Financial Statements and Report of Independent
Certified Public Accountants
The Salvation Army of the Twin Cities
(Minneapolis and Saint Paul)
September 30, 2013 and 2012
Contents
Page
Report of Independent Certified Public Accountants
3
Financial Statements
Statements of financial position
5
Statements of activities and changes in net assets
6
Statements of functional expenses
8
Statements of cash flows
10
Notes to financial statements
11
Supplementary Information
Schedules of functional expenses - Corps Community Centers
26
Grant Thornton LLP
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REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
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Divisional Finance Board
The Salvation Army Northern Divisional Headquarters
Report on the financial statements
We have audited the accompanying financial statements of The Salvation Army of the Twin Cities
(Minneapolis and Saint Paul) (the Twin Cities) (a unit of The Salvation Army, an Illinois non-forprofit corporation), which comprise the statements of financial position as of September 30, 2013
and 2012, and the related statements of activities and changes in net assets, functional expenses,
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 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 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 audits to obtain
reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditor’s
judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Twin Cities’ preparation and fair presentation of the
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 Twin Cities’ 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 financial
statements.
Grant Thornton LLP
U.S. member firm of Grant Thornton International Ltd
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 financial statements referred to above present fairly, in all material respects,
the financial position of the Twin Cities as of September 30, 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 financial statements as
a whole. The schedules of functional expenses - Corps Community Centers for the years ended
September 30, 2013 and 2012, are presented for purposes of additional analysis and are not a
required part of the financial statements. Such supplementary information is the responsibility
of management and was derived from and relates directly to the underlying accounting and other
records used to prepare the financial statements. The information has been subjected to the
auditing procedures applied in the audits of the financial statements and certain additional
procedures. These additional procedures included comparing and reconciling the information
directly to the underlying accounting and other records used to prepare the financial statements
or to the financial statements themselves, and other additional procedures in accordance with
auditing standards generally accepted in the United States of America. In our opinion, the
supplementary information is fairly stated, in all material respects, in relation to the financial
statements as a whole.
Chicago, Illinois
February 27, 2014
Grant Thornton LLP
U.S. member firm of Grant Thornton International Ltd
The Salvation Army of the Twin Cities
(Minneapolis and Saint Paul)
STATEMENTS OF FINANCIAL POSITION
September 30, 2013, with comparative totals for 2012
2013
Unrestricted
General
operating
ASSETS
CURRENT ASSETS
Cash and cash equivalents
Accounts receivable (net of allowance of $3,416 for the years
ended September 30, 2013 and 2012)
Pledges receivable, net
Other assets
Due from other Salvation Army units
$
Total current assets
Investments held at Central Territorial Headquarters
Land, buildings and equipment, net of depreciation
TOTAL ASSETS
Land,
buildings and
equipment
Board
designated
1,082,347
$
-
$
-
Total
$
1,082,347
Temporarily
restricted
$
17,829
Permanently
restricted
$
-
2012
Total
Total
$
1,100,176
$
1,052,954
850,054
25,470
37,573
437,295
-
-
850,054
25,470
37,573
437,295
-
-
850,054
25,470
37,573
437,295
857,255
11,833
50,561
133,028
2,432,739
-
-
2,432,739
17,829
-
2,450,568
2,105,631
10,597,596
-
11,170,500
-
40,312,639
21,768,096
40,312,639
889,118
-
4,235,856
-
26,893,070
40,312,639
25,253,864
40,675,458
$ 13,030,335
$
11,170,500
$
40,312,639
$
64,513,474
$
906,947
$
4,235,856
$
69,656,277
$
68,034,953
$
$
-
$
48,998
162,377
$
2,001,359
610,690
162,377
$
4,500
-
$
-
$
2,005,859
610,690
162,377
$
1,722,853
302,840
3,692
232,174
LIABILITIES AND NET ASSETS
CURRENT LIABILITIES
Accounts payable and accrued expenses
Due to other Salvation Army units
Deferred revenue
Current portion of notes and mortgages payable
Total current liabilities
Notes payable
Mortgages payable
Total liabilities
NET ASSETS
Unrestricted
Temporarily restricted
Permanently restricted
Total net assets
TOTAL LIABILITIES AND NET ASSETS
1,952,361
610,690
2,563,051
-
211,375
2,774,426
4,500
-
2,778,926
2,261,559
-
-
879,002
1,902,288
879,002
1,902,288
-
-
879,002
1,902,288
879,002
2,064,665
2,563,051
-
2,992,665
5,555,716
4,500
-
5,560,216
5,205,226
10,467,284
-
11,170,500
-
37,319,974
-
58,957,758
-
902,447
-
4,235,856
58,957,758
902,447
4,235,856
57,565,844
1,028,027
4,235,856
10,467,284
11,170,500
37,319,974
58,957,758
902,447
4,235,856
64,096,061
62,829,727
$ 13,030,335
$
11,170,500
The accompanying notes are an integral part of these statements.
5
$
40,312,639
$
64,513,474
$
906,947
$
4,235,856
$
69,656,277
$
68,034,953
The Salvation Army of the Twin Cities
(Minneapolis and Saint Paul)
STATEMENTS OF ACTIVITIES AND CHANGES IN NET ASSETS
Year ended September 30, 2013, with comparative totals for 2012
2013
Unrestricted
General
operating
Public support and other revenues
Public support - direct
Public contributions
Associated organizations
Public support - indirect
United Way allocations
$ 19,496,030
97,833
Total public support
Land,
buildings and
equipment
Board
designated
$
1,628,414
-
$
-
Total
$
21,124,444
97,833
Temporarily
restricted
$
41,643
-
Permanently
restricted
$
-
2012
Total*
Total
$
21,166,087
97,833
$ 19,116,424
662,039
760,486
-
-
760,486
-
-
760,486
852,926
20,354,349
1,628,414
-
21,982,763
41,643
-
22,024,406
20,631,389
-
-
7,489,281
6,878,692
Fees and grants from government agencies
7,489,281
-
-
7,489,281
Other revenues
Program service fees
Public sales
Investment income
Gain (loss) on sale of land, buildings and equipment
Miscellaneous income
937,707
13,552
1,371,975
8,191
52,603
132,533
-
-
937,707
13,552
1,504,508
8,191
52,603
114,609
-
-
937,707
13,552
1,619,117
8,191
52,603
945,964
17,659
1,335,101
(191,869)
59,583
2,384,028
132,533
-
2,516,561
114,609
-
2,631,170
2,166,438
Total other revenues
Net assets released from temporary restrictions
Total support and other revenues (expense)
Expenses
Program services
Corps Community Centers
Booth Brown House
Harbor Light Center
Booth Manor
Volunteer services
Social services
Total program services
Supporting services
Management and general
Fundraising
Total supporting services
Total expenses
Excess (deficit) of revenues and support over expenses
Board-designated transfers
Transfers from (to) other Salvation Army units
INCREASE (DECREASE) IN NET ASSETS
Net assets at beginning of year
Net assets at end of year
281,832
-
-
281,832
(281,832)
-
-
-
30,509,490
1,760,947
-
32,270,437
(125,580)
-
32,144,857
29,676,519
5,795,751
1,319,995
8,022,521
58,797
225,523
9,609,964
-
766,989
174,948
341,682
41,521
6,562,740
1,494,943
8,364,203
58,797
225,523
9,651,485
-
-
6,562,740
1,494,943
8,364,203
58,797
225,523
9,651,485
6,086,064
1,149,174
7,919,149
89,671
209,109
7,716,974
25,032,551
-
1,325,140
26,357,691
-
-
26,357,691
23,170,141
1,296,487
3,739,308
-
2,671
1,046
1,299,158
3,740,354
-
-
1,299,158
3,740,354
1,143,995
3,614,225
5,035,795
-
3,717
5,039,512
-
-
5,039,512
4,758,220
-
-
31,397,203
27,928,361
-
747,654
1,748,158
-
518,680
(72,156)
-
1,266,334
1,676,002
30,068,346
-
1,328,857
31,397,203
441,144
1,760,947
(1,328,857)
873,234
362,904
539,533
(854,370)
(678,601)
491,466
657,748
518,680
1,343,581
227,976
(179,643)
1,391,914
9,123,703
$ 10,467,284
10,942,524
$
11,170,500
*See complete 2012 statement of activities and changes in net assets on page 7.
