Table Of ContentThe General Council of the Assemblies
of God and Affiliated Entities
Auditor’s Report and Consolidated Financial Statements
March 31, 2013 and 2012
The General Council of the Assemblies of God
and Affiliated Entities
March 31, 2013 and 2012
Contents
Independent Auditor’s Report ............................................................................................... 1
Consolidated Financial Statements
Statements of Financial Position ........................................................................................................ 3
Statements of Activities ...................................................................................................................... 4
Statements of Cash Flows ................................................................................................................... 6
Notes to Financial Statements ............................................................................................................ 8
Supplementary Information
Consolidating Schedule – Statement of Financial Position Information .......................................... 45
Consolidating Schedule – Statement of Activities Information ....................................................... 49
The General Council Consolidating Schedule – Statement of Financial Position Information ....... 53
The General Council Consolidating Schedule – Statement of Activities Information ..................... 57
Independent Auditor’s Report
The Executive Presbytery
The General Council of the Assemblies
of God and Affiliated Entities
Springfield, Missouri
We have audited the accompanying consolidated financial statements of The General Council of the
Assemblies of God (The General Council) and Affiliated Entities (collectively, the “Organization”) as of
March 31, 2013 and 2012, and the related consolidated statements of activities 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 consolidated 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 consolidated 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 consolidated 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 consolidated financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the consolidated financial statements. The procedures selected depend on the auditor’s judgment,
including the assessment of the risks of material misstatement of the consolidated 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 consolidated 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 consolidated financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinion.
The Executive Presbytery
The General Council of the Assemblies
of God and Affiliated Entities
Page 2
Opinion
In our opinion, the consolidated financial statements referred to above present fairly, in all material
respects, the financial position of The General Council of the Assemblies of God and Affiliated Entities as
of March 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.
Supplementary Information
Our audits were conducted for the purpose of forming an opinion on the consolidated financial statements
as a whole. The consolidating schedules listed in the table of contents are presented for purposes of
additional analysis and are not a required part of the consolidated 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 consolidated financial statements. The information has been
subjected to the auditing procedures applied in the audits of the consolidated financial statements and
certain additional procedures, including comparing and reconciling such information directly to the
underlying accounting and other records used to prepare the consolidated financial statements or to the
consolidated 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 consolidated financial statements as a whole.
July 11, 2013
Springfield, Missouri
The General Council of the Assemblies of God
and Affiliated Entities
Consolidated Statements of Financial Position
March 31, 2013 and 2012
(In Thousands)
Assets
2013 2012
Cash $ 48,046 $ 44,802
Investments 1,209,582 1,027,761
Accrued interest, dividends and fees receivable 16,713 12,734
Accounts receivable, net of allowance; $434 – 2013,
$783 – 2012
Trade 6,821 4,494
Other 2,187 3,118
Inventory 6,313 7,604
Mortgages, loans and notes receivable, net of allowance;
$24,615 – 2013, $23,627 – 2012 1,679,961 1,758,928
Deposits and assets limited as to use - 4,119
Other real estate owned, net 109,955 89,386
Property and equipment, net 117,677 152,458
Prepaid expenses and other 25,649 28,838
Assets held by others 2,905 2,669
Total assets $ 3,225,809 $ 3,136,911
See Notes to Consolidated Financial Statements
Liabilities and Net Assets
2013 2012
Liabilities
Accounts payable, accrued expenses and other $ 45,156 $ 40,868
Deposits and funds held for others 799 811
Participants’ accounts
Personal contribution accounts 165,399 192,956
Retirement contribution accounts 1,140,164 1,074,483
Federal contribution to loan program 4,188 4,139
Assets held for others 84,082 96,764
Deferred revenue 2,362 2,205
Notes, bonds and deposits payable 1,087,583 1,091,567
Donor advised funds 93,154 57,440
Annuity and trust obligations 150,510 149,256
Accrued pension liability 17,443 15,659
Total liabilities 2,790,840 2,726,148
Net Assets
Unrestricted 384,042 350,163
Temporarily restricted 15,360 26,718
Permanently restricted 35,567 33,882
Total net assets 434,969 410,763
Total liabilities and net assets $ 3,225,809 $ 3,136,911
3
The General Council of the Assemblies of God
and Affiliated Entities
Consolidated Statements of Activities
Years Ended March 31, 2013 and 2012
(In Thousands)
2013 2012
Changes in Unrestricted Net Assets
Revenues, gains and other support
Contributions, gifts and donations $ 304,261 $ 270,334
Less amounts raised on behalf of others 53,027 22,188
Net contributions, gifts and donations 251,234 248,146
Investment return 19,749 7,379
Interest on mortgages and loans receivable 114,547 124,739
Publication sales 25,009 26,405
Student tuition and fees 29,883 30,724
