Financial Statements Together with
Report of Independent Certified Public Accountants
GREEK ORTHODOX ARCHDIOCESE OF AMERICA
December 31, 2011 and 2010

GREEK ORTHODOX ARCHDIOCESE OF AMERICATABLE OF CONTENTS

Page(s)Report of Independent Certified Public Accountants

1

Financial Statements:
Statements of Financial Position as of December 31, 2011 and 20102

Statements of Activities for the years ended December 31, 2011 and 20103

Statements of Cash Flows for the years ended December 31, 2011 and 2010

4

Notes to Financial Statements

5 - 20Audit  Tax  Advisory
Grant Thornton LLP
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www.GrantThornton.com

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 statements of financial position of the Greek Orthodox Archdiocese of
America (the “Archdiocese”) as of December 31, 2011 and 2010, and the related statements of activities
and cash flows for the years then ended. These financial statements are the responsibility of theArchdiocese’s management. Our responsibility is to express an opinion on these financial statements basedon our audits.
We conducted our audits in accordance with auditing standards generally accepted in the United States ofAmerica established by the American Institute of Certified Public Accountants. Those standards requirethat 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 Archdiocese’s internal control over financial
reporting. 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 and significant 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.
As explained in Note 1, the financial statements presented are only for the Archdiocese as referred to above
and do not include the financial position, changes in net assets and cash flows of any affiliates of theArchdiocese. Accordingly, the accompanying financial statements are not intended to present the combined
financial position of the Archdiocese and affiliates as of December 31, 2011 and 2010, or the changes intheir combined net assets, or their combined cash flows for the years then ended.
In our opinion, the financial statements referred to above present fairly, in all material respects, thefinancial position of the Greek Orthodox Archdiocese of America as of December 31, 2011 and 2010, andthe changes in its net assets and its cash flows for the years then ended, in conformity with accounting
principles generally accepted in the United States of America.

New York, New York
July 3, 2013

Grant Thornton LLP
U.S. member firm of Grant Thornton International Ltd

GREEK ORTHODOX ARCHDIOCESE OF AMERICA
Statements of Financial Position
As of December 31, 2011 and 2010ASSETSCash and cash equivalents
Accounts receivable
Investments, at fair value
Inventory
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

2011

2010

$ 1,089,385
67,14010,829,881
589,681
34,694
102,522
94,512
4,095,974
311,373
4,147,115$ 1,055,366
91,566
12,517,265
550,327
59,50097,37373,346
4,025,997
330,272
4,983,964$ 21,362,277$ 23,784,976$ 4,153,617
6,523
1,849,266
1,638,579
4,147,115
11,795,100$ 3,835,847
9,603
80,0001,916,114
1,197,295
4,983,964
12,022,823

1,636,194
5,623,901
2,307,082
9,567,177

1,980,611
7,458,191
2,323,351
11,762,153$ 21,362,277$ 23,784,976

LIABILITIES AND NET ASSETSLIABILITIES
Accounts payable and accrued expenses
Deferred revenue
Grants payable
Notes payable
Other accrued retirement benefits
Custody funds held for others
Total liabilities
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.
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GREEK ORTHODOX ARCHDIOCESE OF AMERICA
Statements of Activities
For the years ended December 31, 2011 and 20102011
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
Other income
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

18,564,231
3,021,495
418,949
1,818,525
573,054
84,383
248,2933,489,358$

1,324,640
270,000
60,428(3,489,358)

2010
Permanently
Restricted

$

2,630
(18,899)
-

Total
$

18,564,231
4,346,135
270,000
418,949
1,818,525
573,054
84,383311,351(18,899)-

Temporarily
Restricted

Unrestricted$

17,604,959
3,273,641
467,900
1,675,128
646,599
60,322
669,437
489,308
1,568,956$

1,034,893
25,000213,550(1,568,956)

