WOODMEN VALLEY CHAPEL AND SUBSIDIARY. Consolidated Financial Statements With Independent Auditors Report. September 30, 2016 and 2015

Transcription

1 WOODMEN VALLEY CHAPEL AND SUBSIDIARY Consolidated Financial Statements With Independent Auditors Report September 30, 2016 and 2015

2 Table of Contents Independent Auditors' Report 1 Consolidated Financial Statements Consolidated Statements of Financial Position 3 Consolidated Statements of Activities 4 Consolidated Statements of Cash Flows 5 Notes to Consolidated Financial Statements 6 Supplementary Information Independent Auditors' Report on Supplementary Information 15 Consolidating Statement of Financial Position 16 Consolidating Statement of Activities 17 Page

3 INDEPENDENT AUDITORS' REPORT Finance Council Woodmen Valley Chapel and Subsidiary Colorado Springs, Colorado We have audited the accompanying consolidated statements of financial position of Woodmen Valley Chapel and Subsidiary, which comprise the consolidated statements of financial position as of September 30, 2016 and 2015, and the related consolidated statements of activities and cash flows for the years then ended, and the related notes to the consolidated financial statements. Management's Responsibility for the Consolidated Financial Statements Management is responsible for the preparation and fair presentation of these consolidated 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 consolidated 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 consolidated 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 audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the consolidated 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 consolidated 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 consolidated financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

4 Finance Council Woodmen Valley Chapel and Subsidiary Colorado Springs, Colorado Opinion In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Woodmen Valley Chapel and Subsidiary as of September 30, 2016 and 2015, and the changes in their net assets and cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America. Colorado Springs, Colorado February 9, 2017

5 Consolidated Statements of Financial Position September 30, ASSETS: Current assets: Cash and cash equivalents $ 1,965,744 $ 2,226,710 Restricted cash 1,076,217 1,229,848 Accounts receivable and other assets 184, ,635 3,226,138 4,017,193 Payment in lieu of taxes 596, ,745 Property held for sale 1,676,549 2,443,871 Property held for investment purposes 1,779,051 2,443,142 JfcdYfhm UbX Yei]daYbhobYh 8,484,708 9,038,574 Total Assets $ 15,762,652 $ 18,085,525 LIABILITIES AND NET ASSETS: Current liabilities: Accounts payable $ 196,834 $ 267,922 Accrued expenses 515, ,311 =iffybh dcfh]cb cz VcbXg dumuv`yobyh 331, ,681 1,043,415 1,272,914 Fcb[+hYfa dcfh]cb cz VcbXg dumuv`yobyh 9,107,979 11,094,363 10,151,394 12,367,277 Net assets: Unrestricted: Operating 338, ,147 Board designated 1,000, ,391?ei]hm ]b dfcdyfhm UbX Yei]daYbhobYh* dfcdyfhm \Y`X Zcf sale, and property held for investment purposes 3,577,163 3,756,391 4,915,945 5,073,929 Temporarily restricted 695, ,319 5,611,258 5,718,248 Total Liabilities and Net Assets $ 15,762,652 $ 18,085,525 See notes to consolidated financial statements -3-

6 Consolidated Statements of Activities Year Ended September 30, Temporarily Temporarily Unrestricted Restricted Total Unrestricted Restricted Total SUPPORT AND REVENUE: Tithes and offerings $ 9,879,733 $ 812,871 $ 10,692,604 $ 9,610,679 $ 630,501 $ 10,241,180 Program and other income 631, , , ,930 Gain (loss) on sale of property held for sale 231, ,236 (344,453) - (344,453) Total Support and Revenue 10,742, ,871 11,555,729 10,044, ,501 10,674,657 NET ASSETS RELEASED: Purpose and time restrictions 761,877 (761,877) - 575,577 (575,577) - EXPENSES: Salaries and benefits 5,770,136-5,770,136 5,146,648-5,146,648 Ministry 2,275,489-2,275,489 2,145,566-2,145,566 Office expense 2,253,720-2,253,720 1,878,237-1,878,237 Interest 716, , , ,068 Depreciation 647, , , ,210 Total Expenses 11,662,719-11,662,719 10,620,729-10,620,729 Change in Net Assets (157,984) 50,994 (106,990) (996) 54,924 53,928 Net Assets, Beginning of Year 5,073, ,319 5,718,248 5,074, ,395 5,664,320 Net Assets, End of Year $ 4,915,945 $ 695,313 $ 5,611,258 $ 5,073,929 $ 644,319 $ 5,718,248 See notes to consolidated financial statements -4-