The accompanying notes are an integral part of this statement.
6
37,499,617
$
37,319,974
(125,580)
(125,580)
57,565,844
$
58,957,758
1,028,027
$
902,447
4,235,856
$
4,235,856
$
62,829,727
61,153,725
64,096,061
$ 62,829,727
The Salvation Army of the Twin Cities
(Minneapolis and Saint Paul)
STATEMENT OF ACTIVITIES AND CHANGES IN NET ASSETS
Year ended September 30, 2012
Unrestricted
Land,
General
operating
Board
designated
buildings and
equipment
Total
Temporarily
restricted
Permanently
restricted
Total
Public support and other revenues
Public support - direct
$ 17,831,793
662,039
Public contributions
Associated organizations
Public support - indirect
United Way allocations
Total public support
Fees and grants from government agencies
$
1,008,680
-
$
-
$
18,840,473
662,039
$
201,151
-
$
74,800
-
$
19,116,424
662,039
852,926
-
-
852,926
-
-
852,926
19,346,758
1,008,680
-
20,355,438
201,151
74,800
20,631,389
6,878,692
-
-
6,878,692
-
-
6,878,692
945,964
17,659
1,112,454
23,101
54,121
131,457
5,462
(214,970)
-
945,964
17,659
1,243,911
(191,869)
59,583
91,190
-
-
945,964
17,659
1,335,101
(191,869)
59,583
2,153,299
136,919
(214,970)
2,075,248
91,190
-
2,166,438
279,572
-
279,572
(279,572)
-
-
28,658,321
1,145,599
(214,970)
29,588,950
12,769
74,800
29,676,519
5,362,185
974,226
7,595,029
89,671
209,109
7,691,603
-
723,879
174,948
324,120
25,371
6,086,064
1,149,174
7,919,149
89,671
209,109
7,716,974
-
-
6,086,064
1,149,174
7,919,149
89,671
209,109
7,716,974
21,921,823
-
1,248,318
23,170,141
-
-
23,170,141
1,141,324
3,613,522
-
2,671
703
1,143,995
3,614,225
-
-
1,143,995
3,614,225
4,754,846
-
3,374
4,758,220
-
-
4,758,220
Other revenues
Program service fees
Public sales
Investment income
Gain(loss) on sale of land, buildings and equipment
Miscellaneous income
Total other revenues (expense)
Net assets released from temporary restrictions
Total support and other revenues (expense)
Expenses
Program services
Corps Community Centers
Booth Brown House
Harbor Light Center
Booth Manor
Volunteer services
Social services
Total program services
-
Supporting services
Management and general
Fundraising
Total supporting services
Total expenses
Excess (deficit) of revenues and support over expenses
Board-designated transfers
Transfers from (to) other Salvation Army units
INCREASE (DECREASE) IN NET ASSETS
-
1,251,692
27,928,361
-
-
27,928,361
1,981,652
1,145,599
(1,466,662)
1,660,589
12,769
74,800
1,748,158
(299,760)
281,610
(519,371)
(631,167)
819,131
277,401
(72,156)
-
-
(72,156)
1,963,502
(4,939)
(370,130)
1,588,433
12,769
74,800
1,676,002
7,160,201
Net assets at beginning of year
Net assets at end of year
26,676,669
$
9,123,703
10,947,463
$
10,942,524
The accompanying notes are an integral part of this statement.
7
37,869,747
$
37,499,617
55,977,411
$
57,565,844
1,015,258
$
1,028,027
4,161,056
$
4,235,856
61,153,725
$
62,829,727
The Salvation Army of the Twin Cities
(Minneapolis and Saint Paul)
STATEMENTS OF FUNCTIONAL EXPENSES
Year ended September 30, 2013, with comparative totals for 2012
2013
Program services
Corps
Community
Centers
Salaries
Health and retirement
Payroll taxes
Professional fees
Supplies
Telephone
Occupancy
Furniture and equipment
Printing, publications and postage
Transportation
Conferences and meetings
Assistance to individuals
Organization dues
Awards and grants
Interest expense
Other expenditures
Contribution - World Services
Appropriation to other funds
Supporting services to Northern Divisional
Headquarters
Depreciation
Total expenses
$
2,233,106
485,951
202,480
34,609
432,478
74,727
964,881
189,806
38,849
340,721
61,303
99,525
9,308
28,143
15,184
24,341
124,163
-
Booth
Brown
House
$
436,176
766,989
$
6,562,740
643,079
153,481
54,173
8,714
41,853
7,812
240,103
59,536
834
16,052
2,835
21,331
410
2,002
5,008
4,100
-
Harbor
Light
Center
$
58,672
174,948
$
1,494,943
3,349,525
785,844
308,032
215,210
1,567,982
35,872
776,580
80,395
10,690
97,749
17,256
115,617
2,785
494
35,795
19,313
-
Booth
Manor
$
603,382
341,682
$
8,364,203
$
Supporting services
Volunteer
services
20,704
9,307
369
1,227
4,858
1,634
817
1,202
820
6,641
2,975
541
35
2,659
2,463
2,545
-
$ 137,489
39,444
13,261
4,261
1,659
1,100
18,047
2,900
3,384
2,718
515
625
120
-
-
-
58,797
$ 225,523
Social
services
$
$
*See complete 2012 statement of functional expenses on page 9.
The accompanying notes are an integral part of these statements.