Permanently
Restricted
$

547
4,672
-

Total
$

17,604,959
4,308,534
25,000467,900
1,675,128
646,599
60,322
669,437
703,405
4,672-

28,218,288(1,834,290)(16,269)

26,367,729

26,456,250(295,513)

5,219

26,165,956

6,358,803
5,271,780
1,870,527
2,794,642
2,206,017
1,789,218
1,303,563
506,585---

6,358,803
5,271,780
1,870,527
2,794,642
2,206,017
1,789,218
1,303,563
506,585-

5,503,144
5,054,906
1,709,804
2,447,521
2,414,256
494,114816,103425,773
836,520--

5,503,144
5,054,906
1,709,804
2,447,521
2,414,256
494,114816,103425,773
836,520

22,101,135--

22,101,135

19,702,141--

19,702,141

Fundraising
General and administrative expenses

103,4076,358,163--

103,4076,358,163

167,8445,609,220--

167,8445,609,220

T otal expenses

28,562,705--

28,562,705

25,479,205--

25,479,205(344,417)(1,834,290)(16,269)(2,194,976)

977,045(295,513)

5,219

686,751

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

1,980,611$

1,636,194

7,458,191$

5,623,901

2,323,351$

2,307,082

The accompanying notes are an integral part of these statements.
-3-

11,762,153$

9,567,177

1,003,566$

1,980,611

7,753,704$

7,458,191

2,318,132$

2,323,351

11,075,402$

11,762,153

GREEK ORTHODOX ARCHDIOCESE OF AMERICA
Statements of Cash Flows
For the years ended December 31, 2011 and 2010

2010

2011
CASH FLOWS FROM OPERATING ACTIVITIES
Changes in net assets
Adjustments to reconcile changes in net assets to net cash used inoperating activities:
Depreciation
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
Deferred expenses
Prepaid expenses
Accounts payable and accrued expenses
Deferred revenue
Grants payable
Other accrued retirement benefits$(2,194,976)$

686,751

195,844(43,087)
18,899234,315(494,267)(4,672)

24,426(39,354)
24,806(5,149)(21,166)
317,770(3,080)(80,000)
441,284(42,438)
49,535(25,344)
32,29415,009(29,399)(500,041)
2,629(257,500)(64,008)(1,363,783)(397,136)(5,866,647)
7,597,118(265,821)(4,798,824)
5,089,171(1,008,900)

1,464,650(718,553)

CASH FLOWS FROM FINANCING ACTIVITIES
Principal payments on notes payable(66,848)(39,667)

Net cash used in financing activities(66,848)(39,667)

Net increase (decrease) in cash and cash equivalents

34,019(1,155,356)

1,055,366

2,210,722

Net cash used in operating activities
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of investments
Proceeds from sales and maturities of investments
Purchases of fixed assets
Net cash provided by (used in) investing activities

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

1,089,385$

1,055,366$

120,974$

110,716

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, 2011 and 2010

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 locatedthroughout the United States.
The Archdiocese is exempt from Federal income taxes under Section 501(c)(3) of the Internal Revenue
Code and 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
FranciscoHellenic College, Inc.
The Cathedral School
Greek Orthodox Archdiocesan Cathedral of the Holy Trinity (“Cathedral”)
Saint Basil Academy
Greek 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.
FAITH: An Endowment for Orthodoxy & Hellenism

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 existenceor absence 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, 2011 and 2010, the Cathedral Fund
was $2,148,090 and $2,694,689, respectively, and is included as part of the Archdiocese’s investments inthe accompanying statements of financial position.

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GREEK ORTHODOX ARCHDIOCESE OF AMERICA
Notes to Financial Statements
December 31, 2011 and 2010

Temporarily Restricted – Net assets resulting from contributions and other inflows of assets whose use by
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 lessfrom the date of purchase to be cash and cash equivalents, except for those cash equivalents which areincluded 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
the securities are sold. Dividends and interest are recognized as earned. Contributed investments are valued
at their fair market value on the date received.
Investment securities, in general, are exposed to various risks, such as interest rate, credit and overallmarket volatility. 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 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.

