2016 Financial Statements

---

2016 Financial Statements

we belong

Index of Statements Statement of Assets, Liabilities, and Net Assets..................................................................................... Page 1 Statement of Revenues, Expenses, and Changes in Net Assets......................................................... Page 2 Statement of Cash Flows.......................................................................................................................... Page 3 Self-Funded and Council Designated Fund Balances......................................................................... Page 4 Restricted Fund Balances........................................................................................................................ Page 5 Notes to 2016 Financial Statements........................................................................................................ Page 6 2017 Budget for Ministry: Summary Comparison and Notes............................................................. Page 7-8 2017 Budget for Ministry: Details.............................................................................................................. Page 9 Gather • Grow • Give Guided by the Gospel, it is the mission of Christ the King Lutheran Church to make disciples for Jesus Christ by inviting and welcoming all to serve God and God’s people by joining in: • Gathering for worship and fellowship • Growing in faith and understanding • Giving of ourselves and our resources

1900 7th St. NW, New Brighton, MN 55112 • 651-633-4674 • lifeatctk.org

2016 Assets, Liabilities, and Net Assets Christ the King Lutheran Church Statement of Assets, Liabilities, and Net Assets Accrual Basis December 31, 2016 and 2015

Operating Assets Cash and Cash Equivalents Accounts Receivable (Capital is Mission Land) Pledges Receivable Prepaid Insurance and Other Expenses Internal Loan Receivable Land, Building and Equipment Total Assets

Liabilities and Net Assets Accounts Payable Benevolences Payable Accrued Vacation Accrued Sabbatical Replacement Other Accrued Expenses Deferred Revenue--Prepaids Deferred Revenue--Pledges Receivable Internal Loan Payable - Current Portion Total Current Liabilities Internal Loan Payable - Long Term Portion Total Long Term Liabilities

277,893 343

Council Self Funded Designated 11,457

91,246

Donor Restricted 67,294

10,918

Capital 174,636 10,000 242,267 128

11,457

91,246

406,584

12,321,500

21,612 429,077 12,189,500

12,748,531

13,546,972

13,053,212

73,590 9,600 41,300 4,152 242,267 93,939 464,848

6,804 8,536 12,600 32,400 3,112 9,450 89,786 162,688

73,590 9,600 41,300 4,152

128,642

-

Total 2015

622,526 10,343 242,267 11,046 339,290 12,321,500

339,290 289,154

Total 2016

403,023 10,000

-

-

-

242,267 93,939 336,206

-

-

-

245,351 245,351

245,351 245,351

339,290 339,290

-

581,557

710,199

501,978

Total Liabilities

128,642

-

-

Net Assets (See Notes)

160,512

11,457

91,246

406,584

12,166,974

12,836,773

12,551,233

Total Liabilities and Net Assets

289,154

11,457

91,246

406,584

12,748,531

13,546,972

13,053,212

See notes to financial statements.

Financial Statements

2017 Annual Meeting Part I | Page 1

2016 Revenues, Expenses, and Net Assets Christ the King Lutheran Church Statement of Revenues, Expenses, and Changes in Net Assets Accrual Basis For the Year Ended December 31, 2016 and 2015

Operating Support and Revenue Contributions Interest and Dividends Other Income Fiscal Agent Revenue Change in Building/Equipment Value to Insured Value Released from Restriction: Offering Prepaid for Future Year Capital Funds Redirected to Operating Capital Funds Used for Restricted Three Year Allocated Funds Restricted Used for Operations Total Support and Revenue Expenses Pastor/Staff Salaries & Benefits Stewardship Benevolences Adult Education Children's Ministry Church Property Confirmation Kitchen Evangelism/Outreach Global Missions Fellowship Social Ministry Shared Ministry Local Mission Partners Worship & Music Personnel Pastor/Staff Expenses Congregation Council Congregation Care Creation Care Youth Ministry Columbarium Administration Fiscal Agent Expense Miscellaneous Equipment Expense Other Direct Program Expenses Meals/Food Expense Socials/Fellowship Expense Repairs and Maintenance Bank Charges Stewardship/Capital Campaign Expense 4M Appeal New Initiative Church Building Improvements/Office Remodel Interest Expense - Bank Mortgage Interest Expense - Internal Loan Total Expenses

