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Evangelical Free Church of America

Auditor’s Report and Combined Financial Statements December 31, 2013 and 2012

Evangelical Free Church of America December 31, 2013 and 2012

Contents

Independent Auditor’s Report ............................................................................................... 1

Combined Financial Statements

Statements of Financial Position ........................................................................................................ 3

Statements of Activities ...................................................................................................................... 4

Statements of Cash Flows .................................................................................................................. 5

Notes to Financial Statements ............................................................................................................ 6

Supplementary Information

Combining Schedule of Financial Position Information .................................................................. 25

Combining Schedule of Activities Information ................................................................................ 26

Combining Schedule of Cash Flows Information ............................................................................ 27

Independent Auditor’s Report

Board of Directors Evangelical Free Church of America Minneapolis, Minnesota We have audited the accompanying combined financial statements of Evangelical Free Church of America (EFCA) and combined affiliates, which comprise the combined statements of financial position as of December 31, 2013 and 2012, and the related combined statements of activities and cash flows for the years then ended, and the related notes to the combined financial statements.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these combined 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 combined 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 audit to obtain reasonable assurance about whether the combined financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the combined financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the combined financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the combined 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 combined financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the combined financial statements referred to above present fairly, in all material respects, the financial position of Evangelical Free Church of America and combined affiliates as of

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December 31, 2013 and 2012, and the changes in its net assets and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.


Our audits were conducted for the purpose of forming an opinion on the combined financial statements as a whole. The combining information listed in the table of contents is presented for purposes of additional analysis rather than to present the financial position, results of operations and cash flows of the individual organizations and is not a required part of the combined 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 combined financial statements. The information has been subjected to the auditing procedures applied in the audit of the combined financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the combined financial statements or to the combined 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 combined financial statement as a whole.

Fort Wayne, Indiana March 25, 2014

Evangelical Free Church of America Combined Statements of Financial Position

December 31, 2013 and 2012

See Notes to Combined Financial Statements 3

2013 2012

AssetsCash and cash equivalents 6,918,798$ 6,273,086$ Investments 10,699,041 10,171,255 Accounts and notes receivable, net 701,462 692,339 Other assets 438,301 178,628 Note receivable, related party 476,000 - Assets held for sale - 142,468 Property and equipment, net 5,434,910 5,489,057 Assets held under split-interest agreements 12,730,434 11,263,636 Beneficial interest in remainder trusts 848,559 731,384

Total assets 38,247,505$ 34,941,853$

Liabilities and Net AssetsLiabilities

Accounts payable and accrued expenses 1,763,954$ 1,610,816$ Deferred revenue 22,875 146,802 Amounts held for others 214,086 148,145 Nonqualified pension liability 286,500 382,055 Liabilities under split-interest agreements 7,233,404 6,998,724

Total liabilities 9,520,819 9,286,542

Net AssetsUnrestricted 12,008,699 11,194,819 Temporarily restricted 16,220,353 13,962,858 Permanently restricted 497,634 497,634

Total net assets 28,726,686 25,655,311

Total liabilities and net assets 38,247,505$ 34,941,853$

Evangelical Free Church of America Combined Statements of Activities

Years Ended December 31, 2013 and 2012

See Notes to Combined Financial Statements

Temporarily PermanentlyUnrestricted Restricted Restricted Total

Revenue, Gains (Losses) and Other Support

Contributions and bequests 5,568,907$ 32,563,563$ -$ 38,132,470$ Ministry program services 2,147,697 - - 2,147,697 Sales 36,270 - - 36,270 Dividend and interest income 189,111 76,060 - 265,171 Net realized and unrealized

investment gains (losses) 1,293,927 363,878 - 1,657,805 Realized/unrealized gain (loss)

on asset held for sale - - - - Change in value of annuities and trusts (425,159) 34,081 - (391,078) Net assets released from restrictions 30,780,087 (30,780,087) - -

Total revenue, gains (losses)and other support 39,590,840 2,257,495 - 41,848,335

ExpensesProgram expenses

ReachGlobal missions ministry 23,991,125 - - 23,991,125 ReachGlobal crisis

response ministry 1,353,422 - - 1,353,422 ReachNational ministry 1,742,045 - - 1,742,045 EFCA Foundation 1,345,195 - - 1,345,195 Leadership development 905,145 - - 905,145 Pastoral care ministry 351,623 - - 351,623 Communications and media 622,493 - - 622,493 Program support 463,136 - - 463,136 EFCA West 850,157 - - 850,157 Immigrant Hope 66,974 - - 66,974

Total program expenses 31,691,315 - - 31,691,315

Supporting activitiesManagement and general 3,630,931 - - 3,630,931 Fundraising 3,454,714 - - 3,454,714

Total supporting expenses 7,085,645 - - 7,085,645

Total expenses 38,776,960 - - 38,776,960

Change in Net Assets 813,880 2,257,495 - 3,071,375

Net Assets, Beginning of Year 11,194,819 13,962,858 497,634 25,655,311

Net Assets, End of Year 12,008,699$ 16,220,353$ 497,634$ 28,726,686$

2013

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5,995,264$ 28,890,759$ -$ 34,886,023$ 3,216,243 - - 3,216,243

156,859 - - 156,859 155,197 48,005 - 203,202

1,332,623 224,454 - 1,557,077

5,400 - - 5,400 240,326 90,597 - 330,923

29,687,383 (29,687,383) - -

40,789,295 (433,568) - 40,355,727

23,140,692 - - 23,140,692

1,602,289 - - 1,602,289 2,852,730 - - 2,852,730 2,263,721 - - 2,263,721

796,151 - - 796,151 569,895 - - 569,895 569,049 - - 569,049 471,754 - - 471,754 685,244 - - 685,244

33,215 - - 33,215

32,984,740 - - 32,984,740

3,695,057 - - 3,695,057 3,443,810 - - 3,443,810

7,138,867 - - 7,138,867

40,123,607 - - 40,123,607

665,688 (433,568) - 232,120

10,529,131 14,396,426 497,634 25,423,191

11,194,819$ 13,962,858$ 497,634$ 25,655,311$

2012

Evangelical Free Church of America Combined Statements of Cash Flows


See Notes to Combined Financial Statements 5

2013 2012

Operating ActivitiesChange in net assets 3,071,375$ 232,120$ Items not requiring (providing) operating activities

cash flowsNet realized and unrealized investment gains (1,679,050) (1,557,077) (Gain) loss on sale of property and equipment 38,035 (4,816) Net loss on sale of asset real estate investment 21,245 - Gain on beneficial interests in trusts held by others (117,175) (43,618) Stock donations (1,707,896) (1,000,092) Proceeds from sale of donated stock 1,666,578 907,569 Depreciation and amortization 449,622 493,441 Changes in

