2017 Financial Statement for ACBM

Fiscal 2017 was a busy year for Metropolitan Community Church of Toronto (“MCC Toronto”): Brent’s final year, Jeff’s arrival, ongoing programming in worship and community involvement. All these activities are clearly reflected in the financial results for the year.

The audit of the financial statements was completed and approved by the Board on May 30th, 2018. In the notes below I will highlight some important considerations in our results.

You will notice a significant difference between the results reported in the audited financial statements and the budget to actual results reported at the end of the year. The audited financial statements are prepared on an accrual basis, whereas the budget monitoring done during the year is closer to a cash reporting basis. For our purposes, this means that the audited financial statements report all liabilities and expenses that MCC Toronto is committed to paying, regardless of when the payment comes due. For budget to actual reporting, payments are reported as the money is paid – to match the cash based budget.

The Statement of Financial Position shows the financial status of MCC Toronto as at December 31, 2017. As you can see, we hold net assets (assets available less liabilities committed) of $3.1 million. Of this total, $1.1 million is held in the Mission and Restricted funds, so only available for use to fund specific expenses for which the money was donated. A further $2.2 million represents the value of capital assets (e.g. the building). Therefore, assets available for use to fund ongoing operations is limited, with a net deficiency in the operating fund of $161,000 (see Note 6 to the financial statements).
The Statement of Operations reports the revenues and expenses incurred for the period January 1, 2017 to December 31, 2017. MCC Toronto had total revenue of $1.88 million, with expenses of $1.87 million, for a net surplus of $7,500. This near breakeven result on revenue of nearly $2 million highlights the need for continued fund raising and donations to support the operations of the church.

The net surplus of $7,500 is a combination of surpluses in both the Mission and Restricted Funds and a deficit in the Operating Fund. In general, the surplus in the Restricted Fund relates to collection of money from the Elevation Campaign, the capital fundraising campaign to be widely launched in the near future. This surplus is offset by a significant deficit in the Operating Fund – of which $237,000 relates to retirement benefit payments to be made in the future. A further $175,000 of this deficit was funded by amounts from the Mission and Restricted funds (see Statement of Changes in Net Assets). Normalizing for these two items results in a deficit of approximately $46,000, including $94,000 of amortization of capital assets.

MCC Toronto is a very active church, with activities related to worship and congregants as well as services to the community. Staff, the Finance Committee and the Board of Directors, monitor the financial operations of the church on a regular basis. While the deficit reported in 2017 is significant, the causes of it are identifiable, manageable and relates to specific decisions made in the year. These results highlight our need for continued involvement and contributions to fund ongoing operations.

Final Signed Audited Statements

MCC Toronto 2018 Budget

Minutes from the 2017 Annual Congregational Business Meeting

Minutes of the 2017 Annual Congregational Business Meeting

June 18, 2017

Chair: Rev. Dr. Brent Hawkes, Moderator

Minutes: Annabelle Menezes, Executive Assistant to Rev. Dr. Brent Hawkes

 

Item/Description
1. Call to Order – The Annual Congregational Business Meeting was called to order at 12NOON, at the conclusion of the 10:50AM worship service. Voting members were identified and a quorum was established. The ACBM was recessed until 12:45PM on the same day. The meeting reconvened at 12:45PM
2. Opening Prayer – Rev. Dr. Brent Hawkes
3. Approval of 2016 ACBM Minutes

Moved by: Marilyn                                                  Seconded by: Bev                 Motion: Carried

4. Explanation & Approval of Agenda – Rev. Dr. Brent Hawkes (see agenda handout)

The Moderator introduced and discussed the agenda.

Motion to approve Agenda:

Moved by:  Deborah                                                Seconded by:  Sam                Motion: Carried

5. Senior Pastor’s Address & Report & 2017-18 Goals & Budget (see handout)

The Senior Pastor’s Report was delivered verbally and in written form by Rev. Dr. Brent Hawkes, and questions were entertained.

Key items were discussed:

·         2016 was a challenging year

·         Brent thanked members of the Board and Staff for the extra work put in over the last year, especially Anne Brayley (Chair of the Board), Shelly Morris, Diane Leah and Annie Menezes (Staff). Brent also thanked Anne Brayley for her time on the Board. Brent also thanked Shelly and her team of Staff and the Finance Committee for management of the budget.

 

The 2017-18 Goals & Budget and first quarter 2017 financials were summarized by Shelly Morris, and questions were entertained.

 

Motion to approve the Senior Pastor’s Report and the 2017-18 Goals and Budget:

Moved by: Denise                         Seconded by: Karen                      

Motion: Carried

 

6. Senior Pastor Search Update – Anne Brayley

  • Anne Brayley gave an update on the Senior Pastor search process.
  • There will be a special congregational meeting on July 9th for the Senior Pastor vote. Brent explained the voting process and the communication around confirming Voting Member status. The list of eligible voters will be closed effective June 18th.
  • There will be a Q & A for the Senior Pastor Elect candidate – please send your questions to

 

7. Election of members to Board of Directors (see handout)

  • Anne Brayley gave an overview of the MCCT Board of Directors, subcommittees and who is up for election. The Board of Directors consists of 6 elected board members and Brent.
  • Nominating Committee recommendations for filling board positions: Joe Jamieson, Bentley Springer, Bev Wybrow
  • Distribution & Counting of Ballots – Shelly Morris, Andrew Holmes, Diane Leah
  • All candidates were elected unanimously:

Joe Jamieson – Appointed to a 3-year term

Bentley Springer – Appointed to a 3-year term

Bev Wybrow – Appointed to a 1-year term

 

Motion to destroy ballots:

Moved by: Susan                                      Seconded by: Bev                             Motion: Carried

8. Motion to Receive the 2016 Audited Financial Statements (see handout) – Cheryl Smith

The financial statements were explained by Cheryl Smith who also responded to questions.