8
1,792,635
356,538
161,498
133,705
81,455
20,693
158,886
71,811
23,053
112,009
27,408
5,445,957
5,875
41,084
508
1,471
99,660
90,668
Total
$
8,176,538
1,830,565
739,813
397,726
2,130,285
141,838
2,159,314
405,650
77,630
575,890
112,292
5,682,971
19,038
74,382
15,692
69,198
249,781
90,668
985,050
41,521
2,083,280
1,325,140
9,651,485
$ 26,357,691
Management
and general
$
594,727
115,918
50,434
273,797
12,292
7,686
60,002
22,930
9,644
36,554
6,599
3,056
164
-
Fundraising
$
102,684
2,671
$
1,299,158
1,585,925
129,731
130,200
163,230
119,164
7,281
63,263
49,350
1,058,500
66,872
66,284
2,799
16
1,059
-
$
295,634
1,046
$
3,740,354
Total
2012
Total*
2,180,652
245,649
180,634
437,027
131,456
14,967
123,265
72,280
1,068,144
103,426
72,883
5,855
16
1,223
-
$ 10,357,190
2,076,214
920,447
834,753
2,261,741
156,805
2,282,579
477,930
1,145,774
679,316
185,175
5,682,971
24,893
74,398
15,692
70,421
249,781
90,668
$ 9,740,127
1,954,532
824,968
764,764
1,732,745
157,088
2,227,333
428,140
1,085,091
677,933
194,683
3,987,561
31,038
46,532
29,254
76,085
257,977
88,027
398,318
3,717
2,481,598
1,328,857
2,372,791
1,251,692
5,039,512
$ 31,397,203
$ 27,928,361
Total
$
The Salvation Army of the Twin Cities
(Minneapolis and Saint Paul)
STATEMENT OF FUNCTIONAL EXPENSES
Year ended September 30, 2012
Program services
Corps
Community
Centers
Salaries
Health and retirement
Payroll taxes
Professional fees
Supplies
Telephone
Occupancy
Furniture and equipment
Printing, publications and postage
Transportation
Conferences and meetings
Assistance to individuals
Organization dues
Awards and grants
Interest expense
Other expenditures
Contribution - World Services
Appropriation to other funds
Supporting services to Northern Divisional
Headquarters
Depreciation
Total expenses
$
2,076,154
465,238
156,669
49,992
346,372
69,434
939,126
139,978
37,482
311,975
43,658
107,203
10,398
22,591
24,144
25,387
136,049
-
Booth
Brown
House
$
400,335
723,879
$
6,086,064
512,865
102,037
49,054
8,147
18,186
7,367
152,162
41,040
797
14,727
5,607
11,742
402
1,938
3,189
4,054
-
Harbor
Light
Center
$
40,912
174,948
$
1,149,174
3,158,624
763,923
279,959
273,226
1,218,753
39,494
850,336
80,127
10,109
112,381
15,708
122,756
1,400
1,069
21,173
18,599
-
Booth
Manor
$
627,392
324,120
$
7,919,149
Supporting services
Volunteer
services
31,371
18,205
930
526
10,013
2,720
516
3,892
602
12,774
2,601
35
2,083
858
2,518
-
$
27
$
129,957
34,444
12,229
698
2,353
959
15,285
3,423
6,129
2,003
1,005
550
74
-
Social
services
$
-
89,671
$
The accompanying notes are an integral part of this statement.
9
209,109
1,702,942
347,731
149,292
138,168
49,751
17,810
165,422
98,553
24,159
96,766
40,879
3,745,860
9,780
18,172
5,110
950
96,757
88,027
Total
$
895,474
25,371
$
7,716,974
7,611,913
1,731,578
648,133
470,757
1,645,428
137,784
2,122,847
367,013
79,278
550,626
109,458
3,987,561
22,565
45,853
29,254
51,631
257,977
88,027
Management
and general
$
1,964,140
1,248,318
$
23,170,141
562,776
109,374
48,328
170,545
13,814
10,063
56,155
18,595
9,087
37,328
2,885
4,193
624
516
-
Fundraising
$
97,041
2,671
$
1,143,995
1,565,438
113,580
128,507
123,462
73,503
9,241
48,331
42,532
996,726
89,979
82,340
4,280
55
23,938
-
Total
$
311,610
703
$
3,614,225
2,128,214
222,954
176,835
294,007
87,317
19,304
104,486
61,127
1,005,813
127,307
85,225
8,473
679
24,454
-
Total
$
408,651
3,374
$
4,758,220
9,740,127
1,954,532
824,968
764,764
1,732,745
157,088
2,227,333
428,140
1,085,091
677,933
194,683
3,987,561
31,038
46,532
29,254
76,085
257,977
88,027
2,372,791
1,251,692
$
27,928,361
The Salvation Army of the Twin Cities
(Minneapolis and Saint Paul)
STATEMENTS OF CASH FLOWS
Years ended September 30,
2013
Cash flows from operating activities
Increase in net assets
Adjustments to reconcile increase in net assets to
net cash provided by operating activities
Depreciation
(Gain) loss on sale of land, buildings and equipment
Property transferred from other Salvation Army units
Net change in realized and unrealized gains in
investments held at Central Territorial Headquarters
Contributions received for long-term purposes
Changes in operating assets and liabilities
Accounts receivable, net
Pledges receivable, net
Other assets
Due from other Salvation Army units
Accounts payable and accrued expenses
Due to other Salvation Army units
Deferred revenue
$
Net cash provided by operating activities
1,266,334
2012
$
1,328,857
(8,191)
(449,335)
1,251,692
191,869
-
(1,128,531)
-
(883,284)
(74,800)
7,201
(13,637)
12,988
(304,267)
283,006
307,850
(3,692)
48,062
78,358
23,585
(52,715)
(139,169)
(482,326)
1,618
1,298,583
Cash flows from investing activities
Purchase of land, buildings and equipment
Increase in investments held at Central Territorial
Headquarters, net
Proceeds from sale of land, buildings and equipment
1,676,002
1,638,892
(516,703)
(979,019)
(510,675)
8,191
(282,486)
254,759
(1,019,187)
(1,006,746)
(232,174)
74,800
(57,087)
(273,970)
Net cash used in financing activities
(232,174)
(256,257)
NET INCREASE IN CASH
AND CASH EQUIVALENTS
47,222
375,889
1,052,954
677,065
Net cash used in investing activities
Cash flows from financing activities
Contributions received for long-term purposes
Principal payments on notes payable
Principal payments on mortgages payable
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
$
1,100,176
$
1,052,954
Supplemental disclosure of cash flow information
Cash paid during the year for interest
$
15,692
$
29,254
The accompanying notes are an integral part of these statements.
10
The Salvation Army of the Twin Cities
(Minneapolis and Saint Paul)
NOTES TO FINANCIAL STATEMENTS
September 30, 2013 and 2012
NOTE A - PURPOSE AND ORGANIZATION
The Salvation Army, founded in 1865, is a not-for-profit international religious organization and charitable
movement organized and operated on a quasi-military pattern and is a branch of the Christian Church. Its
membership includes officers (clergy), soldiers and adherents (laity), members of varied activity groups and
volunteers who serve as advisors, associates and committed participants in its service functions.