Accounts receivable (9,123) 90,542 Note receivable (476,000) - Other assets and liabilities (317,566) 96,875 Accounts payable and accrued expenses (12,078) (17,017) Split-interest agreement obligations 234,586 344,885

Net cash provided by (used in) operating activities 1,162,553 (457,188)

Investing ActivitiesNet change in loan investments, assets held in trust (513,864) 373,674 Proceeds from sale of investments 6,674,609 7,486,826 Purchase of investments (6,546,959) (8,665,976) Proceeds from sale of real estate investments 90,755 19,980 Purchase of property and equipment (221,382) (122,212)

Net cash used in investing activities (516,841) (907,708)

Increase (Decrease) in Cash and Cash Equivalents 645,712 (1,364,896)

Cash and Cash Equivalents, Beginning of Year 6,273,086 7,637,982

Cash and Cash Equivalents, End of Year 6,918,798$ 6,273,086$

Supplemental Cash FlowsContract for deed on sale of asset held for sale -$ 79,920$ Fixed asset purchases in accounts payable 69,661 -

Evangelical Free Church of America Notes to Combined Financial Statements


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Note 1: Nature of Operations and Summary of Significant Accounting Policies

Nature of Operations

The Evangelical Free Church of America (EFCA) is an association and fellowship of autonomous Christian churches of like faith united by a mutual commitment to fulfill the Great Commission of the Lord Jesus Christ.

EFCA operates primarily on contributions from individuals and associated churches. Contributions are received for the support of specific ministry projects as well as for the support of missionaries serving under ReachGlobal, a department of EFCA. ReachGlobal missionaries operate in over 40 countries and activities include church planting, evangelism and theological education. Missionary support is based upon established needs according to cost-of-living factors and includes an amount for administration, medical insurance, retirement, allowances for the education of children and ministry expense.

Other significant ministry departments of EFCA include ReachGlobal Crisis Response, a ministry for disaster response and community development; ReachNational, which provides leadership in the areas of domestic church planting and disciple making, student ministries and multi-ethnic ministries; EFCA Foundation which assists constituents in planning their charitable giving; the Office of the President, which provides vision and leadership development; Pastoral Care Ministries; Communications and media which includes the EFCA website and printed communications.

EFCA is a nonprofit organization incorporated in Minnesota and is exempt from federal and state income taxes under the provisions of the Internal Revenue Code Section 501(c)(3) and applicable state statutes. EFCA has been classified as a public organization that is not a private foundation under Section 509(a) of the Code.

Basis of Combination

The December 31, 2013 and 2012, combined statements of financial position include the accounts of EFCA, EFCA West and Immigrant Hope.

EFCA West is a nonprofit, tax-exempt affiliated corporation that voluntarily became a wholly owned subsidiary of EFCA and incorporated in the state of Minnesota in 2003. EFCA West’s purpose is to serve EFCA churches and facilitate the planting of new churches in its region of the American Southwest, covering central and southern California, Arizona, New Mexico and the metro areas of Las Vegas, Nevada and El Paso, Texas. EFCA West’s primary means of funding has been through donations from EFCA churches and individuals in its district.

Immigrant Hope is a nonprofit, tax-exempt affiliated corporation whose Board members are appointed by the EFCA Board and was incorporated in the state of Minnesota in 2010. Immigrant Hope’s purpose is to give all immigrants among us, including undocumented immigrants, the hope of the gospel, help in finding a pathway to legal residency and a home in the church that cares for their needs.

The combined financial statements do not reflect assets, liabilities, net assets, revenue and expenses of EFCA’s autonomous churches or other affiliated but autonomous organizations located throughout the United States or in foreign countries because they do not meet the requirements of



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combination. Intra-organization transactions and balances are eliminated for financial statement purposes.

A substantial portion of all the financial activities and revenue is the result of transactions with parties associated with and related to the Evangelical Free Church of America, including Church districts, local churches and other affiliated organizations.

EFCA West and Immigrant Hope are separate legal entities and, accordingly, their assets are segregated for their operations and to satisfy their obligations and are not available for the payment of EFCA’s obligations or liabilities. EFCA has not guaranteed any of EFCA West’s obligations.

Foreign Operations and Foreign Currency Translation

ReachGlobal has ministry sites in over 40 foreign countries. The activities and balances of ReachGlobal’s overseas operations have been included in the combined financial statements. As of December 31, 2013 and 2012, assets related to these mission fields including cash, accounts receivable and other assets totaled $616,569 and $490,523, respectively; property and equipment, net of accumulated depreciation, amounted to $3,215,011 and $3,251,244, respectively; and liabilities were $29,839 and $14,385, respectively.

The functional currency of the various sites is the local currency used in each country where the field operation is located. Current assets and liabilities for these ministries are translated at the exchange rates effective at the end of the year, long-term assets and liabilities are translated at historic exchange rates and amounts in the combined statements of activities are translated using monthly exchange rates in effect during the year. Resulting gains and losses from the translation are included in unrestricted net assets. The net gain or (loss) recognized on foreign currency translation was insignificant in 2013 and 2012.

Missions operating in foreign countries hold balances at various financial institutions within their respective countries. These amounts are not subject to FDIC insurance but are insured by appropriate regulatory bodies in the countries where the cash accounts are domiciled. These balances represent $342,568 as of December 31, 2013.

Basis of Accounting Policies

The combined financial statements of EFCA have been prepared using the accrual basis of accounting. The accounting policies reflect practices common to religious organizations.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue, expenses gains, losses and other changes in net assets during the reporting period. Actual results could differ from those estimates.



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Cash Equivalents

EFCA considers all liquid investments with original maturities of three months or less to be cash equivalents. At December 31, 2013 and 2012, cash equivalents consisted primarily of certificates of deposits with original maturities of three months or less, money market funds, accounts with brokers and short-term repurchase agreements.

At December 31, 2013, the Organizations’ cash accounts exceeded federally insured limits by approximately $2,400,000.

Cash equivalents that are waiting longer-term investing have been classified as investments.