Auxiliary enterprises 9,466 9,768
Other support 19,161 31,152
Net management and other fees 14,644 9,584
Actuarial gain (loss) on annuity and trust obligations 290 (1,484)
Loss on assets held for sale (513) (1,777)
Change in donor restriction 3 11
Net assets released from restrictions 3,861 5,588
Total unrestricted revenues, gains and other support 487,334 490,235
Expenses and losses
Program services 347,828 365,275
Support services 97,265 93,159
Abandoned project costs 749 -
Expense on other real estate owned 4,718 3,481
Provision for income taxes 2,665 2,515
Total expenses and losses 453,225 464,430
Defined benefit pension plan
Net gain arising during the year 1,051 995
Amortization of prior service cost and net loss
in net periodic pension cost (3,360) (2,172)
(2,309) (1,177)
Change in Unrestricted Net Assets Before Equity Removed
in Deconsolidation 31,800 24,628
Equity removed in deconsolidation 2,079 -
Change in Unrestricted Net Assets 33,879 24,628
See Notes to Consolidated Financial Statements 4
The General Council of the Assemblies of God
and Affiliated Entities
Consolidated Statements of Activities
Years Ended March 31, 2013 and 2012
(In Thousands)
2013 2012
Changes in Temporarily Restricted Net Assets
Contributions, gifts and donations $ 4,531 $ 2,825
Investment return 735 288
Actuarial gain (loss) on annuity and trust obligations 200 675
Unfulfilled pledge commitment - (105)
Net assets released from restrictions (3,861) (5,588)
Change in Temporarily Restricted Net Assets Before Equity
Removed in Deconsolidation 1,605 (1,905)
Equity removed in deconsolidation (12,963) -
Change in Temporarily Restricted Net Assets (11,358) (1,905)
Changes in Permanently Restricted Net Assets
Revenues, gains and other support
Contributions, gifts and donations 1,080 1,592
Investment return 69 (303)
Gain (loss) on beneficial interest in trusts held by others 95 (253)
Actuarial gain on annuity and trust obligations 444 884
Change in donor restriction (3) 94
Change in Permanently Restricted Net Assets 1,685 2,014
Change in Net Assets 24,206 24,737
Net Assets, Beginning of Year 410,763 386,026
Net Assets, End of Year $ 434,969 $ 410,763
See Notes to Consolidated Financial Statements 5
The General Council of the Assemblies of God
and Affiliated Entities
Consolidated Statements of Cash Flows
Years Ended March 31, 2013 and 2012
(In Thousands)
2013 2012
Operating Activities
Change in net assets $ 24,206 $ 24,737
Adjustments to reconcile change in net assets to net cash
provided by operating activities
Depreciation and amortization 10,360 11,223
Deferred income taxes 430 302
Loss on other real estate owned 117 336
(Gain) loss on disposal of property and equipment (62) 1,256
Net realized and unrealized gains on investments (18,431) (6,147)
Actuarial gain on annuity and trust obligations (934) (75)
(Gain) loss on beneficial interest in trusts held by others (95) 253
Provision for losses on loans 3,464 4,632
Interest allocated to participant accounts 33,119 36,911
Contributions restricted for long-term investment (1,244) (1,755)
Student loans cancelled 25 23
Change in control of affiliate, net of cash 8,116 (5,897)
Noncash investmetn contributions (73) -
Abandoned project costs 740 -
Changes in
Accrued interest, dividends and fees receivable (3,979) 2,064
Accounts receivable (2,306) 2,087
Inventory 1,291 299
Prepaid expenses 2,110 8,867
Accounts payable and accrued expenses 4,977 3,704
Deferred revenue (26) (188)
Assets held for others (12,694) (3,181)
Accrued pension liability 1,784 1,178
Net cash provided by operating activities 50,895 80,629
Investing Activities
Purchases of property and equipment (2,363) (14,766)
Proceeds from sale of property and equipment 174 3,559
Proceeds from sale of other real estate owned 5,500 1,281
Capitalized costs on other real estate owned (680) (277)
Purchases of investments (286,955) (187,469)
Proceeds from sales and maturities of investments 144,924 114,101
Originations of mortgages, loans and notes receivable (174,428) (202,548)
Principal collected on mortgages, loans and notes receivable 224,622 191,394
Net cash used in investing activities (89,206) (94,725)
See Notes to Consolidated Financial Statements 6
The General Council of the Assemblies of God
and Affiliated Entities
Consolidated Statements of Cash Flows
Years Ended March 31, 2013 and 2012
(In Thousands)
2013 2012
Financing Activities
Contributions restricted for long-term investment $ 1,244 $ 1,755
Contributions to personal accounts 30,952 35,292
Withdrawals from personal accounts (60,343) (70,334)
Contributions to retirement accounts 65,585 61,642
Payments to retiring participants (54,207) (55,958)
Proceeds from issuance of notes and bonds payable 279,936 318,070
Payment of principal on notes and bonds payable (271,182) (236,781)
Net borrowings from line of credit 11,500 -
Investments subject to annuity obligations (3,209) (2,731)
Payments of annuity obligations (3,003) (6,403)
Investments subject to trust obligations 11,457 50,486
Payments of trust obligations (3,067) (49,201)
Investments subject to donor advised funds 44,692 8,016
Payments of donor advised funds (8,978) (4,067)
Repayments of asset backed notes - (9,041)
Other 178 36
Net cash provided by financing activities 41,555 40,781
Increase in Cash 3,244 26,685
Cash, Beginning of Year 44,802 18,117
Cash, End of Year $ 48,046 $ 44,802
Supplemental Cash Flows Information
Sale and financing of other real estate owned $ 6,012 $ 4,439
Gain on self-directed accounts $ 23,018 $ 7,906
Payables incurred for property and equipment $ 834 $ 146
Note payable issued for purchase of business unit $ - $ 1,400
Interest paid $ 71,556 $ 75,439
Real estate acquired in settlement of loans $ 31,296 $ 24,537
Accrued interest on retirement loan default $ - $ 52
Obligation relieved due to abandoned project costs $ 20 $ -
See Notes to Consolidated Financial Statements 7
Description:The General Council of the Assemblies of God and Affiliated . In making those risk assessments, the auditor considers internal control relevant to the
