Report of Independent Auditors and Financial Statements … · Report of Independent Auditors and Financial Statements for Jewish Voice Ministries International December 31, 2014

Report of Independent Auditors andFinancial Statements for

Jewish Voice Ministries International

December 31, 2014

CONTENTS PAGEREPORTOFINDEPENDENTAUDITORS 1–2 FINANCIALSTATEMENTS Statementoffinancialposition 3 Statementofactivitiesandchangesinnetassets 4 Statementoffunctionalexpenses 5 Statementofcashflows 6 Notestofinancialstatements 7–18

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REPORTOFINDEPENDENTAUDITORS TotheBoardofDirectorsJewishVoiceMinistriesInternationalReportonFinancialStatementsWe have audited the accompanying financial statements of Jewish Voice Ministries International(“JVMI”), a nonprofit organization which comprise the statement of financial position as ofDecember31,2014, and the related statements of activities and changes in net assets, functionalexpenses,andcashflowsfortheyearthenended,andtherelatednotestothefinancialstatements.Management’sResponsibilityfortheFinancialStatementsManagement is responsible for the preparation and fair presentation of these financial statements inaccordancewithaccountingprinciplesgenerallyacceptedintheUnitedStatesofAmerica;thisincludesthe design, implementation, andmaintenance of internal control relevant to the preparation and fairpresentationoffinancialstatementsthatarefreefrommaterialmisstatement,whetherduetofraudorerror.Auditor’sResponsibilityOur responsibility is to express an opinion on these financial statements based on our audit. Weconductedouraudit inaccordancewithauditing standardsgenerallyaccepted in theUnitedStatesofAmerica.Thosestandardsrequire thatweplanandperformtheaudit toobtainreasonableassuranceaboutwhetherthefinancialstatementsarefreefrommaterialmisstatement.Anauditinvolvesperformingprocedurestoobtainauditevidenceabouttheamountsanddisclosuresinthe financial statements. The procedures selected depend on the auditor’s judgment, including theassessmentof therisksofmaterialmisstatementof the financialstatements,whetherdue to fraudorerror. Inmakingthoseriskassessments, theauditorconsidersinternalcontrolrelevant to theentity’spreparationand fairpresentationof the financial statements inorder todesignauditprocedures thatare appropriate in the circumstances, but not for the purpose of expressing an opinion on theeffectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit alsoincludes evaluating the appropriateness of accounting policies used and the reasonableness ofsignificantaccountingestimatesmadebymanagement,aswellasevaluatingtheoverallpresentationofthefinancialstatements.

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Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinion.OpinionIn our opinion, the financial statements referred to above present fairly, in allmaterial respects, thefinancialpositionofJewishVoiceMinistriesInternationalasofDecember31,2014,andthechangesinits net assets and its cash flows for the year then ended in accordance with accounting principlesgenerallyacceptedintheUnitedStatesofAmerica.EmphasisofMatterAs discussed in Note 10 to the financial statements, the December 31, 2013 net assets have beenrestated to correct certain material misstatements. Our opinion is not modified with respect to thismatter.

Scottsdale,ArizonaSeptember2,2015

Thispageintentionallyleftblank.

3 Seeaccompanyingnotes.

JEWISHVOICEMINISTRIESINTERNATIONALSTATEMENTOFFINANCIALPOSITION

ASSETSDecember31,

2014CURRENTASSETS

Cashandcashequivalents 11,179,152$Investments 21,541,050Prepaidexpenses,advances,anddeposits 714,553Inventories 1,408,290Duefromaffiliates 440,365Notesreceivable,current 35,988

Totalcurrentassets 35,319,398

Investments 1,979,590Notesreceivable,long‐term 957,354Propertyandequipment,net 5,834,455

44,090,797$

LIABILITIESANDNETASSETSCURRENTLIABILITIES Accountspayable 522,873$

Annuitiesdue 1,080Accruedexpenses 201,947Accruedpayroll 315,432Deferredrevenue 45,630

Totalcurrentliabilities 1,086,962

Annuitiesdue‐futureyears 8,920

Totalliabilities 1,095,882NETASSETS

Unrestricted:Undesignated 34,141,963Boarddesignatedquasi‐endowment 1,994,379Investmentinpropertyandequipment 5,834,455

