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Calvary Pentecostal AssemblyANNUAL BUSINESS MEETING

Chairman – Rev. David Courey

AGENDA

1. Opening Prayer

2. Establishing of Voting Bar and Scrutineers

3. Determination of Quorum

4. Minutes of Previous Meeting

5. Commencement of Elections

6. Annual Reports

a.) Financial Statements

b.) Appointment of Auditor for 2013

c.) Ministry Reports

7. Constitutional Amendment

8. Adjournment

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Calvary Pentecostal AssemblyANNUAL BUSINESS MEETING

Chairman – Rev. David Courey

AGENDA

1. Opening Prayer

2. Establishing of Voting Bar and Scrutineers

3. Determination of Quorum

4. Minutes of Previous Meeting

5. Commencement of Elections

6. Annual Reports

a.) Financial Statements

b.) Appointment of Auditor for 2013

c.) Ministry Reports

7. Constitutional Amendment

8. Adjournment

AnnuAl Business MeetingFor Year Ending Dec. 31, 2011

Held on March 11, 2012

1. The meeting began at 6:15PM with the congregation singing Great is Thy Faithfulness.

2. Pastor David opened in prayer and gave a brief devotional on the scripture Micah 6:8

3. The voting bar was established as the centre two sections of the sanctuary.

4. A motion was made to accept the following people as scrutineers:John Brown, Richard Burke, Jackie Gill, Ruthann Hatt, Eyon Richards.

MSC 5. A motion was put forth to accept Veda Newell as the recording secretary. MSC

6. A motion was put forth to accept the minutes of the last meeting as published. MSC

Pastor David clarified the answer to the last question in the minutes on page 13. Calvary Pentecostal Assembly Board decides how we pay the mortgage. The amount can change from month to month depending on the interest rate. The floor was opened for any further questions to which there were none.

7. Pastor David introduced the nominees for the Board to the members assembled. He asked the nominees to come forward: David Hatt, Prakash Jayakumar, David Schuetzkowski, Charles Wedzinga.

8. Pastor David read from 1 Tim chapter 3 and prayed over the voting process and explained that two positions were to be filled from this evening’s vote.

9. The ballots were distributed, the vote took place and the ballots were collected by the scrutineers. The ballot was declared closed.

10. David Schuetzkowski came forward to present the financial statements. There were no questions concerning the statements anda motion was put forth to accept the financial statements as distributed.

MSC

11. A motion was put forth to accept McClurkin Ahier & Company as our auditors for the year 2012. MSC

12. A motion was put forward to accept the ministry reports as distributed. MSC

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13. The scrutineers returned with the results from the vote. Elected to the board were David Hatt and David Schuetzkowski. Both will fill a three year term.

14. A motion was put forward to destroy the ballots. MSC

15. Pastor David offered his thanks to the congregational members, church board, pastors, secretaries, custodians and the Property Corporation Board members for their tireless work through out the year.

16. The meeting closed in prayer and was adjourned at 7:30 PM.

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CALVARY PENTECOSTAL ASSEMBLY>

financial statements>YEAR ENDED DECEMBER 31, 2012

McClurkin Ahier & Company LLP

CHARTERED ACCOUNTANTS

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CALVARY PENTECOSTAL ASSEMBLY>

financial statements>YEAR ENDED DECEMBER 31, 2012

indexIndependent auditor's report................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................1 - 2

Statement of financial position................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................3

Statement of operations and changes in fund balances................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................4

Statement of cash flows................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................5

Notes to financial statements................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................6 - 8

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INDEPENDENT AUDITOR’S REPORT

To the Members of Calvary Pentecostal Assembly:

Report on the Financial Statements

We have audited the accompanying financial statements of Calvary Pentecostal Assembly, which comprise thestatement of financial position as at December 31, 2012, December 31, 2011 and January 1, 2011, and thestatement of operations and changes in fund balances, and the statement of cash flows for the years endedDecember 31, 2012 and December 31, 2011, and a summary of significant accounting policies and otherexplanatory information.

