THOMAS W. VAN HORN, JR.
CERTIFIED PUBLIC ACCOUNTANT
114 SOUTH VICKSBURG STREET
Marion, Illinois 62959
(618)997-5524

 

INDEPENDENT AUDITOR'S REPORT


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, 2006, 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, 2006, and the results of its operations and its cash flow for the year then ended in conformity with generally accepted accounting principles.

September 21, 2006

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MARION MEDICAL MISSION 
STATEMENT OF FINANCIAL POSITION - JUNE 30,  2006

ASSETS

Current Assets:

Cash in Bank, general Account

 $505,737

Cash in Bank, administration Account

 2,467

Escrow, designated scholarship fund

 3,531

Escrow, designated shallow well

 142,100

Escrow, designated contributions
68,365

Accounts receivable

         16,028

Total current assets:
$738,228

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LIABILITIES AND NET ASSETS

Current liabilities:

Accounts payable

 $213,554
Net assets:

Unrestricted net assets
310,678
Temporarily restricted net assets:

Restricted for:

Scholarships
3,531

Shallow wells
142,100

Other
68,365

Total temporarily restricted net assets
213,996

Total net assets
524,674

TOTALS

 $738,228

 

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MARION MEDICAL MISSION 
STATEMENT OF ACTIVITIES
YEARS ENDED JUNE 30, 2006

Support and Revenues: Unrestricted Temporarily
Restricted		 Total
Contributions:
General $174,721 $174,721
Shallow wells $181,587 $181,587
Shallow wells truck fund 16,000 16,000
Capicity Building, Shallow well 89,156 89,156
Hearing aids 4004 4004
School buildings 1,000 1,000
Hospital 1,930 1,930
Schools 15,188 15,188
Scholarships 10,645 10,645
Motorcycles 11,500 11,500
Designated 1,175 1,175
Total  support and Revenues

$174,721

$328,581

$503,302
Expenses:

Program services:
Mission expenses:
Shallow well supplies $26,456 $154,277 $180,733
Shallow well truck 15,555 15,555
Motorcycles   11,500 11,500
Capacity Building, Shallow Well 16,317 89,156 105,473
Hospital supplies and medicines 8,699 1,930 10,629
Miscellaneous supplies 452 452
Hearing aids 199 400 599
Chizimya Full Primary School 9,554 9,554
Embangweni School for Deaf Children   823 823
Karonga School for Deaf Children 8,560   8,560
Mziza Secondary School 14,500   14,500
Kamwabambo Full Primary School 7,700 7,700
School buildings/teacher homes   4,721 4,721
Miscellaneous school needs 2,841   2,841
Scholarships   4,133 4,133
Repairs 4,500 4,500
Air freight 1,509   1,509
Insurance 13,405              13,405
Total Mission Expenses      $105,138    $292,049    $397,187
Mission travel:
Mission Travel $4,876 $4,876
Designated travel contributions (5,586) (5,586)
NetMission travel

(       710)

(       710)
Total program services

$105,138

$291,339

$396,477
Supporting services:
Management and general
Newsletters $3,976 $3,976
Office supplies 2,224 2,224
Postage 1,033 1,033
Clerical 3,075 3,075
Miscellaneous 2,098 2,098
Designated contributions (      1,886) (      1,886)
Interest income (      14,175) (      14,175)
Net management and general

(      3,517)

                   

(      3,517)
Total expenses

101,621

$291,339

 $ 392,960
Increase (decrease) in net assets $73,100 $37,242 $110,342
Net assets, beginning of year

$237,578

$176,754

  $414,332
Net assets, end of year

$310,678

$213,996

  $524,674

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MARION MEDICAL MISSION 
STATEMENT OF CASH FLOW
YEAR ENDED JUNE 30, 2006

Cash flows from operating activities:
Increase in net assets $110,342
Adjustments to reconcile increase in net assets to
net cash provided by operating activities:
(Increase) decrease in operating assets:

Accounts receivable

   (    11,019)
Increase (decrease) in operating liabilities:

Accounts Payable

 37,242
Net cash provided by operating activities 136,565
Cash and cash equivalents, beginning 585,635
Cash and cash equivalents, ending $722,2005

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MARION MEDICAL MISSION 
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2006

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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