Totalunrestricted 41,970,797

Temporarilyrestricted:Donoruserestricted 1,024,118

Totalnetassets 42,994,915

44,090,797$

Seeaccompanyingnotes. 4

JEWISHVOICEMINISTRIESINTERNATIONALSTATEMENTOFACTIVITIESANDCHANGESINNETASSETS

YearEndedDecember31,

2014CHANGEINUNRESTRICTEDNETASSETS

Publicsupportandrevenue:Generalcontributions 25,368,622$Tape,book,andothersales 1,826,558Less:materialsforresale (1,418,844)

Grossprofitfromsales 407,714

Grouptravel 661,869Interestanddividends 312,974Otherincome 6,969Gainoninvestments 352,807Unrealizedgainoninvestments 265,054Gainonsaleofequipment 1,000

Totalpublicsupportandrevenuebefore 27,377,009netassetsreleasedfromrestrictions

Satisfactionofuserestrictions 1,866,451

Totalpublicsupportandrevenue 29,243,460

EXPENSES:Programservices 14,114,893Fundraising 5,703,875Generalandadministrative 2,608,460

Totalexpenses 22,427,228

Changeinunrestrictednetassets 6,816,232

CHANGEINTEMPORARILYRESTRICTEDNETASSETSContributions 1,465,522Netassetsreleasedfromuserestrictions (1,866,451)

Changeintemporarilyrestrictednetassets (400,929)

CHANGEINNETASSETS 6,415,303

NETASSETS,beginningofyear,asoriginallyreported 37,394,963

Priorperiodadjustment,Note10 (815,351)

NETASSETS,beginningofyear,asrestated 36,579,612

NETASSETS,endofyear 42,994,915$

5 Seeaccompanyingnotes.

JEWISHVOICEMINISTRIESINTERNATIONALSTATEMENTOFFUNCTIONALEXPENSES

Program Fund‐ GeneralandServices raising Administrative Total

Broadcasttime 4,566,633$ 855,051$ ‐$ 5,421,684$Staffcompensation 2,007,892 530,464 915,190 3,453,546Printingandproduction 297,311 1,788,379 30,137 2,115,827Donortemporarilyrestricteddistributions:

AliyahFund 63,000 ‐ ‐ 63,000BibleFund 1,763 ‐ ‐ 1,763HumanitarianFund 64,000 ‐ ‐ 64,000IsraelSupport/ReliefFund 465,500 ‐ ‐ 465,500IsraelHolocaustSurvivorsFund 386,646 ‐ ‐ 386,646LifeStraws 73,114 ‐ ‐ 73,114IndiaOrphanageFund 5,319 ‐ ‐ 5,319MedicalClinics 759,980 ‐ ‐ 759,980Other 47,129 ‐ ‐ 47,129

Postage 273,233 1,171,296 172,095 1,616,624Outsourcedservices 1,018,106 ‐ 118,481 1,136,587Globaloutreach 1,055,857 ‐ ‐ 1,055,857Depreciation 543,487 ‐ 260,700 804,187Outsideministrysupport 769,890 ‐ ‐ 769,890Webcampaigns 390,318 330,156 ‐ 720,474Mailingservice 113,583 359,165 ‐ 472,748Healthanddentalinsurance 230,003 60,764 104,834 395,601Professionalservices 70,714 141,428 178,314 390,456Educationalevents 271,856 57,452 ‐ 329,308Discountfees ‐ ‐ 300,580 300,580Stafftravel 249,046 34,397 ‐ 283,443Telemarketing ‐ 264,897 ‐ 264,897Payrolltaxes 140,424 37,099 64,005 241,528Facilitycosts ‐ ‐ 175,028 175,028Website 157,048 ‐ ‐ 157,048Equipmentrental 122,845 ‐ 4,985 127,830Promotionalcosts 81,081 ‐ ‐ 81,081Supplies 43,150 1,213 35,538 79,901Computerhardwareandsoftwareexpense 19,446 17,060 39,077 75,583Employeebenefits 24,280 6,415 28,009 58,704Conferencesandmeetings 54,548 ‐ 3,680 58,228Publications 49,815 ‐ ‐ 49,815Repairsandmaintenance 19,257 ‐ 28,543 47,800Mediaproduction 13,495 29,405 ‐ 42,900Insurance ‐ ‐ 42,723 42,723Scholarships(Boarddesignated) 40,905 ‐ ‐ 40,905Telephone ‐ 2,640 36,678 39,318Bankandotherfees 6,909 ‐ 29,315 36,224Shipping 30,850 ‐ 3,746 34,596Duesandsubscriptions 10,796 129 11,772 22,697Hospitality ‐ 6,878 10,229 17,107Pensionsandannuityexpense ‐ ‐ 14,801 14,801Stateregistration ‐ 9,587 ‐ 9,587Vehiclecost 6,675 ‐ ‐ 6,675JVMIAffiliatesandotherexpensereimbursements (431,011) ‐ ‐ (431,011)

