FRA NCISCA N

RE NE WA LG E NT E R.I NC.

FINA NCI A LS T A T E ME NT S

A UGUS T3 1 , 2 0 0 9a n d 2 0 0 8
 FRANCISCAN
RENEWAL CENTER, INC.
FINANCIAL
STATEMENTS
AUGUST31,2009and 2008
TABLEOF CONTENTS

Page

Boa r d of Directors and Manag e me n t Ce rt if ic a t io n . . . . .1

Sta tementsof Financial P os it io n .....2

Sta tementsof A ctivities ...3

Sta tementsofCashFlows .....4

No tes to Financial S tatement s . 5 - 12

 B OA RDOF DIRE CT O RS
A ND MA NA G E ME NT
CE RT I F I CA T I O N

The FranciscanRenewal Center, Inc. is not under any regulatoryrequirementsto

prepareauditedfinancialstatements;however,the Board of Directorsand membersof
the managementteam desireto presentdetailedfinancialinformation for informational
purposes.

The accompanying statementsof financialpositionof the FranciscanRenewalCenter,

Inc. as of August31, 2009 and 2008,and the relatedstatementsof activitiesand cash
flows for the years then ended, have been preparedin accordancewith Statementson
Standardsfor Accountingand Review Services issued by the American Instituteof
CertifiedPublicAccountants.

All informationcontained in this report is the representationof management. The

Finance Committee of the Board of Directors has reviewed the accompanying
statementsto ensurethey are free of materialerrorsand omissions.

We hereby certifythis informationas accurategiven our fiduciaryresponsibilityto the

FranciscanFriarsof California,St. BarbaraProvince,the FranciscanRenewalCenter,
Inc.and the communityat large.

Respectfullysubmittedthe 22nd day of September2009.

,( ,* "W,r''q4r;4.*
iJ
G . To m S immons KevinGralen
BoardChair Treasurer

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Fr. JUsephSchwab,O.F.M. CharlesBrown
ExecutiveDirector GeneralManager
 FRANCISCAN
RENEWALCENTER,INC.

STATEMENTS
OF FINANCIALPOSITION

August31,2009and2008

2008
ASSETS
Current Assets
Cash 439,619 324,035
Short-termCertificates
of Deposit 250,000 250,000
InterestReceivable- EndowmentDistribution 88,394 92,764
Accountsreceivable.net 42,233 96,908
Inventories 6,571 3,950
Prepaidexpenses 44.748 40.201

TOTAL CURRENTASSETS 871,565 807, 858

Long-term Assets
EndowmentInvestments 4,237,O90 4,768,492
Investmentsheldfor the Province 400,000 400,000
Propertyand equipment,net 1,865,181 1,815 , 327

TOTAL LONG.TERMASSEIS 6,502,271 6,983 , 819

TOTAL ASSEIS $ 7,373,836 $ 7,791 , 677

LIABILITIESAND ASSEIS
'VET
Current Liabilities
Accountspayable 34,312 46,143
Accruedliabilities 43,870 30,338
Deferredincome 135,447 115 , 240
Otherliabilities 10,089 10,877

TOTAL CURRENTU ABILITIES 223,718 202,598

Long-Term Liabilities
Commitmentto ProvincialTrust 400,000 400,000

TOTAL LIABILITIES 623.718 602, 598

Net assets
Unrestricted
General 455,473 321,448
Boarddesignated 672,644 710,584
Property 1,865,181 1.815 . 327

TOTAL UNRESTRICTED 2,993,298 2,847,359

Temporarily restricted 192,374 283,812

Perm an ently restri cted

Donorrestricted 3.564.446 4,057, 908

TOTAL 6,750,118 7,189,079

'VETASSETS
TOTALLIABILITIES
A'VDA'ETASSEIS 7,373,836 7.791, 677

notesare an integralpart of thesefinancialstatements.

