The Living Word Transforming Lives. Annual Report 2012
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1 The Living Word Transforming Lives Annual Report 2012
2 A Message from the Board Our Mission: We are called by God to provide Scriptures and training worldwide so that people prepared by the Holy Spirit will be brought into relationship with Christ and His Church. Our Purpose:... because the world needs the Living Word of God more than anything else. The Living Word of God is transforming lives! The mandate of Bible League Canada is to place Bibles into the hands of men, women and children who are hungry for God s Word. The Book of Nehemiah states that Nehemiah and his team rebuilt the walls around Jerusalem in only 52 days, after they had been destroyed a few generations earlier. The Bible identifies many of his workers for us and what they did in rebuilding the wall. But there was a deep understanding, by the surrounding nations, that the work was done with the help of our God. (Nehemiah 6:16) We feel the same about this past year! In our fiscal year 2012, with the help of our God, more than 200,000 indigenous workers and church leaders in 43 nations were supplied with Bibles and Scripture resources. In turn, these workers brought the Good News to over 3.7 million people, resulting in 980,841 precious individuals who told us they became followers of Jesus. More than 8,700 new churches were planted. Missions Thrift Stores. These financial contributions helped to place Bibles and Scripture resources for the work of this ministry, as God has given us strength. Luke 15:10 (NIV) says there is rejoicing in the presence of the angels of God over one sinner who repents. We thank God for the transformative power of His Holy Spirit in the lives of each precious soul who has now come into a relationship with Jesus and His Church. Many of these people have known a lifetime of pain, want and hopelessness, but now their story has changed to one of joy, hope and gratitude. Their future is full of new possibilities. It is our prayer that as you read this report, you will rejoice and find your spirit stirred by what God has done! Thank you for your participation and partnership. Thank you for your faithfulness and generosity. Yours in Christ, These results would not have been possible without the support of faithful donors, like you, and ministry partners such as Bibles for Paul Richardson President John Hessels Chairman 2. Bible League Canada Annual Report
3 Ministry Summary Results Ministry Summary Results The apostle John begins his Gospel this way: In the beginning was the Word, and the Word was with God, and the Word was God. (John 1:1) While every religion has its foundational writings, only Jesus is the Logos the Living Word of God. While other organizations provide much needed water, food and education, Bible League Canada comes with the Living Word of God. As individuals are transformed, the effect is experienced by their village or community. They are then inspired by the Holy Spirit to adopt biblical values and to apply them as they address their basic needs and become self-sustaining. In this way, and by God s grace, the Living Word will impact generations. In this report, you will discover the impact of the Living Word of God on lives, communities and nations. Our faithful God has once again poured out blessings through the ministry of Bible League Canada and our partners here in Canada and around the world. We invite you to Come and see what our God has done, what awesome miracles he performs for people! Psalm 66:5 (NLT) Leaders/Teachers/Church Planters Trained: 2011: 2012: 67,307 97,178 The Bible says the Living Word of God is useful for training in righteousness. (2 Timothy 3:16). Bible League Canada is committed to training leaders, teachers and church planters. In 2012, some 97,178 men and women were trained using Bible League Canada materials, more than any other year, and up from 67,307 in Included in that number were leaders of adult Bible-based literacy programs, teachers in children s ministry programs and 3,618 church planters. New Learners Attended: 2011: 2012: 2,823,297 2,201,423 We are convinced that the greatest impact on individuals, communities and nations comes from national Christians who speak the same language and understand the culture. In 2012, those trained national leaders, along with other national Christian workers, presented the Good News of Jesus to 3,746,479 men, women and children, 2,201,423 of whom joined a Bible-based class or program. The Holy Spirit has prepared the hearts of many to be impacted by the Living Word of God. And we, who with unveiled faces all reflect the Lord s glory, are being transformed into his likeness with ever-increasing glory, which comes from the Lord, who is the Spirit. 2 Corinthians 3:18 (NIV) 4. Bible League Canada Annual Report
