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Stanfield + O'Dell CPAs & ADVISORS

John 3:16 Mission Financial Statements and Independent Auditor's Report September 30, 2018 and 2017

John 3:16 Mission

Contents

PAGE

Independent Auditor’s Report .......................................................................................................... 3

Financial Statements

Statements of Financial Position ............................................................................................... 4

Statements of Activities ............................................................................................................. 5

Statements of Functional Expenses ...................................................................................... 6 - 7

Statements of Cash Flows .......................................................................................................... 8

Notes to Financial Statements ............................................................................................. 9 - 15

Independent Auditor’s Report

To the Board of Directors

John 3:16 Mission

We have audited the financial statements of John 3:16 Mission, which comprise the statements of financial

position as of September 30, 2018 and 2017, and the related statements of activities, functional expenses and

cash flows for the years then ended, and the related notes to the financial statements.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance

with accounting principles generally accepted in the United States of America; this includes the design,

implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial

statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our

audits in accordance with auditing standards generally accepted in the United States of America. Those

standards require that we plan and perform the 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.

Opinion

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial

position of John 3:16 Mission as of September 30, 2018 and 2017, and the changes in net assets and its cash

flows for the years then ended in accordance with accounting principles generally accepted in the United States

of America.

Tulsa, Oklahoma

April 30, 2019

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John 3:16 Mission

Statements of Financial Position

September 30,

2018 2017Current assets

Cash and cash equivalents 4,253,468$ 3,441,006$ Current portion of pledges receivable - 100,000Prepaids and other current assets 76,535 76,642

Total current assets 4,330,003 3,617,648

Property and equipmentLand 1,174,953 1,174,953 Building and improvements 7,560,792 7,212,542 Computer equipment 434,345 418,705 Furniture and fixtures 898,461 786,299 Leasehold improvements 172,162 144,938 Vehicles 317,996 317,996

10,558,709 10,055,433 Less accumulated depreciation (2,885,488) (2,541,241)

Property and equipment, net 7,673,221 7,514,192

Other assets 21,298 21,080 Total assets 12,024,522$ 11,152,920$

Current liabilitiesAccounts payable 97,049$ 76,663$ Accrued liabilities 63,465 51,600

Total current liabilities 160,514 128,263

Mortgage payable 1,000,000 1,000,000 Total liabilities 1,160,514 1,128,263

Net assetsUnrestricted 9,807,049 9,368,989Temporarily restricted 1,056,959 655,668

Total net assets 10,864,008 10,024,657 Total liabilities and net assets 12,024,522$ 11,152,920$

The accompanying notes are an integral part of these financial statements.

Assets

Liabilities and Net Assets

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Years Ended September 30,

2018 2017Support and revenue:

Contributions 5,364,049$ 5,253,939$ Contributions-in kind 1,540,170 1,544,092 Net assets released from temporary restrictions 650,167 209,199 Fundraising events 177,818 150,565 Interest income 10,336 6,143 Rag sales 14,770 11,097 Other income 73,194 93,465

Total unrestricted support 7,830,504 7,268,500 Expenses

Program expenses:Summer enrichment 158,157 166,691 Women's ministry 31,558 172,786 Housekeeping 98,762 95,533 Kitchen 766,250 751,535 Family center 1,713,496 1,709,039 Men's program 729,894 735,836 Women's program 264,039 6,629 Fine arts program 47,572 41,822 Refuge 125,875 114,699 Shelter 603,576 635,185 Warehouse operations 316,391 294,829 Youth programs 329,177 302,404 BeeLoved trading 36,344 26,646

Total program expenses 5,221,091 5,053,634 Management and general 527,368 485,333Fundraising 1,643,985 1,629,085

Total expenses 7,392,444 7,168,052 Change in unrestricted net assets 438,060 100,448

Contributions 1,051,458 337,269Net assets released from temporary restrictions (650,167) (209,199)

Change in temporarily restricted net assets 401,291 128,070 Change in net assets 839,351 228,518

Net assetsBeginning of year 10,024,657 9,796,139End of year 10,864,008$ 10,024,657$


John 3:16 Mission

Statements of Activities

Change in Unrestricted Net Assets

Change in Temporarily Restricted Net Assets

John 3:16 Mission

Statement of Functional Expenses

Year Ended September 30, 2018

Summer Women's Family Men's Women's Fine Arts Warehouse Youth BeeLoved Total Management Fund-Enrichment Ministry Housekeeping Kitchen Center Program Program Program Refuge Shelter Operations Programs Trading Programs & General raising Total

