EVERY CHILD MINISTRIES,:NC FINANC:AL STATEMENTS SEPTEMBER 30,2015 and 2014 ROBERT J RIPP&ASSOC:ATES FRANKFORT,:LLiNOIS TABLE OF CONTENTS Pace No INDEPENDENT AUDITORS'REPORT 1 REPORT OF MANAGEMENT 3 FINANCIAL STATEMENTS ４ Statements of Financial Position ５ Statements of Activities ６ Statements of Functional Expenses ８ Statements of Cash Flows ９ NOTES TO FINANCiAL STATEMENTS SUPPLEMENTARY INFORMATION ウ ′ Schedule of Checking and Savings Accounts ROBERT J. RIPP & ASSOCIATES Certified Public Accountant & Business Consultants 20646 Abbey Woods Ct. N. Suite 103. Frankfort, lL 60423. Telephone (815) 469-1800. Facsimile: (815) 469-0176 INDEPENDENT AUDITOR'S REPORT To the Board of Directors of Every Child Ministnes Hebron, lndiana We have audited the accompanying financial statements of Every Child Ministries (a nonprofit organization) which comprise the statements of financial position as of September, 2015 and 2014, 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 audits to obtain reasonable assurance about whether the financial statements are free of 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. ln 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 that we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion ln our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Every Child Ministries as of September 30, 2015 and 2014, and the changes in its net assets and cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America. Other Matter Our audits were conducted for the purpose of forming an opinion on the financial statements as a whole. The schedule of checking and savings accounts on page 17 is presented for purposes of additional analysis and is nol a required part of the financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to lhe auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. in our opinion, the information is fairly stated in all material respects in relation to the financial statements as a whole. RaAed /, RW & Aoauta*o March 4, 2016 2 驀 鱗 弼 ∬ 種 筆 塾 網 l零 響 翼 膜 珊 楊 壺 ‖[巽懸 F事 覆 deteFnining the nature, timing and extent of prOCedures necessary for expressing an i‐ ndependent opinion as to the fairness ofthe presentation ofthe financial statements Their reportis enclosed. The Orga轟ztton mJttans httmJ co腱dヽ 劇 d■ Sfittξ assurance that the assets are safeguarded: 1轟:鮮 層 :tp盤 朧 嘲 : 減an se準 d. Even an ::li::慧 鷲星ぶ篤貯」1:∬痣n:r:暫 官kよ警led.The)orrect deflciencies nernJ'ぎ cOntrd as they aresys悔 identifiё"scむ 柵」鰊躙¶織 鸞 蠍麟 鰊‖J below. lnternationa1 0ffice: 1. Clear‐ cut and b6ard‐ approved division oflabOr vvithin the finance depaFtment. 2. One person opens the ma‖ and records inconling gifts rnanualyl while another records them in a cornputer,as a double‐ check・ 3. 3oard‐ approved percentages for distribution Of Certain expenses are ut‖ izedi based on a tirne study by the adrninistration. 4. 8oard receives and approves monthly lnancial statements. 5, 8oard sets the salary of stafF and approves the annual budget Afttcan Fieldi l.Full lme inspector in Congo visls stes of proiectS tO Ve百 fy truthfulness of repotts. p。 mahねhhg翻 2.協認圏 騰軟壌∬富需薄潔態言瞥懲Tttξ壕甘撃露為輸亀 ３ 鋸認翼:潔雷盤‖認t謙 盤品nm。 