Change in Net Assets

Council Donor Self Funded Designated Restricted

973,338 6,381

17 17,744

260,969

Capital

216,098

23,608 39,861 132,000

71,726

(71,726) 25,000

84,043 1,135,489

727,346 4,135 95,972 9,140 6,908 110,597 6,128 6,868 9,134 1,440 1,637 177 13 1,590 18,422 2,251 52,746

(25,000)

(84,043) 63,470

17,761

130,199

323,098

-

1,670,017

1,845,477

743,911 3,042 259,135 8,516 8,295 117,414 7,947 7,564 11,059 553 1,043 541 300 909 23,077 1,730 99,269 235 1,490 6 27,243 1,052 52,817 17,817 6,221 19,938 23,865 9,277 2,780 83,424 14,819 12,104

17,588 1,239

86,686

93,951

1,384,477

1,567,393

(6,218)

16,522

43,513

229,148

285,541

278,084

84,865

98

25,903

1,843 1,821 39,804 724 9,799

6,574 3,202 53,981 2,807

2,576

-

1,521,364 12,424 75,589 236,100

69,688

515 2,040

49,953

1,132,913

1,450,422 17,744 29,989 39,861 132,000

Total 2015

727,346 4,135 181,353 11,179 6,908 110,695 6,128 6,868 9,134 1,440 27,540 177 13 1,590 18,422 2,251 52,746 1,815 28,484 1,821 49,953 39,804 724 9,799 6,574 3,202 53,981 2,807 17,588

1,815 26,641

Total 2016

Net Assets, Beginning of Year

157,936

17,675

74,724

363,071

11,937,826

12,551,232

12,273,151

Net Assets, End of Year

160,512

11,457

91,246

406,584

12,166,974

12,836,773

12,551,235

See notes to financial statements.

Page 2 | 2017 Annual Meeting Part I

Financial Statements

2016 Cash FlowsChurch Christ the King Lutheran Statement of Cash Flows For the Years Ended December 31, 2016 and 2015

2016 Cash Flows from Operating Activities: Change in Net Assets Cash Provided (Used) by Current Assets and Liabilities Accounts Receivable Notes Receivable Pledges Receivable Prepaid Expenses Accounts Payable Benevolences Payable Accrued Liabilities Deferred Revenue--Pledges Receivable Deferred Revenue--Prepaids Net Cash Flow from Operating Activities Cash Flows from Investing Activities: Increase in Fixed Assets Book Value (non-cash) Net Cash Flow from Investing Activities Cash Flows from Financing Activities: Repayment of Mortgage Payable to Bank Net Cash Flow from Financing Activities

2015

285,541

(343) -

278,082

(10,000) 1,125

(242,267) 10,565 66,786 (8,536) 2,788 242,267 (5,298)

(63,864)

351,503

234,783

(132,000)

(236,100)

(132,000)

(236,100)

-

(21,612) 6,804 (3,865) 48,112 -

-

(523,785)

-

(523,785)

219,503

(525,102)

Cash, January 1

403,023

928,125

Cash, December 31

622,526

403,023

17,588

12,104

Net Increase (Decrease) in Cash

Other Cash Flow Information: Cash Paid for Interest - Internal Loan See notes to financial statements.

