St. Andrew's Mission, Inc. Annual Financial Statements

Transcription

1 Annual Financial Statements As of and for the Years Then Ended December 31, 2015 BRUCE HARRELL & COMPANY CERTIFIED PUBLIC ACCOUNTANTS A Professional Accounting Corporation

2 Annual Financial Statements As of and for the Year Ended December 31, 2015 (with 2013 summarized comparative information) TABLE OF CONTENTS Page Independent Auditor s Report... 3 Basic Financial Statements: Statements of Financial Position... 5 Statements of Activities... 6 Statement of Functional Expenses... 7 Statements of Cash Flows

3 Bruce C. Harrell, CPA Dale H. Jones, CPA Michael P Estay, CPA Kristi U. Bergeron, CPA Jessica H. Jones, CPA Brandy W. Garcia, CPA Denise R. LeTard, CPA INTERNET MEMBERS American Institute of CPAs Society of Louisiana CPAs BRUCE HARRELL and COMPANY CERTIFIED PUBLIC ACCOUNTANTS A Professional Accounting Corporation 109 West Minnesota Park Park Place Suite 7 Hammond, LA VOICE: (985) FAX: (985) KENTWOOD OFFICE P.O. Box Avenue G Kentwood, LA VOICE: (985) FAX: (985) To the Board of Directors of the St. Andrew's Mission, Inc. McComb, Mississippi Independent Auditor s Report We have audited the accompanying financial statements of St. Andrew's Mission, Inc. (a nonprofit organization), which comprise the statements of financial position as of December 31, 2015, and the related statements of activities, functional expenses, 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. 3

4 BRUCE HARRELL & CO. CERTIFIED PUBLIC ACCOUNTANTS A Professional Accounting Corporation We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of St. Andrew's Mission, Inc. as of December 31, 2015, and the changes in its net assets and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America. Report on Summarized Comparative Information We have previously audited the St. Andrew's Mission, Inc. s 2014 financial statements, and our report dated July 17, 2015, expressed an unmodified opinion on those audited financial statements In our opinion, the summarized comparative information presented herein as of and for the year ended December 31, 2014, is consistent, in all material respects, with the audited financial statements from which it has been derived. Bruce Harrell & Company, CPAs A Professional Accounting Corporation Kentwood, Louisiana July 15,

5 Statements of Financial Position As of December 31, Assets Current Assets: Cash and Cash Equivalents $ 71,369 $ 117,075 Investments 10,395 10,395 Receivables, Net : Contributions - 2,725 Other 2,581 Other - Temporarily Restricted - (33) Temporarily Restricted Cash 42,863 39,430 Total Current Assets 127, ,592 Property, Plant, and Equipment Land 234, ,993 Construction in Progress 23,340 23,340 Property, Plant and Equipment, Net 1,978,570 1,984,112 Total Property, Plant, and Equipment 2,236,903 2,242,445 Total Assets $ 2,364,111 $ 2,412,037 Liabilities and Net Assets Liabilities Current Liabilities (Payable From Current Assets): Accounts Payable $ 27,594 $ 25,898 Accounts Payable to Agent - From Restricted 21,000 16,500 Line of Credit 121,663 40,000 Other Accrued Payables 4,583 11,567 Other Accrued Payables - From Restricted 3, Unearned Revenue 30,150 21,100 Long Term Debt - Current Portion 19,442 18,593 Total Current Liabilities (Payable From Current Assets) 228, ,990 Long Term Liabilities: Long Term Debt 56,065 75,507 Total Long Term Liabilities 56,065 75,507 Total Liabilities 284, ,497 Net Assets Unrestricted 2,071,611 2,194,657 Temporarily Restricted - - Permanently Restricted 8,330 7,883 Total Net Assets 2,079,941 2,202,540 Total Liabilities and Net Assets $ 2,364,111 $ 2,412,037 The accompanying notes are an integral part of this statement. 5