Management's Responsibility for the Financial StatementsManagement is responsible for the preparation and fair presentation of these financial statements in accordancewith Canadian accounting standards for not-for-profit organizations and for such internal control asmanagement determines is necessary to enable the preparation of financial statements that are free from materialmisstatement, whether due to fraud or error.

Auditor's ResponsibilityOur responsibility is to express an opinion on these financial statements based on our audit. Except as explainedin the following paragraph, we conducted our audit in accordance with Canadian generally accepted auditingstandards. Those standards require that we comply with ethical requirements and plan and perform the audit toobtain 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 thefinancial statements. The procedures selected depend on the auditor's judgment, including the assessment of therisks of material misstatement of the financial statements, whether due to fraud or error. In making those riskassessments, the auditor considers internal control relevant to the entity's preparation and fair presentation ofthe financial statements in order to design audit procedures that are appropriate in the circumstances, but notfor the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit alsoincludes evaluating the appropriateness of accounting policies used and the reasonableness of accountingestimates made by management, as well as evaluating the overall presentation of the financial statements.

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We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for ourqualified audit opinion.

Basis for Qualified Opinion

In common with many similar charitable organizations, the organization derives revenue from donations frominterested persons, the completeness of which is not susceptible to satisfactory audit verification. Accordingly,our verification of these revenues was limited to the amounts recorded in the records of the organization and wewere not able to determine whether any adjustments might be necessary to donation revenues, excess of revenuesover expenses, current assets and net assets.

Qualified Opinion

In our opinion, except for the effect of adjustments, if any, which we might have determined to be necessary hadwe been able to satisfy ourselves concerning the completeness of the donation revenues referred to above, thefinancial statements present fairly, in all material respects, the financial position of Calvary Pentecostal Assemblyas at December 31, 2012, December 31, 2011, and January 1, 2011 and the results of its operations and itscash flows for the years ended December 31, 2012 and December 31, 2011 in accordance with Canadianaccounting standards for not-for-profit organizations.

Waterloo, Ontario LICENSED PUBLIC ACCOUNTANTSFebruary 12, 2012 CHARTERED ACCOUNTANTS

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CALVARY PENTECOSTAL ASSEMBLY>

statement of financialposition

>DECEMBER 31, 2012

January 1,2012 2011 2011

assets

currentCash $ 120,513 $ 106,101 $ 55,988Accounts receivable 14,583 11,477 8,584Prepaid expenses 12,113 8,712 3,008

147,209 126,290 67,580

capital assets (Note 4) 339,675 384,846 396,478

$ 486,884 $ 511,136 $ 464,058

liabilities

currentAccounts payable and accrued liabilities $ 38,212 $ 57,201 $ 148Government remittances payable 11,288 13,963 1,527Deferred contributions (Note 5) 44,437 26,271 20,548

93,937 97,435 22,223

commitments & contingencies (Note 6 & 7)

fund balances

operating 84,810 28,855 38,771

restricted fundsStewardship/L.Y.F. - - 6,586

invested in capital assets 308,137 384,846 396,478

392,947 413,701 441,835

$ 486,884 $ 511,136 $ 464,058

Approved on behalf of the board:

Director Director

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CALVARY PENTECOSTAL ASSEMBLY>

statement of operations andchanges in fund balances

>YEAR ENDED DECEMBER 31, 2012

restricted invested

stewardship in capital 2012 2011

operating L.Y.F. assets total total

revenueDonations $ 1,316,553 $ 88,271 $ - $ 1,404,824 $ 1,402,701Missions donations 75,906 - - 75,906 115,245Departmental ministries 77,652 - - 77,652 97,467Other income 24,919 - - 24,919 22,607

1,495,030 88,271 - 1,583,301 1,638,020

expensesDepartmental ministries 161,601 - - 161,601 169,463Discipleship 7,227 - - 7,227 11,870Fellowship 28,648 - - 28,648 26,141Missions 87,703 - - 87,703 125,656Outreach 54,402 - - 54,402 54,267Office and administration 77,772 - - 77,772 82,359Personnel 551,373 - - 551,373 558,606Property 174,835 - - 174,835 174,396Worship 40,135 - - 40,135 33,893License agreement (Note 8) - 343,650 - 343,650 363,375Amortization - - 60,235 60,235 64,827Donation of capital assets - - 16,474 16,474 1,301

1,183,696 343,650 76,709 1,604,055 1,666,154

excess of revenue over expenses for year $ 311,334 $ (255,379)$ (76,709)$ (20,754)$ (28,134)

fund balance,beginning of year 28,855 - 384,846 413,701 441,835

Interfund transfers (Note 9) (255,379) 255,379 - - -

fund balance, end of year $ 84,810 $ - $ 308,137 $ 392,947 $ 413,701

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CALVARY PENTECOSTAL ASSEMBLY>

statement of cash flows>YEAR ENDED DECEMBER 31, 2012

2012 2011

operating activitiesExcess of Revenue over Expenses for Year $ (20,754) $ (28,134)

Adjustments for:Amortization 60,235 64,827

39,481 36,693

Changes in non-cash working capital:Increase in accounts receivable (3,106) (2,893)Increase in prepaid expenses (3,402) (5,704)Decrease in accounts payable and accrued liabilities (18,987) 57,051Decrease in government remittances payable (2,675) 12,437Increase in deferred contributions 18,165 5,724

29,476 103,308

investing activitiesPurchase of property, plant and equipment (15,064) (53,195)

Increase in cash 14,412 50,113

Cash Balance, beginning of year 106,101 55,988

cash balance, end of year $ 120,513 $ 106,101

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CALVARY PENTECOSTAL ASSEMBLY>

notes to financial statements >DECEMBER 31, 2012

1. organization

Calvary Pentecostal Assembly, the "Church", is an incorporated charitable organization for income taxpurposes and operates a local church in Cambridge, Ontario.

2. significant accounting policies

Fund Accounting - The Church reports its activities using the following funds:

The Operating Fund reflects contributions received and expenses incurred towards the operation andadministration of the Church and its various ministries.

The Stewardship funds reflect revenues, expenditures, assets and liabilities related to the raising andexpenditure of funds for capital asset additions.

Revenue Recognition - The Church follows the deferral method of accounting for contributions.Unrestricted contributions are recognized as revenue when received. Restricted contributions arerecognized as revenue when the expense is incurred.

Capital Assets and Amortization - Capital assets are recorded at historical cost. Amortization,commencing in the year following acquisition, is provided in the accounts using the following methodsand annual rates:

Asset Method RateFurniture and equipment Declining balance 15 %Computer Equipment Declining balance 40 %

Contributed Services - The Church is dependent upon many hours contributed by volunteers. Becauseof the difficulty of determining their fair value, contributed services are not recognized in thesefinancial statements.

The Church receives contribution of materials, the fair value of which may or may not be reasonablydeterminable. Contributed materials are recognized as donations when fair values can be determined.No contributed materials were recognized as donation revenue during the year.

Disclosure and Use of Estimates - The preparation of financial statements in accordance withCanadian accounting standards for not-for-profit organizations requires management to makeestimates and assumptions that affect the reported amount of assets and liabilities and disclosure ofcontingent assets and liabilities at the date of the financial statements and reported amounts ofrevenues and expenses during the reporting period. These estimates are reviewed periodically, and asadjustments become necessary, they are reported in the statement of operations in the period in whichthey become known.

Estimates are used when accounting for certain items such as revenues, allowance for doubtfulaccounts, useful lives of capital assets and asset impairments.

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CALVARY PENTECOSTAL ASSEMBLY>

notes to financial statements >DECEMBER 31, 2012

3. adoption of Canadian accounting standards for not-for-profit organizations (ASPE)

The entity has elected to apply the Canadian accounting standards for not-for-profit organizations.These financial statements are the first financial statement for which the entity has applied theCanadian accounting standards for not-for-profit organizations, hereafter referred to as “NFPO.”