-6-GREEK ORTHODOX ARCHDIOCESE OF AMERICA
Notes to Financial Statements
December 31, 2011 and 2010

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 investmentsthat 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 the near 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 pershare, 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.
Inputs are used in applying the various valuation techniques and broadly refer to the assumptions thatmarket participants use to make valuation decisions, including assumptions about risk. Inputs may include
price information, volatility statistics, specific and broad credit data, liquidity statistics, and other factors. A
financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that issignificant 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, notproprietary, and provided by independent sources that are actively involved in the relevant market. The
categorization of a 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.
In January 2010, the FASB issued guidance for improving disclosures about fair value measurements. The
guidance requires entities to disclose transfers of assets in and out of Levels 1 and 2 of the fair value
hierarchy, and the reasons for such transfers. These disclosures were effective for the Archdiocese in 2010.
In addition, the guidance requires a separate presentation of purchases and sales in the Level 3 asset
reconciliation which were effective for the Archdiocese in 2011. The adoption of this guidance did nothave a material effect on the Archdiocese’s financial statements.

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GREEK ORTHODOX ARCHDIOCESE OF AMERICA
Notes to Financial Statements
December 31, 2011 and 2010

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.
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 andwrite off any amounts that are no longer considered to be recoverable. Any payments subsequently
collected on such 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 thegift, 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 straightline basis over the estimated useful lives of the related assets, ranging from 3 to 50 years. Works of art are
not depreciated.
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
statements of 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, a corresponding liability is recorded for thevalue of these investments and any unrealized gain or loss on these investments is recognized as an increasein the investments and an increase 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.

-8-GREEK ORTHODOX ARCHDIOCESE OF AMERICA
Notes to Financial Statements
December 31, 2011 and 2010

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 locatedwithin the construct of their administration buildings. As of December 31, 2011 and 2010, a liability of
approximately $38,000 is included within accounts payable and accrued expenses in the accompanying
statements of financial position.
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 is limitedby 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 expendituressatisfy the donors’ restrictions and such amounts are appropriated for expenditure by the ArchdiocesanCouncil. 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 toacquire 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.

-9-GREEK ORTHODOX ARCHDIOCESE OF AMERICA
Notes to Financial Statements
December 31, 2011 and 2010

Other Revenue
The Archdiocese generates revenue from programs and the sales of religious books, publications and otherprogram 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 afunctional basis in the accompanying statements of activities.
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 2008, 2009, 2010
and 2011 are still open to audit for both federal and state purposes. As of December 31, 2011, 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,which from 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 theArchdiocese utilizes is likely.
Fair Value of Financial Instruments
The carrying value of cash, cash equivalents, receivables, prepaid expenses and accounts payable andaccrued expenses 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.
Reclassifications
Certain reclassifications were made to the 2010 financial statements to conform to the 2011 presentation.
Such reclassifications did not change total assets, liabilities, revenues, expenses or changes in net assets asreflected in the 2010 financial statements.
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.
- 10 -

GREEK ORTHODOX ARCHDIOCESE OF AMERICA
Notes to Financial Statements
December 31, 2011 and 2010

3.

INVESTMENTS, AT FAIR VALUE
As of December 31, 2011 and 2010, investments, at fair value, by fair value hierarchy, consisted of thefollowing:
2011
Cash and cash equivalents
Common stock
Preferred stock
Mutual funds
Corporate bonds
Municipal bonds
U.S. government and agency securities$ 4,188,717
2,609,123
1,025,464
137,224$ 7,960,528

Level 3

Total

67,215
1,054,435
276,209$ 1,397,859$ 4,188,717
2,609,123
67,215
1,025,464
1,041,007
1,570,763
327,592$ 10,829,881

Level 2

Level 1$

903,783
516,328
51,383$ 1,471,494$

2010
Cash and cash equivalents
Common stock
Preferred stock
Mutual funds
Corporate bonds
Municipal bonds
U.S. government and agency securities$ 3,462,015
2,954,307
1,023,410$ 7,439,732

Level 3

Total

75,0001,070,534
258,508$ 1,404,042$ 3,462,015
2,954,307
100,000
1,023,410
2,937,561
1,728,045
311,927$ 12,517,265

Level 2

Level 1$

25,0002,937,561
657,51153,419$ 3,673,491$

The following table summarizes the changes in Archdiocese’s Level 3 investments for the years ended
December 31, 2011 and 2010:
Balance as of January 1, 2010 (a)Sales
Net appreciation of investments$ 3,041,844(1,704,683)
66,881

Balance as of December 31, 2010
Sales
Net appreciation of investments$ 1,404,042(69,413)
63,230$ 1,397,859

Balance as of December 31, 2011(a) The Archdiocese’s policy is to recognize transfers between the levels as of the actual date of the event orchange in circumstances that caused the transfer.

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GREEK ORTHODOX ARCHDIOCESE OF AMERICA
Notes to Financial Statements
December 31, 2011 and 2010

Investment income consisted of the following for the years ended December 31, 2011 and 2010:

Interest and dividends
Net realized and unrealized appreciation in fair value of investments

$
$

4.

2011

2010

268,264 $
43,087
311,351 $

209,138
494,267
703,405

LAND, BUILDINGS AND EQUIPMENT, NET
Land, buildings and equipment, net, consisted of the following at December 31, 2011 and 2010:
2011
Land
Building and improvements
Furniture, fixtures and equipment
Website development costs
Fine arts$

471,223
6,068,944
2,246,516
464,263
8,910

2010
$

9,259,856(5,163,882)

Less: Accumulated depreciation$

4,095,974

471,223
5,803,123
2,246,516
464,263
8,910
8,994,035(4,968,038)$

4,025,997

Depreciation expense amounted to $195,844 and $234,315 for the years ended December 31, 2011 and2010, respectively.
5.

NOTES PAYABLE
On July 31, 2009, the Archdiocese converted their existing line of credit facility to an unsecured term loan
with Two River Community Bank of approximately $1,967,000. Principal and interest of $12,480 were
payable monthly commencing on August 31, 2009 with the remaining balance due at maturity on July 31,
2011. The interest rate of this loan is fixed at 5.75%. Effective July 31, 2011, the term loan was extended toJuly 31, 2012 bearing a fixed interest rate of 5.75%. As of December 31, 2011 and 2010, amounts
outstanding under this credit facility totaled $1,849,266 and $1,916,114, respectively. Effective July 31,
2012, the loan was extended further to July 31, 2015, bearing a fixed interest rate of 5.25%.
Future principal payments due as of December 31, 2011 are as follows:
Ye ar Ending De ce mbe r 31:
2012
2013
2014
2015

$

54,826
83,721
88,287
1,622,432$ 1,849,266- 12 -

GREEK ORTHODOX ARCHDIOCESE OF AMERICA
Notes to Financial Statements
December 31, 2011 and 2010

6.

INVESTMENTS AND CUSTODY FUNDS HELD FOR OTHERS
As of December 31, 2011 and 2010, investments held for others, by fair value hierarchy, consisted of thefollowing:

2011
Level 1
Cash and cash equivalents$ 1,048,654
Common stock
1,126,824
Municipal bonds
644,708
U.S. government and agency securities
1,027,180$ 3,847,366

Level 2
$

$

-

$

$

Level 3

Total

299,749
299,749$ 1,048,654
1,126,824
944,457
1,027,180$ 4,147,115

Level 3

Total

306,600
306,600$ 1,035,699
339,376
1,029,228
306,600
2,273,061$ 4,983,964

2010
Level 1
Cash and cash equivalents
Common stock
Mutual funds
Municipal bonds
U.S. government and agency securities$ 1,035,699
339,376
1,029,228
1,230,841$ 3,635,144

