Financial Statements Together with
Report of Independent Certified Public Accountants
GREEK ORTHODOX ARCHDIOCESE OF AMERICA
December 31, 2016 and 2015

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, 2016 and 20153

Statements of Activities for the years ended December 31, 2016 and 2015

4Statements of Cash Flows for the years ended December 31, 2016 and 2015

5

Notes to Financial Statements

6 - 21Grant Thornton LLP
757 Third Avenue, 9th Floor
New York, NY 10017
T 212.599.0100
F 212.370.4520
GrantThornton.com
linkd.in/GrantThorntonUS
twitter.com/GrantThorntonUS

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, 2016 and 2015,
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, 2016 and 2015, 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 YorkMay 18, 2018-2-

GREEK ORTHODOX ARCHDIOCESE OF AMERICA
Statements of Financial Position
As of December 31, 2016 and 2015

2016

2015

ASSETSCash and cash equivalents
Accounts receivable
National ministry commitment 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

1,118,243
114,147
332,257
9,460,143
639,938
118,744488,489
16,7805,191,312
339,6363,430,768$

1,102,028
110,047
9,486,109
538,581
129,967
333,272
23,0604,462,109
344,285
5,419,244$ 21,250,457$ 21,948,702$$

LIABILITIES AND NET ASSETSLIABILITIES
Accounts payable and accrued expenses
Deferred revenue
National ministry commitment payable
Grants payable
Amounts due to Pension Plan
Other postretirement benefits obligations
Custody funds held and amounts due to related parties
Total liabilities

3,142,796
1,120
576,774
1,250,000
618,824
1,239,895
7,665,254
14,494,663

3,296,569
3,106
687,500
1,442,487
1,266,714
8,337,127
15,033,503

Contingencies
NET ASSETS (DEFICIT)
Unrestricted
Temporarily restricted
Permanently restricted
Total net assets
Total liabilities and net assets

The accompanying notes are an integral part of these statements.
-3-(4,011,157)
8,411,558
2,355,393
6,755,794(1,630,939)
6,191,738
2,354,400
6,915,199$ 21,250,457$ 21,948,702

GREEK ORTHODOX ARCHDIOCESE OF AMERICA
Statements of Activities
For the years ended December 31, 2016 and 2015

2016
Unrestricted
REVENUES AND OTHER SUPPORTNational ministry commitment
Contributions and grants
Leadership 100 grants
FAITH grants
Ministries, publications and registry
Department of Religious Education - sales
Clergy Laity conference
Investment income
Insurance recoveries and other revenue
Change in fair value of beneficial interest in trust held by others
Net assets released from restrictions
Total revenues and other support$

20,885,966
991,5143,412,438
386,362
754,448
137,962
706,3093,024,328
30,299,327

2015

Temporarily
Restricted$

2,823,405
1,877,330
387,500
155,913(3,024,328)
2,219,820

Permanently
Restricted$

5,642(4,649)
993

Total
$

20,885,966
3,814,919
1,877,330
387,500
3,412,438
386,362
754,448
299,517706,309(4,649)32,520,140

Temporarily
Restricted

Unrestricted$

20,449,640
793,736
3,255,895
425,157
179,351
2,219,050
27,322,829$

839,082
1,360,243
183,250
158,588(2,219,050)
322,113

Permanently
Restricted$

4,267(23,587)(19,320)

Total$

20,449,640
1,632,818
1,360,243
183,250
3,255,895
425,157
342,206(23,587)
27,625,622

Expenses:
Program services:
Education
Metropolis Ministries
Orthodoxy in the World
Communications
Community services
Retirement and clergy benefit expenses
Distributions for disaster relief
Clergy Laity conference
Total program services

