Professional Documents
Culture Documents
I have audited the accompanying statement of financial position of the Conference Treasurer of the
Tennessee Annual Conference of the United Methodist Church as of December 31, 2005, and the related
statements of activities and cash flows and the details of transactions in restricted funds and the schedule of
general and administrative expenses for the year then ended. These financial statements are the
responsibility of the Conference Treasurer. My responsibility is to express an opinion on these financial
statements based on my audit.
I conducted my audit in accordance with auditing standards generally accepted in the United States of
America. Those standards require that I plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. I believe that my audit provides a reasonable basis
for my opinion.
In my opinion, the financial statements referred to above present fairly, in all material respects, the
financial position of the Conference Treasurer as of December 31, 2005 and the changes in net assets and
its cash flows for the year then ended in conformity with accounting principles generally accepted in the
United States of America.
Nashville, Tennessee
October 10, 2007
TENNESSEE ANNUAL CONFERENCE OF THE UNITED METHODIST CHURCH
CONFERENCE TREASURER
STATEMENT OF FINANCIAL POSITION
DECEMBER 31, 2005
ASSETS
Current Assets:
Cash and securities purchased under agreement
to repurchase $ 416076
Support and revenue receivable 1518466
Marketable securities 816000
Investment management accounts 1473565
Other Assets:
Participation certificates $ 242447
Current Liabilities:
Program funds payable $ 803672
Net Assets:
Unrestricted $ ( 105625)
Temporarily restricted 3343507
Permanently restricted 425000
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TENNESSEE ANNUAL CONFERENCE OF THE UNITED METHODIST CHURCH
CONFERENCE TREASURER
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED DECEMBER 31, 2005
Expenses:
Program Services $ $ 16446810 $ 16446810
General and administrative services 461194 461194
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TENNESSEE ANNUAL CONFERENCE OF THE UNITED METHODIST CHURCH
CONFERENCE TREASURER
STATEMENT OF GENERAL AND ADMINISTRATION EXPENSES
FOR THE YEAR ENDED DECEMBER 31, 2005
Total $ 245128
Total $ 216066
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TENNESSEE ANNUAL CONFERENCE OF THE UNITED METHODIST CHURCH
CONFERENCE TREASURER
DETAILS OF TRANSACTIONS IN RESTRICTED FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2005
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Payments Transfers Excess(Deficit)
& Other From (To) Revenue & Support Net Assets - Net Assets
Distributions Other Funds Over Distributions Beginning December 31, 2005
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TENNESSEE ANNUAL CONFERENCE OF THE UNITED METHODIST CHURCH
CONFERENCE TREASURER
DETAILS OF TRANSACTIONS IN THE RESTRICTED FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2005 (continued)
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Payments Transfers Excess(Deficit)
& Other From (To) Revenue & Support Net Assets - Net Assets -
Distributions Other Funds Over Distributions Beginning December 31, 2005
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TENNESSEE ANNUAL CONFERENCE OF THE UNITED METHODIST CHURCH
CONFERENCE TREASURER
DETAILS OF TRANSACTIONS IN RESTRICTED FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2005
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Payments Transfers Excess (Deficit)
& Other From (To) Revenue & Support Net Assets - Net Assets -
Distributions Other Funds Over Distributions Beginning December 31, 2005
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TENNESSEE ANNUAL CONFERENCE OF THE UNITED METHODIST CHURCH
CONFERENCE TREASURER
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED DECEMBER 31, 2005
Net Increase (Decrease) in Cash and Cash Equivalents $ ( 305928) $ 376795 $ 70867
Cash and Cash Equivalents at beginning of the year ( 2441271) 2786480 $ 345209
Cash and Cash Equivalents at end of the year $ ( 2747199) $ 3163275 $ 416076
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TENNESSEE ANNUAL CONFERENCE OF THE UNITED METHODIST CHURCH
CONFERENCE TREASURER
NOTES TO THE FINANCIAL STATEMENTS
A summary of the significant accounting policies applied in the preparation of the accompanying financial
statements follow:
1. Nature of Organization. The Conference Treasurer administers Conference operating and program
funds that are received from churches, boards and agencies, and individuals of the Conference, in
accordance with the budget and other directives of the Conference and of the respective boards and
agencies. The Treasurer administers income from such funds and other revenue related to the
Conference’s programs, and disburses funds to Conference boards and agencies and other recipients in
accordance with the stipulations of the donors and of the Conference.
