CANADIAN CATHOLIC ORGANIZATION FOR DEVELOPMENT AND PEACE

Transcription

1 Financial Statements of CANADIAN CATHOLIC ORGANIZATION FOR

2 KPMG LLP Telephone (514) Chartered professional accountants Fax (514) de Maisonneuve Blvd. West Internet Suite 1500 Tour KPMG Montréal (Québec) H3A 0A3 INDEPENDENT AUDITORS REPORT To the Members of the National Council of the Canadian Catholic Organization for Development and Peace. We have audited the accompanying financial statements of the Canadian Catholic Organization for Development and Peace (the Organization ), which comprise the balance sheet as at August 31, 2012, the statements of revenues and expenses, changes in net assets and cash flows for the year then ended, and notes, comprising 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. Auditors 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 auditing 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 amounts and disclosures in the financial statements. The procedures selected depend on our 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, we consider 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 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 overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified audit opinion. KPMG LLP is a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. KPMG Canada provides services to KPMG LLP.

3 Page 2 Basis for the Qualified Opinion In common with many charitable organizations, the Organization derives revenues from donations, the completeness of which is not susceptible to satisfactory audit verification. We were not able to determine whether, as at and for the years ended August 31, 2012 and August 31, 2011, any adjustments might be necessary to donation revenues and excess of revenues over expenses reported in the statement of revenues and expenses, excess of revenues and expenses reported in the statement of cash flows and current assets and unrestricted net assets reported on the balance sheet. This caused us to qualify our audit opinion on the financial statements as at and for the year ended August 31, Qualified Opinion In our opinion, except for the possible effects of the matter described in the Basis for Qualified Opinion paragraph, the financial statements present fairly, in all material respects, the financial position of the Organization as at August 31, 2012, and its results of operations and its cash flows for the year then ended in accordance with Canadian generally accepted accounting principles. December 1, 2012 Montréal, Canada *CPA auditor, CA, public accountancy permit No. A109021

4 Financial Statements Financial Statements Balance Sheet... 1 Statement of Revenues and Expenses... 2 Statement of Changes in Net Assets... 3 Statement of Cash Flows... 4 Notes to Financial Statements... 5 Schedules Schedule A - Revenues Schedule B - Expenses - International Development Program Schedule C - Expenses - Education Department Schedule D - Expenses - Advancement Department Schedule E - Expenses - Governance and General Operations... 21

5 Balance Sheet August 31, 2012, with comparative information for 2011 Assets Current assets: Cash $ 8,287,900 $ 8,170,540 Short-term investments (note 2) 24,622,260 22,073,725 Accounts receivable (note 4) 2,395,268 2,640,641 Prepaid expenses 11,101 36,332 35,316,529 32,921,238 Investments (note 2) 301, ,133 Capital assets (note 6) 344, ,216 Liabilities and Net Assets $35,962,188 $33,733,587 Current liabilities: Accounts payable and accrued liabilities (note 7) $ 1,000,402 $ 677,373 Deferred contributions - Development programs (note 8) 25,441,513 21,609,616 Current portion of obligations under capital leases (note 9) 18,580 97,466 26,460,495 22,384,455 Obligations under capital leases (note 9) 118,225 Non-repayable loans 156, ,188 Net assets: Invested in capital assets 325, ,525 Internally imposed restrictions 3,870,247 3,682,509 Restricted for endowment purposes 1,093,679 1,049,377 Unrestricted 4,054,935 6,042,308 9,344,759 11,056,719 Commitments (note 11) Contingency (note 13) $35,962,188 $33,733,587 See accompanying notes to financial statements. On behalf of the Board: Director Director 1

