2019 Harvest Point Financial Review : simplebooklet.com

11200 Broadway St Ste 2743 Pearland TX77584 Phone 832 375 0222 awilliams cpawilliamsonline com Independent Accountant s Review Report To The Board of Directors Harvest Point Fellowship Church I have reviewed the accompanying statement of financial position of the Harvest Point Fellowship Church a not for profit entity as of December 31 2019 and the related statements of activities and changes in net assets and cash flows for the year then ended and the related notes to the financial statements A review includes primarily applying analytical procedures to management s financial data and making inquiries of company management A review is substantially less in scope than an audit the objective of which is the expression of an opinion regarding the financial statements as a whole Accordingly I do not express such an opinion Management s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America this includes design implementation and maintenance of internal control relevant to the preparation and fair presentation of the financial statements that are free from material misstatement whether due to fraud or error Accountant s Responsibility My responsibility is to conduct the review in accordance with Statements on Standards for Accounting and Review Services promulgated by the Accounting and Review Services Committee of the American Institute of Certified Public Accountants Those standards require me to perform procedures to obtain limited assurance as a basis for reporting whether I am aware of any material modifications that should be made to the financial statements for them to be in accordance with accounting principles generally accepted in the United States of America I believe that the results of my procedures provide a reasonable basis for my report Accountant s Conclusion Based on my review I am not aware of any material modifications that should be made to the accompanying financial statements in order for them to be in accordance with accounting principles generally accepted in the United States of America 1

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Supplementary Information My review was conducted for the purpose of determining if any material modifications should be made to the accompanying financial statements as a whole in order for them to be in accordance with accounting principles generally accepted in the United States of America The schedule of functional expenses on page 6 is presented for the purposes of additional analysis and is not a required part of the financial statements Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements The information has been subjected to procedures applied in the review of the financial statements and certain additional procedures including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves and other additional procedures in accordance with Statements on Standards for Accounting and Review Services promulgated by the Accounting and Review Services Committee of the American Institute of Certified Public Accountants Ann E Williams CPA PC Pearland Texas September 16 2020 2

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Harvest Point Fellowship Church A Texas Not for Profit Corporation Statement of Financial Position December 31 2019 Unrestricted Temporarily Restricted Total ASSETS Cash Building Improvement Signage Furniture and equipment Land Building Deposit Accumulated Depreciation Other Assets Total Assets LIABILITIES 30 833 305 147 4 325 75 539 526 198 16 270 27 446 930 866 30 833 305 147 4 325 75 539 526 198 16 270 27 446 930 866 83 551 1 913 348 016 433 480 497 386 930 866 Accounts payable Other Current Liability Notes Payable Total Liabilities NET ASSETS Unrestricted Temporarily Restricted Total Net Assets Total Liabilities and Net Assets 83 551 1 913 348 016 433 480 497 386 497 386 930 866 The accompanying notes are an integral part of these financial statements 497 386 930 866

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Harvest Point Fellowship Church Statement of Cash Flows For the Year Ended December 31 2019 CASH FLOWS FROM OPERATING ACTIVITIES Decrease in net asssets Adjustments to reconcile increase decrease in net assets to net cash provided by operating activities Depreciation Prior period adjustment cash Increase decrease in other asset Increase decrease in inventory Increase decrease in liabilities NET CASH PROVIDED USED BY OPERATING ACTIVITIES 83 684 5 885 159 641 77 845 7 773 CASH FLOWS FROM INVESTING ACTIVITIES NET CASH PROVIDED USED BY INVESTING ACTIVITIES Increase decrease in Fixed Assets 336 CASH FLOWS FROM FINANCING ACTIVITIES NET CASH PROVIDED USED BY FINANCING ACTIVITIES Increase decrease in Long Term Liabiliites INCREASE DECREASE IN CASH CASH BALANCE BEGINNING OF YEAR 11 883 4 446 35 279 CASH BALANCE END OF YEAR 30 833 Total Interest Paid 2018 25 433 The accompanying notes are an integral part of these financial statements

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Harvest Point Fellowship Church A Texas Not for Profit Corporation Statement of Activities and Changes in Net Assets For the Year Ended December 31 2019 Unrestricted Temporarily Restricted Total REVENUE AND SUPPORT CONTRIBUTIONS General Donations Other Income Building Campaign Funds Organizations Churches Individuals TOTAL CONTRIBUTIONS 898 591 42 898 632 12 898 644 303 212 511 748 814 960 CHANGES IN NET ASSETS Prior Period Adjustments NET ASSETS BEGINNING OF YEAR 83 684 1 029 414 730 NET ASSETS END OF YEAR 497 385 111 300 111 300 898 591 42 111 300 1 009 932 111 300 12 1 009 944 111 300 111 300 303 212 623 048 926 260 83 684 1 029 414 730 497 385 OTHER Interest and other miscellaneous income Net Assets released from restrictions EXPENSES Ministry Services General and Administrative TOTAL EXPENSE The accompanying notes are an integral part of these financial statements

