2009-2011 Financial Statements

8/3/2019 2009-2011 Financial Statements

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GENESIS WORLD MISSION, INC.(a nonprofit organization)FINANCIAL STATEMENTS

Years EndedMay 31, 2011 and 2010


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Harris & Co. PLLC

TABLE OF CONTENTS

PageIndependent Auditors' Report 3Statements of Financial Position 4Statements of Activities 5

Statements of Functional Expenses 7Statements of Cash Flows 11Notes to Financial Statements 12


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Helping bur chents make sense of a changing and complex worldHarris & CO . PLlC

CERTIFIED 0vaLic ACCOUNTANTS

INDEPENDENT AUDITORS' REPORT

To the Board of DirectorsGenesis World Mission, Inc.Boise, Idaho

We have audited the accompanying statements of financial position of GenesisWorld Mission, Inc. (a nonprofit organization) as of May 31, 2011 and 2010, and therelated statements of activities, functional expenses, and cash flows for the years thenended. These financial statements are the responsibHity of the Organization'smanagement. Our responsibility is to express an opinion on these financial statementsbased on our audits.

We conducted our audits in accordance with auditing standards generally acceptedin the United States of America. Those standards require that we plan and perform theaudit to obtain reasonable assurance about whether the financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidence supportingthe amounts and disclosures in the financial statements. An audit also includes assessingthe accounting principles used and significant estimates made by management, as well asevaluating the overall financial statement presentation. We believe that our audits providea reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of Genesis World Mission, Inc., as of May 31,2011 and 2010, and the changes in its net assets and its cash flows for the years thenended in conformity with accounting principles generally accepted in the United States ofAmerica.

Meridian, IdahoSeptember 20, 2011

22HSI S_Bonito Way, Ste 100Meridian, Idaho 83642208 333-8965208 333-8966 ~,"Xwww.harriscpas.com
http://www.harriscpas.com/http://www.harriscpas.com/


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Harris & Co. PLLCGENESIS WORLD MISSION, INC.

STATEMENTS OF FINANCIAL POSITIONMay 31

ASSETS2011 2010

CURRENT ASSETSCash and cash equivalents $ 124,711 $ 41,511Pledges receivable 33,333 51,516Grants receivable 62,539 42,487Inventory 68,817 47,540Prepaid expenses 879 17,457Total Current Assets 290,279 200,511

PROPERTY AND EQUIPMENT, net 566,453 537,758Total Assets $ 856,732 $ 738,269

LIABILITIES AND NET ASSETSCURRENT LIABILITIESAccounts payable $ 3,063 $ 1,323Accrued liabilities 28,272 20,844Current portion of long-term debt 3,800 18,900Total Current Liabilities 35,135 41,067

LONG-TERM DEBT, net of current portion 203,716 191,993Total Liabilities 238,851 233,060

NET ASSETSUnrestricted 537,352 466,994Temporarily restricted 80,529 38,215

Total Net Assets 617,881 505,209Total Liabilities and Net Assets $ 856,732 $ 738,269

See notes to financial statements.4


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STATEMENTS OFACTIVITIESFor the Years Ended May 31

2011Temporarily

Unrestricted Restricted TotalREVENUE AND OTHER SUPPORTFoundations and corporate grants $ 197,068 $ 96,988 $ 294,056State grantsPledges and contributions 213,498 213,498Fundraising events 58,542 58,542Contract revenue 49,950 49,950In-kind contributions 412,071 412,071Interest income 128 128Other 9,085 9,085Total Revenue 940,342 96,988 1,037,330

Net assets released from restrictions 54,674 (54,674)Total Revenue and Other Support 995,016 42,314 1,037,330

EXPENSESProgram servicesGarden City Community Clinic 556,947 556,947Volunteer Physicians Network 54,697 54,697International Medical Missions 133,982 133,982Total Program Services 745,626 0 745,626

Support servicesAdministration 66,511 66,511Fundraising 112,521 112,521Total Support Services 179,032 0 179,032Total Expenses 924,658 0 924,658

Increase (Decrease) in Net Assets 70,358 42,314 112,672NET ASSETS, Beginning of Year 466,994 38,215 505,209NET ASSETS, End of Year $ 537,352 $ 80,529 $ 617,881



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2010

TemporarilyUnrestricted Restricted Total$ 127,656 $ $ 127,65621,034 21,034218,662 218,66241,813 41,81377,407 77,407

424,060 424,060541 54119 19911,192 911,19232,827 (32,827)944,019 (32,827) 911,192