The Salvation Army Central Territory (an Illinois not-for-profit corporation, the Central Territory) is an
organization exempt from income taxation under Section 501(a) as an entity described in Section 501(c)(3) of
the Internal Revenue Code (IRC) of 1986, as amended, and is exempt from state income taxes under related
state provisions.
The accompanying financial statements include the combined amounts from 14 separate ledgers, which are the
ultimate responsibility of The Salvation Army Northern Divisional Headquarters (the Northern Division),
which is in turn under the management of the Central Territory. These ledgers are described below, and include
the Twin Cities Fund, 8 Corps Community Centers and one Outpost, the Booth Brown House, the Harbor
Light Center, the Property ledger and the Trust ledger (collectively, The Salvation Army of the Twin Cities).
All significant intercompany accounts and transactions have been eliminated. Both the Northern Division and
the Central Territory provide certain centralized corporate and administrative services to The Salvation Army
of the Twin Cities.
The Salvation Army of the Twin Cities includes the following activities:
Corps Community Centers - The Corps Community Centers and Outpost (also referred to as Worship and Service
Centers) provide a variety of youth and adult programs, including Bible studies, worship services, music
instruction, character-building group activities, after-school programs and summer day camps. The current
Corps Community Centers and Outpost are located at the following addresses:
Minneapolis Central Corps
Minneapolis Parkview Corps
Minneapolis Temple Corps
Noble Worship & Community Center
Harvest Corps
St. Paul Citadel
Lakewood Temple
St. Paul Eastside
Twin Cities Bethel Korean Outpost
2727 Central Avenue NE, Minneapolis, MN 55418-3210
2024 Lyndale Avenue N, Minneapolis, MN 55411-1451
1604 East Lake Street, Minneapolis, MN 55407-1897
10011 Noble Parkway, Brooklyn Park, MN 55433
10347 Ibis Street NW, Coon Rapids, MN 55433
401 West Seventh Street, St. Paul, MN 55102
2080 Woodlyn Avenue, Maplewood, MN 55109
1019 Payne Avenue, St. Paul, MN 55101
Burnsville, MN
Booth Brown House - The Booth Brown House Foyer program offers transitional and supportive housing for
older teens and young adults in St. Paul, Minnesota. Beginning in June 2012, Booth Brown House also operates
a drop-in overnight shelter for homeless young adults and teens.
Harbor Light Center - The Harbor Light Center provides emergency shelter and nutrition, chemical dependency
treatment, transitional housing, health care services and spiritual support to its clients.
Booth Manor - Booth Manor represents program services to residents of The Salvation Army’s 157-unit senior
citizen high-rise in Minneapolis.
11
The Salvation Army of the Twin Cities
(Minneapolis and Saint Paul)
NOTES TO FINANCIAL STATEMENTS - CONTINUED
September 30, 2013 and 2012
Volunteer services - By providing volunteers, volunteer services supports other Salvation Army programs.
Social services - The social services program provides individuals and families in crisis with emergency assistance,
food shelf, counseling and referrals.
Management and general - Management and general provides general and administrative support to The Salvation
Army of the Twin Cities’ programs described above.
Fundraising - Fundraising includes costs of special appeals, capital campaign and other fundraising activities.
Contributions, net of expenses and supporting services payments, are distributed primarily to programs and
activities of The Salvation Army of the Twin Cities (including its programs funded by United Way).
Property ledger - This ledger accounts for the land, buildings, improvements and related depreciation for The
Salvation Army of the Twin Cities’ City Programs, the Corps, the Booth Brown House and the Harbor Light
Center.
Trust ledger - This ledger accounts for the investments and related interest for The Salvation Army of the Twin
Cities’ City Programs, the Corps, the Booth Brown House and the Harbor Light Center.
These financial statements do not extend to any other activities and programs administered by the Northern
Division, nor the activities of the Minneapolis Adult Rehabilitation Center.
NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
General
The accompanying financial statements have been prepared in accordance with the national accounting policies
of The Salvation Army. These policies are consistent with accounting principles generally accepted in the
United States of America.
In order to observe restrictions which donors place on grants and other gifts, as well as designations made by
the Board of Trustees/Directors, all assets, liabilities and support and revenue are accounted for in the following
net asset classifications:
Unrestricted net assets - Not subject to donor-imposed stipulations. Unrestricted net assets may be designated for
specific purposes or locations by action of the Board of Trustees/Directors.
Temporarily restricted net assets - Subject to donor-imposed stipulations or legal stipulations that may be fulfilled
by actions of The Salvation Army of the Twin Cities to meet the stipulations or become unrestricted at the date
specified by the donor.
Permanently restricted net assets - Subject to donor-imposed stipulations that they be retained and invested
permanently by The Salvation Army. The donors require The Salvation Army of the Twin Cities to use all or
a part of the investment return on these net assets for specified or unspecified purposes.
12
The Salvation Army of the Twin Cities
(Minneapolis and Saint Paul)
NOTES TO FINANCIAL STATEMENTS - CONTINUED
September 30, 2013 and 2012
Cash and Cash Equivalents
For purposes of these statements, cash equivalents are defined as short-term, highly liquid investments that are
both readily convertible to known amounts of cash and having original maturities of three months or less.
Pledges Receivable
Pledges receivable that are expected to be collected within one year are recorded at net realizable value. Pledges
receivable that are expected to be collected in future years are recorded at their fair value based on the present
value of their estimated future cash flows and are discounted at the rate applicable to the year in which the
pledge was made. Conditional pledges receivable are not recognized until they become unconditional, that is,
when the conditions on which they depend are substantially met.
Amounts on Deposit at Territorial Headquarters
Territorial headquarters has the responsibility for investment activity for all units within the territory for
unrestricted assets, including board-designated assets; temporarily restricted assets; and permanently restricted
assets. The temporarily restricted assets, including the life income funds, and permanently restricted asset
portfolios are maintained on a pooled “mutual fund” accounting basis with the total earnings, investment
expenses, appreciation and depreciation, whether realized or unrealized, being allocated to each participating
account on a pro rata basis.
Income earned on unrestricted assets is distributed to the constituent accounts on the basis of a stated
percentage of the monthly account balances during the year. Amounts deposited may be withdrawn when
required for use by the local units. The excess (deficit) of investment income earned over amounts distributed
is reported as unrestricted board-designated income. The Board of Trustees/Directors generally designates the
use of portions of these excess funds for specified projects for use within the territory.
Investment income and net appreciation (depreciation) on investments of donor endowments, whether
permanently or temporarily restricted are reported as follows:
•
As increases in permanently restricted net assets if the terms of the gift or relevant state law require that
they be added back to the principal of the permanently restricted contributions.
•
As decreases in unrestricted net assets when there are losses that reduce the fair value of the assets of
endowment funds below the required level and as increases in unrestricted net assets when there are gains
that restore the fair value of the assets of endowment funds to the required level.
