investing in fixed maturity securities are measured based on the pricing data provided by outside valuation service providers who in turn generally use the mean of bid and ask prices but may also use alternative observable pricing inputs for certain securities. Mutual funds: Valued at the net asset value ( NAV ) of shares held by the Church at year end. The preceding methods described may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Church believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. All investments held by the Church at June 30, 2016 are considered to be Level 2 assets. -10-

14 ST. JOHN S LUTHERAN CHRUCH NOTES TO FINANCIAL STATEMENTS Note 6. Land, Buildings and Equipment Land, buildings and equipment is comprised of the following at June 30, 2016: Land $ 3,938,100 Buildings and improvements 16,951,033 Furniture and fixtures 344,800 Equipment 1,897,691 Construction in progress 127,705 23,259,329 Less accumulated depreciation $ 5,451,577 17,807,752 Note 7. Pledged Assets and Long-term Debt The Church has a variable rate revolving line of credit with Mission Bank in the amount of $3,730,000, secured by a deed of trust. Interest only payments are required monthly at the bank's prime rate (3.25% at June 30, 2016) plus.5%, with a minimum floor of 4.25%. The maximum principal amount available under this line is reduced annually by $186,500. If the outstanding principal balance at the time of the annual principal reduction is greater than the new maximum, the Church will be required to make a principal payment in an amount sufficient to reduce the outstanding principal balance to an amount not greater than the new maximum principal amount. The note is due and payable in full on January 5, The agreement contains certain customary conditions and financial covenants. The outstanding balance on the line of credit at June 30, 2016, was $1,175,223. The Church obtained financing through PG&E for a cost saving energy retro-fit project in the amount of $73,665. The note is non-interest bearing and is due in monthly installments of $1,417 through February The minimum obligations as of June 30, 2016 are due in future years are as follows: Years ending June 30, 2017 $ 17, , $ 9,916 43,916 Note 8. Obligations Under Capital Lease The liability under the capital lease at June 30, 2016, in the amount of $77,274, represents the present value of the balance due in future years, discounted at 6.7%. The liability is payable in monthly installments of $2,724 through April

15 ST. JOHN S LUTHERAN CHRUCH NOTES TO FINANCIAL STATEMENTS The following is a schedule of future minimum lease payments due under the capital leases, together with the present value of net minimum lease payments as of June 30, 2016: Years ending June 30, 2017 $ 32, , , ,736 Minimum lease payments 84,482 Less amount representing interest 7,208 Present value of minimum lease payments $ 77,274 Note 9. Net Assets Unrestricted net assets have been designated by the Board of Directors for the following items as of June 30, 2016: St. John's endowment $ 175,138 Reserves 227,906 $ 403,044 Temporarily restricted net assets are restricted for the following as of June 30, 2016: Building and building improvements $ 5,334,309 Purchase of church liturgical furnishings 9,201 Youth Gathering Scholarship fund $ 1,883 5,345,393 Permanently restricted net assets are restricted for the following as of June 30, 2016: St. John's endowment $ 219,234 Youth endowment 46,248 $ 265,482 The interest earned on the Youth Endowment is to be used as a scholarship to the Youth as specified by the donor, and certain earnings on the St. John s Endowment are to be used in accordance with the endowment s by-laws. -12-

16 ST. JOHN S LUTHERAN CHRUCH NOTES TO FINANCIAL STATEMENTS Note 10. Employee Benefit Plan The Church provides a defined contribution plan (the Plan) covering all full-time employees working more than 20 hours per week and more than five consecutive months. The Church contributes 8.7% of the total annual compensation of the participants. Participants are not eligible to receive benefits under the plan until they have earned five years of creditable service (vested). In addition, the Church offers a 403(b) salary-deduction plan to which eligible employees may make pre-tax contributions. Total expense for the Plan amounted to $361,400 for the year ended June 30,

17 ST. JOHN'S LUTHERAN CHURCH STATEMENT OF FUNCTIONAL EXPENSES Year Ended June 30, 2016 Program Services Children's Total Program Church School Center Services Salaries and wages $ 935,270 $ 1,618,841 $ 855,609 $ 3,409,720 Employee benefits 244, , , ,458 1,179,923 2,028,427 1,186,828 4,395,178 Depreciation 227, ,794 83, ,139 Special activities 177, ,864 3, ,222 Bad debts - 3,872-3,872 Utilities 96, ,185 30, ,800 Missions 234, ,365 Care of buildings and grounds 15, ,601 Hot lunch and nutrition - 78,214 46, ,448 Financial aid and scholarships - 101,406 20, ,620 Janitorial service and supplies Scrip purchases - 109, ,169 Program supplies 80,084 18,695 6, ,711 Office supplies 48,548 23,804 20,342 92,694 Curriculum - 72,291 7,455 79,746 Technology 12, ,434 Computer supplies - 53,585-53,585 Interest 16,368 20,893 6,355 43,616 Conferences 17,493 22,011 3,226 42,730 Insurance 3, ,399 Machine maintenance 3,598 11,917 9,118 24,633 Telephone 8,401 8,571 2,318 19,290 Relocation search - 10,677-10,677 Dues and subscriptions 1,035 1,901 4,983 7,919 Legal Fees Advertising 4,992 1, ,194 Equipment lease 980-1,907 2,887 Rentals 2, ,554 Athletics - 4,527 4,527 Health and Safety ,048 3,854 Taxes and fees 1, ,122 $ 2,133,698 $ 3,093,144 $ 1,436,778 $ 6,663,

18 General and Administrative Total $ 281,808 $ 3,691,528 82,472 1,067, ,280 4,759,458 3, ,717 1, , , ,478 1, , , , , , , , , , ,711-92,694-79,746 48,456 60,890-53,585 3,851 47, ,624 24,043 27,442-24, ,389-10,677-7,919 7,875 7,875-7,194 3,968 6,855 4,229 6,783-4,527-3,854 1,853 2,975 $ 985,933 $ 7,649,553

19 ST. JOHN'S LUTHERAN CHURCH STATEMENT OF ACTIVITIES BY LOCATION Year Ended June 30, 2016 Bakersfield Arvin Total Revenues, gains and other support: Contributions: Worship services $ 1,884,446 $ 122,439 $ 2,006,885 Building fund 5,310,767-5,310,767 Other Tuition: School 3,158,563-3,158,563 Children's Center 1,525,571-1,525,571 Activities 278, ,569 Scrip 118, ,196 Interest and dividends 21,014-21,014 Realized and unrealized (loss) on investments (28,933) - (28,933) Other income 110, ,625 Total revenue, gains and other support 12,379, ,439 12,501,942 Expenses: Program: Church 1,952, ,359 2,133,698 School 3,093,144-3,093,144 Children's Center 1,436,778-1,436,778 Total program services 6,482, ,359 6,663,620 General and administrative 985, ,933 Total expenses 7,468, ,359 7,649,553 Change in net assets 4,911,309 (58,920) 4,852,389 Net assets, beginning 16,835,738 44,299 16,880,037 Net assets, ending $ 21,747,047 $ (14,621) $ 21,732,