Advertising -$ 308$ -$ 311$ 75,113$ 68,526$ 9,031$ -$ -$ -$ 2,623$ 11,772$ 13,008$ 180,692$ 16$ 122,429$ 303,137$ Benevolences - 22,148 - 249,134 1,088,059 108,977 439 - - 3,203 29,873 - - 1,501,833 65,607 35,941 1,603,381 Building & Grounds 261 - - - 25,475 - - - - 20,992 3,324 457 - 50,509 2,138 - 52,647 Conferences - 100 - - 4,065 1,330 - 3,635 - 3,178 750 2,657 - 15,715 19,824 7,125 42,664 Depreciation 13,943 2,034 - 42,460 78,302 13,776 191 - 27,763 88,507 33,275 - 372 300,623 43,624 - 344,247 Dues & Subscriptions - - - - 15 - - - - - - - - 15 16,098 2,488 18,601 Equipment Costs - - - 13,970 23,719 1,118 4,729 - 26,695 25,023 1,690 - - 96,944 6,172 75 103,191 Food - - - 269,210 - - - - - - - - - 269,210 - - 269,210 Gratuities & Allowances - - 15,468 7,470 322 98 525 - - - - - - 23,883 3,255 2,740 29,878 Insurance 6,392 136 4,311 17,785 52,412 51,420 19,907 4,127 2,708 29,283 20,972 22,352 - 231,805 14,803 38,033 284,641 Janitorial - - 4,085 - 1,625 - - - 780 4,533 2,356 - - 13,379 - - 13,379 Meals & Meetings 1,146 607 - - 5,490 796 114 - - 264 535 1,420 - 10,372 13,153 10,319 33,844 Medical - - - - - 1,639 - - - 1,189 - - - 2,828 - - 2,828 Miscellaneous 3,405 256 121 1,055 7,551 5,864 1,711 - 3,314 73,816 1,503 2,695 3,051 104,342 45,833 145,771 295,946 Office Supplies 5,907 3,232 23,980 22,614 7,841 10,481 4,667 2,812 9,096 16,924 3,695 4,635 19,341 135,225 19,794 7,505 162,524 Postage - - - - 7 104 149 - - 42 - 74 459 835 3,938 552,704 557,477 Printing - - - - 403 105 - - - - - (6) 113 615 674 32,037 33,326 Professional Services - - - - 6,647 - - - - - - - - 6,647 82,275 272,684 361,606 Recreation 29,488 1,022 - - - 10,835 1,442 - - 1,330 - 36,724 - 80,841 - - 80,841 Rent - - - - 165 - - - - - 35,702 - - 35,867 1,610 - 37,477 Revival Expense - - - - - - - - - 3,975 - - - 3,975 - - 3,975 Telephone - 69 - - 9,542 - 917 - 450 35,749 3,201 - - 49,928 5,123 14,987 70,038 Transportation 1,384 1,268 - 5,318 10,180 23,192 7,253 - 3,930 9,391 15,300 10,927 - 88,143 14,148 18,190 120,481 Utilities 3,596 1 - 26,622 24,093 28,927 6,842 3,596 13,283 40,407 8,003 13,079 - 168,449 7,265 7,219 182,933 Wages & Payroll Taxes 92,635 377 50,797 110,301 292,470 402,706 206,122 33,402 37,856 245,770 153,589 222,391 - 1,848,416 162,018 373,738 2,384,172 Total Expenses 158,157$ 31,558$ 98,762$ 766,250$ 1,713,496$ 729,894$ 264,039$ 47,572$ 125,875$ 603,576$ 316,391$ 329,177$ 36,344$ 5,221,091$ 527,368$ 1,643,985$ 7,392,444$


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John 3:16 Mission

Statement of Functional Expenses

Year Ended September 30, 2017

Summer Women's Family Men's Women's Fine Arts Warehouse Youth BeeLoved Total Management Fund-Enrichment Ministry Housekeeping Kitchen Center Program Program Program Refuge Shelter Operations Programs Trading Programs & General raising Total