•
As increases in temporarily restricted net assets until allocated by the Board of Trustees for expenditure in
accordance with donor stipulations.
•
As increases in unrestricted net assets in all other cases.
Land, Buildings and Equipment
Land, buildings and equipment (with a purchase price of $10,000 or more) are stated at cost or, if donated, at
fair value at date of donation.
13
The Salvation Army of the Twin Cities
(Minneapolis and Saint Paul)
NOTES TO FINANCIAL STATEMENTS - CONTINUED
September 30, 2013 and 2012
Support and Revenue
All items of revenue and support are stated on the accrual basis.
Contributions subject to donor-imposed restrictions are recorded as temporarily restricted support and are
reclassified as unrestricted when the donor-imposed restriction has been fulfilled or the stipulated time period
has elapsed. Contributions with restrictions that are met during the fiscal year are recorded as unrestricted
support. Support and revenue are reported as increases in unrestricted net assets unless use of the related assets
is limited by donor-imposed restrictions that are not fulfilled in the accounting period. Gains and losses on
investments and other assets or liabilities are reported as increases or decreases in unrestricted net assets unless
their use is restricted by explicit donor stipulations or by law. All expenses are reported as decreases in
unrestricted net assets. The expiration of the donor-imposed stipulated purpose or the elapsing of the specified
time period, are reported as reclassifications of net assets.
Pledges receivable that are scheduled to be received after the end of the reporting period are shown as increases
in temporarily restricted net assets and are reclassified to unrestricted net assets when the purpose or time
restriction is met. Pledges receivable subject to donor-imposed stipulations that the corpus be maintained
permanently are recognized as increases in permanently restricted net assets.
Donations In-kind and Contributed Services
Material donations in-kind used by The Salvation Army of the Twin Cities’ programs and services (e.g., vehicles,
free rent and equipment) and donated goods distributed (e.g., clothing, furniture and foodstuffs) are recorded
at their estimated fair value as income and expense at the time the items are placed into service or distributed.
Contributed land, buildings and equipment are recorded at fair value at the date of donation as unrestricted
support and revenue unless the use of such contributed assets is restricted by a donor-imposed stipulation.
Contributed services are reported as contributions at their fair value if such services create or enhance nonfinancial assets, would have been purchased if not provided by contribution, require specialized skills and are
provided by individuals possessing such specialized skills. In addition, the appropriate value of donated services
of individuals is recorded as an expense when such services qualify for cost reimbursement from third-party
providers. For the years ended September 30, 2013 and 2012, The Salvation Army of the Twin Cities
recognized revenue and expense in the amount of $4,250,821 and $2,542,852, respectively, for donations inkind.
Expenses
All expenses are stated on the accrual basis and presented in the statements of activities and changes in net
assets and the statements of functional expenses.
Depreciation
Depreciation is provided on buildings, vehicles and equipment (with a purchase price of $10,000 or more) at
straight-line rates based on estimated service lives. A full year of depreciation expense will be recorded in the
year of acquisition or completion of construction. No depreciation is charged in the year of disposition.
14
The Salvation Army of the Twin Cities
(Minneapolis and Saint Paul)
NOTES TO FINANCIAL STATEMENTS - CONTINUED
September 30, 2013 and 2012
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 amounts
reported in the financial statements and accompanying notes. Actual results could differ from those estimates.
Amounts received under certain of The Salvation Army of the Twin Cities’ contracts are subject to review and
audit by the responsible government agency to determine compliance with the contract agreements. In
management’s opinion, no material adjustment to these financial statements will result from such audits, and
no provisions for such adjustments have been included in the accompanying financial statements.
NOTE C - ACCOUNTS RECEIVABLE
The Salvation Army of the Twin Cities evaluates the collectability of its accounts receivable based on the length
of time the receivables are outstanding and the anticipated future collectible amounts based on historical
experience. Accounts receivable are charged to the allowance for doubtful accounts when they are deemed
uncollectible. The Salvation Army of the Twin Cities writes off accounts receivable when they become
uncollectible, and payments subsequently received on such receivables are credited to the allowance for
doubtful accounts.
NOTE D - PLEDGES RECEIVABLE
Pledges receivable include the following at September 30:
Pledges receivable due in:
Less than one year
One year to five years
Less allowance for uncollectible/present value discount
Net pledges receivable
2013
2012
$25,470
-
$11,755
80
25,470
11,835
-
(2)
$25,470
$11,833
NOTE E - TRANSACTIONS WITH RELATED PARTIES
Investments Held by the Central Territory
The Salvation Army of the Twin Cities raises funds from various sources, including bequests, trusts and donorrestricted contributions. Salvation Army policy requires that the investment of assets for all centers of operation
15
The Salvation Army of the Twin Cities
(Minneapolis and Saint Paul)
NOTES TO FINANCIAL STATEMENTS - CONTINUED
September 30, 2013 and 2012
may be made only through the corporate portfolio under the administration of the Board of Trustees of the
Central Territory of The Salvation Army. Assets that are restricted by donors for use in a center of operation
are invested on a pooled mutual fund basis and receive total net rate of return. These invested assets are
reflected as amounts on deposit at Central Territorial Headquarters in the financial statements.
Assets that are remitted for investment by a center of operation or are designated for the use of a center of
operation, receive various fixed rates of interest as determined by the Board of Trustees of the Central Territory
of The Salvation Army. The majority of investments held by the Central Territory on behalf of The Salvation
Army of the Twin Cities are invested in pooled portfolios administered by the Central Territory. These are
identified below for reference purposes as Pooled Portfolios A, B, C, D and E. Pooled Portfolio A currently
pays 1.5% interest; Pooled Portfolio B currently pays 5% interest, but only earnings can be withdrawn until two
years after the date of investment; Pooled Portfolio C currently pays a money market rate of approximately
0.10%. Pooled Portfolios D and E are invested on a pooled mutual fund basis, with monthly earnings, gains
and losses being allocated based on month-end balances. Pooled Portfolio E has a longer-term investment
focus than Pooled Portfolio D.
