Mid-year financial update

2016 results

A detailed report of the results of the 2016 fiscal year has been posted on the Canadian Conference of Mennonite Brethren Churches (CCMBC) website, along with the annual financial statements for the Consolidated Operations, the Stewardship Operations (a subset of the Consolidated Operations) and the CCMBC Pension Plan.

For the most part, the results for 2016 were an improvement over the prior year of 2015. Overall, expenditures were lower than in 2015. The major reason was that we had a minimal writedown of land held for development and there was a small net recovery of the allowance for credit losses.

All of the revenue items were higher than the prior year, with the exception of rental revenue.

It should be noted that our contributions from churches were below budget again in 2016.

The CCMBC Pension Plan has continued to produce strong results and provide good pension security for our church pastors and ministry staff. The pension plan earnings were 5.62 percent for the year ended Dec. 31, 2016.

2017 YTD results

As of the end of June, contributions from churches and grants and donations are significantly below the approved 2017 budgets. Over the years, this has been the trend. Historically, grants and donations have been received in the last quarter of the year in sufficient amounts to meet budget. Church contributions in the last half of the year have also historically narrowed the variance to budget.

Expenditures are under budget and it is expected that this trend will continue through the end of 2017. The Executive Board has also directed that $500,000 of the 2017 revenue be directly allocated to the CCMBC operating surplus. This will ensure that the unrestricted net assets will be increased by at least this amount at the end of 2017.

2018 budgets

The CCMBC Senior Leadership Team and staff worked with the Executive Board in developing the annual budgets for the CCMBC Ministry and Legacy operations. During this process, we have been diligent in incorporating the direction that was provided in the amendment to the approval of the 2017 budget. It is a priority of the Executive Board and the Senior Leadership Team that the CCMBC Ministry budget is balanced without cash contributions from the Stewardship/Legacy operations, and that CCMBC Ministry operations are sustainable based solely on church contributions, grants, donations and cost recoveries. A budget commentary will be provided with the proposed 2018 budgets when they are uploaded to the website on Sept. 19, 2017. (See bit.ly/CCMBC-sgm-2017)

Jim Davidson
Interim CFO
CCMBC

 

See also

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