Financial Statements

Maritime Conference Fund of

The United Church of Canada

December 31, 2011

Maritime Conference Fund of the United Church of Canada

Contents

Page

Independent Auditors’ Report 1

Balance Sheet 2

Statement of Revenues and Expenses - General Fund 3

Statement of Revenues, Expenses, and Fund Balances - Special Funds 4

Statement of Changes in Fund Balances 5

Statement of Cash Flows 6

Notes to the Financial Statements 7 - 18

Schedule of Revenues - General Fund 19 - 20

Schedule of Expenses - General Fund 21 - 22

Grant Thornton LLP Suite 500 633 rue Main Street, PO Box 1005 Moncton, NB E1C 8P2

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Audit • Tax • Advisory Grant Thornton LLP. A Canadian Member of Grant Thornton International Ltd

Independent auditors’ report

To the Members of

Maritime Conference Fund of The United Church of Canada

We have audited the accompanying financial statements of Maritime Conference Fund of The United Church of Canada, which comprise the General Fund, Bequest Fund and Special Funds balance sheets of Maritime Conference Fund of The United Church of Canada as at December 31, 2011, statements of revenues and expenses - General Fund, revenues, expenses and fund balances - Special Funds, changes in fund balances and cash flows for the year then ended and a summary of significant accounting policies and other explanatory information

Management’s responsibility for the financial statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with Canadian generally accepted accounting principles, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’ responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Canadian generally accepted audited standards. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the accounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making these risk assessments, the auditor considers internal control relevant to the Organization’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion of the effectiveness of the Organization’s internal control. An audit also includes assessing the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statement.

We believe that the audit evidence that we have obtained is sufficient and appropriate to provide a basis for an audit opinion.

Opinion In our opinion, these financial statement present fairly, in all material respects, the financial position of Maritime Conference Fund of The United Church of Canada as at December 31, 2011 and the results of its operations and cash flows for the year then ended in accordance with Canadian generally accepted accounting principles. Emphasis of matter Without modifying our opinion, we draw attention to Note 1 (j) to the financial information, which describes the nature of assets and liabilities reported in these financial statements which are held in trust by a third party.

Moncton, New Brunswick

April 10, 2012 Chartered Accountants

3

Maritime Conference Fund of The United Church of Canada Statement of Revenues and Expenses - General Fund Year ended December 31 2011 2011 2010 Budget Actual Actual Revenues (Pages 19 and 20):

Allocations from Presbyteries and Bermuda Synod $ 639,110 $ 639,110 $ 632,783 Grants from The United Church of Canada 311,000 344,675 343,834 Other 79,825 95,943 62,884 Capital transactions – 400,864 –

1,029,935 1,480,592 1,039,501 Expenses (Pages 21 and 22):

Executive 94,500 64,136 33,052 Administration 34,800 39,528 31,811 Office 552,236 590,531 550,899 Standing committees 382,736 357,924 348,205 Grants to agencies and institutions 50,000 50,000 50,000 Amortization (Notes 1 and 7) 12,575 7,416 11,654

1,126,847 1,109,535 1,025,621 Excess of revenues over expenses (expenses over revenues) $ (96,912) $ 371,057 $ 13,880

See accompanying notes to the financial statements.

4

Maritime Conference Fund of The United Church of Canada Statement of Revenues, Expenses and Fund Balances - Special Funds Year ended December 31 2011 2010

Friends Aitken/ MacRea Ministry Chaplaincy For Personnel of the Memorial Dickey Belliveau Support Support Special Emergency Archives Funds Trusts Trust Funds Funds Projects Reserve Total Total Revenues:

Contributions $ – $ – $ – $ 821 $ – $ – $ – $ – $ 821 $ 1,321 Interest earned:

Financial Services – – 1,240 – – – 9,989 – 11,229 11,212 Jost Estate – – – – – – 883 – 883 2,966 Temporary investments 22 2 4 33 25 50 271 165 572 202 United Church Foundation – – – – – 1,675 – – 1,675 1,156 Bone bequest income – – – – – – – – – 4,000

22 2 1,244 854 25 1,725 11,143 165 15,180 20,857 Expenses:

Bursaries – – 1,144 – – – – – 1,144 – Grants – – – – 848 – 6,100 – 6,948 12,766 – – 1,144 – 848 – 6,100 – 8,092 12,766 Excess of revenues over expenses (expenses over revenues) 22 2 100 854 (823) 1,725 5,043 165 7,088 8,091 Unrealized gain (loss) on investment – – – – – – – – – 4,000 22 2 100 854 (823) 1,725 5,043 165 7,088 12,091 Fund balances, beginning of year 5,516 426 1,240 8,052 6,741 12,071 66,628 41,160 141,834 133,743 5,538 428 1,340 8,906 5,918 13,796 71,671 41,325 148,922 145,834 Transfers to other funds: General Fund – – – – – – 20,365 – 20,365 4,000 Bequest Fund – – 96 – – – – – 96 – – – 96 – – – 20,365 – 20,461 4,000 Fund balances, end of year $ 5,538 $ 428 $ 1,244 $ 8,906 $ 5,918 $ 13,796 $ 51,306 $ 41,325 $ 128,461 $ 141,834

See accompanying notes to the financial statements.

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Maritime Conference Fund of The United Church of Canada Statement of Changes in Fund Balances Year ended December 31 2011 2010 General Bequest Special Fund Fund Funds (Note 15) (Note 16) (Page 4) Total Total Fund balances, beginning of year $ 606,850 $ 402,771 $ 141,834 $ 1,151,455 $ 1,125,484 Excess of revenues over expenses 371,057 – 7,088 378,145 21,971 Unrealized gain (loss) – – – – 4,000 Transfers from (to) other funds:

Bequest Fund: Vera Dickey Bequest – 96 (96) – –

Special Fund, General Fund Equipment, new facility 20,365 – (20,365) – –

Fund balances, end of year $ 998,272 $ 402,867 $ 128,461 $ 1,529,600 $ 1,151,455

See accompanying notes to the financial statements.

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Maritime Conference Fund of The United Church of Canada Statement of Cash Flows Year ended December 31 2011 2010 Increase (decrease) in cash and equivalents:

Operating Excess of revenues over expenses $ 378,145 $ 21,971 Amortization 7,416 11,654 Gains on capital transactions (400,864) – Change in non-cash working capital:

Increase in accounts receivable (55,001) (5,131) Decrease (increase) in prepaids 10,309 (4,688) Increase in accounts payable and accrued liabilities 310,554 13,539 (Decrease) increase in payable to or on behalf and as directed by others (5,837) 2,351 (Decrease) increase in unearned revenues (19,878) 15,429

224,844 55,125 Financing

Grant from The United Church of Canada for computer upgrades: Portion of grant applied to revenues for the current year – (666)

Restricted contributions to project development costs 2,589 5,000 Draw on mortgage payable 375,000 –

Repayment of long-term liabilities – (1,667) 377,589 2,667 Investing

Net proceeds from sale of properties and equipment 589,082 – Expenditures on equipment (8,442) (4,622) Project Development costs (1,238,103) (12,812) Deposits on equipment contracts (42,286) – Net cost of assets sold and scrapped – (1,500) Increase in balance of proceeds of sale held in trust (438,234) (20,000) Earnings added to investment in The United Church of Canada Foundation (1,676) (1,156) Additions to bequests (96) –

(1,139,755) (40,090) Net (decrease) increase in cash and equivalents (537,322) 17,702 Cash and equivalents, beginning of year 679,696 661,994 Cash and equivalents, end of year $ 142,374 $ 679,696 Cash and equivalents, General Fund, end of year, consist of the following:

Cash $ 92,374 $ 629,696 Temporary investments 50,000 50,000

$ 142,374 $ 679,696

See accompanying notes to the financial statements.

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Maritime Conference Fund of The United Church of Canada Notes to the Financial Statements December 31, 2011 Nature of operations The Maritime Conference Fund of The United Church of Canada (the “Organization”) is a Court of The United Church of Canada operating in the Maritime Provinces of Canada. Its principal activities include the provision of services to the presbyteries and pastoral charges affiliated with The United Church of Canada in the region and in Bermuda. It is a registered charity under the Income Tax Act. 1. Significant accounting policies

(a) Fund accounting The Organization follows the restricted fund method of accounting for contributions. The General Fund accounts for the Organization’s delivery of services and administrative activities. This fund reports unrestricted resources and restricted operating grants. The Bequest Fund reports the assets, liabilities, revenues and expenses related to the assets bequeathed to the Organization. The Special Funds report the assets, liabilities, revenues and expenses related to the Organization’s six funds (six in 2010) that have been set up for different specific purposes.

(b) Cash and cash equivalents Cash and cash equivalents include cash on hand, balances with banks and short-term deposits. Bank borrowings are considered to be financing activities.

(c) Investments

Investments are recorded at quoted market values. In the year of disposal, gains and losses are recorded as investment revenues and losses. Gains and losses for changes in quoted market values of investment holdings are recorded as unrealized gains and losses on investments.

(d) Property and equipment Property and equipment are recorded at cost, less accumulated amortization. Amortization has been recorded on the straight-line basis using the following annual rates:

Land improvements 5% Buildings at Sackville, NB

32 York Street 2.5% 28-30 York Street 5%

Equipment Office equipment and furniture 10% Computer hardware 20%

(e) Post retirement benefit plan The employees of the Organization participate in a defined benefit pension plan administered and held nationally by The United Church of Canada. The Organization is only responsible for the annual contributions as determined by the plan administrator and is not responsible for the obligations due for the employees under this employee benefit plan.

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Maritime Conference Fund of The United Church of Canada Notes to the Financial Statements December 31, 2011 1. Significant accounting policies (continued)

(f) Revenue recognition Restricted contributions related to general operations are recognized as revenues in the General Fund in the year in which the related expenses are incurred. All other contributions for restricted purposes are recognized as revenues in the appropriate restricted fund. Unrestricted contributions are recognized as revenues in the General Fund in the year received, or receivable if the amount can be reasonably estimated and receipt is reasonably assured. Investment incomes earned on restricted investments are recognized as revenues of the related fund. Other investment revenues are recognized in the General Fund as they are earned.

(g) Use of estimates In preparing the Organization’s financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities, and reported amounts of revenues and expenses. Actual amounts could differ from these estimates.

(h) Change in accounting policy

As of January 1, 2011, the Organization changed its accounting policy in regard to the recording of HST rebates which it is entitled to receive. Prior to that date, the rebate of 50% was recorded in other revenue and the total HST was recorded in the related expense category. After that date, the 50% rebate portion of the HST is recorded as a reduction in the related expense category. For comparative purposes, the expense figures for the year ended December 31, 2010 have been restated resulting in a decrease of $21,602 in other revenue and a corresponding decrease in the related expense accounts.

(i) New accounting standards The Accounting Standards Board (AcSB) of Canada issued the accounting standards for Not-for-Profit Organizations, which are effective for years beginning on or after January 1, 2012. Early adoption is permitted. The Organization will be reviewing these new standards to determine what impact, if any, they will have on future reporting periods.

(j) Amounts held in trust Due to the Organization’s legal status, management has determined that the Organization is unable to enter into certain forms of legal contracts. As a result, the Financial Services of the Maritime Conference of The United Church of Canada, Inc. (“Financial Services”) was incorporated in 1987 to assist The United Church of Canada, Presbyteries, Pastoral Charges, local congregations and groups within a congregation and the Organization by holding properties in trust and entering into contracts, among various other financial services, on behalf of the aforementioned entities. Financial Services holds in trust all of the investments of the Bequest and Special Funds and the remaining proceeds of the sale of the properties that are or were presented in the financial statements of the Organization. In addition, the mortgage agreement, the contract for project development, the purchase of land and the contracts for equipment purchases for which the liabilities and costs to date are presented in the financial statements have been entered into by Financial Services on behalf of the Organization. Other amounts held in trust include a portion of the total holdbacks payable related to the construction contract (Note 5).

