Annual Report 2009 - Armenian Missionary Association of America

For the prior fiscal year, included in Armenia Buildings & Improvements above was $2,191,914 expended for the renovation of the new
Armenia headquarters and $1,224,642 for the purchase of land for the Avedisian School.
Due to the prohibitive cost of obtaining hazard insurance on AMAA properties in Armenia, AMAA has adopted a policy of self-insurance.
While self-insurance involves modest risk, Management feels it is a cost-effective alternative and due to the geographic diversity of the
properties, it does not believe any single catastrophic event will have a material impact on the financial position of the AMAA.
Note 8 – Custodial Accounts
Custodial accounts represent contributions and other inflows of assets held by the AMAA for safekeeping and invested for other organizations,
per their requests. A summary of the custodial accounts at market value follows:
31-Jul-10 31-Jul-09
Armenian Evangelical Schools of California $ 463,648 $ 406,710
Armenian Evangelical World Council 116,111 105,060
Gertmenian School 65,611 97,767
Haigazian University End of Service Indemnity 836,235 772,427
Merdinian School Building Fund 93,259 236,698
Total $1,574,864 $1,613,662
Note 9 – Unrestricted Net Assets
Unrestricted net assets are composed of the following:
31-Jul-10 31-Jul-09
Cash and investments available for operating expenditures $ 4,087,613 $ 3,976,484
Inter-fund loans (3,739,923) (3,551,923)
Fixed assets 10,587,240 10,476,095
Total Unrestricted Net Assets $10,934,930 $10,900,656
Note 10 – Temporarily Restricted Net Assets
Temporarily restricted net assets are restricted to:
31-Jul-10 31-Jul-09
Satisfaction of program objectives, such as Child Education,
Relief, Milk Fund, Evangelism, etc. $7,623,566 $6,915,803
Pledges receivable 910,797 1,715,313
Expiration of time restrictions 1,007,285 1,006,311
Total Temporarily Restricted Net Assets $9,541,648 $9,637,427
Note 11 – Permanently Restricted Net Assets
Permanently restricted net assets are restricted to:
31-Jul-10 31-Jul-09
Endowments
- Income from which is expendable to support the general
mission and service ministry of the AMAA $ 63,736,213 $ 60,959,473
- Inter-fund loans 3,739,923 3,551,923
- Partial income to be added to original gift 4,997,458 4,348,940
Trust assets 29,669,763 26,397,414
Total Permanently Restricted Net Assets $102,143,357 $95,257,750
Note 12 – Split-Interest Agreements
Certain split-interest agreements exist represented by endowment or trust funds whose income is distributed between the AMAA and others.
The amounts are not material to the financial statements taken as a whole.
Note 13 – Pension Plan
During fiscal year 2003, the AMAA formed an employee pension plan under Internal Revenue Code Section 401(k). Under this plan, after
the first year of employment, any employee may elect to defer a portion of his/her wages and receive partial matching by the AMAA. The
portion the AMAA matches depends on the percentage of wages the employee elects to defer. The maximum amount the AMAA matches
is 1.67% of base earnings.
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