Investments and Investment Return

Investments in equity securities having a readily determinable fair value and in all debt securities are carried at fair value. Other investments are valued at lower of cost or fair value. Investment return includes dividend, interest and other investment income; realized and unrealized gains and losses on investments carried at fair value; and realized gains and losses on other investments.

Investment return that is initially restricted by donor stipulation and for which the restriction will be satisfied in the same year are recorded as temporarily restricted and then released from restriction. Other investment return is reflected in the combined statements of activities as unrestricted, temporarily restricted or permanently restricted based upon the existence and nature of any donor or legally imposed restrictions.

Investment management fees paid to outside custodians for investments and assets held under split-interest agreements totaled $116,768 and $124,134, respectively, for the years ended December 31, 2013 and 2012. These fees are netted against interest and dividend income.

Assets Held for Sale

Assets held for sale consist of real estate donated to EFCA that is expected to be sold. Such assets are recorded at the estimated fair value at the date of gift. Subsequent to acquisition, valuations are periodically performed by management and the assets are carried at the lower of acquisition fair value or fair value less cost to sell. The realized gain or loss upon the subsequent sale of such assets will be recognized at that time.

Accounts and Other Receivables

Accounts and other receivables consist primarily of vehicle loans and employee advances to missionaries, notes receivable and amounts due from affiliated entities which are paid within 30 days. Vehicle loans are repaid by monthly payroll deduction and are offset by a vehicle reserve.

Property and Equipment

Expenditures for land, buildings and equipment in excess of $7,000 (domestic and international) are capitalized at cost. Donated assets to be used in the ministry are capitalized at their fair market value on the date of the gift. Depreciation of buildings and equipment is computed on the straight-line method over the estimated useful lives of the assets (buildings: 10-40 years; furniture and equipment: 3-10 years; computer software: 3-5 years; and vehicles: 3-5 years).



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Temporarily and Permanently Restricted Net Assets

Temporarily restricted net assets are those whose use by EFCA has been limited by donors to a specific time period or purpose. Permanently restricted net assets have been restricted by donors to be maintained by EFCA in perpetuity.

Support and Revenue and Assessments

Revenue is recognized when earned and support when contributions are made, which may be when cash is received, unconditional promises are made or when ownership of other assets is transferred to EFCA. Bequests are recorded as income at the time EFCA has an established right to the bequest and the proceeds are measurable. Contributions restricted by the donor for a specific purpose are recorded as revenue in the temporarily restricted class of net assets until funds have been expended for the purposes specified. Upon satisfaction of the restriction, temporarily restricted net assets are reclassified to unrestricted net assets and reported as net assets released from restrictions.

Individual missionary support and project funds are charged an administrative fee, calculated at a flat rate based on family size or a set percentage based upon the type of activity or project involved, in order to offset the general fund’s costs of administering those activities. Each year, amounts are transferred from missionary and project funds to the general fund and included in net assets released from restrictions in the combined statements of activities.

Member congregations, individuals and other organizations routinely provide voluntary services to EFCA. These resources have a significant impact on making the ministry program effective. However, the value of the volunteer time associated with such programs is not reflected in the combined financial statements because they do not meet the definition of skilled services under accounting standards.

Gifts of land, buildings, equipment and other long-lived assets in excess of $7,000 are reported as unrestricted revenue and net assets unless explicit donor stipulations specify how such assets must be used, in which case the gifts are reported as temporarily or permanently restricted revenue and net assets. Absent explicit donor stipulations for the time long-lived assets must be held, expirations of restrictions resulting in reclassification of temporarily restricted net assets as unrestricted net assets are reported when the long-lived assets are placed in service.

Pension and Retirement Plans

EFCA makes contributions on behalf of certain employees to the Free Church Ministers’ and Missionaries’ Retirement Plan (FCMM). FCMM is a multi-employer pension plan that includes a frozen defined benefit program and various defined contribution programs. FCMM serves ministers, missionaries and other eligible persons affiliated with EFCA. Participating member churches and EFCA make contributions to FCMM. Because it is a multi-employer plan, actuarial and net asset information is not maintained separately for each contributing organization. EFCA made contributions of $1,128,375 and $1,121,000 in 2013 and 2012, respectively. In addition, EFCA makes contributions on behalf of other eligible employees to a 403(b) tax sheltered annuity plan selected by those employees. These contributions are made at 5% of the employee’s salary and beginning in 2012, EFCA made a matching contribution of up to 2.5%. EFCA made contributions to those plans of $282,990 and $285,667 in 2013 and 2012, respectively.



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EFCA West made contributions for eligible employees to a defined contribution retirement plan of 10% of the employee’s salary during 2013 and 2012. EFCA West made contributions to those plans of $51,021 and $22,869 during 2013 and 2012, respectively.

Functional Allocation of Expenses

The costs of supporting the various programs and other activities have been summarized on a functional basis in the statements of activities. Certain costs have been allocated among the program activities, management and general and fundraising categories based on time and effort and other methods.

Income Taxes

EFCA, EFCA West and Immigrant Hope are exempt from federal income taxes under Section 501(c)(3) of the U.S. Internal Revenue Code. None of the aforementioned entities are considered to be private foundations. EFCA does pay income tax on unrelated business income. During 2013 and 2012, there was no unrelated business income for EFCA.

Transfers Between Fair Value Hierarchy Levels

Transfers in and out of Level 1 (quoted market prices), Level 2 (other significant observable inputs) and Level 3 (significant unobservable inputs) are recognized on the period beginning date.

Reclassifications

Certain reclassifications have been made to the 2012 financial statements to conform to the 2013 financial statement presentation. These reclassifications had no effect on the change in net assets.

Note 2: Investments

Investments at December 31 consisted of the following:

2013 2012

Cash and cash equivalents $ 256,262 $ 222,855 Certificates of deposit 509,128 737,014 Mutual fund securities 4,235,447 3,723,148 Variable annuity contracts 5,110,285 4,905,703 Cash surrender value, life insurance 427,020 421,636 Real estate 160,899 160,899

$ 10,699,041 $ 10,171,255



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2013 2012

Investments available for EFCA Operations $ 10,138,942 $ 9,251,400 Investments held for EFCA Endowment 560,099 515,207 Investments available for EFCA West Operations - 404,648

$ 10,699,041 $ 10,171,255

The fair value option permits the irrevocable fair value option election on an instrument-by-instrument basis at initial recognition of an asset or liability or upon an event that gives rise to a new basis of accounting for that instrument. EFCA applies the fair value option for all variable annuity contracts. EFCA elected the fair value option for the variable annuities to reduce the accounting complexities for these investment instruments.