Level 2$

1,042,220$ 1,042,220$$

The following table summarizes the changes in Archdiocese’s Level 3 investment held for others for theyears ended December 31, 2011 and 2010:
Balance as of January 1, 2010 (a)Net depreciation of investments$

319,375(12,775)

Balance as of December 31, 2010
Sales
Net appreciation of investments
Balance as of December 31, 2011$

306,600(21,900)
15,049299,749$(a) The Archdiocese’s policy is to recognize transfers between the levels as of the actual date of the event orchange in circumstances that caused the transfer.

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GREEK ORTHODOX ARCHDIOCESE OF AMERICA
Notes to Financial Statements
December 31, 2011 and 2010

Additions, investment income (loss) and distributions of such accounts, which are excluded from theaccompanying statements of activities, are shown below:
Balance atJanuary 1,
2011
Archbishop Iakovos Library Trust
St. Basil Spyropoulos Fund
Orthodox Health Plan Dividend FundSpyridon Trust IM$ 1,127,649
580,775
2,203,133
1,072,407$ 4,983,964

Additions$$

Balance atJanuary 1,
2010
Archbishop Iakovos Library Trust
St. Basil Spyropoulos Fund
Orthodox Health Plan Dividend FundSpyridon Trust IM

7.

-

Net
Investment
Income (Loss)

Release ofFunds toThird Parties

Balance at
December 31,
2011

$

$

(25,000)(4,068)(609,690)(118,098)$ (756,856)$ 1,096,626
579,439
1,609,171
861,879$ 4,147,115

Net
Investment
Income (Loss)

Release ofFunds toThird Parties

Balance at
December 31,
2010$

Additions(6,023)
2,732
15,728(92,430)(79,993)$ 1,238,437
541,5222,419,400
1,064,037$-$(10,788)
42,9138,647
126,064$ (100,000)(3,660)(224,914)(117,694)$ 1,127,649
580,775
2,203,133
1,072,407$ 5,263,396

$

-

$

166,836$ (446,268)$ 4,983,964

EMPLOYEE BENEFIT PLANS
Pension Plan
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 andare invested 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 notpracticable to determine the extent to which the assets of the plan cover the actuarially computed value ofvested benefits for the Archdiocese, on a standalone basis. In addition, because the plan is considered amulti-employer plan, it is only subject to certain minimum reporting requirements. Pension expense
allocated to the Archdiocese for the years ended December 31, 2011 and 2010 amounted to $612,000 and$581,400, respectively. As of December 31, 2011 and 2010, amounts due to the pension plan totaled$1,792,107 and $1,450,844, respectively, and are included within accounts payable and accrued expenses in
the accompanying statements of financial position.
Other Retirement Benefits
The Archdiocese also provides supplemental retirement benefits to certain hierarchs outside of the plan
noted above. As of December 31, 2011 and 2010, the Archdiocese has recorded a liability of $1,638,579
and $1,197,295, respectively, for these benefits.

- 14 -

GREEK ORTHODOX ARCHDIOCESE OF AMERICA
Notes to Financial Statements
December 31, 2011 and 2010

8.