6 Statements of Activities For the year ended December 31, 2015 Temporarily Permanently Totals Unrestricted Restricted Restricted Operating Revenues Public Support Contributions $ 94,195 $ 169 $ - $ 94,364 $ 97,021 Donated Property ,000 Grants Private 21, ,075 21,540 Special Events 62, ,355 71,115 Service and Fee Revenue Thrift Stores 508, , , ,759 Senior Center 33,198 33,198 34,437 Other 3, ,388 13,744 Investment Income 1, ,801 2,314 Other Revenues Reimbursements 2, ,467 1,269 Rental 19, ,110 14,610 Insurance Proceeds ,481 Other ,017 Net Assets released from restrictions 61,446 (122,893) 61, Total Operating Revenues 808, ,916 61,447 1,049,345 1,138,307 Operating Expenses Program Services 759, , , ,039 Management and General 165, , ,639 Fund Raising 7, ,070 6,155 Total Operating Expenses 932, ,916-1,110, ,833 Change in Net Assets from Operations (123,046) - 61,447 (61,599) 184,474 Contributions and Transfers Contributions from Agents Distributions to Agents - - (61,000) (61,000) (46,500) Total Contributions and Transfers - - (61,000) (61,000) (46,500) Change in Net Assets (123,046) (122,599) 137,974 Total Net Assets, Beginning 2,194,657-7,883 2,202,540 2,060,625 Prior Period Adjustments ,941 Total Net Assets, Beginning Adjusted 2,194,657-7,883 2,202,540 2,064,566 Total Net Assets, Ending $ 2,071,611 $ - $ 8,330 $ 2,079,941 $ 2,202,540 The accompanying notes are an integral part of this statement. 6

7 Statement of Functional Expenses For the year ended December 31, 2015 Thrift Stores fully operated by S.A.M. Thrift Stores Edwards Street Thrift Store Senior Center Minor Programs Total Program Services Management and General Fund Raising Total Expenses Salaries and Wages $ 221,972 97,380 45,682 $ 136,475 $ 501,509 $ 89,127 $ - $ 590,636 Payroll Taxes 16,877 6,634 3,495 10,441 37, ,170 Advertising ,155-6,407 Contractual Services 415 1,096-31,462 32, ,973 Depreciation 10,006-18,026 29,490 57,522 7,809-65,331 Food Purchases ,368 18,614 30, ,233 Insurance ,672-29,672 Interest 5,470-2,985-8, ,207 Ministry Support Payments to Others ,490 15, ,490 Professional Fees ,915 1,214 8,684 14,064-22,748 Rent 36,000 36, , ,153 Repairs and Maintenance ,926 6,944 11,353 1,178-12,531 Special Events ,050 7,070 10,270 Staff Training Supplies 7,720 4,790 3,400 6,067 21,977 2,645-24,622 Telephone 3,069 1,387 3,770 5,429 13, ,338 Utilities 41,027 12,980 10,982 30,425 95, ,552 Vehicle Expenses 3,721 10, ,727 3,763-18,490 Other 6,202 6, ,295 15,060 4,092-19,152 Total Expenses $ 352,524 $ 178,916 $ 112,377 $ 294,840 $ 938,657 $ 165,217 $ 7,070 $ 1,110,944 The accompanying notes are an integral part of this statement. 7

8 Broadway Building Rentals St. Andrew's Mission, Inc. Statement of Functional Expenses For the year ended December 31, 2015 Fig Tree Ministries Minor Programs The Mission The Food Ministry The Mill Free Medical Clinic Total Minor Programs Expenses Salaries and Wages $ - $ - $ 9,850 $ 43,591 $ 49,878 $ 33,156 $ 136,475 Payroll Taxes ,335 3,816 2,536 10,441 Contractual Services ,462-31,462 Depreciation 3,027-5,658-19,576 1,229 29,490 Food Purchases - - 1,117 17, ,614 Insurance Interest Ministry Support Payments to Others , ,490 Professional Fees ,214 Rent Repairs and Maintenance 575-1,019 1,123 3, ,944 Supplies , ,558 6,067 Telephone ,505 2,532 5,429 Utilities 1, ,848 8,001 14,110 2,614 30,425 Vehicle Expenses Other ,295 Total Expenses $ 5,328 $ 1,758 $ 40,205 $ 76,602 $ 125,327 $ 45,619 $ 294,840 The accompanying notes are an integral part of this statement. 8