4 Ministry Summary Results I used to have no peace of mind. I knew that there was no salvation in the religion we used to practice. Now, I have assurance that I have salvation in Jesus. I feel so blessed. Bandu, a new Christian introduced to Jesus through a church planter in India New Followers of Jesus: 2011: 2012: 1,133, ,841 The Bible tells us: there will be more rejoicing in heaven over one sinner who repents than over ninety-nine righteous persons who do not need to repent. (Luke 15:7) When a man, woman, or child publicly professes their faith in Jesus Christ, joy abounds in heaven and on earth. We rejoice that this year, 980,841 individuals told us they became followers of the Lord Jesus. Please join us in praying for these new believers, that God would empower them to grow in grace and in their knowledge of the Lord Jesus Christ. New Churches Planted: 2011: 2012: 6,445 8,755 The 3,618 church planters that were trained in 2012 were busy with both training and the practical work of establishing a local congregation. God has richly blessed their efforts, and through the empowering of the Holy Spirit and because of their faithfulness, 8,755 new churches were started. This is an average of more than two new churches for each of these newly trained church planters. These nationals are impacting communities and nations. Bible League Canada does what it does because the world needs the Living Word of God more than anything else. We place the Word of God through our strategic ministry programs of Church Planter Training, Children s Ministry, Adult Bible-based Literacy and in support of the Persecuted Church. Because Scriptures are placed through these programs, we are able to receive regular reports of the impact they are having on individual lives. The Living Word of God truly is transformational transforming not only individuals, but also communities and nations. You will find below a chart that gives the number of Scriptures placed in 2012, through the strategic ministry programs around the world, and through churches and ministries across Canada. Scriptures Placed in 2012: Inside Canada Outside Canada Ministry Total Bibles 18, , ,716 Study Bibles 24,452 24,452 New Testaments 4, , ,873 Children s Scriptures 126,614 2,177,528 2,304,142 Portions/Selection/Booklets 150,281 1,697,231 1,847,512 Total 299,294 4,271,401 4,570, Bible League Canada Annual Report
5 Ministry Summary Results Revenue Summary We are able to do what we do by the grace of God and the generous gifts from partners and supporters across Canada, and from those whom we serve in over 40 countries around the world. We wish to express thanksgiving to God for our strong and unique partnership with Bibles for Missions Thrift Stores across Canada, and the growing partnership with other ministry partners. Through these partnerships and the support of faithful Canadian donors, we are able to do so much more and impact new territories with the Good News. The financial reports are found on page of this report. As you take time to read them, please be aware that those whom we serve in over 40 countries worldwide also provide funds through helping with the cost of training, programs and Scripture placement. As churches mature in these nations, there is a growing desire among Christians to help support Church Planter Training, Children s Ministry Programs, Adult Bible-based Literacy and Persecuted believers in their own countries and regions of the world. The following chart provides a summary of sources of Canadian generated income: 57.8% BFM Thrift Stores 35.3% Contributions, interest and other revenue 5.1% The Gideons International in Canada 1.9% Publication Sales Disbursements Summary The disbursements section of the financial statements can be found on pages and are summarized in the following chart: 73% International Missions Administration and Fundraising We are committed to keeping administrative costs as low as possible. We are able to do this because of the hard work of Bible League Canada staff and the partnerships in the countries where we minister. The following are the administration and fundraising costs for A detailed breakdown is found on page % Fundraising 17.5% Canadian Ministry 4.1% Administration 9.5% Fundraising and Administration The following chart provides a summary of sources of Internationally generated income: 53.1% BFM Thrift Stores 32.5% Contributions, interest and other revenue 8.1% On-Field Contributions 4.7% The Gideons International in Canada 1.7% Publication Sales 8. Bible League Canada Annual Report