TEMPORARILY RESTRICTED NET ASSETS
Temporarily restricted net assets, at December 31, 2011 and 2010, consisted of the following:
2011$

Taylor Scholarship Fund
St. Nicholas Relief Fund
Katrina Hurricane Fund
Katina Malta Scholarship Fund
Miscellaneous Leadership 100 Grants
Hellenic College Scholarship Fund
Teacher Training Program
OCF Campus Ministry
Niarchos Archival Grant FundHalki Theological School 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 fundIonian Village Capital Fund
Trakatellis Fellowship Fund
Haiti Relief Fund
Various other funds

1,391,230
1,465,963
5,554
435,403
313,597
10,0706,527
129,928381
81,635
201,691
47,948
119,337
112,279
4,570
1,000
97,051
100,000
16,98925,903

2010$

72,275
194,865
117,307672,398$

5,623,901

1,586,142
2,608,233
5,554
420,551
108,394
314,035
10,07011,527
257,036381
81,635
201,691
39,187
119,337
105,548
4,570
1,000
98,343100,000
16,98925,90357,2755,000
200,000
272,300
807,490$

7,458,191

Subsequent to December 31, 2011, the Archdiocese released all remaining temporarily restricted net assets
from the St. Nicholas Relief Fund pertaining to costs incurred associated with the planned redevelopment of
St. Nicholas Greek Orthodox Church (“St. Nicholas”).

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GREEK ORTHODOX ARCHDIOCESE OF AMERICA
Notes to Financial Statements
December 31, 2011 and 2010

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, 2011 and 2010 as follows:2011
Miscellaneous Leadership 100 Grants
Taylor Scholarship Fund
Archbishop Iakovos Writing – Niarchos Grant
St. Nicholas Relief Fund
Katina Malta Scholarship Fund
Niarchos Archival Grant Fund
Gioles Scholarship Fund
Faith : An Endowment for Orthodoxy and Hellenism
Paleologos Scholarship Fund
Haiti Relief Fund
St John Chrysostom Fund
Trakatellis Fellowship
Ionian Village Capital Fund
Hellenic College
Ecumenical Patriarchate
Retired Clergy
Other

$

$

10.

378,394
221,615
1,162,553
50,515
127,108
5,010
30,000155,000
10,57812,01021,196600,000
500,000
59,500155,879
3,489,358

2010
$

$

404,514271,302
16,908222,324
24,995305
8,500
146,01345,000125,773
17,785284,836701
1,568,956

PERMANENTLY RESTRICTED NET ASSETS
Permanently restricted net assets are restricted to investment in perpetuity. At December 31, 2011 and2010, the Archdiocese’s permanently restricted net assets consisted of the following:

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

- 16 -

20112010$ 1,000,000
244,028
311,373
507,710
93,32138,361
112,289$ 2,307,082$ 1,000,000
243,166
330,272
506,917
92,36338,344112,289$ 2,323,351

GREEK ORTHODOX ARCHDIOCESE OF AMERICA
Notes to Financial Statements
December 31, 2011 and 2010

* Pursuant to the donor gift instrument, 90% of net income from the fund is to be distributed for individual
scholarships and the remaining 10% of net income shall become permanently restricted and added to the
corpus of the scholarship fund.
11.

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.

- 17 -

GREEK ORTHODOX ARCHDIOCESE OF AMERICA
Notes to Financial Statements
December 31, 2011 and 2010

The following represents a detail of the endowment net asset composition, excluding third-party perpetual
trusts in the amount of $311,373 and $330,272, as of December 31, 2011 and 2010, respectively.
2011
Composition of Endowment
Net Assets by Type of Fund
Donor-restricted endowment funds

Temporarily Permanently
Unrestricted Restricted Restricted

Total

$

-

$

634,024 $ 1,995,709 $ 2,629,733

Endowment net assets, beginning of year
Investment return:
Investment income
Net appreciation (realized and unrealized)
Appropriation of endowment assets for
expenditure
Contributions

$

-

$

578,982 $ 1,993,079 $ 2,572,061

Endowment net assets, end of year$

Changes in Endowment Net Assets-

36,90923,5192,630-

39,53923,519-(5,386)--(5,386)--$

634,024 $ 1,995,709 $ 2,629,733

2010
Composition of Endowment
Net Assets by Type of Fund

Unrestricted

Temporarily Permanently
Restricted Restricted

$

-

$

578,982 $ 1,993,079 $ 2,572,061

Endowment net assets, beginning of year
Investment return:
Investment income
Net appreciation (realized and unrealized)
Appropriation of endowment assets for
expenditure
Contributions