2. Basis of Presentation. The Conference Treasurer reports information regarding its financial position
and activities in accordance with the Statement of Financial Accounting Standards (SFAS) No. 117,
Financial Statements of Not-for-Profit Organizations. Under SFAS No. 117, the organization is
required to report information regarding its financial position and activities according to three classes
of net assets: unrestricted net assets, temporarily restricted net assets and permanently restricted net
assets based upon the existence or absence of donor-imposed restrictions. In addition, the Corporation
reports information regarding contributions in accordance with SFAS No. 116, Accounting for
Contributions Received and Contributions Made. In accordance with SFAS No. 116, contributions
received are recorded as restricted, temporarily restricted, or permanently restricted support, depending
on the existence and/or nature of any donor restrictions.
3. Basis of Accounting. The accompanying financial statements have been prepared on the accrual basis
of accounting in accordance with generally accepted accounting principles.
4. Cash Equivalents. Cash equivalents consist of short-term, highly liquid investments which are readily
convertible into cash within ninety days of purchase.
5. Revenue and Support. The Conference Treasurer records support, revenue, and expenses in the years
to which they apply, as specified by the Conference and as designated by the respective contributors.
The Conference Treasurer recognizes as receivable those items of support and revenue that are
designated for the present fiscal year but are received subsequent to year end. Similarly, the
Conference Treasurer recognizes as payable those program funds that are designated for distribution
in the present fiscal year but which remain unpaid as of year end.
6. Marketable Securities. Funds that are not expected to be required for immediate operation of the
Conference are maintained in various short-term investments. Such investments are reported at market
value at December 31, 2005.
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TENNESSEE ANNUAL CONFERENCE OF THE UNITED METHODIST CHURCH
CONFERENCE TREASURER
NOTES TO THE FINANCIAL STATEMENTS (continued)
8. Functional Allocation of Expenses. The costs of providing the various programs and other activities
have been summarized on a functional basis in the statement of activities. Accordingly, certain costs
have been allocated among the programs and supporting services benefited.
10. Income taxes. The Conference Treasurer is recognized as a not-for-profit entity that is exempt from
federal income taxes under Section 501( C ) (3) of the Internal Revenue Code. Therefore, no
provision has been made for federal income taxes in the accompanying financial statements.
Temporarily restricted net assets are those assets that are designated by action of the Tennessee Annual
Conference of the United Methodist Church for program ministries of the respective Conference boards
and agencies. Permanently restricted net assets consist of endowment fund investments, the income from
which is expendable for clergy pensions and other designated purposes.
Restricted assets include certain assets that are maintained by the Treasurer on behalf of certain boards and
agencies for investment and administration. These are as follows:
Temporarily restricted net assets total $ 3343507 as of December 31, 2005 and permanently restricted net
assets total $ 425000 as of December 31, 2005, bringing total restricted net assets to $ 3768507.
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TENNESSEE ANNUAL CONFERENCE OF THE UNITED METHODIST CHURCH
CONFERENCE TREASURER
NOTES TO THE FINANCIAL STATEMENTS (continued)
NOTE C – CONTINGENCIES:
The financial statements have been prepared to reflect the effect of allocation among the funds of payment
made during the year ended December 31, 2005, in a settlement resulting from mediation of a claim
brought against the Conference. On April 2, 2005, the Tennessee Annual Conference of the United
Methodist Church, in a special session, resolved to allocate payment among the funds as follows;
Contingency $ 100000
Connectional Ministries 100000
Camp Maintenance 2764
Camp Fund 277236
NAUMF Reserve 53027
Total $ 533027
The Conference Treasurer maintains depository accounts for Conference funds with Suntrust Bank,
Nashville, Tennessee. Accounts at banking institutions are insured by the Federal Deposit Insurance
Corporation (FDIC) up to $ 100000. At December 31, 2005, Conference funds on deposit with Suntrust
Bank exceeded the insured amounts by $ 316076.
In addition, the Conference Treasurer has arranged with Suntrust Bank to invest on a daily basis certain
funds that are not expected to be required immediately for Conference financial operations, but may be
required for current operations at any given time. The Conference Treasurer has invested in commercial
paper that has been issued by major corporations. As of December 31, 2005, the amounts of these
investments were $ 816000.
The Conference Treasurer also maintains investment accounts with Morgan Keegan, an investment
brokerage firm. These funds are not expected to be required for current financial operations. The value of
these investments at December 31, 2005 was $ 1473565.
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