Financial Statements Together with
Report of Independent Certified Public Accountants
GREEK ORTHODOX ARCHDIOCESE OF AMERICA
December 31, 2014 and 2013

GREEK ORTHODOX ARCHDIOCESE OF AMERICATABLE OF CONTENTS

Page(s)Report of Independent Certified Public Accountants

1-2

Financial Statements:
Statements of Financial Position as of December 31, 2014 and 20133

Statements of Activities for the years ended December 31, 2014 and 20134

Statements of Cash Flows for the years ended December 31, 2014 and 2013

5

Notes to Financial Statements

6 - 22

Grant Thornton LLP
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REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS

To His Eminence Archbishop Demetrios of America
and the Members of the Archdiocesan Council of the
Greek Orthodox Archdiocese of America:
We have audited the accompanying financial statements of the Greek Orthodox Archdiocese of America(the “Archdiocese”) which comprise the statements of financial position as of December 31, 2014 and 2013,
and the related statements of activities and cash flows for the years then ended and the related notes to thefinancial statements.
Management’s responsibility for the financial statements
Management is responsible for the preparation and fair presentation of these financial statements inaccordance with accounting principles generally accepted in the United States of America; this includes thedesign, implementation, and maintenance of internal control relevant to the preparation and fair presentationof 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. Thosestandards require that we plan and perform the audit to obtain reasonable assurance about whether thefinancial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in thefinancial statements. The procedures selected depend on the auditor’s judgment, including the assessmentof 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 Archdiocese’s preparation andfair presentation of the financial statements in order to design audit procedures that are appropriate in thecircumstances, but not for the purpose of expressing an opinion on the effectiveness of the Archdiocese’s
internal control. Accordingly, we express no such opinion. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of significant accounting estimates madeby 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
OpinionIn our opinion, the financial statements referred to above present fairly, in all material respects, the financial
position of the Greek Orthodox Archdiocese of America as of December 31, 2014 and 2013, 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.

New York, New York
December 22, 2015

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GREEK ORTHODOX ARCHDIOCESE OF AMERICA
Statements of Financial Position
As of December 31, 2014 and 20132014

ASSETSCash and cash equivalents
Accounts receivable
Investments, at fair value
Inventory, net
Due from related entities, net
Miscellaneous receivables and other assets
Prepaid expenses
Land, buildings and equipment, net
Beneficial interest in split-interest agreement
Investments held for others
Total assets

$

2013

992,368
122,885
9,287,280
541,517
185,747
7,492
4,542,092
367,872
6,799,764$ 22,847,017$

1,348,272
96,524
9,075,554
465,355
176,030
171,01115,7504,556,134
364,469
4,263,832$ 20,532,931$$

LIABILITIES AND NET ASSETSLIABILITIES
Accounts payable and accrued expenses
Deferred revenue
Grants payable
Notes payable
Pension and other accrued retirement benefits
Custody funds held and amounts due to related parties
Total liabilities

2,419,938
1,591
250,000
3,894,632
9,219,917
15,786,078

2,672,528
5,207
1,709,680
3,981,245
4,671,029
13,039,689

Commitments and contingencies
NET ASSETS
Unrestricted
Temporarily restricted
Permanently restricted
Total net assets
Total liabilities and net assets

The accompanying notes are an integral part of these statements.
-3-(1,182,406)
5,869,625
2,373,720
7,060,939(687,591)
5,814,228
2,366,605
7,493,242$ 22,847,017$ 20,532,931

GREEK ORTHODOX ARCHDIOCESE OF AMERICA
Statements of Activities
For the years ended December 31, 2014 and 2013

2013

2014
Temporarily
Restricted

Unrestricted
REVENUES AND OT HER SUPPORTNational ministry commitment
Contributions and grants
Leadership 100 grants
FAIT H grants
Ministries, publications and registry
Department of Religious Education - sales
Clergy Laity conference
Investment income
Change in fair value of beneficial interest in trust held by others
Net assets released from restrictions$

T otal revenues and other support

19,645,583
2,110,760
2,643,843
457,945909,560
323,233
3,646,239$

2,420,212
667,402276,750
337,272(3,646,239)

Permanently
Restricted
$

-

Total
$

3,712
3,403
-

19,645,583
4,530,972
667,402276,750
2,643,843
457,945909,560
664,217
3,403-

Temporarily
Restricted

Unre stricted$

19,532,644
1,792,456
2,529,024
498,051
642,3433,586,916$

2,437,436
944,300
198,138
694,353(3,586,916)

Permanently
Re stricted$

3,366
43,798-

Total$

19,532,644
4,229,892
944,300
198,138
2,529,024
498,051
1,340,062
43,798-29,737,163

55,397

7,115

29,799,675

28,581,434

687,311

47,16429,315,909

7,543,603
6,029,379
2,022,417
3,086,346
2,066,229
12,333
1,070,979
412,609915,131--7,543,603
6,029,379
2,022,417
3,086,346
2,066,229
12,333
1,070,979
412,609915,1317,067,680
5,864,588
1,913,818
3,054,574
2,372,604
587,932
678,734
648,655---

7,067,680
5,864,588
1,913,818
3,054,574
2,372,604
587,932
678,734
648,655-

23,159,026--

23,159,026

22,188,585--

22,188,585

Fundraising
General and administrative expenses

193,852
6,879,100--

193,852
6,879,100

140,772
6,653,779--

140,772
6,653,779

T otal expenses

30,231,978--30,231,978

28,983,136--

28,983,136(494,815)