Advertising -$ 9,127$ -$ -$ 64,340$ 60,999$ -$ -$ -$ -$ -$ 5,240$ -$ 139,706$ -$ 135,534$ 275,240$ Benevolences - 15,344 - 270,477 1,098,383 92,766 742 - - 1,403 27,225 - - 1,506,340 54,170 71,300 1,631,810 Building & Grounds - 254 - - 15,804 - - - - 39,659 972 1,766 - 58,455 2,782 - 61,237 Conferences - 1,061 - - 1,782 35 - - - 2,635 - 838 - 6,351 12,100 6,948 25,399 Depreciation 13,943 2,281 - 43,508 66,099 16,072 - - 12,259 85,922 8,517 - 706 249,307 44,823 - 294,130 Dues & Subscriptions - 30 - - - - - - - 1,000 - - - 1,030 17,954 3,951 22,935 Equipment Costs 81 893 - 14,445 24,941 1,002 - - 6,449 43,035 1,628 - - 92,474 6,460 - 98,934 Food - - - 246,559 - - - - - - - - - 246,559 - - 246,559 Gratuities & Allowances - - 12,076 5,927 876 217 - - - - - - - 19,096 4,000 75 23,171 Insurance 7,368 13,114 9,222 16,587 52,753 65,066 - 4,244 6,840 47,742 15,974 27,001 - 265,911 15,316 44,210 325,437 Janitorial - - 4,306 - 1,886 - - - 260 3,519 2,297 - - 12,268 - - 12,268 Meals & Meetings 1,188 215 - - 6,395 224 - - - 231 864 1,760 - 10,877 10,337 6,825 28,039 Medical - - - - - 1,658 - - - 979 - - - 2,637 - - 2,637 Miscellaneous 62 5,376 - 730 9,652 4,935 596 125 1,685 75,922 1,477 2,677 9,035 112,272 36,826 179,486 328,584 Office Supplies 13,107 2,473 22,961 20,279 6,241 9,720 2,114 2,829 5,710 15,451 6,860 4,134 15,944 127,823 22,391 3,660 153,874 Postage 54 23 - - - 774 - - - 159 - 13 470 1,493 2,653 709,920 714,066 Printing - 50 - - 95 - - - - - - 530 491 1,166 128 40,340 41,634 Professional Services - - - - 8,056 - - - - - 5,166 - - 13,222 90,103 68,279 171,604 Recreation 32,068 - - - - 18,038 1,170 - - 1,724 - 34,525 - 87,525 - - 87,525 Rent - - - - 1,344 - - - 1,186 - 35,002 - - 37,532 323 - 37,855 Revival Expense - - - - - - - - - 2,531 - - - 2,531 - - 2,531 Telephone - 727 - - 4,211 - - 211 10,245 26,001 2,401 211 - 44,007 12,321 22,301 78,629 Transportation 1,384 8,477 - 3,518 10,113 26,114 2,007 - 1,858 8,509 24,772 14,417 - 101,169 14,668 16,745 132,582 Utilities 3,128 2,144 - 20,014 22,243 22,158 - 3,550 25,292 27,792 7,344 12,070 - 145,735 - - 145,735 Wages & Payroll Taxes 94,308 111,197 46,968 109,491 313,825 416,058 - 30,863 42,915 250,971 154,330 197,222 - 1,768,148 137,978 319,511 2,225,637 Total Expenses 166,691$ 172,786$ 95,533$ 751,535$ 1,709,039$ 735,836$ 6,629$ 41,822$ 114,699$ 635,185$ 294,829$ 302,404$ 26,646$ 5,053,634$ 485,333$ 1,629,085$ 7,168,052$


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- 8 -

John 3:16 Mission

Statements of Cash Flows

Years Ended September 30,

2018 2017Cash flows from operating activities

Change in net assets 839,351$ 228,518$ Adjustments to reconcile change in net assets to net cash provided by (used in) operating activities:Depreciation expense 344,247 294,130 Contributions restricted to long-term purposes (966,556) (251,429) Changes in operating assets and liabilities:

(Increase) decrease in pledges receivable 100,000 (9,806) (Increase) decrease in prepaids and other current assets 107 (9,747) Increase in other assets (218) (331) Increase (decrease) in accounts payable 20,386 (22,573) Increase (decrease) in accrued liabilities 11,865 (34,954)