14,114,893$ 5,703,875$ 2,608,460$ 22,427,228$

YearEndedDecember31,2014

Seeaccompanyingnotes. 6

JEWISHVOICEMINISTRIESINTERNATIONALSTATEMENTOFCASHFLOWS

YearEndedDecember31,

2014CASHFLOWSFROMOPERATINGACTIVITIES

Cashreceivedfromdonors 25,630,465$Varioussales 1,826,558Grouptravel 661,869Various 6,969Cashpaidtoemployees (3,756,953)Cashpaidtosuppliers (17,657,021)

Netcashprovidedbyoperatingactivities 6,711,887

CASHFLOWSFROMINVESTINGACTIVITIESInterestandinvestmentincome 312,974Gainsonsalesofcapitalassets 1,000Purchaseofquasi‐endowmentinvestments (1,230,685)Saleofquasi‐endowmentinvestments 252,032Purchaseofinvestments (6,466,305)Saleofinvestments 5,194,179Cashreceivedfromnotesandloansreceivable 32,346Gainoninvestmentliquidations 352,807Cashpaidforcapitalassetpurchases (257,421)

Netcashusedininvestingactivities (1,809,073)

NETINCREASEINCASHANDCASHEQUIVALENTS 4,902,814

CASHANDCASHEQUIVALENTS,beginningofyear,asrestated 6,276,338

CASHANDCASHEQUIVALENTS,endofyear 11,179,152$

Reconciliationofchangeinnetassetstonetcashfromoperatingactivities:Changeinnetassets 6,415,303$Adjustmentstoreconcilechangeinnetassets

tonetcashprovidedbyoperatingactivities:(Increase)decreaseinprepaidexpenses,advancesanddeposits (317,954)

(Increase)decreaseinduefromaffiliates (96,842)(Increase)decreaseininventories (304,332)Increase(decrease)inaccountspayable 214,744Increase(decrease)inaccruedexpenses 96,581Increase(decrease)inaccruedpayroll 150,898Increase(decrease)indeferredrevenue 14,356Unrealizedgainoninvestments (265,054)Depreciation 804,187

Netcashprovidedbyoperatingactivities 6,711,887$

JEWISHVOICEMINISTRIESINTERNATIONALNOTESTOFINANCIALSTATEMENTS

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Note1–NatureofOrganization JewishVoiceMinistries International (“JVMI”) is a not‐for‐profit tax‐exempt organizationwith a two‐foldmission:(1)ProclaimingtheGoodNewstotheJewfirstandalsototheNationsby: •Large‐scaleinternationalfestivalsofJewishmusicanddance •Internationalhumanitarianandmedicalassistance •Aliyahassistance •Israeloutreach •Congregationalandleadershipdevelopment •TVspecials(2)EquippingtheChurchbyprovidingeducationabouttheHebraicRootsofChristianity,theChurch'sresponsibilitytoIsraelandtheJewishpeople,andhowtoshareMessiahwiththeJewishpeopleby: •Mediaproductions •Internationaltelevisionbroadcasts •ADynamicSpeaker'sBureau,bringinginformativeandinspirationalmessagestochurches andcongregations •IsraelPropheticTeachingTours,withuniqueHebraicinsights •Printmedia,includingbooks,publications,news,DVDs,CDs,andresourcesOnNovember8,1968,JewishVoiceBroadcasts,Inc.wasincorporatedintheStateofArizonaasaNot‐For‐ProfitCorporation.On December 21, 2000 Jewish Voice Broadcasts, Inc. and Hear O Israel Ministries, Inc. merged. Thesurviving organization, Jewish Voice Broadcasts, Inc. changed its name to Jewish Voice MinistriesInternational.Supportforthisorganizationcomesprimarilyfromdonorcontributions,productsales,travelfees,andregistrationfees.JVMIisexemptfromincometaxunderSection501(c)(3)oftheU.S.InternalRevenueCode(the“Code”)and comparable state law, and therefore, contributions by the public are tax deductible within thelimitationsprescribedbytheCode.JVMIhasbeenclassifiedasapubliclysupportedorganization,whichis not a private foundation under Section 509(a) of the Code. JVMI files an annual Internal RevenueService Form 990,Return ofOrganizationExempt from IncomeTax, and is registered as a charitableorganizationin38states.JVMIisnolongersubjecttoincometaxexaminationsbytaxingauthoritiesforyearsbeforefiscalyear2010foritsfederalandstatefilings.