55,3977,115(432,303)(401,702)

687,311

47,164

332,773(687,591)

5,814,228

2,366,605

7,493,242(285,889)

5,126,917

2,319,441

7,160,469

Expenses:
Program services:
Education
Metropolis Ministries
Orthodoxy in the World
Communications
Community services
Other program services - affiliated organizations
Retirement and clergy benefit expenses
Distributions for disaster relief
Clergy Laity conference
T otal program services

Changes in net assets
Net assets, beginning of year
Net assets, end of year$

(1,182,406)$

5,869,625$

2,373,720

The accompanying notes are an integral part of these statements.
-4-$

7,060,939$(687,591)$

5,814,228$

2,366,605$

7,493,242

GREEK ORTHODOX ARCHDIOCESE OF AMERICA
Statements of Cash Flows
For the years ended December 31, 2014 and 2013

2014
CASH FLOWS FROM OPERATING ACTIVITIES
Change in net assets
Adjustments to reconcile change in net assets to net cash
provided by (used in) operating activities:
Depreciation
Writedown of inventory
Net appreciation in fair value of investments
Change in fair value of beneficial interest in trust held by others
Changes in assets and liabilities:
Accounts receivable
Inventory
Due from related entities
Miscellaneous receivables and other assets
Prepaid expenses
Accounts payable and accrued expenses
Deferred revenue
Grants payable
Custody funds held and amounts due to related parties
Pension and other accrued retirement benefits
Net cash provided by (used in) operating activities$(432,303)2013$

332,773

145,538(486,402)(3,403)

159,082
155,070(1,150,493)(43,798)(26,361)(76,162)
176,030(14,736)8,258(659,787)(3,616)250,000
2,420,153(86,613)
1,210,596

4,098(23,994)(131,580)(4,691)
20,655(311,189)(351)
407,197
152,118(435,103)

CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of investments
Proceeds from sales and maturities of investments
Purchases of fixed assets
Net cash provided by investing activities(4,240,485)
4,515,161(131,496)
143,180(4,980,135)
5,654,015(431,045)
242,835

CASH FLOWS FROM FINANCING ACTIVITIES
Principal payments on notes payable
Net cash used in financing activities(1,709,680)(1,709,680)(91,414)(91,414)

Net decrease in cash and cash equivalents(355,904)(283,682)

Cash and cash equivalents, beginning of year
Cash and cash equivalents, end of year$

1,348,272
992,368$

1,631,954
1,348,272

$

3,666

$

85,782

Supplemental disclosure of cash flow information:
Cash paid for interest

The accompanying notes are an integral part of these statements.
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GREEK ORTHODOX ARCHDIOCESE OF AMERICA
Notes to Financial Statements
December 31, 2014 and 2013

1.

ORGANIZATION AND NATURE OF ACTIVITIESThe Greek Orthodox Archdiocese of America (the “Archdiocese”) is the administrative body of the
Greek Orthodox Church in America. The Archdiocese relies primarily on funding from its parishes
located throughout the United States.
The Archdiocese is exempt from Federal income taxes under Section 501(c)(3) of the Internal Revenue Codeand similar state and local provisions. Therefore, no provision for income taxes has been made in theaccompanying financial statements. In addition, the Archdiocese has not been determined to be a private
foundation within the meaning of Section 509(a) of the Internal Revenue Code.
The Archdiocese is related to a number of other entities by virtue of its charter with the Ecumenical
Patriarchate, and by common board membership. The accompanying financial statements do not include
the financial position, changes in net assets and cash flows of the following affiliated organizations:











2.

Holy Metropolises of Atlanta, Boston, Chicago, Denver, Detroit, New Jersey, Pittsburgh and
San Francisco
Hellenic College, Inc.
The Cathedral School
Greek Orthodox Archdiocesan Cathedral of the Holy Trinity (“Cathedral”)
Saint Basil Academy
Greek Orthodox Ladies Philoptochos Society, Inc.
St. Michael’s Home, Inc.
Order of Saint Andrew the Apostle Archons of the Ecumenical Patriarchate
The Archbishop Iakovos Leadership 100 Endowment Fund, Inc. (“Leadership 100”)
FAITH: An Endowment for Orthodoxy & Hellenism (“FAITH”)

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESBasis of Presentation
The accompanying financial statements have been prepared in accordance with accounting principles
generally accepted in the United States of America using the accrual basis of accounting.
Classifications of Net Assets
The net assets of the Archdiocese and changes therein are classified and reported based upon the existence orabsence of donor-imposed restrictions as follows:
Unrestricted – Net assets that are not subject to donor-imposed stipulations and that may be expended forany purpose in performing the primary objectives of the Archdiocese. Included within unrestricted net
assets is a board designated fund, the Cathedral Fund, that was designated by Archbishop Iakovos, to be
used, upon approval, for the benefit of the Greek Orthodox Archdiocesan Cathedral of the Holy Trinity(“Cathedral”) and Cathedral-related projects. As of December 31, 2014 and 2013, the Cathedral Fund had
a balance of $1,211,484 and $1,206,281, respectively, and is included as part of the Archdiocese’s
investments in the accompanying statements of financial position.