6 Statement of Revenues and Expenses, with comparative information for 2011 Revenues (Schedule A) $ 27,082,195 $ 33,837,830 Expenses: International Development Program (Schedule B) Regular programs 6,838,927 15,181,743 Special activities 5,989,847 3,299,666 Emergency relief programs 6,975,397 6,976,663 Operational costs - International development program 1,155,538 1,416,596 20,959,709 26,874,668 Education Department (Schedule C) Education program for international solidarity 651, ,004 Social justice program in Canada 203, ,750 Operational costs 1,984,208 1,909,924 2,838,780 2,871,678 Québec sans frontières 127, ,415 2,966,422 3,054,093 Advancement Department (Schedule D) Communications program 115, ,996 Fundraising program 552, ,657 Operational costs 735, ,478 1,402,914 1,766,131 Governance and General Operations (Schedule E) Governance 224, ,681 General management 400, ,706 Administrative services 837, ,123 Structural expenses 957, ,634 Operating fund 9,841 16,043 Other activities 78,725 62,506 New initiatives 264, ,289 2,771,674 3,179,982 Other: Amortization of capital assets 211, ,634 (Gain) loss on disposal of investments (138,090) 137,405 Restructuration and related expenses (note 7) 795,512 71,891 Adjustments on projects (69,885) Gain on capital assets returned to the lessor (10,894) Retroactive salary adjustment 680 (136,666) 858, ,379 28,958,955 35,085,253 Deficiency of revenues over expenses $ (1,876,760) $ (1,247,423) See accompanying notes to financial statements. 2

7 Statement of Changes in Net Assets, with comparative information for 2011 Internally imposed restrictions Restricted Restricted for Restricted for Asia Total Restricted Invested for the emergency Institutional Restricted development recon- Institutional internally for in capital orientation relief renewal for reserve programs Restricted struction relaunch imposed endowment assets assembly programs fund fund (note 8) for projects fund fund restrictions purposes Unrestricted Total Total Balance, beginning of year $ 282,525 $ 78,199 $ 120,000 $ 200,000 $ 2,500,000 $ 288,093 $ 59,907 $ 136,310 $ 300,000 $ 3,682,509 $ 1,049,377 $ 6,042,308 $ 11,056,719 $ 12,401,968 (Deficiency) excess of revenues over expenses (211,028) (i) 2, ,841 (9,841) (5,485,047) (5,239,467) 3,573,735 (1,876,760) (1,247,423) Endowment contributions 44,302 44,302 32,793 Investment in capital assets 254,401 (254,401) Internally imposed restrictions 9,841 5,613,581 (59,907) (136,310) 5,427,205 (5,427,205) Unrealized gain (loss) on available-for-sale investments (note 3) 120, ,498 (130,619) Balance, end of year $ 325,898 $ 80,779 $ 372,841 $ 200,000 $ 2,500,000 $ 416,627 $ $ $ 300,000 $ 3,870,247 $ 1,093,679 $ 4,054,935 $ 9,344,759 $ 11,056,719 (i) Represents amortization of capital assets See accompanying notes to financial statements. 3

8 Statement of Cash Flows, with comparative information for 2011 Cash flows from operating activities: Deficiency of revenues over expenses $ (1,876,760) $ (1,247,423) Adjustments for: Amortization of capital assets 211, ,634 Write-off of estates receivable 82,888 (Gain) loss on disposal of investments (138,090) 137,405 Gain on capital asset return to the lessor (10,894) Amortization of the premium on obligations acquired 102,906 21,556 Changes in non-cash working capital items: Accounts receivable 245,373 2,460,651 Prepaid expenses 25,231 3,705 Accounts payable and accrued liabilities 323,029 (100,741) Deferred contributions - Development programs 3,831,897 (1,323,255) 2,713, ,420 Cash flows from financing activities: Endowment contributions 44,302 32,793 Repayment of obligations under capital lease (67,076) (87,570) Decrease in non-repayable loans (17,254) (28,425) (40,028) (83,202) Cash flows from investing activities: Acquisition of capital assets (176,431) (117,580) Additions to investments (14,374,343) (15,701,569) Disposal of investments 11,994,442 19,474,480 (2,556,332) 3,655,331 Net increase in cash 117,360 3,814,549 Cash, beginning of year 8,170,540 4,355,991 Cash, end of year $ 8,287,900 $ 8,170,540 Supplemental cash flow information: Cash paid during the year for: Interest paid $ 1,157 $ 11,433 Non cash investing activities: Net value of capital assets under a capital lease returned to the lessor 119,141 Termination of an obligation under a capital lease due to the return of capital assets to the lessor (130,035) See accompanying notes to financial statements. 4