6 Ministry Summary Results I am a farmer during the day. At night I work for the Kingdom of God. I am not tired because God is faithful. He gives me everything I need. There is nothing that I carry as a weapon because I believe in this Word. The Lord has continued to protect me. He is my Shepherd, my supporter. Abasi, church planter in Ethiopia Volunteers: BFM Volunteers BFM Contributions 2,941 $6,956,393 Bible League Canada is grateful to God for the many volunteers who provide their time and faithful service across Canada and in the over 40 countries in which we minister. Bibles for Missions Thrift Stores thrive because of some 2,941 volunteers who provide many thousands of hours of their time. We pray God s blessing on each one. Through the labours of these faithful men and women, God provided $6,956,393 for the work of Bible League Canada. As well, in over 40 countries around the world where the work of Bible League Canada takes place, some 206,630 indigenous volunteers are giving generously of their time to impact their communities and nations. Indigenous Volunteers 206, # of Countries Once again this year the hand of God s blessing has been upon Bible League Canada. We are truly humbled by the reports we receive from across Canada and around the world. With every transformed life and changed community we become even more convinced that our driving inspiration is correct: because the world needs the Living Word of God more than anything else. Jesus, the Living Word, works through the Bible, His Living Word and His Living Church, and as a result lives are forever changed. Nehemiah 6:16 says, they realized that this work had been done with the help of our God. We also thank you, our friends, who have faithfully supported the work of this ministry, and our partners. Because of your support, the Word of God is going into the nations proclaiming Jesus Christ is Lord! 10. Bible League Canada Annual Report
7 Ministry Programs Overview The LORD has done great things for us, and we are filled with joy. Psalm 126:3 (NIV) Ministry Programs Overview Bible League Canada is committed to placing the Bible into the hands of men, women and children who have requested one. We are deliberate and intentional about our work, using four strategic ministry programs to introduce people to Jesus through His Word. 12. Bible League Canada Annual Report
8 Ministry Programs Overview Church Planter Training We partner with local churches, leaders, Christian men and women, and local governments, providing training and discipleship resources. We equip church planters with the necessary knowledge, skills and tools to be more effective in sharing the Good News within their local city, village or community. Church planter training is unique in the various regions where we work. Each individual is pre-approved for training by Bible League Canada and, depending on their region, will study for approximately months. During this time, they study biblical truths and principles, are mentored and plant 1 or 2 churches. We thank God for the 3,618 church planters trained and 8,755 churches planted in Many newly trained church planters face much persecution and resistance to the Good News, but they are determined to serve God regardless of the cost. I have become its servant by the commission God gave me to present to you the word of God in its fullness Colossians 1:25 (NIV) I am the only worker who remained in the area. There had been seven workers, but they each left, one by one. I stayed here, praying over the city. And crying to our God, God, help us to start the ministry here. And I don t know how, but it s happened. Anita, church planter in Macedonia 14. Bible League Canada Annual Report
9 Ministry Programs Overview Habtamu Jesus looked at them and said, With man this is impossible, but with God all things are possible. Matthew 19:26 (NIV) Until four years ago Habtamu had been a part of the national Church. I had many questions, but I was filled with hate for evangelical beliefs, he said. When a friend started witnessing to him, Habtamu struggled and refused to listen. This friend took time to reason with him, persisting and showing him love though Habtamu was angry with him. Eventually, Habtamu accepted Jesus Christ as his Saviour. Habtamu had a passion that could not be stifled. He started thinking about all the people who did not know Jesus. He began attending a local evangelical church and started witnessing to others. Within a few months of being saved he led two people to the Lord. The numbers kept increasing and the people started coming together to worship. The 21-year-old began shepherding approximately 150 people in his little church. They had no building of their own and met in a little rented traditional mud building that only housed a fraction of the people. The rest had to stand or sit outside, filling up the small yard around the building. But still he had no Bible in his own language. Without His Word we cannot stand, Habtamu said. Having a Bible allows for a closer walk with God. It helps people to be obedient to God, and brings people together around the Word. It helps a person stand strong in God. Without the Bible there is no foundation. You can t live without it. Habtamu s passion is to spread the gospel. It is hard to do with no Bible. When we have the Word of God, we can take this Bible to them and expand the work in those areas, he said. He envisions ministry to 18 villages, a four-hour distance by foot. Habtamu hopes - trusts God - for a building for his church. We believe that the Lord will give us a place, he said, because God will provide for us because we do His work. He will honour His work. That s why we trust. Habtamu perseveres through hardships and challenges because his burden is so great. The burden would not let me just settle, he said. It also helps me stay focused. I have to complete it. I look at His face and I follow Him, Habtamu said. At the end of this year, Habtamu received his first Bible in his own language: an Oromo Bible. 16. Bible League Canada Annual Report