6,915,796
7,697,684
3,281,935
2,716,722
2,394,580
862,739
845,949
24,715,405--

6,915,796
7,697,684
3,281,935
2,716,722
2,394,580
862,739
845,949
24,715,405

6,809,653
6,241,471
2,043,937
2,371,357
2,402,651
888,488
79,126
20,836,683--

6,809,653
6,241,471
2,043,937
2,371,357
2,402,651
888,488
79,126
20,836,683

Fundraising
General and administrative expenses

87,522
7,876,618--

87,522
7,876,618

93,2596,841,420--

93,2596,841,420

Total expenses

32,679,545--

32,679,545

27,771,362--

27,771,362

Changes in net assets(2,380,218)

2,219,820

993(159,405)(448,533)

322,113(19,320)(145,740)

Net assets, beginning of year
Net assets, end of year

(1,630,939)$(4,011,157)

6,191,738$

8,411,558

2,354,400$

The accompanying notes are an integral part of these statements.
-4-2,355,393

6,915,199$

6,755,794(1,182,406)$(1,630,939)

5,869,625$

6,191,738

2,373,720$

2,354,400

7,060,939$

6,915,199

GREEK ORTHODOX ARCHDIOCESE OF AMERICA
Statements of Cash Flows
For the year ended December 31, 2016 and 2015

2016
CASH FLOWS FROM OPERATING ACTIVITIES
Change in net assets
Adjustments to reconcile change in net assets to net cash
provided by operating 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
Prepaid expenses
National ministry commitment
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 operating activities$(159,405)

2015$(145,740)

176,805(190,167)
4,649

146,247(205,591)
23,587(4,100)(101,357)
11,223(155,217)
6,280
244,517(153,773)(1,986)
562,500
1,316,603(850,482)
706,090

12,8382,936(129,967)(147,525)(15,568)
876,6311,515
437,500
497,730(1,185,431)
169,162

CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of investments
Proceeds from sales and maturities of investments
Purchases of fixed assets
Net cash used in investing activities(4,979,747)
5,195,880(906,008)(689,875)(4,442,041)
4,448,803(66,264)(59,502)

Net increase in cash and cash equivalents

16,215

109,660

1,102,028
1,118,243

992,368
1,102,028

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

The accompanying notes are an integral part of these statements.
-5-$

GREEK ORTHODOX ARCHDIOCESE OF AMERICA
Notes to Financial Statements
December 31, 2016 and 2015

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
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 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 (“US GAAP”) 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, 2016 and 2015, the Cathedral Fund
had a balance of $1,214,772 and $1,213,578, respectively, and is included as part of the Archdiocese’s
investments in the accompanying statements of financial position.

-6-

GREEK ORTHODOX ARCHDIOCESE OF AMERICA
Notes to Financial Statements
December 31, 2016 and 2015

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 canbe 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 arevalued 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.

-7-

GREEK ORTHODOX ARCHDIOCESE OF AMERICA
Notes to Financial Statements
December 31, 2016 and 2015

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
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 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.
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, 2016 and 2015, 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-8-GREEK ORTHODOX ARCHDIOCESE OF AMERICA
Notes to Financial Statements
December 31, 2016 and 2015

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, 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 and amounts due to related parties 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-9-GREEK ORTHODOX ARCHDIOCESE OF AMERICA
Notes to Financial Statements
December 31, 2016 and 2015

retirement obligations primarily associated with the eventual remediation and abatement of asbestos locatedwithin the construct of their administration buildings. As of December 31, 2015, a liability of $45,523 isincluded within accounts payable and accrued expenses in the accompanying 2015 statements of financial
position. During 2016, the remediation costs amounted to $45,523 and were recorded as a reduction to the
CARO.
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. Investment return on temporarily restricted contributions arerecorded in the unrestricted net asset class unless investment return is explicitly restricted by the donor to be
used for the same purpose as the contribution. Contributions that are permanently restricted by donors foruse 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 theArchdiocesan 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 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 an annual financial assessment to help support the mission of
the Church. Beginning in 2016, the unpaid national ministry commitment at the end of the year is recorded
as a receivable net of an allowance for doubtful accounts. In prior years, the assessments were recognized
as revenue in the period they were received.
The national ministry commitment is determined at the biennial Clergy Laity Congress and for 2017
amounted to approximately $21,541,000.
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- 10 -