咸httTl辮 ４ Field treasurers answer to the African 3oo 早轟 ∬蹴鷹:電1:a胃 鷺 international Directors,who visit each country every year for purposes oF evaluation. ５ Field treasurers' books are subiect to annual by lnternational Directors. Rebecca Crum Finance ltlanager 3 EVERY CHILD MINISTRIES,INC STATEMENTS OF FINANCIAL POSIT10N SEPTEMBER 30,2015 and 2014 ASSETS 2015 CURRENT ASSETS Cash and cash equivalents― cheCking(Schedule l) S 4,837 $ 4,424 Cash and cash equivalents― savings(Schedule 2) 370,280 388,862 Cash and cash equlvalents‐ Africa 13,085 38,884 TOTAL CURRENT ASSETS 388,202 432,170 PROPERTY AND EQUIPMENT Hebron bu‖ ding 193,765 193,765 Furniture&equipment 791682 79,682 Accumulated depreciation (132,09o (126,14⊃ NET PROPERTY AND EQU:PMENT 141,351 147,300 TOTAL ASSETS S 529,553 $ 579,470 LIABILITIES AND NET ASSETS CURRENT LIABILITIES Accounts payable S 3,864 S 2,497 TOTAL CURRENT LIABILITIES 3,864 2,497 TOTAL LIABILITIES 3,864 2,497 NET ASSETS UnrestHcted Undesignated 973 1,927 Equity in property and equipment 141,351 147,300 TOTAL UNRESTRICTED ASSETS 142,324 149,227 Temporanly Restncted 383,365 427,746 TOTAL NET ASSETS 525,689 576,973 TOTAL LIABILITIES AND NET ASSETS $ 529,553 $ 579,470 See accompanying notes and auditors' report 4 EVERY CHILD MINISTRIES,lNC STATEMENTS OF ACTIVITIES FOR THE YEARS ENDED SEPttEMBER 30,2015 and 2014 2015 2014 UNRESTRICTED NET ASSETS Unrestricted Revenues and Gains Contributions $ 1,301,719 $ 1,449,819 lnterest & investment income 68 77 Total Unrestricted Revenues 1,301,787 1,449:896 EXPENSES Program Services Education, training, relief & development 1:181,599 1,345,805 32,323 Ministry to constituencY 34,871 Support Activities 49,127 Management & general 63,687 31,111 Fund-raising 28,533 Total ExPenses 1,308,690 1,458,366 Change in Unrestricted Net Assets 0,900 o,47Q TEMPORARILY RESTRICTED NET ASSETS Temporarily Restricted Revenues and Gains 53,380 Contributions Total丁 empOranly Restncted Revenues 53,380 Net assets released from restrictions 4,381) “ Change in Temporanly RestHCted Net Assets 4,381) 53,380 “ 1,28o 44,910 (Decrease)lnCrease in Net Assets “ NET ASSETS,BEGlNNING OF YEAR 576,973 532,063 NET ASSETS,END OF YEAR $ 525,689 $ 576,973 See accompanying notes and auditors'report 5 EVERY CHILD MIN:STRIES STATEMENT OF FUNCT10NAL EXPENSES FOR THE YEAR ENDED SEPTEMBER 30,2015 Program Services Supporting Activities Educa'on, Training,Relief& Ministry To Management and Deve:opment Consltuency Total General Fund Raising Total 35,160 Salaries s 86,303 23,973 s l10,276 s 14,384 S 159,820 3,465 1,417 15,750 Health and pension 8,505 2,363 10,868 38,625 15,801 175,570 Total Compensation s 94,808 26,336 121,144 105 107 212 Advertising Africa Mission: 46,804 Missionaries - Ghana 46,804 46,804 65,125 Haven of Hope Academy - Ghana 65,125 65,125 20,262 Public Schools - Ghana 20,262 20,262 50,416 Slaves & Trafficking - Ghana 50,416 50,416 118,806 Haven of Hope Home - Ghana 118,806 118,806 8,617 Street Children - Ghana 8,617 8,617 768 OVC Sponsorship - Ghana 768 768 305 Child Rescue - Ghana 305 305 60,209 Christian Education & Evangelism - DRC 60,209 60,209 12,199 Street Children - DRC 12,199 12,199 7,650 OVC Sponsorship - DRC 7,650 7,650 224,715 Missionaries - Uganda 224,715 224,715 7,553 Christian Education & Evangelism - Uganda 7,553 7,553 38,088 Afayo Project - Uganda 38,088 38,088 138,278 Way Home for Orphans - Uganda 138,278 138,278 219,051 Sponsorship - Uganda 219,051 219,051 OVC 423 Africa Teaching Websites - All 423 423 1,191 Lean Water Proiects 1,191 1,191 802 48,894 lnternational Director - Travel 47,098 994 48,092 11,706 Africa Mission - Other 11,706 11,706 30 30 Bank and exchange fees 2,560 127 3,001 Conventions 314 1,309 536 5,949 Depreciation 3,212 4,104 2,160 2,185 Missionaries 25 4,500 Mission Network News 4,500 650 1,723 2,373 Office supplies 1,754 2,156 3,910 Organ member dues 282 354 636 Other expenses 11,451 11,451 Outside services 1,758 7,991 Payroll taxes 4,315 1,199 5,514 96 96 Phone and email