9 Notes to Financial Statements The Canadian Catholic Organization for Development and Peace (the Organization ) is a registered charity, incorporated by letters of patent under Part II of the Canada Corporations Act, contributing through its humanitarian actions, to solving social problems throughout the world. In order to maintain its registered charity status, the Organization must meet certain spending requirements ( disbursement quota ) according to the Income Tax Act. The disbursement quota is a minimum amount that the registered charity must spend on charitable programs or as gifts to qualified donees. Failure to comply with this requirement could lead to a revocation of the Organization s registered charity status. As at August 31, 2012, the Organization complies with the requirements. 1. Significant accounting policies: The financial statements have been prepared in accordance with Canadian generally accepted accounting principles and include the following significant accounting policies: (a) Description of funds: (i) Unrestricted funds: The unrestricted funds include the current operating activities of the Organization. The balance is composed of the excess of revenues over expenses, less the net amount invested in capital assets and received for endowment purposes. (ii) Funds invested in capital assets: The funds invested in capital assets comprise the amortized cost of office equipment, computer equipment, leasehold improvements, cable equipment, equipment held under capital leases, net of the obligations under capital leases. (iii) Funds restricted for endowment purposes: The Organization has 11 endowment funds. The revenues from these funds are included in the fund itself and a percentage of the profits generated is used to finance development projects in the Global South, when the amounts generated are significant enough to be used. (iv) Development fund: Restricted for the orientation assembly The fund aims to finance Assembly Orientation, which occurs every five years. An annual transfer of $25,000 from the unrestricted funds and the interest income generated from the unrestricted balances enriched the fund over the years. A resolution was adopted to suspend the annual transfer of $25,000 for fiscal years ending August 31, 2010, 2011 and

10 Notes to Financial Statements, Continued 1. Significant accounting policies (continued): (a) Description of funds (continued): (iv) Development fund (continued): Restricted for emergency relief programs To ensure that the Organization can provide constant work in emergency relief, this fund aims to cover the possibility that, for a given fiscal year, administrative costs generated by the campaigns for emergency relief would not be sufficient to cover the operational costs associated with managing each of those emergencies. Institutional renewal fund This fund aims to finance training or adaptation initiatives for the workforce due to technological or structural changes, which fall outside of regular training budgets included in current operations. Restricted for reserve fund This fund is the unallocated reserve of the Organization and represents the amount that would be required to cover part of the operations in case of termination of its activities. Restricted for development programs This fund contains deferred contributions and internal restrictions related to the International Development Program (note 8), as well as reductions or cancellations of projects to ensure that these funds be used later for the International Program. Restricted for projects This fund contains the commitments by Development and Peace on its own projects from which it cannot withdraw (note 11). Asia reconstruction fund Created in 2005 following the tsunami and based on the management fees generated by two bilateral agreements with the Canadian International Development Agency ( CIDA ) under the pairing program, this fund aims to ensure that this sum will be devoted to covering the operational costs required for the administrative management of the tsunami program. 6

11 Notes to Financial Statements, Continued 1. Significant accounting policies (continued): (a) Description of funds (continued): (iv) Development fund (continued): Restructuring projects fund - Institutional relaunch fund During the year, the Board of Directors approved the transfer of the funds internally restricted in relation to the 2006 restructuring (the restructuring projects fund ) to a new institutional relaunch fund for the purpose of financing the relaunch of the Organization over the next three years. (b) Cash and cash equivalents: Cash and cash equivalents include cash and investments with maturities of three months or less. (c) Financial instruments: Financial assets and financial liabilities are initially recognized at the fair value and their subsequent measurement is dependent on their classification as described below. Their classification depends on the purpose for which the financial instruments were acquired or issued, their characteristics and the Organization s designation of such instruments. Settlement date accounting is used. (i) Classification: Cash Accounts receivable Temporary investments and investments Accounts payable and accrued liabilities Obligations under capital leases Non-repayable loans Held for trading Loans and receivables Available for sale Other liabilities Other liabilities Other liabilities (ii) Held-for-trading: Held-for-trading financial assets are financial assets typically acquired for resale prior to maturity or that are designated as held for trading. They are measured at fair value at the balance sheet date. Fair value fluctuations are included in the results. (iii) Loans and receivables: Loans and receivables are accounted for at amortized cost using the effective interest method. 7