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Harvest Point Fellowship Church A Texas Not for Profit Corporation Statement of Functional Expenses December 31 2019 Ministry Services Adult Ministries Pastoral Care Connect Ministry Student Ministry Children s Ministry Worship Creative Arts Ministr Media Ministry Pastoral Administration General Ministry Rent Facilities Expenses Operations Expenses Payroll expense Depreciation Utilities Equipment Rental and Storage Insurance Professional fees Supplies Outreach Missions Miscellaneous Vehicle expense Technology Expenses Finance Expenses 6 288 13 985 32 287 4 667 31 046 67 118 24 110 12 351 22 163 33 000 982 55 215 Supportive Services 303 212 Total 262 351 26 437 223 255 5 885 17 066 10 996 18 516 12 035 2 216 14 018 30 271 623 048 The accompanying notes are an integral part of these financial statements 6 288 13 985 32 287 4 667 31 046 67 118 24 110 12 351 22 163 262 351 26 437 256 255 5 885 17 066 10 996 19 498 12 035 2 216 55 215 14 018 30 271 926 260

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Harvest Point Fellowship Church A Not for Profit Organization Notes to the Financial Statements December 31 2019 Note A Organization Harvest Point Fellowship Church the Organization was established in the fall of 2013 after years of prayer preparation and consultation Lawrence and Shannon met with 7 families in their home and presented the vision God had given them regarding a future church to be called Harvest Point Fellowship Church Fellowship Church They were reminded of what Jesus spoke in Matthew 9 37 38 when He said The harvest is plentiful but the workers are few Ask the Lord of the harvest therefore to send out workers into his harvest field With this in mind they envisioned a church that would equip workers for the harvest A place where lives are changed and spiritual growth is commonplace With the vision in front of them this core team began to pray day and night about this move of God As they continued to pray and seek a place to hold worship services an interest meeting was held at their home church Bethel s Family for anyone who wanted to be a part of this local church plant That day more families were added to their core team In celebration of this move of God this team was commissioned in January 2014 by Pastor Walter August and The Church at Bethel s Family to go plant Harvest Point Fellowship Church Fellowship Church in January of 2014 Note B Summary of Significant Accounting Policies Basis of Accounting and Use of Estimates The Organization s financial statements have been prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America Management must make estimates and assumptions to prepare financial statements in accordance with generally accepted accounting principles These estimates and assumptions affect the reported amounts of assets and liabilities the disclosure of contingent assets and liabilities the amounts reported as revenue and expenses and the allocation of expenses among various functions Actual results could vary from the estimates that were used Cash Cash is comprised of available cash balances The Organization maintains its cash in bank deposit accounts which at times may exceed federally insured limits The Organization has not experienced losses in such accounts Management believes that the Organization is not exposed to any significant credit risk on cash Contributions The Organization maintains its accounts in accordance with the principles and practices of fund accounting Fund accounting is the procedure by which resources for various purposes are classified for accounting purposes in accordance with activities or objectives specified by donors These financial statements have been prepared to focus on the Organization as a whole and to present balances and transactions classified according to the existence or absence of donor imposed restrictions This has been accomplished by classification of fund balances into three classes of net assets permanently restricted temporarily restricted or unrestricted

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Harvest Point Fellowship Church A Not for Profit Organization Notes to the Financial Statements December 31 2019 All contributions are considered to be available for unrestricted use unless specifically restricted by the donor Amounts received that are designated for future periods or are restricted by the donor for specific purposes are reported as temporarily restricted Amounts required to be in perpetuity by the donor are reported as permanently restricted assets Contributions including unconditional promises to give are recognized in the period received Conditional promises to give are not recognized until the conditions upon which they depend are substantially met A donor restriction expires when a stipulated time restriction ends or when the purpose for which it was intended is obtained Temporarily restricted net assets are reclassified to unrestricted net assets upon expiration of donor restrictions and are reported in the statement of activities as net assets released from restrictions Restrictions expiring on contributions received in the same year result in a reclassification from temporarily restricted to unrestricted Operating and Other Activities The Organization s measure of operations includes all revenue and expenses that are an integral part of its programs and supporting activities net assets released from donor restrictions to support operating expenditures and transfers from Board designated and other non operating funds to support current operating activities The measure of operations excludes support for non operating and restricted operating activities donated services and space and debt service Donated Materials and Services Donated materials are recorded at fair market value at the date of the donation Donated services that create or enhance nonfinancial assets or require specialized skills are recognized as revenues and corresponding expenses Donated services that do not meet the above conditions are not recognized Advertising Costs are expensed as incurred Allocation of Functional Expenses Expenses are allocated to various programs and supporting services based on the ultimate use oftheproductorservicesandonestimatedtimeandeffortinvestedintheactivity Certaincosts may be allocated among the program and supporting services benefited Property and Equipment Purchased property and equipment is recorded at cost Donated property and equipment is recorded at the estimated fair value at the date of the gift The Organization reports gifts of land buildings and equipment as unrestricted support unless explicit donor stipulations specify how the donated assets must be used Gifts of long lived assets with explicit restrictions that specify how the assets are to be used and gifts of cash or other assets that must be used to acquire long lived assets are reported as temporarily restricted support Absent explicit donor stipulations about how long these longlived assets must be maintained the Organization reports expirations of donor restrictions

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Harvest Point Fellowship Church A Not for Profit Organization Notes to the Financial Statements December 31 2019 When the donated or acquired long lived assets are placed in service if insignificant gifts of long lived assets are expensed when received Depreciation is computed using the straight line method over the estimated useful life Furniture and fixtures are depreciated over 5years machinery and equipment are depreciated over 5years and vehicles are depreciated over 5 years The Organization capitalizes purchased property and equipment having a cost greater than 750 00 with estimated useful life greater than one year Expenditures for repair and maintenance are charged to operating expenses as incurred Statement of Cash Flows The statement of cash flows is presented using the indirect method Memorandum Totals Total columns on the financial statements are captioned memo only to indicate that they are presented only to facilitate analysis Amounts in these columns do not present financial position or results of operations in conformity with accounting principles generally accepted in the United States of America These amounts are not comparable to a consolidation Note C Building Campaign Project Next The vision is to be a church of multiplication and discipleship Harvest Point embarked on a building project to grow with the vision God has given to Harvest Point and beyond We do not want a bigger building simply for the sake of being bigger church but for the sake of the mission and vision of our church to the glory of God The church looks forward to expanding the children and student ministries as it will give more opportunities to utilize various teaching methods and settings from small groups lessons creative space and age based worship opportunities The church also seeks to have additional space for adult small groups fellowship opportunities and a worship space that will not only assist in creating an atmosphere of intimacy but can accommodate our growing church To build a facility that will assist in discipling 500 families including a worship center that seats approximately 500 550 people ample space to lead 400 children and students and intentional space designed to encourage fellowship with opportunities to deepen relationships within our local congregation It is a three year project that is divided into two phases Phase I includes raising capital identifying purchasing land and eventually paying off the mortgage of the land within that period Phase I will last approximately 18 months ending in March 2018 Phase II will consist of planning and raising capital for the construction of the church Phase II will last approximately 18 months ending in August 2019 Construction is slated to begin the fall of 2020 or when the down payment goal is reached whichever occurs first Total funds raised in 2019 were 111 300 The church does not record commitments to give as a receivable

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Harvest Point Fellowship Church A Not for Profit Organization Notes to the Financial Statements December 31 2019 Note D Property and Equipment Property and equipment consist of the following Land Signage Musical Instruments Sound Audio Visual Equipment Computer Equipment Furniture TOTAL 526 198 4325 7222 33429 1433 33454 606 061 Depreciation expense totaled 5 885 for the year ended December 31 2019 Note E Income Taxes The Organization has received a letter of determination exempting the Organization from federal income tax under Section501 c 3 of the Internal Revenue Code The Organization is classified as other than a private foundation Accordingly no provision for income taxes is included in the financial statements Note F Compensable Absences The Organization has not accrued for compensable absences because the amount cannot be reasonably estimated at December 31 2019 However the Organization s management does not believe the amount to be material Note G Contingencies Amounts received may be temporarily or permanently restricted Failure by the Organization to comply with donor specifications may result in the donor requesting that the contribution be returned As of December 31 2019 the Organization has met all donor specifications on all Temporarily and permanently restricted contributions and accordingly no provision has been made for any liabilities that might arise from noncompliance Note H Current Vulnerability Due to Certain Concentrations The Organization operates in a heavily regulated environment The operations of the Organization are subject to the administrative directives rules and regulations of federal state and local regulatory agencies Such administrative directives rules and regulations are subject to change by an act of Congress or an administrative change made by these agencies Such changes may occur with little notice or inadequate funding to pay for the related cost including the additional administrative burden to comply with a change

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Harvest Point Fellowship Church A Not for Profit Organization Notes to the Financial Statements December 31 2019 Note I Schedule of Functional Expenses The Organization reports its operating expenses into primarily two functional classifications Ministry services activities that provide goods and services to the beneficiaries customers and members of the Organization that fulfill its purpose or mission for which the Organization exists Support services activities not directly related to the purpose or mission for which the Organization exists but which are necessary for the Organization to operate Supporting services generally include management and general fundraising and membership development activities Note J Lease Commitments Total lease expense Office Rent incurred under operating leases totaled 262 351 and total copier lease expense incurred totaled 4 858 Year Ending December 31 2020 2021 2021 and thereafter Future Lease and Rental Commitments 263 782 263 782 260 299 Note K Notes Payable Notes Payable consist of a 20 year note payable to Vasudev Properties LLC executed on February 3 2017 in the amount of 375 000 bearing interest of 7 annum The loan is secured by the land located at 2450 Garden Road in Pearland Texas Total principal and interest payments were 10 139 and 24 750 respectively in 2019 Note L Subsequent Events FASB 165 which is codified in ASC Topic 855 10 requires the disclosure of the date through which the Organization has evaluated subsequent events and the reason for selecting that date The Organization evaluated subsequent events through September 16 2020 the date the financial statements were available to be issued As a result of this evaluation no other events were identified that are required to be disclosed or would have a material impact on reported net assets or changes in net assets

2019 Harvest Point Financial Review

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