Financial Statements Together with
Report of Independent Certified Public Accountants
THE PENSION PLAN FOR CLERGYMEN AND LAY EMPLOYEES OFTHE GREEK ORTHODOX ARCHDIOCESE OF AMERICA
For the years ended December 31, 2010 and 2009

THE PENSION PLAN FOR CLERGYMEN AND LAY EMPLOYEES OF
THE GREEK ORTHODOX ARCHDIOCESE OF AMERICATABLE OF CONTENTSPage
Report of Independent Certified Public Accountants

1Financial Statements
Statements of Net Assets Available for Benefits as of December 31, 2010 and 2009

2Statements of Changes in Net Assets Available for Benefits for the years endedDecember 31, 2010 and 2009

3Notes to Financial Statements

4 - 10REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS

To the Archdiocese Benefits Committee of theGreek Orthodox Archdiocese of America:
We have audited the accompanying statements of net assets available for benefits of The Pension Plan forClergymen and Lay Employees of the Greek Orthodox Archdiocese of America (the “Plan”) as ofDecember 31, 2010 and 2009, and the related statements of changes in net assets available for benefits for theyears then ended. These financial statements are the responsibility of the Plan’s management. 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 ofAmerica. Those standards require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement. An audit includes consideration of internal
control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances,
but not for the purpose of expressing an opinion on the effectiveness of the Plan’s internal control over financialreporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements, assessing the accounting principles used andsignificant estimates made by management, as well as evaluating the overall financial statement presentation. We
believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial
status of The Pension Plan for Clergymen and Lay Employees of the Greek Orthodox Archdiocese of America asof December 31, 2010 and 2009, and the changes in its financial status for the years then ended, in conformity
with accounting principles generally accepted in the United States of America.

New York, New York
December 21, 2011

THE PENSION PLAN FOR CLERGYMEN AND LAY EMPLOYEES OF
THE GREEK ORTHODOX ARCHDIOCESE OF AMERICA
Statements of Net Assets Available for Benefits
As of December 31, 2010 and 2009

The accompanying notes are an integral part of these statements.
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Statements of Changes in Net Assets Available for Benefits
For the years ended December 31, 2010 and 2009

The accompanying notes are an integral part of these statements.
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THE PENSION PLAN FOR CLERGYMEN AND LAY EMPLOYEES OF
THE GREEK ORTHODOX ARCHDIOCESE OF AMERICA
Notes to Financial Statements
December 31, 2010 and 20091.

DESCRIPTION OF THE PENSION PLANGeneral
The following description of The Pension Plan for Clergymen and Lay Employees of the Greek Orthodox
Archdiocese of America (the “Plan”) is provided for general information purposes only. Participants
should refer to the Archdiocese benefits office at the Greek Orthodox Archdiocese of America (the“Archdiocese”) for complete information. The Plan is a contributory defined benefit pension plan that wasadopted in 1973. The Plan covers the majority of clergymen and lay employees of the Archdiocese, as wellas employees of participating affiliated organizations.
The Plan is administered by the Archdiocese Benefits Committee (the “ABC”).
Eligibility
Lay employees become eligible for participation upon commencement of employment. Clergy become
eligible for participation following the date of ordination and assignment.
Pension Benefits and Vesting
The Plan provides for 100% vesting after five years of service. Amounts withheld from employees’
compensation and contributed by them are fully refunded along with accrued interest at rates specified by
the Plan if such employee terminates from service prior to 100% vesting. Benefits for participants retiring
at normal (age 65), early or delayed retirement age, or for disability and death benefits are calculated as setforth in the Plan. The retirement income or survivor benefit shall be increased by 5% for each participant
actively employed who is making contributions to the Plan and each participant, joint annuitant, andbeneficiary who was receiving retirement income or survivor benefits. Minimum participant and survivor
benefits are not payable if a participant makes late personal contributions for six consecutive months.
Joint and survivor contingent annuity factors are as follows:••

A participant who elects for their survivor to receive 100% of the pension benefit that they arereceiving, will receive 83% of their pension benefit while alive;
A participant who elects for their survivor to receive 50% of the pension benefit that they arereceiving, will receive 91% of their pension benefit while alive.

Participant Contributions
A participant may elect to make contributions in an amount equal to 3½% to 5% of earnings in accordancewith the rules established by the ABC.
2.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESBasis of Presentation
The accompanying financial statements have been prepared in conformity with accounting principles
generally accepted in the United States of America using the accrual basis of accounting.

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THE GREEK ORTHODOX ARCHDIOCESE OF AMERICA
Notes to Financial Statements

For the years ended December 31, 2010 and 2009

Cash and Cash Equivalents
The Company considers all highly liquid investments purchased with an original maturity of three months
or less to be cash equivalents.
Investment Valuation and Income Recognition
Investments in securities listed on recognized exchanges are valued at the last reported market price of theyear, and the fair value of other securities is determined by reference to current market quotations. Quoted
market price is not available for the Plan’s investment interest in a limited partnership. The value of thePlan’s investment interest in this limited partnership is determined from the book value of the partnership,
which the Archdiocese believes approximates its fair market value.
Investment securities, in general, are exposed to various risks, such as interest rate, credit and overallmarket volatility risks. Due to the level of risk associated with certain investment securities, it is reasonably
possible that changes in the values of investment securities will occur in the near term and such changes
could materially affect the amounts reported in the statements of net assets available for benefits.
Purchases and sales of the underlying securities are recorded on a trade-date basis. Interest income isrecorded on the accrual basis. Dividends are recorded on the ex-dividend date. Net appreciation includes
both realized gains and losses on investments sold during the year as well as unrealized gains and losses oninvestments held during the year.
Administrative Expenses
Administrative expenses are the responsibility of the Plan.
Benefits Paid to Retired Participants
Benefits paid to retired participants are recorded when paid.
Adoption of New Accounting Guidance
In April 2009, the Financial Accounting Standards Board (“FASB”) issued updates to the initial fair value
measurements and disclosures guidance, which included determining fair value when the volume and levelof activity for the asset or liability have significantly decreased and identifying transactions that are notorderly. Such guidance also expanded disclosures and required that major categories for debt and equity
securities in the fair value hierarchy table be classified and presented according to the nature and risks of
the investments. The implementation did not require any new fair value measurements and there was no
impact on the financial position of the Plan as a result of the implementation.
In July 2009, the FASB established the FASB Accounting Standards Codification (“ASC”) as the source ofauthoritative accounting principles recognized by the FASB to be applied by non-governmental entities in
the preparation of financial statements in conformity with US GAAP. The use of the ASC was effective forfinancial statements issued for periods ending after September 15, 2009. As the Codification did notchange existing GAAP, the adoption did not have an impact on the Plan’s financial condition or results ofoperations.

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THE GREEK ORTHODOX ARCHDIOCESE OF AMERICA
Notes to Financial Statements

For the years ended December 31, 2010 and 2009

In September 2009, the FASB amended the fair value measurements and disclosures guidance forinvestments in certain entities that calculate net asset per share (or its equivalent). The amendment iseffective for the first reporting period ending after December 15, 2009, and expands the required
disclosures for certain investments with a reported net asset value (“NAV”). The Plan has adopted bothchanges to the fair value measurements and disclosures guidance on a prospective basis for the year ended
December 31, 2009. Adoption did not have a material impact on the fair value determination anddisclosure of applicable investments. The effect of the adoption had no impact on the statements of netassets available for benefits and statement of changes in net assets available for benefits.
In January 2010, the FASB amended the fair value measurements and disclosures guidance by adding new
disclosure requirements for Level 1 and Level 2 measurements, separate disclosures of purchases, sales,issuances and settlements relating to Level 3 measurements, and clarification of existing fair value
disclosures. This amendment is effective for periods beginning after December 15, 2009, except for therequirement to provide Level 3 activity of purchases, sales, issuances and settlements on a gross basis,
which will be effective for fiscal years beginning after December 15, 2010. The adoption in 2010 did notmaterially affect, and the future adoption is not expected to materially affect, the Plan’s financialstatements.
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in theUnited States of America requires management to make estimates and assumptions that affect the reported
amounts of assets, liabilities, revenues, expenses and other disclosures during the reporting period. Actualresults could differ from those estimates.
Actuarial Assumptions
Significant assumptions underlying the 2010 and 2009 actuarial computations are as follows:

3.

FUNDING POLICY
The Archdiocese maintains a Church Plan, as such, the Plan is not subject to the Employee Retirement
Income Security Act (“ERISA”). However, the Archdiocese intends to fund the Plan in accordance with
the initial minimum standards of ERISA.

4.

RISKS AND UNCERTAINTIESInvestment securities, in general, are exposed to various risks, such as interest rate, credit and overallmarket volatility risks. Due to the level of risk associated with such investment securities, it is reasonably
possible that changes in the valuation of investment securities will occur in the near term and such changes
could materially affect the amounts reported in the statements of net assets available for benefits.
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THE PENSION PLAN FOR CLERGYMEN AND LAY EMPLOYEES OF
THE GREEK ORTHODOX ARCHDIOCESE OF AMERICA
Notes to Financial Statements

For the years ended December 31, 2010 and 2009

Plan contributions are made and the actuarial present value of accumulated plan benefits are reported basedon certain assumptions pertaining to interest rates, inflation rates and employee demographics, all of which
are subject to change. Due to uncertainties inherent in the estimations and assumptions process, it is at least
reasonably possible that changes in these estimates and assumptions in the near term would be material to
the financial statements.
5.

PARTY-IN-INTEREST
Certain Plan investments are managed by New York Life Trust Company (“NYLIM”). NYLIM is theTrustee as defined by the Plan and, therefore, these transactions qualify as party-in-interest transactions.

6.

PLAN TERMINATION
Although no intentions to terminate the Plan have been expressed, the Plan may be terminated at any timeby the ABC, at which time the assets of the Plan would be liquidated, allocated and distributed inaccordance with the provisions of the Plan.

7.

ACCUMULATED BENEFITS
The actuarial present value of accumulated plan benefits and net assets available for benefits for the years
ended December 31, 2010 and 2009, are presented below:-7-

THE PENSION PLAN FOR CLERGYMEN AND LAY EMPLOYEES OF
THE GREEK ORTHODOX ARCHDIOCESE OF AMERICANotes to Financial Statements

For the years ended December 31, 2010 and 2009

The net increase in the Plan’s actuarial present value of accumulated plan benefits was $1,882,702 and$3,344,950 for the years ended December 31, 2010 and 2009, respectively. For the years ended
December 31, 2010 and 2009, increases were attributable to:8.

INVESTMENTS
The Plan follows guidance that establishes a framework for measuring fair value. Fair value is defined as
the price that would be received from selling an asset or paid to transfer a liability in the principal or mostadvantageous market for the asset or liability in an orderly transaction between market participants at themeasurement date. The framework also provides a fair value hierarchy that prioritizes the inputs tovaluation techniques used to measure fair value. The fair value hierarchy gives the highest priority tounadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and thelowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy
under the FASB guidance are described below:
Level 1 - Inputs to the valuation methodology are unadjusted quoted prices for identical assets orliabilities in active markets that the Plan has the ability to access.
Level 2 - Inputs to the valuation methodology, including the following:• Quoted prices for similar assets or liabilities in active markets.
• Quoted prices for identical or similar assets or liabilities in inactive markets.
• Inputs other than quoted prices that are observable for the asset or liability.
• Inputs that are derived principally from or corroborated by observable market data bycorrelation or other means.
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THE GREEK ORTHODOX ARCHDIOCESE OF AMERICA
Notes to Financial Statements

For the years ended December 31, 2010 and 2009

If the asset or liability has a specified (contractual) term, the Level 2 input must be observablefor substantially the full term of the asset or liability.
Level 3 - Inputs to the valuation methodology are unobservable and significant to the fair value
measurement.
The asset’s or liability’s fair value measurement level within the fair value hierarchy is based on the lowestlevel of any input that is significant to the fair value measurement. Valuation techniques used need tomaximize the use of observable inputs and minimize the use of unobservable inputs.
However, the determination of what constitutes observable requires judgment by the Plan’s management.
Plan management considers observable data to be that market data which is readily available, regularly
distributed or updated, reliable and verifiable, not proprietary, and provided by multiple independentsources that are actively involved in the relevant market.
The categorization of an investment within the fair value hierarchy is based upon the pricing transparencyof the investment and does not necessarily correspond to Plan management’s perceived risk of thatinvestment.
Following is a description of the valuation methodologies used for assets measured at fair value. There
have been no changes in the methodologies used at December 31, 2010 and 2009.
•Mutual funds and Money markets: Valued at the closing price reported on the active market on
which the individual securities are traded.

The methods described above may produce a fair value calculation that may not be indicative of net
realizable value or reflective of future fair values. While Plan management believes its valuation methods
are appropriate and consistent with other market participants, the use of different methodologies orassumptions to determine the fair value of certain financial instruments could result in a different fair value
measurement at the reporting date.
All investments in the Plan are valued using Level 1 measurements as of December 31, 2010 and 2009.
9.

TAX STATUS
The Internal Revenue Service has determined and informed the Plan’s management by a letter datedJanuary 28, 2008, that the Plan and related trust are designed in accordance with applicable sections of theInternal Revenue Code (“IRC”). The Plan has been amended since receiving the determination letter.
However, the Plan’s management and legal counsel believe the Plan is designed and is currently being
operated in compliance with the applicable requirements of the IRC.
Accounting principles generally accepted in the United States of America require plan management toevaluate tax positions taken by the plan and recognize a tax liability if the plan has taken an uncertainposition that more likely than not would not be sustained upon examination by the IRS. The plan
administrator has analyzed the tax positions taken by the plan, and has concluded that as ofDecember 31, 2010, there are no uncertain positions taken or expected to be taken that would require
recognition of a liability or disclosure in the financial statements. The plan is subject to routine audits by-9-

THE PENSION PLAN FOR CLERGYMEN AND LAY EMPLOYEES OF
THE GREEK ORTHODOX ARCHDIOCESE OF AMERICANotes to Financial Statements

For the years ended December 31, 2010 and 2009

taxing jurisdictions; however, there are currently no audits for any tax periods in progress. The plan
administrator believes that it is no longer subject to income tax examinations for years prior to 2007.
10.

SUBSEQUENT EVENTSThe Plan evaluated its December 31, 2010 financial statements for subsequent events through December 21,
2011, the date the financial statements were available to be issued. The Plan is not aware of any subsequent
events that would require recognition or disclosure in the consolidated financial statements.

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