12 Notes to Financial Statements, Continued 1. Significant accounting policies (continued): (c) Financial instruments (continued): (iv) Available for sale: Financial assets available for sale are measured at fair value, and unrealized gains and losses are included in the statement of changes in net assets. Once an asset is sold, the cumulative gains or losses are transferred to the statement of revenues and expenses. (v) Other liabilities: Other liabilities are recorded at amortized cost using the effective interest method and included all financial liabilities. (vi) Effective interest method: The Organization uses the effective interest method to recognize interest revenue or expenses, which includes transaction costs as well as fees, premiums and discounts earned or incurred on financial instruments. (vii) Transaction costs: Transaction costs related to held-for-trading financial assets are expensed as incurred. Transaction costs related to available-for-sale financial assets, held-to-maturity financial assets, other liabilities and loans and receivables are netted against the carrying value of the asset or liability and are then recognized over the expected life of the instrument using the effective interest method. The Organization has elected to use the exemption provided by the Canadian Institute of Chartered Accountants ( CICA ) permitting not-for-profit organizations not to apply the following Sections of the CICA Handbook: 3862 and 3863, which would otherwise have applied to the financial statements of the Organization for the year ended August 31, The Organization applies the requirements of Section 3861 of the CICA Handbook. 8

13 Notes to Financial Statements, Continued 1. Significant accounting policies (continued): (d) Capital assets: Capital assets are stated at cost. Amortization is computed using the straight-line method over their estimated useful life as follows: Asset Promotional equipment Office equipment Computer equipment Leasehold improvements Cable equipment Equipment held under capital leases Period 3 years 5 years 2, 3 and 4 years 10 years 2 years Terms of lease (e) Revenue recognition: The Organization follows the deferral method of accounting for contributions. (i) Donations: Unrestricted donations are recorded as revenue when received. Donor restricted funds are recorded as deferred contributions and, subsequently, transferred to revenue when such funds are utilized in accordance with the donor restrictions. (ii) Canadian Government and other contributions: The Organization enters into contracts with the Canadian Government, via CIDA for the funding of projects in various countries. The portion of contributions with regard to development programs is recorded as revenue in the statement of revenues and expenses as related expenses are incurred. The remaining portion of contributions, related to indirect costs recovery, management fees or procurement fees, that are applicable to the Organization, is recorded as revenue in the statement of revenues and expenses in accordance with the terms in the individual contracts. (iii) Contributions received for endowment purposes: Contributions received for endowment purposes are recorded as an increase of the net assets restricted for endowment purposes. (f) Pension plan expense: Pension plan contributions are recorded in expenses in the period in which they are incurred. 9

14 Notes to Financial Statements, Continued 1. Significant accounting policies (continued): (g) Foreign currency translation: Monetary assets and liabilities are translated into Canadian dollars at the exchange rates in effect at the balance sheet date and non-monetary assets and liabilities are translated at historical rates. Revenue and expenses are translated at average rates prevailing during the year. Translation gains and losses are reflected in expenses. (h) Use of estimates: The preparation of financial statements in conformity with Canadian generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from these estimates. (i) Future changes in accounting policies: In February 2008, the Accounting Standards Board ( AcSB ) announced the adoption of International Financial Reporting Standards ( IFRS ) in replacement of Canadian generally accepted accounting principles ( GAAP ) for publicly accountable enterprises. This accounting framework can also be adopted by not-for-profit organizations. In September 2009, the AcSB approved new accounting standards for not-for-profit organizations. These standards are applicable for fiscal years commencing on or after January 1, When the end of the annual reporting period does not coincide with the end of the calendar year, the mandatory date for first-time adoption is the beginning of the annual reporting period that commences on or after December 21, The Organization has the choice to adopt the IFRS or the new accounting standards for notfor-profit organizations for the year ending August 31, The Organization will be required to recast its fiscal 2011 and 2012 financial statements on a comparative basis using the new standards. Management will need to evaluate the impact on the adoption of these new standards on the financial statements of the Organization. 10