The accompanying

2
 FRANCISCANRENEWALCENTER,INC.

STATEMENTSOF ACTIVITIES

Forthe FiscalYearsEndedAugust31,2009and2008

Temporarily Permanently
Unrestricted Restncted Restricted
2004 2009 2008 2009
SUPPORT AND REVENUES
Liturgyand pastoralministries $ 936,822 $ 913,994 $- $ 936,822 $ 913,994
qn^na^r ad hr ^^r .m c 30'1,988 354,317 301,988 354,317
Hostedevents 64'1,064 452,O23 641,064 852,423
Counseling 51,830 55,310 51,830 55,310
Gift shop income 11,064 15,974 11,064 15,974
Distributionfrom Endowment 208,992 203,640 208,992 203,640
Calledto Loveallocations 48,000 45,000 48,000 45.000
Appealfunds used to supportoperations 184,295 24.160 144,295 24.160
Other revenues 60.118 55,774 60,'118 55 774

TOTAL SUPPORT AND REVENUES 2.444.173 2,520.192 2.444,173 2.520,'t92

OPERAI"VG EXPE'VSES
Liturgicaland pastoralministries 267.212 230,883 267.212 230,883
Sponsoredprogram 226.536 234,O40 226.536 234,040
Hosted events 80,025 54,020 80,025 54,020
Counseling 38,567 3AJ42 38,142
Socialjustice 41.578 39,388 41 578 39,388
Food seryice 313,641 344,791 3 13 , 6 4 1 384,791
Facilities 357,923 387,111 357,923 347.111
Generaladministration 730.874 765,772 730,474 765,772
Friarscompensatron and benefits I 63.296 157.456 I 63.296 157.456
Other operationalcosts 224.248 225,718 224,24A 225.714

TOTAL O PERAT' NG EXPE'VSES 2.443.900 2.517321 2.443,900 2,517,321

rNcoMEt(Loss) FRoM oRDtN ARY OPERATTONS 273 2_471 273 2,471

NON-OPE RATING REVENUE S

Releaseof EndowedFundsto Provinceor Commitment _ (500,000) (500000)
Realized(losses)gainson securities tr',,unrt a',,uot ( 432 , 9 0 3 ) 181,637 (514,5e6) 213,444
Unrealized gains(losses)on securities 22,918 ( 20,481) 121,443 (154,948) 144361 (175,429)
Distribution
from Endowmentsto Operations ( 33,178) (30,346) (175,814) (173,294) (208992) (203,640)
l\,4anagementFees 16272) (7,523) (33 234) (42,s62) (39 506) (50.485)
Donationsfor specificusage 60,285 4,000 194,801 265,272 27 046 32 980 282,132 302,252
Year-endappeal 252,884 205.201 252,884 205,20'l
FranciscanFestival 13,089 14,469 '13,089 14,469
Golf tournament 15,485 41,2A5 15,485 41,285
Denim and Dreamsauction 44.196 48.161 44,196 44,161
Other non-operatingrevenues '109.763 2A_573 '109,763 24,il3
Net assets releasedfrom restrictions 286.239 144,520 (286.239) (148.520)

TOTAL N ON.OPERATING RE W NUES 683,716 463.666 (91.438) 116752 (493.462) (656,587) 98,816 (76,169)

NON.OPERATINGEXPENSES
Year end appeal 11,886 9.472 'l1,886 9.472
FranciscanFestival 8,069 13,036 8,069 13,036
Golf tournament 7,172 14,582 7,172 14,582
Denimand Dreamsauction 12,241 '10,303 12,241 10,303
Othernon-operatingexpenses 351,610 231,643 351,610 231,643
Depreciationexpense 147,072 154,456 147,072 154,456

TOTAL N ON.OPERAI''VG EXPE VSES 538.050 433.492 538,050 433,492

CHA'VGES'A''VETASSEIS 145.939 33.045 (91.438) 116.752 (493,462) (656,587) (438,961) (506.7s0)

BEG"V'V'/VG OF YEAR 2,847,359 2.814.314 283,812 167,060 4,057,908 4,714,495 7,189,079 7,695.869
'VETASSEIS,
,VETASSETS,ENDOFYEAR _q___?.999!9q_
-S__2.q42!9e _$____l_9?.921_ _q___3p!Z,eq8_9___q4ql_9_
_$___9,591,419_
_$_____?99i_12 _q____z,r_99!ze

The accompany ng notes are an Integfa pad of these flnancral statements

j
 FRANCISCANRENEWALCENTER.INC.