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GREEK ORTHODOX ARCHDIOCESE OF AMERICA
Notes to Financial Statements
December 31, 2014 and 2013

Temporarily Restricted – Net assets resulting from contributions and other inflows of assets whose useby the Archdiocese is limited by donor-imposed stipulations that either expire by the passage of time or
can be fulfilled and removed by the actions of the Archdiocese pursuant to those stipulations. When such
stipulations end or are fulfilled, such temporarily restricted net assets are reclassified to unrestricted net
assets and reported in the accompanying statements of activities.
Permanently Restricted – Net assets resulting from contributions whereby the principal has been restrictedby the donor to be held and invested in perpetuity and the income used in accordance with the donor’s
stipulations, if any.
Cash and Cash Equivalents
The Archdiocese considers all highly liquid investments with original maturities of three months or less fromthe date of purchase to be cash and cash equivalents, except for those cash equivalents which are included in
the Archdiocese’s investment portfolio which are held for long-term investment purposes.
Investments
Investments in equity securities with readily determinable fair values are reported at fair value based onquoted market prices. Investments in debt securities are measured using quoted market prices whereavailable. If quoted market prices for debt securities are not available, the fair value is determined using
an income approach valuation technique that considers, among other things, rates currently observed inpublicly traded markets for debt with similar terms to companies with comparable credit risk, the issuer’s
credit spread, and illiquidity by sector and maturity. All investments are managed by outside investment
advisors subject to the review, approval, and control by the Archdiocese. Such valuations involve
assumptions and methods that are reviewed by the Archdiocese.
Purchases and sales of securities are reflected on a trade-date basis. Gains and losses on sales of securities
are determined based on average cost and are recorded in the statement of activities in the period in which thesecurities are sold. Dividends and interest are recognized as earned. Contributed investments are valued attheir fair market value on the date received.
Investment securities, in general, are exposed to various risks, such as interest rate, credit and overall market
volatility. Due to the level of risk associated with certain investment securities, it is reasonably possible thatchanges in the values of investment securities will occur in the near term and such changes could materiallyaffect the amounts reported in the accompanying financial statements.
Fair Value Measurements
The Archdiocese follows guidance that defines fair value, establishes a framework for measuring fair value,establishes a fair value hierarchy based on the inputs used to measure fair value and enhances disclosure
requirements for fair value measurements. This guidance maximizes the use of observable inputs andminimizes the use of unobservable inputs by requiring that the observable inputs be used when available.

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GREEK ORTHODOX ARCHDIOCESE OF AMERICA
Notes to Financial Statements
December 31, 2014 and 2013

Observable inputs are inputs that market participants would use in pricing the asset or liability based onmarket data obtained from independent sources. Unobservable inputs reflect assumptions that market
participants would use in pricing the asset or liability based on the best information available in thecircumstances. The hierarchy is broken down into three levels based on the transparency of inputs asfollows:
Level 1 - Quoted prices are available in active markets for identical assets or liabilities as of themeasurement date. A quoted price for an identical asset or liability in an active market
provides the most reliable fair value measurement because it is directly observable to themarket.
Level 2 - Pricing inputs other than quoted prices in active markets, which are either directly or indirectly
observable as of the measurement date. The nature of these securities include investments
for which quoted prices are available but traded less frequently and investments that are
fair valued using other securities, the parameters of which can be directly observed. Also
included in Level 2 are investments measured using a net asset value (“NAV”) per share, or its
equivalent, that may be redeemed at NAV at the statement of financial position date or in thenear term, which the Archdiocese has determined to be within 90 days.
Level 3 - Securities that have little to no pricing observability as of the measurement date. These
securities are measured using management’s best estimate of fair value, where the inputs into
the determination of fair value are not observable and require significant management
judgment or estimation. Also included in Level 3 are investments measured using a NAV
per share, or its equivalent, that can never be redeemed at NAV at the statement of financial
position date or in the near term or for which redemption at NAV is uncertain due to lockup
periods or other investment restrictions.
A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input thatis significant to the fair value measurement. However, the determination of what constitutes “observable”
requires significant judgment by the Archdiocese. The Archdiocese considers observable data to be thatmarket data that is readily available, regularly distributed or updated, reliable and verifiable, not proprietary,and provided by independent sources that are actively involved in the relevant market. The categorization ofa financial instrument within the hierarchy is based upon the pricing transparency of the instrument and does
not necessarily correspond to the Archdiocese’s perceived risk of that instrument.
Inventory
Inventory is valued at the lower of cost or market. Such inventory consists primarily of religious books,
publications and other program-related literature and materials. As of December 31, 2014 and 2013, a
reserve for obsolescence was recorded of $55,710.
Receivables
Due to the uncertainty surrounding collection, management provides an allowance for doubtful accounts
based on the consideration of the type of receivable, responsible party, the known financial condition of therespective party, historical collection patterns and comparative aging. These allowances are maintained at alevel management considers adequate to provide for subsequent adjustments and potential uncollectible
accounts. These estimates are reviewed periodically and, if the financial condition of a party changes
significantly, management will evaluate the recoverability of any receivables from that organization and write-8-GREEK ORTHODOX ARCHDIOCESE OF AMERICA
Notes to Financial Statements
December 31, 2014 and 2013

