THOMAS W. VAN HORN, JR.
CERTIFIED PUBLIC ACCOUNTANT
114 SOUTH VICKSBURG STREET
Marion, Illinois 62959


Board of Directors
Marion Medical Mission
Marion, Illinois

I have audited the accompanying statements of financial position of Marion Medical Mission (a nonprofit organization) as of June 30, 2003, and the related statements of activities and cash flows for the year then ended. These financial statements are the responsibility of the Organization's management.  My responsibility is to express an opinion on these financial statements based on my audit.

I conducted my audit in accordance with generally accepted auditing standards. Those standards require that I plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.  I believe that my audit provides a reasonable basis for my opinion.

In my opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Marion Medical Mission as of June 30, 2003, and the results of its operations and its cash flows for the year then ended in conformity with generally accepted accounting principles.

January 13, 2004

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MARION MEDICAL MISSION 
STATEMENT OF FINANCIAL POSITION - JUNE 30,  2003

ASSETS

Current Assets:

Cash in Bank, general Account

 $227,276

Cash in Bank, administration Account

 2,467

Escrow, designated scholarship fund

 994

Escrow, designated shallow well

 58,452

Escrow, designated contributions
33,257

Accounts receivable

           67

Total current assets:
$322,513

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LIABILITIES AND NET ASSETS

Current liabilities:

Accounts payable

 $93,233
Net assets:

Unrestricted net assets
136,577
Temporarily restricted net assets:

Restricted for:

Scholarships
994

Shallow wells
58,452

Other
33,287

Total temporarily restricted net assets
92,703

Total net assets
229,280

TOTALS

 $322,513

 

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MARION MEDICAL MISSION 
STATEMENT OF ACTIVITIES
YEARS ENDED JUNE 30, 2003

Support and Revenues: Unrestricted Temporarily
Restricted		 Total
Contributions:
General $101,269 $101,269
Shallow wells $205,851 205,851
Shallow wells truck fund 8,100 8,100
Famine relief 14,993 14,993
School buildings 2,200 2,200
Hospital 3,335 3,335
Schools 18,284 18,284
Scholarships 1,712 1,712
Churches 450 450
Designated 4,597 4,597
Freight 536    536
Total  support and Revenues

$101,269

$260,058

$361,327
Expenses:

Program services:
Mission expenses:
Shallow well supplies $205,851 $205,851
Shallow well truck 34,320 34,320
Famine relief 14,993 14,993
Hospital supplies and medicines 16,913 16,913
Miscellaneous supplies 754 754
Chizimya Full Primary School 8,890 8,890
Embangweni School for Deaf Children 27,079 27,079
Louden Full Primary School 1,784 1,784
School buildings/teacher homes 20,500 20,500
Miscellaneous school needs 1,037 1,037
Scholarships 2,102 2,102
Churches 1,000 1,000
Designated 4,597 4,597
Air freight 7,189 7,189
Insurance 1,409 1,409
Agriculture          5,000          5,000
Crisis nursery                  5,000 5,000
Total Mission Expenses                     $358,418    $358,418
Mission travel:
Mission Travel $6,440 $6,440
Designated travel contributions (6,863) (6,863)
Total Mission travel

(       423)

(       423)
Total program services

$357,995

$357,995
Supporting services:
Management and general
Office supplies $1,941 $1,941
Postage 1,560 1,560
Clerical 2,864 2,864
Miscellaneous 519 519
Designated contributions (      5,081) (      5,081)
Interest income (      7,255) (      7,255)
Dividend income (          395) (          395)
Loss on investment sale         5,041                             5,041
Net management and general

(          806)

                   

(          806)
Total expenses

(          806)

$357,995

 $ 357,189
Increase (decrease) in net assets $102,075 (   $97,937) $4,138
Net assets, beginning of year $34,502 $190,640 $225,142
Net assets, end of year

$136,577

$92,703

  $229,280

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MARION MEDICAL MISSION 
STATEMENT OF CASH FLOW
YEAR ENDED JUNE 30, 2003

Cash flows from operating activities:  
Increase in net assets $4,138
Adjustments to reconcile increase in net assets to
net cash provided by operating activities:
Reinvested dividend income (   111)
Donated assets included in contributions income (  1,383)
(Gain) loss on investment sales 5,041
(Increase) decrease in operating assets:

Accounts receivable

 6,048
Increase (decrease) in operating liabilities:

Accounts Payable

 34,824

Accrued expenses

 (        118)
Total adjustments 44,301
Net cash provided by operating activities 48,439
Cash flows from investing activities:
Proceeds from investment sales 11,070
Net cash provided by investing activities 11,070
Net increase in cash and cash equivalents 59,509
Cash and cash equivalents, beginning 262,937
Cash and cash equivalents, ending $322,446

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MARION MEDICAL MISSION 
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2003

1.  Nature of activities and summary of significant accounting policies

Nature of activities:

Marion Medical Mission, a nonprofit corporation, provides medical and other services to underdeveloped countries, primarily in Africa. The services are delivered by sending qualified medical personnel and assisting with various projects in the affected countries. The major projects consist of the construction of shallow drinking water wells and construction of school buildings. The Organization receives donations from churches, businesses and individuals. No part of the funds raised are used to pay either administrative or travel expenses.

Functional expenses:

The Organization allocates it expenses on a functional basis among its various programs and support services. Expenses that can be identified with a specific program and support service are allocated directly according to their natural expenditure classification. Other expenses that are common to several functions are allocated by various statistical bases..

Financial statement presentation:

The Organization has adopted Statement of Financial Accounting Standards (SFAS) No. 117, Financial Statements of Not-for-Profit Organizations. Under SFAS No. 117, the Organization is required to report information regarding its financial position and activities to three classes of net assets: unrestricted net assets, temporarily restricted net assets, and permanently restricted net assets.

Income taxes:

Marion Medical Mission is a not-for-profit organization that is exempt from income taxes under Section 501(c) (3) fof the Internal Revenue Code.

Cash and cash equivalents:

For purposes of the statements of cash flows, the Organization considers all highly liquid investments available for current use with an initial maturity of three months or less to be cash equivalents.

Estimates:

Management uses estimates and assumptions in preparing these financial statements in accordance with generally accepted accounting principles. Those estimates and assumptions affect the report amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenue and expenses. Actual results could vary from the estimates that were used.

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