The financial statements for the year ended December 31, 2012 were prepared in accordance with theNFPO and provisions set out in FIRST-TIME ADOPTION, Section 1501, for first-time adoptersof this basis of accounting. There was no impact due to adopting these standards on the financialstatements as at the date of transition.

4. capital assets

accumulated net netcost amortization 2012 2011

Furniture and equipment $ 1,120,623 $ 785,400 $ 335,223 $ 380,876Computer equipment 46,551 42,099 4,452 3,970

$ 1,167,174 $ 827,499 $ 339,675 $ 384,846

5. deferred contributions

Deferred contributions represent designated funds received during the year and not yet expended.

2012 2011

Balance, beginning of year $ 26,271 $ 20,548

Amounts received during the year 154,055 156,377

Amounts recognized as revenue (135,889) (150,654)

$ 44,437 $ 26,271

6. commitments

Long term lease commitments - The Church is obligated under leasing contracts for equipment whichit operates. The leases expire in 2017 and the future minimum lease payments are as follows:

2013 $ 28,0812014 25,0282015 15,7382016 14,0212017 3,505

$ 86,373

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CALVARY PENTECOSTAL ASSEMBLY>

notes to financial statements >DECEMBER 31, 2012

7. contingencies

The Church is contingently liable for the bank demand instalment loan of Calvary PentecostalAssembly Charitable Property Corporation. The assets of the charitable property corporation, whichhave fair market values exceeding the amounts of the obligation, are available to satisfy suchobligations.

8. license agreement

Under the terms of a license agreement made April 30, 2008 with Calvary Pentecostal AssemblyCharitable Property Corporation, the Church will have exclusive use of the license facilities for theactivities of the Church. This is a twenty year agreement with automatic renewals every five yearsthereafter at the option of either party. The license fee will be established annually in sufficientamount to enable the property corporation to cover its expense. The Church will be responsible forall the operating costs of the property.

9. interfund transfers

During the year, the governing board approved the transfer of $255,379 from the operating fund tothe stewardship fund to be used towards the monthly payments on the license agreement.

10. pension plan

The Church contributes to a defined contribution pension plan. The assets of the plan are heldseparately from those of the Church in an independently administered fund. The pension expense isequal to the contributions paid by the Church. The contributions paid and expensed by the Churchfor the year amounted to $8,711 (2011 - $6,073). The Church also funded an additional $10,902(2011 - $Nil) to the Pension Fund of the Pentecostal Assemblies of Canada to cover a going concerndeficit in the Plan.

11. financial instruments

Risk management - It is management's opinion that the Church is not exposed to significant interestrate, currency, credit, liquidity or market risks arising from its financial instruments.

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2012World Missions Disbursement Summary

(Combination of all Church Departments)

CHURCH MISSIONS FUNDSUndesignated PAOC Missions Alejandro Cetrulo 10,000 Cecilia & Felix Chiriseri 2,500 Gary Cymbaluk 5,000 Gary Laing 1,000 Mike Martin 12,891 Aaron Pilon 14,981 George Werner 3,500 Village of Hope Zimbabwe 1,667 51,539

DESIGNATED MISSIONS DONATIONS Aaron Pilon 2,019 Africa Project 297 Africa Inland Mission 20 Cambridge Pregnancy Centre 12 Costa Rica – airfare/accommodations 9,346 Costa Rica – project 3,014 Erdo – Haiti 10 Jacob Goggins (missionary to Romania) 1,000 Loads of Love 656 Mike Martin 5,109 Mission to Haiti Canada 1,862 Tender Heart Ministries 261 Village of Hope Zimbabwe 261 World Vision Medical Unit 500 24,367

CHURCH SUPPORTED MISSIONS Costa Rica 5,633 Cambridge Self-Help Food Bank 1,500

Cambridge Pregnancy Centre 1,500Masters College & Seminary 2,400Miscellaneous Missions 764

11,797 TOTAL CHURCH MISSIONS FUNDS 87,703

OTHER CHURCH DEPARTMENTS WM: Child Care Plus 390 WM: Pennies 2,673 3,063

TOTAL COMMUNITY OUTREACH & WORLD MISSIONS 90,766