off any amounts that are no longer considered to be recoverable. Any payments subsequently collected onsuch receivables are recorded as income in the period received.
Land, Buildings and Equipment, Net
Land, buildings and equipment, net are recorded at cost or, if donated, at fair market value, at the date of
the gift, less accumulated depreciation. The Archdiocese capitalizes land, buildings and equipment costing$1,000 or more, which have a useful life of more than one year. Depreciation is calculated on a straight-line
basis over the estimated useful lives of the related assets, ranging from 3 to 50 years. Works of art are notdepreciated.
Due To/From Related Entities
Amounts due to/from related entities represent amounts loaned to/from and or expenses paid on behalf ofArchdiocesan affiliates.
Beneficial Interest in Trust Held by Others
The Archdiocese is the beneficiary of a perpetual trust whereby the donor contributed assets to a third-party
trustee. The trustee distributes investment income annually to the Archdiocese and the other named
beneficiaries in the percentages specified in the trust documents. These distributions are reported as anincrease in unrestricted net assets.
The Archdiocese values the trust at its fair value, which is represented by the percentage ownership of theassets in the trust. Changes in the fair value of the trust’s assets are reported in the accompanying statementsof activities as increases (decreases) in permanently restricted net assets.
Investments Held for Others
The Archdiocese holds investments on behalf of others to be distributed in accordance with their direction.
As these funds cannot be used or directed by the Archdiocese, the fair value of these investments is also
reflected as a liability and included within custody funds held and amounts due to related parties in theaccompanying statements of financial position. Any unrealized gain or loss on these investments is
recognized as an increase or decrease in the investments and an increase or decrease in the custody funds
held for others liability.
Grants Payable
Grants payable represent unconditional promises to give that are expected to be paid within one year.
Conditional Asset Retirement Obligation
Asset retirement obligations include, but are not limited to, certain types of environmental issues that arelegally required for remediation upon an asset’s retirement as well as contractually required asset retirement
obligations. Conditional asset retirement obligations (“CARO”) are legal obligations associated with theretirement of tangible long-lived assets in which the timing and/or method of settlement is conditional on afuture event that may or may not be within the control of the entity. An entity is required to recognize aliability for the fair value of a conditional asset retirement obligation if the fair value of the liability can bereasonably estimated, even if conditional on a future event. The Archdiocese has conditional asset retirement
obligations primarily associated with the eventual remediation and abatement of asbestos located within theconstruct of their administration buildings. As of December 31, 2014 and 2013, a liability of $45,523 isincluded within accounts payable and accrued expenses in the accompanying statements of financial position.
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GREEK ORTHODOX ARCHDIOCESE OF AMERICA
Notes to Financial Statements
December 31, 2014 and 2013

Contributions and Grants
The Archdiocese records contributions of cash and other assets when an unconditional promise to give such
assets is received from a donor. Contributions are recorded at the fair value of the assets received and areclassified as either unrestricted, temporarily restricted or permanently restricted, depending on whether thedonor has imposed a restriction on the use of such assets.
Contributions not expected to be received within one year are recognized as temporarily restricted support
and are discounted using a credit-adjusted discount rate assigned in the year the pledge originates.
Amortization of the discount is recorded as additional contribution revenue in accordance with the donorimposed restrictions, if any, on the contributions.
Contributions are reported as an increase in unrestricted net assets unless use of the related assets islimited by donor-imposed restrictions. Contributions that are permanently restricted by donors for use as
endowments are invested in perpetuity. The income is used for operating purposes when expenditures satisfy
the donors’ restrictions and such amounts are appropriated for expenditure by the Archdiocesan Council.
Income amounts that exceed related expenditures during a fiscal period remain as temporarily restricted net
assets.
The Archdiocese reports gifts of property, plant and equipment as unrestricted support unless explicit donor
stipulations specify how the donated assets must be used. Gifts of long-lived assets with explicit restrictions
that specify how the assets are to be used and gifts of cash or other assets that must be used to acquire assets
are reported as restricted support. Absent explicit donor stipulations about how long such assets must be
maintained, the Archdiocese reports expirations of donor restrictions when the donated or acquired long-lived
assets are placed in service.
National Ministry Commitment
Every parish within the Archdiocese is given a suggested annual financial assessment to help support themission of the Church. Due to the uncertainty of collection, such assessments are recognized as revenue inthe period they are received.
Other Revenue
The Archdiocese generates revenue from programs, including summer camps, and the sales of religious
books, publications and other program related literature and materials. Such income is recorded in the period
the services are performed or upon the date of sale. Clergy Laity conference income is earned in the period
which the conference takes place.
Functional Allocation of Expenses
Costs related to the various programs and activities of the Archdiocese have been summarized on a functional
basis in the accompanying statements of activities. These costs can generally be identified with the programservice to which they relate and are charged accordingly. Other expenses by function, have been allocatedamongst the programs and supporting services benefited on the basis of the number of employees per
department.

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GREEK ORTHODOX ARCHDIOCESE OF AMERICA
Notes to Financial Statements
December 31, 2014 and 2013

Income Taxes
The Archdiocese recognizes the tax effects from an uncertain tax position in the financial statements only
if the position is “more-likely-than-not” to be sustained if the position were to be challenged by a taxing
authority. The assessment of the tax position is based solely on the technical merits of the position, without
regard to the likelihood that the tax position may be challenged. Although the Archdiocese is exempt fromincome tax under Section 501(c)(3) of the Code, they are subject to tax on income unrelated to its exempt
purpose, unless that income is otherwise excluded under the Code. The tax years ending 2011, 2012, 2013
and 2014 are still open to audit for both federal and state purposes. As of December 31, 2014, management
determined that there are no significant uncertain tax positions within its financial statements.
Concentration of Credit Risk
Financial instruments that potentially subject the Archdiocese to concentrations of credit and market risk
consist principally of cash and cash equivalents and investments on deposit with financial institutions, whichfrom time to time may exceed the Federal Deposit Insurance Corporation (“FDIC”) limit. Management does
not believe that a significant risk of loss due to the failure of a financial institution the Archdiocese utilizes islikely.
Fair Value of Financial Instruments
The carrying value of cash, cash equivalents, receivables, prepaid expense, accounts payable and accrued
expenses and notes payable is a reasonable estimate of their fair value due to their short-term nature. The
carrying value of Archdiocese’s beneficial interest in trusts held by others is estimated based on the present
value of expected future cash flows, and thus approximates fair value.
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 reported
amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the reporting period. Actual results
could differ from those estimates.
Reclassifications
Certain reclassifications have been made to the 2013 financial statements in order to conform to the 2014
presentation. Such reclassifications did not change total assets, liabilities, revenues, expenses or changes in
net assets as reflected in the 2013 financial statements.

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GREEK ORTHODOX ARCHDIOCESE OF AMERICA
Notes to Financial Statements
December 31, 2014 and 2013

3.

INVESTMENTS, AT FAIR VALUE
As of December 31, 2014 and 2013, investments, at fair value, by fair value hierarchy, consisted of thefollowing:

2014
Level 1
Cash and cash equivalents
Common stock
Mutual funds
Corporate bonds
Municipal bonds
Auction rate securities
Fixed income annuity$ 1,390,442
3,772,160
1,570,001$ 6,732,603

Level 2$

188,215
1,991,565$ 2,179,780$$

Level 3

Total

287,445
87,452374,897$ 1,390,442
3,772,160
1,570,001
188,215
1,991,565
287,445
87,452$ 9,287,280

Level 3

Total

46,84585,002
131,847$ 1,455,396
3,679,213
1,434,197
312,186
1,466,985
642,575
85,002$ 9,075,554

2013
Level 1
Cash and cash equivalents
Common stock
Mutual funds
Corporate bonds
Municipal bonds
Auction rate securities
Fixed income annuity$ 1,455,396
3,679,213
1,434,197$ 6,568,806

Level 2$

312,186
1,466,985
595,730$ 2,374,901$$

The following table summarizes the changes in Archdiocese’s Level 3 investments for the years ended
December 31, 2014 and 2013:
Balance as of January 1, 2013 (a)Sales
Net depreciation of investments
Transfer out (b)Net appreciation of investments
Balance as of December 31, 2013
Transfer in (c)Net appreciation of investments
Balance as of December 31, 2014

$ 1,316,882
165,002(1,013,000)(337,824)
787
131,847
238,945
4,105$
374,897(a)

The Archdiocese’s policy is to recognize transfers between the levels as of the actual date of theevent or change in circumstances that caused the transfer.

(b)Transferred to Level 2 due to observable lighter trading in the exact security near the measurement
date that was used as the basis for price.

(c)Transferred to Level 3 due to less observable trading in the exact security near the measurement datethat was used as the basis for price.
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GREEK ORTHODOX ARCHDIOCESE OF AMERICA
Notes to Financial Statements
December 31, 2014 and 2013

Investment income consisted of the following for the years ended December 31, 2014 and 2013:

Interest and dividends
Net appreciation in fair value of investments

$
$

4.

2014

2013

177,815 $486,402664,217 $

189,569
1,150,493
1,340,062

LAND, BUILDINGS AND EQUIPMENT, NET
Land, buildings and equipment, net, consisted of the following at December 31, 2014 and 2013:
2014
Land
Building and improvements
Furniture, fixtures and equipment
Website development costs
Fine arts$

471,223
6,960,478
2,249,584
464,263
8,910
10,154,458(5,612,366)$ 4,542,092

Less: Accumulated depreciation2013$

471,223
6,829,544
2,249,022
464,263
8,910
10,022,962(5,466,828)$ 4,556,134

Depreciation expense amounted to $145,538 and $159,082 for the years ended December 31, 2014 and 2013,
respectively.
5.

NOTES PAYABLEThe Archdiocese has an unsecured term loan with Two River Community Bank. Principal and interest of$12,480 were payable monthly with the remaining balance due at maturity on July 31, 2015 bearing afixed interest rate of 5.25%. As of December 31, 2013, amounts outstanding under the term loan totaled$1,709,680. On March 21, 2014, the balance of the loan was paid in full.

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GREEK ORTHODOX ARCHDIOCESE OF AMERICA
Notes to Financial Statements
December 31, 2014 and 2013

6.

INVESTMENTS AND CUSTODY FUNDS HELD FOR OTHERS
As of December 31, 2014 and 2013, investments held for others, by fair value hierarchy, consisted of thefollowing:

2014
Level 1
Cash equivalents
Common stock
Mutual funds
Corporate bonds
Municipal bonds
U.S. government and agency securities
Auction rate securities$ 2,335,159
542,576
714,737$ 3,592,472

Level 2$$

10,031
171,333
514,531
695,895$$

Level 3

Total

453,901
453,901$ 2,335,159
542,576
714,737
10,031
171,333
514,531453,901
4,742,268

Cash held for investment

2,057,496$ 6,799,764

2013
Level 1
Cash and cash equivalents
Common stock
Mutual funds
Corporate bonds
Municipal bonds
U.S. government and agency securities
Auction rate securities$ 1,281,534
503,186
848,455$ 2,633,175- 14 -

Level 2$60,78991,054
963,262
257,906$ 1,373,011$$

Level 3

Total

257,646
257,646$ 1,281,534
503,186
848,455
60,78991,054
963,262
515,552$ 4,263,832

GREEK ORTHODOX ARCHDIOCESE OF AMERICA
Notes to Financial Statements
December 31, 2014 and 2013

The following table summarizes the changes in Archdiocese’s Level 3 investment held for others for theyears ended December 31, 2014 and 2013:
Balance as of January 1, 2013 (a)Sales
Net depreciation of investments
Balance as of December 31, 2013
Sales
Transfer in (b)Net appreciation of investments
Balance as of December 31, 2014$$

259,848(23,422)
21,220257,646(25,000)
211,401
9,854
453,901(a)

The Archdiocese’s policy is to recognize transfers between the levels as of the actual date of theevent or change in circumstances that caused the transfer.