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Maritime Conference Fund of The United Church of Canada Notes to the Financial Statements December 31, 2011 2. Financial instruments Financial instruments Financial assets and financial liabilities are recognized when an entity becomes party to the contractual provisions of the financial instrument and are measured initially at fair value adjusted by transactions costs, except for those carried as held for trading which are measured initially at fair value. Subsequent measurement of financial instruments as well as the Organization’s classification of the same are described below. Loans and receivables Financial assets classified as loans and receivables are subsequently measured at amortized cost using the effective interest rate method. The Organization has classified it’s receivables as loans and receivables. Held for trading Financial assets classified as held for trading are subsequently measured at fair value. Assets in this category include cash and cash equivalents and investments. Other liabilities Other liabilities include accounts payable and accrued liabilities and advance on mortgage payable. These are subsequently measured at amortized cost. Credit risk Credit risk includes the potential financial loss that may be experienced by the Organization caused by debtors failing to honour its obligations to the Organization. Accounts receivable on allocation from presbyteries exposes the client to credit risk. The Organization has assessed this risk as low given its minimal balance of accounts receivable at year end and good collection history. Interest rate risk Interest rate risk is the risk that fair value or future cash flow of a financial instrument will fluctuate because of changes in market interest rates. The Organization is exposed to interest rate risk through investments, however the Organization has also assessed this risk as low given the low risk nature of the investments. Liquidity risk Liquidity risk is the risk that the Organization may not have cash available to satisfy financial liabilities as they come due. To mitigate this risk, the Organization is internally monitoring this level of liquidity on a regular basis. Financial instruments measured at fair value Disclosure regarding financial instruments must be presented as a hierarchy that categorizes the inputs to valuation models used to value financial assets and liabilities. The three levels of the hierarchy are described below:

Level 1 - unadjusted quoted prices in active markets for identical assets and liabilities; Level 2 - inputs other than quoted prices that are observable for the asset or liability either directly or indirectly; Level 3 - inputs that are not based on observable market data.

The securities of the Organization are all measured under level 1.

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Maritime Conference Fund of The United Church of Canada Notes to the Financial Statements December 31, 2011 3. Accounts receivable

2011 2010 Allocations from Presbyteries $ 40,922 $ 48,393 The United Church of Canada 2,361 – HST rebates – 50% of HST paid (2011 includes $8,696 on holdbacks) 95,499 25,813 Other 4,342 13,917 $ 143,124 $ 88,123 4. Proceeds from sale of properties held in trust The proceeds from the sale of the properties at 32 and 28-30 York Street in Sackville, NB, less legal and other fees, are held in trust (Note 1(j)) with Financial Services of the Maritime Conference Fund of The United Church of Canada, Inc. That incorporated body, whose members and directors are appointed by the Executive and the Presbyteries and Synod of the Maritime Conference, had held these properties in trust for the Organization and will hold in trust the property and the mortgage of the new facility presently under construction. The balance is available to assist in paying for construction of the new facility ($200,000 has been withdrawn for that purpose to date) and purchase of equipment for use in those premises. Interest, which has been included in the revenues of the Organization as it is earned, is receivable on the balance at current bank rates obtainable.

5. Portion of advance on mortgage payable for holdbacks As a condition for advances under the mortgage agreement, a portion of the advance equivalent to the 15% holdback payable to the contractor for the particular progress claim for which the mortgage advance was made is to be retained by legal counsel in trust.

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Maritime Conference Fund of The United Church of Canada Notes to the Financial Statements December 31, 2011 6. Investments

Stated value, equal to market value 2011 2010 General Fund Investment with The United Church of Canada Foundation $ 57,361 $ 55,685 This investment was made on behalf of the Chaplaincy Fund of the Organization to hold a place for the anticipated build-up of those funds to the minimum $50,000 investment required by the Organization. As the Chaplaincy Fund builds to $50,000, the amounts will be used to replace the investment by the Organization. The investment chosen is Fiera Balanced Fund which is invested through RBC Dexia. Bequest Fund Investment certificates issued and held in trust (Note 1 (j)) by Financial Services of The Maritime Conference Fund of The United Church of Canada Inc.

Investment - interest for distribution as bursaries for ministerial candidates Aitken Memorial Trust $ 5,000 $ 5,000 Vera Dickey bequest, 10% of interest received re-invested 17,614 17,518

22,614 22,518 Investment - interest for distribution as support for special projects

William A. Crawford Trust 1,975 1,975 Annie V. King Bequest 23,000 23,000 Guy R. King Bequest 75,331 75,331 Edith MacPherson Bequest 5,000 5,000 Metzler Bequest 822 822 Agnes J. Ross Bequest 36,383 36,383 J. Oscar Young Bequest 39,000 39,000

181,511 181,511

$ 204,125 $ 204,029 Interest earned on the above investments is at 5.5% (2010 - 5.5%). The revenues listed are being held and applied as set out below.