10 Ministry Programs Overview Children s Ministry Children are often the most receptive to the Good News! Their enthusiasm and transformation after they have come to know the love and hope in Jesus is infectious and affects families and whole communities. Around the world Children s Ministry takes various forms. For example in the Philippines and South Sudan, biblical values are taught in schools. In India and Eastern Europe, Children s Bible Clubs introduce young people to Jesus through songs and Bible stories. However, the impact of the Good News is the same wherever it is preached children are transformed by the Living Word of God. Parents have testified to the changes in their children s behaviour and attitude, once they attend one of our Children s Ministry programs and how through the child s prayers of faith, families have been restored and lives transformed. O LORD, our Lord, your majestic name fills the earth! Your glory is higher than the heavens. You have taught children and infants to tell of your strength, silencing your enemies and all who oppose you. Psalm 8:1-2 (NLT) Igor For most of his life, Igor has not known what it feels like to be loved. His parents are rarely home, and when his father is home Igor is regularly beaten. At only 11 years old, Igor lives a difficult life. But this past summer, his village in Moldova held a summer camp for children. Igor attended, and was introduced to the love of Jesus. The leaders and teachers were so caring it was obvious to Igor that something was different about these people. He soon accepted Jesus into his heart and now prays that God will transform his parents lives as well. 18. Bible League Canada Annual Report
11 Ministry Programs Overview Adult Bible-based Literacy Most of the people groups still unreached by the gospel live in places stretching across northern Africa and Asia. Christian missions strategist Luis Bush started calling this rectangular area or band: the 10/40 Window. He used that easy-to-remember name because it lies across Africa and Asia from 10 degrees latitude north of the equator to 40 degrees latitude north of the equator. The World Evangelism Organization states, Of the 55 least evangelized countries, 97% live within the 10/40 window. Other facts state 85% of those living in this region are the poorest in the world and Islam, Buddhism and Hinduism are the predominate religions. In some communities it is almost impossible to enter and share the Good News because of religious opposition. However, when we come with education classes, teaching men and women to read and write, we are welcomed. Literacy classes liberate attendees in all facets of their lives. Students commit to 2 hour classes per day, 5 days a week for 52 weeks. Each lesson introduces the student to Jesus through Bible stories and practical life skills training. For many, the classes bring hope for a better future and new possibilities. Then you will understand what is right, just, and fair, and you will find the right way to go. For wisdom will enter your heart, and knowledge will fill you with joy. Wise choices will watch over you. Understanding will keep you safe. Proverbs 2:9-11 (NLT) My biggest fear used to be that something terrible would happen if I displeased the gods. Then I joined a literacy class. I learned about Jesus a God who sacrificed Himself for me! Now Jesus is my everything. I don t have to be afraid anymore. Keetha, India 20. Bible League Canada Annual Report
12 Ministry Programs Overview Overflowing with Joy Looking at her big smile now, you wouldn t guess that Kajani once summed up her life in one word: painful. Kajani was married at age 13. She worshipped her family s god and practiced pain sacrifices, which included piercing her cheeks and walking on hot coals. Kajani also presented sacrifices to the god, hoping it would bless her with prosperity. Instead, she says, Nothing went right. In a span of just three months, Kajani s two children a son and a daughter - both died. In spite of her pleas to the gods of her village, Kajani lost both her children to treatable diseases. She was crushed. It s my fault my children died, she thought. Dousing her body in kerosene, she tried to burn herself to death. Her husband stopped her. The couple moved to a new village, hoping for a fresh start. Kajani enrolled in an Adult Bible-based Literacy Class. When she developed chest pains, the class prayed to Jesus. And Kajani was healed! Finally, Kajani had found a God who answers prayers! During her class, Kajani received Jesus as her Saviour. She gave Jesus all her troubles and pain, and realized she was not guilty for the death of her children. Peace filled her heart for the first