Sanando la tierra internacional cafr 2010 revised (last)

Com mpara ative Annu ual Fiinanccial Reportts

Manag gement F Financialss

07/17/2011

TABLE E OF CON NTENT T

GEN NERA AL PA ASTO OR LET TTER R

SANANDO LA TIERRA INTERNACIONAL, INC 2124 N DEAN RD ORLANDO, FL 32817

To any interested party: Re: Iglesia Sanando La Tierra Internacional

I hereby certify and attest the financial statements for iglesia Sanando la Tierra Internacional, Inc., submitted for the years 2008 through 2011 are true and correct to the best of my knowledge.

I affirmatively state that I am the General Pastor of the church and its leadership.

Sincerely, Alex Castro- General Pastor

07/17/2011

ENGAGEMENT LETTER

Â

July 17, 2011 Sanando la Tierra Internacional, Inc. 2124 N. Dean Road Orlando, FL 32817

To the Administration, General Pastors and Board of Elder, The principal scope of this project is to present a financial picture of the Church last three years performance, as well as actual interim financials and next five years expectations. This presentation has been conducted on a pro bono basis as a contribution as a member of this church.

We also add to the scope of this presentation a feasibility of the project for a daily care facility. Emphasis on this project is sustainability and possible contributions to the general fund and for the construction of the new building.

The operation of a daily care facility is controlled by Florida Department of Children and Families. The agency required all facilities compliance with the standards provided on the Florida Administrative Code Child Care Standards also known as Chapter 65C-22. In addition to rigorous inspections are conducted regularly to assess compliance and reports are public documents available on the website of the Department of Children and Family.

In exchange the Department of Children and Families provided programs that subsidized the cost for the parents and provide different sources of income to the providers. The most known program is called 4C which provided payment for the caring fees charged by the facility. Other programs like Child care food programs and Head Start are also administered by DCF and provide also additional sources of income.

The principal source of revenue is through the public support and charges of fees for the daily care to the parents while other less used are through the use of grants from private and public sector for the benefit of the general public and the community that the church serve.

We cover also the ability to generated cash flow streams through the current institute called “Desarollo Explosivo” as a seven week continuous class for members with four levels and a three years Institute called “Instituto FM” to serve as a bridge to ordained new pastors and to expand the ministry.

Is my understanding that members of the board will like to pursuit the Institute as a credit postsecondary education in the near future.

The permits and license to open a postsecondary institution are governed by the Florida statues Title XLVIII known as K-20 Education code. Whether the Church decides to pursuits all the permits to allow the institute as a credited postsecondary school will have to be decided by the Board of Elders.

All revenues and expenses projected are based on judgment, other estimates are based on current operational unit cost from the church allocated to the space designed for these projects, never the less these projections are not pretended to be final numbers they are just the beginning of the planning process.

One recommendation once the person in charge of these project are selected is to overlook to the assumptions and submit recommendations to the management and board which facilitates the amendment of the projections and ends in the approval of this planning process and on the approval of a final budget.

I want to express my gratitude to allow me to work with the board and with the management to present this draft allowing the management to continue with the planning process.

Sincerely

Francisco G Catalan, Christian Solution Group, consultant Partner.

FINANCIALS: 1. Year End. 2. Interim.

3. Pro‐forma Projections.

4. Notes to Financials.

SANANDO LA TIERRA INTERNACIONAL, INC STATEMENT OF FINANCIAL POSITION (UNAUDITED) CONSOLIDATED DECEMBER 31, 2010, 2009 AND 2008 2010 ASSETS CURRENT ASSETS Cash and Cash Equivalent-Unrestricted Cash and Cash Equivalent-Restricted Inventory,Bookstore Prepaid Expense-Unrestricted Prepaid Expense-Restricted

$

Total Current Assets FIXED ASSETS Audio and Visual Equipment Music Equipment Office Equipment Furniture and Fixture Land and Buildings Less Accumulated Depreciation

OTHER ASSETS Construction in Progress, Note F

TOTAL ASSETS

2009

23,773 $ 53,762 -

27,908 $ 53,762 -

36,530 -

77,535

81,669

36,530

15,302 32,880 5,877 909,660 (66,090) 897,629

15,302 32,880 3,751 896,582 (35,759) 912,756

15,302 29,743 2,853 (7,414) 40,484

28,299

$

2008

-

1,003,463 $

-

994,426 $

77,014

- $ 510 510

-

LIABILITIES AND NET ASSETS CURRENT LIABILITIES Accounts Payable Accrued payroll Accrued vacation payroll Current Portion of Long Term Debt

$

1,493 1,493

$

LONG TERM LIABILITIES, Net of Current Portion, Note G

793,257

884,784

-

TOTAL LIABILITIES

794,750

885,294

-

FUND BALANCE Unrestricted, Note A Undesignated Unresticted

135,304 135,304

94,480 94,480

81,702 81,702

73,409

14,652

(4,688)

208,713

109,132

77,014

994,426 $

77,014

Temporarily Restricted TOTAL NET ASSETS

TOTAL LIABILITIES AND NET ASSETS

$

1,003,463 $ -

SANANDO LA TIERRA INTERNACIONAL, INC STATEMENT OF ACTIVITIES (UNAUDITED) CONSOLIDATED - YEARS ENDED DECEMBER 31, 2010, 2009 AND 2008 2010

UNRESTRICTED NET ASSETS REVENUE Contributions Contributions of investment property Investment Income

$

NET ASSETS RELEASED FROM RESTRICTIONS TOTAL UNRESTRICTED REVENUE AND SUPPORT

272,228 $ 1,525 273,753

2008

2009

195,401 $ 2,861 198,262

198,306 666 198,972

27,176

10,739

10,332

300,929

209,001

209,304

50,900 25,946 19,924 3,452 46,474 30,331 32,363 209,390

37,242 34,190 21,366 67,339 28,344 188,481

39,623 32,114 2,907 5,131 77,478 5,707 162,958

33,015 17,700 50,715

2,816 4,926 7,742

2,690 2,690

260,105

196,223

165,649

UNRESTRICTED EXPENSES Program Services Compensation Church Programs Church Programs-designated Funds Fellowship-outreach Benevolence-designated funds Building rental Debt Service Depreciation Lawsuit Settlement

Supporting Services: Note H Administrative Personnel

TOTAL UNRESTRICTED EXPENSE

CHANGE IN UNRESTRICTED NET ASSETS

$

TEMPORARILY RESTRICTED NET ASSETS Building offerings Custodial Income Net assets released from restrictions CHANGE IN TEMPORARILY RESTRICTED NET ASSETS

49,358 36,576 (27,176)

$

NET ASSETS BEGINNING OF YEAR NET ASSETS, END OF THE YEAR

40,825 $

58,757 $ 109,132

$

208,713 $

12,778 $

30,079 (10,739)

43,655

2,960 2,683 (10,332)

19,340 $

(4,688)

77,014

38,047

109,132 $

77,014

SANANDO LA TIERRA INTERNACIONAL, INC STATEMENT OF ACTIVITIES (UNAUDITED) CONSOLIDATED - ITERIM FOR THE SIX MONTH ENDING JUNE 30, 2011 2011

UNRESTRICTED NET ASSETS REVENUE Contributions Contributions of investment property Investment Income

$

NET ASSETS RELEASED FROM RESTRICTIONS

138,302 2,473 140,775 31,315

TOTAL UNRESTRICTED REVENUE AND SUPPORT

172,090

UNRESTRICTED EXPENSES Program Services Compensation Church Programs Church Programs-designated Funds Fellowship-outreach Benevolence-designated funds Building rental Debt Service Depreciation

32,715 42,917 23,582

23,523 15,166 137,903

Supporting Services: Note H Administrative Personnel

17,141 9,629 26,770

TOTAL UNRESTRICTED EXPENSE

CHANGE IN UNRESTRICTED NET ASSETS

164,673

$

TEMPORARILY RESTRICTED NET ASSETS Building offerings Custodial Income Net assets released from restrictions CHANGE IN TEMPORARILY RESTRICTED NET ASSETS

49,172 21,997 (31,315)

$

NET ASSETS BEGINNING OF YEAR NET ASSETS, END OF THE YEAR

7,417

39,854 208,713

$

255,984

SANANDO LA TIERRA INTERNACIONAL, INC PRO FORMA STATEMENT OF ACTIVITIES PRJECTIONS (UNAUDITED) CONSOLIDATED - YEARS ENDED DECEMBER 31, 2010, 2009 AND 2008 2015

UNRESTRICTED NET ASSETS REVENUE Contributions Contributions of investment property Investment Income

$

NET ASSETS RELEASED FROM RESTRICTIONS TOTAL UNRESTRICTED REVENUE AND SUPPORT

2014

2013

916,513 $ 2,624 919,137

2012

436,014 $ 2,548 438,561

2011

1,078,252 $ 2,784 1,081,036

1,003,599 $ 2,703 1,006,302

307,253 2,473 309,726

57,024

55,908

54,818

53,752

94,237

1,138,060

1,062,210

973,955

492,314

403,963

213,901 114,726 68,601 2,732 63,422 186,921 53,316 703,619

207,671 111,385 66,603 2,652 61,575 181,477 51,763 683,126

187,423 108,141 95,363 2,575 52,500 181,477 50,255 677,734

67,394 84,844 38,145 1,030 74,703 34,835 300,950

65,431 82,373 37,034 1,000 47,046 30,331 263,215

96,928 20,110 117,038

94,104 19,524 113,629

91,364 18,956 110,319

38,763 18,403 57,167

37,634 17,867 55,502

820,657

796,754

788,053

358,117

318,717

317,403 $

265,455 $

185,901 $

134,197 $

232,215 (57,024)

228,198 (55,908)

41,503 203,864 (54,818)

87,502 172,983 (53,752)

175,191 $

172,290 $

190,549 $

206,733 $

703,423

362,494

208,713

703,423 $

362,494

UNRESTRICTED EXPENSES Program Services Compensation Church Programs Church Programs-designated Funds Fellowship-outreach Benevolence-designated funds Building rental Debt Service Depreciation Lawsuit Settlement

Supporting Services: Note H Administrative Personnel

TOTAL UNRESTRICTED EXPENSE

CHANGE IN UNRESTRICTED NET ASSETS

$

TEMPORARILY RESTRICTED NET ASSETS Building offerings Custodial Income Net assets released from restrictions CHANGE IN TEMPORARILY RESTRICTED NET ASSETS

$

NET ASSETS BEGINNING OF YEAR NET ASSETS, END OF THE YEAR

$

1,517,619

1,079,874

2,010,213 $

1,517,619 $

1,079,874 $

85,246

98,344 64,427 (94,237)

68,535

SANANDO LA TIERRA INTERNACIONAL, INC. NOTES TO FINANCIAL STATEMENTS‐CONTINUED December 31, 2010, 2009 and 2008 Interim June 30, 2011 Pro‐forma Projections; December 31, 2011,2012,2013,2014 and 2015

NOTE A‐ NATURE OF ACTIVITIES AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NATURE OF ACTIVITIES

Iglesia Sanando la Tierra Internacional, Inc (the Church) was organized in 2006 and is a not for profit organization located in Orlando, Florida. The Church is dedicated to establishing and maintaining the public worship of God and to promoting the evangelical faith in accordance with the principle and doctrines of the Holy Scriptures. The Church is supported primarily through contributions from the congregation and provides various programs to its members and the community including Christian education, pastoral counseling, missions and other special programs to the youth and to the community.

Revenue Recognition Contributions received are recorded as unrestricted, temporarily unrestricted or permanently restricted support, depending of the existence and/or nature of any donor restrictions.

Contributions received with donor‐imposed restrictions that are met in the same year in which contributions are received are classified as unrestricted contributions.

All donors –restricted contributions are reported as an increase in temporarily or permanently restricted net assets depending on the nature of the restriction. When a restriction expires, temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions.

Contributed Services The church receives a substantial amount of services donated by its members in carrying out the church ministry. No amounts have been reflected in the financial statements for those services since they do not meet the criteria for recognition under SFAS No 116, Accounting for Contributions Received and Contributions made.

SANANDO LA TIERRA INTERNACIONAL, INC. NOTES TO FINANCIAL STATEMENTS‐CONTINUED

Property and Equipment

Property and Equipment acquisitions are recorded at cost or if donated at fair value at the date of the gift. Property and Equipment with a useful life of more than one year and an acquisition cost of $500.00 or more is capitalized, according to its actual accounting policies and procedures. Depreciation is provided over the estimated useful life of each depreciable asset and is computed using straight –line method over the estimated useful life of the equipment.

Amortization is included in depreciation and amortization in the financial statements. The estimated useful lives of property and equipment are as follows:

Land and improvements 5‐25 years Buildings 25‐40 years Equipment and vehicles 3‐20 years

Income Taxes

The Church is a not‐for‐profit religious organization exempt from income taxes under the provision of Section 501 © (3) of the Internal Revenue Code; thereto no provision for income taxes has been made in these financial statements.

Cash and Cash Equivalent

Cash and cash equivalents include all monies in banks and highly liquid investments with maturity dates of less than 12 month. The carrying value of the cash equivalents approximates fair value because of the short maturities.

Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles require management to make estimates and assumption that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.

SANANDO LA TIERRA INTERNACIONAL, INC. NOTES TO FINANCIAL STATEMENTS‐CONTINUED

NOTE B –FIXED ASSETS

Depreciation expense was $15,165.65 for the 6 month ended June 30, 2011.

Depreciation expense was $30,331 and $28,344 consecutively for the 12 months ended December 31, 2010 and 2009 and $5,707 for the 12 month ended December 31, 2008.

NOTE C‐ INTENTIONS TO GIVE

This year, the church asks the members of the congregations to submit pledges cards indicating the donations the members intend to give for the construction of the new building during upcoming year. The pledge cards clearly indicate that is to be used for the Church budgetary purpose only and that the members may rescind the pledge at any time. Since the pledges do not meet the criteria for revenue recognition under SFAS No 116 they are not reflected as contributions in the statement of activities until the pledge are collected.

NOTE D‐ FUNCTIONAL ALLOCATION OF EXPENSES The costs of providing the various programs and other activities have been summarized on a functional basis in the statement of activities. Accordingly certain cost have been allocated among the programs and supporting services benefited.

NOTE E‐LEASE OBLIGATIONS The church has no lease obligations.

NOTE F‐CONTRUCTION IN PROGRESS As the church is currently in the planning stages the amount shown in the Construction in Progress represents funds spent on pre construction cost.

NOTE G‐ LONG TERM DEBT The church Long Term Debt for the 12 Months ended December 31, 2010 and 2009 is as follows:

Note Payable to AG Solutions, bearing interest at 8.25%. The loan is payable in month installments of $4,278.46, principal and interest and is collateralized with a first mortgage

SANANDO LA TIERRA INTERNACIONAL, INC. NOTES TO FINANCIAL STATEMENTS‐CONTINUED

to the church property located at 2124 N Dean Road, Orlando, FL 32817 and a certificate of deposit.

Note Payable to AG Solutions, bearing interest at 8.25%. The loan is payable in month installments of $240.41, principal and interest.

Note Payable to the previous owner of the property, at no interest bearing. The loan is payable in month installments of $2,291.67, principal only and is collateralized with a second mortgage against the church property located at 2124 N Dean Road, Orlando, FL 32817.

NOTE H‐ LAWSUIT SETTLEMENT The amount settles for previous unexpired lease term for the church previous leased facility.

APPE ENDIX XES

Questtionn naire

REGIONS BANK BUSINESS / COMMUNITY BANKING

Religious Organization Questionnaire Organization Name: Sanando La Tierra Internacional, Inc.

Year Founded:

Address:

Telephone Number:

2124 N Dean Rd, Orlando, FL 32817

Time in Current Location: Organization Leader:

1 yr. 1/2

Tax ID Number:

Rev Alex Castro

2006 407-737-7771

20-4423342

Years with Organization:

Other Contact(s): 321-297-2726 Attendance information: ( last 3 years )

Since church was founded

Referral Y/N:

Attendance Information: (last 3 years) Year Average Attendance: Primary Services if Appl.

Other Services if Appl.

1 2010 300

2 2009 129

3 2008 95 Average Attendance in the most recent year:

Membership: Active Members Non Active Members Total # of Giving Units Seating Capacity

200

75-80

60

170

Number of Services Held

Age Profile 21-29 30-39 40-50 51+ Youth (13-20) Children and Preschool

120 85 60 40 30 30

Weekday Weekend Wednesday 2 on Sunday & Thursday

When was the current membership roll last purged?

Selected Financial Information: Operating Budget: Year

1 2010

2 2009

3 2008

Indebtedness: Creditor(s)

AG Financial (1st Mortgage) 204,615 OC Church(2nd Mortgage) 165,648 AG Financial-Unsecured

Total Due

Mo. Pymt.

4,278.46 359,687 Total Operating Revenues: 228,341 2,291.67 Total Operating Expenses: 260,105 196,223 240.41 Discretionary Exp. (included in TOE) 19,924 21,366 2,907 Building Fund Contributions: (not included in Tot. Oper.

49,358 2,960 Revs) If the Organization is part of a national affiliation or denomination, please describe the nature and level of support offered

through this relationship.

Describe all outreach programs, and detail Discretionary Expenses identified above? (examples: childcare, eldercare, community education, thrift store, etc.) Special Events: (Anniversary, Fellowship, Speakers) Children School, Youth Describe the trends in membership. 2010 membership double.

Please provide a brief history of the Organization, emphasizing important dates, including those associated with building programs. Daughter church of Iglesia el Calvario (4000 member church). Start stewardship campaign on the 26th of September. Our ministry is to win this generation for Jesus Christ through ministry outside the 4 walls, youth and kids.

Briefly describe the nature of the Organization's governance and provide a copy of Organization By-Laws, including those of affiliate organizations. Board of Elders pastoral staff and finally congregation. See bylaws enclosed.

Provide a list of those individuals (along with their address and social security number) that are authorized to borrow on behalf of the organization. See list enclosed.

Please provide a description of the proposed project, if applicable. 

 

For requests greater than $50,000, please attach detailed Receipts and Disbursements Statements for each of the past three years and a Balance Sheet for the most recent year end. Revenues should be identified as to pledges, plate offerings, events, or other revenues.

If the loan request is for construction/mini-perm financing, please attach a detailed breakdown of budgeted construction costs.

If a capital campaign has commenced, or is contemplated, and is to serve as a repayment source for the proposed loan, please provide detailed information regarding the campaign (i.e., start date, anticipated duration, how much has been pledged to date, pledges received/paid, pledge amounts by giving unit to identify concentrations) Campaign starts on September 26th, 2010, between leadership and congregation pledges adds to the amount of $369, 406 40.

__________________________________ Signature of Organization Leader

_________________________________ Signature of Business Banker

_______________ Date

______________ Date

SANANDO LA TIERRA INTERNACIONAL, INC. Matrix Table‐ General Assumptions for the Next Five Years

1. Increase 3% Non Discretionary Expenses 2. Day and After School Care 3. Institute FM/Explosive Development.

4. Increase in Attendance w/New Bldg.* 5. Increase of Interest Expense w/New Bldg.** 6. Increase in Pastoral Payroll.

2011

2012

2013

2014

2015

See Appendix

See Appendix

See Appendix

See Appendix

See Appendix

See Appendix

See Appendix

See Appendix

Start by Sept

Start by Sept

7. Add Occupancy expense for 2 new satellite church.

8. Recruit New Pastors.***

Start by January Start by March

Start by March

SANANDO LA TIERRA INTERNACIONAL, INC. Matrix Table‐ General Assumptions for the Next Five Years

Notes to the Assumptions:

   

*Average Unrestricted Contributions of $907.42 per year per attendant. *Restricted Contributions for Building of $164.52 per year per attendant. *Restricted Custodial Contributions of $121.62 per year per attendant. ** Assume an increase in loan interest rate for the building construction. See proyected amortization Schedule.  ***Increase actual Pastoral team salaries to comparable size churches and adjust the AP Salary to Full time.  *****New Pastors to recruit:  Worship Pastor.  Cells AP Pastor.  Missions AP Pastor.  Youth HTL Kid AP Pastor.

Sanando la Tierra Internacional Depreciation Methods Comparison 7/17/11 Gray cells are calculated for you. You do not need to enter anything in them.

Cost of property Recovery period (years) Declining balance type Declining balance rate Number of months in first year of service Salvage value

$1,200,000 40 200% 0.05 6 $50,000 Sanando la Tierra Internacional CONFIDENTIAL

Year

1 2 3 4 5 6 TOTAL

Straight Line Depreciation per year

Accumulated depreciation

$14,375 $28,750 $28,750 $28,750 $28,750 $1,020,625

$14,375 $43,125 $71,875 $100,625 $129,375 $1,150,000

$1,150,000

Start in October 1, 2012.

Sum-of-Years' Digits Depreciation per year

$28,049 $55,396 $53,994 $52,591 $51,189 $49,787 $291,006

Accumulated depreciation

$28,049 $83,445 $137,439 $190,030 $241,220 $291,006

Declining Balance Depreciation per year

$28,750 $56,063 $53,259 $50,596 $48,067 $913,265 $1,150,000

Accumulated depreciation

$28,750 $84,813 $138,072 $188,668 $236,735 $1,150,000

Loan Amortization Schedule

SANANDO LA TIERRA INTERNACIONAL

Enter values Loan amount $ 1,200,000.00 Annual interest rate Loan period in years Number of payments per year Start date of loan Optional extra payments

$

Total interest

Loan summary $ 9,440.40 360 360 $ $ 2,198,545.75

Principal

Interest

Scheduled payment

8.75 % 30 12 10/1/2012 -

Scheduled number of payments Actual number of payments Total early payments

Lender name: BANK

Pmt No. Payment Date 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36

Beginning Balance

11/1/2012 $ 1,200,000.00 12/1/2012 1,199,309.60 1/1/2013 1,198,614.16 2/1/2013 1,197,913.65 3/1/2013 1,197,208.03 4/1/2013 1,196,497.27 5/1/2013 1,195,781.32 6/1/2013 1,195,060.15 7/1/2013 1,194,333.73 8/1/2013 1,193,602.01 9/1/2013 1,192,864.95 10/1/2013 1,192,122.52 11/1/2013 1,191,374.67 12/1/2013 1,190,621.38 1/1/2014 1,189,862.59 2/1/2014 1,189,098.26 3/1/2014 1,188,328.37 4/1/2014 1,187,552.86 5/1/2014 1,186,771.69 6/1/2014 1,185,984.83 7/1/2014 1,185,192.23 8/1/2014 1,184,393.85 9/1/2014 1,183,589.65 10/1/2014 1,182,779.59 11/1/2014 1,181,963.62 12/1/2014 1,181,141.70 1/1/2015 1,180,313.78 2/1/2015 1,179,479.83 3/1/2015 1,178,639.80 4/1/2015 1,177,793.65 5/1/2015 1,176,941.32 6/1/2015 1,176,082.78 7/1/2015 1,175,217.98 8/1/2015 1,174,346.87 9/1/2015 1,173,469.41 10/1/2015 1,172,585.56

Scheduled Payment $

9,440.40 9,440.40 9,440.40 9,440.40 9,440.40 9,440.40 9,440.40 9,440.40 9,440.40 9,440.40 9,440.40 9,440.40 9,440.40 9,440.40 9,440.40 9,440.40 9,440.40 9,440.40 9,440.40 9,440.40 9,440.40 9,440.40 9,440.40 9,440.40 9,440.40 9,440.40 9,440.40 9,440.40 9,440.40 9,440.40 9,440.40 9,440.40 9,440.40 9,440.40 9,440.40 9,440.40

Extra Payment $

-

Total Payment $

9,440.40 9,440.40 9,440.40 9,440.40 9,440.40 9,440.40 9,440.40 9,440.40 9,440.40 9,440.40 9,440.40 9,440.40 9,440.40 9,440.40 9,440.40 9,440.40 9,440.40 9,440.40 9,440.40 9,440.40 9,440.40 9,440.40 9,440.40 9,440.40 9,440.40 9,440.40 9,440.40 9,440.40 9,440.40 9,440.40 9,440.40 9,440.40 9,440.40 9,440.40 9,440.40 9,440.40

$

690.40 695.44 700.51 705.62 710.76 715.95 721.17 726.42 731.72 737.06 742.43 747.84 753.30 758.79 764.32 769.90 775.51 781.17 786.86 792.60 798.38 804.20 810.06 815.97 821.92 827.91 833.95 840.03 846.16 852.33 858.54 864.80 871.11 877.46 883.86 890.30

$

8,750.00 8,744.97 8,739.89 8,734.79 8,729.64 8,724.46 8,719.24 8,713.98 8,708.68 8,703.35 8,697.97 8,692.56 8,687.11 8,681.61 8,676.08 8,670.51 8,664.89 8,659.24 8,653.54 8,647.81 8,642.03 8,636.21 8,630.34 8,624.43 8,618.48 8,612.49 8,606.45 8,600.37 8,594.25 8,588.08 8,581.86 8,575.60 8,569.30 8,562.95 8,556.55 8,550.10

Ending Balance $1,199,309.60 1,198,614.16 1,197,913.65 1,197,208.03 1,196,497.27 1,195,781.32 1,195,060.15 1,194,333.73 1,193,602.01 1,192,864.95 1,192,122.52 1,191,374.67 1,190,621.38 1,189,862.59 1,189,098.26 1,188,328.37 1,187,552.86 1,186,771.69 1,185,984.83 1,185,192.23 1,184,393.85 1,183,589.65 1,182,779.59 1,181,963.62 1,181,141.70 1,180,313.78 1,179,479.83 1,178,639.80 1,177,793.65 1,176,941.32 1,176,082.78 1,175,217.98 1,174,346.87 1,173,469.41 1,172,585.56 1,171,695.25

Cumulative Interest $

8,750.00 17,494.97 26,234.86 34,969.65 43,699.29 52,423.75 61,142.99 69,856.97 78,565.65 87,269.00 95,966.97 104,659.53 113,346.64 122,028.25 130,704.34 139,374.84 148,039.74 156,698.98 165,352.52 174,000.33 182,642.35 191,278.56 199,908.90 208,533.33 217,151.82 225,764.31 234,370.77 242,971.14 251,565.39 260,153.47 268,735.33 277,310.93 285,880.23 294,443.18 302,999.73 311,549.83

SANANDO LA TIERRA INTERNACIONAL, INC.

APPENDIX A-PROJECT FOR DAY CARE FACILITY

Prepared by: Franco G Catalรกn, MBA, EA, CGFO For the Administration and Board of Elders www.angelsoforlando.intuitwebsites.com (sample website)

SANANDO LA TIERRA INTERNACIONAL, INC PROJECT DRAFT BUDGET & PROJECTIONS FOR THE NEXT FIVE YEAR ENDING ON DECEMBER 2011 THRU 2015 TABLE OF CONTENT LETTER TO THE ADMINISTRATION AND BOARD OF ELDER PROJECTED SOURCES OF REVENUES UNRESTRICTED PUBLIC SUPPORT RESTRICTED PUBLIC SUPPORT CONTRIBUTIONS AND DONATIONS DEPARTMENT OF FAMILY AND CHILDREN UNITED WAY OTHER INCOME ASSUMPTION FOR EXPENSES SLARIES AND WAGES PARENT AND PROVIDER ASSISTANCE OCCUPANCY PROFESSIONAL FEES MIS SUPPLIES IN KIND EXPENSES PRINTING AND PUBLICATIONS STAFF DEVELOPMENT AND TRAINNING POSTAGE & SHIPPING

TABLE OF CONTENT

DUES SUSCRIPTIONS AND ADVERTISING EQUIPMENT RENT & REPAIRS INSURANCE TRAVEL, LODGING AND MEALS OTHER EXPENSES START UP COST AND AMORTIZATION SUBCONTRACTOR DEPRECIATION DEBT SERVICE PROJECTED INCOME AND EXPENSE STATEMENT MANAGEMENT RECOMMENDATION APPENDIXES FROM DEPARTMENT OF CHILDREN AND FAMILIES APPENDIX A: FLORIDA ADMINISTRATIVE CODE. APPENDIX B: ADDITIONAL QUALITY INDICATORS APPENDIX C: APPLICATION FOR A LICENSE TO OPERATE A CHILD CARE FACILITY/ FORM CF-FSP 5017 APPENDIX D: DIRECTOR CREDENTIAL AND RENEWAL APPENDIX E: ADDITIONAL QUALITY INDICATORS APPENDIX F: TWO CLOSEST COMPETITORS APPENDIXES FROM DEPARTMENT OF FOOD AND DRUG ADMINISTRATION APPENDIXES FROM AVAILABLE MARKET SOFTWARE FOR DAILY CARE MANAGEMENT

OBJECTIVES FOR THE PROJECT Community and Economic Development This project has two main objectives, first partnering the community we serve

assisting with their children care under a loving and Christian atmosphere and second of all is the job creation part. We believe the jobs creation will serve to facilitate the economic stability and assistance to needy family.

PROJECTED SOURCES OF REVENUES Unrestricted & Restricted Public Support This represents the fees charged as fees for daily care of the children which are not constraint to any specific use on the facility. The collections may be used to pay any of the operational cost of the facility.

The estimated percentage for public support is as follows:

Sponsors

2011

2012

2013

2014

2015

Public

60%

40%

30%

20%

20%

4-C

40%

40%

40%

40%

50%

20%

20%

25%

25%

United Way

5%

5%

5%

Grants

5%

5%

0%

5%

0%

100%

100%

Head Start

Debts Total

100%

100%

100%

Based on the conversations with the management and the general pastors they anticipated that the daily and after school care facility will use approximately 1,200 square feet of living space from the building for this activity.

The fees anticipated for the daily and after school facility are as follows:

Clients

Age

Fees

Estimate

Estimate

Estimate per

per

of Clients

Monthly

Year

Clients Infants

1-12 Mth

$199

3

$ 2.388

$ 28,656

Toddlers

12-24 Mth $150

3

$ 1,800

$ 21,600

Children

2 years

$125

6

$ 3,000

$ 36,000

Children

3 years

$105

6

$ 2,520

$ 30,240

Children

4 years

$95

6

$ 2,280

$ 27,360

Children

5 years

$85

6

$ 2,040

$ 24,480

$75

10

$ 3,000

$ 36,000

30

$17,028

$204,336

After School Totals

Two additional assumptions for the planning for these activities: first of all is that we assume an increase of 3% at least annually from base year starting on 2013 for Public Support and second of all we are assuming that subsidized activities allocation will increase each year through the department of family and children (DFC).

EXPENSES Salaries and Wages This section covers the expected staff using the same model provided by DCF on their website as shown on the table below: Positions

Wages

Weekly

Monthly

Yearly

Manager/Teacher

$400

$1.733

$20,796

Teacher # 1

$320

$1,387

$16,644

Teacher # 2

$290

$1,257

$15,084

Teacher # 3

$270

$1,170

$14,040

Aides (3)

$612

$2,652

$31,824

Aide (1)

$204

$884

$10,608

The table below shows the estimated cost for next five years:

Position

2011

2012

2013

2014

2015

Manager/Teacher $20,796

$21,420

$22,062

$22,724

$23,406

Teacher # 1

$16,644

$17,143

$17,658

$18,187

$18,773

Teacher # 2

$15,084

$15,537

$16,003

$16,483

$16,977

Teacher # 3

$14,040

$14,461

$14,895

$15,342

$15,802

Aides

$21,216

$21,853

$30,071

$30,911

$31,838

Total Wages

$87,790

$90,423

$100,689

$103,647

$106,796

Benefits

$3,512

$3,617

$4,028

$4,146

$4,272

Payroll Taxes

$11,851

$12,207

$13,593

$13,992

$14,417

$103,153

$106,247

$118,310

$121,785

$125,485

Total Wages,

benefits & taxes

Parent and Providers Assistance This may be used for reimbursements to parents and providers for products provided for the general use of the care facility.

Occupancy This category use estimates based on the following actual square feet expenses for the occupancy applied to the expected use of 1,200 sf:

AVG

2011

2012

2013

2014

2015

MTH BLDG & GROUND MAINT Mortgage

$6,646

Security Alarm

$36

Cleaning Supplies

$24

Pest Control

$54

Grounds Maint.

$71

UTILITIES Telephone\Internet $269

Electricity

$502

Water

$109

Waste

$97

Total

$26,847 $27,652 $28,482 $29,336 $30,217

Church Square Ft

4,188

Cost per Square Ft

$1.86

Professional Fees Under this category fall any special assignments that may be need such as legal and accounting fees for contract reviewed and letters needed or opinions for this activity.

MIS Our actual church management software do not have capabilities for the management of a Daily Care Facility, therefore we includes as an Appendix 3 options to open the discussion over this area.

In Kind Expenses.

Usually this category is used for labor expenses as matching requirements for the grants.

Printing and Publications.

The amount on this category is assumed as ½ of 1% of the revenues for each of the five years.

Staff Development & Training.

This category is mostly driven by DCF requirements for the staff. We assumed To be as much as 1% of the total salaries and benefits.

Postage & Shipping A minimum amount was assigned to allow the management to keep a good communication at all times.

Dues, subscription and Advertising.

Keep insight from professional organization that enhances the services and exposure of the care facility is necessary to maintain growth and stability. A minimum amount is assigned for that purpose.

Equipment Rent and Repairs.

Keep the necessary equipment and maintain its conditions are essential for the operation of the daily care facility.

Insurance.

This category is essential to the protection of the project and the church and consists of an estimate increase of the liability insurance due to the increase of the exposure.

Travel, lodging and Meals.

Although this category is frozen for now it was keep open for future assistance to the National Industry Forum sponsor by professional organization on the Industry. For now we recommended assistance to local activities only.

Other Expenses.

Startup cost.

The actual information highlight an investment of tiles and other necessary

investments to be made necessary to relocate the kitchen and condition the space for the children

Subcontractor.

This category was mainly projected to provide security to the children and a cost of $500.00 per month was assumed for that purpose.

Depreciation.

The amount estimated for new equipment’s, including a playground and materials which aggregated value is $500.00 or more is $5,000.00 It is assumed to be usable for five years and to be charged a usage fee also known as depreciation of the equipment $1,000.00 per year.

Debt Service.

This option is kept open to be used when working capital is needed.