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Maritime Conference Fund of The United Church of Canada Notes to the Financial Statements December 31, 2011

6. Investments (continued)

Remaining at Remaining at Earned Granted December 31, December 31, 2011 2011 2011 2010 Available for bursaries for ministerial candidates Aitken Memorial Trust $ 277 $ 275 $ 277 $ 275

Vera Dickey Bequest

Interest earned 872 869 967 964 Invested, 10% of interest received 96 96 – – 968 965 967 964

1,245 1,240 1,244 1,239 Available for special projects:

William A. Crawford Trust $ 111 $ – $ 642 $ 531 Annie V. King Bequest 1,281 – 4,711 3,430 Guy R. King Bequest 4,218 5,000 19,119 19,901 Edith MacPherson Bequest 285 – 2,681 2,396 Metzler Bequest 53 – 476 423 Agnes J. Ross Bequest 2,023 600 7,058 5,635 J. Oscar Young Bequest 2,159 500 4,269 2,610 Estate of Edgar Jost 931 – 12,269 11,338 Lillian Bone Estate 81 20,365 81 20,365

11,142 26,465 51,306 66,629

$ 12,387 $ 27,705 $ 52,550 $ 67,868

The grants from earnings available for special projects were disbursed and allocated as follows:

2011 2010 Paid to grantees $ 6,100 $ 12,000 Allocated to General Fund:

Applied to expenses incurred during the year 20,365 4,000 $ 26,465 $ 16,000

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Maritime Conference Fund of The United Church of Canada Notes to the Financial Statements December 31, 2011 7. Property and equipment

Accumulated Net book 2011 Cost amortization value In rented premises at 1 Fairfield Road, Sackville, NB, used by the Maritime Conference Fund, in General Fund

Office equipment and furniture $ 3,893 $ 674 $ 3,219 Rolling shelving, archives, currently in storage 42,008 42,008 – Computer hardware and peripherals 24,711 14,881 9,830

$ 70,612 $ 57,563 $ 13,049 2010 Property used by the Maritime Conference Fund, in General Fund

Land $ 20,000 $ – $ 20,000 Land improvements 7,184 7,184 – Office building 160,986 109,799 51,187 Alterations to building for archives 56,469 18,476 37,993 Roof renovations 35,318 3,097 32,221 Office equipment and furniture 115,813 105,091 10,722 Rolling shelving, archives 38,074 38,074 – Computer hardware 33,300 29,404 3,896

467,144 311,125 156,019

Revenue-producing property, in Bequest Fund Land 30,000 – 30,000 Building 152,763 152,763 – Roof renovations 17,245 3,023 14,222

200,008 155,786 44,222 $ 667,152 466,911 $ 200,241

8. Project development costs Project development costs at December 31, 2011 include the costs to date of land purchased at 21 Wright Street of $166,907 (2010 - Nil), and progress claims and other costs, including interest on the $375,000 mortgage withdrawal, related to the building being constructed on that site of $1,084,008 (2010 - $12,812). It is anticipated that the project will be completed on or about June 30, 2012. The total cost on completion is expected to be approximately $3,200,000, made up of the following:

Land $ 170,000 Land improvements and parking lot 60,000 Building 2,520,000 Archives shelving 100,000 Furnishings and equipment 350,000 $ 3,200,000

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Maritime Conference Fund of The United Church of Canada Notes to the Financial Statements December 31, 2011 9. Deposits on contracts Financial Services (see Note 1(j)), on behalf of the Organization, has entered into contracts with certain manufacturers’ representatives for the provision of equipment and furnishings for the new facility, as follows:

Deposit paid Total cost Archives shelving $ 19,910 $ 199,910 Other equipment and furnishings 22,376 111,880 $ 42,286 $ 311,790

The remaining amounts owing will be paid within one year.

10. Accounts payable and accrued liabilities Included in accounts payable at December 31, 2011 are progress claims on the construction project of $314,784 (2010 - Nil). This amount includes holdbacks of $133,779 and related HST of $17,391, which will become payable upon approved completion of the project, currently anticipated to occur on or about June 30, 2012. The remaining balance of $163,614 has since been paid to the Organization’s legal counsel, who has paid the contractor. 11. Payable to or on behalf and as directed by others The United Church of Canada and certain other agencies related to the activities of that organization have deposited monies with the Organization which are to be disbursed upon the direction of these agencies. Certain other amounts are received on behalf of The United Church of Canada and are payable to that organization. Details of the amounts held and payable to or on behalf of The United Church of Canada at the end of the year are as follows:

2011 2010 Payable on behalf of The United Church of Canada

Congregational Learning Grants, upon application for learning support $ – $ 425 Halifax chaplaincy, for relief chaplains as directed by committee – 5,412

Emergency funding available for pastoral charge personnel 1,393 1,393 $ 1,393 $ 7,230

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Maritime Conference Fund of The United Church of Canada Notes to the Financial Statements December 31, 2011 12. Unearned revenues

2011 2010 Grants received from The United Church of Canada, to be disbursed for events and projects in ensuing years

Life Long Learning (received in 1996/7) $ 471 $ 471 Christian Life & Growth projects (received in 2009) 11,048 11,500 Survivor Support 6,393 – Women in Ministry event 500 500 Youth Social Justice (received in 2010) 2,822 3,000 Bible Quest (received 2009, through Faith Formation $1,000; 2004 $1,600; 2001, $4,000; $2000, $2,000) – 4,641 Ministry, Personnel and Education (received in current year, for next year) 4,000 4,000 Ministry in Changing Times 2,099 3,010

27,333 27,122 Grant, Heritage Canada, unexpended, “Traps” Aboriginal Theatre 1,054 1,054 Excess revenues held for future events and projects

Youth Forum fund-raiser 1,493 1,404 Christian Life and Growth projects, net excess on video licensing – 28 Bequest by Ian Robb 4,510 4,660

6,003 6,092 Deposit held in trust – 20,000 $ 34,390 $ 54,268

13. Restricted contributions The Organization has received donations designated as contributions toward the cost of the new facility. These contributions and others anticipated to be received as the result of a campaign for contributions for the new facility and other needs of the Organization, which began in late 2011, will be recognized as revenues in the year in which the related expenses are incurred. 14. Advance on mortgage payable Financial Services (see Note 1(j)) on behalf of the Organization, has entered into an agreement with the individual who sold the land to them for the provision of $1,900,000 to assist in payment for the construction of the new facility, secured by a collateral mortgage on the property. The ten year term mortgage is repayable monthly, once fully advanced, with interest at 6.5% on 25 year amortization. Interest only payments are due on amounts drawn down from the mortgage until such time that the funds are fully advanced. Advances under the mortgage are based on the progress of construction. $375,000 has been drawn to December 31, 2011. Interest at the mortgage rate has been paid to that date in included in the Project Development Costs.

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Maritime Conference Fund of The United Church of Canada Notes to the Financial Statements December 31, 2011 15. General Fund - Fund Balance The Fund Balance in the General Fund consists of the following:

2011 2010 Accumulated excess of revenues over expenses

Fund balance - operating section, beginning of year $ 322,119 $ 304,239 Excess of revenues over expenses 371,057 13,880 Net transfers from Special Funds – 4,000

Fund balance - operating section, end of year 693,176 322,119 Investment in property and equipment

Balance, beginning of year 284,731 284,731 Grant from Bone bequest income, Special Funds 20,365 – Balance, end of year 305,096 284,731

Fund balance, end of year $ 998,272 $ 606,850

The investment in property and equipment results from the following:

2011 2010 Property and equipment used by the Organization (Note 7)

Cost $ 70,612 $ 467,144 Accumulated amortization 57,563 311,125 13,049 156,019 Prepaid property sale costs – 5,365 Project development costs 1,250,915 12,812 Deposits on equipment contracts 42,286 – Unearned revenue – (20,000) Restricted contributions (7,589) (5,000) Mortgage payable, draws to date (375,000) – 923,661 149,196 Due from General Fund - operating section

Balance, beginning of year 135,535 124,042 Expenditures on equipment by operating section (8,442) (6,122) Amortization on General Fund property and equipment 6,988 10,792 Expenditures on project (857,738) (12,812) Deposits on equipment contracts (42,286) – Expenditures on property sale – (5,365) Net book value of property sold 144,424 – Grant from Bone bequest income in Special Funds 20,365 – Deposit held in trust (20,000) 20,000 Restricted contributions 2,589 5,000

Balance, end of year (618,565) 135,535 Investment in property and equipment, end of year $ 305,096 $ 284,731