time. Kajani led her husband to faith in Christ, too. She says, God s Word has been my encouragement. If I couldn t read, I couldn t be encouraged. Kajani started saving during her class. After graduating, Kajani bought a goat with the money she had saved. She bred the goat. Now, she raises at least 10 new goats each year! She sells them for profit, and her new literacy skills help her get a fair price. But Kajani says that the most important thing she gained from her Adult Bible-based Literacy Class is Jesus. Kajani brought more than 20 people to Christ in her village and has started a house church. She s being trained as a church planter. God is my source of hope, and telling others about Jesus has given my life new purpose, she says. What word does Kajani use to describe her life now? Joy. 22. Bible League Canada Annual Report
13 Supporting the Persecuted Church Persecution of Christians takes different forms in countries around the world. Some tolerate Christians or restrict Christian worship, while others impose severe punishment if a Christian is discovered practicing their faith or has a Bible. However, in these dark places the Good News is shared and the Church of Jesus Christ is vibrant and growing rapidly. Bible League Canada and its partners are actively supporting Christians who are being persecuted for their faith. We creatively provide Bibles and discipleship materials to help our brothers and sisters grow in their faith and knowledge of God s Word. The risk is great. Many are beaten; some are attacked and some are killed. But the demand for God s Word is increasing. Our persecuted brothers and sisters continue to ask us to pray for strength and for more Bibles. We work hard with our own hands. When we are cursed, we bless; when we are persecuted, we endure it; when we are slandered, we answer kindly. Up to this moment we have become the scum of the earth, the refuse of the world. I Corinthians 4:12-13 (NIV) Ministry Programs Overview Struck Mute Edwin was a gun seller in Ecuador. He thrived on the unstable political climate and corrupt policies because he could sell more guns. He had no interest in religion. Then, one day, Edwin was struck mute. Panicking, Edwin turned to the new church in his community. The pastor there taught Edwin about Jesus, and how He cured the mute and the sick. When Edwin received Christ as his Saviour, he was suddenly able to speak again! Eager to share his new faith, Edwin felt called to plant a church in his own community. He started with a handful of leaders and forty other believers. Today, the church planted by a converted gun runner is the mother of 56 planted churches! 24. Bible League Canada Annual Report
14 Ministry Programs Overview Multicultural Ministry Our church is growing and our members are grateful to Bible League Canada for the Bibles they received as a result of your generosity. Pastor John Isidahomen, Wings as Eagles Ministries Two years ago Pastor John was called by God to pioneer a multi-cultural church in Mississauga, Ontario. The church is comprised mostly of new Canadians from Africa, 90% of whom were new Christians without a Bible or the capacity to buy one. They prayed to God to answer this urgent need. Bible League Canada offers a Bible grant program to churches, organizations and ministry-minded individuals. When we heard of Pastor John s church, we were able to come alongside them and provide all the Bibles they needed. Canada is experiencing an increase in cultural diversity, particularly in major city centres such as Toronto, Vancouver and others. God is bringing the nations of the world to Canada! The Christian community across Canada is addressing the changing cultural trends, but this creates a greater need for discipleship resources. Bible League Canada comes alongside denominations, local churches and leaders like Pastor John who are reaching out to new Canadians, visible minority groups and First Nations by providing Bibles and discipleship resources. We thank God for every opportunity to share the Living Word of God across our nation. Please pray for young, developing, multi-cultural congregations across Canada who desperately need Bibles. Canadian Ministry Bible League Canada is passionate about spiritual growth and evangelism at home in Canada. We believe the world needs the Living Word of God more than anything else and this includes our own families, friends and communities. To equip Canadian Christians, Bible League Canada provides reasonably-priced Scriptures and discipleship resources to: 1. Help individuals and the church community grow spiritually mature; 2. Help Canadian Christians look in their own communities and beyond for opportunities to share the Good News of Jesus Christ. All proceeds from Bible League Canada s resource sales go to providing ministry grants to churches who cannot afford Bibles of their own. This means every dollar spent on resources is devoted to Bible League Canada s mission to place Bibles in the hands of men, women and children who have requested them. Please pray for the Canadian Church to flourish, and for growing awareness of the opportunities they have to impact their world for Christ! I want to express my appreciation for the 2013 Devotional Day Planner sent to me. I believe it will go a long way in strengthening me spiritually. I am grateful. BN, Manitoba 26. Bible League Canada Annual Report