7 Consolidated Statements of Cash Flows Year Ended September 30, CASH FLOWS FROM OPERATING ACTIVITIES: Change in net assets $ (106,990) $ 53,928 Adjustments to reconcile change in net assets to net cash provided (used) by operating activities: Amortization of capitalized bond fees 22,319 22,319 Depreciation 647, ,210 Contributions restricted for long-term purposes (90,092) (76,990) (Gain) loss on sale of property held for sale (231,236) 344,453 Loss on disposal of property and equipment - 281,952 Change in operating assets and liabilities: Accounts receivable and other assets 376,458 (463,431) Payment in lieu of taxes (453,461) (365,000) Accounts payable (71,088) 98,571 Accrued expenses (185,113) 174,571 Net Cash Provided (Used) by Operating Activities (92,163) 795,583 CASH FLOWS FROM INVESTING ACTIVITIES: Additions related to property held for sale and investment (133,263) (105,206) Proceeds from sale of property held for sale 1,925, ,000 Purchases of property and equipment (222,262) (398,131) Net Cash Provided by Investing Activities 1,569, ,663 CASH FLOWS FROM FINANCING ACTIVITIES: Contributions restricted for long-term purposes 90,092 76,990 Change in restricted cash 153,631 (656,394) Principal payments on bonds payable (1,982,001) (315,000) Net Cash Used by Financing Activities (1,738,278) (894,404) Net Change in Cash and Cash Equivalents (260,966) 297,842 Cash and Cash Equivalents, Beginning of Year 2,226,710 1,928,868 Cash and Cash Equivalents, End of Year $ 1,965,744 $ 2,226,710 SUPPLEMENTAL DISCLOSURE AND NON-CASH TRANSACTIONS: Cash paid for interest (none capitalized) $ 731,018 $ 706,293 Property transferred to property held for investment purposes $ 797,354 $ - Property held for investment purposes transferred to property held for sale $ 926,442 $ 2,443,871 See notes to consolidated financial statements -5-

8 Notes to Consolidated Financial Statements September 30, 2016 and NATURE OF ORGANIZATIONS: Woodmen Valley Chapel (the Church) is a non-denominational, evangelical church which was organized in Since 1991, the Church has grown from average total attendance of 600 to 5,500. The Church exists to launch and strengthen a fleet of Christ-following communities who are compassionately sailing through a turbulent culture toward a deeper amazement of AcXpg grace. Ministries of the Church include weekend worship services and classes, children's activities, youth groups, single adult fellowships, small group fellowships, and ministries to men, women, and families. Various groups in the Church are involved in evangelistic outreach in Colorado Springs, Colorado, as well as worldwide. During the year ended September, 30, 2006, the Church formed a new corporation called The Center for Strategic Ministry (CSM). CSM has received tax exempt status under section 501(c)(3) of the Internal Revenue Code. The purpose of CSM is to: (1) develop and manage the worldwide missions strategy of the Church, (2) further the Great Commission mandate to make disciples throughout nations by collaborating with other evangelical Christian churches and ministries on common worldwide evangelical ministry goals, and by establishing strategic, tactical, and other ministry partnerships, (3) facilitate current and deferred fund-raising opportunities of the Church, the worldwide missions strategy of the Church, and strategic ministry projects and partnerships organized or supported by the Church or this corporation, (4) support, encourage, and facilitate the growth of the Christian faith throughout the world, and (5) support other organizations, projects, and initiatives that are organized and operated for similar purposes. CSM is under the authority of the Elder Council of the Church. During the year ending September 30, 2009, the Church granted various assets to CSM and CSM began operations. All intercompany transactions have been eliminated in the consolidated financial statements. CSM Development & Services Corporation (CSM D&S) is a for-profit corporation, formed in Due to the small amount of financial activity, CSM D&S is consolidated within CSM on the supplementary consolidating schedules. The Church and CSM (collectively, WVC) are operated as nonprofit organizations exempt from federal income taxes under section 501(c)(3) of the Internal Revenue Code (the Code) and are not private foundations under section 509(a) of the Code. The primary source of support and revenue for WVC are tithes and offerings from the Church's attendees. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: WVC maintains its accounts and prepares its consolidated financial statements on the accrual basis of accounting in conformity with accounting principles generally accepted in the United States of America. The preparation of consolidated 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, disclosures of any contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The significant accounting policies followed are described below to enhance the usefulness of the consolidated financial statements to the reader. -6-