Financial Statements

2017 Annual Meeting Part I | Page 3

2016 Self-Funded and Council Designated Balances Christ the King Lutheran Church

Self-Funded and Council Designated Fund Balances as of December 31, 2016 Self-Funded Activity Fund Balances Adult Education Funeral Fellowships Lydia's Place Staff Discretionary Van Fund Total Self-Funded Activity Fund Balances

(243) 1,790 57 702 9,151 11,457

Council Designated Fund Balances: Property Replacement Fund Reserve Fund Children/Youth Sunday School Offering Total Council Designated Fund Balances

Page 4 | 2017 Annual Meeting Part I

38,667 52,005 574 91,246

Financial Statements

2016 Restricted Funds

Christ the King Lutheran Church

Restricted Fund Balances as of December 31, 2016 Restricted Fund Balances: Donor Restricted for Church Projects and Activities: Aaron Larson Memorial ASP Scholarship Fund Adult Education Block Party CFM Columbarium Community Garden Confirmation Scholarships Congregation Care Cristo Rey Fellowship GM Traveler Scholarships Grant Listening to Our Neighbors Grant Member Restricted Gifts Memorials Memorial Gift--Stout Offering Prepaid for 2017 Operating Fund Other Property Women's and Children's Counseling Worship and Music Young Adult Faith Formation Youth Youth Appalachia Service Project Youth Fundraising Total Donor Restricted for Church Projects and Activities:

8,505 4,631 6,275 6,446 9,266 2,164 3,259 4,708 1,042 1,035 5,000 4,000 20,323 30,507 17,518 71,557 1,195 175 32,827 72,501 1,830 3,440 12,271 20,752 341,228

Donor Restricted for External Benevolences: Benev: Counseling Services Benev: ELCA Scholarship Fund Benev: Global Mission Benev: Local Mission Partners Benev: Social Ministry Benev: Other Total Donor Restricted for External Benevolences: Total Restricted Fund Balances

Financial Statements

1,768 5,499 26,173 3,296 24,275 4,346 65,356 406,584

2017 Annual Meeting Part I | Page 5

Christ the King Lutheran Church Notes to Financial Statements Fiscal Year ended December 31, 2016

Notes on 2016 Financial Statements Financial statements for 2016 and 2015 are prepared on the accrual basis of accounting whereby revenue and support are recognized when earned and expenses are recongized when incurred.

Financial reports are prepared substantially in accordance with Generally Accepted Accounting Principles (GAAP), with certain departures from GAAP including: - Land will be restated at management's estimated current value. - Depreciable assets are reported at insured value. - Depreciation expense will not be recorded.

Internal financial statements are prepared using fund accounting to report financial activity in self-balancing funds to provide informative details to the staff and the Finance Committee, Council, and the Congregation: Operating

General operations of the Church; the Annual Operating Budget is prepared for this fund. Donor-restricted gifts that will be used for budgeted activities within the fiscal year may be recorded in this fund.

Self-Funded

Financial activity related to ‘pass through’ undertakings outside of the annual operating budget, such as fellowship dinners where monies collected cover meal costs.

Council Designated

Reserve fund designated by the Council. Additions to and Uses of the Reserve Fund are at the Council’s discretion.

Donor Restricted

Financial activity related to donor-restricted contributions are released to be used for Church activities or expensed for external purposes such as benevolences.

Capital

Financial activity related to donor-restricted contributions to be used for purposes such as real estate improvements, debt payments (principal and interest), equipment and property purchases and leases, and major repairs and maintenance.

Net Assets - Capital Fund as of 12/31/16 is comprised of: Unrestricted Net Assets Temporarily Restricted Net Assets Temporarily Restricted Net Assets - Reserve for New Initiatives Fund Temporarily Restricted Net Assets - Reserve for Property Improvements Total Net Assets - Capital Fund

Page 6 | 2017 Annual Meeting Part I

11,982,209.61 85,571.32 47,193.34 52,000.00 12,166,974.27

Financial Statements

2017 Budget for Ministry: Summary Comparison

Financial Statements

2017 Annual Meeting Part I | Page 7

Notes on 2017 Budget Summary Comparison

Page 8 | 2017 Annual Meeting Part I

Financial Statements

2017 Proposed Budget for Ministry—Detail

Financial Statements

2017 Annual Meeting Part I | Page 9