15 Financial Statements Special Thank You! Bible League Canada is deeply grateful to the following funders who, during our fiscal year 2012, provided generous grants through the Stronger Together group of funders towards our Expanding Distribution Capacity through Digital Biblical Resources project proposal. Their combined grants are assisting in the development and reproduction of digital collections of the Bible, study materials, and audio/visual content in ten languages. These will be distributed through indigenous Bible League Canada partners in Canada (among multi-cultural groups) and countries around the world, resulting in transformed lives. Thank you Bridgeway Foundation D.H. Falle Family Foundation John and Rebecca Horwood Legacy Foundation Cloutier Family Fund Micah Foundation Independent Auditor s Report To the Directors of Bible League Canada I have audited the accompanying financial statements of Bible League Canada, which comprise the balance sheet as at August 31, 2012, and the statement of revenues and expenses, statement of changes in fund balances and statement of 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 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 s Responsibility My responsibility is to express an opinion on these financial statements based on my audit. I conducted my audit in accordance with Canadian generally accepted auditing standards. Those standards require that I 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 amounts 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 those risk assessments, the auditor considers internal control relevant to the organization s preparation 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 on the effectiveness of the organization s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the presentation of the financial statements. 28. Bible League Canada Annual Report
16 Financial Statements I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my qualified audit opinion. Basis for Qualified Opinion As described in note 2(b), the organization expenses inventories located outside of Canada in the year of purchase. Canadian generally accepted accounting principles require that a not for profit organization record inventories at the lower of cost and current replacement cost when they are held for distribution at no charge or a nominal charge. Because the organization has its inventories stored at many worldwide locations, management considers the costs and difficulties of verifying these inventories are not justified and would take significant resources away from its ministry. Since I have been unable to obtain information with respect to all inventories, I am unable to estimate what the inventories carrying value should have been nor am I able to estimate the related effect on expenses and the excess of revenues over expenses. Qualified Opinion In my opinion, except for the effects of the matter described in the Basis of Qualified Opinion paragraph, the financial statements present fairly, in all material respects, the financial position of Bible League Canada as at August 31, 2012, and of its financial performance and its cash flows for the year then ended in accordance Canadian generally accepted accounting principles. BALANCE SHEET AS AT AUGUST 31, 2012 ASSETS CURRENT ASSETS Cash $ 252,518 $ 125,123 Accounts receivable 132, ,371 Inventories 57, ,448 Note receivable current portion - 5,946 Prepaid expenses 292, , , ,095 CAPITAL ASSETS (notes 2(c) & 3) 683, ,962 NOTE RECEIVABLE (note 4) - 2,192 LIABILITIES CURRENT LIABILITIES $ 1,417,890 $ 1,382,249 Accounts payable and accrued liabilities $ 81,248 $ 90,270 FUND BALANCES General (Unrestricted) (page 32) 1,336,642 1,291,979 $ 1,417,890 $ 1,382,249 Hamilton, Ontario November 10, 2012 Chartered Accountant, Licensed Public Accountant 30. Bible League Canada Annual Report
17 Financial Statements I was three when my father was killed in battle. I didn t understand why my daddy was not coming back. I was angry and hated the war, and hated the Arabs. But God took away her pain. I am proud of my dad, who fought so that we have a nation, our own church, and a freedom to be Christian. I am no longer forced to go to an Islamic school. Poni, 13, South Sudan STATEMENT OF REVENUES AND EXPENSES FOR THE YEAR ENDED AUGUST 31, 2012 REVENUES Contributions received $ 4,840,331 $ 4,011,476 BFM Thrift Stores 6,956,393 5,589,973 Publication sales 223, ,916 Interest and other revenue 21,686 4,568 12,042,088 9,877,933 EXPENSES (page 33) 11,997,425 10,139,302 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENSES $ 44,663 $ (261,369) STATEMENT OF CHANGES IN FUND BALANCES FOR THE YEAR ENDED AUGUST 31, Balance, beginning