9 Notes to Consolidated Financial Statements September 30, 2016 and SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued: CASH AND CASH EQUIVALENTS Cash and cash equivalents consist of petty cash, demand deposits, and money market accounts. These accounts may, at times, exceed federally insured limits. WVC has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk on cash and cash equivalents. RESTRICTED CASH Restricted cash consists of: September 30, Payment in lieu of taxes escrow: Bond repayment $ 254,795 $ 78,009 Land improvements 232, ,430 Bond sinking fund 327, ,380 Insurance proceeds escrow 237,546 - Land proceeds escrow 22, ,029 $ 1,076,217 $ 1,229,848 ACCOUNTS RECEIVABLE AND OTHER ASSETS Accounts receivable and other assets primarily consists of a grant receivable for CSM and a note receivable from the Woodmen Heights Metropolitan District (the District). Management believes that all accounts receivable and other assets are fully collectible. Therefore, no allowance for doubtful accounts has been recorded as of September 30, 2016 and 2015, respectively. PROPERTY HELD FOR SALE AND PROPERTY HELD FOR INVESTMENT PURPOSES Property held for sale and property held for investment purposes consists of land held at the Woodman Heights campus and one parcel of land at the Rockrimmon campus. Property held for sale and property held for investment purposes are recorded at the lower of historical cost or market value. Property classified as held for sale includes property with an active contract that is expected to be executed within one year. Property not being used for operating purposes or active contracts not expected to be executed within one year are classified as property held for investment purposes on the consolidated statements of financial position. -7-

10 Notes to Consolidated Financial Statements September 30, 2016 and SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued: PROPERTY HELD FOR SALE AND PROPERTY HELD FOR INVESTMENT PURPOSES, continued During the year ended September 30, 2015, WVC entered into multiple contracts to sell portions of property held for sale and property held for investment purposes. Two parcels of land were sold during the year ended September 30, 2016 for $1,925,000 and the related gain on these sales of $231,236 was recorded on the consolidated statements of activities. During the year ended September 30, 2015, a parcel of land was sold for $900,000. The related loss on this sale of $344,453 was recorded on the consolidated statements of activities for the year ended September 30, The remaining active contracts, which are to be executed over a two year period, will exchange a portion of property held for sale and property held for investment purposes for approximately $5,015,000. PROPERTY AND EQUIPMENT Property and equipment are stated at cost, or, if donated, at the estimated fair market value at the date of donation. Property donated with restrictions regarding their use and contributions of cash to acquire property are reported as restricted support. Absent any donor stipulations, these restrictions expire when the asset is acquired or placed in service, and a reclassification is made from temporarily restricted net assets to unrestricted net assets at that time. Purchases of long-lived assets in excess of $1,000 with a useful life in excess of one year are capitalized. Depreciation is recorded using the straight-line method over estimated useful lives of thirty years for buildings, ten years for land improvements, and five to twenty years for furniture and equipment. NET ASSETS The net assets of WVC have been reported in the following two classes: Unrestricted net assets include those resources that are available for current operations, including those resources board designated and those resources invested in property and Yei]daYbhobYh* property held for sale, and property held for investment purposes. Temporarily restricted net assets include those resources donor restricted for various ministry projects and programs. -8-

11 Notes to Consolidated Financial Statements September 30, 2016 and SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued: SUPPORT AND REVENUE Contributions from tithes and offerings are recorded when made, which may be when cash or other assets are received or unconditionally promised. Gifts of cash and other assets are reported as restricted support if they are received with donor stipulations that limit the use of donated amounts. When a donor restriction expires, that is, when a time restriction ends or a purpose restriction is satisfied, temporarily restricted net assets are reclassified to unrestricted net assets and reported in the consolidated statements of activities as net assets released from restrictions. All contributions are considered available for unrestricted use unless specifically restricted by the donor. Contributed services and faith promises for contributions are not reflected in the consolidated financial statements as they do not meet the definitions for skilled services and unconditional promises to give under accounting standards. Program and other income is related to fees collected from program activities, such as retreats, events and bookstore sales. This income is recorded when earned. UNCERTAIN TAX POSITIONS The financial statement effects of a tax position taken or expected to be taken are recognized in the consolidated 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 consolidated statements of activities. As of September 30, 2016, WVC had no uncertain tax positions that qualify for recognition or disclosure in the consolidated financial statements. WVC is generally no longer subject to U.S. federal and state income tax examinations by tax authorities for the years prior to RECLASSIFICATIONS Certain prior year amounts have been reclassified in order to conform with current year presentation. EARLY ADOPTION OF RECENTLY ISSUED PRONOUNCEMENTS During the year ended September 30, 2016, WVC early adopted Accounting Standards Update (ASU) , Simplifying the Presentation of Debt Issuance Costs. ASU was issued in April 2015 and is effective for years beginning after December 15, 2015 with early implementation permitted and retrospective application required. ASU requires debt issuance costs to be reported as a direct reduction of the carrying value of the debt (i.e., a contra liability), rather than as an asset. See note 4 for disclosure of capitalized bond fees. -9-

12 Notes to Consolidated Financial Statements September 30, 2016 and JLIJ?LNS ;H>?KOCJG?HNoH?N8 JfcdYfhm UbX Yei]daYbhobYh Wcbg]gh cz8 September 30, Land $ 1,429,499 $ 1,653,574 Land improvements 653, ,458 Buildings and improvements 16,967,560 16,939,632 Furniture and equipment 3,407,312 3,348,901 Vehicles 140, ,343 22,598,603 22,711,908 Less accumulated depreciation (14,363,710) (13,834,975) 8,234,893 8,876,933 Construction in progress 249, ,641 $ 8,484,708 $ 9,038,574 Equity in property and Yei]daYbhobYh* property held for sale, and property held for investment purposes consists of: September 30, JfcdYfhm UbX Yei]daYbhobYh $ 8,484,708 $ 9,038,574 Property held for sale 1,676,549 2,443,871 Property held for investment purposes 1,779,051 2,443,142 Restricted cash 1,076,217 1,229,848 FYgg fy`uhyx VcbXg dumuv`yobyh (9,439,362) (11,399,044) $ 3,577,163 $ 3,756,

13 Notes to Consolidated Financial Statements September 30, 2016 and <IH>M J;S;<F?oH?N8 Bonds payable consist of issued First Mortgage 2012 Series Bonds (the bonds) of $12,775,000. These simple interest bonds were issued at face value and pay semi-annual interest payments on each December 1st and June 1st, at an average interest rate of 6.44%. The bonds mature between December 1, 2012 and June 1, As of the years ended September 30, 2016 and 2015, outstanding bonds payable were $9,868,999 and $11,851,000, respectively. The bonds may be redeemed, prior to the stated maturity and without penalty, on any of the monthly anniversaries of the date of issue without penalty or prepayment premium. The bonds are secured by a first deed of trust that is in favor of the bondholders. The bonds are also secured by a lien on substantially all of the property and equipment of the Church campus and the bond sinking fund associated with the bonds. The Church is currently in compliance, or has received waivers, for all covenants related to these bonds. WVC is required to make weekly deposits into a bond sinking fund of $17,710 until May 2022, at which time weekly deposits will increase to $18,445 until maturity. The weekly deposits may be reduced in the event of redemption of outstanding bonds at the option of WVC, and certain weekly deposits may be reduced through prepayment of such monthly deposits or through the accumulation of investment income in the sinking fund account. WVC is required to make monthly deposits into an escrow account of $6,500 for the payment in lieu of taxes liability. The bond sinking fund balance and the payment in lieu of taxes escrow account are included in restricted cash on the consolidated statements of financial position. <cbx dumuv`y Wcbg]ghg czobyh8 September 30, Bonds payable $ 9,868,999 $ 11,851,000 FYgg WUd]hU`]nYX VcbX ZYYgobYh (429,637) (451,956) $ 9,439,362 $ 11,399,044 Capitalized bond fees are amortized over the life of the bonds using the straight-line method, which approximates the effective interest method. Accumulated amortization was $94,855 and $72,536 as of September 30, 2016 and 2015, respectively. -11-

