THE UNITED CHURCH OF CANADA CONFERENCE OF

THE UNITED CHURCH OF CANADA
CONFERENCE OF MANITOBA
AND NORTHWESTERN ONTARIO
Financial Statements
For the year ended December 31, 2015
THE UNITED CHURCH OF CANADA
CONFERENCE OF MANITOBA AND NORTHWESTERN ONTARIO
Financial Statements
For the year ended December 31, 2015
Contents
Independent Auditor's Report
Financial Statements
Statement of Financial Position
Statement of Operations
Statement of Changes in Net Assets
Statement of Cash Flows
Notes to Financial Statements
THE UNITED CHURCH OF CANADA
CONFERENCE OF MANITOBA AND NORTHWESTERN ONTARIO
Statement of Operations
For the year ended December 31
Revenue
Presbytery assessments
General Council Office Grants
Income
Investment
Book sales and miscellaneous
Donations
Archives revenue
Amortization of lease inducement
Truth Reconciliation Council
$
Expenses
Executive
Committees
Archives expenses
Web Development
United Church Women
Communication
Justice, global relations and public witness
Ministry and personnel
Mission support
Young adults and youth
Truth Reconciliation Council
Formal Complaint 01-2014
Annual meeting (Note 9)
Record of proceedings
Conference grants
Calling Lakes Centre
Social justice network of Ontario Conference
Operating
United Church Centre (Note 10)
Office and administration
Amortization
Personnel costs
Salaries, benefits and training
Travel
Staff continuing education
Reserve
Discretionary Fund payments
Deficiency of revenue over expenses
The accompanying notes are an integral part of these financial statements.
$
2015
2015
2014
Budget
Actual
Actual
477,476
$
477,446
$
472,748
293,105
4,800
1,800
7,000
26,700
5,370
-
293,105
3,270
1,626
7,775
12,963
6,444
-
293,105
8,651
138
9,616
14,999
6,444
17,258
816,251
802,629
822,959
24,250
15,415
14,128
32,200
1,000
3,875
3,600
2,600
35,700
2,000
6,050
20,000
500
13,720
173
2,330
1,095
2,039
15,965
1,389
3,765
406
30,835
5,334
21,907
23,989
2,887
1,113
2,876
13,055
1,783
4,620
17,233
1,596
32,321
641
500
500
3,000
500
46,840
34,600
25,625
51,732
30,536
22,516
50,547
35,908
21,776
599,105
22,000
7,000
585,651
11,566
7,000
602,476
19,997
6,500
5,000
1,660
1,775
872,445
803,627
880,628
(56,194) $
(998) $
(57,669)
THE UNITED CHURCH OF CANADA
CONFERENCE OF MANITOBA AND NORTHWESTERN ONTARIO
Statement of Changes in Net Assets
For the year ended December 31
Internally Restricted Net Assets
Executive
DiscreFunded
tionary
Conflict
Projects
Fund Resolution
Investment
in Capital
Assets Unrestricted
Balance, beginning of year
$
Deficiency of revenue over expenses for
the year
$
(22,516)
Allocation for the year
Investment in capital assets
Balance, end of year
136,583
$
The accompanying notes are an integral part of these financial statements.
172,610
$
8,000
$
19,285
$
5,000
$
2015
2014
Total
Total
341,478
$
23,178
-
(1,660)
-
-
(1,660)
-
1,660
-
-
-
2,131
(2,131)
-
-
-
-
-
116,198
$
191,997
$
8,000
$
19,285
$
5,000
(998)
399,147
$
340,480
(57,669)
$
341,478
THE UNITED CHURCH OF CANADA
CONFERENCE OF MANITOBA AND NORTHWESTERN ONTARIO
Statement of Cash Flows
For the year ended December 31
Cash Flows from Operating Activities
Deficiency of revenue over expenses for the year
Adjustments for non-cash item:
Amortization of capital assets
2015
$
2014
(998) $
(57,669)
22,516
21,776
21,518
(35,893)
11,320
6,444
2,216
(17,557)
6,444
119
(182)
(3,482)
(221)
(6,444)
(470)
1,243
(80)
(6,444)
31,169
(52,638)
(2,131)
355,516
(311,957)
(1,128)
335,755
(344,766)
41,428
(10,139)
(25,604)
(24,843)
Increase (decrease) in cash and cash equivalents for the year
46,993
(87,620)
Cash and cash equivalents, beginning of year
18,060
105,680
Changes in non-cash working capital items
Accounts receivable
Lease inducement receivable
Prepaid expenses
Accounts payable and accrued liabilities and accrued
vacation pay
Trust and special funds
Deferred revenue
Deferred contributions
Cash Flows from Investing Activities
Purchase of capital assets
Proceeds from disposal of capital assets
Proceeds from disposal of investments
Purchase of investments
Cash Flows from Financing Activities
Repayment of loan payable
Cash and cash equivalents, end of year
The accompanying notes are an integral part of these financial statements.