Changes in fair value of the variable annuity contracts is included in net realized and unrealized investment gains on the combined statements of activities and amounted to $764,252 and $980,076 for 2013 and 2012, respectively.

Note 3: Beneficial Interest in Remainder Trusts

EFCA is the beneficiary under charitable remainder trusts administered by outside parties. Under the terms of the trusts, EFCA has the irrevocable right to receive a remaindermen of the trust assets at a future date. The estimated value of the expected future cash flows is $848,559 and $731,384 at December 31, 2013 and 2012, respectively. The discount rates used to calculate the present value ranged from 1.2% to 2.0%.

Note 4: Loan Participation Agreements

Christian Investors Financial (CIF), a related party, has sold participation interests in certain individual loans receivable to EFCA as the investment model for several charitable remainder unitrusts. Under the loan participation agreements, the CIF maintains all records, collects all payments and remits monthly the appropriate pro rata share of both interest and principal collected on these loans. The participation interests held by EFCA in CIF loans totaled $513,864 as of December 31, 2013. There were no participation interests held by EFCA in CIF loans as of December 31, 2012.



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Note 5: Property, Equipment and Depreciation

Domestic International Total

Land $ 396,621 $ 2,157,746 $ 2,554,367 Buildings 3,656,712 2,529,505 6,186,217 Furnishings, equipment and software 2,590,273 65,625 2,655,898 Vehicles 184,276 239,663 423,939

6,827,882 4,992,539 11,820,421 Less accumulated depreciation (4,607,983) (1,777,528) (6,385,511)

Total $ 2,219,899 $ 3,215,011 $ 5,434,910

2013

Domestic International Total

Land $ 377,023 $ 2,157,746 $ 2,534,769 Buildings 3,444,784 2,470,537 5,915,321 Furnishings, equipment and software 2,875,919 52,900 2,928,819 Vehicles 184,276 225,363 409,639

6,882,002 4,906,546 11,788,548 Less accumulated depreciation (4,644,189) (1,655,302) (6,299,491)

Total $ 2,237,813 $ 3,251,244 $ 5,489,057

2012

Management has reviewed the assets in other countries that are recorded as international property and equipment and has determined that they are under the control and ownership of EFCA. While such items are recognized as assets of EFCA, it should be noted that the political situation in many countries is subject to change. Therefore, while EFCA believes the assets are properly stated at the date of this report, subsequent changes could occur that could adversely affect the realizable value of the assets in other countries. In addition, the carrying value of the assets may not be representative of the amount that would be realized should the assets be sold.

It is EFCA’s policy to expense international property purchases in the year they are made, when ownership and control is conditional and temporary or uncertain due to the political environment. These assets are purchased with the intent of yielding ownership to the national church of the respective country at such time as the economic condition, political environment and church maturity make it possible.



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Note 6: Assets Held Under Split-Interest Agreements

The assets held in trust by EFCA at December 31 consist of:

2013 2012

Cash and cash equivalents $ 288,819 $ 470,423 Certificates of deposit 2,105,728 2,385,818 Mutual fund securities 8,018,775 6,407,386 Variable annuity contracts 1,803,248 1,888,009 Real estate - 112,000 Loan participation 513,864 -

$ 12,730,434 $ 11,263,636

Note 7: Obligations Under Split-Interest Agreements

Split-interest obligations represent the present value of income interests, required future payments or the portion of trusts due other remaindermen on charitable gift annuities, charitable remainder trusts, pooled income funds or revocable trusts that EFCA has interests in and administers. The present value of income interests or future payment streams are discounted using mortality rate tables and discount rates ranging in value from 3.74% to 15.4%.

Charitable Charitable PooledGift Remainder Income Revocable

Annuities Trusts Funds Trusts Total

Present value of annuity and trust obligations 4,498,540$ 1,456,960$ 92,627$ -$ 6,048,127$ Amounts due

to other remaindermen 656,845 513,172 1,541 13,719 1,185,277

5,155,385$ 1,970,132$ 94,168$ 13,719$ 7,233,404$

2013



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Charitable Charitable PooledGift Remainder Income Revocable

Annuities Trusts Funds Trusts Total

Present value of annuity and trust obligations 4,097,463$ 1,522,239$ 99,661$ -$ 5,719,363$ Amounts due

to other remaindermen 739,321 522,974 3,281 13,785 1,279,361

4,836,784$ 2,045,213$ 102,942$ 13,785$ 6,998,724$

2012

Contribution revenue recognized under such agreements was $135,874 and $138,495 for the years ended December 31, 2013 and 2012, respectively.

Note 8: Net Assets

2013 2012

UnrestrictedDesignated by Board for

Unitrust reserves -$ 21,968$ Ministry projects 1,038,205 1,028,801 Donor advised funds 2,218,864 2,137,242

Net investment in property and equipment 5,434,910 5,489,057 Undesignated 3,316,720 2,517,751

12,008,699 11,194,819 Temporarily restricted

Irrevocable trust agreements 1,972,481 1,789,879 Specific ministry purpose 14,247,872 12,172,979

16,220,353 13,962,858

Permanently restricted endowment 497,634 497,634

28,726,686$ 25,655,311$



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Net assets were released from restrictions due to the following:

2013 2012

Satisfaction of program restrictions 30,644,151$ 29,211,044$ Satisfaction of timing restrictions 135,936 476,339

30,780,087$ 29,687,383$

Note 9: Nonqualified Pension Liability

EFCA provides supplementary retirement payments under various deferred compensation arrangements to approximately 20 past employees, primarily retired missionaries, who had at least 25 years of service and ministry through retirement age 65. The supplement is paid monthly to retirees and provides them with a minimum monthly retirement benefit. The liability is actuarially calculated using standard life expectancy tables and a discount rate of 2.40% and 1.74% and equaled $286,500 and $382,055 at December 31, 2013 and 2012, respectively. EFCA made payments of $47,195 and $59,654 in 2013 and 2012, respectively.

Note 10: Related Party Transactions

EFCA contracts with, and is reimbursed by, Free Church Ministers’ and Missionaries’ Retirement Plan (FCMM) for its share of building operating costs, support services, postage, office supplies and other miscellaneous expenses provided by EFCA. For the years ended December 31, 2013 and 2012, this amounted to $138,204 and $112,717, respectively. The balance due from FCMM at December 31, 2013 and 2012, totaled $70,774 and $55,683, respectively.

EFCA contracts with, and is reimbursed by, CIF for its share of building operating costs, support services, postage, office supplies and other miscellaneous expenses provided by EFCA. For the years ended December 31, 2013 and 2012, these reimbursements amounted to $174,214 and $163,359, respectively. The balance due from CIF at December 31, 2013 and 2012, totaled $101,029 and $89,207, respectively. EFCA also holds investments at CIF. At December 31, 2013 and 2012, respectively, EFCA had investments of $5,719,188 (included in cash and cash equivalents $3,104,332; investments $509,128; assets held under split-interest agreements $2,105,728) and $6,610,505 (included in cash and cash equivalents $3,713,424; investments $511,263; assets held under split-interest agreements $2,385,818) with CIF and earned interest on those investments totaling $54,146 and $66,879, all respectively. EFCA West also holds an investment at CIF. At December 31, 2013 and 2012, respectively, EFCA West had an investment of $0 and $225,750 with CIF and earned interest on those investments totaling $1,837 and $4,014, all respectively.



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During 2013 and 2012, EFCA purchased $13,498 and $32,581, respectively, in goods and services from organizations that employ individuals related to management employees and Board members of EFCA.

During 2012, EFCA West purchased $17,000 in goods and services from organizations that employ individuals related to management employees and Board members of EFCA. No such goods or services were purchased by EFCA West in 2013.

During 2013, EFCA sold the rights to servicing its long-term disability insurance program to FCMM, a related party. The terms of this agreement allow for FCMM to provide consideration to EFCA in quarterly installments over a five-year period, with the final payment being due in March 2018. The outstanding balance of this note is $476,000 as of December 31, 2013.

Note 11: Missionary Medical Plan

EFCA operates a self-funded medical, dental and vision insurance plan for ReachGlobal employees who are primarily not located in the Minneapolis area. The majority of the 180-plus family units and 60-plus single units participating in the plan are located on overseas mission fields. The self-funded plan has an annual $175,000 stop loss limit for each insured individual. There is no lifetime maximum coverage amount due to the changes in health care law. Missionary support accounts are charged an amount to cover claims and administration on a monthly basis. The plan uses an outside third-party administrator to process all claims.

At December 31, 2013 and 2012, the reserve for unpaid claims, and claims incurred but not reported, was approximately $343,000 and $351,000, respectively. This amount has been recorded and is included in accounts payable and accrued expenses on the statements of financial position. This reserve is based on an estimate of outstanding claims at December 31. However, the actual liability is unknown and exposure to claims in excess of the accrued reserve may exist. Management believes that the liability reflected in the combined statements of financial position is adequate to cover claims that have been incurred at December 31 but not yet reported.

Note 12: Endowment

EFCA’s endowment consists of various individual donor-restricted endowment funds established for a variety of purposes. As required by accounting principles generally accepted in the United States of America (GAAP), net assets associated with endowment funds are classified and reported based on the existence or absence of donor-imposed restrictions.

EFCA’s governing body has interpreted the State of Minnesota’s Uniform Prudent Management of Institutional Funds Act (SPMIFA) as requiring preservation of the fair value of the original gift as of the gift date of the donor-restricted endowment funds absent explicit donor stipulations to the contrary. As a result of this interpretation, EFCA classifies as permanently restricted net assets (a) the original value of gifts donated to the permanent endowment, (b) the original value of subsequent gifts to the permanent endowment and (c) accumulations to the permanent endowment made in accordance with the direction of the applicable donor gift instrument at the time the accumulation is added to the fund. The remaining portion of donor-restricted endowment funds is



17

classified as temporarily restricted net assets until those amounts are appropriated for expenditure by EFCA in a manner consistent with the standard of prudence prescribed by SPMIFA. In accordance with SPMIFA, EFCA considers the following factors in making a determination to appropriate or accumulate donor-restricted endowment funds:

1. Duration and preservation of the fund

2. Purposes of EFCA and the fund

3. General economic conditions

4. Possible effect of inflation and deflation

5. Expected total return from investment income and appreciation or depreciation of investments

6. Other resources of EFCA

7. Investment policies of EFCA

The composition of net assets by type of endowment fund at December 31, 2013 and 2012, was:

UnrestrictedTemporarily Restricted

Permanently Restricted Total

Donor-restricted endowment funds $ - $ 62,465 $ 497,634 $ 560,099

2013

UnrestrictedTemporarily Restricted

Permanently Restricted Total

Donor-restricted endowment funds $ - $ 17,573 $ 497,634 $ 515,207

2012



18

Changes in endowment net assets for the years ended December 31, 2013 and 2012, were:


Endowment net assets, beginning of year -$ 17,573$ 497,634$ 515,207$

Investment returnInterest income - 15,883 - 15,883 Net appreciation - 37,619 - 37,619

Total investment return - 53,502 - 53,502

Appropriation of endowment assets -

for expenditure - (8,610) - (8,610)

Endowment net assets, end of year -$ 62,465$ 497,634$ 560,099$

2013


Endowment net assets, beginning of year (24,961)$ -$ 497,634$ 472,673$

Investment returnInterest income - 12,920 - 12,920 Net depreciation 24,961 11,745 - 36,706

Total investment return 24,961 24,665 - 49,626

Appropriation of endowment assets

for expenditure - (7,092) - (7,092)

Endowment net assets, end of year -$ 17,573$ 497,634$ 515,207$

2012



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Amounts of donor-restricted endowment funds classified as permanently restricted net assets at December 31, 2013 and 2012, consisted of:

2013 2012

Permanently restricted net assets, portion of perpetual funds required to be retainedpermanently by explicit donor stipulation or SPMIFA 497,634$ 497,634$

December 31,

From time to time, the fair value of assets associated with individual donor-restricted endowment funds may fall below the level EFCA is required to retain as a fund of perpetual duration pursuant to donor stipulation or SPMIFA. Deficiencies could result from unfavorable market fluctuations that occur shortly after investment of new permanently restricted contributions and continued appropriation for certain purposes that was deemed prudent by the governing body. There are no deficiencies of this nature reported in unrestricted net assets at December 31, 2013 and 2012.