14 Notes to Consolidated Financial Statements September 30, 2016 and <IH>M J;S;<F?oH?N* Wcbh]biYX8 Future minimum bond principal payments are: Year Ending September 30, 2017 $ 340, , , , ,000 Thereafter 8,000,999 $ 9,868, OPERATING LEASES: WVC has several operating leases, with varying terms, for office equipment. Lease expense for the years ended September 30, 2016 and 2015 was $154,402 and $140,718, respectively. Future minimum payments are: Year Ending September 30, 2017 $ 135, , , , ,998 Thereafter 9,499 $ 354,

15 Notes to Consolidated Financial Statements September 30, 2016 and TEMPORARILY RESTRICTED NET ASSETS: Temporarily restricted net assets consist of: September 30, Purpose restricted: Community impact $ 236,110 $ 211,034 Memorials and projects 148, ,598 Global impact 144, ,166 Natural disaster relief 43,752 43,752 Other 34,128 31,769 Time restricted 87, ,000 $ 695,313 $ 644, RETIREMENT PLAN: WVC sponsors a 403(b) plan for all employees. WVC provides a direct match of 1%, 2%, 4%, or 6%, depending on length of employment, of eligible salary for all participating employees. Participants are 100% vested immediately upon participation. Total employer contributions to the plan was $120,037 and $103,743 for the years ended September 30, 2016 and 2015, respectively. 8. FUNCTIONAL ALLOCATION OF EXPENSES: The costs of providing various program services and supporting activities have been summarized on a functional basis below. Accordingly, certain costs have been allocated among the program services and supporting activities benefited. Functional expenses are: Year Ended September 30, Program services $ 9,794,692 $ 8,924,086 Supporting activity: general and administrative 1,868,027 1,696,643 $ 11,662,719 $ 10,620, FAITH PROMISES: As a result of its various building campaigns, WVC receives indications of intent to give that are commitments to provide monthly, quarterly, or annual gifts of a specified amount. These commitments are open-ended and subject to unilateral change by the donor. Because the commitments do not express a term or period, the amount of the commitment is not measurable. Given these factors, the commitments are not considered to be unconditional promises to give and are not recognized in these consolidated financial statements. -13-

16 Notes to Consolidated Financial Statements September 30, 2016 and PAYMENT IN LIEU OF TAXES: WVC entered into an agreement for payment in lieu of taxes in October 2005 for property held in a new development. The terms of the agreement call for an annual payment in April of $312,022. This agreement transferred to CSM in January Should CSM sell any portion of the property, the payment would be recalculated accordingly and, if the entire property were sold, CSM would no longer be obligated to make this payment. During the years ended September 30, 2016 and 2015, WVC sold portions of the property. Part of the proceeds from these sales have been escrowed to pay for improvements to the District's property. As of September 30, 2016 and 2015, the amount included in escrow accounts was $255,885 and $675,430, respectively. As CSM incurs costs for these improvements, the escrow will be used and CSM will record an asset called payment in lieu of taxes, which was $596,206 and $142,745 as of September 30, 2016 and 2015, respectively. CSM will decrease this payment in lieu of taxes by a portion of their required payment to the District in future years. 11.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. -14-