Net cash provided by operating activities 349,182 193,808

Cash flows from investing activitiesProceeds from sale of investments - 725,358 Purchases of property and equipment (503,276) (317,225)

Net cash provided by (used in) investing activities (503,276) 408,133

Cash flows from financing activitiesContributions restricted to long-term purposes 966,556 251,429

Increase in cash and cash equivalents 812,462 853,370

Cash and cash equivalents, beginning of year 3,441,006 2,587,636 Cash and cash equivalents, end of year 4,253,468$ 3,441,006$


John 3:16 Mission Notes to Financial Statements September 30, 2018 and 2017

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Note A – Organization and Vision

John 3:16 Mission (the Mission) is a corporation formed for the purposes of conducting worship

services, providing religious instruction, spiritual aid and assistance to needy and deserving persons, and

following Biblical teaching and preaching by disseminating the gospel and providing emergency

material assistance in the form of food, clothing and shelter to the homeless and at-risk population.

Incorporated under the State of Oklahoma in October 1952, the Mission has served thousands of

homeless men, women and children through the decades, helping them live a better life grounded in

Christian faith.

The Mission’s emergency shelter program provides a safe refuge from the street each night for up to

110 men. The Mission also serves around three hundred and fifty meals each day to Tulsa’s homeless

and at-risk, and to men enrolled in their faith-based recovery programs. Additionally, the Mission

operates a Family & Youth Center located in North Tulsa. The Family & Youth Center provides

material, spiritual and educational support to at-risk low-income families living in inner-city

environments.

The Mission is a nonprofit organization that is supported solely through private donations.

During 2016, the Mission created BeeLoved Trading (BeeLoved), a separate activity within the Mission

to provide vocational training for the homeless, recovering addicts, and under-resourced men, women,

youth, and children in the community. BeeLoved is a launching point for the Mission to create steady

forms of revenue streams in order to sustain the Mission’s growth and purpose within the community.

During 2018 and 2017, BeeLoved had revenue of $26,111 and $18,596, respectively, and incurred

expenses of $36,344 and $26,646, respectively.

Note B – Summary of Significant Accounting Policies

1. Basis of Accounting

The financial statements of the Mission have been prepared on the accrual basis of accounting and in

accordance with accounting standards generally accepted in the United States of America. The

significant accounting policies are described below to enhance the usefulness of these financial

statements to the reader.

2. Basis of Presentation

The Mission is required to report information regarding its financial position and activities according to

three classes of net assets:

Unrestricted Net Assets - Net assets that are not subject to donor-imposed stipulations.

Temporarily Restricted Net Assets - Net assets subject to donor-imposed stipulations that may or

will be met, either by actions of the Mission and/or the passage of time. When a restriction expires,

temporarily restricted net assets are reclassified to unrestricted net assets and reported in the

statement of activities as net assets released from restrictions.

Permanently Restricted Net Assets - Net assets continuously subject to donor-imposed stipulations.


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Note B – Summary of Significant Accounting Policies - Continued

3. Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles

requires management to make estimates and assumptions that affect certain reported amounts and

disclosures. Accordingly, actual results could differ from those estimates.

4. Revenue Recognition

Contributions received are recorded as increases in unrestricted, temporarily restricted or permanently

restricted net assets, depending on the existence and/or nature of any donor restrictions.

Service and sales revenues are recognized at the time the services are provided and the revenues are

earned.

5. Contributions

All donor-restricted contributions are reported as increases in temporarily or permanently restricted net

assets, depending on the nature of the restrictions. When a restriction expires, that is, when a stipulated

time restriction ends or purpose restriction is accomplished, temporarily restricted net assets are

reclassified to unrestricted net assets and reported in the statement of activities as net assets released

from 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.

A significant portion of the Mission’s support comes from contributions solicited through direct mail

appeals to lists of contributors which have been developed over many years. These contributions are

recognized as income when received.

The Mission reports gifts of land, buildings and equipment as unrestricted support unless explicit donor

stipulations specify how the donated assets must be used. Gifts of long-lived assets with explicit

restrictions that specify how the assets are to be used and gifts of cash or other assets that must be used

to acquire long-lived assets are reported as restricted support. Absent explicit donor stipulations about

how long those long-lived assets must be maintained, the Mission reports expirations of donor

restrictions when the donated or acquired long-lived assets are placed in service.

