1. Mennonite Church Canada Fiscal Year Ending (FYE) 2011
Tuesday, April 23, 2019
Mennonite Church Canada
Budget Plan:
Fiscal Year Ending (FYE) 2011
Introduction:
You will find the budget for FYE ’11 on pages 49 to 53 of your report book. We have again shown you two different reporting formats of the budget. The version on page 52 shows gross actual revenue and expenses for FYE ’10 with two comparative columns, Budget for FYE ’10 and proposed budget for FYE ’11.
The version on page 50 has the recognized deferred contributions and self generated revenue credited to the corresponding expenditure line, thus reporting net program expenditures. The column left of the grey vertical bar shows the gross budget for FYE ’11 for easy comparison of the two formats.
The budget on page 49 is the more summarized version of the other two.
When commenting on the Revenue Budget, I will be referring to gross numbers (page 52), when commenting on expenses I will be referring to net expenditures (page 50).
Last fall as we started the budgeting process, we were encouraged by our YTD donation numbers. The way donation income was tracking, we were projecting income to have regained what it lost during the peak of the financial crisis. But then at year end our tally of donation income didn’t come in as expected.
The year-end result forced us to make some last minute adjustments.
If donation revenue does not increase, we will be forced to make further, permanent adjustments.
Difficult decision lie ahead.
Since the Consumer Price Index was -0.9% for the period that our budget is based on, there was no adjustment for salaries.
However, as per Board decision requiring MC Canada to bring their salaries more in line with Pastors salaries and similar charitable organizations, a 2% adjustment was included in the 2011 Budget.
Looking Ahead:

2. Gross Revenue Comparison
FYE Jan 11 GROSS Budget
FYE Jan 10 GROSS Actual
FYE Jan 10 GROSS Budget
Individual & Corporate Donations
865,524
704,752
Church Donations
2,697,982
2,844,558
General Bequest
Sub-total Donation Income
3,563,506
3,549,310
Recognized Deferred Contributions
90,206
66,321
63,510
Other Income
424,577
573,042
587,608
Sub-total Program Income
4,078,289
4,202,869
4,200,428
Partner Program Income
846,941
790,640
754,720
Related Organization Income
415,000
376,237
332,500
TOTAL INCOME
5,340,230
5,369,746
5,295,774
Tuesday, April 23, 2019
Revenue Comparison:
But first let us express our gratitude to you, and the congregations you represent, for your generosity to the ministry and work we are able to do together. Over all, donation and bequest income appears lower than the year before, but when reviewing donations only, we see that giving has slightly exceeded last years actual due to the increase in Individual & Corporate Donations.
On the other hand, Church donations decreased significantly compared to projections and the year before. We have received indications from some churches in Eastern Canada that further reductions can be expected.
I wonder, if congregations that are in a stronger position want to pick up some of what is being lost.
We continue to respond with program adjustments at home and abroad, based on the generosity of your support.
Let us now move into a more detailed review of the budget.
Other income of $424,577 is anticipated as follows:
Looking Ahead:

3. Tuesday, April 23, 2019 Looking Ahead: 2007-08 Other budgeted income
$220,499 from a variety of fees, sales, administration fees, subscriptions, etc.
$100,565 from partner subsidies mostly from MMN.
$103, 513 from interest and investment income.
Looking Ahead:

4. TOTAL Expenses 4,860,198 4,539,816 4,640,607 MC Canada 1,757,775
Tuesday, April 23, 2019
Net Expenses Comparison
MC Canada
FYE Jan-11 NET Annual Budget
FYE Jan 10 NET Actual
FYE Jan-10 NET Annual Budget
Witness Council
1,757,775
1,687,836
1,836,543
Formation Council
411,092
384,488
405,646
Support Services Council
743,707
595,883
718,507
General Board
360,883
419,720
408,246
CMU
321,500
313,021
335,580
Partner Program
850,241
762,631
757,420
Related Organization
415,000
376,237
332,500
(-) less Deferred Expenses
(153,835)
TOTAL Expenses
4,860,198
4,539,816
4,640,607
Net expenditure budgets were developed with small reductions in mind.
Although the Support Services Council has increased its expenditures, after transfers from reserve, I can assure you that except for the Formation Council, all other Councils and General Board have reduced their net budget.
The largest reduction impacted the Witness Council
Looking Ahead:

5. TOTAL Witness Council Expense 1,757,775 1,687,836 1,836,543
Tuesday, April 23, 2019
Net Expenses Comparison Christian Witness
FYE Jan-11 NET Annual Budget
FYE Jan 10 NET Actual
FYE Jan-10 NET Annual Budget
Executive Office
96,315
113,230
120,022
Congregational Partnerships
191,183
133,123
151,898
National Ministries Admin
10,970
9,076
11,296
Multi-Cultural Ministry
42,431
42,593
42,817
Native Ministries
117,121
115,091
124,993
International Ministries
1,299,755
1,274,723
1,385,517
TOTAL Witness Council Expense
1,757,775
1,687,836
1,836,543
Net expenses budgeted for Christian Witness Council are $1,758,000 compared to a budget of $1,837,000 last year, and actual expenditures last year of $1,688,000.
This is a reduction of just under $80,000, all of which basically came from International Ministries.
Looking Ahead:

6. TOTAL Witness Council Expense 1,757,775 1,687,836 1,836,543
Tuesday, April 23, 2019
Net Expenses Comparison Christian Witness
FYE Jan-11 NET Annual Budget
FYE Jan 10 NET Actual
FYE Jan-10 NET Annual Budget
Executive Office
96,315
113,230
120,022
Congregational Partnerships
191,183
133,123
151,898
National Ministries Admin
10,970
9,076
11,296
Multi-Cultural Ministry
42,431
42,593
42,817
Native Ministries
117,121
115,091
124,993
International Ministries
1,299,755
1,274,723
1,385,517
TOTAL Witness Council Expense
1,757,775
1,687,836
1,836,543
A significant portion of the Witness Budget is spent in International Ministries.
As a result of several mission worker terms having recently ended, International Ministries is in the middle of a reevaluation process.
We would love to fill or reassign these and other positions, but your support is needed to accomplish this.
Looking Ahead:

7. Tuesday, April 23, 2019
International Ministries Breakdown by Region
FYE Jan-11 NET Annual Budget
FYE Jan 10 NET Actual
FYE Jan-10 NET Annual Budget
Africa
420,222
476,038
490,179
Asia & Middle East
695,544
595,227
649,467
Europe
62,466
83,475
125,325
Latin America
121,523
119,983
120,546
TOTAL
1,299,755
1,274,723
1,385,517
The Regional Breakdown is as shown on this slide.
The current years budget includes:
$420,000 for Africa
$696,000 for Asia & Middle East
$62,000 for Europe, and
$122,000 for Latin America
Looking Ahead:

8. 411,092 384,488 405,646 TOTAL Formation Expenses 163,866 151,257
Tuesday, April 23, 2019
Net Expenses Comparison – Christian Formation
FYE Jan-11 NET Annual Budget
FYE Jan 10 NET Actual
FYE Jan-10 NET Annual Budget
Executive Office
163,866
151,257
160,350
Resource Center
79,276
84,076
78,996
Min. & Cong. Leadership
82,180
71,179
88,200
Youth Ministry
26,840
26,886
28,100
Youth Assembly
8,000
5,791
Young Adult Ministry
542
Education & Nurture Ministries
50,930
44,757
50,000
TOTAL Formation Expenses
411,092
384,488
405,646
Net expenses budgeted for the Christian Formation Council are $411,000 for the current year compared to a budget of $406,000 last year, and actual expenditures last year of $384,000.
This council was the only department to receive a budget increase, although small as it was.
The expenditures have been shaved away to the point where further cuts will force us to cut a program line.
Looking Ahead:

9. Tuesday, April 23, 2019
Net Expenses Comparison – Support Services
FYE Jan-11 NET Annual Budget
FYE Jan 10 NET Actual
FYE Jan-10 NET Annual Budget
Administration
257,990
203,509
248,029
Annual Assembly
(24,705)
2,016
(430)
Communications
218,971
161,911
165,576
Development
113,807
54,286
131,171
Canadian Mennonite
177,644
174,161
TOTAL Support Services Expenses
743,707
595,883
718,507
Net expenses budgeted for the Support Services Council are $744,000 compared to a budget of $718,000 last year, and actual expenditures last year of $596,000.
The vacancies in the Resource Development position continue being a major source of under-expenditure.
The communications budget has been increased to support the birth of the Engagement Council.
The Engagement Council will include Development, Communications and Congregational Partnership costs.
Looking Ahead:

10. TOTAL General Board Expense 682,383 732,741 743,826
Tuesday, April 23, 2019
Net Expenses Comparison – General Board
FYE Jan-11 NET Annual Budget
FYE Jan 10 NET Actual
FYE Jan-10 NET Annual Budget
General Board Administration
156,473
169,098
173,043
Finance
166,410
222,122
197,203
CMU Grants
321,500
313,021
335,580
Mennonite World Conference Grants
38,000
28,500
TOTAL General Board Expense
682,383
732,741
743,826
Net expenses budgeted for the General Board are $682,000 for the current year compared to a budget of $744,000 last year, and actual expenditures last year of $733,000.
Last year was somewhat unusual due to the additional costs of the Mennonite World Conference held in Paraguay.
Looking Ahead:

11. 850,241 762,631 757,420 Total Partner Programs Expenses
Net Expenses Comparison – Partner Programs
FYE Jan-11 NET Annual Budget
FYE Jan 10 NET Actual
FYE Jan-10 NET Annual Budget
Misc. New Initiatives
20,000
55,676
105,000
Christian Peacemaker Teams
300,000
181,691
200,000
Company of 1000
55,747
42,263
50,000
NAVMF
40,000
45,252
35,000
Philippine Partnership
59,321
85,689
134,813
MVSA
11,000
4,147
Kherson Partnership
8,400
8,515
Learning Tours
29,476
13,775
Canadian Women in Mission
26,905
39,000
MHC Archives
69,817
76,524
71,707
MHC Gallery
113,630
94,300
69,000
Legesse Ethiopia Partnership
17,850
33,974
33,500
IM Short-term assignments
90,000
93,920
Total Partner Programs Expenses
850,241
762,631
757,420
Tuesday, April 23, 2019
Partner Programs are basically revenue neutral, although some administration fees flow into the core budget, and councils do grant some funds to a few of the partner programs listed.
This is a very dynamic part of the budget, that fluctuates from year to year without affecting our bottom line.
Looking Ahead:

12. 415,000 376,237 332,500 Total Related Organization Expenses 55,000
Tuesday, April 23, 2019
Net Expenses Comparison – Related Organization
FYE Jan-11 NET Annual Budget
FYE Jan 10 Actual
FYE Jan-10 NET Annual Budget
Mennonite Mission Network
55,000
36,970
Mennonite Church USA
5,000
10,915
AMBS
85,000
83,318
Canadian Mennonite University
89,064
Mennonite Publishing Network
25,000
41,460
Messerites Kritos College
157,500
114,510
Eastern Mennonite Missions
2,500
Mennonite World Conference
Total Related Organization Expenses
415,000
376,237
332,500
Just like the Partner Programs, Related Organization expenses are limited to the amount of support received for each organization.
Looking Ahead:

13. Balance of Budget 34,751 4,077 -(153,835) (34,751) (190,567) (4,077)
FYE Jan-11 NET Annual Budget
FYE Jan 10 NET Actual
FYE Jan-10 NET Annual Budget
(-) less Deferred Expenses
-(153,835)
Operating Surplus (Deficit)
(34,751)
(190,567)
(4,077)
Transfer to Reserves
(183,441)
(274,568)
(106,556)
Transfer from Reserves
224,232
110,041
136,771
Transfer to Capital Reserves
(6,040)
(26,040)
(26,138)
Net Transfers (to)/from Reserves
34,751
4,077
Ending Surplus/(Deficit)
Tuesday, April 23, 2019
The remainder of the budget document lists the transfers to and from reserves planned by councils and the General Board.
It also contains last year’s line titled “less deferred expenses”
MC Canada is trying to maintain a certain level of program and didn’t want to make more cuts at this point.
Therefore, to balance the budget, included in the $224,232 transfer from reserve are $37,911 to be transfered from General Board’s General fund account
This is a general reserve account
If revenue numbers continue to fall, further permanent program cuts will be made and implemented this fall.
Looking Ahead:

14. 3-Year Budget Confident Responsive Tuesday, April 23, 2019
MC Canada’s financial policies do not permit deficit budgeting, so as revenue projections materialize and become our new reality, we will prepare annual expenditure plans that are realistic, manageable and which reflect the priorities directed by delegates and the General Board.
From a financial perspective, we believe that the situation is being well managed. We are confident in the work being done.
We are confident that our policies, procedures and controls are working well and are appropriate to manage this wonderful organization.
We are also confident that the right decisions and adjustments will be made to adapt to our current reality.
Looking Ahead:

15. Tuesday, April 23, 2019 Looking Ahead: 2007-08
- Taking a quick look at our financial situation so far this year:
- Total Donation Revenues are tracking $72,285 behind budget, $115,963 behind of last years actual. This is an uncomfortable start to the current fiscal year.
- Expenses are also behind budget.
Looking Ahead:

16. Thank you. Tuesday, April 23, 2019 Looking Ahead: 2007-08
We would like to thank all the individuals, corporations and congregations that support Mennonite Church Canada with a special thanks to those who decided to maintain or even increase their support for the ministries we do together. And to the congregations that were not able to maintain their support, I invite you to take a close look at the many valuable ministries Mennonite Church Canada does together with you, and consider increasing your support.
A Congregational Partnerships staff person would be delighted to visit with you and discuss the many opportunities available.
Unless we believe the Church has accomplished its objectives, has fulfilled its purpose, we need to think about growing our ministry, expanding our outreach to those who have not yet been touched by the grace of God.
Thank you.
Looking Ahead: