TEACH THE STORY

FINANCIAL STATEMENTSAND

INDEPENDENT ACCOUNTANTS’ COMPILATION REPORT

DECEMBER 31, 2019____________________

Teach The StoryTable of ContentsDecember 31, 2019

PageINDEPENDENT ACCOUNTANTS’ COMPILATION REPORT ..................................... 1

FINANCIAL STATEMENTS Statement of Financial Position......................................................................................... 2

Statement of Activities and Changes in Net Assets .......................................................... 3

Statement of Functional Expenses. ………………………………………………………4

Statement of Cash Flows ................................................................................................... 5

NOTES TO THE FINANCIAL STATEMENTS.............................................................. 6-9

INDEPENDENT ACCOUNTANTS’ COMPILATION REPORT

To the Board of DirectorsTeach The Story

Management is responsible for the accompanying financial statements of Teach The Story (a nonprofit organization), which comprise the statement of financial position as of December 31, 2019, and the related statements of activities and changes in net assets, functional expenses and cash flows for the year then ended, and the related notes to the financial statements in accordance with accounting principles generally accepted in the United States of America. We have performed a compilation engagement in accordance with Statements on Standards for Accounting and Review Services promulgated by the Accounting and Review Services Committee of the AICPA. We did not audit or review the financial statements nor were werequired to perform any procedures to verify the accuracy or completeness of the information provided by management. We do not express an opinion, a conclusion, nor provide any assurance on these financial statements.

Salmon Sims Thomas & AssociatesA Professional Limited Liability Company March 30, 2020

Current AssetsCash 145,250$

Total Current Assets 145,250

TOTAL ASSETS 145,250$

Current LiabilitiesAccounts payable and accrued expenses 9,218$

Total Current Liabilities 9,218

Net AssetsWithout donor restrictions

Undesignated 136,032

TOTAL LIABILITIES AND NET ASSETS 145,250$

LIABILITIES AND NET ASSETS

Teach The StoryStatement of Financial Position

December 31, 2019________________________

ASSETS

See Independent Accountants' Compilation Report.2

Without Donor With Donor TotalRestrictions Restrictions

Donations 407,322$ -$ 407,322$ Interest income 90 - 90

Total Revenues and Support 407,412 - 407,412 Release from restriction 7,931 (7,931) -

Total Revenues and Support 415,343 (7,931) 407,412

Program services 302,898 - 302,898 Supporting activities 33,594 - 33,594

Total Expenses 336,492 - 336,492

Increase (Decrease) in Net Assets 78,851 (7,931) 70,920

Net assets, beginning of year 57,181 7,931 65,112

Net assets, end of year 136,032$ -$ 136,032$

Teach The StoryStatement of Activities and Changes in Net Assets

For the Year Ended December 31, 2019______________________

See Independent Accountants' Compilation Report.3

Program Services Supporting Activities Total Expenses

Mission ActivitiesManagement and

GeneralPayroll and related expenses 183,335$ -$ 183,335$ Accounting services - 2,814 2,814Insurance - 971 971Conference and seminar 27,436 52 27,488Supplies 1,737 1,416 3,153Bank charges 3,502 525 4,027Licenses and permits - 25 25Rent, utilities, and maintenance 7,708 2,720 10,428Information technology - 18,881 18,881Housing allowances 19,599 - 19,599 Foreign programs 41,392 - 41,392Meals 7,457 280 7,737Training 6,087 1,739 7,826Minor equipment - 3,754 3,754Travel expenses 3,557 - 3,557Medical expenses 339 - 339Postage 749 417 1,166

Total Expenses 302,898$ 33,594$ 336,492$

Teach The StoryStatement of Functional Expenses

For the Year Ended December 31, 2019______________________

See Independent Accountants' Compilation Report.4

Cash Flows From Operating ActivitiesIncrease in Net Assets 70,920$ Adjustments to reconcile the increase in net assets

to net cash provided by operating activities:Changes in assets and liabilities:

Accounts payable 3,221 Net Cash Provided by Operating Activities 74,141

Net Increase in Cash 74,141

Cash, beginning of year 71,109

Cash, end of year 145,250$

Teach The StoryStatement of Cash Flows

For the Year Ended December 31, 2019______________________

See Independent Accountants' Compilation Report.5

Teach The StoryNotes to the Financial Statements

December 31, 2019____________________

6

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESThe summary of significant accounting policies of Teach The Story (the Organization) is presented to assist in understanding the financial statements. The financial statements and notes are representations of the Organization’s management, who is responsible for their integrity and objectivity. These accounting policies conform to accrual basis accounting and have been consistently applied in the preparation of the financial statements.

Organization - The Organization was organized to teach impoverished church leaders to follow and exposit Christ through the Bible. Use of Estimates - Management uses estimates and assumptions in preparing financial statements. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and reported revenues and expenses. Significant estimates used in preparing these financial statements include those assumed in recording depreciation. It is at least reasonably possible that the significant estimates used will change within the next year. Actual results could vary from estimates.

Cash and Cash Equivalents - The Organization considers all short-term investments with an original maturity of ninety days or less to be cash equivalents. There were no cash equivalents atDecember 31, 2019. The Organization places its cash, which, at times, may exceed federally insuredlimits, with high-credit quality institutions. The Organization has not experienced any losses on such accounts.

Financial Statement Presentation - Net assets and revenues, expenses, gains, and losses areclassified based on the existence or absence of donor-imposed restrictions. Accordingly, net assets and changes therein are classified as follows:

Net Assets Without Donor Restrictions – Net assets not subject to donor-imposed stipulations.