Casa de Adoracion Sanando la Tierra Day & After School Care Projected Income and Expense Statement For the twelve month ending YTD 31-Dec-11 INCOME REVENUE Public Support Revenue and Other Support: Unrestricted Public Support $ Total Unrestricted Income Restricted Public Support Contributions Department of Family and Children Head Start ( Dept of Education) United Way Grants Net assets released from Restrictions Total Public Support, Rev & Other

30,650 $ 30,650

81,734 $ 81,734

20,434

81,734 40,867

20,434

$

EXPENSES SALARIES & WAGES Salaries and Wages Employee Benefits Payroll Taxes Total Salaries Expenses GENERAL & ADMINISTRATIVE EXPENSES Parent and provider assistance Occupancy Professional Fees MIS Expense Supplies In Kind Expenses Printing and Publications Staff Development,training and meetings Postage & Shipping Dues, subscriptions and advertising Equipment, Rent & Repairs Insurance Travel, lodging and meals Other Expenses Subcontractor Depreciation Debt Service TOTAL GEN & ADMIN EXPENSES TOTAL PROGRAM EXPENSES TRANSFERS Transfers from General Fund Transfers to General Fund Total Transfers INCOME ADDED VALUE

YTD 31-Dec-13

$

YTD 31-Dec-14

63,140 $ 63,140

YTD 31-Dec-15

43,319 $ 43,319

81,734 51,084 10,217 10,217

44,545 44,545

122,602

81,734 40,867 10,217 10,217 143,035

153,252

102,168 51,084 10,217 163,469

-

-

10,217 10,217

-

-

Other Income Interest Income Debts Proceeds Total Other Income TOTAL INCOME

YTD 31-Dec-12

51,084 $

204,336 $

206,175 $

206,788 $

208,014

21,948 878 2,963 25,788

90,423 3,617 12,207 106,247

100,689 4,028 13,593 118,310

103,647 4,146 13,992 121,785

106,796 4,272 14,417 125,485

100 4,464 600 1,895 3,940 64 258 400 300 200 1,500 600 1,500 250 16,071

100 18,392 600 200 15,760 255 1,062 412 309 206 6,000 600 6,000 1,000 50,896

100 18,943 600 200 15,902 263 1,183 424 318 212 6,180 600 6,000 1,000 51,926

100 19,512 600 200 15,949 271 1,218 437 328 219 6,365 600 6,000 1,000 3,567 56,366

100 20,097 600 200 16,044 279 1,255 450 338 225 6,556 600 6,000 1,000 3,567 57,311

41,859

157,143

170,235

178,151

182,796

-

-

-

-

-

9,225 $

47,193 $

UNAUDITED

35,940 $

28,637 $

25,218

SANAN NDO LA A TIERRA INTTERNAC CIONA AL, INC..

AP PPENDIX B‐PROJECT FOR D DESARROLLO EXPLLOSIVO E INSTITUTO

Prepared by: Fran nco G Cataláán, MBA, EA A, CGFO For the Adminisstration and d Board of Ellders

SANANDO LA TIERRA INTERNACIONAL, INC PROJECT DRAFT BUDGET & PROJECTIONS FOR THE NEXT FIVE YEAR ENDING ON DECEMBER 2011 THRU 2015

TABLE OF CONTENT

LETTER TO THE ADMINISTRATION AND BOARD OF ELDER PROJECTED SOURCES OF REVENUES UNRESTRICTED PUBLIC SUPPORT RESTRICTED PUBLIC SUPPORT CONTRIBUTIONS AND DONATIONS OTHER INCOME ASSUMPTION FOR EXPENSES OCCUPANCY PROFESSIONAL FEES MIS SUPPLIES IN KIND EXPENSES PRINTING AND PUBLICATIONS STAFF DEVELOPMENT AND TRAINNING POSTAGE & SHIPPING

TABLE OF CONTENT

DUES SUSCRIPTIONS AND ADVERTISING EQUIPMENT RENT & REPAIRS INSURANCE TRAVEL, LODGING AND MEALS OTHER EXPENSES START UP COST AND AMORTIZATION SUBCONTRACTOR DEPRECIATION DEBT SERVICE PROJECTED INCOME AND EXPENSE STATEMENT MANAGEMENT RECOMMENDATION

OB BJECTIV VES FO OR THEE PROJJECT Church h Goverrnance and Faith Devvelopmeent These projects has few main n objectivees; one is tto provide the development an nd opportun nity to ourr memberss and the ccommunityy we servee with the word of th he Holy Spirrit and with h teachings under a fformal currriculum th hat allows all membe ers and the neighborh hood to developed their poteential and d allow us the church governan nce to properly ordaain those that would d serve as pastors an nd leaders in our churcch and in ssatellites afffiliates.

These projects also o serve as tthe bridgee for jobs ccreation ass future paastors will b be working w with our organization.

PRO OJECTTED SO OURCES OF R REVEN NUES Unresttricted & Restricted P Public SSupportt This represents the e tuition an nd applicattion fees charged forr the studeents who w will be atten nding to the three year Instiitute scho ool and th he membeers who are currentlyy assisting to the acctual 7 weeeks institu ute called “Desarollo o Explosivo” and for the Institutte FM proje ected. Thee collection ns may be used to paay any of the operation nal cost off the existin ng and new w facility.

The estim mated perccentage for public suupport is ass follows:

Sponssors

2011

2012

2013

2014

2015

Publicc

100%

100%

955%

95%

95%

Grantts

55%

5%

5%

Tottal

100%

100%

1000%

100%

100% %

Based on the convversations with the managem ment, general pasto ors and o our person nal observation ns we anticcipated thaat both Insstitute’s w will use app proximately 2,000 sq quare feet of livving space e from the building fo or this activvity most likely for tw wo day of tthe week.

