We would like to acknowledge and thank all the organizations, synods, congregations and individuals who have supported the ministries and programs of the National Office in 2004. Your support is sincerely appreciated.
In the 2004 fiscal year, revenues of $4,492,486 were received. Revenue sources consisted of benevolence from the synods, directed income for National Office program activities, the Praise Offering from Evangelical Lutheran Women (ELW), donations for the Global Hunger and Development Appeal (GHDA) and Canadian Lutheran World Relief (CLWR), advertising and subscription revenue for Canada Lutheran magazine, interest income from investments and mortgages, and other income.
In the 2004 fiscal year, the excess of revenue over expenses totaled $393,455 before the pension contribution towards the deficit funding of $2,000,000 and the recovery of other liabilities of $180,000 resulting in an excess of expenses over revenue for the year of $1,426,545. Contributions to endowments were $21,559.
The Statement of Financial Position indicates that net assets have decreased from $20,452,580 in 2003 to $19,047,594 in 2004.
The Evangelical Lutheran Church in Canada's 2005 operating budget for the National Office is a balanced budget with revenues and expenses projected at $3,418,945.
General revenues of $1,264,045 consist of benevolence received through the five synods, undesignated gifts, investment income, and the ELW Praise Offering. This general revenue forms the base of each year's budget.
The 2005 operating budget projects that $2,154,900 of program directed revenues will be sourced from gifts directed to specific program activities, endowment and trust interest, grants, royalties, service fees, cost recovery fees, fund raising activities and internally restricted reserves. Should any of this revenue not be sourced then the related activity expenditure will not be undertaken.
Program expense budgets have been developed based on each area's allotment of general funds plus all program directed revenues.
On the recommendation of our auditors, a new section will be included in future budgets to report on affiliated conferences and events such as the National Youth Gathering, Global Mission Events, the Worship Conference, and the Women's Conference. Committees coordinating these events will be required to submit a budget to the National Office and provide accounting of all revenues and expenses. As this information becomes available, it will be included in our financial records.
Budgets have been projected for 2006 & 2007. Assumptions used in preparing these budgets are: benevolence to remain the same as in 2005, program expenditures to remain flat, and an allowance for cost of living salary adjustments. Both 2006 and 2007 budgets project deficits of $23,205 and $45,605 respectively which will be covered from unrestricted net assets.
Page revised August 16, 2005.