1. Mennonite Church Canada Finance Report Fiscal Year Ending (FYE) 2009
Introduction:
My name is Randy Wiebe, Director of Finance and Chief Financial Officer. I am pleased to report to you on the financial statements of Mennonite Church Canada for the year ended January 31, 2009.

2. Executive Summary MC Canada total revenue Finance Dept.
MC Canada receives revenues from sales, services, fees, grants, partner subsidies, investments, bequests and most importantly from donations.
Donations from individuals, corporations and congregations are our largest source of income.
On this slide we see that total revenue fell compared to last year, some of which was expected and some of which wasn’t.

3. Audit Auditor: KPMG Clean audit
Complete Audited Financial Statements are available in a separate handout.
KPMG our auditing firm has stated in the Auditors’ Report on page 1 of the Financial Statements, that in their opinion our financial statements present fairly the financial position of MC Canada.

4. Statement of Financial Position
Unlike in previous years, no significant transactions or shifts took place on this statement.

5. Statement of Financial Position
Current assets:
Our cash position went down by just over $100,000 due to the downturn in revenue experienced at year end.
You will notice the impact this has on our current ratio later on.

6. Statement of Financial Position
Capital Assets:
Due to the annual amortization of capital assets, you will notice that these assets our down to $136,000. What this means is that most of our assets, including the buildings at 600 Shaftesbury Blvd. are older and will soon be fully depreciated and amortized.
Capital purchases incurred during the year were minor offsetting only a small portion of the amortization of existing assets.
On the flip side, the funds invested in capital assets and deferred contributions offsetting the capital assets continue a parallel decrease.

7. Statement of Financial Position
Internally Restricted Fund Balance:
The General Fund’s Internally Restricted Fund balance is $1,156,000, down by $178,000.
The negative year-end forced us to dip into the reserves held in the General Fund’s Internally Restricted Fund to offset an operating deficit.
The Financial Planning and Audit Committee (FPAC) has long determined that 25% or three months worth of MC Canada operations are the prudent amount of funds that need to be maintained in the General Fund’s internally restricted fund account.
This would amount to approximately $1,500,000 in the General Fund’s Internally Restricted General Fund.
Unfortunately this years results have taken us further away from that target.
Yet on a more positive note, our existing reserves do allow us to smooth out the ups and downs from one year to another. If no reserves existed, we would have had to make immediate cuts to offset both a downturn in donations and to offset last years deficit.

8. Statement of Financial Position
Current Ratio:
As I mentioned earlier, with the decrease in our cash position and with only an insignificant decrease in Accounts Payables, our current ratio has worsened.
This ratio has decreased from 3.04 : 1 in FYE 08 to 2.96 : 1 in FYE 09.
MC Canada financial policies require that a current ratio of 2:1 or higher should be maintained.
We are still in a good position.
Current liabilities are $671,906 ; $688,007 ; $701,112. ; $1,216,780. ; $ 1,077,161.
Current assets are $1,986,219 ; $2,092,470 ; $1,910,489. ; $2,150,981. ; $2,053,351.
Current Ratio as at Jan 31/09 is : 1.00
Current Ratio as at Jan 31/08 was : 1.00
Current Ratio as at Jan 31/07 was 2.73 : 1.00
Current Ratio as at Jan 31/06 was : 1.00
Current Ratio as at Jan 31/05 was : 1.00

9. Statement of Financial Position
Debt/Equity Ratio:
With the rapid amortization of our assets and equity, our debt/equity ratio has also weakened to 1.12 : 1 compared to 1.03 : 1 a year ago.

10. Statement of Operations
The Statement of Operations is found on page 4 of the Audited Financial Statements
The current format gives readers a clear picture of the three areas of MC Canada ministry.

11. Statement of Operations
Total Revenues:
As mentioned in the opening comments, total Revenues were $5,348,000, which is $522,000 less than the previous year.
The following slides should help you understand where the reduction in donation revenue took place.
MC Canada was also affected by investment losses, namely bequests and endowments invested at Mennonite Foundation of Canada experienced a 8.9% loss totaling $98,000.
On the Statement of Operations, this amount is partially offset by interest income of funds held in a savings account.