EFCA has adopted investment and spending policies for endowment assets that attempt to provide a predictable stream of funding to programs and other items supported by its endowment while seeking to maintain the purchasing power of the endowment. Endowment assets include those assets of donor-restricted endowment funds EFCA must hold in perpetuity or for donor-specified periods. Under EFCA’s policies, endowment assets are invested in a manner that is intended to produce an inflation adjusted income stream to grow the corpus above the inflation rate. Actual returns in any given year may vary from this amount.

To satisfy its long-term rate of return objectives, EFCA relies on a total return strategy in which investment returns are achieved through both current yield (investment income such as dividends and interest) and capital appreciation (both realized and unrealized). EFCA targets a diversified asset allocation that places an emphasis on equity-based investments to achieve its long-term return objectives within prudent risk constraints.

EFCA has a spending practice whereby investment earnings on the investments supporting the endowment funds are appropriated for current expenditure.

Note 13: Disclosures About Fair Value of Assets and Liabilities

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements must maximize the use of observable inputs and minimize the use of unobservable inputs. There is a hierarchy of three levels of inputs that may be used to measure fair value:

Level 1 Quoted prices in active markets for identical assets or liabilities

Level 2 Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are



20

observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities

Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities

Recurring Measurements

The following table presents the fair value measurements of assets and liabilities recognized in the accompanying statements of financial position measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall at December 31, 2013 and 2012:

Quoted Prices

in Active SignificantMarkets for Other Significant

Identical Observable UnobservableAssets Inputs Inputs

Fair Value (Level 1) (Level 2) (Level 3)

InvestmentsMoney market funds 256,262$ 256,262$ -$ -$ Mutual fund securities 4,235,447 4,235,447 - - Variable annuity

contracts 5,110,285 - 5,110,285 - Assets held under split-

interest agreements Money market funds 258,716 258,716 - - Mutual fund securities 8,018,775 8,018,775 - -

Variable annuity contracts 1,803,248 - 1,803,248 -

Beneficial interest in remaindertrusts 848,559 - - 848,559

2013Fair Value Measurements Using



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Quoted Prices

in Active SignificantMarkets for Other Significant

Identical Observable UnobservableAssets Inputs Inputs

Fair Value (Level 1) (Level 2) (Level 3)

InvestmentsMoney market funds 222,855$ 222,855$ -$ -$ Mutual fund securities 3,723,148 3,723,148 - - Variable annuity

contracts 4,905,703 - 4,905,703 - Assets held under split-

interest agreementsMoney market funds 304,713 304,713 - - Mutual fund securities 6,407,386 6,407,386 - -

Variable annuitycontracts 1,888,009 - 1,888,009 -

Beneficial interest in remainder trusts 731,384 - - 731,384

2012Fair Value Measurements Using

Following is a description of the inputs and valuation methodologies used for assets measured at fair value on a recurring basis and recognized in the accompanying statements of financial position, as well as the general classification of such assets pursuant to the valuation hierarchy. There were no liabilities measured at fair value on a recurring basis.

Cash Equivalents, Investments and Assets Held Under Split-Interest Agreements

Where quoted market prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. If quoted market prices are not available, then fair values are estimated by using pricing models, quoted prices of securities with similar characteristics or discounted cash flows. The inputs used by the pricing service to determine fair value may include one, or a combination of, observable inputs such as benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data market research publications and are classified within Level 2 of the valuation hierarchy. In certain cases where Level 1 or Level 2 inputs are not available, securities are classified within Level 3 of the hierarchy. See the table below for inputs and valuation techniques used for Level 3 securities.

Fair value determinations for Level 3 measurements are the responsibility of the Accounting Department. The Accounting Department obtains valuation information and inputs as needed to generate fair value estimates. The Accounting Department assesses the reasonableness of the



22

assumptions obtained to ensure estimated fair value complies with accounting standards generally accepted in the United States of America.

Beneficial Interest in Remainder Trusts

The fair value is estimated at the present value of the future distributions expected to be received over the term of the agreements. Due to the nature of the valuation inputs, the interest is classified within Level 3 of the hierarchy.

The following is a reconciliation of the beginning and ending balances of recurring fair value measurements recognized in the accompanying statements of financial position using significant unobservable (Level 3) inputs:

Beneficial Interest

in Remainder Trusts

Balance, January 1, 2012 $ 1,121,417

Total realized and unrealized gains 43,618 Matured trusts (433,651)

Balance, December 31, 2012 731,384

Total realized and unrealized gains 117,175

Balance, December 31, 2013 $ 848,559

Total gains or losses for the period included in change in net assets attributable to the change in unrealized gains or losses related to assets and liabilities still held at the reporting date:

Year ended December 31, 2012 $ 43,618

Year ended December 31, 2013 $ 117,175

The unrealized gains and losses are included in revenue, gains (losses) and other support in the statements of activities.



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Following is a description of the valuation methodologies used for assets measured at fair value on a nonrecurring basis and recognized in the accompanying statements of financial position, as well as the general classification of such assets pursuant to the valuation hierarchy. There were no liabilities measured at fair value on a nonrecurring basis for 2013 and 2012.

Unobservable (Level 3) Inputs

Fair Value at December 31,

2013 Valuation Technique

Unobservable Inputs Range

Beneficial interest in

remainder trust $ 848,559 Discounted cash flow

Discount rates Mortality assumptions (*)

1.2% - 2.0%

Portfolio returns 4.5% - 6.5%

Fair Value at December 31,

2012 Valuation Technique

Unobservable Inputs Range

Beneficial interest in

remainder trust $ 731,384 Discounted cash flow

Discount rates Mortality assumptions (*)

1.2% - 1.6%

Portfolio returns 4.5% - 6.5%

*Based on the ages of designated beneficiaries in the trust instruments.

Note 14: Significant Estimates, Concentrations and Contingencies

Accounting principles generally accepted in the United States of America require disclosure of certain significant estimates and current vulnerabilities due to certain concentrations. Those matters include the following:

Litigation

EFCA is subject to claims and lawsuits that arose primarily in the ordinary course of its activities. It is the opinion of management that the disposition or ultimate resolution of such claims and lawsuits will not have a material adverse effect on the financial position, change in net assets and cash flows of EFCA. Events could occur that would change this estimate materially in the near term.



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Note 15: Subsequent Events

Subsequent events have been evaluated through the date of the Independent Auditor’s Report, which is the date the combined financial statements were available to be issued.