of year $ 1,291,979 $ 1,553,348 Excess (deficiency) of revenues over expenses 44,663 (261,369) Balance, end of year $ 1,336,642 $ 1,291,979 SCHEDULE OF EXPENSES FOR THE YEAR ENDED AUGUST 31, 2012 INTERNATIONAL CANADIAN ADMINISTRATION FUNDRAISING 2012 TOTAL 2011 TOTAL MINISTRY PROJECTS MINISTRY PROJECTS Africa and Arab countries $ 1,487,297 $ - $ - $ - $ 1,487,297 $ 1,324,254 Asia 1,193, ,193, ,489 India 2,527, ,527,111 2,783,502 Eastern Europe and CIS 1,378, ,378,083 1,151,703 South and Central America 1,595, ,595, ,501 International review 52, ,469 26,700 Amortization building ,736-20,736 19,865 Amortization computer equipment - - 2,681-2,681 3,567 Amortization furniture and equipment - - 7,256-7,256 5,108 Amortization software ,208-29,208 29,208 Bad debts ,310-14,310 17,828 Bank charges ,364-31,364 29,493 Computer expenses 6,405 38,473 11,198 12,666 68, ,399 Contracted services - 132,369 13,125 40, , ,690 Digital ministries 235, , ,949 Insurance 958 4,705 1,888 1,888 9,439 9,542 Mailings - 54,570-55, ,062 92,209 Ministry materials and services - 202,609-51, ,972 60,271 Ministry publications and supplies 2, ,274 4,635 4, , ,664 Office supplies and dues 6,647 30,992 22,940 12,499 73,078 85,509 Organization and stakeholder advancement 10,203 21,512 3,181 6,200 41, ,018 Partnership ministries - 25, ,049 25,000 Postage 3,393 16,768 6,451 6,213 32,825 29,920 Professional fees ,527-10,527 12,268 Property taxes 1,050 4,627 1,582 1,531 8,790 8,608 Repairs and maintenance 1,080 10,615 2,008 1,906 15,609 25,078 Salaries and benefits 254, , , ,030 1,801,233 1,629,394 Telecommunications 1,458 9,778 3,020 1,893 16,149 22,070 Travel and public relations - 65,955 22,132 68, , ,348 Utilities 1,233 5,705 2,282 2,045 11,265 10,147 TOTAL $ 8,757,875 $ 2,100,053 $ 493,211 $ 646,286 $ 11,997,425 $ 10,139, Bible League Canada Annual Report
18 Financial Statements STATEMENT OF CASH FLOWS FOR THE YEAR ENDED AUGUST 31, 2012 ASSETS CASH FROM OPERATING ACTIVITIES Excess (deficiency) of revenues over expenses $ 44,663 $ (261,369) Adjustments for items not affecting cash Amortization 59,881 57,748 Loss on disposal of capital assets ,544 (203,621) Changes in non cash working capital balances Accounts receivable 24,907 (102,277) Inventories 67,314 51,130 Prepaid expenses (35,974) 549,073 Accounts payable and accrued liabilities (9,022) (88,450) Loan receivable 5,946 (59) 157, ,796 CASH FROM FINANCING AND INVESTING ACTIVITIES Additions to capital assets (32,512) (337,768) Disposals of capital assets - - Decrease (increase) in long term loan receivable 2,192 5,946 (30,320) (331,822) INCREASE (DECREASE) IN CASH 127,395 (126,026) CASH, beginning of year 125, ,149 CASH, end of year $ 252,518 $ 125,123 Purpose of the Organization The organization was founded in 1948 and was incorporated as a corporation without share capital by letters patent under the Canada Corporations Act in The corporation is a registered charitable organization and is therefore exempt from the payment of income taxes as provided under the Income Tax Act. Its purpose is to provide Scriptures and training worldwide so that people prepared by the Holy Spirit will be brought into relationship with Christ and His Church. Summary of Significant Accounting Policies (a) Revenue Recognition The organization follows the deferral method of accounting for contributions. Restricted donations and grants are recognized as revenue in the year in which the related expenses are incurred. Unrestricted donations and grants are recognized as revenue in the year received or receivable if the amount to be received can be reasonably estimated and collection is reasonably assured. Revenues from sales of publications are recognized when there is persuasive evidence that an arrangement exists, delivery has occurred, the price is fixed and determinable, and collection is reasonably assured. (b) Inventories Inventories held in Canada are recorded on the balance sheet at the lower of cost and net realizable value. Inventories held in other countries are not recorded on the balance sheet but are expensed fully in the year of purchase. (c) Capital Assets Capital assets are recorded at cost. Contributed capital assets are recorded at fair value at the date of the contribution. Amortization is provided on capital assets using the straight line method over the useful life of the assets at the following annual rates: Building 4% Furniture and equipment 20% Computer software 10% Computer equipment 33% (d) Use of Estimates The preparation of financial statements in accordance with generally accepted accounting principles 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 amounts of revenues and expenses during the reporting year. Actual results could differ from management s best estimates, as additional information becomes available in the future. 34. Bible League Canada Annual Report
