2009 Audited Financial Statements

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FINANCIAL STATEMENTS

MAY 31, 2009

GENESIS WORLD MISSION, INC.



GENESIS WORLD MISSION, INC.

Table of Contents

Page

INDEPENDENT AUDITORS’ REPORT 1

FINANCIAL STATEMENTS

Statement of Financial Position 2Statement of Activities 4Statement of Functional Expenses 5Statement of Cash Flows 7Notes to Financial Statements 8



1

MembersMorris W. Grigg, CPA American Institute of Certified Public AccountantsThomas J. Ritter, MS, CPA Idaho Society of Certified Public AccountantsDuane Brash, CPAJohn J. Mahler, CPA

INDEPENDENT AUDITORS’ REPORT

To the Board of DirectorsGenesis World Mission, Inc.

Garden City, Idaho

We have audited the accompanying statement of financial position of Genesis World Mission, Inc. (an Idahononprofit organization) as of May 31, 2009 and the related statements of activities, functional expenses and cash

flows for the year then ended. These financial statements are the responsibility of the Organization’smanagement. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit 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 thefinancial statements are free of material misstatement. An audit includes consideration of internal control overfinancial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not forthe purpose of expressing an opinion on the effectiveness of the Organization’s internal control over financialreporting. Accordingly, we do not express such an opinion. An audit includes examining, on a test basis,evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing theaccounting principles used and significant estimates made by management, as well as evaluating the overallfinancial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financialposition of Genesis World Mission, Inc. as of May 31, 2009, and the changes in its net assets and its cash flowsfor the years then ended are in conformity with accounting principles generally accepted in the United States of America.

December 4, 2009Boise, Idaho



GENESIS WORLD MISSION, INC.STATEMENT OF FINANCIAL POSITION

MAY 31, 2009

See accompanying notes to financial statements 2

ASSETS

CURRENT ASSETS

Cash and cash equivalents $ 115,545Prepaid expenses 187

Contractual receivables 1,966

Pledges receivable 33,783

Grants receivable 20,977

Pharmacy and supply inventory 45,270

Total current assets 217,728

PROPERTY AND EQUIPMENT, at cost

Land 85,000

Building and improvements 482,687Equipment and software 57,541

Less accumulated depreciation (68,454)

556,774

$ 774,502



GENESIS WORLD MISSION, INC.STATEMENT OF FINANCIAL POSITION

MAY 31, 2009


LIABILITIES AND NET ASSETS

CURRENT LIABILITIES

Accounts payable $ 5,286

Accrued liabilities 17,268

Note payable, current portion 16,010

Total current liabilities 38,564

LONG-TERM LIABILITIES

Note payable, less current portion 212,609

251,173

NET ASSETS

Unrestricted 452,287

Temporarily restricted 71,042

Permanently restricted -

523,329

$ 774,502



GENESIS WORLD MISSION, INC.STATEMENT OF ACTIVITIES

YEAR ENDED MAY 31, 2009


Temporarily

Unrestricted Restricted Total

REVENUES, GAINS AND OTHER SUPPORT

Foundation and corporate grants $ 235,350 $ 56,000 $ 291,350

State grants - 13,472 13,472

Contributions and support 87,762 112,966 200,728

Fundraising events 50,247 17,362 67,609

Interest income 356 - 356

Contracted revenue 28,051 - 28,051

Other 85 - 85

In-kind labor 336,964 - 336,964

In-kind materials and supplies 127,938 - 127,938Net assets released from restrictions

Temporarily restricted 168,593 (168,593) -

Total revenues, gains and

other support 1,035,346 31,207 1,066,553

EXPENSES

Garden City Community Clinic

Medical program 562,481 - 562,481

Dental program 59,845 - 59,845

Total Garden City Community Clinic 622,326 - 622,326

Volunteer Physicians Network 59,929 - 59,929

International programs 114,113 - 114,113

Administration 75,689 - 75,689

Fundraising 73,357 - 73,357

Total expenses 945,414 - 945,414

CHANGE IN NET ASSETS 89,932 31,207 121,139

NET ASSETS, BEGINNING OF YEAR, as restated 362,355 39,835 402,190

NET ASSETS, END OF YEAR $ 452,287 $ 71,042 $ 523,329



GENESIS WORLD MISSION, INC.STATEMENT OF FUNCTIONAL EXPENSES



Garden Garden Total

City City Garden

Community Community City Volunteer InternationalClinic Clinic Community Physicians Medical