STATEMENTSOF CASH FLOWS

For the FiscalYears EndedAugust 31, 2009and 2008

2009 2008
cAsH FLOWS FROM (USED tN) OqERATING ACTTVIT|ES
Changesin net assets (438,961) (506,7e0)
Adjustmentsto reconcilenet assets
to net cash providedby operatingactivities:
Realizedlosses(gains)on saleson securities 514,596 (213,444)
Unrealized (gains)losseslosseson securities (144,361) 175,429
Depreciation expense 147,072 154,456
(lncrease)decreasein currentassets.
Interestreceivable 4,370 38,085
Accountsreceivable 54,675 (57,343)
Inventories (2,621) (200)
Prepaidexpenses (4,547) 1,363
Increase(decrease) in liabilities:
Accountspayable (11,831) 13,879
Accruedliabilities IJ ,C J Z (14,851)
Deferredincome 20,207 (18,636)
Otherliabilities (788) (2,320)
Pledgeto ProvincialTrust 400,000

NET CASH PROVIDEDBY

OPERATINGACTIVITIES 151,343 (30,372)

cAsH FLOWS (USED tN) FROM TA/yESr/NGACTtVtTtES

Capitalexpenditures (1 e 6 , e 2 6 ) (141,238)
Commitmentfor Province (400,000)
Investmentactivity,net 161,167 567.145

NET CASH USEDIN INVESTINGACTIVITIES (35,75e) 25,907

NET INCREASE CASH 11 5 , 5 8 4 (4,465)

'A/
CASHAT BEGINNING OF YEAR 324,035 328,500

CASHAT ENDOF YEAR 439,619 324,035

notesare an integralpartof thesefinancialstatements

The accompanying
 FRANCISCANRENEWALCENTER,INC.
NOTESTO FINANCIALSTATEMENTS
A u g u s t 3 1 , 2 0 0 9a n d 2 0 0 8

NOTE A - ORGANIZATION

The Franciscan Renewal Center, Inc. (hereafter referred to as "the Center") is

incorporatedfor the purpose of being a Christ-centeredplace that provides the
environmentand resourcesfor God to work through people.Groundedin the Gospel
conceptsof peace,justice and human dignity,the Center is committedto livingthe
Gospel through education,healing and hospitality,social action and contemplative
experience. The Center providesan active spiritualworship locationfor a Catholic
community,formed by Franciscantraditionand valuesand rootedin SacredScripture
and unitedin the worshipof God throughliturgicalcelebrationand prayer,both private
a n d co mmunal.

The Center is a not-for-profitreligiousorganizationunder section 501(cX3)of the

InternalRevenueCode. lt is exempt from federal income taxes under the lnternal
RevenueCode of 1986,as amended,grouprulingwhichis renewedon an annualbasis
and appliesto all entitieslistedin the OfficialCatholicDirectory. Bequests,legacies,
transfers,or giftsto the Centerare deductiblefor income,estate,and gift tax purposes.

The Centeris governedby the Boardof Directors,who, in turn, is governedby the Board
of Trusteesof the FranciscanFriars,Provinceof St. Barbara.

NOTE B _ SIGNIFICANT
ACCOUNTINGPOLICIES

Basis of Accountinq

The Center'sfinancialstatementsare presentedusingthe accrualmethodof accounting

in conformitywith accountingprinciplesgenerallyacceptedin the United States of
America(GAAP).The initialpropertyacquisition was firstcapitalized
on July 1, 1980via
all property
a transferfromthe FranciscanFriars,Provinceof St. Barbara.Substantially,
and equipmentadditionshave been recordedat eitherestimatedor actualcost on the
date of initialacquisition.