GREEK ORTHODOX ARCHDIOCESE OF AMERICA
Notes to Financial Statements
December 31, 2016 and 2015

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. These costs can generally be identified withthe program service to which they relate and are charged accordingly. Other expenses by function, havebeen allocated amongst the programs and supporting services benefited on the basis of the number of
employees per department.
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. As of December 31, 2016 and 2015,
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 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 US GAAP requires management to makeestimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure ofcontingent 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 2015 financial statements in order to conform to the 2016
presentation.

- 11 -

GREEK ORTHODOX ARCHDIOCESE OF AMERICA
Notes to Financial Statements
December 31, 2016 and 2015

Liquidity
The Archdiocese has incurred operating deficits in 2016 and 2015 and, at December 31, 2016, had adeficiency in unrestricted net assets of $4,011,157. These deficits were primarily attributable to shortfalls
in unrestricted contributions and expenses exceeding expectations. In order to fund its cash flow needs,
the Archdiocese utilized funds from its donor restricted custodial accounts. Amounts utilized as ofDecember 31, 2016 approximated $4,234,000 as evidenced by the liability for custody funds held forothers and related parties of $7,665,254 exceeding the investments held for others of $3,430,768 in theaccompanying statement of financial position at that date. In the summer of 2017, the Archdiocese
executed cost cutting measures and a plan to repay funds that were utilized from the donor restrictedcustodial funds in 2017 and prior years. The Archdiocese believes that through these measures and seeking
secured, commercial bank financing, it will be able to repay funds utilized from the donor restrictedcustodial funds and meet its working capital needs.
3.

INVESTMENTS, AT FAIR VALUE
As of December 31, 2016 and 2015, investments, at fair value, by fair value hierarchy, consisted of thefollowing:

2016
Level 1
Cash equivalents
Common stock
Mutual funds
Corporate bonds
Municipal bonds
Auction rate securities
Fixed income annuity$$

1,097,988
3,880,809
1,675,750
6,654,547

Level 2$

978,091
1,587,832
147,187$ 2,713,110

Level 3$$92,48692,486

Total$$

1,097,988
3,880,809
1,675,750
978,091
1,587,832
147,187
92,4869,460,143

2015
Level 1
Cash equivalents
Common stock
Mutual funds
Corporate bonds
Municipal bonds
Auction rate securities
Fixed income annuity

Level 2

Level 3

Total$

1,519,910
3,929,141
1,539,485-$

23,5392,216,965
167,125-$

89,944$

1,519,910
3,929,141
1,539,485
23,5392,216,965
167,125
89,944$

6,988,536$ 2,407,629$

89,944$

9,486,109- 12 -

GREEK ORTHODOX ARCHDIOCESE OF AMERICA
Notes to Financial Statements
December 31, 2016 and 2015

The following table summarizes the changes in Archdiocese’s Level 3 investments for the years ended
December 31, 2016 and 2015:

Balance as of January 1, 2015 (a)SalesTransfer out (b)Net appreciation of investments
Balance as of December 31, 2015
Net appreciation of investments
Balance as of December 31, 2016$$

374,897(121,500)(167,125)
3,672
89,944
2,542
92,486(a)

The Archdiocese’s policy is to recognize transfers between the levels as of the actual date of the event or change incircumstances 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 thebasis for price.

Investment income consisted of the following for the years ended December 31, 2016 and 2015:
2016
Interest and dividends
Net appreciation in fair value of investments

$
$

4.