(Medical) (Dental) Clinic Network Missions

Personnel $ 315,803 $ 31,912 $ 347,715 $ 45,413 $ 17,074

Contractual services 83,676 397 84,073 3,540 -

Utilities and building maintenance 14,274 4,321 18,595 2,353 2,248

Interest expense - - - - -

Professional fees 3,160 295 3,455 3,649 1,357

Direct international - - - - 77,343

Medications and supplies 126,599 12,788 139,387 340 2,254Fundraising events -

Depreciation and amortization 8,587 7,444 16,031 1,387 1,398

Insurance 2,046 455 2,501 263 567

Postage and delivery 834 117 951 637 517

Printing and reproduction 2,226 369 2,595 657 626

Advertising 635 277 912 750 10

Travel and entertainment 2,694 172 2,866 601 7,858

Repairs, maintenance and

minor equipment 1,119 1,286 2,405 226 393

Other 828 12 840 113 2,468

$ 562,481 $ 59,845 $ 622,326 $ 59,929 $ 114,113



GENESIS WORLD MISSION, INC.STATEMENT OF FUNCTIONAL EXPENSES



Admin- Fund-

istration raising Total

Personnel $ 48,348 $ 25,716 $ 484,266

Contractual services 864 - 88,477

Utilities and building maintenance 2,390 514 26,100

Interest expense 16,898 - 16,898

Professional fees 636 531 9,628

Direct international - - 77,343

Medications and supplies 1,380 317 143,678Fundraising events 35,896 35,896

Depreciation and amortization 1,680 386 20,882

Insurance 296 192 3,819

Postage and delivery 258 1,723 4,086

Printing and reproduction 699 4,768 9,345

Advertising 495 615 2,782

Travel and entertainment 792 972 13,089

Repairs, maintenance and

minor equipment 861 399 4,284

Other 92 1,328 4,841

$ 75,689 $ 73,357 $ 945,414



GENESIS WORLD MISSION, INC.STATEMENT OF CASH FLOWS



CASH FLOWS FROM OPERATING ACTIVITIES

Increase in net assets $ 121,139

Adjustments to reconcile increase in net assets to net cashprovided by operating activities:

Donated capital assets (1,950)

Depreciation and amortization 20,882

Increase (decrease) in:

Prepaid expenses (187)

Accounts receivable (35,749)

Grants receivable 3,546

Inventory 16,487

Accounts payable 5,172

Accrued expenses 4,566

Net cash used by operating activities 133,906

CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of capital assets (10,328)

Net cash used by investing activities (10,328)

CASH FLOWS FROM FINANCING ACTIVITIES

Payments on long-term debt (63,018)

Net cash used by financing activities (63,018)

INCREASE IN CASH AND CASH EQUIVALENTS 60,560

CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 54,985

CASH AND CASH EQUIVALENTS, END OF YEAR $ 115,545

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATIONInterest paid $ 16,898

Non-cash financing and investing activities

Donated capital assets $ 1,950



GENESIS WORLD MISSION, INC.NOTES TO FINANCIAL STATEMENTS

MAY 31, 2009

(Continued on next page) 8

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Nature of Activities

Genesis World Mission, Inc ("Organization") is a non-profit, faith based organization providing medical, physicaland spiritual care for the underserved. The organization operates a medical and dental clinic in Garden City, Idahoand manages a county-wide Volunteer Physicians Network. It also works to provide sustainable humanitarianmedical aid internationally and operates a warehouse to supply both the clinic and international projects. In 2008,the organization helped establish and continues to help operate a medical clinic in Ndumberi, Kenya inpartnership with a separate in-country organization.

Cash and Cash Equivalents

Cash and cash equivalents include cash on hand as well as checking and savings accounts with financialinstitutions. The Organization considers all short-term investments purchased with a maturity of three months or

less to be cash equivalents. Cash is maintained in a Boise area financial institution.

Pledges and Grants Receivable

Pledges and grants receivable are stated at unpaid balances, less an allowance for uncollectible amounts.Balances are non-interest bearing. The allowance is based on experience. It is the Organization’s policy tocharge off uncollectible receivables when management determines the receivable will not be collected. There wasno allowance at May 31, 2009 as all amounts are deemed collectible.

Inventories

Pharmaceutical and medical supplies are either donated or purchased. As of May 31, 2009, the value of

purchased and donated pharmaceutical and medical supplies has been capitalized as supplied inventory at thelower of cost or market.

Property and Equipment

Purchased property, equipment and software is recorded at cost. Donated property, equipment and software arevalued in the financial statements when used on Organization projects. Other donated property and equipmentwhich is passed through the warehouse to other organizations are not valued in the financial statements.Purchased property and equipment are depreciated on a straight-line basis over the estimated useful lives of theassets.