$
65,053
$
18,060
THE UNITED CHURCH OF CANADA
CONFERENCE OF MANITOBA AND NORTHWESTERN ONTARIO
Notes to Financial Statements
For the year ended December 31, 2015
1.
Nature of Operations and Summary of Significant Accounting Policies
Nature of Operations
The United Church of Canada was formed in 1925 via the union of three denominations Congregational, Methodist and part of the Presbyterian Church in Canada. The Church's legal
form is set out in The United Church of Canada Act of 1925. Within the conciliar structure of
The United Church of Canada, there are thirteen bodies called "Conferences", of which the
Conference of Manitoba and Northwestern Ontario (the "Conference") is one, which exercise
certain local responsibilities under The United Church of Canada Act and the Church's bylaws. The Conference is a registered charity under the Income Tax Act. It and the other
Conferences have no other independent legal status as they are part of the national
corporation, The United Church of Canada. The Church's General Council has oversight and
significant influence over the Conferences and The United Church of Canada is ultimately
responsible for any liabilities of the Conferences.
The purpose of the Conference of Manitoba and Northwestern Ontario is:
• to offer resources of faith to the Presbyteries and Pastoral Charges within its bounds;
• to ordain, commission and recognize new ministry personnel at an annual gathering of
ministry personnel and elected lay representatives from all Pastoral Charges within its
bounds; and
• to speak both pastorally and prophetically while providing education and advocacy on
issues that affect the health of our communities.
Basis of Accounting
These financial statements have been prepared in accordance with Canadian accounting
standards for not-for-profit organizations.
Revenue Recognition
The Conference follows the deferral method of accounting for contributions.
Grants and Assessments - These revenues are recognized as revenue in the period for which
the grant is receivable or the assessment is made based on the approved Unified Budget of
the General Council or the assessments approved at the Conference Annual meeting.
Memberships, Service Charges and Fees - These revenues are recognized as revenue in the
period for which the membership is in effect or when the services have been rendered or
goods provided in the case of service charges and fees.
THE UNITED CHURCH OF CANADA
CONFERENCE OF MANITOBA AND NORTHWESTERN ONTARIO
Notes to Financial Statements
For the year ended December 31, 2015
1.
Nature of Operations and Summary of Significant Accounting Policies (continued)
Revenue Recognition (continued)
Interest - Interest revenue is recognized as income when the Conference becomes entitled to
such earnings.
Travel Pool Fees - Fees for the Conference's annual meeting and other events are recognized
as revenue at the time the event occurs and the entitlement of registrants to a refund passes.
Deferred Contributions - Contributions restricted for the purchase of capital assets are
deferred and amortized into revenue on a straight-line basis, at a rate corresponding with the
amortization rate for the related capital assets.
Volunteer Services
The Conference receives the benefit of the contribution of significant time by many volunteers.
Due to the difficulty in determining the fair value of the time, volunteer services are not
recognized in these financial statements.
Capital Assets
Purchased capital assets are recorded at cost.
Leasehold improvements are amortized on a straight-line basis starting in the year of
acquisition and will be amortized based on the term of the lease.
Other capital assets are amortized on a straight-line basis starting the year after acquisition
over the following term:
Computer equipment
Office equipment
3 years
5 years
Internally Restricted Net Assets
Reserve for Executive Funded Projects - Funded Projects - The purpose of this Reserve is to
provide funds for projects or activities arising within a particular year which are deemed by the
Executive to be necessary or worthy of funding by the Conference but for which no prior
approved budget funding exists. The Reserve is to be replenished annually from an allocation
of Executive funding to a level established in the Conference budget (currently $8,000).
THE UNITED CHURCH OF CANADA
CONFERENCE OF MANITOBA AND NORTHWESTERN ONTARIO
Notes to Financial Statements
For the year ended December 31, 2015
1.
Nature of Operations and Summary of Significant Accounting Policies (continued)
Internally Restricted Net Assets (continued)
Discretionary Fund - The purpose of this Reserve is to provide a contribution to support
personnel in emergency circumstances at the discretion of the Conference Personnel Minister
in consultation with the Conference Executive Secretary and Conference Administrator, and
the Pastoral Relations Convener of the relevant Presbytery. Presbyteries and/or pastoral
charges with the costs of 363 reports and/or related to Directed Programs arising from them at
the discretion of the Conference Executive Secretary in consultation with the Conference
Personnel Minister, the Conference Administrator and the Treasurer of the relevant
Presbytery or Pastoral Charge. The fund is to be maintained by setting aside $5,000 per year
from the Conference Budget to a maximum of $20,000.