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Maritime Conference Fund of The United Church of Canada Notes to the Financial Statements December 31, 2011 16. Bequest Fund - Fund Balance The Bequest Fund balance originated from bequests, which are held and managed as follows:

2011 2010 Due from General Fund

Transferred on sale of property Lillian Bone Memorial Fund Bequest $ 151,600 $ – Appropriated from Bequest Fund earnings held in Special Funds 31,163 –

182,763 – Rackham Bequest 15,979 15,979 198,742 15,979

Invested in revenue-producing property

Lillian Bone Memorial Fund Bequest – 151,600 Appropriated from Bequest Fund earnings held in Special Funds – 31,163

– 182,763

Investments, held in trust, (Note 1 (j)) with Financial Services of the Maritime Conference of The United Church of Canada, Inc.

Income to provide bursaries for ministerial candidates Aitken Memorial Trust 5,000 5,000 Vera Dickey Bequest, 10% of interest received invested annually 17,614 17,518

22,614 22,518

Income for special projects

William A. Crawford Trust 1,975 1,975 Annie V. King Bequest 23,000 23,000 Guy R. King Bequest 75,331 75,331 Edith MacPherson Bequest 5,000 5,000 Metzler Bequest 822 822 Agnes J. Ross Bequest 36,383 36,383 J. Oscar Young Bequest 39,000 39,000 181,511 181,511

204,125 204,029

$ 402,867 $ 402,771

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Maritime Conference Fund of The United Church of Canada Notes to the Financial Statements December 31, 2011 17. Commitments Financial Services, at the request of the Organization (Note 1 (j)), has committed to complete the construction of a new facility for an approximate total cost $3,200,000 (Note 8), which includes equipment and furnishings expected to cost approximately $350,000. A project manager has been engaged by the Organization who is being paid $4,500 monthly from January 1, 2011 to and including the date that the Organization takes occupancy of the new facility, anticipated to be on or about June 30, 2012. Certain other professional advisors are to be paid at their regular fees for such as assessments of progress claims and inspection of the work on the facility and legal work in receiving and paying claims and holding in trust the contractors’ holdbacks. The cost of the new facility is to be financed in part by advances under a mortgage agreement (Note 14) with the individual from whom the land was purchased. After the construction is completed, the mortgage advances are to total $1,900,000, with the balance of the total cost coming from the Organization’s own resources and the financial campaign, which has an objective of raising $3,000,000 over the next five years and is currently underway. The mortgage agreement calls for monthly payments of $12,726, including principal and interest at 6.5%, for ten years from the date of occupancy of the new facility. The remaining balance on the mortgage after the ten years would be $1,468,964, assuming a permitted extra payment of 10% of the balance at the time was not made on each anniversary date. As part of the financial campaign referred to above, the Organization has retained a professional fundraising firm as consultants on the campaign. The commitment is for an eighteen month period with a monthly cost of $10,000 per month. The Organization can terminate its commitment by providing two months notice.

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Maritime Conference Fund of The United Church of Canada Schedule of Revenues - General Fund Year ended December 31 2011 2011 2010 Budget Actual Actual Allocations from Presbyteries and Bermuda Synod $ 639,110 $ 639,110 $ 632,783 Grants from The United Church of Canada

Salaries and benefits 305,000 318,000 314,832 Equalization 5,000 5,000 5,000 Stewardship, Revenue Generation – – 6,711 Ministry Personnel and Education 1,000 2,013 5,245 Christian Life and Growth From deferred income of previous years – 4,641 2,000 Learning in Community – 3,000 – GO! Project Fund – – 2,500 Connections – – 2,000 Church in Action Congregation Learning Grants applied to project – – 1,670 As Long As Grass Grows – 8,310 – Turn event – 1,000 2,633 Gospel, Ecumenism and Theology Turn event – 1,500 – Computer upgrades – – 666 Staff retreat – 911 – Staff orientation – – 357 Office Christmas luncheon – 300 220

311,000 344,675 343,834 Other

Net rental revenue, Lillian Bone Bequest General operations 8,500 7,542 8,500 Interest Net of allocation to Bequest and other incomes, on temporary investments and bank account 2,000 (371) (111) On deposit of proceeds of property sales – 3,366 – 10,500 10,537 8,389 Grant from government agencies for Archives projects – – 275 HST recoveries (Note 1 (h)) 20,000 – – Other recoveries