15 Notes to Financial Statements, Continued 2. Investments: Fair Fair value Cost (i) value Cost (i) Short-term: Term deposits, interest of 0.92% to 1.17% ( % to 1.53%) maturing in 2012 $ 9,000,000 $ 9,000,000 $ 10,429,743 $ 10,429,743 Bonds with a nominal value of $7,456,000 ( $6,989,340) 8,041,599 7,898,903 7,172,108 6,967,804 Canadian shares 3,990,448 4,146,802 2,485,135 2,654,625 American shares 2,397,866 2,337,998 1,473,750 1,611,043 Foreign shares 1,192,347 1,264, , ,103 Short-term total 24,622,260 24,648,502 22,073,725 22,217,318 Long-term: Pooled fund 301, , , ,009 Total $ 24,923,441 $ 24,831,412 $ 22,387,858 $ 22,416,327 (i) The cost of the bonds represents the amortized cost. The bonds, per their fair value, are comprised as follows: Federal government 63% 66% Provincial governments 37% 34% 11

16 Notes to Financial Statements, Continued 3. Variation of the unrealized gain (loss) on the investments: Variation Fair value $ 24,923,441 $ 22,387,858 $ 2,535,583 Cost (24,831,412) (22,416,327) (2,415,085) $ 92,029 $ (28,469) $ 120, Accounts receivable: Share lent $ 1,850,059 $ 1,792,728 Advances and other debtors 394, ,511 Interest receivable 131, ,378 Estates 19,225 93,024 $ 2,395,268 $ 2,640, Contributions from CIDA to Regular Program: To finance part of its international program, the Organization benefits from a contribution agreement with CIDA for a period of 5 years from March 15, 2012 to May 31, 2017, for a total of $14,490,530. An amount of $3,000,000 was collected during the year. 6. Capital assets: Accumulated Net book Net book Cost amortization value value Office equipment $ 492,317 $ 449,692 $ 42,625 $ 39,094 Computer equipment 669, , , ,355 Leasehold improvements 263, , , ,312 Cable equipment 40,037 38,875 1,162 1,634 Equipment held under capital leases 199, ,548 22, ,821 $ 1,664,976 $ 1,320,498 $ 344,478 $ 498,216 12

17 Notes to Financial Statements, Continued 7. Accounts payable and accrued liabilities: During the year, due to the reduced funding from CIDA, the Organization offered voluntary termination benefits to facilitate an early retirement to admissible employees. These termination benefits amounted to $760,396 and are presented under restructuration and related expenses on the statement of revenues and expenses. As at August 31, 2012, an amount of $331,078 remains payable and is included with accounts payable and accrued liabilities on the balance sheet. In addition, the Organization adopted a partner s disengagement program to provide transition funding to partners that the Organization funded through its regular programs. As at August 31, 2012, the Organization committed to disburse a maximum amount of $500,000 for the financial year. 8. Deferred contributions and internally imposed restrictions - Development programs: Deferred contributions: Amounts Recognized Total received revenues Total Regular program $ $ 3,000,000 $ (926,122) $ 2,073,878 Bilateral program MPP Haiti 502, ,586 (1,180,061) 243,489 ITECA Haiti 3,200,000 (1,886,656) 1,313,344 AHI program CIDA 458,123 1,800,000 (924,186) 1,333,937 Project - Catholic Women s League 69,299 (69,299) Project - FCI Europe 11,689 (1,030) 10,659 Québec sans frontières program 16, ,830 (145,868) Emergency Relief Programs: Tsunami program 406,792 (180,520) 226,272 Haiti program 14,982,508 90,204 (2,827,959) 12,244,753 Pakistan program 1,933,282 22,979 (1,261,722) 694,539 Burma program 72,905 (2,803) 70,102 Horn of Africa program 1,765,647 5,338,017 (1,519,627) 5,584,037 West Africa - Sahel program 704, ,302 Other special appeals 1,459, ,533 (1,008,000) 942,201 $ 21,609,616 $ 15,765,750 $ (11,933,853) $ 25,441,513 13