581,230 581,23081,516 81,516119.747 119,747782,493 782,49373,162 73,16273,657 73,657146,819 146,819929,312 929,31214,707 (32,827) (18,120)452,287 71,042 523,329

$ 466,994 $ 38,215 $ 505,209


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STATEMENTS OF FUNCTIONAL EXPENSESFor the Year Ended May 31, 2011

Garden City Volunteer InternationalCommunity Physicians Medical

Clinic Network MissionsPersonnel salaries and wages $ 328,103 $ 38,687 $ 39,055Payroll taxes 15,732 3,564 3,679Other employee benefits 1,363 2,655 1,323Professional fees 121,587 1,239 1,995Travel 52 228 49,424Special events 174 93 22Direct international 31,430Medications and supplies 25,630 15Depreciation and amortization 18,366 1,954 1,409Occupancy 16,479 1,932 1,130Office expenses 8,196 1,584 1,324Interest expense 10,138 1,125 1,035Insurance 4,971 378 473Information technology 3,155 382 227Conferences and meetings 1,784 289 662Advertising 290 587 11Other 927 768Total Functional Expenses $ 556,947 ~ 54,697 $ 133,982



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Administration Fundraising Total$ 53,694 $ 54,963 $ 514,502

3,393 3,422 29,790713 679 6,733939 1,411 127,17114 15 49,733

40,816 41,10531,43025,645

2,127 975 24,8311,741 858 22,1401,414 6,420 18,938983 468 13,749323 288 6,433302 134 4,200566 669 3,97055 1,040 1,983247 363 2,305

$ 66,511 2 112,521 $ 924,658


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STATEMENTS OF FUNCTIONAL EXPENSES (Continued)For the Year Ended May 31,2010

Garden City Volunteer InternationalCommunity Physicians Medical

Clinic Network MissionsPersonnel salaries and wages $ 285,134 $ 46,895 $ 33,148Payroll taxes 13,259 3,825 3,286Other employee benefits 136 2,792 84Professional fees 116,474 15,733 3,336Travel 1,715 193 17,894Special eventsDirect international 55,222Medications and supplies 101,900Depreciation and amortization 16,288 1,248 1,140Occupancy 20,901 2,942 2,053Office expenses 5,877 1,307 1,041Interest expense 11,469 1,395 1,085Insurance 3,844 360 227Information technology 1,259 163 422Conferences and meetings 2,214 359 559Advertising 701 4,292 238Other 59 12 12Total Functional Expenses $ 581,230 $ 81,516 $ 119747



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Administration Fundraising Total$ 56,706 $ 23,546 $ 445,4293,118 2,294 25,782454 360 3,8262,574 5,351 143,468412 125 20,339

30,930 30,93055,222373 102,2731,649 491 20,8162,714 666 29,2761,999 6,540 16,7641,085 465 15,499281 120 4,832658 324 2,826761 840 4,733264 1,320 6,815114 285 482

$ 73,162 $ 73657 $ 929,312


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Harris & Co. PLLCGENESIS WORLD MISSION, INC.STATEMENTS OF CASH FLOWSFor the Years Ended May 31

2011 2010CASH FLOWS FROM OPERATING ACTIVITIESIncrease (decrease) in net assets $ 112,672 $ (18,120)Adjustments to reconcile increase (decrease) innet assets to net cash provided by (used in)operating activities:Depreciation and amortization 24,831 20,816Changes in operating assets and liabilities:Pledges receivable 18,183 (15,767)Grants receivable (20,052) (21,510)Inventory (21,277) (2,270)Prepaid expenses 16,578 (17,270)Accounts payable 1,740 (3,963)Accrued liabilities 7,428 3,576Net Cash Provided by (Used in)Operating Activities 140,103 (54,508)

CASH FLOWS FROM INVESTING ACTIVITIESPurchase of equipment (53,526) (1,800)

CASH FLOWS FROM FINANCING ACTIVITIESPrincipal payments on long-term debt (3,377) (17,726)

Net Increase (Decrease) in Cash andCash Equivalents 83,200 (74,034)

CASH AND CASH EQUIVALENTS, Beginning of Year 41,511 115,545CASH AND CASH EQUIVALENTS, End of Year $ 124 711 $ 41 511SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION

Cash paid during the year for interest ~ 13,749 $ 15,499



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Harris & Co. PLLCGENESIS WORLD MISSION, INC.NOTES TO FINANCIAL STATEMENTS