12. Statement of Operations
Donation Revenue:
Donation revenue for MC Canada core programs decreased from $3,732,000 in 2008 to $3,574,000 in 2009.
This came up after October 2008 because up to the end of October, we were still recording a positive variance.

13. Statement of Operations
Donation Revenue:
Donation revenue for MC Canada partner programs were also lower in 2009 compared to 2008.
This area has grown over the past years and has allowed MC Canada to partner in Ministry that we would otherwise not be able to facilitate.

14. Statement of Operations
Donation Revenue:
And donation revenue for MC Canada related organizations decreased from $360,000 in 2008 to 287,000 in 2009.

15. Donation Revenue by Source:
Donation revenue by source is an interesting picture; showing a relatively flat giving pattern over the past three years from Congregations.
Individual and Corporate giving continues to fluctuates the most, with a significant drop in FYE 09

16. Statement of Operations
MC Canada Total Expenses:
In terms of expenditures, MC Canada’s total expenditures were $5,546,000 in ’09 compared to $5,755,000 in ’08.
Remember this includes all funds expended by MC Canada including partner programs and funds designated for related organizations.
As we noticed the sudden downturn in donation revenue, all possible expenditures were delayed or not incurred to help offset what was appearing to become a deficit year.

17. Statement of Operations
We will now turn more specifically to funds spent on MC Canada programs, Partner Programs and Related Organizations
MC Canada’s expenditures are administered by different councils
Contributions to the Canadian Mennonite are included in Support Services expenses.
Grants to CMU and Mennonite World Conference are included in the General Board expense lines.
To view more details of the expenditures, please turn to pages 16 through 21 of the audited financial statements.

18. Statement of Operations
Christian Witness Council:

19. Statement of Operations
Christian Witness Council:
A slight decrease in expenses was experienced due to a part year vacancy in Director of Congregational Partnerships position.
International Ministries also came up with an under-expenditure, partially due to mission worker staffing.

20. Statement of Operations
Christian Formation Council:

21. Statement of Operations
Christian Formation Council:
The significant variance within the formation council is due to the Youth Assembly held in Abbotsford.
Youth Assemblies are planned for every second year resulting in significant variances from one year to the next.
Minor planning costs are incurred during the off-year, but the bulk of the youth assembly costs are incurred during the assembly year.

22. Statement of Operations
Support Services Council:

23. Statement of Operations
General Board:

24. Statement of Operations
General Board:
General Board expenses were very similar to FYE 08.
Without any staff transitions or significant unusual or unexpected transactions, no variances can be reported.

25. Statement of Operations
Partner Programs:

26. Statement of Operations
Partner Programs:
Although we couldn’t facilitate all of these programs without the work that is being done by MC Canada’s core programs, this is an area that is continuing to grow.
It is also the most flexible are with projects starting and ending without much notice.
Proper process is very important to insure that projects are carried out within policy and in line with external (Canada Revenue Agency) requirements.

27. Statement of Operations
Related Organization:

28. Statement of Operations
Related Organization:
We also continue to support and partner with related charitable organizations through direct contributions facilitating our ministry.
You will see the full list of related organizations on page 21 of the Audited financial statements.

29. Statement of Operations
At the bottom of our Statement of Operations we find the (deficiency) of revenue over expenses totaling $198,000 compared to an excess $152,000 last year.
This money was transferred from reserves either through the budget and part of last year’s plan or as a result of the need to cover our unforeseen operating deficit.

30. Thank you.
This financial report is different than what you have grown accustomed to over the last four or five years.
The worlds economic and financial situation has impacted us all one way or another.
At the same time, we continue to plan for the future adapting Program to the resources available.
Thank you to the congregations and individuals that make possible our collective.
Your support has carried Mennonite Church Canada in the past, present and into the future.