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, 2004, 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, 2004, and the results of its operations and its cash flows for the year then ended in conformity with generally accepted accounting principles.

January 19, 2005

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MARION MEDICAL MISSION 
STATEMENT OF FINANCIAL POSITION - JUNE 30,  2004

ASSETS

Current Assets:

Cash in Bank, general Account

 $310,129

Cash in Bank, administration Account

 2,467

Escrow, designated scholarship fund

 86,238

Escrow, designated shallow well

 48,515

Escrow, designated contributions
1,924

Accounts receivable

           67

Total current assets:
$450,154

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LIABILITIES AND NET ASSETS

Current liabilities:

Accounts payable

 $135,100
Net assets:

Unrestricted net assets
179,420
Temporarily restricted net assets:

Restricted for:

Scholarships
881

Shallow wells
86,238

Other
48,515

Total temporarily restricted net assets
135,634

Total net assets
315,054

TOTALS

 $450,154

 

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MARION MEDICAL MISSION 
STATEMENT OF ACTIVITIES
YEARS ENDED JUNE 30, 2004

Support and Revenues: Unrestricted Temporarily
Restricted		 Total
Contributions:
General $129,708 $129,708
Shallow wells $200,908 $200,908
Shallow wells truck fund 7,300 7,300
Hearing aides 5,230 5,230
School buildings 19,463 19,463
Hospital 6,170 6,170
Schools 7,940 7,940
Scholarships 3,395 3,395
Motorcycles 9,653 9,653
Designated 7,226 7,226
Freight 100 100
Total  support and Revenues

$129,708

$267,385

$397,093
Expenses:

Program services:
Mission expenses:
Shallow well supplies $200,908 $200,908
Shallow well truck 31,655 31,655
Motorcycles 13,269 13,269
Hospital supplies and medicines 15,936 15,936
Miscellaneous supplies 80 80
Chizimya Full Primary School 5,055 5,055
Embangweni School for Deaf Children 17,246 17,246
Louden Full Primary School 1,100 1,100
Kamsolo Primary 1,000 1,000
School buildings/teacher homes 11,200 11,200
Miscellaneous school needs 6,195 6,195
Scholarships 3,395 3,395
Churches 425 425
Designated 1,830 1,830
Air freight 1,107 1,107
Insurance 1,405 1,405
Agriculture          1,000          1,000
Miscellaneous                  526 526
Total Mission Expenses                     $313,332    $313,332
Mission travel:
Mission Travel $41,475 $41,475
Designated travel contributions (41,540) (41,540)
NetMission travel

(       65)

(       65)
Total program services

$313,267

$313,267
Supporting services:
Management and general
Office supplies $1,632 $1,632
Postage 1,200 1,200
Clerical 2,388 2,388
Miscellaneous 2,447 2,447
Designated contributions (      3,165) (      3,165)
Interest income (      6,450) (      6,450)
Net management and general

(      1,948)

                   

(      1,948)
Total expenses

(      1,948)

$313,267

 $ 311,319
Increase (decrease) in net assets $131,656 (   $45,882) $85,774
Net assets, beginning of year $47,764 $181,516 $229,280
Net assets, end of year

$179,4207

$135,634

  $315,054

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MARION MEDICAL MISSION 
STATEMENT OF CASH FLOW
YEAR ENDED JUNE 30, 2004

Cash flows from operating activities:
Increase in net assets $85,7748
Adjustments to reconcile increase in net assets to
net cash provided by operating activities:
(Increase) decrease in operating assets:

Accounts receivable

   (    1,857)
Increase (decrease) in operating liabilities:

Accounts Payable

 41,867
Total adjustments 40,010
Net cash provided by operating activities 125,784
Cash and cash equivalents, beginning 322,446
Cash and cash equivalents, ending $448,230

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MARION MEDICAL MISSION 
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2004

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 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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