$

-

$

365,432 $ 1,992,532 $ 2,357,964

Endowment net assets, end of year$

Donor-restricted endowment funds

Total

Changes in Endowment Net Assets- 18 --

28,968
184,582547-

29,515
184,582

-

-

-

-

-

$

578,982 $ 1,993,079 $ 2,572,061

GREEK ORTHODOX ARCHDIOCESE OF AMERICA
Notes to Financial Statements
December 31, 2011 and 201012.

RELATED PARTY TRANSACTIONSThe Archdiocese provided $1,350,000 and $1,200,000 to support the operations of Hellenic College in 2011
and 2010, respectively, and are included as part of education expense in the accompanying statements ofactivities. As of December 31, 2011 and 2010, remaining amounts due to Hellenic College were $0 and$80,000, respectively, and are included as grants payable in the accompanying statements of financial
position.
The Archdiocese provided $1,000,000 and $800,000 to support the operations of the Ecumenical
Patriarchate in 2011 and 2010, respectively, and are included as part of Orthodoxy in the World expense in
the accompanying statements of activties.
The Archdiocese provided approximately $146,000 and $188,000 to support the operations of the Cathedral
in 2011 and 2010, respectively. In 2011 and 2010, the Archdioese provided additional support ofapproximately $480,000 and $86,000, respectively, to fund construction costs pertaining to the renovationof the Cathedral. Such amounts are included as part of other program services – affiliated organizations
expense in the accompanying statements of activities.
The Archdocese provided approximately $1,163,000 and $220,000 of support in 2011 and 2010,
respectively, on behalf of St. Nicholas pertaining to costs incurred associated with the planned
redevelopment of the church. Such amounts are included as part of other program services – affiliatedorganizations expense in the accompanying statements of activities.
The Archdiocese also pays the salaries and health insurance expenses of certain employees within eachmetropolis. In addition, the Archdiocese provides monthly grants to eligible metropolises to cover otheroperating expenses. Total Metropolis Ministries expenses for the years ended December 31, 2011 and 2010
were $5,271,780 and $5,054,906, respectively, as reflected on the accompanying statements of activities.
As of December 31, 2011 and 2010, amounts due from related parties totaled $34,694 and $59,500,
respectively, net of allowance for doubtful accounts of $1,301,791 and $1,268,915, respectively. The
activity for the allowance for impaired loans is as follows as of December 31, 2011:

Total
Allowance for doubtful accounts,
beginning of year
Change in allowance
Recoveries of amounts previously reserved
Write-offs$

Allowance for doubtful accounts, end of year$

1,268,915
32,876
1,301,791

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

- 19 -

GREEK ORTHODOX ARCHDIOCESE OF AMERICA
Notes to Financial Statements
December 31, 2011 and 201013.

COMMITMENTS AND CONTINGENCIESThe Archdiocese is involved in various lawsuits, which it is prepared to vigorously defend. The ultimate
outcome of these matters cannot be determined at this time. Accordingly, no provision for any liability that
may result from these matters has been made in the accompanying financial statements. Management
believes that the liability, if any, resulting from these matters would not have a material effect on theaccompanying financial statements.
The Archdiocese has entered into various noncancellable operating leases primarily for office equipment.
Future minimum lease payments due under these arrangements are as follows:Year Ending December 31:
2012
2013

$

51,44034,224$85,664

Rent expense amounted to approximately $130,000 and $191,000 for the years ended December 31, 2011
and 2010, respectively.
14.

SUBSEQUENT EVENTSThe Archdiocese evaluated its December 31, 2011 financial statements for subsequent events through July
3, 2013, 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 the accompanying financial
statements, except as disclosed in Notes 5 and 8.

- 20 -