May 31, 2011 and 2010

NOTE A- SIGNIFICANT ACCOUNTING POLICIESNature of OrganizationGenesis World Mission, Inc ("Organization") is a non-profit, faith based organizationproviding medical, physical and spiritual care for the underserved. The Organizationoperates a medical and dental clinic in Garden City, Idaho and manages a two-countyVolunteer Physicians Network for specialists. It also works to provide sustainablehumanitarian medical aid internationally and operates a warehouse to supply both theclinic and international projects. Internationally, Genesis works with in-country partners todevelop community based health care solutions and has two active projects operating inKenya, including a medical clinic and a Total Health Village.Basis of AccountingThe accompanying financial statements have been prepared on the accrual basis ofaccounting in accordance with accounting principles generally accepted in the UnitedStates of America.Basis of Presentation

Financial statement presentation follows the recommendations of the Financial AccountingBoard Accounting Standards Codification 958, Not-for-Profit Entities (FASB ASC 958).Under FASB ASC 958, the Organization is required to report information regarding itsfinancial position and activities according to three classes of net assets: unrestricted netassets, temporarily restricted net assets, and permanently restricted net assets.Use of EstimatesThe Organization uses estimates and assumptions in preparing financial statements. Thoseestimates and assumptions affect the reported amounts of assets and liabilities, thedisclosure of contingent assets and liabilities, and reported revenues and expenses.Significant estimates used in preparing these financial statements include those assumedin determining the collectability of grants and contributions receivable, the fair value ofdonated goods and services, and the estimated useful lives of property and equipment. Itis at least reasonably possible that the significant estimates used will change within thenext year.

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NOTES TO FINANCIAL STATEMENTS (Continued)May 31,2011 and 2010

NOTE A- SIGNIFICANT ACCOUNTING POLICIES (Continued)Cash and Cash EquivalentsThe Organization considers its short-term, highly liquid investments purchased with amaturity of three months or less to be cash equivalents.Pledges and Grants ReceivablePledges and grants receivable are stated at unpaid balances, less an allowance foruncollectible amounts. Balances are non-interest bearing. The allowance is based onexperience. It is the Organization's policy to charge off uncollectible receivables whenmanagement determines the receivable will not be collected. There was no allowance atMay 31, 2011 and 2010 as all amounts are deemed collectible.InventoriesPharmaceutical and medical supplies are either donated or purchased. 'As of May 31,2011 and 2010, the value of purchased and donated pharmaceutical and medical supplieshas been capitalized as supplied inventory at the lower of cost or market.Property and EquipmentProperty and equipment is stated at cost, or, if donated, at the estimated fair market valueat the date of donation. All equipment with a fair market value in excess of $1,000 and auseful life of at least three years is capitalized. Depreciation is computed using thestraight-line method over the estimated useful lives of the related assets, which rangefrom three to thirty years.Fair ValueThe Organization has applied FASB Ase 820, Fair Value Measurements and Disclosures,for financial assets and liabilities. This standard defines fair values and establishes ahierarchy for reporting the reliability of input measurements and used to assess fair valuefor all assets and liabilities. FASB ASe 820 defines fair value as the selling price thatwould be received for an asset, .or paid to transfer a liability, in the principal or mostadvantageous market on the measurement date. The hierarchy established prioritizes fairvalue measurements based on the types of inputs used and the valuation technique.

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NOTE A- SIGNIFICANT ACCOUNTING POLICIES (Continued)Fair Value (Continued)Certain financial instruments are carried at cost on the statement of financial position,which approximates fair value due to their short term, highly liquid nature. Theseinstruments include cash and cash equivalents, accounts payable and other currentliabilities.Patient Service RevenueThe Organization operates the Garden City Community Clinic and has a policy of providingfree medical care to patients who do not have third-party coverage. Therefore, no revenuefrom medical services is recorded. Eligibility is based on household size and income basedon 200% of the Federal Poverty Guidelines.ContributionsContributions received are recorded as unrestricted, temporarily restricted, or permanentlyrestricted support, depending on the existence and\or nature of any donor restrictions. Alldonor-restricted contributions are reported as an increase in temporarily or permanentlyrestricted net assets, depending on the nature of the restriction. When a restriction expires(that is, when a stipulated time restriction ends or purpose of restriction is accomplished),temporarily restricted net assets are reclassified to unrestricted net assets and reported inthe statement of activities as net assets released from restrictions. Contributions andgrants received with temporary restrictions that are met in the same reporting period arereported as unrestricted support and increase unrestricted net assets.Contributed ServicesDonated services are reported as contributions when the services (a) create or enhancenonfinancial assets or (b) would be purchased if they had not been provided bycontribution, require specialized skills and are provided by individuals possessing thoseskilis. Donated services of approxi mately $340, 109 and $31 5,622 have been ref lected atfair value in the financial statements for the years ended May 31, 2011 and 2010,respect iveIy. Donated services cons ist primariIy of pharmacy, administrative, medicaI, andcounseling services.