Archives Fees and contributions 600 4,233 1,040 Rent 1,200 600 1,200

Copies of annual meeting proceedings and directories 350 352 482 2,150 5,185 2,722

32,650 15,722 11,386

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Maritime Conference Fund of The United Church of Canada Schedule of Revenues - General Fund Year ended December 31 2011 2011 2010 Budget Actual Actual Other (continued)

Event receipts Registrations

Youth Forum $ 23,625 $ 23,651 $ 24,051 Intermediates/Children at annual meeting 20,000 23,872 19,210 Camp Stuff 750 725 740

Stewardship Resource Pool – 959 – Promotional 600 354 791

44,975 49,561 44,792 Poppy retainer sales – – 18 Minor equipment sales – – 25 Youth Forum T-shirt sales 500 89 280 Christian Life and Growth projects 500

Children’s/Resource boxes – 2,256 Godly Play – 1,100 – Rendezvous – 7,099 – Support for travel from unearned revenue – 481 – Camp Directors training 1,180 600 Other – 568 355

Church in Action Projects Survivor Support – 5,000 – Youth Social Justice – 178 – Other – – 1,064

Online courses – 738 – Camp directors’ training – 4,200 – Jubilarian dinner at annual meeting 1,200 975 1,400

47,175 71,169 50,790 Donations

Portion of Ian Rob donation – 150 – Individuals for various projects – 8,897 560

– 9,047 560

Miscellaneous – 5 148

79,825 95,943 62,884

Capital transactions Gains on sale of York Street Sackville properties – 402,077 – Loss on sale and scrapping of surplus equipment – (1,213) –

– 400,864 – $ 1,029,935 $ 1,480,592 $ 1,039,501

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Maritime Conference Fund of The United Church of Canada Schedule of Expenses - General Fund Year ended December 31 2011 2011 2010 Budget Actual Actual Executive

Meetings $ 16,600 $ 14,573 $ 17,846 Task groups 1,500 – – Moderator’s visits 2,500 969 4 Delegates, representing Conference

Atlantic Ecumenical Conference 1,000 80 200 Camp Wegesegum 650 370 551

Delegate support 1,000 – – Presbytery support 4,000 3,995 1,056 Ordination costs 500 546 145 Hospital chaplaincy advisory committee 8,000 1,387 4,288 Hospital chaplaincy supply 50,000 5,467 – Conflict resolution/legal 5,000 1,119 4,433 Personnel emergencies – 482 – Incorporated ministries advisory committee 3,000 451 428 Structure review committee – – 9 Mission & Service Fund, donations and poppy retainer sales – – 428 Financial Campaign – 27,711 – Conference Accommodations Committee – 6,586 3,664 Support for United Church Men – 400 – Miscellaneous 750 – –

94,500 64,136 33,052 Administration

Presidents’ expenses 5,500 5,850 2,590 Executive Secretary’s expenses 200 112 202 Treasurer’s expenses 1,600 1,237 1,433 Treasurer’s honorarium 8,500 8,496 6,000 Auditors’ fees 17,500 19,039 19,503 Bank service charges 1,500 2,088 2,083 Bad debts – 2,706 –

34,800 39,528 31,811 Office

Operation 42,950 93,158 36,270 Staff salaries and employee benefits, paid by The United Church of Canada (on behalf of the Maritime Conference Fund) 485,036 469,858 489,592 Staff travel 24,250 27,515 25,037

552,236 590,531 550,899

22

Maritime Conference Fund of The United Church of Canada Schedule of Expenses - General Fund Year ended December 31 2011 2011 2010 Budget Actual Actual Standing Committees

Annual Meeting and Proposals (including Youth Forum) 129,650 115,030 112,818 Christian Life and Growth (includes Audio-Visual Educational Library) 72,757 94,815 74,164 Church in Action 26,050 29,494 26,988 Gifts and Giving 14,100 5,783 11,038 Gospel, Ecumenism and Theology 7,600 9,078 6,458 Heritage and Resources 70,854 67,874 77,804 Ministry, Personnel and Education and Settlement 49,075 29,697 30,231 Staff 12,650 6,153 8,704

382,736 357,924 348,205 Grants to agencies and institutions

Atlantic Christian Training Centre 50,000 50,000 50,000 Amortization 12,575 7,416 11,654 $ 1,126,847 $ 1,109,535 $ 1,025,621