18 Notes to Financial Statements, Continued 8. Deferred contributions and internally imposed restrictions - Development programs (continued): Internally imposed restrictions for development programs: Amounts Recognized Total received revenues Total Regular program $ $ 5,284,739 $ (5,284,739) $ Strategical support program 79,713 (79,713) Institutional evaluation fund program 29,066 29,066 Youth program 205,714 (56,789) 148,925 Other activities 53, ,129 (63,806) 238,636 $ 288,093 $ 5,613,581 $ (5,485,047) $ 416, Obligations under capital leases: Obligation under capital lease for office equipment, 2%, payable in monthly installments of $5,232 including capital, interest and taxes, due in December 2012 $ 18,580 $ 85,656 Obligation under capital lease for office equipment, 8%, payable in monthly installments of $3,679 including capital, interest and taxes, due in February 2015 (i) 130,035 18, ,691 Current portion of obligations under capital leases (18,580) (97,466) $ $ 118,225 (i) During the year, the Organization terminated its lease for office equipments, which were returned to the supplier. 14

19 Notes to Financial Statements, Continued 10. Pension plan: The pension plan (the Plan ) for employees of the Organization is a defined contribution plan covering all salaried employees of the Organization who meet eligibility requirements as specified in the Plan Agreement. The Organization is required to contribute 5% of the employees gross earnings. The Organization contributed $209,016 during the year ( $193,802); this contribution is recorded in the statement of revenues and expenses. 11. Commitments: (a) Rent and office equipment: The Organization is committed under operating leases regarding business premises for an amount of $1,872,636 and for office equipment for an amount of $255,891. The required payments over the next five years are as follows: 2013 $ 521, , , , ,385 (b) International program: The Organization has also made commitments to partners from the Global South for International projects through An amount of $5,600,265 is committed under the protocol agreements. Of this amount, the contribution of the Organization amounts to $4,221,065. In the event that the Organization did not get the funding needed to carry out these projects from donors, the Organization could withdraw from these commitments. 12. Financial instruments: (a) Interest rate risk: The investments in short-term deposits and bonds held by the Organization in mutual funds bears fixed interest rates. Consequently, a change in the market interest rate would have an impact on the fair value of these investments. The long-term debt bears a fixed interest rate. Therefore, the liquidity risk is limited. 15

20 Notes to Financial Statements, Continued 12. Financial instruments (continued): (b) Currency risk: The Organization does not incur significant currency risk since operations are conducted in Canadian dollars. (c) Fair value: The fair values of accounts receivable and accounts payable and accrued liabilities approximate their carrying value due to their short-term nature. The fair value of the obligations under capital leases approximate their carrying value given that it could be renegotiated under similar conditions on the market. The fair value of the nonrepayable loans cannot be established in a reliable way considering the uncertainty related to their maturity. 13. Contingency: The Organization is subject to grievances which occurred during the year. These grievances relate to claims for damages for which the amounts were not determined, and for which it s impossible to evaluate the outcome at this stage. Therefore, no provision has been recorded in the financial statements related to this contingency. 14. Capital disclosures: The Organisation defines its capital as the amounts included in its net assets. The Organization s objective when managing its capital is to safeguard the Organization s ability as a going concern so it can continue to contribute, through its humanitarian actions, to solving problems throughout the world. 15. Comparative information: Certain comparative information has been reclassified to conform to the current year s presentation. 16