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NOTE A- SIGNIFICANT ACCOUNTING POLICIES (Continued)in-kind ContributionsThe Organization receives in-kind contributions consisting of equipment and medicalsupplies. In-kind contributions are recognized as revenue when received and asexpenditures when the resources are consumed.Functional Allocation of ExpensesThe costs of providing the various programs and other activities have been summarized ona functional basis in the statement of activities. Accordingly, certain costs have beenallocated among the programs and supporting services benefited. General andadministration expenses include those expenses that are not directly identifiable with anyother specific function but provide for the overall support and direction of theOrganization.Income TaxesThe Organization is a not-for-profit organization that is exempt from income taxes underSection 501 (c)(3) of the Internal Revenue Code and comparable state law. Accordingly, noprovision for income taxes is made in the financial statements.Uncertain Tax PositionsThe Organization applied the new accounting for uncertainty in income taxes guidance onJune 1, 2009. The application of that guidance did not affect retained earnings or incometax expense. The Organization continually evaluates expiring statutes of 'limitations, audits,proposed settlements, changes in tax law, and new authoritative rulings.The Organization files income tax returns in the U.S. federal jurisdiction. TheOrganization's income tax returns are no longer subject to U.S. federal examinations bytaxing auth0rlties for years before 2007. The 0rganization' s tax retu rns are not currentlyunder examination in federal jurisdictions.Subsequent EventsThe Organization has evaluated subsequent events through September 20, 2011, which isthe date the financial statements were available to be issued.

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Harris & Co. PLlCGENESIS WORLD MISSION, INC.

NOTES TO FINANCIAL STATEMENTS (Continued)May 31, 2011 and 2010

NOTE B- PROPERTYAND EQUIPMENTAt May 31, property and equipment consisted of the following:

2011LandBuilding and improvementsFurniture and equipment

$ 85,000482,68794,851

Less accumulated depreciation662,53896,085

Total Property and Equipment $ 566.453

NOTE C - LONG-TERM DEBT

2010$ 85,000482,68759,341627,02889,270

$ 537,758

During 2006, the Organization acquired the building and associated land they werepreviously leasing for a purchase price of $425,000. Unscheduled principal payments weremade on the note from funds provided by a grant from the Laura Moore CunninghamFoundation. During the year ended May 31, 2011, the remaining balance of $209,543was refinanced. Terms of the note are as follows:

2011Note payable to the Ashley's, $1,350 monthly,including interest at 6.0% per annum, maturingNovember 2020 with a balloon payment in theamount of $161,082. Secured by the Garden CityCommunity Clinic property. $ 207,516 $Less current portion 3.800

$

2010

210,89318,900

203.71 6 ~$="",l1~9~1.9~9~3Maturities of long-term debt as of May 31, 2011 are as follows:

2012 $ 3,8002013 4,1002014 4,3002015 4.6002016 4,900Thereafter 185,816

$ 207,51616


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Harris & Co. PLlCGENESIS WORLD MISSION, INC.

NOTES TO FINANCIAL STATEMENTS (Continued)May 31, 2011 and 2010

NOTE D - TEMPORARILY RESTRICTED NET ASSETSAt May 31, temporarily restricted net assets are available for the fol.lowing purposes:

2011 2010Garden City Community ClinicVolunteer Physicians NetworkInternational Medical Missions

$ 73,5271,9985,004

$ 1,594o

36,621

$ 80,529 $ 38,215

NOTE E - OPERATING LEASESThe Organization leases office equipment under a 5-year operating lease expiring May2012. The lease requires minimum monthly payments of $187, Hent expense under theoperating lease was $2,334 and $2,357 for the years ended May 31, 2011 and 2010,respectively. The Organization has $2,118 in future minimum payments required under alloperating leases due in 2012.

NOTE F - RELATED PARTY TRANSACTIONSThe Organization has included the value of professional services donated by boardmembers in the financial statements. The value of these services, as determined bymanagement, was $5,148 and $7,035 for the years ended May 31, 2011 and 2010,respective Iy.The Organization also accepts cash and in-kind donations from board members,employees, and their families. Total cash donations received from related parties duringthe year ended May 31, 2011 was $67,309. No in-kind donations were recorded during2011. The Organization received cash and in-kind donations totaling $31,330 and $1,551during the year ended May 31, 2010.

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2009-2011 Financial Statements

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