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Note2–SummaryofSignificantAccountingPoliciesThe significant accounting policies followed are described below to enhance the usefulness of thefinancialstatementstothereader.Basisofaccounting–Thefinancialstatementsarepresented,ontheaccrualbasisofaccounting.Thesignificantaccountingpoliciesaredescribedbelowtoenhancetheusefulnessofthefinancialstatementstothereader.Useofestimates – the preparation of financial statements in conformitywith accounting principlesgenerally accepted in the United States of America requires management to make estimates andassumptionsthataffectthereportedamountsofassetsandliabilitiesanddisclosureofcontingentassetsand liabilities as the date of the financial statements and the reported amounts of revenues andexpensesduringthereportingperiod.Actualresultscouldvaryfromtheestimates.Cash and cash equivalents – JVMI considers all cash and highly liquid financial instruments withoriginalmaturitiesofthreemonthsorless,andwhichareneitherheldfornorrestrictedbydonorsforlong‐term purposes, to be cash and cash equivalents. Cash and highly liquid financial instrumentsrestricted to capital expenditures, permanent endowment, or other long‐term purposes of JVMI areexcludedfromthisdefinition.Concentrations of credit andmarket risk – JVMImaintains cash balances at financial institutionslocated inArizona. Certain accounts at each institution are insured by the FederalDeposit InsuranceCorporation(FDIC)up to$250,000.AtDecember31,2014balances inexcessof the federally insuredlimitswereapproximately$10,296,239.JVMI also invests in various investment securities. Investment securities are subject to various risks,suchasinterestraterisk,creditriskandoverallmarketvolatility.Duetothelevelofriskassociatedwithcertain investment securities, it is reasonably possible that the changes in the value of investmentsecuritieswilloccurintheneartermandthatsuchchangecouldmateriallyaffecttheamountsreportedinthefinancialstatements.JVMIhasestablishedguidelinesrelativetodiversificationandmaturitiesthattargetcertainsafetyand liquidityrisk levels.Theseguidelinesareperiodicallyreviewedandmodifiedwhennecessary.Investment valuation and income recognition – Available funds are invested in certificates ofdeposits, corporate bonds, and equity securities. JVMI's investments are governed by an investmentpolicy with guidelines for allowable investment securities, asset allocation, and maturities. Equitysecuritieswithreadilydeterminablefairvaluesanddebtsecuritiesaremeasuredatfairvaluebasedonquotedmarketprices.Netinvestmentgain/(loss)isreportedinthestatementofactivitiesandconsistsofinterestanddividendincome,realizedandunrealizedgainsandlosses,lessinvestmentmanagementandcustodialfees.Investmentrelatedexpensestotaledapproximately$245,542in2014.