  • Recommendations made by auditors.
  • Brent explained the process of audited financial statements, including the cost and management recommendations. Most other churches do not have audited financial statements.
  • We had another clean audit this year.

 

Motion to receive Audited Financial Statements for 2016:

Moved by: Jim                                     Seconded by: Maria                             Motion: Carried

9. Motion to Appoint Hillborn LLP as Auditor for 2017 – Cheryl Smith

Moved by: Cheryl                                      Seconded by: Susan                             Motion: Carried

10. Acknowledgements – Rev. Dr. Brent Hawkes

Brent acknowledged the Staff, Board and volunteers for their work in preparation of the ACBM.

Lori acknowledged that this was the last ACBM for Brent and thanked him for his 40 years of service to the church.

11. Call for Adjournment – Rev. Dr. Brent Hawkes

Closing Prayer

Motion to Adjourn:

Moved by: Roy                                     Seconded by: John                               Motion: Carried

20018 ACBM Agenda

2018 Annual Congregational Business Meeting

AGENDA

June 10, 2018, 12:45-2:00 pm

Sanctuary

12:30 pm Call for Quorum
12:45 pm Call to Order and Opening Prayer
12:50 pm Approval of 2017 ACBM Minutes
12:53 pm Explanation and Approval of Agenda
12:55pm Discussion and vote re: by-law change
1:05 pm Senior Pastor’s Address & Report & 2018-19 Goals and Budget
1:25 pm Election of Members to the Board of Directors
1:35 pm Motion to receive Audited Financial Statements for 2016
1:50 pm Motion to appoint Hilborn LLP as the Auditor for 2017
1:55 pm Announcement of election of Board of Directors and Acknowledgements
2:00 pm Call for Adjournment and Closing Prayer

 

April 2018 Update

News from the MCC Toronto Board of Directors

As part of our commitment to more regular, transparent and timely communication with the Congregation we want to highlight some of our recent activities. We meet bi-monthly and will provide you with the key points arising from our meetings. In addition, on our Board website, https://board.mcctoronto.com you can find a variety of Board documents and congregational communications.

April 25 Board meeting notes

Primary 2018 Staff objectives

  1. Senior Pastor Transition
  2. New Visitors engagement
  3. Increased Social Events
  4. Congregational Care Initiatives
  5. Capital Campaign

Primary 2018 Board objectives

Critical to our success this year:

  • our active support and management of the transition of Jeff as our new Senior Pastor
  • our leadership and support for the Capital Campaign
  • ensuring our key resource documents are identified, secured, and accessible
  • our continuing focus on financial stewardship

Senior Pastor transition process

Jeff is continuing in his work with the MCC denomination to complete the requirements to officially become an accredited MCC Pastor. The formal requirements will be done prior to the next MCC conference and in no way limit Jeff’s ability to serve as our Senior Pastor.

Jeff meets regularly with the retired Rev. Dr. Brent Hawkes, our Governance committee, and Executive Director Shelly Morris to share insights and seek feedback. Jeff has also reached out to Rev. Bruce Lee of MCC London, attended a Sunday Social Meet & Greet hosted by Kelly Vollering and Pat Elfer, and met with many congregants and church supporters.

Annual Congregation Business Meeting (ACBM)

All members in good standing can vote in our ACBM on Sunday June 10. The formal agenda will include the presentation of our audited financial statements, the election of several Directors, and an important vote for a by-law amendment to increase the number of Directors for our Board from the current fixed maximum of six to a more flexible rage of “six to nine”.  A copy of the “Roles and Responsibilities” of the Board of Directors is available on our website: board.mcctoronto.com. Board members are also working members on one of three sub-committees: Fund Development, Finance, or Governance. Our goal is to better support the committees, better reflect our church demographics, and provide an opportunity to mentor and support new Board members.

Bridges Event

We discussed the challenges of hosting a major fund-raising event in an external venue. When we use an external venue, we are required to use the venue’s audio-visual equipment and staff support, food, bar, etc. In practical terms, this means significant sponsorship & donations are required just to meet the up-front fixed expenses.  Unfortunately, we didn’t have the required sponsorships and donations this year. As a result, we’re postponing the event until October 10 and bringing it back to the church.

Estate Gift

We have been blessed with a generous donation from Ken Rose’s estate. Ken’s commitment to MCC Toronto was reflected in his estate planning and we appreciate Ken’s legacy in its many forms.

2018 Budget

So far, we are below our projected expenses and ahead on our revenue. However, we have identified major structural issues after the recent ice storm and have empowered Shelly and Ned to obtain a structural engineer’s report and proceed on required work.

Capital Campaign Update

Groundwork for our Major Capital Campaign will be co-led by Anne Brayley and Michael McCain.