9 Statements of Cash Flows For the year ended December 31, 2015 (with 2013 summarized comparative information) Cash Flows From Operating Activities Change in Net Assets $ (122,599) $ 137,974 Adjustments to reconcile change in net assets to net cash provided by operating activities Depreciation 65,331 43,937 Donated Property and Assets - (30,000) Changes in operating assets and liabilities (Increase) decrease in receivables 111 (3,001) Increase (decrease) in accounts payable 6,196 6,276 Increase (decrease) in accrued payables (3,643) 283 Increase (decrease) in unearned revenue 9,050 12,320 Net Cash Provided by (Used by) Operating Activities (45,554) 167,789 Cash Flows From Investing Activities Purchases of property (59,789) (221,460) Net Cash (Used) by Investing Activities (59,789) (221,460) Cash Flows From Financing Activities Permanently restricted contributions - - Proceeds from borrowings 81,663 40,000 Repayment of debt (18,593) (17,785) Net Cash Provided by (Used) by Financing Activities 63,070 22,215 Net Cash Increase (Decrease) in Cash and Cash Equivalents (42,273) (31,456) Cash and Cash Equivalents, Beginning of Year 156, ,961 Cash and Cash Equivalents, End of Year $ 114,232 $ 156,505 Supplemental disclosures of cash flow information Cash paid during the year for interest $ 9,207 $ 6,246 The accompanying notes are an integral part of this statement. 9

10 Introduction The St. Andrew's Mission, Inc. (the Organization) is a non-profit Christian community development agency centered in Southwestern Mississippi that works in partnership with families from low-income neighborhoods to improve their quality of life and empower people to become self-supportive. The Organization is a member of the United Methodist Conference of Mississippi, which provides funding and financing flexibility to continue its goals. St. Andrew's Mission, Inc. operates the following programs to accomplish its mission: The Mission Community Program promotes the prevention of drug and alcohol use and the spread of HIV by providing health services through funding the services of a nurse and other personnel to care for and educate patients. St. Andrew s Mission operates three thrift stores located in McComb and Brookhaven, Mississippi and Vidalia, Louisiana. A fourth store was opened in March of 2012 in Hattiesburg, Mississippi through a collaborative arrangement with Edwards Street Fellowship Center, Inc. whereby each entity shares in the expenses and revenues and risks of operations. Proceeds are distributed at a fifty percent share to each separate entity. See Note 10 for further information. The stores provide employment in the community and funds to materialize the vision of the Mission through other programs. All items sold are obtained through donations. FIG (Filling in the Gaps) Tree Ministries provides direct subsidies or supplies to individuals for emergency needs for food, medicine, and housing in the form of utility or rental assistance. The Food Ministry distributes food donated by local restaurants, businesses and individuals to those over 65 years of age or the disabled by operating a food pantry to serve Pike and Amite counties. The pantry is open 5 days a week and distributes food eight days a month and serves over 350 individuals, including shut-ins. St. Andrew s Mission verifies eligibility criteria to comply with the United States Department of Agriculture food purchase program requirements to assist the Organization in financing the food costs to operate the program. Education Center provides housing for the Free Medical Clinic. The clinic operates 5 days a week with the assistance of 8 volunteer doctors. The Mission House has been converted to a transitional housing center for homeless men in the McComb area. The Organization rents out space in 3 locations on Broadway Street to raise funds for other St. Andrew s Mission programs. The old Methodist church parsonage was donated by the United Methodist in Plans are to renovate the building for transitional housing as the budget permits. 10

11 The Senior Center was completed in June 2011, on property donated in 2007, to meet the needs of the community. The Senior Center provides a meeting place for community events, services, educational and life and health affirming activities for seniors surrounding McComb, Mississippi. The administrative offices of the Mission are located at this facility. Beginning in 2014, the name was changed to The Activity Center, and serves individuals from the age of 45 and above. 1. Summary of Significant Accounting Policies A. Restrictions on Net Assets Revenues, expenses, gains and losses are classified based on the existence or absence of donor-imposed restrictions. Accordingly, the net assets of the Organization and changes therein are classified and reported as follows: Unrestricted net assets Net assets that are not subject to any donor-imposed stipulations. Temporarily restricted net assets Net assets subject to donor-imposed restrictions on their use that may be met either by actions of the Organization or the passage of time. Permanently restricted net assets Net assets subject to donor-imposed or other legal restrictions requiring that the principal be maintained permanently by the Organization. Generally, the donors permit the Organization to use all or part of the income earned for either general or donor-specified purposes. B. Comparative Information The financial statements are presented with certain prior year summarized comparative information. Such information does not include sufficient detail to constitute a presentation in conformity with generally accepted accounting principles. Accordingly, such information should be read in conjunction with the Organization s financial statements for the year ended December 31, 2014, from which the summarized information was derived. C. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements. Estimates and assumptions may also affect disclosure of contingent assets and liabilities at the date of the financial statement and the reported amounts of revenues and expenses. Actual results could differ from management s estimates. D. Cash and Cash Equivalents The Organization s cash and cash equivalents are considered to be cash on hand, demand deposits, time deposits, and short-term investments with original maturities of three months or less from the date of acquisition. 11