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Note2–SummaryofSignificantAccountingPolicies(continued)Investments acquired by gift are recorded at their fair value at the date of the gift. JVMI policy is toliquidateallgiftsofinvestmentsassoonaspossibleafterthegift.Inventories–InventoryconsistsofJudaicagiftitems,books,CD’s,andDVD’sandallotherrelateditemsutilizedinthemediaandprintoperationsofJVMI.Inventoryisvaluedatlowerofcostormarketwithcost determined on the first‐in first‐out basis. A physical count of all merchandise inventory wasperformedfortheyearsendedDecember31,2014.Notes receivable – Notes receivable are evaluated for collectability based on credit history of theborrowersandtheircurrentfinancialcondition.Property, equipment, and depreciation – Capital property and equipment are recorded at cost.Depreciationof property andequipment is providedover the estimateduseful livesof the respectiveassetsonastraight‐linebasis.Also,noadjustmentshavebeenmadeforappreciationordepreciationinrealestatevalues.Therefore,thelandandbuildingsarenotbeingcarriedonthebooksattheirmarketvalue.Maintenance and repairs are charged to operations when incurred. Betterments and renewals arecapitalizedifover$500anddeterminedtohaveausefullivegreaterthanoneyear.Whenpropertyandequipment is sold or otherwise disposed of, the asset account and related accumulated depreciationaccountarerelieved,andanygainorlossisincludedinoperations.Classesofresourcesandnetassets–Thefinancialstatementsreportamountsseparatelybyclassofnet assets. JVMI reports information regarding its financial position and activities according to threeclassesofnet assets:unrestrictednet assets, temporarily andpermanently restrictednet assets.Giftsand contributions received with donor stipulations that limit the use of the asset are reported asrestrictedassets.Whenadonorrestrictionexpires,thatis,whentheastipulatedtimerestrictionendsorpurposeofthecontribution is accomplished, temporarily restricted assets are reclassified to unrestricted net assetsandreportedinthestatementofactivitiesasnetassetsreleasedfromrestrictions.Netassetsarereportedunderthefollowingclasses:Unrestricted amounts are those currently available at the discretion of the board for use in JVMI'soperations,Boarddesignatedquasi‐endowmentamountsapprovedbytheBoardofDirectorsforlong‐terminvestmentpurposes,andthoseresourcesinvestedinequipment.

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Note2–SummaryofSignificantAccountingPolicies(continued)Temporarily restricted amounts are those which are stipulated by donors for specific operatingpurposesorfortheacquisitionofequipment.AllcontributionsareconsideredavailableforthegeneralprogramofJVMI,unlessspecificallyrestrictedbythedonororsubjecttootherlegalrestrictions.Revenuerecognition–UnrestrictedcontributionsarerecognizedwhencashorownershipofdonatedassetsareunconditionallypromisedtoJVMI.JVMIrecordsitscostofpremiumsandpremiumsgiveninexchange for resources provided. JVMI records its cost of premiums as cost of sales since the cost ismore than nominal value. Contributions are reported as part exchange transaction and partcontribution.Temporarily restricted contributions are recognized as contribution income in the statement ofactivities when cash or ownership of donated assets is unconditionally promised to JVMI andsubsequently released to the unrestricted fundwhen expenses have been incurred in satisfaction ofthoserestrictions.Contributionsotherthancasharerecordedatthefairvalueofthedonatedassetatthedateofdonation.Intheabsenceofdonorrestrictionsastotheperiodinwhichfundsreceivedfromlegaciesandbequestsaretobeused,revenueisrecordedwhentheawardisreceived.Grouptravelrevenueisrecordedwhenthetripsaremadeandotherincomeisrecognizedwhenearned.Other income isrecognizedwhenearned.Expensesarerecognizedwhen incurred inaccordancewiththeaccrualbasisofaccounting.Impairmentof long‐livedassets – JVMI accounts for long‐lived assets in accordancewith generallyaccepted accounting principles which require that long‐lived assets be reviewed for impairmentwhenevereventsorchangesincircumstancesindicatethatthecarryingamountofanassetmaynotberecoverable.Recoverabilityofassetstobeheldandusedismeasuredbyacomparisonofthecarryingamountof an asset to futurenet cash flows expected tobe generatedby the asset. If such assets areconsideredtobe impaired, the impairmenttoberecognized ismeasuredbytheamountbywhichthecarryingamountoftheassetsexceedsthefairvalueoftheassets.Assetstobedisposedofarereportedat the lower of the carrying amount or fair value less costs to sell. Management does not believeimpairmentindicatorsarepresent.


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Note2–SummaryofSignificantAccountingPolicies(continued)Donated services – Donated services are recognized as contributions in accordance with generallyacceptedaccountingprinciples if theservices (a)createorenhancenonfinancialassetsor (b) requirespecializedskills,areperformedbypeoplewiththoseskills,andwouldotherwisehavebeenpurchased.No amounts have been reflected in the statements for donated services; however, JVMI receives theserviceofmanyvolunteerstoperformavarietyoftasksthatassistJVMIwithspecificprograms.Sincetheservicesdonotrequirespecializedskills,theyhavenotbeenvaluedintheaccompanyingfinancialstatements.Allocation of expenditures – The costs of providing the various program services and supportingactivitiesofJVMIhavebeensummarizedonafunctionalbasisinthestatementofactivities.Accordingly,certaincostshavebeenallocatedamongtheprogramservicesandsupportingactivities.Note3–FairValueofAssetsCertainassetsarereportedatfairvalueinthefinancialstatements.Fairvalueisthepricethatwouldbereceivedtosellanassetorpaidtotransferaliabilityinanorderlytransactionintheprincipal,ormostadvantageous,marketatthemeasurementdateundercurrentmarketconditionsregardlessofwhetherthat price is directly observable or estimated using another valuation technique. Inputs used todeterminefairvaluereferbroadlytotheassumptionsthatmarketparticipantswoulduseinpricingtheasset or liability, including assumptions about risk. Inputs may be observable or unobservable.Observableinputsareinputsthatreflecttheassumptionsmarketparticipantswoulduseinpricingtheasset or liability based on market data obtained from sources independent of the reporting entity.Unobservable inputs are inputs that reflect the reporting entity's own assumptions about theassumptions market participants would use in pricing the asset or liability based on the bestinformationavailable.Athree‐tierhierarchycategorizestheinputsasfollows:

Level1 –Quotedprices (unadjusted) inactivemarkets for identicalassetsor liabilities that JVMIcanaccessatthemeasurementdate.Level2–InputsotherthanquotedpricesincludedwithinLevel1thatareobservablefortheassetorliability,eitherdirectlyorindirectly.Theseincludequotedpricesforsimilarassetsorliabilitiesinactivemarkets, quoted prices for identical or similar assets or liabilities inmarkets that are notactive, inputs other than quoted prices that are observable for the asset or liability, andmarketcorroboratedinputs.Level3 –Unobservable inputs for the asset or liability. In these situations, JVMIdevelops inputsusingthebestinformationavailableinthecircumstances.

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Note3–FairValueofAssets(continued)Insomecases,theinputsusedtomeasurethefairvalueofanassetora liabilitymightbecategorizedwithin different levels of the fair value hierarchy. In those cases, the fair value measurement iscategorizedinitsentiretyinthesamelevelofthefairvaluehierarchyasthe lowest level inputthat issignificant to the entire measurement. Assessing the significance of a particular input to entiremeasurement requires judgment, taking into account factors specific to the asset or liability. ThecategorizationofanassetwithinthehierarchyisbaseduponthepricingtransparencyoftheassetanddoesnotnecessarilycorrespondtoJVMI'sassessmentofthequality,riskorliquidityprofileoftheassetorliability.TherelatedfairvaluesoftheseassetsaredeterminedasfollowsatDecember31,2014:

QuotedPricesin Observable UnobservableActiveMarkets Inputs Inputs

(Level1) (Level2) (Level3) Total

Equitysecurities 13,070,012$ ‐$ ‐$ 13,070,012$Assetbackedsecurities 1,196,175 ‐ ‐ 1,196,175Governmentsecurities 2,334,585 ‐ ‐ 2,334,585Corporatebonds 4,076,240 ‐ ‐ 4,076,240Gold 2,772,380 ‐ ‐ 2,772,380Churchfund ‐ ‐ 71,248 71,248

23,449,392$ ‐$ 71,248$ 23,520,640$


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Note4–NotesReceivableThefollowingisasummaryofnotesreceivableatDecember31,2014:

ExecutiveDirector;interestat3.25%perannum;securedbyrealpropertylocatedinPhoenix,AZ;monthlypaymentsofprincipalandinterestof$4,821;lastpaymentdueonApril1,2033. 800,463$

WestministerFellowship,Inc.;interestat5.00%perannum;securedbyvacantlandlocatedinPhoenix,AZ;monthlypaymentsofprincipalandinterestof$1,074;amortizedover30years;balloonpaymentdueonSeptember20,2019. 192,879

993,342Lessamountduewithinoneyear (35,988)