Use of Estimates

The preparation with generallyacceptedaccounting

of financialstatementsin conformity
principlesrequiresmanagementto make estimatesand assumptions that affectcertain
reportedamountsand disclosures. Accordingly,actual resultscould differ from those
estimates.

Cash and Cash Equivalents

Cash and cash equivalentsincludesmonies in banks held in checkingor depository

accounts,includingmoney market accounts. The total cash held by the Center at
August31, 2009 includes$278,013in bank accountsthat are not coveredby insurance
by the federalgovernment.
FRAN CIS CA NRE NE WA LCE NT E R,I NC.
NOTESTO FINANCIALSTATEMENTS
Aug u st 31, 2009and 2008(Gon t in u e d )

Short-term Certificates of Deposit and lnvestments held for the Province

Theseshort-terminvestments includelong-termmoneymarketaccumulation fundsfor
the distributionfrom funds relatedto unrestrictedor temporarilyrestrictedfundsfor which
the currentmaturities are greaterthanthreemonths.Thesefundsare fullyinsured
throughthe FDICwith the Certificateof DepositRegistryAccountService(CDARS)
program
Interest Receivable
fundsreoresentdistributions
Theseaccumulated fromthe endowmentfunds.
Accounts Receivable
All accountsreceivableare reportedbased on the amount of the billed contractual
invoice. After 90 days, trade receivablesare deemed uncollectibleand transferredto a
reserveaccount,reducingthe underlyingrevenue. For otherreceivables, when deemed
the amountsare immediately
uncollectible, chargedto the underlyingincomeor expense
account,basedon the initialentryfor the receivable matching.
for appropriate
lnventories
Inventories,consistingprimarilyof gifts and books used for programsor eventsand food
served in the dining room, are statedat the lower of cost or market. Cost is determined
by the averagecost method,which approximatesthe first-in,first-outmethod.
lnvestments
Investmentsare reported at fair market value in accordancewith the provisionsof
Statementof FinancialStandards(SFAS) No. 124, "Accountingfor CertainInvestments
Held by Not-for-Profit "
Organizations.
Realizedgains and losses on sales of investmentsare determinedon a specificcost
identificationmethod. Unrealizedgains and losses are determinedbased on year-end
market value fluctuations. The Center follows the practice of widely diversifyingits
investmentsto mitigateconcentrationsof creditrisk.
Deferred lncome
The Centeracceptsreservationsand depositsfor programsthroughoutthe year.
Deferredincomerepresentsamountsreceivedunderagreementor programregistration
in advanceof the periodin whichtheseserviceswill be provided.
Nef Assets
The Centerhas adoptedthe provisionsof Statementof FinancialAccountingStandards
(SFAS)No. 117,"Financial
Statements for Not-for-Profit
Organizations,"

Under these provisions,net assets and revenues,expenses,gains, and losses are

classified based on the existence or absence of donor-imposedrestrictions.
Accordingly,net assetsof the Centerand changesthereinare classifiedand reportedas
follows:

Unrestrictednet assefs - net assets that arc not subject to donor-imposed

stipulations.
FRANCISCANRENEWALCENTER,INC.
NOTESTO FINANCIALSTATEMENTS
August 31, 2009and 2008(Gontinued)

Temporarilyrestrictednef assefs - net assets subject to donor-imposed,Board-

imposedor managementimposedstipulations that may or will be met by actionsof
the Centerand/orthe passageof time.

Permanentlyrestrictednef assefs - net assets whose principalmust remain intact;

however,the income derivedfrom these net assets may be expendedaccordingto
donor-specified
terms.

Donated Assets

Donatedmarketable securitiesand othernoncashdonationsare recordedas contributions at

their estimatedfair values at the date of donation. Such donationsare reportedas
unrestrictedsupportunlessthe donor has restrictedthe donatedassetto a specificpurpose.