In November of 2012, the EFCA West Regional Council sent the EFCA board a resolution requesting a transfer of all management of the district to the EFCA board for a minimum of one year. In July 2013, the EFCA conference voted to amend the bylaws so that districts may be assimilated into the EFCA on a voluntary basis. In February 2014, the EFCA board passed a resolution to assimilate EFCA West into the EFCA as of January 1, 2014 and dissolve the EFCA West corporate entity as soon as reasonably prudent.

Evangelical Free Church of America Combining Schedule of Financial Position Information


Immigrant EFCA Eliminating GrandEFCA Hope West Total Entries Total

AssetsCash and cash equivalents 6,530,437$ $ 33,854 $ 354,507 $ 6,918,798 $ - $ 6,918,798 Investments 10,699,041 - 1,716,955 12,415,996 (1,716,955) 10,699,041 Accounts and other receivables, net 701,084 378 - 701,462 - 701,462 Other assets 436,924 530 847 438,301 - 438,301 Loans receivable 476,000 - - 476,000 - 476,000 Assets held for sale - - - - - - Property and equipment, net 5,434,910 - - 5,434,910 - 5,434,910 Assets held under split-interest

agreements 12,730,434 - - 12,730,434 - 12,730,434 Beneficial interest in

remainder trusts 848,559 - - 848,559 - 848,559

Total assets 37,857,389$ 34,762$ 2,072,309$ 39,964,460$ (1,716,955)$ 38,247,505$

Liabilities and Net AssetsLiabilities

Accounts payable andaccrued expenses 1,741,371$ $ 10,906 $ 11,677 $ 1,763,954 $ - $ 1,763,954

Deferred revenue 22,875 - - 22,875 - 22,875 Amounts held for others 214,086 - - 214,086 - 214,086 Nonqualified pension liability 286,500 - - 286,500 - 286,500 agreements 7,233,404 - - 7,233,404 - 7,233,404

Total liabilities 9,498,236 10,906 11,677 9,520,819 - 9,520,819

Net AssetsUnrestricted

Designated by Board forUnitrust reserves - - - - - - Ministry projects 1,038,205 - - 1,038,205 - 1,038,205 EFCA West - - 1,716,955 1,716,955 (1,716,955) - Donor Advised Fund 2,218,864 - - 2,218,864 - 2,218,864

Equity in property and equipment 5,434,910 - - 5,434,910 - 5,434,910 Undesignated 2,989,741 23,856 303,123 3,316,720 - 3,316,720

11,681,720 23,856 2,020,078 13,725,654 (1,716,955) 12,008,699

Temporarily restricted Irrevocable trust agreements 1,972,481 - - 1,972,481 - 1,972,481 Specific ministry purpose 14,207,318 - 40,554 14,247,872 - 14,247,872

16,179,799 - 40,554 16,220,353 - 16,220,353

Permanently restricted 497,634 - - 497,634 - 497,634

Total net assets 28,359,153 23,856 2,060,632 30,443,641 (1,716,955) 28,726,686

Total liabilities and net assets 37,857,389$ 34,762$ 2,072,309$ 39,964,460$ (1,716,955)$ 38,247,505$

2013

25

Immigrant EFCA Eliminating GrandEFCA Hope West Total Entries Total

6,218,241$ $ 3,441 $ 51,404 $ 6,273,086 $ - $ 6,273,086

9,766,607 - 404,648 10,171,255 - 10,171,255

691,404 295 640 692,339 - 692,339

177,275 506 847 178,628 - 178,628

- - - - - -

142,468 - - 142,468 - 142,468

5,489,057 - - 5,489,057 - 5,489,057

11,263,636 - - 11,263,636 - 11,263,636

731,384 - - 731,384 - 731,384

34,480,072$ $ 4,242 $ 457,539 $ 34,941,853 $ - $ 34,941,853

1,596,833$ $ 1,180 $ 12,803 $ 1,610,816 $ - $ 1,610,816

146,802 - - 146,802 - 146,802

148,145 - - 148,145 - 148,145

382,055 - - 382,055 - 382,055

6,998,724 - - 6,998,724 - 6,998,724

9,272,559 1,180 12,803 9,286,542 - 9,286,542

21,968 - - 21,968 - 21,968

1,028,801 - - 1,028,801 - 1,028,801

- - - - - -

2,137,242 - - 2,137,242 - 2,137,242

5,489,057 - - 5,489,057 - 5,489,057

2,106,005 3,062 408,684 2,517,751 - 2,517,751

10,783,073 3,062 408,684 11,194,819 - 11,194,819

1,789,879 - - 1,789,879 - 1,789,879

12,136,927 - 36,052 12,172,979 - 12,172,979

13,926,806 - 36,052 13,962,858 - 13,962,858

497,634 - - 497,634 - 497,634

25,207,513 3,062 444,736 25,655,311 - 25,655,311

34,480,072$ $ 4,242 $ 457,539 $ 34,941,853 $ - $ 34,941,853

2012

Evangelical Free Church of America Combining Schedule of Activities Information


GrandTotal Total

Revenue, Gains (Losses) and Other SupportContributions and bequests 37,092,317$ $ 10,446 $ 2,641,044 $ 39,743,807 $ (1,611,337) $ 38,132,470 Ministry program services 2,048,341 84,800 18,058 2,151,199 (3,502) 2,147,697 Sales 36,071 199 - 36,270 - 36,270 Dividend and interest income 260,368 - 24,020 284,388 (19,217) 265,171 Net realized and unrealized

investment gains (losses) 1,659,319 - 89,933 1,749,252 (91,447) 1,657,805 Realized/unrealized gain (loss)

on asset held for sale - - - - - - Change in value of annuities

and trusts (391,078) - - (391,078) - (391,078)

Total revenue, gains (losses) on other support 40,705,338 95,445 2,773,055 43,573,838 (1,725,503) 41,848,335

ExpensesProgram services

ReachGlobal missions ministry 23,991,125 - - 23,991,125 - 23,991,125

ministry 1,353,422 - - 1,353,422 - 1,353,422 ReachNational ministry 1,742,045 - - 1,742,045 - 1,742,045 EFCA Foundation 1,345,195 - - 1,345,195 - 1,345,195 Leadership development 910,191 - - 910,191 (5,046) 905,145 Pastoral care ministry 351,623 - - 351,623 - 351,623 Communications and media 622,493 - - 622,493 - 622,493 Program support 463,136 - - 463,136 - 463,136 EFCA West - 852,597 852,597 (2,440) 850,157 Immigrant Hope - 66,974 66,974 66,974

Supporting activitiesManagement and general 3,334,982 7,677 289,334 3,631,993 (1,062) 3,630,931 Fundraising 3,439,486 - 15,228 3,454,714 - 3,454,714

Total expenses 37,553,698 74,651 1,157,159 38,785,508 (8,548) 38,776,960

Change in Net Assets 3,151,640 20,794 1,615,896 4,788,330 (1,716,955) 3,071,375

Net Assets, Beginning of Year 25,207,513 3,062 444,736 25,655,311 - 25,655,311

Net Assets, End of Year 28,359,153$ $ 23,856 $ 2,060,632 $ 30,443,641 $ (1,716,955) $ 28,726,686

EFCAImmigrant

Hope

2013

EFCA WestEliminating

Entries

26

GrandTotal Total

34,099,210$ $ 17,339 $ 785,913 $ 34,902,462 $ (16,439) $ 34,886,023 3,158,666 33,875 28,209 3,220,750 (4,507) 3,216,243

156,859 - - 156,859 - 156,859 196,041 - 7,161 203,202 - 203,202

1,556,763 - 314 1,557,077 - 1,557,077

5,400 - - 5,400 - 5,400

330,923 - - 330,923 - 330,923

39,503,862 51,214 821,597 40,376,673 (20,946) 40,355,727

23,140,692 - - 23,140,692 - 23,140,692 1,602,289 - - 1,602,289 - 1,602,289 2,852,730 - - 2,852,730 - 2,852,730 2,263,721 - - 2,263,721 - 2,263,721

812,590 - - 812,590 (16,439) 796,151 569,895 - - 569,895 - 569,895 569,049 - - 569,049 - 569,049 471,754 - - 471,754 - 471,754

- - 687,901 687,901 (2,657) 685,244 - 33,215 - 33,215 - 33,215

3,426,462 17,489 252,956 3,696,907 (1,850) 3,695,057 3,429,703 795 13,312 3,443,810 - 3,443,810

39,138,885 51,499 954,169 40,144,553 (20,946) 40,123,607

364,977 (285) (132,572) 232,120 - 232,120

24,842,536 3,347 577,308 25,423,191 - 25,423,191

25,207,513$ $ 3,062 $ 444,736 $ 25,655,311 $ - $ 25,655,311

.

2012

ImmigrantHopeEFCA EFCA West

Eliminating Entries

Evangelical Free Church of America Combining Schedule of Cash Flows Information


Immigrant EFCA Grand EFCA Hope West Total Eliminations Total

Operating ActivitiesChange in net assets $ 3,151,640 $ 20,794 $ 1,615,896 $ 4,788,330 (1,716,955)$ $ 3,071,375

Items not requiring (providing) cash

Net realized and unrealized

investment (gains) losses (1,680,564) - (89,933) (1,770,497) 91,447 (1,679,050)

(Gain) loss on sale of property

and equipment 38,035 - - 38,035 - 38,035

Net (gain) loss on sale of

real estate investments 21,245 - - 21,245 - 21,245

Gain on beneficial interests in

trusts held by others (117,175) - - (117,175) - (117,175)

Donated stocks (1,707,896) - - (1,707,896) - (1,707,896)

Proceeds from sale of donated

stock 1,666,578 - - 1,666,578 - 1,666,578

Depreciation and amortization 449,622 - - 449,622 - 449,622

Changes in

Accounts receivable (9,680) (83) 640 (9,123) - (9,123)

Note receivable (476,000) - - (476,000) - (476,000)

Other assets and liabilities (317,542) (24) - (317,566) - (317,566)

Accounts payable and

accrued expenses (20,678) 9,726 (1,126) (12,078) - (12,078)

Split-interest agreement

obligations 234,586 - - 234,586 - 234,586

Net cash provided by

(used in) operating

activities 1,232,171 30,413 1,525,477 2,788,061 (1,625,508) 1,162,553

Investing ActivitiesNet change in loans (513,864) - - (513,864) - (513,864)

Proceeds from sale of investments 6,268,029 - 416,477 6,684,506 (9,897) 6,674,609

Purchase of investments (6,543,514) - (1,638,850) (8,182,364) 1,635,405 (6,546,959)

Proceeds from sale of assets held for

sale and real estate 90,755 - - 90,755 - 90,755

Purchase of property and equipment (221,382) - - (221,382) - (221,382)

Net cash provided by

(used in) investing

activities (919,976) - (1,222,373) (2,142,349) 1,625,508 (516,841)

Increase (Decrease) in Cash and Cash Equivalents 312,195 30,413 303,104 645,712 - 645,712

Cash and Cash Equivalents, Beginning of Year 6,218,242 3,441 51,403 6,273,086 - 6,273,086

Cash and Cash Equivalents, End of Year 6,530,437$ 33,854$ 354,507$ 6,918,798$ -$ 6,918,798$

2013

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Immigrant EFCA Grand EFCA Hope West Total Eliminations Total

$ 364,977 $ (285) $ (132,572) $ 232,120 -$ 232,120$

(1,556,763) - (314) (1,557,077) - (1,557,077)

(4,816) - - (4,816) - (4,816)

- - - - - -

(43,618) - - (43,618) - (43,618)

(1,000,092) (1,000,092) (1,000,092)

907,569 907,569 907,569

493,441 - - 493,441 - 493,441

91,182 - (640) 90,542 - 90,542

96,097 1,500 (722) 96,875 - 96,875

(24,575) - 7,558 (17,017) - (17,017)

344,885 - - 344,885 - 344,885

(331,713) 1,215 (126,690) (457,188) - (457,188)

373,674 - - 373,674 - 373,674

7,436,826 - 50,000 7,486,826 - 7,486,826 (8,662,881) - (3,095) (8,665,976) - (8,665,976)

19,980 - - 19,980 - 19,980

(122,212) - - (122,212) - (122,212)

(954,613) - 46,905 (907,708) - (907,708)

(1,286,326) 1,215 (79,785) (1,364,896) - (1,364,896)

7,504,568 2,226 131,188 7,637,982 - 7,637,982

6,218,242$ 3,441$ 51,403$ 6,273,086$ -$ 6,273,086$

2012

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