Long‐termnotesreceivable 957,354$

Notes receivable are evaluated for collectability. No provision for loss was considered necessary bymanagementatDecember31,2014asborrowersarepayinginaccordancewithtermsandtheloansaresecuredbyrealestate.ThenotereceivablefromtheExecutiveDirectorisconsideredarelated‐partytransaction.Note5–InventoriesThefollowingisasummaryofinventoriesatDecember31,2014:

Judaica 733,017$Books 479,595Videos 101,499Tapes/CDs 50,296Jewelry 25,190Other 18,693

1,408,290$

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Note6–PropertyandEquipmentThe following is a summary of property and equipment, at cost, less accumulated depreciation, atDecember31,2014:

Realproperty 5,635,714$Realpropertyimprovements 263,360Televisionequipment 2,967,222Studioequipment 692,404Furniture/fixtures 405,802Land 360,000Computerequipment 293,443Officeequipment 120,182Festivalequipment 125,602Transportationequipment 121,260Computersoftware 22,188Library 16,782

11,023,959Lessaccumulateddepreciation 5,189,504

Propertyandequipment,net 5,834,455$

DepreciationexpenseontheaboveassetsfortheyearendedDecember31,2014was$804,187.There is no depreciation provided for on assets held for sale. The above property and equipment isunencumberedatDecember31,2014.Theusefullivesofdepreciablepropertyandequipmentforpurposesofcomputingdepreciationare:

Realproperty 39yearsRealpropertyimprovements 12yearsTelevisionequipment 7yearsStudioequipment 7yearsFurniture/fixtures 7yearsComputerequipment 5yearsOfficeequipment 7yearsTransportationequipment 5yearsFestivalequipment 5yearsComputerequipment 3yearsLibrary 10years


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Note7–DuefromAffiliatesJVMIprovidesadministrativeandprogramservicestoitsaffiliatesintheUnitedKingdomandCanada.AtDecember31,2014,balancesduefromaffiliates,areasfollows:

JewishVoiceMinistriesCanada 307,942$JewishVoiceMinistriesUnitedKingdom 132,423

440,365$

AsummaryofsalesactivityduringtheyearendedDecember31,2014isasfollows:

JewishVoiceMinistriesCanadaProgramservices 274,869$Inventory 53,883

JewishVoiceMinistriesUnitedKingdomProgramservices 154,561Inventory 34,254

517,567$

Amounts due from affiliates are normally duewithin 30 days. No allowance for doubtful accounts isrecordedonbalancesduefromaffiliatessinceallbalancesarecollectedinaccordancewithterms. Note8–BoardDesignatedQuasi‐EndowmentIn October 2013, the Board established the Louis and Chira Kaplan Scholarship Fund. The Boardproposedthatannualinterestincomeearnedfromtheinvestedfundsbeusedtofundscholarshipsfortheupcomingyear.InOctober2014,theBoarddesignatedanadditional$1milliondollarsbeaddedtothisfund.Thescholarshipcommitteecanapproveanddisbursefundsuptotheannualendowment.Changesinthequasi‐endowmentnetassetsfortheyearendedDecember31,2014areasfollows:Quasi‐endowmentnetassets, 1,000,937$

beginningofyearInvestmentincome 15,971Awardedscholarships (22,529)Additionalboarddesignatedamount 1,000,000Quasi‐endowmentnetassets,

endofyear 1,994,379$

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Note9–RetirementPlanJVMIsponsorsa403(b)retirementplanwhichcoversallemployeesafterspecifiedperiodsof serviceandeligibilityrequirementshavebeenmet.JVMIwithholdsvoluntarycontributionsfrompaychecksandremitsthecontributionstoanindependenttrustee.Eachparticipantmaycontributeupto20percentoftheireligiblecompensationonapretaxbasis to theplan,up to themaximumallowedby the InternalRevenueCode.JVMImatchesupto3%ofwhatanemployeecontributesupto3%oftheirsalary.DuringtheyearsendedDecember31,2014,JVMI'smatchingcontributionexpensewas$55,097.Note10–PriorPeriodAdjustments

During the fiscal year ended December 31, 2014, certain financial statement errors wereidentified.One error resulted in theoverstatement of property andequipment, theunderstatement ofaccumulated depreciation, and the understatement of depreciation expense recorded on the buildingimprovements as ofandfortheyearendedDecember31,2013.Theerrorresultedfromtheimproperuse of building useful lives on building improvements. Secondly, JVMI improperly recorded itsinvestments at cost in the previous year, which resulted in the overstatement of investments andunderstatement of unrealized losses of $569,978 as of and for the year ended December 31, 2013.Additionally, JVMI misclassified certain investments as cash and cash equivalents as ofDecember31,2013. Finally, JVMI misclassified its board designated quasi‐endowment fund astemporarily restricted net assets rather than unrestricted net assets as of December 31, 2013. JVMIrestateditsfinancialstatementstocorrecttheseerrors.