Donated Services

A substantial numberof unpaidvolunteershave madesignificant contributionsof servicesto

the Center. Generallyacceptedaccountingprinciplesrequirecontributed skilledservicesto
be valuedand reflectedin the financialstatements.The Center'scontributed skilledservices
are not significant
in relationto all contributed
servicesand accordingly
such amountsare not
recordedand recognizedin thesefinancialstatements.

Revenue Recoqnition

The Center has adoptedStatementof FinancialAccountingStandards(SFAS) No. 116,

"Accounting Receivedand Contributions
for Contributions Made."

The Center reportsgifts of cash and other assets as restrictedsupportif they are received
that limitthe use of the donatedassets. When the donor restriction
with donor stipulations
expires, temporarilyrestrictednet assets are reclassifiedto unrestrictednet assets and
reportedin the statementof activitiesas net assets releasedfrom restrictions.Contributions
which are restrictedas to use by the donor,and which are receivedand spent duringthe
same year,are reflectedas unrestrictedrevenue.

Contributionsare recognrzedas revenue when they are received. Contractedor fee

revenuesare recognizedin the monththe serviceis provided.

The Centermaintainsan operatingleasefor Booksand Blessings,an independently owned

business,to operate a gift shop on the Center's propertyfor the benefit of the Center's
visitors.This entityprovidesreligiousbooksand productsand the underlyingrentalincome
is recordedduringeach monthof operationfor that specificunderlyingmonth.

lnvestment lncome

BeginningSeptember1,2004,investmentincomeincludesa four percent(4%)distribution of

the average the prior three-yearending balancesof the endowmentinvestments. All
management fees are chargedto the endowmentfund. Beforethat time,investmentincome
includesinterestincome,net of managementfees. Gross realizedgains and lossesare
methodas describedin Note G.
recognizedusingthe specificidentification
FRANCISCANRENEWALCENTER,INC.
NOTESTO FINANCIALSTATEMENTS
August 31, 2009and 2008(Gontinued)

Reclassifications
Certainitems have been reclassifiedto conformto the currentyear presentation.
Corrections
The statementshave been correctedto complywith GenerallyAcceptedAccounting
Principlesand the requirementsof non-profitaccountingby disclosingaccumulated
depreciationand recordingannualdepreciation expense.The statementshavebeen
correctedfor the each of the years presented.
NOTEC _ FAIRVALUE MEASUREMENT
EffectiveSeptember'1,2008,the CenteradoptedFinancialAccountingStandardsBoard
(FASB)Statement157, FairValue Measurement,for measuringand reportingfinancial
assetsand liabilitiesat fair value.These includeassetsthat derivevaluefrom a contractual
claim. This includesstocks,bonds,and bankdeposits.The Centerdoes not maintainany
liabilities
relativeto thesemeasurement requirements. FASBStatementNo. 157 definesfair
value as the pricethat would be receivedto sell an assetor paidto transfera liability(an exit
price)in the principalor mostadvantageous marketfor the assetor liabilityin an orderly
transactionbetweenmarketparticipantson the measurementdate.

FASB StatementNo. 157 establishesa three-leveldisclosurehierarchyto indicatethe level

of judgmentusedto estimatefair valuemeasurements.

Level 7 - Quotedpricesin activemarketsfor identicalassetsor liabilitiesas of the reporting

date.
Level2 - Quotedpricesfor similarassetsand liabilities in activemarkets;quotedpricesfor
identicalor similarassetsand liabilitiesin marketsthat are not active;and inputsotherthan
quotedprices(suchas interestrate and yieldcurves).
Level3 - Usesinputsthat are unobservable,
supportedby littleor no marketactivityand
reflectsignificant
management judgment.