Conflict Resolution - The purpose of this Reserve is to provide funds to support the training of
the Conference-appointed Conflict Resolution Facilitators. This Reserve is also used to
provide honoraria and reimbursement for expenses of a Conflict Resolution Facilitator who is
engaged by the Conference Executive to provide services under the Dispute Resolution
Policy of the United Church of Canada. The Reserve is to be replenished annually by an
allocation from the Conference Budget, to a level of $5,000.
Financial Instruments
Financial instruments are recorded at fair value when acquired or issued. In subsequent
periods, financial assets in actively traded markets are reported at fair value, with any
unrealized gains and losses reported in income. All other financial instruments are reported at
cost or amortized cost less impairment, if applicable. Financial assets are tested for
impairment when changes in circumstances indicate the asset could be impaired. Transaction
costs are the acquisition, sale or issue of financial instruments are expensed for those items
remeasured at fair value at each statement of financial position date and charged to the
financial instrument for those measured at amortized cost.
Post Retirement Benefit Plan
The employees of the conference participate in a defined benefit pension plan administered
nationally by The United Church of Canada. Defined contribution plan accounting is applied to
this multiemployer contributory defined benefit.
Use of Estimates
The preparation of financial statements in accordance with Canadian accounting standards for
not-for-profit organizations requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities at the date of the financial statements, and
the reported amounts of revenues and expenses during the reporting period. Actual results
could differ from management's best estimates as additional information becomes available in
the future.
THE UNITED CHURCH OF CANADA
CONFERENCE OF MANITOBA AND NORTHWESTERN ONTARIO
Notes to Financial Statements
For the year ended December 31, 2015
2.
Investments
2015
Canadian Western Bank GIC - 1.55% due March 28, 2016
Concentra Financial GIC - 1.75%, due June 22, 2016
Concentra Financial GIC - 1.66%, due October 06, 2016
Concentra Financial GIC - 1.65%, due November 02, 2016
Equitable Bank GIC - 1.45%, due March 28, 2016
Home Trust GIC - 1.56% due March 28, 2016
Canadian Western Bank GIC - 1.71%, redeemed
Equitable Trust GIC - 1.60%, redeemed
Home Trust GIC - 1.60%, redeemed
Concentra Financial GIC - 2.000%, redeemed
Concentra Financial GIC - 2.010%, redeemed
Assiniboine Credit Union, term deposits at a rate of 0.2%
due April 4, 2018 and 0.2% due April 5, 2018
$
$
14,584
$
3.
72,000
40,000
28,000
29,000
32,000
100,000
-
2014
315,584
28,092
101,311
101,311
28,140
85,913
14,361
$
359,128
Capital Assets
2015
Cost
Leasehold improvements
Computer equipment
Office equipment
2014
Accumulated
Amortization
Cost
Accumulated
Amortization
$
182,490
19,652
4,446
$
72,996
14,041
3,369
$
182,490
17,537
4,446
$
54,747
10,663
2,480
$
206,588
$
90,406
$
204,473
$
67,890
$
116,182
$
136,583
Cost less accumulated amortization
THE UNITED CHURCH OF CANADA
CONFERENCE OF MANITOBA AND NORTHWESTERN ONTARIO
Notes to Financial Statements
For the year ended December 31, 2015
4.
Loan Payable
2015
Due to The United Church of Canada - monthly payment of
$2,246 principal and interest, due February 2017.
$
31,441
2014
$
57,046
The principal payments due over the next two years are as follows:
2016
2017
5.
$
26,402
5,039
$
31,441
Deferred Revenue
2015
6.
2014
Revenue generation fund, opening balance
Expenses
$
10,952 $
(221)
11,032
(80)
Revenue generation fund, closing balance
$
10,731
10,952
$
Deferred Lease Inducement
2015
2014
Opening balance
Less: current portion
$
32,217 $
(6,444)
38,661
(6,444)
Closing balance
$
25,773
32,217
$
THE UNITED CHURCH OF CANADA
CONFERENCE OF MANITOBA AND NORTHWESTERN ONTARIO
Notes to Financial Statements
For the year ended December 31, 2015
7.
Trusts and Special Funds
2015
Trusts
Archives Sale of Property Fund
Belair Camp
Bergey Estate Trust
McArthur Estate
Oral History Archive Trust
$
Special Funds
Archives Website Fund
Avel Resource Fund
Bursary Fund
Education & Students 2015
Education and Justice - projects
Effective Leadership events 2013-2015
Flood and Disaster relief
Funds Returned and Sale Proceeds
G.C. Commissioners Training
Individual Learning Grants
Interchurch Council on Hydro Power Inc.
