Annual Report 2009 - Armenian Missionary Association of America

More documents

Recommendations

Info

Armenian Missionary Association of America, Inc. Notes to the Financial Statements July 31, 2010 Note 1 – Organization The Armenian Missionary Association of America, Inc. (AMAA) was founded in Worcester, Mass. in 1918 and incorporated on October 21, 1920, as a non-profit organization in the state of New York. On November 11, 1972, it relocated and continued its operations in New Jersey. The AMAA also maintains a regional office in Armenia. The primary objective of the AMAA is to serve as the missionary arm of the Armenian Evangelical Churches and the Armenian evangelical people in the United States and abroad. The AMAA supports programs in 24 countries, primarily in Armenia and the Middle East. In addition to general-purpose grants and contributions, the AMAA accepts endowment and trust funds with designated purposes and administers them. Note 2 – Summary of Significant Accounting Policies Basis of Presentation The accompanying financial statements of the AMAA have been prepared in conformity with accounting principles generally accepted in the United States of America. They include the consolidated assets, liabilities, net assets, and financial activities of the AMAA. All inter-fund transactions for the fiscal years and resulting balances as of July 31, 2010 and 2009 have been eliminated as part of the consolidation. The significant accounting policies followed are described below to enhance the usefulness of the financial statements to the reader. Contributions Unrestricted net assets represent the part of the net assets of the AMAA that is neither permanently restricted nor temporarily restricted by donor-imposed stipulations. All such contributions are considered to be available as unrestricted support. If a restriction is fulfilled in the same fiscal year in which the contribution is received, the contribution is reported as unrestricted. The Board designates large contributions received without donor restrictions for specific purposes in accordance with AMAA by-laws. Temporarily restricted net assets represent the part of net assets resulting from contributions and other inflows of assets whose use by the AMAA is limited by donor-imposed stipulations that either expire by passage of time or can be fulfilled and removed by actions of the AMAA pursuant to those stipulations. When a stipulated time restriction ends, or purpose restriction is accomplished, temporarily restricted net assets are classified and reported in the statement of activities as net assets released from restriction. Permanently restricted net assets represent the part of net assets resulting from contributions and other inflows of assets whose use by the AMAA is limited by donor-imposed stipulations that neither expire by passage of time nor can be fulfilled or otherwise removed by actions of the AMAA. These gift instruments require the principal be invested in perpetuity and the income be used in part, or all, for specific purposes contained in the gift instrument. Pledges Receivable The AMAA accounts for pledges receivable in accordance with the recommendations of the Financial Accounting Standards Board Accounting Standards Codification Topic 958, “Not-For-Profit Entities.” Accordingly, pledged contributions over $25,000 are recognized when the donor makes an unconditional promise to give to the AMAA. Pledges receivable over one year are discounted to present value. Contributions that are restricted by the donor are reported as increases in unrestricted net assets if the restrictions are anticipated to expire in the fiscal year in which the contributions are recognized. All other 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, temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions. The AMAA uses the allowance method to determine uncollectible pledges receivable. The allowance is based on prior years experience and management’s analysis of specific promises made. Other Receivables Interest receivable consists primarily of accrued interest receivable on loans and securities. Loans receivable consists primarily of various loans provided to enable Armenian Evangelical churches and schools to make expenditures related to their non-profit purposes. Loans are generally made at favorable interest rates. Allowances for doubtful accounts consist of allowances established for receivables deemed uncollectible. 20
Investments The AMAA adopted Financial Accounting Standards Board Accounting Standards Codification Subtopic 958-320, “Not-For-Profit Entities – Investments – Debt and Equity Securities” beginning with fiscal years ended July 31, 1997. Investments of the AMAA, including certain real estate properties, are reported in the financial statements at fair market value. Cash equivalents consist of money market funds. Corporate stocks are invested in marketable securities of trust or higher quality. In calculating realized gains/losses for specific stocks, the fair market value as of the prior year-end is used as the cost basis. Bonds & notes consist of obligations of federal agencies and corporations with maturity dates ranging from zero to 23 years. Bond mutual funds are liquid and marketable and therefore are assigned a zero maturity date in the aggregate. Gains or losses arising from the sale or disposition of investments and other non-cash assets are accounted for primarily as an increase or decrease in restricted net assets. For selected accounts, however, 25% of the gains are allocated as unrestricted and 75% are considered restricted, or are capitalized to the account. None of the AMAA’s endowment or trust funds requires that a specific level of assets, measured at fair market value, be maintained. Fair value of financial instruments The carrying amounts of financial instruments, including cash, cash equivalents, pledges receivable, other receivables, accounts payable and accrued expenses, and custodial accounts approximates fair value due to the short maturity of these instruments. Endowment Funds The AMAA’s endowment consists of approximately 2,200 individual donor-restricted funds established for a variety of purposes. As required by accounting principles generally accepted in the United States of America, net assets associated with endowment funds, are classified and reported based on the existence or absence of donor-imposed restrictions. The AMAA has interpreted the State Prudent Management of Institutional Funds Act (SPMIFA) as requiring the preservation of the fair value of the original gift as of the gift date of the donor-restricted endowment funds and additional contributions to those funds, absent explicit donor stipulations to the contrary. As permitted by donor-imposition, the remaining portion of the donor-restricted endowment fund that is not classified in permanently restricted net assets is classified as unrestricted net assets, if expended within the next year, or temporarily restricted net assets until those amounts are appropriated for expenditure by the AMAA in a manner consistent with the standard of prudence prescribed by SPMIFA. The AMAA has adopted investment and spending policies for endowment assets that attempt to provide a predictable stream of funding to programs supported by its endowment while seeking to maintain the original corpus of the endowment assets. Endowment assets include those assets of donor-restricted funds that the organization must hold in perpetuity or for a donor-specified period. Under this policy, as approved by the Board of Directors, the endowment assets are invested in a manner that is intended to produce results that meet or exceed the yield results of accepted market indices while assuming a moderate level of investment risk. Actual returns in any given year will vary. To satisfy its long-term rate-of-return objectives, the AMAA relies on a total return strategy in which investment returns are achieved through both capital appreciation (realized and unrealized) and current yield (interest and dividends). The AMAA targets a diversified asset allocation to achieve its long-term return objectives within prudent risk constraints. The AMAA has a policy of appropriating for distribution each year the total income earned on the funds in the previous fiscal year permitted to be expended in accordance with donor-imposed stipulations. The AMAA’s objective is to maintain the purchasing power of the endowment assets held in perpetuity or for a specified term as well as to provide additional real growth through new gifts and investment return. Real Estate Investments Real estate investments have been acquired through donations or by the expenditure of unrestricted or permanently restricted assets. These investments are primarily in mission and service facilities in various parts of the world and are maintained for the furtherance of the wider mission of the AMAA. These investments also include income-producing commercial properties in California, which were received as donations. Fixed Assets and Depreciation Fixed assets (land, buildings and equipment) are valued at cost less accumulated depreciation. Depreciation is calculated using the straight-line method with estimated useful lives of the respective assets varying from three to thirty years. Purchases of fixed assets costing over $25,000 with a useful life greater than one year are capitalized in the financial statements. 21
Page 1 and 2: Armenian Missionary Association of
Page 3 and 4: President’s Message The AMAA had
Page 5 and 6: AMAA At A Glance The Armenian Missi
Page 7 and 8: Churches and Missions The AMAA was
Page 9 and 10: Capital Fundraising Campaign Phase
Page 11 and 12: Our Communities Around the World GR
Page 13 and 14: Summer camps for all ages went well
Page 22 and 23: Historical Collections and Other No
Page 24 and 25: Note 5 - Fair Value Disclosures Fai
Page 26 and 27: For the prior fiscal year, included
Page 28 and 29: Endowment Funds and Other Financial
Page 30 and 31: GENERAL ENDOWMENT FUNDS AT JULY 31,
Page 40 and 41: ARMENIA RELIEF ENDOWMENT FUNDS AT J
Page 42 and 43: HAIGAZIAN UNIVERSITY AT JULY 31, 20
Page 44 and 45: MINISTERS’/MINISTERS’ WIDOWS PE
Page 46 and 47: How to Give Stewardship of God’s
Page 48: AMAA God’s Work For Our Times 31

Annual Report 2009 - Armenian Missionary Association of America

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?