These investments at September 30, 2013, are as follows:
Investments held at Central Territorial Headquarters
Unrestricted funds
Pooled Portfolio A
Pooled Portfolio B
Pooled Portfolio C
Pooled Portfolio D
Pooled Portfolio E
Interest rate
Balance
1.5%
5%
Money market rate
Various
Various
$10,922,143
3,665,373
3,854,403
495,066
2,831,111
Total unrestricted funds
21,768,096
Temporarily restricted funds
Pooled Portfolio C
Pooled Portfolio D
Pooled Portfolio E
Money market rate
Various
Various
Total temporarily restricted funds
203,076
362,428
323,614
889,118
Permanently restricted funds
Pooled Portfolio E
Various
Total investments held at Central Territorial
Headquarters
4,235,856
$26,893,070
Total investment income is summarized as follows for the year ended September 30, 2013:
Dividends and interest
Net realized and unrealized gain
$ 490,586
1,128,531
Total investment income
$1,619,117
16
The Salvation Army of the Twin Cities
(Minneapolis and Saint Paul)
NOTES TO FINANCIAL STATEMENTS - CONTINUED
September 30, 2013 and 2012
These investments at September 30, 2012, are as follows:
Investments held at Central Territorial Headquarters
Unrestricted funds
Pooled Portfolio A
Pooled Portfolio B
Pooled Portfolio C
Pooled Portfolio D
Pooled Portfolio E
Interest rate
Balance
1.5%
4%
Money market rate
Various
Various
$10,414,080
3,563,598
3,603,621
387,199
2,021,075
Total unrestricted funds
19,989,573
Temporarily restricted funds
Pooled Portfolio C
Pooled Portfolio D
Pooled Portfolio E
Money market rate
Various
Various
Total temporarily restricted funds
408,834
390,535
229,066
1,028,435
Permanently restricted funds
Pooled Portfolio E
Various
Total investments held at Central Territorial
Headquarters
4,235,856
$25,253,864
Total investment income is summarized as follows for the year ended September 30, 2012:
Dividends and interest
Net realized and unrealized gain
$ 451,817
883,284
Total investment income
$1,335,101
Supporting Services to Northern Divisional Headquarters
In accordance with The Salvation Army’s national policy, 10% of certain public support and revenue is to be
shared with the Northern Division. These payments are used as directed by the Divisional Finance Board for
research, community programs, management, general and fundraising expenses, and other supporting services.
The Salvation Army of the Twin Cities recognized $2,481,598 and $2,372,791 of supporting services expense
for the years ended September 30, 2013 and 2012, respectively.
Other Related-Party Transactions
At September 30, 2013 and 2012, The Salvation Army of the Twin Cities had $437,295 and $133,028,
respectively, due from the Northern Divisional Headquarters and other Salvation Army units. The balance due
from the Northern Divisional Headquarters includes stock donations, mail appeal receipts, grants in transit
from trust accounts and adjustment of supporting services assessments.
17
The Salvation Army of the Twin Cities
(Minneapolis and Saint Paul)
NOTES TO FINANCIAL STATEMENTS - CONTINUED
September 30, 2013 and 2012
At September 30, 2013 and 2012, The Salvation Army of the Twin Cities had $610,690 and $302,840,
respectively, due to the Northern Divisional Headquarters and other Salvation Army units primarily
representing supporting services, pension charges, loan payments, mortgage payments and professional fees.
The Salvation Army of the Twin Cities received (transferred) net assets of $518,680 and $(72,156) from (to)
other affiliated operating units for the years ended September 30, 2013 and 2012, respectively. These net assets
primarily consist of transfers to/from The Salvation Army’s Divisional Headquarters and Central Territory.
As described in more detail in note L, The Salvation Army of the Twin Cities has certain mortgages payable to
the Central Territory. During the years ended September 30, 2013 and 2012, The Salvation Army of the Twin
Cities paid $232,174 and $273,970, respectively, as debt service on these mortgages.
NOTE F - PENSION, RETIREMENT AND POST-RETIREMENT BENEFIT PLANS
Employee Pension Plan
Eligible employees participate in The Salvation Army Pension Plan (the Plan) with other Salvation Army
territories, which provides for death, disability and retirement benefits. The Plan is a defined contribution
money purchase plan.
Annual contributions to the Plan are based on a stipulated percentage of employees’ salaries (5.25% in fiscal
year 2013). The Salvation Army of the Twin Cities incurred $330,237 and $332,461 of expenses under the Plan
for the years ended September 30, 2013 and 2012, respectively.
Officers’ Retirement Provision
The Salvation Army has a noncontributory retirement provision for officers which provides retirement benefits
and certain health care and death benefits to retired officers, as defined by The Salvation Army policy governing
such benefits. The Central Territory has total responsibility for the administration of retirement benefits.
Retirement allowances are determined based on active officer allowances and length of service. Provision for
these benefits is made principally by annual assessments to all centers of operation, by designated portions of
legacy income, by earnings on assets designated for retirement benefits and by special appropriations. Annual
amounts charged to The Salvation Army of the Twin Cities and included in expenses for this provision were
$73,801 and $69,351 for the years ended September 30, 2013 and 2012, respectively.
18
The Salvation Army of the Twin Cities
(Minneapolis and Saint Paul)
NOTES TO FINANCIAL STATEMENTS - CONTINUED
September 30, 2013 and 2012
NOTE G - LAND, BUILDINGS AND EQUIPMENT
Land, buildings and equipment are stated at cost or, if donated, at fair value at the date of donation, and consist
of the following at September 30:
Land
Buildings
Vehicles and equipment
Construction in process
Total land, building and equipment
Less accumulated depreciation
Total land, building and equipment less
accumulated depreciation
2013
2012
$ 2,837,079
52,386,712
2,742,075
597,097
$ 2,698,240
52,197,943
2,559,378
150,139
58,562,963
57,605,700
(18,250,324)
(16,930,242)
$ 40,312,639
$ 40,675,458
The use of certain land and buildings is restricted to specific programs of The Salvation Army of the Twin
Cities. These assets, totaling $5,314,318 and $5,477,718 at September 30, 2013 and 2012, respectively, which is
net of accumulated depreciation of $2,866,171 and $2,702,771 at September 30, 2013 and 2012, respectively,
can only be used for their intended programmatic purpose and would need to be sold to a third party for the
same purpose if The Salvation Army of the Twin Cities decided to cease operation of those programs. Any
restriction on the ability to sell the assets would not preempt the requirement to repay the related notes and
mortgages payable, totaling $850,000 at both September 30, 2013 and 2012. Therefore, any timing differences,
or differences between the liability and the amounts received upon sale would be the responsibility of The
Salvation Army of the Twin Cities.
In accordance with the national policy of The Salvation Army, the Central Territory has title to all land and
buildings of The Salvation Army of the Twin Cities. However, The Salvation Army of the Twin Cities has
responsibility for the control over and maintenance of land and buildings which were purchased with funds
from The Salvation Army of the Twin Cities.
19
The Salvation Army of the Twin Cities
(Minneapolis and Saint Paul)
NOTES TO FINANCIAL STATEMENTS - CONTINUED
September 30, 2013 and 2012
NOTE H - TEMPORARILY RESTRICTED NET ASSETS
Temporarily restricted net assets are available for the following purposes at September 30:
2013
Capital additions and renovations
Shelter
Education and camp scholarships
Equipment
Disaster relief
Welfare and support for needy persons
After school and youth programs
Other
Total
2012
$ 56,953
175,135
16,335
166,092
377,898
97,636
12,398
$ 55,029
121,953
186,708
8,489
281,328
313,099
49,024
12,398
$902,447
$1,028,028
NOTE I - PERMANENTLY RESTRICTED NET ASSETS
Permanently restricted net assets of $4,235,856 at both September 30, 2013 and 2012, are restricted to
investment in perpetuity. The earnings from the permanently restricted net asset balances are available for the
operating and temporarily restricted activities of The Salvation Army of the Twin Cities. The investment and
administration of these permanently restricted net assets are under the oversight and control of the Central
Territory.
Endowment Spending Policy
The responsibility for investment of all institutional funds is solely the responsibility of the Board of Trustees
of the Central Territory. The spending policy and how the investment objectives relate to the spending policy,
which is applicable to the endowments herewith presented, are stated as follows:
The Central Territory has a policy of appropriating for distribution each year up to 5% of its endowment fund’s
average fair value over the prior 20 quarters through the calendar year preceding the fiscal year in which the
distribution is planned. In establishing this policy, the Central Territory considered the long-term expected
return on its endowment. Accordingly, over the long-term, the Central Territory expects its endowment assets
to grow at a pace at least equal to inflation. This is consistent with the organization’s objective to maintain the
purchasing power of the endowment assets held in perpetuity or for a specified term as well as to provide
additional real growth through new gifts and investment return.
The Central Territory has adopted investment policies for endowment assets that attempt to provide a
predictable stream of funding to programs supported by its endowment while seeking to maintain the
purchasing power of the endowment assets. Under this policy, as approved by the Board of Trustees, the
endowment assets are invested in a manner that is intended to produce results that exceed the price and yield
results of appropriate benchmarks without putting the assets at imprudent risk.
20
The Salvation Army of the Twin Cities
(Minneapolis and Saint Paul)
NOTES TO FINANCIAL STATEMENTS - CONTINUED
September 30, 2013 and 2012
NOTE J - NET ASSETS RELEASED FROM RESTRICTION
Net assets were released from donor restrictions by incurring expenses satisfying the restricted purposes or by
occurrence of other events specified by the donors for the years ended September 30, 2013 and 2012, as follows:
2013
2012
Education and camp scholarships
Shelter
Capital additions and renovations
Transitional housing
Equipment
Disaster relief
Welfare and support for needy persons
Literacy program
After school and youth programs
Time restriction expired
$ 14,500
121,952
4,717
115,236
18,774
6,653
-
$ 8,500
51,400
100,040
45,087
6,956
3,673
47,516
16,400
Total restrictions released
$281,832
$279,572
NOTE K - DEFERRED GIVING PROGRAMS
The Salvation Army of the Twin Cities is named as a beneficiary in revocable trusts and wills. Since these
revocable trusts and wills are conditional, they are not included in the accompanying statements of financial
position.
21
The Salvation Army of the Twin Cities
(Minneapolis and Saint Paul)
NOTES TO FINANCIAL STATEMENTS - CONTINUED
September 30, 2013 and 2012
NOTE L - MORTGAGES PAYABLE
The Salvation Army of the Twin Cities has mortgages payable at September 30, 2013 and 2012, as follows:
2013
2012
Mortgage payable to the Central Territory due in monthly installments
through December 2014. Interest on this mortgage is 5%.
$ 203,334
$ 357,807
Mortgage payable to the Central Territory due in monthly installments
through May 2013. Interest on this mortgage is 5%.
-
77,701
Non-interest-bearing note with the Housing and Urban
Redevelopment Authority of the City of Saint Paul, Minnesota, due
May 2022.
850,000
850,000
Non-interest-bearing note with Anoka County due May 2026.
254,100
254,100
Non-interest-bearing note with the Minnesota Housing Financing
Authority due November 2037.
585,231
585,231
Non-interest-bearing note with the Family Housing Fund due
November 2037.
172,000
172,000
$2,064,665
$2,296,839
Total
All mortgages are collateralized by the buildings or land they were used to purchase.
Certain of the mortgages payable and note payable (see note M), with maturities at various dates through 2037,
have either 0% interest rates or no stated interest rate and are reported at face value at inception.
At September 30, 2013, scheduled principal repayments for mortgage payable are as follows:
Years ending September 30,
2014
2015
2016
2017
2018
Thereafter
$ 162,377
40,957
1,861,331
Total mortgages payable
$2,064,665
Cash paid for interest on mortgages payable was $15,692 and $29,254 for the years ended September 30, 2013
and 2012, respectively.
22
The Salvation Army of the Twin Cities
(Minneapolis and Saint Paul)
NOTES TO FINANCIAL STATEMENTS - CONTINUED
September 30, 2013 and 2012
NOTE M - NOTES PAYABLE
The Salvation Army of the Twin Cities has notes payable at September 30, 2013 and 2012, as follows:
Non-interest-bearing note with the Minneapolis Community
Development Agency due March 8, 2031.
2013
2012
$879,002
$879,002
At September 30, 2013, scheduled principal repayments for notes payable are as follows:
Years ending September 30,
After 2018
$879,002
Cash paid for interest on notes payable was $-0- for the years ended September 30, 2013 and 2012.
NOTE N - FUNDRAISING AND ADMINISTRATIVE EXPENSE RATIO
The Salvation Army of the Twin Cities’ management and general and fundraising expenses as a percentage of
total expenses are as follows for the year ended September 30, 2013:
Amount
Management and general
Fundraising
Total
Percentage
$1,299,158
3,740,354
4.1%
11.9
$5,039,512
16.0%
The Salvation Army of the Twin Cities’ management and general and fundraising expenses as a percentage of
total expenses are as follows for the year ended September 30, 2012:
Amount
Management and general
Fundraising
Total
Percentage
$1,143,995
3,614,225
4.1%
12.9
$4,758,220
17.0%
NOTE O - LEASE COMMITMENTS
The Salvation Army of the Twin Cities is committed under non-cancelable operating leases for building space
and equipment. Future minimum lease payments under the non-cancelable leases for the year ending
September 30, 2014, are $16,767.
23
The Salvation Army of the Twin Cities
(Minneapolis and Saint Paul)
NOTES TO FINANCIAL STATEMENTS - CONTINUED
September 30, 2013 and 2012
Rental expense for operating leases for the years ended September 30, 2013 and 2012, was $113,750 and
$83,522, respectively.
NOTE P - CONTINGENCIES AND COMMITMENTS
The Salvation Army of the Twin Cities is a defendant in certain lawsuits arising in the normal course of
operations. While outside counsel cannot predict the outcome of such litigation, management does not expect
the outcome to have a material effect on The Salvation Army of the Twin Cities’ financial position or results
of operations.
NOTE Q - CONCENTRATION OF CREDIT RISK
Certain financial instruments subject The Salvation Army of the Twin Cities to credit risk. Those financial
instruments consist primarily of cash and accounts receivable. The Salvation Army of the Twin Cities maintains
its cash balance in financial institutions, and at times these balances may exceed federally insured limits. The
Salvation Army of the Twin Cities has not experienced any losses in such accounts and believes it is not exposed
to any significant credit risk on cash. Concentration of credit risk with respect to receivables is limited due to
a large number of small accounts and low average cash balance.