Overview & Visioning event 2014
Ministry and Personnel - projects
Special events and projects
Staff Coffee Fund
Stereo Fund - Youth Committee
Trinity Brandon Refugee Fund
Youth Events
Youth Leadership Development
$
15,264
1,078
7,376
9,857
16,164
2014
$
14,766
1,057
7,235
9,834
16,991
49,739
49,883
2,870
1,234
9,139
1,000
3,686
4,964
5,169
6,727
7,383
3,768
2,500
6,262
3,075
132
220
9,820
12,988
2,965
11,604
1,414
11,983
1,000
4,878
4,964
5,169
9,227
1,045
6,554
1,643
2,500
6,262
597
84
331
9,820
5,500
2,665
83,902
87,240
133,641
$
137,123
The Conference administers various trust funds according to the terms and conditions of the
respective trust. During the year, interest earned on investments totaling $1,053 ($1,007 in
2014) was allocated to trusts under the administration of the Conference.
The Conference also administers funds for various projects and groups operating within the
Conference of Manitoba and Northwestern Ontario. Amounts received and expended on
behalf of these projects and groups are recorded directly to these accounts.
THE UNITED CHURCH OF CANADA
CONFERENCE OF MANITOBA AND NORTHWESTERN ONTARIO
Notes to Financial Statements
For the year ended December 31, 2015
8.
Commitments
The Conference has an operating lease for its building beginning on January 1, 2012 for a
period of ten years. The following are the minimum lease payments over the next 5 years:
9.
2016
2017
2018
2019
2020
$
53,287
54,810
56,333
57,855
59,378
Total
$
281,663
Annual Meeting
2015
Annual meeting costs
Less revenue
$
$
2014
76,337 $
(45,502)
30,835
$
70,796
(38,475)
32,321
10. United Church Centre
2015
Occupancy costs
Less rent revenue
$
$
2014
70,097 $
(18,365)
51,732
$
68,522
(17,975)
50,547
THE UNITED CHURCH OF CANADA
CONFERENCE OF MANITOBA AND NORTHWESTERN ONTARIO
Notes to Financial Statements
For the year ended December 31, 2015
11. Pension Plan
Retirement benefits for employees of the Conference are provided through the pension plan
of The United Church of Canada (the "Plan"). The Plan is a multi-employer pension plan
which provides pensions for members of the Ministry Personnel and lay employees of the
Offices of the General Council and any Presbytery, Conference or Pastoral Charge of The
United Church of Canada. The Plan is a contributory defined benefit pension plan which is
financed by contributions from participating employers and employees, and by the investment
earnings of the Plan. The Plan is registered under the Pension Benefits Act, (Ontario),
Registration #0355230.
At the date of the last actuarial valuations and publically available financial information, there
were no unfunded liabilities related to either past service or to amendments to the Plan.
During the year, the Conference made employee contributions to the plan of approximately
$29,867 ($50,744 in 2014).
12. Financial Instrument Risk
The Conference is exposed to different types of risk in the normal course of operations. The
Conference's objective in risk management is to optimize the risk return trade-off, within set
limits, by applying integrated risk management and control strategies, policies and procedures
throughout the Conference's activities.
(a) Credit Risk
Credit risk is the risk that one party to a financial instrument fails to discharge an
obligation and causes financial loss to another party. Financial instruments which
potentially subject the Conference to credit risk consist principally of accounts receivable.
The Conference is not exposed to significant credit risk as the receivable is spread
among a broad base of organizations and payment in full is typically collected when it is
due. The Conference establishes an allowance for doubtful accounts that represents its
estimate of potential credit losses. The allowance for doubtful accounts is based on
management’s estimates and assumptions regarding current market conditions,
customer analysis and historical payment trends. These factors are considered when
determining whether past due accounts are allowed for or written off.
(b) Market Risk
Market risk is the risk the fair value of future cash flows of a financial instrument will
fluctuate because of changes in market prices.
THE UNITED CHURCH OF CANADA
CONFERENCE OF MANITOBA AND NORTHWESTERN ONTARIO
Notes to Financial Statements
For the year ended December 31, 2015
12. Financial Instrument Risk (continued)
(c) Interest Rate Risk
Interest rate risk is the risk that the value of a financial instrument will fluctuate due to
changes in market interest rates. The Conference is not exposed to significant interest
rate risk. Its cash is held in short-term or variable rate products.
(d) Foreign Currency Risk
The Conference is not exposed to significant foreign currency risk as it does not have
any financial instruments denominated in foreign currency and the number of
transactions in foreign currency are minimal.