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, 2005, and the related statements of activities and cash flow 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, 2005, and the results of its operations and its cash flows for the year then ended in conformity with generally accepted accounting principles.

December 28, 2005

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MARION MEDICAL MISSION 
STATEMENT OF FINANCIAL POSITION - JUNE 30,  2005

ASSETS

Current Assets:

Cash in Bank, general Account

 $406,414

Cash in Bank, administration Account

 2,467

Escrow, designated scholarship fund

 3,731

Escrow, designated shallow well

 105,867

Escrow, designated contributions
67,156

Accounts receivable

          5,009

Total current assets:
$590,644

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LIABILITIES AND NET ASSETS

Current liabilities:

Accounts payable

 $176,312
Net assets:

Unrestricted net assets
237,578
Temporarily restricted net assets:

Restricted for:

Scholarships
3,731

Shallow wells
105,867

Other
67,156

Total temporarily restricted net assets
176,754

Total net assets
414,332

TOTALS

 $590,644

 

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MARION MEDICAL MISSION 
STATEMENT OF ACTIVITIES
YEARS ENDED JUNE 30, 2005

Support and Revenues: Unrestricted Temporarily
Restricted		 Total
Contributions:
General $141,682 $141,682
Shallow wells $191,457 $191,457
Shallow wells truck fund 37,000 37,000
Hearing aids 8,794 8,794
School buildings 29,582 29,582
Hospital 6,475 6,475
Schools 12,180 12,180
Scholarships 2,428 2,428
Motorcycles 1,100 1,100
Designated 25,600 25,600
Freight 667 667
Total  support and Revenues

$141,682

$315,363

$454,745
Expenses:

Program services:
Mission expenses:
Shallow well supplies $191,457 $191,457
Shallow well truck 34,324 34,324
Motorcycles 2,400 1,100 3,500
Capacity Building, Shallow Well 25,000 25,000
Hospital supplies and medicines 9,558 6,475 16,033
Miscellaneous supplies 63   63
Chizimya Full Primary School 6,742 6,742
Embangweni School for Deaf Children 11,177 756 11,933
Louden Full Primary School 4,708 4,708
Kamsolo Primary 8,422 8,422
School buildings/teacher homes 21,761 6,144 27,905
Miscellaneous school needs 1,413 1,413
Pump, manufacturing building 12,000 12,000
Scholarships 112 2,428 2,540
Churches 1,000 1,000
Designated 300 300
Air freight 1,091 667 1,758
Insurance 1,404              1,404
Total Mission Expenses      $84,566    $274,702    $359,268
Mission travel:
Mission Travel $32,750 $32,750
Designated travel contributions (33,209) (35,509)
NetMission travel

(       459)

(       2,759)
Total program services

$84,566

$274,243

$356,509
Supporting services:
Management and general
Newsletters $3,730 $3,730
Office supplies 1,089 1,089
Postage 1,932 1,932
Clerical 3,110 3,110
Miscellaneous 305 305
Designated contributions (      2,576) (     2,576)
Interest income (      8,632) (      8,632)
Net management and general

(      1,042)

                   

(      1,042)
Total expenses

83,524

$274,243

 $ 355,467
Increase (decrease) in net assets $58,158 $41,120 $99,278
Net assets, beginning of year

$179,4207

$135,634

  $315,054
Net assets, end of year

$237,578

$176,754

  $414,332

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MARION MEDICAL MISSION 
STATEMENT OF CASH FLOW
YEAR ENDED JUNE 30, 2005

Cash flows from operating activities:
Increase in net assets $99,278
Adjustments to reconcile increase in net assets to
net cash provided by operating activities:
(Increase) decrease in operating assets:

Accounts receivable

   (    3,085)
Increase (decrease) in operating liabilities:

Accounts Payable

 41,212
Total adjustments 38,127
Net cash provided by operating activities 137,405
Cash and cash equivalents, beginning 448,230
Cash and cash equivalents, ending $585,635

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MARION MEDICAL MISSION 
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2005

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 volunteer medical and non-medical personnel to assist with various projects in the affected countries. The major projects consist of the construction of shallow drinking-water wells and the construction of school buildings. The Organization receives donations from churches, businesses and individuals. No part of the funds raised, unless so designated, are used to pay either administrative or travel expenses outside of the underdeveloped countries served by Marion Medical Mission.

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) of 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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