(b)Transferred to Level 3 due to less observable trading in the exact security near the measurement datethat was used as the basis for price.

Additions, investment income (loss) and distributions pertaining to such accounts, which are excluded fromthe accompanying statements of activities, are shown below:
Balance atJanuary 1,
2014
Archbishop Iakovos Library Trust
St. Basil Spyropoulos Fund
Orthodox Health Plan Dividend FundSpyridon Trust IM
St. Nicholas Church Rebuilding Fund*$ 1,105,414
746,103
977,992
876,396
965,124$ 4,671,029

Additions$230,397
8,772,578$ 9,002,975

Balance atJanuary 1,
2013
Archbishop Iakovos Library Trust
St. Basil Spyropoulos Fund
Orthodox Health Plan Dividend FundSpyridon Trust IM
St. Nicholas Church Rebuilding Fund*

Additions$ 1,082,218
624,729
1,406,212
840,268$

398
10,257$ 3,953,427

1,173,629$ 1,184,284

Net
Investment
Income (Loss)

Release ofFunds toThird Parties

Balance at
December 31,
2014

$

$

(100,000)(380,017)(117,500)(3,993,892)$ (4,591,409)$ 1,015,601
786,987
839,371795,214
5,782,744$ 9,219,917

Net
Investment
Income (Loss)

Release ofFunds toThird Parties

Balance at
December 31,
2013

$

$

$

10,18740,884
10,99936,31838,934
137,322

22,798
126,470(8,841)
143,784

3,298$ 287,509$(5,096)(419,379)(117,913)

1,105,414
746,103
977,992
876,396(211,803)(754,191)

965,124$ 4,671,029

As of December 31, 2014 and 2013, the Archdiocese had custody funds held and amounts due to relatedparties of $9,219,917 and $4,671,029, respectively, of which $6,799,764 and $4,263,832, respectively, areincluded within investments held for others on the accompanying statements of financial position.
- 15 -

GREEK ORTHODOX ARCHDIOCESE OF AMERICA
Notes to Financial Statements
December 31, 2014 and 2013*7.

In 2013, the Archdiocese commenced a capital campaign on behalf of and for the specific purpose of rebuilding St. Nicholas Greek
Orthodox Church (“St. Nicholas”). As St. Nicholas is the specified and ultimate beneficiary of any contributions received from thiscampaign, the Archdiocese is accounting for thisarrangement as an agency transaction. As such, contributions received resulting
from the capital campaign and subsequent disbursements made by the Archdiocese from these funds, are not reflected in theaccompanying statements of activities. Alternatively, funds collected are recorded as an asset within investments held for others
and the fair value of these investments is also reflected as a liability and included within custody funds held and amounts due torelated parties on the accompanying statements of financial position. Any unrealized gain or loss on these investments is recognized
as an increase or decrease in these investments and liabilities. Subsequent disbursements are recorded as a reduction of these assets
and liabilities balances.

EMPLOYEE BENEFIT PLANS
Pension Plans
The Archdiocese participates in a noncontributory defined benefit pension plan covering substantially all
full-time lay employees and clergy. Retirement benefits are based on years of service and the employees’
compensation during those years of service. Plan assets are held by third party investment managers and areinvested in various marketable debt, equity and money market accounts. Minimum funding requirements are
determined by an independent actuary.
The plan is considered a church plan and is therefore exempt from the provisions of the Employee Retirement
Income Security Act of 1974 (“ERISA”), as amended. Due to the nature of the plan, it is not practicable todetermine the extent to which the assets of the plan cover the actuarially computed value of vested benefits
for the Archdiocese, on a standalone basis. In addition, because the plan is considered a multi-employer plan,
it is only subject to certain minimum reporting requirements. Pension expense allocated to the Archdiocese
for the years ended December 31, 2014 and 2013 amounted to $714,600 and $608,000, respectively.
As of December 31, 2014 and 2013, amounts due to the pension plan totaled $2,529,657 and $2,603,035,
respectively, and are included within pension and other accrued retirement benefits in the accompanying
statements of financial position.
The Archdiocese also sponsors a noncontributory 403(b) defined contribution plan for all employees. For
the years ended December 31, 2014 and 2013, there were no employer contributions to the 403(b) defined
contribution plan.
Other Retirement Benefits
The Archdiocese also provides supplemental retirement benefits to certain hierarchs outside of the plan
noted above. As of December 31, 2014 and 2013, the Archdiocese has recorded a liability of $1,364,975
and $1,378,210, respectively, for these benefits, and are included within pension and other accrued retirement
benefits in the accompanying statements of financial position.

- 16 -

GREEK ORTHODOX ARCHDIOCESE OF AMERICA
Notes to Financial Statements
December 31, 2014 and 2013

8.