109,350
190,167
299,5172015$$

136,615
205,591
342,206

LAND, BUILDINGS AND EQUIPMENT, NET
Land, buildings and equipment, net, consisted of the following at December 31, 2016 and 2015:

2016
Land
Building and improvements
Furniture, fixtures and equipment
Website development costs
Fine arts
Construction-in-progress$

Less: Accumulated depreciation

471,223
7,533,730
2,295,319
464,263
10,185352,010
11,126,730(5,935,418)$ 5,191,312

2015$

471,223
6,996,007
2,280,319
464,263
8,910
10,220,722(5,758,613)$ 4,462,109

Depreciation expense amounted to $176,805 and $146,247 for the years ended December 31, 2016 and2015, respectively.
- 13 -

GREEK ORTHODOX ARCHDIOCESE OF AMERICA
Notes to Financial Statements
December 31, 2016 and 2015

5.

INVESTMENTS AND CUSTODY FUNDS HELD FOR OTHERS
As of December 31, 2016 and 2015, investments held for others, by fair value hierarchy, consisted of thefollowing:
2016
Level 1
Cash equivalents
Certificates of deposit
Common stock
Mutual funds
Corporate bonds
Municipal bonds
Auction rate securities

Level 2

Level 3

106,828
1,015,867
620,842-$

300,179
71,464
141,126
294,375$-$ 1,743,537$

807,144

$

-

$

Total
$

106,828
300,179
1,015,867
620,842
71,464
141,126
294,375
2,550,681
880,087

Cash held for investment$ 3,430,768

2015
Level 1
Cash equivalents
Common stock
Mutual funds
Corporate bonds
Municipal bonds
U.S. government and agency securities
Auction rate securities

Level 2

Level 3

Total

$ 2,747,069
573,630
646,334-$

11,084
201,368
518,364
382,000$-$ 2,747,069
573,630
646,334
11,084
201,368
518,364
382,000$ 3,967,033$ 1,112,816$-

5,079,849
339,395

Cash held for investment$ 5,419,244- 14 -

GREEK ORTHODOX ARCHDIOCESE OF AMERICA
Notes to Financial Statements
December 31, 2016 and 2015

The following table summarizes the changes in Archdiocese’s Level 3 investment held for others for theyear ended December 31, 2015:$

Balance as of January 1, 2015 (a)SalesTransfer out (b)Net appreciation of investments
Balance as of December 31, 2015$

453,901(71,989)(382,000)
88
-

(a)

The Archdiocese’s policy is to recognize transfers between the levels as of the actual date of the event or change incircumstances 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 thebasis 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,
2016
Archbishop Iakovos Library Trust
St. Basil Spyropoulos Fund
Orthodox Health Plan Dividend FundSpyridon Trust IM
St. Nicholas Church Rebuilding Fund*$

965,653
815,854
847,115
666,710
5,041,795$ 8,337,127

Additions$

Release ofFunds toThird Parties

Balance at
December 31,
2016

25,00010,820,072$

37,846(5,261)
4,660
32,055
5,395$(117,500)(11,474,140)$ 1,003,499
810,593851,775
606,265
4,393,122$ 10,845,072$

74,695$ (11,591,640)$ 7,665,254

Release ofFunds toThird Parties

Balance at
December 31,
2015

Balance atJanuary 1,
2015
Archbishop Iakovos Library Trust
St. Basil Spyropoulos Fund
Orthodox Health Plan Dividend FundSpyridon Trust IM
St. Nicholas Church Rebuilding Fund*Net
Investment
Income (Loss)

Additions

Net
Investment
Income (Loss)$ 1,015,601
786,987
839,371795,214
5,782,744$

4,851,194$

52
28,867
7,744(11,004)(15,911)$(50,000)(117,500)(5,576,232)$

965,653
815,854
847,115
666,710
5,041,795$ 9,219,917$

4,851,194

$

9,748

$

(5,743,732)$ 8,337,127

As of December 31, 2016 and 2015, the Archdiocese had custody funds held and amounts due to relatedparties of $7,665,254 and $8,337,127, respectively, of which $3,430,768 and $5,419,244, respectively, areincluded within investments held for others on the accompanying statements of financial position.
*

