1. Mennonite Church Canada Finance Report Fiscal Year Ending (FYE) 2010
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, 2010.

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 increased compared to last year.
This result was mostly due to solid investment income compared to losses a year ago.

3. Audit Auditor: KPMG Clean audit
Complete Audited Financial Statements are included in your Report Book.
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 Mennonite Church Canada.

4. Statement of Financial Position
It would appear that this is a fairly routine year when looking at this statement.
There are no significant transactions or shifts taking place resulting, in a very comparable statement.

5. Statement of Financial Position
Current assets:
Our cash position increased by just over $500,000.
This increase is due to three main reasons: first, our under-spending during the year; second, we received some significant bequests; and third, the sale of a church property in Thompson, Manitoba.
Later on you will notice the positive impact this has on our current ratio.

6. Statement of Financial Position
Capital Assets:
Due to the annual amortization, you will notice that capital assets have been reduced to $102,000. 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 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 $1,536,000, an increase of $379,000.
Due to reasons already mentioned, we were able to manage the financial situation well, actually allowing Mennonite Church Canada to replenish some of our depleted internally restricted reserve funds.
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.
If we include the New Projects fund, we are almost half way there.
These reserves allow us to smooth out the ups and downs from one year to another.

8. Statement of Financial Position
Current Ratio:
As I mentioned earlier, with the significant increase in our cash position and with only a small increase in Accounts Payables, our current ratio has improved.
This ratio has increased from 2.96 : 1 in FYE 09 to 3.24 : 1 in FYE 10.
MC Canada financial policies require that a current ratio of 2:1 or higher should be maintained.
We are in a good position.
Current liabilities are 769,897; 2009-$671,906 ; $688,007 ; $701,112. ; $1,216,780. ; $ 1,077,161.
Current assets are $2,492,203; $1,986,219 ; $2,092,470 ; $1,910,489. ; $2,150,981. ; $2,053,351.
Current Ratio as at Jan 31/10 is : 1.00
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:
Due to the increase in internally restricted fund balances, our debt/equity ratio has also improved to 0.20 : 1 compared to 0.21 : 1 a year ago.
MC Canada Financial Policies require that the debt/equity ratio should not be greater than 1.5 : 1.

10. Statement of Operations
The Statement of Operations is found on page 3 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 $5,393,000 an increase of $45,000.
The following slides should help you understand where variations occurred.
A year ago I was reporting to you about the investment losses on bequests and endowments invested at Mennonite Foundation of Canada. Instead of experiencing the 8.9% investment loss like we did a year ago, we have received an 11.32% return on most of our investments.

12. Statement of Operations
Donation Revenue:
Donation and bequest revenue for MC Canada core programs continue to decrease, namely from $3,732,000 in 2008 to $3,574,000 in 2009 to $3,564,000 in 2010.
In the end, when only comparing donations income, excluding bequests, FYE 2010 donations slightly exceeded FYE 2009.
Throughout the year, donations came in strong, either ahead of budget or on target.
And at year end, Individual and corporate donors exceeded the previous year by $167,000 , but Congregational giving fell behind by $138,000 .
The reduction in congregational giving was not expected, especially since most congregations were still on track at end of December. Unfortunately, the final forwarding to Mennonite Church Canada didn’t come through as expected.

13. Statement of Operations
Donation Revenue:
Donation revenue for MC Canada partner programs increased in FYE 2010 compared to FYE 2009
This increase is due to increased support for certain new and ongoing ministries like the Philippines Partnership, Mennonite Heritage Centre Archives and Gallery and IM Short-term assignments.
Other self generated income like sales, services and fees decreased significantly. This is mainly due to shifts in the Christian Peacemaker teams funding.

14. Statement of Operations
Donation Revenue:
And donation revenue for MC Canada related organizations remained stable at $287,000 in 2010 compared to 287,000 in 2009.

15. Donation Revenue by Source:
Donation revenue by source is a slide that we have been tracking for several years now.
As you can see, there are some ups and downs, but what is most alarming is the steady decline in congregational support.
Individual and Corporate giving continues to fluctuates the most, with significant recovery after last years’ drop.

16. Statement of Operations
MC Canada Total Expenses:
In terms of expenditures, MC Canada’s total expenditures were $5,229,000 in FYE10 compared to $5,546,000 in FYE09.
Remember this includes all funds expended by MC Canada including partner programs and funds designated for related organizations.
As I mentioned earlier, one of the ways were able to balance our books and replenish some of our reserves was by under spending program.

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:
Another reduction in expenditures was experienced by the Christian Witness Council.
Each year as our donation support decreases, program reductions are implemented.
Within Witness, the International Ministries department was most impacted largly due to different international workers arriving at the end of their mission term.
The difficult question remaining is “how many of these vacancies will be refilled and how many will remain permanently vacant?”

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 FYE 2010.
Youth Assemblies are planned for every second year resulting in large 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:
Total General Board expenses are again very similar to the previous year.
Due to the World Conference and staff transitions, the General Board’s Administration and Finance lines are higher than the previous year. This is partially offset by a reduction in Mennonite World Conference and Canadian Mennonite University grants.
MC Canada met and exceeded its fair share commitment to the Mennonite World Conference allowing us to reduce our grant for this year.

25. Statement of Operations
Partner Programs:

26. Statement of Operations
Partner Programs:
When a partner project is approved, it is set up as self sustaining ministry administered by MC Canada and funded by the partners which may include funding by MC Canada.
This has allowed MC Canada to expand ministry, during a decade of decreasing support.
We do, however, need to remember that these projects are added to what our core ministry is doing. It is based on the foundation, experience, network that has already been build.
In order for the partner programs to remain strong, our core budget needs to remain strong.
The drop you see is due to fluctuations recorded by the Christian Peacemaker Teams. During FYE 09 CPT recorded higher than usual income including a subsidy from CPT in the USA.

27. Statement of Operations
Related Organization:

28. Statement of Operations
Related Organization:
We 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 excess of revenue over expenses totaling $431,000 compared to a deficiency of $198,000 last year.
This money was transferred to reserves either through the budget and part of last year’s plan or as part of our finance policies regulating surplus funds.
This has allowed us to recover our losses from a year ago helping Mennonite Church Canada to continue in a stable financial position.

30. Thank you.
This financial report highlights the financial strengths and weaknesses of our Church.
As you can see, from a financial perspective, we are prudently managing what is entrusted to us.
But as you can also see, when your contributions do not arrive, adjustments have to be made.
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 ministry.
Your support continues to carry Mennonite Church Canada. May God Bless the Church.