TEMPORARILY RESTRICTED NET ASSETS
Temporarily restricted net assets, at December 31, 2014 and 2013, consisted of the following:2014
Taylor Scholarship Fund
Katrina Hurricane Fund
Katina Malta Scholarship Fund
Miscellaneous Leadership 100 Grants
Hellenic College Scholarship Fund
Teacher Training Program
Niarchos Archival Grant Fund
Florida Hurricane Fund
Educational Scholarship Fund
Gioles Scholarship Fund
Greece Hurricane Relief FundJames Tembelis Scholarship
Asian Disaster Fund
Clergy 100
St. John Chrysostom Fund
Xanthippi Stavros Fund
Niarchos Greek Education Fundth
September 11 Relief Fund
Palelogos Scholarship fund
Relief Fund for the People of Greece
Miscellaneous FAITH Grants
Trakatellis Fellowship Fund
Haiti Relief Fund
Cyprus Relief Fund
Philippines Typhoon Relief Fund
Irene Ladas Scholarship for Seminaries
Various other funds$$- 17 -

1,655,202
5,554
563,474
840,763314,541
10,070123,540
81,635
201,691
143,147
119,337
349,969
4,570
1,000
73,890100,000
16,98825,90385,775
183,854
85,78936,514
31,232
136,500
678,6875,869,625

2013
$

$

1,657,994
5,554
518,331587,783
312,660
10,070123,740
81,635
201,691
125,269
119,337
282,188
4,570
1,000
80,539100,000
16,98825,90386,775230
42,000187,472
85,789219,646
68,432200,000
668,632
5,814,228

GREEK ORTHODOX ARCHDIOCESE OF AMERICA
Notes to Financial Statements
December 31, 2014 and 2013

9.

NET ASSETS RELEASED FROM RESTRICTIONS
Temporarily restricted net assets were released from donor-restrictions by either incurring expenses orsatisfying the restricted purpose during the years ended December 31, 2014 and 2013 as follows:2014

Miscellaneous Leadership 100 Grants
Miscellaneous FAITH Grants
Cyprus Relief Fund
Byzantine Choir
Taylor Scholarship Fund
Katina Malta Scholarship Fund
Paleologos Scholarship Fund
St John Chrysostom Fund
Gioles Scholarship Fund
Relief Fund for the People of Greece
Trakatellis Fellowship Fund
Town of Westfield Bank - Credit Line
Irene Ladas Estate Scholarship For Seminaries
Philippines Relief Fund
Other
Hellenic College
Ecumenical Patriarchate
St. Nicholas Relief Fund
Hurricane Sandy Relief Fund
Haiti Relief Fund

10.

2013

$

414,422
318,750275,000
199,502190,288
32,00033,00020,964
13,51012,1806,010
1,725,869
63,50056,600284,644-$549,963
201,738
327,405
278,381
153,705
35,00030,50011,412
10,010
181,000
6,010
61,833600,000
500,000
521,574
93,38525,000$3,646,239$

3,586,916

PERMANENTLY RESTRICTED NET ASSETS
Permanently restricted net assets are restricted to investment in perpetuity. At December 31, 2014 and2013, the Archdiocese’s permanently restricted net assets consisted of the following:

Taylor Scholarship Fund*James J. Tembelis Scholarship Fund
Beneficial interest in George Marinos perpetual trust
Gioles Scholarship Fund*
Other*
Katina Malta Scholarship Fund
Vlisidis Scholarship Fund

*

2014

2013

$ 1,000,000
512,355
367,872
248,165
112,289
95,99137,048$ 2,373,720$ 1,000,000
509,551
364,469
247,510112,289
95,78137,005$ 2,366,605

Pursuant to the donor gift instrument, 90% of net income from the fund is to be distributed for individual scholarships and theremaining 10% of net income shall become permanently restricted and added to the corpus of the scholarship fund.

- 18 -

GREEK ORTHODOX ARCHDIOCESE OF AMERICA
Notes to Financial Statements
December 31, 2014 and 201311.

ENDOWMENTThe Archdiocese’s donor-restricted (gifted) endowment consists of 7 individuals funds established for avariety of purposes, principally in support of the Archdiocese’s mission; it excludes permanently restricted
beneficial interests in trusts held by others. Net assets associated with endowment funds are classified andreported based on the existence or absence of donor-imposed restrictions.
On September 17, 2010, New York State passed the New York State Prudent Management of Institutional
Funds Act (“NYPMIFA”), its version of the Uniform Prudent Management of Institutional Funds Act(“UPMIFA”). All not-for-profit organizations formed in New York must apply this law. The Archdioceseclassifies donor-restricted endowment funds as permanently restricted net assets, unless otherwise stipulatedby the donor: (a) the original value of gifts donated to the permanent endowment, (b) the original value ofsubsequent gifts to the permanent endowment and (c) accumulations to the permanent endowment made inaccordance with the direction of the applicable donor gift instrument at the time the accumulation is added
to the funds.
The remaining portion of the donor-restricted endowment fund not classified in permanently restricted net
assets is classified as temporarily restricted net assets, until such amounts are appropriated for expenditureby the Archdiocese in a manner consistent with the uses, benefits, purposes and duration for which theendowment is established and the standard of prudence prescribed by NYPMIFA.
In accordance with NYPMIFA, the Archdiocese considers the following factors in making a determination
to appropriate or accumulate donor-restricted endowment funds: the purpose, duration, and preservation of
the endowment fund; expected total return of investments; general economic conditions; the possible effects
of inflation and deflation; other resources of the Archdiocese; and the investment policy of the Archdiocese.
The Archdiocese has adopted investment and spending policies for endowment assets that support theobjective of providing a sustainable and increasing level of endowment income distribution to support theArchdiocese’s activities while seeking to maintain the purchasing power of the endowment assets. The
Archdiocese’s primary investment objective is to maximize total return within reasonable and prudent
levels of risk while maintaining sufficient liquidity to meet disbursement needs and ensure preservation ofcapital.
To satisfy its long-term rate-of-return objectives, the Archdiocese relies on a total return strategy, theobjective of which is to achieve a return consisting of a combination of current income and capital
appreciation, without regard to an emphasis on either, recognizing that changes in market conditions andinterest rates will result in varying strategies in an attempt to optimize results. The endowment portfolio isdiversified among various net asset classes and strategies to help reduce risk.

- 19 -

GREEK ORTHODOX ARCHDIOCESE OF AMERICA
Notes to Financial Statements
December 31, 2014 and 2013

The following represents a detail of the endowment net asset composition, excluding third-party perpetual
trusts in the amount of $367,872 and $364,469, as of December 31, 2014 and 2013, respectively.
Composition of Endowment
Net Assets by Type of Fund
Donor-restricted endowment funds

Unrestricted

Temporarily Permanently
Restricted Restricted$-$ 1,890,486 $ 2,005,848 $ 3,896,334

$

-

$

-

$ 1,572,188 $ 2,002,136 $ 3,574,324
54,526
5,849
60,375278,229(2,137)
276,092(14,457)(14,457)$ 1,890,486 $ 2,005,848 $ 3,896,334

Total

Changes in Endowment Net Assets
Endowment net assets, beginning of year
Investment return:Interest and dividends
Net appreciation (depreciation)
Appropriation of endowment assets for
expenditure
Contributions
Endowment net assets, end of year

2013
Temporarily Permanently
Unrestricted Restricted Restricted

Composition of Endowment
Net Assets by Type of Fund
Donor-restricted endowment funds

Total

$

-

$ 1,572,188 $ 2,002,136 $ 3,574,324$-$ 887,121 $ 1,998,770 $ 2,885,891

Changes in Endowment Net Assets
Endowment net assets, beginning of year
Investment return:
Investment income
Net appreciation (depreciation)
Appropriation of endowment assets for
expenditure
Contributions
Endowment net assets, end of year-$

- 20 --

50,542645,399

4,052
(686)

54,594
644,713(10,874)(10,874)$ 1,572,188 $ 2,002,136 $ 3,574,324

GREEK ORTHODOX ARCHDIOCESE OF AMERICA
Notes to Financial Statements
December 31, 2014 and 201312.

RELATED PARTY TRANSACTIONSThe Archdiocese provided $1,500,000 to support the operations of Hellenic College in both 2014 and 2013
and such amounts are included as part of education expense in the accompanying statements of activities.
The Archdiocese provided $1,000,000 to support the operations of the Ecumenical Patriarchate inboth 2014 and 2013 and such amounts are included as part of Orthodoxy in the World expense in theaccompanying statements of activities.
The Archdiocese provided $66,358 to support the operations of the Cathedral in 2013. Such amounts areincluded as part of other program services – affiliated organizations expense in the accompanying 2013statement of activities. No support was provided in 2014.
The Archdiocese provided $521,574 of support in 2013 on behalf of St. Nicholas pertaining to costs
incurred associated with the planned redevelopment of the church. Such amounts are included as part ofother program services – affiliated organizations expense in the accompanying 2013 statement of activities.
No support was provided in 2014.
During 2014, the Archdiocese received $677,402 and $276,750 of grants from Leadership 100 and FAITH,
respectively. During 2013, the Archdiocese received $944,300 and $198,138 of grants from Leadership
100 and FAITH, respectively. Such grants were recorded as increases to temporarily restricted net assets
to benefit specific programs of the Archdiocese as stipulated by the governing boards of the respective
affiliates.
As of December 31, 2014 and 2013, amounts due from related parties totaled $0 and $176,030,
respectively, net of allowance for doubtful accounts of $1,395,941 and $1,363,884, respectively. The
activity for the allowance for doubtful accounts is as follows as of December 31, 2014 and 2013:2014
Allowance for doubtful accounts, beginning of year
Change in allowance
Allowance for doubtful accounts, end of year

2013

$

1,363,884
32,057$

1,333,225
30,659$1,395,941$

1,363,884

Additionally, certain contributions received by the Archdiocese are from members of management and theArchdiocesan Council.

- 21 -

GREEK ORTHODOX ARCHDIOCESE OF AMERICA
Notes to Financial Statements
December 31, 2014 and 2013

13.

COMMITMENTS AND CONTINGENCIESThe Archdiocese, in the normal course of its operations, is a party to various legal proceedings andcomplaints, some of which are covered by insurance. While it is not feasible to predict the ultimate
outcomes of such matters, management of the Archdiocese is not aware of any claims or contingencies,
which are not covered by insurance, that would have a material adverse effect on the Archdiocese’s
financial position, changes in net assets or cash flows. Accordingly, no provision for any liability that may
result from these matters has been made in the accompanying financial statements.

14.

SUBSEQUENT EVENTSThe Archdiocese evaluated its December 31, 2014 financial statements for subsequent events throughDecember 22, 2015, the date the financial statements were available to be issued. The Archdiocese
is not aware of any material subsequent events which would require recognition or disclosure in theaccompanying financial statements.

- 22 -