The fees anticipated ffor the dailly and afte er school faacility are aas follows:

Clien nts

Applicattion Tuition

Estim mate

Esstimate Estimate p per

Feess

Fee es

Stud dents

M Monthly

Year

$10

$1 10

330

$$ 1,167

$ 14,000 0

$50

$6 60

225

$$ 2,292

$ 27,500 0

Deesarollo Explosivo Gro oups I, II, IIII, IV Insstituto‐FM

Totals

555

$$ 3,458 $ 41,500 0

PRO OJECTTED USSES OFF FUND DS EXP PENSEES Salarie es and W Wages Both Insttitutes courses are to ough by vo oluntary insstructors aat least for the next five yearss.

Memb bers Asssistance e This mayy be used fo or reimburrsements ffrom members and p providers fo or productts provided for the ge eneral use of the Insttitute.

Occup pancy This category use e estimates b based on thhe followin ng actual ssquare feett expensess for the occcupancy aapplied to the expectted use of 2,000 sf:

AVG

201 11

20112

20113

201 14

201 15

MTTH BLDG & GROUND MA AINT

Morttgage

$6,646

Securrity Alarm

$ 36

Clean ning Supplies

$ 24

Pest Control

$ 54

Grounds Maintt.

$ 71

U UTILITIES

Telep phone\Inte ernet $ 2 269

Electricity

$ 5 502

Wate er

$ 1 109

Wastte

$ 97

Total

$7,808 $11,904 $12,261 $12,629 $13,008 $13,398

Churcch Square Ft

4,188

Cost per Square e Ft

$1.86

Pro ofessional Fee es Und der this cattegory fall any speciaal assignmeents that m may be neeed such as legal and d accountin ng fees forr contract reviewed and letterrs needed or opinion ns for this activity.

MIIS Ourr actual ch hurch man nagement software do not h have capabilities for the man nagement of a Dailyy Care Facility, therefore we in ncludes as an Appen ndix 3 options to ope en the disccussion ove er this areaa.

In Kind Exxpensess.

Usu ually this caategory is u used for labor expennses as mattching requirements for the grants.

Priinting a and Pub blication ns.

The e amount o on this cate egory is asssumed as ½ ½ of 1% off the reven nues for each of the five years.

Sta aff Deve elopme ent & Trraining..

Thiss category is mostly d driven by D DCF requireements for the staff.. We assum med To b be as much h as 1% of he total sasalaries andd benefits..

Po ostage & & Shipp ping A m minimum am mount wass assigned to allow the manageement to kkeep a goo od com mmunicatio on at all tim mes.

Du ues, sub bscriptio on and Adverttising.

Kee ep insight from professional orgganization that enhances the seervices and d exposure of th he care faccility is neccessary to m maintain ggrowth and d stability. A min nimum amo ount is assigned for tthat purpo ose.

Equipmen nt Rent and Re epairs.

Kee ep the nece essary equipment and maintainn its condittions are eessential fo or the ope eration of tthe daily caare facility.

Inssurance e.

Thiss category is essential to the p protection of the pro oject and tthe church h and consists of an estimate increase of the liability insuran nce due to the increaase of the exposure.

Tra avel, lodging aand Meaals.

Alth hough this category iis frozen fo or now it w was keep o open for fu uture assisttance to the t Nation nal Industrry Forum sponsor s byy professio onal organ nization on n the Indu ustry. For now we re ecommend ded assistaance to loccal activitiees only.

Other Exp penses.

Subcontra actor.

Non ne subconttractor at tthis point.

De epreciattion.

The e amount estimated e for new equipment e t’s, includiing softwaare, audiovvisual and d materials which agggregated value is $5000.00 or more is $5,0 000.00

It iss assumed to be usaable for fivve years and to be ccharged a usage feee also kno own as dep preciation o of the equiipment $1,000.00 peer year.

De ebt Servvice.

Thiss option is not contem mplated att this time for this prroject.

Casa de Adoracion Sanando la Tierra Desarrollo Explosivo & Institute FM Projected Income and Expense Statement For the twelve month ending YTD 31-Dec-11 INCOME REVENUE Public Support Revenue and Other Support: Unrestricted Public Support $ Total Unrestricted Income Restricted Public Support Contributions Grants Net assets released from Restrictions Total Public Support, Rev & Other Other Income Interest Income Debts Proceeds Total Other Income TOTAL INCOME

10,375 $ 10,375

GENERAL & ADMINISTRATIVE EXPENSES Members and provider assistance Occupancy Professional Fees MIS Expense Supplies In Kind Expenses Printing and Publications Staff Development,training and meetings Postage & Shipping Dues, subscriptions and advertising Equipment, Rent & Repairs Insurance Travel, lodging and meals Other Expenses Subcontractor Depreciation Debt Service TOTAL GEN & ADMIN EXPENSES TOTAL PROGRAM EXPENSES TRANSFERS Transfers from General Fund Transfers to General Fund Total Transfers $

41,500 $ 41,500

YTD 31-Dec-14

39,425 $ 39,425

-

-

-

2,075 2,075

-

-

$

YTD 31-Dec-13

-

-

EXPENSES SALARIES & WAGES Salaries and Wages Employee Benefits Payroll Taxes Total Salaries Expenses

INCOME ADDED VALUE

YTD 31-Dec-12

10,375 $

41,500 $

41,500 $

YTD 31-Dec-15

39,425 $ 39,425

2,075

39,425 39,425

2,075

2,075 2,075

-

-

41,500 $

41,500

-

-

-

-

-

100 2,976 400 1,500 100 13 400 300 200 267 600 250 7,106

100 12,261 400 200 415 255 412 309 206 1,069 600 1,000 17,227

100 12,629 400 200 427 263 424 318 212 1,101 600 1,000 17,675

100 13,008 400 200 440 271 437 328 219 1,134 600 1,000 18,136

100 13,398 400 200 453 279 450 338 225 1,168 600 1,000 18,611

7,106

17,227

17,675

18,136

18,611

-

-

-

-

-

3,269 $

24,273 $

23,825 $

UNAUDITED

23,364 $

22,889