Federal and State Income Taxes

Under Section 501(c)(3) of the Internal Revenue Code, as well as under Idaho state law, the Organization isconsidered to be a nonprofit organization and is therefore exempt from federal and state income taxes. It has beenclassified as an organization that is not a private foundation under Section 509(a)(2) of the Internal RevenueCode.




MAY 31, 2009


NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT.)

Concentration of Credit Risk

For the fiscal year ended May 31, 2009, the Organization has maintained various bank accounts with Idahofinancial institutions. The bank balances were fully insured by federal depository insurance coverage.

In-Kind Contributions

The Organization records donated services for volunteers who perform work similar to salaried personnel and area significant and integral part of the efforts of the Organization. Contributions of donated non-cash assets arerecognized at fair value in the financial statements.

Use of Estimates

The Organization uses estimates and assumptions in preparing financial statements. Those estimates andassumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities,and the reported revenues and expenses. It is at least reasonably possible that the estimates will change within thenext year.

Promises to Give

Contributions and grants are recognized when the donor or grantor makes an unconditional promise to give to theOrganization. All donor-restricted contributions and grants are reported as increases in temporarily orpermanently restricted net assets depending on the nature of the restrictions. When a restriction expires,temporarily restricted net assets are reclassified to unrestricted net assets.

Restricted Funds

The Organization reports gifts of cash and other assets as restricted support if they are received with donorstipulations that limit the use of the donated assets. When a donor restriction expires, that is, when a stipulatedtime restriction ends or purpose restriction is accomplished, temporarily restricted net assets are reclassified tounrestricted net assets and reported in the statement of activities as net assets released from restrictions.

Grant Revenues

All grants, except for expenditure reimbursement grants, are recognized as income when the grantor agencyagrees to provide the funds to the Organization. Expenditure reimbursement grants are recognized as incomewhen the related expenditures are made.

NOTE 2 - PATIENT GOODS AND SERVICES REVENUE

The Organization operates the Garden City Community Clinic and has a policy of providing free medical care topatients who do not have third-party coverage. Therefore, no revenue from medical services is recorded.Eligibility is based on household size and income based on 200% of the Federal Poverty Guidelines.




MAY 31, 2009


NOTE 3 - NOTE PAYABLE

During 2006, the Organization acquired the building and associated land they were previously leasing for a

purchase price of $425,000 resulting in a long-term note payable of $415,000. Unscheduled principal paymentswere made on the note from funds provided by a grant from the Laura Moore Cunningham Foundation. Terms of the note are as follows:

Note payable to the Ashley's, interest at 7.0% amortized over 30 years, with monthly paymentsof principal and interest of $2,761 through April 1, 2016 with a balloon payment due April 1,2016, collateralized by land and building.

$ 228,619

Less current portion 16,010

$ 212,609

At May 31, 2008, maturities of long-term debt are as follows:

2010 $ 16,010

2011 18,900

2012 20,231

2013 21,728

2014 23,299

Thereafter 128,451

$ 228,619

NOTE 4 - TEMPORARILY RESTRICTED NET ASSETS

St. Lukes Medical Director Funds $ 1,139

John F Nagel GAPMed Funds 93

Laura Moore Cunningham Building Funds 1,222

Harry Morrison Foundation (Fire Equipment) Funds 6,583

Rotary Transportation Funds 393

Rotary Hygiene Funds 89

Kiwanis Clinic Equipment Funds 54

Kenya Clinic Funds 15,829

Kenya General Funds 45,640

$ 71,042




MAY 31, 2009

11

NOTE 5 – RELATED PARTY TRANSACTIONS

The Organization has valued the in-kind services of four of its board members for professional services providedduring the year (outside of board responsibilities.) The value of said services, as determined by management, is$75,958 and is reflected in the financial statements.

The Organization also accepts cash and in-kind donations (such as tangible goods and fundraising auction items)from board members and employees. The value of cash donations by board members and employees is $35,469;the value of in-kind donations by the same is $36,028. In-kind amounts are determined by management and arereflected in the financial statements.

NOTE 5 – CORRECTION OF AN ERROR The financial statements for the year ended May 31, 2008 contained an error in the calculation of purchased and

donated pharmaceutical inventory. Accordingly, the Organization restated its financial statements for the yearended May 31, 2008. The effect of the correction was to decrease pharmacy and supply inventory and decreasethe change in net assets for 2008 by $35,518. Unrestricted net assets at the beginning of 2009 have been adjustedfor the effects of this restatement.

2009 Audited Financial Statements

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