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18 FINANCIAL REPORT 2015 ARCHDIOCESE OF DENVER ARCHDIOCESE OF DENVER IRREVOCABLE REVOLVING FUND TRUST The Archdiocese of Denver Irrevocable Revolving Fund Trust allows parishes and other related entities within the territory of the archdiocese to obtain competitive terms for depositing, withdrawing and borrowing money. The trust currently loans money at the Wall Street Journal prime rate, which was 3.25 percent at June 30, 2015 and 2014, and does not charge any fees for loan origination costs. The spread between the lending rate and the rate paid to depositors was 2.75 percent for the years ended June 30, 2015 and 2014. Accordingly, the trust currently has and continues to pay a very competitive rate of .50 percent to depositors on their savings accounts held in the trust during the fiscal years 2015 and 2014. Such deposits have no restrictions as to terms, require no minimum balances or do not change early-withdrawal penalties. For the year ended June 30, 2015, the trust realized a net income of $352,265, as compared to the previous year which reflected a net income of $686,920. The decrease of approximately 0.50% in net income in fiscal 2015 is primarily aributed to an increase in the unrealized losses from the investment portfolio. Unrealized gains and losses are a reflection of the market value of the investments at a particular point in time, but not necessarily an indication of the actual gains or losses that will ultimately be realized when the investment either matures or is sold. The trust continues to invest in low-risk, conservative short-term fixed-income funds. The trust has no exposure to equity stock holdings. The trust's conservative investment strategy does not mean it is immune to market volatility, which can cause losses in a rising interest rate environment. The Management Corporation's Offices of the Controller and Parish Finance provided significant assistance to the Revolving Fund Trust management commiee. In doing so, the trust approved four new loans to parishes totaling $543,000 in fiscal 2015 as compared to five new loans totaling $4.6 million in fiscal 2014. STATEMENTS OF FINANCIAL POSITION As of June 30, 2015 and 2014 2015 2014 ASSETS: Cash & cash equivalents $8,727,336 $8,473,446 Prepaid expenses & other 266 266 Loans receivable 14,750,615 15,608,983 Investments 31,468,17 7 33,094,611 Total assets $54,946,394 $57,177,306 LIABILITIES: Due to related entities & other $19,013 $19,219 Saving deposits 48,379,546 50,962,517 Total liabilities 48,398,559 50,981,736 NET ASSETS: Unrestricted 6,547,835 6,195,570 Total liabilities & net assets $54,946,394 $57,177,306 STATEMENTS OF ACTIVITIES Years ended June 30, 2015 and 2014 2015 2014 INTEREST INCOME: Loans $521,685 $551,593 Investments 744,117 481,122 Total interest income 1,265,802 1,032,715 Interest expense 233,252 253,435 Net interest income 1,032,550 779,280 Realized and unrealized losses from investments, net (370,274) (42,408) OTHER EXPENSES, NET: Trustee fees 32,810 83,902 Parish assistance fund grants 142,500 25,000 Provision (credit) for loan losses 43,000 (149,000) General & administrative expenses 91,701 90,050 Total other expenses 310,011 49,952 Increase in net assets $352,265 $686,920 Holy Name Church in Steamboat Springs. Photo provided by Eidos Architects