The Mission receives in-kind contributions of food, clothing, furniture, household items and various

miscellaneous items that are of use to the clients they serve. These items are generally distributed to

their clients on a next-day basis. The items received are valued based upon standards and practices

developed by the Evangelical Council for Financial Accountability (ECFA). Equal amounts of

contribution revenue and program expenses related to in-kind contributions of $1,540,170 and

$1,544,092 were recognized for the years ended September 30, 2018 and 2017, respectively.


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Note B – Summary of Significant Accounting Policies – Continued

6. Benefits provided to Donors at Special Events

The Mission conducts special fundraising events in which a portion of the gross proceeds paid by the

participants represents payment for the direct cost of benefits received by participants at the event.

Unless a verifiable, objective means exists to demonstrate otherwise, the market value of meals and

entertainment provided at special events is measured at the actual cost to the organization.

7. Cash and Cash Equivalents

The Mission considers all highly liquid investments with a maturity of three months or less when

purchased to be cash equivalents.

8. Accounts Receivable

Accounts receivable consists of advances to employees and health care premium reimbursements. The

Mission has historically not experienced significant uncollectible amounts and has provided no

allowance. The Mission typically does not charge interest or require collateral on receivables. Accounts

receivable are written off when deemed uncollectible.

9. Pledges Receivable

Contributions, absent any promises with unsatisfied conditions, are recognized as revenue in the period

received or promised. Pledges are recorded at their fair value at the time the promise is made and are

discounted to their present value. The Mission evaluated its outstanding pledges at September 30, 2017

and determined an allowance for uncollectible pledges was not considered necessary. There were no

pledges receivable recorded at September 30, 2018.

10. Property and Equipment

Acquisitions of property and equipment in excess of $500 are capitalized. Property and equipment are

carried at cost or, if donated, at the approximate fair value at the date of donation. Depreciation is

computed using primarily the straight-line method. Useful lives range from 3 to 15 years for most

technology, furniture, fixtures and equipment and 40 years for buildings. Expenditures for repairs and

maintenance are charged to operating expense as incurred.

The Mission periodically reviews the carrying amount of its capital assets whenever events or

circumstances provide evidence that suggests that the carrying amount may not be recoverable. If this

review indicates that capital assets may not be recoverable, the Mission reviews the expected

undiscounted future net operating cash flows from the use of these assets. If such assets are considered

impaired, the impairment in value is recognized as a charge in the statement of activities. The

impairment charge is the difference between the carrying amount of the capital assets and its fair value.

As of September 30, 2018 and 2017, the Mission does not believe there is any indication that the

carrying value of its capital assets has been impaired.


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Note B – Summary of Significant Accounting Policies – Continued

11. Income Taxes

The Mission is exempt from federal income taxes under Section 501(c)(3) of the Internal Revenue

Code. Accordingly, no provision for state or federal income taxes is necessary. The Mission is not

classified as a private foundation under Section 509(a) of the Internal Revenue Code. The Mission is

classified by the IRS as a church pursuant to Section 170(b)(1)(A)(i) of the Internal Revenue Code and

thus is exempt from mandatory filing of the IRS Form 990 annual return. Any federal income tax returns

filed by the Mission are subject to examination by the IRS and state taxing authorities, generally for three

years after they were filed. It is the Mission’s policy that penalties and interest assessed by income taxing

authorities, if any, are included in operating expenses. The Mission annually evaluates its various tax

positions and assesses the likelihood of these positions being upheld by examination with relevant tax

authorities.

12. Concentrations and Credit Risk

The Mission maintains several bank accounts. Accounts at each institution are insured by the Federal

Deposit Insurance Corporation (FDIC) up to $250,000. Cash balances exceeded the FDIC limits at

times during the year. In addition, the Mission maintains a collateralized deposit account related to the

sweep portion of its banking arrangement. The Mission has not experienced any losses in such accounts

and believes it is not exposed to any significant credit risk on its cash and cash equivalents.

13. Donated Services

The Mission receives donated services from a variety of unpaid volunteers, for which no amounts have

been reflected on the financial statements.

14. Functional Expenses

The Mission provides shelter and food for the homeless, overnight lodging, training for re-integration

with society, and family and youth ministries. The cost of providing the various programs and other

activities are summarized on a functional basis in the statement of activities. Accordingly, certain

facility costs have been allocated among the programs and support activities benefited. The allocation is

based upon the square footage occupied by each program and support activity.

15. Advertising Costs

Costs incurred for producing and communicating non-direct advertising are expensed when incurred.

Costs incurred for direct response advertising is capitalized and amortized over its estimated useful life.

Advertising costs are expensed as incurred. The Mission incurred advertising expenses of $303,137 and

$275,240 for the years ended September 30, 2018 and 2017, respectively.

16. Reclassification of Prior Year Amounts

Certain prior year amounts reported in the financial statements have been reclassified to conform to the

current year’s presentation. Such reclassifications had no effect on previously reported net assets or

change in net assets.


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Note B – Summary of Significant Accounting Policies - Continued

17. Subsequent Events

The Mission has reviewed subsequent events through April 30, 2019, the date which the financial

statements were available to be issued.

Note C – Investments

At the beginning of the 2017 fiscal year, the Mission disposed of investments being held by the Tulsa

Community Foundation totaling $725,358 and transferred such amount to a separate banking account,

therefore closing out this investing activity. However, the Mission does continue to hold a money

market operating fund account at the Tulsa Community Foundation, the balances of which were $97,528

and $97,209 at September 30, 2018 and 2017, respectively, which the Mission reports within cash and

cash equivalents.

Note D – Pledges Receivable

Recorded pledges receivable totaled $100,000 at September 30, 2017, and there were no pledges

receivable recorded as of September 30, 2018.

Note E – Conditional Pledge Receivable

During the year ended September 30, 2018, the Mission was awarded a contribution of $500,000 in

support of its capital campaign. The contribution is conditional upon the Mission achieving certain

fundraising goals. The revenue associated with this conditional pledge has not yet been included in the

accompanying financial statements because the condition had not been satisfied as of September 30,

2018.

Note F – Mortgage Payable

In April 2014, the Mission entered into a mortgage note payable to BOKF, N.A. pursuant to the Federal

Home Loan Bank of San Francisco’s Affordable Housing Program in the amount of $1,000,000;

collateralized by real estate. This note payable provided funds to be used toward the Mission’s Men’s

Center Expansion & Rehabilitation program.

The note is non-interest bearing and has a 15-year retention period, during which the Mission must

comply with the terms of the agreement. Upon expiration of the retention period without default by the

Mission, the note will be deemed satisfied, and the Mission will have no further obligations under it. In

the event of default, as defined in the loan agreement, the outstanding principal balance would become

immediately due and payable in full, at the option of the lender. As of September 30, 2018 and 2017,

the Mission believes it was in compliance with the terms of the agreement.


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Note G – Operating Leases

On January 8, 2018, the Mission renewed the lease agreement for the warehouse facility housing its

distribution center. The lease renewal became effective on March 1, 2018, and extends through

February 28, 2021. Rent expense for the warehouse for the years ended September 30, 2018 and 2017

was $35,702 and $35,002, respectively. Minimum future lease expenses under the lease are as follows:

2019 31,104$

2020 31,104

2021 12,960

75,168$

Year ending September 30,

Note H – Temporarily Restricted Net Assets

A summary of temporarily restricted net assets for the 2018 fiscal year is as follows:

Beginning Satisfaction End

of Year Contributions of of Year

Balance Restrictions Balance

Martial Arts -$ 125$ (125)$ -$

Youth Program - 400 (400) -

Summer Kids Camp - 84,377 (84,377) -

Capital Projects 655,668 966,556 (565,265) 1,056,959

Total 655,668$ 1,051,458$ (650,167)$ 1,056,959$

For the Year Ended September 30, 2018

Temporarily

Restricted

Activity

A summary of the activity in these programs for the 2017 fiscal year is as follows:

Beginning Satisfaction End

of Year Contributions of of Year

Balance Restrictions Balance

Mission Trips -$ 5,500$ (5,500)$ -$

Martial Arts - 595 (595) -

Summer Kids Camp - 79,745 (79,745) -

Capital Projects 527,598 251,429 (123,359) 655,668

Total 527,598$ 337,269$ (209,199)$ 655,668$

Restricted

Activity

For the Year Ended September 30, 2017

Temporarily


- 15 -

Note I – Benefit Plan

The Mission provides a 401(k) savings plan for employees who meet certain eligibility requirements.

The plan is funded solely by participant contributions, and no matching contribution is made by the

Mission.

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