21 Schedule A - Revenues, with comparative information for 2011 CCODP Revenue: Share Lent - previous year $ 530,187 $ 606,277 Share Lent - current year 8,300,432 8,300,329 Interest revenue 8, ,687 Co-financing 49,504 61,149 Registration - Québec sans frontières 15,969 19,560 Orientation assembly 2, Miscellaneous 63,461 92,381 8,970,847 9,317,894 Governmental contributions: CIDA - Regular program (note 8) 926,122 10,179,614 Subsidy Quebec MRI 30, , ,122 10,319,614 Fundraising activities: Estates 892, ,835 Stock donations 223,287 75,651 Annuities and insurance premiums 34,098 94,461 Direct mailing 1,884,394 2,128,718 Major donations 251,185 72,250 Other donations 492, ,121 3,777,472 3,693,036 Special activities: CIDA - Bilateral programs MPP (note 8) 1,078, ,000 CIDA - Bilateral programs - General fees (note 8) 101,194 15,379 CIDA - ITECA Haiti 1,886,656 CIDA - AHI (note 8) 924,186 2,775,254 Québec sans frontières (note 8) 129, ,868 Canadian Foodgrains Bank 1,930,385 88,000 Catholic Women s League (note 8) 69, ,053 FCI - Europe (note 8) 1, ,834 Pax Christi 28,000 19,500 6,149,516 3,443,888 Emergency relief programs: Public donations - Tsunami (note 8) 180, ,504 Public donations - Haiti (note 8) 2,827,959 3,346,206 Public donations - Pakistan (note 8) 1,261,722 1,999,475 Public donations - Burma (note 8) 2,803 75,205 Public donations - Horn of Africa 1,519,627 Public donations - General (note 8) 1,008,000 1,214,201 Interest revenue 427,607 98,807 7,228,238 7,063,398 $ 27,082,195 $ 33,837,830 17

22 Schedule B -Expenses - International Development Program, with comparative information for 2011 Regular programs: Regular programs $ 4,946,341 $ 14,537,151 CIDA programs 926,122 Strategic support 79,713 86,407 Emergency relief fund - Share Lent from previous year 525, ,185 Subsidy Québec MRI 23, ,000 Cancelled or reduced projects (112,602) Partner s disengagement program (note 7) 451,000 6,838,927 15,181,743 Special activities: CIDA - Bilateral programs 3,066, ,000 CIDA - AHI 924,186 2,775,254 Canadian Foodgrains Bank 1,902,015 88,000 Catholic Women s League 69, ,053 FCI - Europe 1, ,834 Pax Christi 26,600 18,525 5,989,847 3,299,666 Emergency relief programs: Emergency relief programs - Tsunami 180, ,504 Emergency relief programs - Pakistan 1,261,722 1,999,475 Emergency relief programs - Haiti 2,827,959 3,346,207 Emergency relief programs - Burma 2,803 75,205 Emergency relief programs - Horn of Africa 1,519,627 Emergency relief programs - General 1,008,000 1,050,815 Operational costs - Emergency relief fund 174, ,954 Asia reconstruction fund 11,503 6,975,397 6,976,663 Operational costs - International programs: Salaries and fringe benefits 1,013,469 1,196,589 Contract work 10,347 21,739 Travel expenses - Canada and international 18,839 17,962 Mission fees 81, ,088 IPD meetings 334 1,559 International development program committee 4,651 25,244 Office supplies and telecommunications 14,087 14,288 Translation 1,844 3,542 Staff training 4,170 12,901 Miscellaneous 5,971 1,684 1,155,538 1,416,596 $ 20,959,709 $ 26,874,668 18