NOTE R - INCOME TAX POSITION
The Central Territory (an Illinois not-for-profit corporation) is an organization exempt from income taxation
under Section 501(a) as an entity described in Section 501(c)(3) of the IRC of 1986, as amended, and is exempt
from state income taxes under related state provisions. Nevertheless, the Central Territory may be subject to
tax on income unrelated to its exempt purpose, unless that income is otherwise excluded by the IRC. The tax
years ending 2010, 2011, 2012 and 2013 are still open to audit for both federal and state purposes.
The Salvation Army of the Twin Cities has evaluated its tax positions and determined that it does not have any
uncertain tax positions that meet the criteria under Accounting Standards Codification Topic 740, Income
Taxes.
NOTE S - SUBSEQUENT EVENTS
The Salvation Army of the Twin Cities evaluated its September 30, 2013, financial statements for subsequent
events through February 27, 2014, the date the financial statements were available to be issued. The Salvation
Army of the Twin Cities is not aware of any additional subsequent events that would require recognition or
disclosure in the financial statements.
24
SUPPLEMENTARY INFORMATION
The Salvation Army of the Twin Cities
(Minneapolis and Saint Paul)
SCHEDULES OF FUNCTIONAL EXPENSES - CORPS COMMUNITY CENTERS
Year ended September 30, 2013, with comparative totals for 2012
2013
Salaries
Health and retirement
Payroll taxes
Professional fees
Supplies
Telephone
Occupancy
Furniture and equipment
Printing, publications and postage
Transportation
Conferences and meetings
Assistance to individuals
Organization dues
Awards and grants
Interest expense
Other expenditures
Contribution - World Services
Supporting services to Northern Divisional Headquarters
Depreciation
Total expenses
Minneapolis
Central
Corps
Minneapolis
Parkview
Corps
Minneapolis
Temple
Corps
$
307,003
88,493
22,054
3,610
34,421
10,563
164,747
26,409
5,833
43,953
5,355
10,039
908
10,886
638
12,588
45,635
150,635
$
109,767
30,169
7,293
1,939
34,765
7,010
79,342
28,526
2,525
37,318
10,837
6,367
35
1,306
189
14,365
31,225
78,027
$
$
943,770
$
481,005
$
Lakewood
Temple
Corps
Noble
Corps
Harvest
Corps
140,140
43,077
9,950
2,163
20,226
8,876
76,058
9,967
3,355
21,304
5,675
4,282
165
384
11,685
20,964
40,530
$ 204,190
50,916
16,175
5,337
66,809
11,295
138,908
38,429
3,352
52,444
8,647
7,897
3,085
6,531
14,383
2,944
42,955
53,562
116,922
$ 135,351
25,467
14,563
2,126
7,838
4,092
59,610
4,379
2,151
15,007
3,257
2,655
303
801
371
5,303
20,293
37,499
$
418,801
$ 844,781
$ 341,066
$ 1,457,980
*See complete 2012 schedule of functional expenses - Corps Community Centers on page 27.
26
593,768
94,282
66,685
10,827
119,408
9,869
138,384
41,319
9,365
52,363
10,194
51,046
2,160
7,011
11,661
13,524
119,905
106,209
St. Paul
Citadel
Corps
St. Paul
Eastside
Corps
Bethel
Korean
Outpost
2012
Total*
Total
491,110
92,875
45,167
5,791
78,088
11,722
164,131
13,760
7,898
59,711
11,953
10,969
2,367
1,854
7,188
16,568
103,766
166,620
$ 239,008
60,618
20,509
2,688
64,288
8,393
109,053
16,173
4,052
51,633
4,313
6,193
240
255
948
7,130
36,561
63,405
$
12,769
54
84
128
6,635
2,907
34,648
10,844
318
6,988
1,072
77
45
300
18
45
4,265
7,142
$ 2,233,106
485,951
202,480
34,609
432,478
74,727
964,881
189,806
38,849
340,721
61,303
99,525
9,308
28,143
15,184
24,341
124,163
436,176
766,989
$
2,076,154
465,238
156,669
49,992
346,372
69,434
939,126
139,978
37,482
311,975
43,658
107,203
10,398
22,591
24,144
25,387
136,049
400,335
723,879
$ 1,291,538
$ 695,460
$
88,339
$ 6,562,740
$
6,086,064
$
The Salvation Army of the Twin Cities
(Minneapolis and Saint Paul)
SCHEDULE OF FUNCTIONAL EXPENSES - CORPS COMMUNITY CENTERS
Year ended September 30, 2012
Salaries
Health and retirement
Payroll taxes
Professional fees
Supplies
Telephone
Occupancy
Furniture and equipment
Printing, publications and postage
Transportation
Conferences and meetings
Assistance to individuals
Organization dues
Awards and grants
Interest expense
Other expenditures
Contribution - World Services
Supporting services to Northern Divisional Headquarters
Depreciation
Total expenses
Minneapolis
Central
Corps
Minneapolis
Parkview
Corps
Minneapolis
Temple
Corps
$
336,358
100,579
7,387
4,288
46,718
10,039
125,512
31,035
5,321
42,048
5,444
9,454
1,045
8,020
434
18,783
48,163
150,635
$
101,179
23,326
6,958
1,481
35,658
6,919
88,013
25,749
2,184
31,016
6,013
6,714
210
790
429
8,229
29,550
78,027
$
130,652
39,342
8,990
1,908
14,168
8,700
84,771
6,257
3,848
17,169
2,524
3,915
316
373
12,653
18,313
35,009
$
172,934
40,373
19,100
5,563
36,356
10,350
106,749
17,970
3,309
53,627
5,941
7,492
3,131
3,901
21,902
6,267
38,178
54,042
109,205
$ 111,127
25,307
10,275
2,584
11,004
5,042
92,596
4,224
2,539
20,137
2,725
2,272
803
2,242
723
4,265
18,673
33,591
$
$
951,263
$
452,445
$
388,908
$
716,390
$ 350,129
$ 1,344,302
27
Noble
Corps
Lakewood
Temple
Corps
Harvest
Corps
529,187
79,042
43,626
9,803
83,485
9,891
165,012
40,718
8,774
51,972
8,464
61,086
1,575
6,010
5,298
17,502
124,779
98,078
St. Paul
Citadel
Corps
$
St. Paul
Eastside
Corps
Total
464,777
92,440
41,463
7,562
71,091
10,578
169,129
6,471
7,746
48,243
8,180
10,564
3,119
3,870
11,089
31,673
78,309
155,949
$
229,940
64,829
18,870
16,803
47,892
7,915
107,344
7,554
3,761
47,763
4,367
5,706
199
774
4,766
28,506
63,385
$ 2,076,154
465,238
156,669
49,992
346,372
69,434
939,126
139,978
37,482
311,975
43,658
107,203
10,398
22,591
24,144
25,387
136,049
400,335
723,879
$ 1,222,253
$
660,374
$ 6,086,064