19 Financial Statements (e) Volunteer Services Because volunteer services are not remunerated by the organization and the difficulty in determining their fair market value contributed services are not recognized in the financial statements. (f ) Foreign Currency Translation Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate in effect at the balance sheet date. Revenues and expenses are translated at the exchange rate prevailing at the date in which the transaction took place. Foreign exchange gains and losses are included in the statement of revenues and expenses. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED AUGUST 31, 2012 CAPITAL ASSETS (g) Future Accounting Standards The organization has an option to choose between two new financial reporting standards that can be applied for future year ends beginning with the fiscal year ending August 31, The organization has the option of adopting International Financial Reporting Standards or Accounting Standards for Not for Profit organizations. Management is required to decide which accounting standard will be adopted by the organization. At this time, the impact on the organization s future financial position has not been determined. COST ACCUMULATED NET NET AMORTIZATION Land $ 267,500 $ - $ 267,500 $ 267,500 Building 518, , , ,239 Furniture and equipment 62,685 45,527 17,158 13,672 Computer equipment 10,702 10,702-2,681 Computer software 292,078 58, , ,870 OTHER ASSETS Note receivable from employee, 1% interest, repayable in monthly $ 1,151,367 $ 467,774 $ 683,593 $ 710,962 installments of $500, due January 2013 $ - $ 8,138 Less: current portion - 5,946 $ - $ 2,192 Contingencies Bible League Canada is a joint venture partner of BFM Foundation (Canada) and each of its member BFM Thrift Stores. All net revenue generated by each of the BFM Thrift Stores is, by the terms of the joint venture agreements, to be for the beneficial interest of Bible League Canada. BFM Foundation (Canada) has established a fund to assist with the opening of new BFM Thrift Stores in communities across Canada. All funds received by BFM Foundation (Canada) from its member BFM Thrift Stores are used: (a) to increase the equity in the BFM Thrift Stores, and (b) to be contributed to Bible League Canada with the express purpose to place Scriptures and provide training in certain specified countries or regions. As of December 31, 2011, Bible League Canada s restricted equity in BFM Foundation (Canada) was estimated at $6,304,329 (December 31, 2010 $5,801,890). Approximately 50% of the unaudited financial statements of the BFM Thrift Stores were prepared internally and 50% were prepared by external accountants. Commitments Under the terms of various agreements and contracts, the organization will be required to make future annual payments of $2,828,642 in Financial Instruments The organization s financial instruments include cash, accounts receivable, and accounts payable. Unless otherwise noted, it is management s opinion that the organization is not exposed to significant interest rate and credit risks arising from its financial instruments. The fair values of these financial instruments approximate their carrying values, unless otherwise noted. (a) Liquidity Risk Liquidity risk arises through having excess financial obligations over available financial assets at any point in time. The organization s objective in managing liquidity risk is to maintain sufficient readily available reserves in order to meet its liquidity requirements at any point in time. The organization achieves this by maintaining sufficient cash and cash equivalents. (b) Foreign Currency Risk Management is aware that the organization is exposed to changes in the exchange rates as it receives contributions, pays for expenses, and provides grants in various foreign currencies. Comparative Figures Certain comparative figures on the statement of revenues and expenses have been reclassified to conform to the current year s presentation. 36. Bible League Canada Annual Report
20 All glory to him who alone is God, our Saviour through Jesus Christ our Lord. All glory, majesty, power, and authority are his before all time, and in the present, and beyond all time! Amen. Jude 1:25 (NLT) Lives are being transformed! Men, women and children are coming to know Jesus as their personal Saviour through His Word and the transformative power of the Holy Spirit. We give thanks to our God who is doing great and marvelous things around the earth. Thank you for your prayers and donations that have made it possible for Bible League Canada to reach nations with the Good News. Thank you for your support and partnership. because the world needs the Living Word of God more than anything else! 38. Bible League Canada Annual Report
21 We have seen the children transforming. Their behaviour has improved and we see that the parents are happy. We know this is because we are giving them a biblical foundation. It is good to always be learning and to do this work. It is time to multiply the Kingdom of God. Richard Alvarado, church planter in Ecuador Bible League Canada 3067 Mainway Burlington, ON L7M 1A ministry@bibleleague.ca bibleleague.ca
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