Net Assets With Donor Restrictions – Net assets subject to donor-imposed stipulations that may or will be met by actions of the Organization and/or the passage of time.

The Organization did not have any net assets with donor restrictions as of December 31, 2019.

Functional Allocation of ExpensesThe financial statements report one expense that is attributable to more than one program or supporting function. Therefore, this expense requires allocation on a reasonable basis that is consistently applied. Contract services expense is allocated based on the nature of work performed.All other natural expense categories are using the key concept of direct relationship and are 100% charged to the benefiting program or supporting activities.

Teach The StoryNotes to the Financial Statements

December 31, 2019____________________

7

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)Income TaxesThe Organization is exempt from federal income taxes under Section 501(a) of the Internal Revenue Code (IRC) of 1986, as amended, as an organization described in Section 501(c)(3) of the IRC. TheOrganization has been classified as an organization that is not a private foundation under IRC Section 509(a)(2), and as such, contributions to the Organization qualify for deductions as charitablecontributions. Income generated from activities unrelated to the Organization’s exempt purpose is subject to tax under IRC Section 511.

Accounting for Uncertainty in Income TaxesManagement has concluded that any tax positions that would not meet the more-likely-than-not criterion of Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 740-10, Accounting for Income Taxes, would be immaterial to the financial statements taken as a whole. Accordingly, the accompanying financial statements do not include any provisionfor uncertain tax positions, and no related interest or penalties have been recorded in the statement of activities and changes in net assets or accrued in the statement of financial position. Federal and state tax returns of the entity are generally open to examination by the relevant taxing authorities for a period of three years from the date the returns are filed.

Recent Accounting Pronouncements In August 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-14, Presentation of Financial Statements of Not-for-Profit Entities, as an update to Accounting Standards Codification (ASC) 958, Not-for-Profit Entities. This update makes several improvements to current reporting requirements that address complexities in the use of the currently required three classes of net assets and enhance required disclosures related to donor restrictions of net assets. The updated guidance will result in a change in the classes of net assets reported on the face of the statement of financial position from three classes (unrestricted, temporarily restricted, and permanently restricted) to two classes (net assets without donor restrictions and net assets with donor restrictions).

The update also requires all not-for-profit entities to report expenses by function and by natural classification, either on the face of the financial statements or in the footnotes. Additional qualitative information about the methods used to allocate costs is also required to be disclosed. The update alsorequires all not-for-profit entities to disclose quantitative information that communicates the availability of the Organization’s financial assets at the statement of financial position date to meet cash needs for general expenditures within one year as well as qualitative information on how theOrganization manages its liquid resources available to meet cash needs for general expenditures within one year of the statement of financial position date.

The updated guidance was effective for annual periods beginning after December 15, 2017, and interim periods within fiscal years beginning after December 15, 2018. Early adoption waspermitted. The new guidance should be applied on a retrospective basis. The Organization adoptedthis update in fiscal year 2019. There was no material impact.

Teach The StoryNotes to the Financial Statements

December 31, 2019____________________

8

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)Recent Accounting Pronouncements (continued)In February 2016, the FASB issued ASU 2016-02, Leases, which will supersede the current lease requirements in ASC 840. The new standard requires lessees to recognize a right-of-use (ROU) asset and a related lease liability for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the statement of activities and changes in net assets. Currently, leases are classified as either capital or operating, with only capital leases recognized on the statement of financial position. The new standard is effective for private entities for annual periods beginning after December 15, 2020, and interim periods within fiscal years beginning after December 15, 2021. The Organization is currently assessing the impact on its statement of financial position but expects that the guidance will not result in significant changes to the statement of activities and changes in net assets.

In November 2016, the FASB issued ASU 2016-18, Restricted Cash, as an update to ASC 230, Statement of Cash Flows. This update requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents.

The updated guidance is effective for annual periods beginning after December 15, 2018, effective for 2019, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. The new guidance should be applied on a retrospective basis. The Organization adopted this update in 2019. The updated guidance resulted in a change in the statement of cash flow to include restricted cash in the total beginning and ending cash balance. No other material impact is expected in the financial statements.

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606),which will supersede the current revenue recognition requirements in Topic 605, Revenue Recognition. The ASU is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The ASU also requires additional disclosure about the nature, amount, timing, and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract.

In June 2018, the FASB issued ASU 2018-08, Not-for -Profit-Entities (Topic 958): Clarifying the Scope and the Accounting Guidance for Contributions Received and Contributions Made. The ASU provides guidance for treating receipts as exchange transactions under Topic 606 or as contributions under Topic 958, as well as clarifies the treatments of contributions as unconditional or conditional.

These statements are effective for annual periods beginning after December 31, 2018. The Organization adopted these updates in 2019. The Organization has determined it does not providegoods and services to customers and did not receive revenue under exchange transactions in 2019. The Organization also determined there were no conditional contributions received in 2019.

Teach The StoryNotes to the Financial Statements

December 31, 2019____________________

9

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)Date of Management’s ReviewSubsequent events have been evaluated for potential recognition or disclosure through March 30, 2020 which is the date the financial statements were available to be issued.

NOTE 2: LIQUIDITYAs part of the Organization’s liquidity management, it has a policy to structure its financial assets to be available as its general expenditures, liabilities and other obligations come due. The policy is that monthly revenues are to cover monthly expenses. Monthly revenues and expenditures are deposited in and deducted from the operating accounts.

All of the Organization’s financial assets of $145,200 are available within one year to meet cash needs for general expenditures.