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- 15 -

GREEK ORTHODOX ARCHDIOCESE OF AMERICA
Notes to Financial Statements
December 31, 2016 and 2015

from this campaign, the Archdiocese is accounting for this arrangement as an agency transaction. As such, contributions
received resulting from the capital campaign and subsequent disbursements made by the Archdiocese from these funds, are notreflected in the accompanying 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 andamounts due to related parties on the accompanying statements of financial position. Any unrealized gain or loss on theseinvestments 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. As of December 31, 2016 and 2015, the Archdiocese had custody funds
held and amounts due to or payable on behalf of St. Nicholas of approximately $4.4 million and $5.0 million, respectively, of
which approximately $159,000 and $2.1 million, respectively, are included within investments held for others on theaccompanying statements of financial position. Consequently, the Archdiocese utilized approximately $4.2 million and $2.9
million as of December 31, 2016 and 2015, respectively, from the St. Nicholas funds. At December 31, 2015, other liquid assetsof the Archdiocese were available to restore a portion of the amounts utilized from the St. Nicholas funds.

6.

EMPLOYEE BENEFIT PLANS
Pension Plans
The Archdiocese participates in a defined benefit pension plan (“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. Pension plan assets are held by third party investment
managers and are invested in various marketable debt, equity and money market accounts. Minimum
funding requirements are determined by an independent actuary. Participants may elect to makecontributions in an amount equal to 3.5% to 5% of earnings in accordance with the rules established by theArchdiocese Benefits Committee.
The Pension 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 Pension Plan, it
is not practicable to determine 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 Pension Plan isconsidered 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, 2016 and 2015 amounted to$748,800 and $720,000, respectively. As of December 31, 2016 and 2015, amounts due to the Pension Plan
totaled $618,824 and $1,442,487, respectively, and are included within amounts due to Pension Plan in theaccompanying statements of financial position.
The Archdiocese also sponsors a noncontributory 403(b) defined contribution plan for all employees. For
the years ended December 31, 2016 and 2015, 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, 2016 and 2015, the Archdiocese has recorded a liability of $1,239,895
and $1,266,714, respectively, for these benefits, which 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, 2016 and 2015

7.

TEMPORARILY RESTRICTED NET ASSETS
Temporarily restricted net assets, at December 31, 2016 and 2015, consisted of the following:
2016$

Taylor Scholarship Fund
Katina Malta Scholarship Fund
Gioles Scholarship FundJames Tembelis Scholarship
St. John Chrysostom Fund
Palelogos Scholarship fundTrakatellis Fellowship Fund
Irene Ladas Scholarship for Seminaries
Clergy Initiative Project
Other scholarships and educational programs
Disaster and emergency relief and assistance
Orthodoxy in the World
Community services
Various other programs$

8.

1,462,330
722,614
156,450
420,304
65,082258,989
170,479
84,5001,008,254
863,850
649,585
424,362
1,730,193
394,566
8,411,558

2015
$

$

1,596,676
562,637
128,446
356,960
78,97891,825
175,884
99,250871,089
647,313514,593783,051
285,036
6,191,738

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, 2016 and 2015 as follows:
2016
Taylor Scholarship Fund
Katina Malta Scholarship Fund
Gioles Scholarship Fund
St John Chrysostom Fund
Paleologos Scholarship Fund
Trakatellis Fellowship Fund
Irene Ladas Estate Scholarship For Seminaries
Other scholarships and educational programs
Disaster and emergency relief and assistance
Orthodoxy in the World
Community services
Clergy Initiative ProjectGreat Holy Council
Ionian Village renovations
Various other programs$

138,040
49,00015,00023,00063,5007,000
14,750662,500
791,731242,666
43,835
577,415352,01043,881$ 3,024,328- 17 -

2015$

205,664
34,00013,01012,54944,0008,000
37,250348,035
89,250761,355
398,235
267,702$ 2,219,050

GREEK ORTHODOX ARCHDIOCESE OF AMERICA
Notes to Financial Statements
December 31, 2016 and 2015

9.