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Note10–PriorPeriodAdjustments(continued)The effects of the prior period adjustments on the financial statements as of and for the year endedDecember31,2013forJVMIareshownbelow:

AsPreviouslyReported AsRestated

December31, December31, Effectof2013 2013 Change

StatementofFinancialPosition:Cashandcashequivalents ‐$ 6,276,338$ 6,276,338$Cash,non‐interestbearing,unrestricted 2,696,691 ‐ (2,696,691)Cash,interestbearing,unrestricted 21,291,488 ‐ (21,291,488)Cash,interestbearing,restricted 1,000,937 ‐ (1,000,937)Cash,foreign 3,505 ‐ (3,505)Goldinvestments 3,525,283 ‐ (3,525,283)Investments ‐ 20,670,651 20,670,651Notesandloansreceivable,current 384,607 384,607 ‐Prepaidexpenses,advances,anddeposits 396,599 396,599 ‐Inventories 1,103,958 1,103,958 ‐Totalcurrentassets 30,403,068 28,832,153 (1,570,915)Investments,long‐term ‐ 1,000,937 1,000,937Notesandloansreceivable,long‐term 984,604 984,604 ‐Propertyandequipment 10,828,824 10,828,824 ‐Accumulateddepreciation (4,202,230) (4,447,603) (245,373)Totalassets 38,014,266$ 37,198,915$ (815,351)$

UnrestrictednetassetsUndesignated 28,342,386$ 27,772,408$ (569,978)$Representedbyequipment 6,626,594 6,381,221 (245,373)Boarddesignated ‐ 1,000,937 1,000,937

Totalunrestrictednetassets 34,968,980 35,154,566 185,586Temporarilyrestrictednetassets 2,425,983 1,425,046 (1,000,937)

Totalnetassets 37,394,963$ 36,579,612$ (815,351)$

StatementofActivitiesandChangesinNetAssets:Depreciationexpense 797,206$ 1,042,579$ 245,373$Unrealizedloss ‐$ 569,978$ 569,978$Changeinnetassets 6,602,877$ 5,787,526$ (815,351)$Netassets,endofyear 37,394,963$ 36,579,612$ (815,351)$

StatementofCashFlows:Cashandcashequivalents,endofyear 28,517,904$ 6,276,338$ (22,241,566)$

ScheduleofFunctionalExpenditures:Programservices 11,853,925$ 12,016,822$ 162,897$Fundraising 3,825,140 3,825,140 ‐Generalandadministrative 1,969,130 2,051,606 82,476

Totalexpenses 17,648,195$ 17,893,568$ 245,373$

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Note11–SubsequentEvents Subsequenteventsareeventsor transactions thatoccurafter thestatementof financialpositiondatebutbeforefinancialstatementsareavailabletobeissued.JVMIrecognizesinthefinancialstatementstheeffects of all subsequent events that provide additional evidence about conditions that existed at thedateofthestatementoffinancialposition,includingtheestimatesinherentintheprocessofpreparingthe financial statements. JVMI’s financial statementsdonot recognize subsequentevents thatprovideevidenceaboutconditionsthatdidnotexistatthedateofthestatementoffinancialposition,butaroseafterthestatementoffinancialpositiondateandbeforefinancialstatementsareavailabletobeissued.OnMay1,2015,JVMIdeterminedthatthebuildingstudiopreviouslyheldforsalewouldcontinuetobeutilized for JVMIoperations.Managementdoesnotbelieve there isan impairment to thevalueof thebuilding.JVMI has evaluated subsequent events through September 2, 2015, the date which the financialstatementswereavailabletobeissued.

Documents

Report of Independent Auditors and Financial Statements … · Report of Independent Auditors and Financial Statements for Jewish Voice Ministries International December 31, 2014