12 E. Investments Investments are reported at fair value. Investment income classified as operating revenue consists of interest and dividend income on investments and gains approved for use in operations. All other realized and unrealized gains or losses are classified as nonoperating activity and are available to support operations in future years and to offset potential market declines. Investments classified as current are available for operations in the next fiscal year. Various methods and assumptions were used to estimate the fair value of each class of financial instruments. Cash and cash equivalents are valued at their carrying amount due to their short maturities. Investments are reported at fair value based on quoted market prices. Debt is valued at rates currently available to the Organization for issuances with similar terms and remaining maturities. F. Inventories and Prepaid Items All inventories, when held, are valued at cost using the first-in/first-out method. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items. G. Property and Equipment Purchases of land, buildings, and other property having a unit cost per established guidelines and a useful life of three or more years are capitalized at cost. Donated assets are capitalized at the estimated fair value at date of receipt. Interest expense incurred during a period of construction, less related interest income earned on proceeds of tax-exempt borrowings, is capitalized. Property under capital leases is amortized over the lease term. Any gain or loss on sale of land, buildings and other property is reported as other revenues on the statement of activities. The Organization maintains a threshold level of $500 or more for capitalization of property and equipment. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. All capitalized assets, other than land, are depreciated using the straight-line method over their estimated useful lives ranging from three to ten years. H. Revenue Recognition Contributions, which include unconditional promises to give (pledges) are recognized as revenues in the period received or promised. Conditional contributions are recorded when the conditions have been met. Contributions are considered to be unrestricted unless specifically restricted by the donor. The Organization reports contributions in the temporarily or permanently restricted net asset class if they are received with donor stipulations as to their use. When a donor restriction expires, that is, when a stipulated time restriction ends or purpose restriction is accomplished, temporarily restricted net assets are released and reclassified to unrestricted net assets in the consolidated statement of activities. Donorrestricted contributions are initially reported in the temporarily restricted net asset class, even if it is anticipated such restrictions will be met in the current reporting period. 12

13 Product or service revenue is generally recognized upon delivery of the product or services to the customer. Gains and losses on investments and other assets and liabilities are reported as increases and decreases in unrestricted net assets unless their use is restricted by explicit donor stipulation or by law. I. Contributed Services and Materials Contributed services are reported at fair value in the financial statements for voluntary donations of services when those services (1) create or enhance non-financial assets or (2) require specialized skills provided by individuals possessing those skills and are services which would be typically purchased if not provided by donation. There are several volunteers, who donate time in the organization s programs and supporting services, however, none meet the criteria for recording in the financial statements. Donated materials are sold at the thrift stores and are recorded as revenues at the exit value of the donated materials at the time of the sale. Donated properties are recorded at their fair value at the date of the gift. The Organization does not imply time restrictions for gifts of long-lived assets. As a result, in the absence of donor-imposed restrictions, gifts of long-lived assets are reported as unrestricted revenue. J. Income Taxes The St. Andrew's Mission, Inc. is a not-for-profit Organization. The Organization is exempt from federal income taxes under Section 501(c)(3) of the Internal Revenue Code, except on net income derived from unrelated business activities. The last three year s tax returns remain subject to examination by the Internal Revenue Service. 2. Cash and Cash Equivalents Cash and cash equivalents were as follows at December 31, 2015 and Demand Deposits $ 74,820 $ 73,511 Short-term Investment Classified as Cash 39,412 82,994 $ 114,232 $ 156,505 The Organization held Demand Deposits at five banks at December 31, 2015 and Funds did not exceed Federal Deposit Insurance limits. The Short-term Investment Classified as Cash is an investment in the general endowment fund of the Mississippi United Methodist Foundation in the amount of $39,412 at December 31, 2015 and $82,994 at December 31, This investment account is not insured by the FDIC, and St. Andrew s Mission, Inc. does not have a policy for requiring collateral or other security to support the deposit. 13