Duringthe yearendedAugust31, 2009,all assetsand liabilities,

for itemsmeasuredat fair
valueon a recurringbasis,are as follows:

Lev e ll L e v e l2 L e v e l3 Total

Ca sh $439,6 1 9 $ - $ $ 439,619
Shortterm Certificates
of Deposit 250,000 250,000
EndowmentInvestments 4,237,090 4,237,09Q
lnvestmentsheldfor
theProvince 400.000 $ - $ - $ 400.000
$t326J09 $-----=- $- $u26J09
NOTED - GONCENTRATION
OF CREDITRISK- NON-PROFIT
ACTIVITY
The Centeris committed to providing
a religious
retreatfacility,maintaining
a community
prayerchapelwithdailyandweeklyservices,andassistingthe lessfortunate.TheCenter

8
FRAN C IS CA N
RE NE W A LCE NTER,I NC.
NOTESTO FINANCIALSTATEMENTS
August 31, 2009and 2008(Continued)

receivedordinary support from hosted events of other non-profitgroups with missions in

alignmentwith the Center'svision,educationprograms,investmentincome,donationsand
other gifts. The Center is dependentupon direct contributionsand bequestsfrom the
generalpublicor supporttowardsthe individualprogramsofferedat the Centerto meet the
operationaland programexpenses. Consequently,the Center is affectedby the numbers
and compositionof the local Franciscanand communitypopulationsas well as affectedby
generaleconomicfluctuations.

NOTE E _ CASH AND CASH EQUIVALENTS

Cashand Cash Equivalents

consistof the followingat August31,
2009 2008
TemporarilyRestricted $ $ 41,412
Unrestricted 439,619 282,623
Total Cash and Cash Equivalents $___439*619 $__324p35
NOTEF _ ACCOUNTSRECEIVABLE

AccountsReceivableare shown net of an allowancefor uncollectible

trade receivablesof
$5,126and $11,392at August31, 2009 and 2008,respectively.

NOTEG - LONG-TERMINVESTMENTS
AND PERMANENTLYRESTRICTEDFUNDS
In 1993, the long{erm investmentswere put under the managementof two investment
managerswho are responsibleto the Board of Directors. In 2006, all temporarilyrestricted
assetswere liquidatedand reclassifiedto cash or a Certificateof Deposit. At this same time,
the endowmentfunds were transferredto one investmentfirm, with $200,000of the funds
remainingin cash accounts. Of this amount$100,000residedin a Certificateof Depositand
was permanentlyendowedfor the FranciscanFormationgroup. In 2008, this $100,000
amount was transferredto the Province of St. Barbara FraternalCare Trust to use for
Formation.The additional$100,000was providedto the CatholicCommunityFoundationin
2006 and is includedin EndowmentInvestments.
The temporarilyrestrictedinvestmentsare either donor-restricted for a specificshort-term
purposeor are availablefor use at the discretionof the ExecutiveDirectorof the Center.
To sustainthe futureoperationsof the Center,the EndowmentInvestmentsare restrictedby
either the donors or the Board of Directors. The principalis held in perpetuityand will
fluctuatewith the unrealizedand realizedgainsor losseson theseinvestments.The Center
used a four percent (4o/o)distributionfrom the three-yearrolling average balance of the
permanentlyrestrictedinvestmentsto support current operations. The Board designated
portion of the endowmentfunds are reflectedas Unrestrictednet assets while the donor
restrictedfunds are presentedas Permanentlyrestrictednet assets.
During2008,the Boardof Directorscommitted$400,000from the endowmentfunds,related
to formationactivities,to the Provinceof St. Barbara FraternalCare Trust. These funds
remainin an insuredCertificateof Depositand have been classifiedas investmentsheld for
the Provinceand includedin longterm assets. This amounthas been reclassified from the
permanentlyrestrictedinvestmentnet assetsat the end of the fiscalyear to Investmentsheld
for the Provincewith an offsettinglongterm liability.Thesefunds will be sent to the Province
of St. Barbaraduringfiscal2011. Untilthen,thesefundsremainpartof the investments held
by the Center. Upon maturity,the underlyinginterestwill remainwith the Center.
9
FRANCISCANRENEWALCENTER,INC.
NOTESTO FINANCIALSTATEMENTS
August 3f , 2009and 2008(Continued)