23 Schedule C - Expenses - Education Department, with comparative information for 2011 Education Program for International Solidarity: Travel expenses $ 90,386 $ 97,709 Education committee 17,803 Provincial meetings 61,536 67,529 Diocesan council grants 111, ,299 Promotional material 137 5,910 Global South internships (4,851) 28,000 Visitors from the Global South 20,963 34,188 Youth project 50,337 48,078 Special projects 33,131 THINKfast 18,959 15,291 Share Lent - material and distribution 198, ,134 Fall campaign - material and distribution 104, , , ,004 Social Justice Program in Canada: French education activity grants 80,500 62,000 English education activity grants 7,584 8,750 Contribution to Kairos 50,000 50,000 Contributions to the CCCB social justice program 65,000 65, , ,750 Operational costs: Salaries and fringe benefits 1,764,428 1,664,488 Contract work 945 1,405 Regional office fees 131, ,564 Research fees 3,845 Office and telecommunication fees 53,140 64,279 Staff training 12,885 8,396 Affiliation fees 5,900 4,850 Translation 5,919 13,455 Miscellaneous 5,763 10,487 1,984,208 1,909,924 Subtotal - Education Department 2,838,780 2,871,678 Québec sans frontières: Québec sans frontières program 127, ,415 $ 2,966,422 $ 3,054,093 19

24 Schedule D - Expenses - Advancement Department, with comparative information for 2011 Communications Program: Share Lent campaign $ 20,852 $ 7,444 Fall campaign 7,671 16,552 Other campaigns Web site 1, Public posting 1,024 Media relations 3,672 4,063 Press coverage 9,266 8,322 Publications 4,348 9,250 Publications - others 9,929 4,228 Sponsorship 191 Publicity - media 23,809 2,561 Special projects 34,230 66, , ,996 Fundraising Program: Promotional material 5,567 6,171 Planned giving 41,974 80,386 Direct mailing 479, ,831 Major gifts 8,252 Write-off of estates receivable 82,888 New initiatives 25,526 43, , ,657 Operational costs: Salaries and fringe benefits 647, ,206 Contract work 15,662 Part-time work 9,600 62,813 Travel expenses 11,501 17,040 Office and telecommunication fees 47,182 43,899 Professional fees 3,824 17,371 Participation to congress 806 8,151 Staff training 2, Affiliation fees 1,622 2,804 Professional meeting 130 Translation 7,040 7,315 Miscellaneous 3,902 4, , ,478 $ 1,402,914 $ 1,766,131 20

25 Schedule E - Expenses - Governance and General Operations, with comparative information for 2011 Governance: National council and executive meetings $ 96,086 $ 98,900 National council committees 41,894 39,125 Regional representation fees 2,995 4,242 Affiliation fees 55,596 70,719 Translation and documentation 26,286 29,123 Miscellaneous 1,351 2, , ,681 General management: Salaries and fringe benefits 357, ,002 Contract work 300 9,470 Travel costs and accommodation 25,273 35,618 Management committee 5,265 5,238 Management team support 19,514 Research fees 19,021 Staff training Office and telecommunication fees 2,406 7,489 Translation and documentation 6,999 4,253 Miscellaneous 1, , ,706 Administrative services: Salaries and fringe benefits 592, ,096 Contract work 2,100 9,010 Travel costs and accommodation 8,473 5,632 Management team support 3, Audit expenses 60,975 66,441 Staff training 8,155 12,335 Professional fees 42,123 33,941 Bank charges and brokerage fees 108,665 80,378 Office and telecommunication fees 2,709 3,066 Translation 2, Staff recruiting 3,829 7,403 Miscellaneous 1,393 1, , ,123 Structural expenses: Fixed costs 956, ,201 Interest on a capital lease 1,157 11, , ,634 Balance carry forward 2,418,999 2,518,144 21

26 Schedule E - Expenses - Governance and General Operations, Continued, with comparative information for 2011 Balance carried forward $ 2,418,999 $ 2,518,144 Operating fund: Orientation assembly 162 Institutional renewal 9,841 15,881 9,841 16,043 Other activities: Contingencies 34,994 8,776 Report on results 22,882 18,619 Tripartite forum 59 Five years programming 5,266 35,052 Transfer of the Toronto office to new premises 15,583 78,725 62,506 New initiatives: Relations with the episcopacy 3,808 5,112 Visibility projects 51, ,947 Share Lent development 152,140 83,790 Youth Project - QSF Fund 56,789 78, , ,289 $ 2,771,674 $ 3,179,982 22