14 3. Revenue and Receivables The primary revenues for the Organization come from the following sources in the following approximate percentages. Sources of funding were as at December 31, 2015 and Self Generated Fundraising $ 62, % $ 71, % Investment earnings 1, % 1, % Painting and Lawn Care Services % % Rental 37, % 37, % Thrift Store Sales 810, % 702, % Insurance Proceeds % 145, % Membership Sales at Senior Center 15, % 12, % Other 4, % 19, % Total Self Generated Funds 931, % 989, % Public Support Donations 60, % 66, % Donated Property % 30, % Grants to fund: Hurricane Recovery % % Reimbursed Costs from UMC 2, % 1, % United Methodist Conference of Mississippi 33, % 30, % United Way 21, % 20, % Total Public Support 117, % 148, % Total Sources of Funding $ 1,049, % $ 1,138, % The work produced and services provided through the use of these funds can be seen through the statement of functional expenses by program on page 7 and a description of each program can be found in the introduction on pages 10 and 11 of this report. Fund raising revenue of $62,355 to fundraising expenses of $7,070 had an expense ratio of 8.8 percent. There were no joint fundraising costs shared with other organizations. The Mission held one main fundraising event, Shuffle to the Chefs, in

15 4. Property and Equipment The cost and accumulated depreciation of land, buildings, and other property were as follows at December 31, 2015 and Land $ 234,993 $ 234,993 Buildings and improvements 2,132,410 2,074,422 Machinery and Equipment 24,527 24,527 Vehicles 30,500 30,500 Leasehold Improvements 126, ,850 Total cost of assets placed in service 2,549,081 2,489,292 Less accumulated depreciation (335,518) (270,187) Construction in Progress 23,340 23,340 Property and equipment, net $ 2,236,903 $ 2,242,445 St. Andrew's Mission, Inc. uses the straight line method over the useful lives of its depreciable assets. Depreciation expense for the years December 31, 2015 and 2014 are $65,331 and $43,937. There were no construction improvements during the current year; however, the Parsonage House donated in 2014 remains in Construction in Progress at $23,340 until major improvements are made in order to occupy the building. 5. Investments St. Andrew s Mission received 315 shares of a regional bank stock through a donation during These shares are currently expected to be held for the receipt of dividends as available for sale securities valued at $10,395 at December 31, The stock was valued under ASC level two. Based on quoted prices for similar assets through the bank, the stock was valued at the date of the 2011 donation since the bank is not publically traded. The stock was obtained in December 2011 and did not have a significant change in value before year end. This was the only investment held. 6. Debt On October 18, 2005, the Organization purchased a tract of land and the building located on the land on Pennsylvania Avenue in McComb, Mississippi for $30,000 and financed it for fifteen years through the Mississippi Annual Conference of the United Methodist Church Incorporated, a related party. The Organization placed the building and land up for collateral on the loan. In 2009, the Organization purchased a commercial building to house its growing McComb thrift store for $165,000 and financed it for twenty years through the previous private owner of the building. The building and land are placed as collateral on the loan. 15

16 Debt consists of the following at December 31, 2015 and 2014 Note Payable: $ 30,000 Mortgage Payable Dated 10/18/2005 due in annual installments of principal and interest of $ 2,000 through 1/30/2020 interest at 4.00% Note Payable: $ 165,000 on McComb Thrift Store Building Dated 6/23/2009 due in monthly installments of principal and interest of $ 1,700 through 7/1/2019 interest at 5.00% $ 8,417 67,090 $ 10,417 Total long term debt 75,507 94,100 Less current portion (19,442) (18,593) Debt, noncurrent portion $ 56,065 $ 75,507 The Organization also renews a line of credit each year with First Bank for ongoing renovations of donated properties. The Line of Credit balance at December 31, 2014 is $121,663. Scheduled maturities for long term obligations at December 31, 2015 are as follows: 83,683 Years ending December 31: Bendat Building Principal Bendat Building Interest McComb Thrift Store Principal McComb Thrift Store Interest Total Principal Total Interest $ 2,000 $ 337 $ 17,442 $ 2,958 $ 19,442 $ 3,295 2, ,334 2,066 20,334 2,323 2, ,272 1,128 21,272 1,305 2, , , Total $ 8,417 $ 885 $ 67,090 $ 6,358 $ 75,507 $ 7,243 Expected interest, yet to be paid, over the remaining notes as of December 31, 2015 was $7, Commitments and Contingencies The Organization receives support for its programs of providing assistance to those in need through contributions and grants from other nonprofit agencies and public entities. These funding sources are subject to limitations including time, funding levels, and changes in law that could affect the level of funding received. At December 31, 2015 and 2014, the Organization was not involved in any outstanding litigation or claims. 8. Leases St. Andrew s Mission, Inc. has commercial leases for two thrift store locations, as follows: a five (5) year commercial lease commencing on June 1, 2014 for the Vidalia Thrift Store, and an one (1) year lease commencing on October 1, 2010, now on a monthly renewal, for the Brookhaven Thrift Store. St. Andrew's Mission Inc. has no leases with related parties. 16