The EndowmentInvestments are recordedat the marketvalue providedby the investment

managersand as of August31 are as follows:
2009 2008
Endowmentlnvestments
Cash/Money marketfunds $ 594,338 $ 626,308
Equitysecurities 2,502,225 2,307,951
Debtsecurities 888,1
85 1,039,599
Governmentsecurities 252.342 794,644

TOTALENDOWMEIVT
//VYESTMENTS $rt23z*090 $_4J58fr2

The investmentreturnsand classifications

in the Statementof Activitiesfor the yearsended
August31 are as follows:
2009 2008
lnvestmentdistribution
income $ 208,992 $ 203,640
Realized(losses)gains (514,596) 213,444
Unrealizedgains(losses) 144,361 (175.429\

TOTALINVESTMENT
RETURN $_Jr6r243) L_241-055
M a n a g e mentfees for the years e n d e d A u g u s t 3 1 , 2 0 0 9 a n d 2 0 0 8 we re $ 3 9 , 5 0 6a n d
$50,485,respectively. Each of these items have been allocatedbetweenDonor restricted
and Boarddesignatedfundsfor presentationon the Statementsof Activities.

NOTEH - PROPERTYAND EQUIPMENT

Propertyand equrpment
as of August31 is as follows:
2009 2008
Landand landimprovements 743,717 $ $ 741,292
Buildingand structuralimprovements 4,483,825 4,354,971
Equ ip m ent
andfurnishings 833.780 768.133
6,061,322 5,864,396
LessAccumulated and amortization (4,196,141\
depreciation (4,049,069
TOTAL PROPERTY AND EQUTPMENT $_l_805_181 $_l_815322
lmprovementsgreaterthan $1,000that extend asset lives are capitalized;other repairsand
maintenancechargesare generallyexpensedas incurred. The cost applicableto assets
sold or retiredis removedfrom the accountsand the gain or loss on dispositionis recognrzed
as a component of ordinary income. Depreciationand amortizationof property and
equipmentare computedon a straight-line basisover estimatedusefullivesof 3 to 40 years
and totaled $147,072 and $154,456for the years ended August 31, 2009 and 2008,
respectively.

NO TEI- LONGTE RM LIA B ILITI E S

As notedin NoteG, duringfiscal2009,the Boardof Directorscommitted$400,000to the

Provinceof St. BarbaraFraternalCareTrust. The agreementprovidesfor this amountto be
providedto the Provincein fiscal 2011. Therefore,as of August31, 2008,the committed
amounthas beenreclassified fromthe permanently restricted
funds,wherethe amount
residedat August31,2007,to the long-termliability, Commitment to ProvincialTrust.

