Financial Report 2013 Jodi Blake Director of Finance
The following are the audited financial statements of the Masonic Home of Missouri and the related disclosures. The financial statements are audited annually by Williams-Keepers, LLC located in Columbia, MO. They are presented each year at Grand Lodge Annual Communication and subsequently published in the Grand Lodge of Missouri Annual Proceedings. They are also made available on the Masonic Home of Missouri website at www. mohome.org and upon request by contacting the Masonic Home of Missouri at 6033 Masonic Drive, Suite A, Columbia, MO 65202 or 800-434-9804. In addition, the IRS Form 990, which is prepared based on these statements, is also available on the Home’s website, on the GuideStar website at www.guidestar.org, org or by contacting the Masonic Home. For the year ended June 30, 2013, the Masonic Home has received a clean audit report, meaning that it is the opinion of the auditors that the financial statements are presented fairly, in all material aspects, and in conformity with Generally Accepted Accounting Principles (GAAP). The financial position of the Home continues to be a positive one. Due to the increase in value of our investments, our financial position has improved since 2012 to just more than $122 million in net assets. Investments comprise approximately 90% of these assets and over half of those investments are restricted, which means that access is either not allowed or is limited. Twenty-nine percent of the Home’s investment assets are permanently restricted (i.e. endowments), which means that the Home cannot use any portion of those funds and relies only on income generated to fund operations. An additional 17% of the Home’s investments are temporarily restricted, per board policy, and would require a catastrophic need to allow access to the funds. Another 6% of the total investments is temporarily restricted based on donor requests. During Fiscal Year 2013, investment income made up almost 68% of operating revenues, while donations totaled almost 31%. As I wrote last year, this level of investment income cannot be expected to continue. Due to low interest rates, investment income has already begun to drop and will continue to do so over the next couple of years as many of our bonds will mature and be replaced with lower yielding securities. The Home is working diligently to find solutions to replace this lost income. The Home’s balance sheet is a healthy one due to the large investment portfolio, but the income earned remains a critical component of the revenue stream to help fund the Home’s charitable work. Maintaining the ability to provide assistance to the membership does not end with keeping large investment portfolios that will draw income. It continues to require the support of donors who share our passion to fund the services provided, staff to keep operating expenses to a minimum, a board committed to helping their brothers and sisters in need, program staff dedicated to carrying out the mission of the Home, and the entire Masonic family enthusiastically partnering with the Home to reach as far into each community as possible. The Home continues to be blessed to have all of these. Due in large part to increased contributions from estates and trusts, total donor support increased by over 25% during 2013. We are pleased, and very grateful, to report that individual giving accounted for over 10% of the increase from 2012 to 2013. An increase in donor support, offset by a decrease in investment income, contributed to an increase in overall operating revenues of 5%. Overall operating expenses decreased by almost 13%. A reduction in operational costs accounted for over 57% of the decrease, while a decrease in the total amount of direct assistance provided accounted for the remainder. In addition, 72% of overall expenses were program-related expenses. The staff and Board of Directors of the Masonic Home recognize the fiscal responsibility that we have to our clients, our donors and the entire Masonic family. We strive to protect and preserve the assets of the Home, while looking for ways to secure additional revenue and reduce operational costs. During the 2013 Fiscal Year, we did just that. With the help of our donors, overall revenue was up, in spite of a decreasing interest rate environment.
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Annual Report
Masonic Home of Missouri