17 SUPPLEMENTARY INFORMATION

18 INDEPENDENT AUDITORS' REPORT ON SUPPLEMENTARY INFORMATION Finance Council Woodmen Valley Chapel and Subsidiary Colorado Springs, Colorado We have audited the consolidated financial statements of Woodmen Valley Chapel and Subsidiary as of and for the years ended September 30, 2016 and 2015, and have issued our report thereon dated February 9, 2017, which expressed an unmodified opinion on those consolidated financial statements as a whole. Our audit was conducted for the purpose of forming an opinion on the consolidated financial statements as a whole. The consolidating statements of financial position and activities are presented for purposes of additional analysis of the consolidated financial statements rather than to present the financial position and results of operations of the individual organizations, and it is not a required part of the consolidated 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 consolidated financial statements. The consolidating information has been subjected to the auditing procedures applied in the audit of the consolidated financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the consolidated financial statements or to the consolidated 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 consolidated financial statements as a whole. Colorado Springs, Colorado February 9, 2017

19 Consolidating Statement of Financial Position September 30, 2016 Woodmen Center for Valley Strategic Consolidated Chapel Ministry Eliminations Total ASSETS: Current assets: Cash and cash equivalents $ 1,506,496 $ 459,248 $ - $ 1,965,744 Restricted cash 438, ,712-1,076,217 Accounts receivable and other assets 2,750, ,753 (2,834,444) 184,177 Property held for sale - 1,676,549-1,676,549 4,695,869 3,041,262 (2,834,444) 4,902,687 Payment in lieu of taxes - 596, ,206 Property held for investment purposes 190,700 1,588,351-1,779,051 Intercompany receivable 1,737,266 - (1,737,266) - JfcdYfhm UbX Yei]daYbhobYh 7,387,459 1,097,249-8,484,708 Total Assets $ 14,011,294 $ 6,323,068 $ (4,571,710) $ 15,762,652 LIABILITIES AND NET ASSETS: Current liabilities: Accounts payable $ 261,744 $ 2,769,534 $ (2,834,444) $ 196,834 Accrued expenses 410, , ,198 Current portion of bonds dumuv`yobyh 195, , , ,146 3,010,713 (2,834,444) 1,043,415 Intercompany payable - 1,737,266 (1,737,266) - Long-term portion of bonds dumuv`yobyh 5,599,975 3,508,004-9,107,979 6,467,121 8,255,983 (4,571,710) 10,151,394 Net assets: Unrestricted: Operating 4,129,893 (3,791,111) - 338,782 Board designated 1,000, ,000,000 Equity in property and Yei]daYbhobYh* dfcdyfhm \Y`X for sale, and property held for investment purposes 2,221,665 1,355,498-3,577,163 7,351,558 (2,435,613) - 4,915,945 Temporarily restricted 192, , ,313 7,544,173 (1,932,915) - 5,611,258 Total Liabilities and Net Assets $ 14,011,294 $ 6,323,068 $ (4,571,710) $ 15,762,

20 Consolidating Statement of Activities Year Ended September 30, 2016 Woodmen Center for Valley Strategic Consolidated Chapel Ministry Eliminations Total OPERATING: SUPPORT AND REVENUE: Tithes and offerings $ 10,679,413 $ 1,679,433 $ (1,666,242) $ 10,692,604 Ministry and other income 419, , ,889 Gain on sale of property held for sale - 231, ,236 Total Support and Revenue 11,099,367 2,122,604 (1,666,242) 11,555,729 EXPENSES: Salaries and benefits 5,125, ,490-5,770,136 Ministry 1,246,432 1,029,057-2,275,489 Office expense 1,731, ,571-2,253,720 Interest 438, , ,334 Depreciation 628,449 18, ,040 9,169,942 2,492,777-11,662,719 Grants to CSM: Impact ministries 1,494,004 - (1,494,004) - Salaries and benefits 172,238 - (172,238) - 1,666,242 - (1,666,242) - Total Expenses 10,836,184 2,492,777 (1,666,242) 11,662,719 Change in Net Assets from Operations 263,183 (370,173) - (106,990) NON-OPERATING: Reduction of intercompany receivable (payable) 500,000 (500,000) ,000 (500,000) - - Change in Net Assets (236,817) 129,827 - (106,990) Net Assets, Beginning of Year 7,780,990 (2,062,742) - 5,718,248 Net Assets, End of Year $ 7,544,173 $ (1,932,915) $ - $ 5,611,