10
FRAN C IS CA NRE NE W A LCE NTER,I NC.
NOTESTO FINANCIALSTATEMENTS
August 31, 2009and 2008(Continued)

NOTEJ - TEMPORARILYRESTRICTEDNET ASSETS

2009 2008
Casaimorovement funds $ 52,404 $ 149,352
Contingency funds 43,377 23,282
BlessedSacramentChapelfund 35,629 35,629
SocialActionMinistryfunds 27,904 28,500
Staffevents(Sundaybrunches/raffle/books) 7,201
Staffdevelopment 6,435 5,120
Chaoelmusicfund 6,224 14,650
Perricone funds 5,000
Adulteducationscholarships 3,304 c,ooo
Buildingfunds 2,600
Love is for Everyoneretreatsupport 1,470 1,470
Repairof stations 826 2,489
Calledto Love,including dinnerdance 9,930
Fountain 7,724
Memorialgifts
Soeakerfunds
Formationfunds
TOTAL TEMPORA R/t Y RESTRI CTED
NETASSETS g::-lezg4 $_ 283312
Increases in Temporarily Restricted Net Assefs
Casa improvementfunds $ 76,880 $ 138,613
Contingency fund 20,095 4,311_
SocialActionMinistryfunds 400
Staffevents(Sundaybrunches/raffle/books) 8,455
Staffdevelopment 1,315 3,360
Chapelmusicfund 26,638 J I ,ZJU
Perriconefunds 5,000 3,400
Adulteducationscholarships 687 3,540
Buildingfunds 2,600
Calledto Love,includingdinnerdance 52,731 63,795
Fountain 10,000
Formationfunds 1,023
'194,801 265,272
Temporarily Restricted Nef Assets Re/eased
Casa imorovementfunds $ 173,828 7,174_
SocialActionMinistryfunds 996
Staffevents(Sundaybrunchesiraffle/books) 1,254
Chapelmusicfund 35,064 36,021
Perriconefunds 8,400
Adulteducationscholarshios 3,049 2,465
Reoairof stations 1,663
Calledto Love,includingdinnerdance 62,661 83,953
Fountain 7,724 z,zto
Memorialgifts 2,035
Soeakerfunds 590
Formationfunds 6 ANA
286.239 148,520
CHANGES IN TEMPORAR'LY RESTRICTED
NETASSETS $ (9 1 . 4 3 8 ) $ 116.752

11
FRANCISCANRENEWALCENTER,INC.
NOTESTO FINANCIALSTATEMENTS
Aug u st 31, 2009and 2008(Contin u e d )

NOTEK - RETIREMENT
SAVINGSPLAN
The Centerprovidesa retirementsavingsplan for the benefitof eligibleemployees. The
plan allowseligibleemployeesto defer a portionof their annualcompensation, pursuantto
Section403(b) of the InternalRevenueCode. The Center'smatchingand profit-sharing
contributionsare discretionaryas determined by the Center's Board of Directors. The
Center'smatchingand profit-sharingcontributions
vest to employeesas follows:
0-1Year 0o/o
2 Years 25o/o
3 Years 50%
4 Years 75%
5 Years 100o/o
The Centerfunded$32,410and $30,227duringthe yearsendedAugust31, 2009 and 2008,
respectively.

N OTEL_RE LA TE DP A RTIE S

The Center has an agreementwith the FranciscanFriars,Provinceof St. Barbarato provide

assessmentpaymentsequalto 4o/oof the Center'sadjustedfiscalyear gross revenues. The
Centerpaid assessments of $87,566and $75,474for the yearsendedAugust31, 2009 and
2008, respectively.

Per Notes G and l, the Center's Board of Directorsentered into an agreementto provide
$500,000of the Center'sendowmentfund to the Provinceof St. BarbaraFraternalCare
Trust to use for Formation. Untilthe decisionof the Boardto committhesefunds,they were
designatedby the donorfor use in formationactivitiesand were includedin the permanently
restrictednet assetsof the Center.

The Centerprovidesroom,boardand miscellaneous administrativeand retirement

expenses
for the local FrancrscanFriarswho work directlywith the Center. The Center paid the local
FranciscanFriars living expensesand benefitsof $147,831and $139,913for the years
ended August 31, 2009 and 2008, respectively.The Center paid the FranciscanFriars,
Provinceof St. Barbarasocialsecurityand retirementbenefitsof $15,465and $14,987for
the yearsendedAugust31, 2009and 2008,respectively.
The Board of Directorsconsistsof 12 voting directorsof which three members are friars.
One of these friarsrepresentsthe Boardof Trusteesof the FranciscanFriars,Provinceof St.
Barbara. One of the otherfriars servesas the ExecutiveDirectorof the Center. One of the
lay board membersis the GeneralManagerof the Center.

NOTEM _ INCOMETAX STATUS

The Centeris exemptfrom federalincometax underSection501(cX3)of the lnternal

RevenueCode,exceptfor taxeson unrelatedbusinessincome. Duringthe yearsended
August31, 2009and 2008,the Centerhad no unrelatedbusinessincome.

A'OTE N - SUBSEQUEA/TEYENTS

The Centerwas named as beneficiaryin a Trust. On October20,2009, the Centerreceived

the finalnet proceedsof $175,000from the estate.

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