17 Hattiesburg Thrift Store is now in a five (5) year optional renewal period for their lease commencing on October 1, The period expires August 31, The lease commitment as of December 31, 2015: Total Vidalia Thrift Store $ 23,250 25,400 $ 26,400 $ 11,000 $ - $ 86,050 Hattiesburg Thrift Store 41,400 41,400 41,400 41,400 27, ,200 Total Lease Obligation $ 64,650 $ 66,800 $ 67,800 $ 52,400 $ 27,600 $ 279,250 The 2015 rental expense by store is: Vidalia Thrift Store $21,300 Brookhaven Thrift Store $14,700 Total Rental Expense $36,000. The Hattiesburg Thrift Store rental expense is $36, Related Parties St. Andrew's Mission, Inc. receives a portion of its funding as shown in footnote 3 on page 14 and has a note payable to the Mississippi Annual Conference of the United Methodist Church Incorporated, as shown in footnote 6 on page 15 and 16. The Conference is considered to be a related party. 10. Collaborative Arrangement During the year 2012, St. Andrew's Mission, Inc. entered into a collaborative arrangement with another nonprofit corporation, Edwards Street Fellowship Center, Inc., to share risk in operating a thrift store in Hattiesburg, Mississippi for charitable purposes. Each entity contributed $10,000 into a bank account and shares equally in the revenues and expenses of the thrift store. The accounting records are maintained by St. Andrew s Mission. All of the employees of the thrift store are employees of St. Andrew s Mission. Each separate nonprofit entity adds value through volunteers and resources to request donated items. Cash is distributed equally to each entity at a fifty percent ratio based on the profits of the thrift store. Both entities share equally in maintaining cash and assets to maintain operations. Edwards Street Fellowship Center, Inc. is responsible for the day-to-day operations under the direction of St. Andrew s Mission. St. Andrew s Mission is responsible for all accounting, bookkeeping, Federal and State tax compliance, acquiring and maintaining insurance, and other such related matters. 17

18 The following is a recap of financial information for the Hattiesburg Thrift Store as part of the collaborative arrangement. Condensed Statement of Financial Position 2015 Assets Cash $ 42,988 Receivables - Leasehold Improvements 1,800 Total Assets 44,788 Liabilities Payables - Current To Nonrelated Parties 3,673 To St. Andrew's Mission 5,000 To Edwards Street Fellowship Center 21,000 Payables - Long Term - Total Liabilities 29,673 Net Assets Unrestricted Principal - Active Participant SAM 7,558 Permanently Restricted Principal - Agent Active Participant ESF 7,558 Total Net Assets $ 15,115 Condensed Statement of Activities Revenue Public Support $ 169 Sales and Service Fee 301,640 Total Revenue 301,809 Operating Expenses Employee Expenses 104,014 Rent 36,765 Utilities 12,980 Other Expenses 25,157 Total Operating Expenses 178,916 Change in Net Assets Prior to Contributions and Distributions 122,893 Contributions and Distributions Capital Contributions Principal Active Participant - SAM - Agent Active Participant - ESF - Total Capital Contributions - Distributions Principal Active Participant - SAM (61,000) Agent Active Participant - ESF (61,000) Total Capital Distributions (122,000) Change in Net Assets 893 Total Net Assets. Beginning 14,222 Prior Period Adjustments - Total Net Assets, Beginning 14,222 Total Net Assets, Ending $ 15,115 18

19 11. Subsequent Events Subsequent events have been evaluated by management through July 15, 2016, the date the financial statements were available to be issued and these financial statements considered subsequent events through such date. No events were noted that require recording or disclosure in the financial statements for the fiscal year ending December 31,