PERMANENTLY RESTRICTED NET ASSETS
Permanently restricted net assets are restricted to investment in perpetuity. At December 31, 2016 and2015, the Archdiocese’s permanently restricted net assets consisted of the following:

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

2016

2015

$ 1,000,000
514,387339,636
251,980
98,881
38,220112,289$ 1,000,000
513,543344,285
250,355
96,48037,448112,289$ 2,355,393$ 2,354,400* 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.

10.

ENDOWMENTThe Archdiocese’s donor-restricted (gifted) endowment consists of six 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.

- 18 -

GREEK ORTHODOX ARCHDIOCESE OF AMERICA
Notes to Financial Statements
December 31, 2016 and 2015

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.
The following represents a detail of the endowment net asset composition, excluding third-party perpetual
trusts in the amount of $339,636 and $344,285, as of December 31, 2016 and 2015, respectively.

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

Unrestricted2016
Temporarily Permanently
Restricted
Restricted$-$ 2,210,889 $ 2,015,757 $ 4,226,646$-$ 2,030,840 $ 2,010,115 $ 4,040,955

Total

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

- 19 --

61,701
133,348(15,000)
-

5,150
492
-

66,851
133,840(15,000)-$ 2,210,889 $ 2,015,757 $ 4,226,646

GREEK ORTHODOX ARCHDIOCESE OF AMERICA
Notes to Financial Statements
December 31, 2016 and 2015

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

Unrestricted2015
Temporarily Permanently
Restricted
Restricted$-$ 2,030,840 $ 2,010,115 $ 4,040,955$-$ 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

11.

$

-

66,69687,597(13,939)-

6,283(2,016)-

72,97985,581(13,939)-$ 2,030,840 $ 2,010,115 $ 4,040,955

RELATED PARTY TRANSACTIONSThe Archdiocese provided $1,500,000 to support the operations of Hellenic College in both 2016 and 2015
and such amounts are included as part of education expense in the accompanying statements of activities.
As of December 31, 2016 and 2015, amounts due to Hellenic College totaled $500,000 and $187,500,
respectively, and are included within grants payable in the accompanying statements of financial position.
The Archdiocese provided $1,000,000 to support the operations of the Ecumenical Patriarchate in both2016 and 2015 and such amounts are included as part of Orthodoxy in the World expense in theaccompanying statements of activities. As of December 31, 2016 and 2015, amounts due to Ecumenical
Patriarchate totaled $750,000 and $500,000, respectively, and are included within grants payable in theaccompanying statements of financial position.
During 2016, the Archdiocese received $1,877,330 and $387,500 of grants from Leadership 100 and
FAITH, respectively. During 2015, the Archdiocese received $1,360,243 and $183,250 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 therespective affiliates.
As of December 31, 2016 and 2015, amounts due from related parties totaled $118,744 and $129,967,
respectively, net of allowance for doubtful accounts of $1,437,395 and $1,410,276, respectively.

- 20 -

GREEK ORTHODOX ARCHDIOCESE OF AMERICA
Notes to Financial Statements
December 31, 2016 and 2015

The activity for the allowance for doubtful accounts is as follows as of December 31, 2016 and 2015:2016
Allowance for doubtful accounts, beginning of year
Change in allowance
Allowance for doubtful accounts, end of year$$

1,410,276
27,1191,437,395

2015
$
$

1,395,941
14,3351,410,276

Additionally, certain contributions received by the Archdiocese are from members of management and theArchdiocesan Council.
12.

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.

13.

SUBSEQUENT EVENTSThe Archdiocese evaluated its December 31, 2016 financial statements for subsequent events throughMay 18, 2018, the date the financial statements were available to be issued. The Archdiocese is not awareof any material subsequent events which would require recognition or disclosure in the accompanying
financial statements.

- 21 -