WOMEN'S INTER-CHURCH COUNCIL OF CANADA

FINANCIAL STATEMENTS AUGUST 31, 2013 AND AUGUST 31, 2012

C H A R T E R E D A C C O U N T A N T S INDEPENDENT AUDITOR'S REPORT To the Members, Women's Inter-Church Council of Canada: Report on the Financial Statements We have audited the accompanying financial statements of Women's Inter-Church Council of Canada, which comprise the statement of financial position as at August 31, 2013 and August 31, 2012 and the statements of operations and changes in net assets and cash flows for the years then ended, and a summary of significant accounting policies and other explanatory information. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with Canadian accounting standards for not-for-profit organizations and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with Canadian generally accepted auditing standards. Those standards require that we comply with ethical requirements and plan and perform the audits to obtain 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 the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained in our audits is sufficient and appropriate to provide a basis for our qualified audit opinion. Basis for Qualified Opinion In common with many not-for-profit organizations, the organization derives revenue from donations and fundraising, the completeness of which is not susceptible of satisfactory audit verification. Accordingly, verification of this revenue was limited to the amounts recorded in the records of the organization, and we were not able to determine whether any adjustments might be necessary to donation and fundraising revenue, excess of grants and expenses over revenue for the year, assets and net assets. Qualified Opinion In our opinion, except for the possible effects of the matter described in the Basis for Qualified Opinion paragraph, the financial statements present fairly, in all material respects, the financial position of Women's Inter-Church Council of Canada as at August 31, 2013 and August 31, 2012, and its financial performance and its cash flows for the years then ended in accordance with Canadian accounting standards for not-for-profit organizations. Cowperthwaite Mehta Chartered Accountants Licensed Public Accountants October 17, 2013 Toronto, Ontario 187 Gerrard Street East Toronto Canada M5A 2E5 Telephone 416/323-3200 Facsimile 416/323-9637

STATEMENT OF FINANCIAL POSITION AS AT AUGUST 31, 2013 AND AUGUST 31, 2012 ASSETS Current assets Cash $ 2,162 $ 22,301 Short-term investments (note 4) 201,659 294,125 HST recoverable 13,278 15,677 Prepaid expenses 3,737 3,476 Investments (note 4) 87,524 220,836 335,579 $ 308,360 $ 335,579 LIABILITIES AND NET ASSETS Current liabilities Accounts payable $ 7,349 $ 32,213 Net assets General fund 112,020 114,375 Endowment fund 188,991 188,991 301,011 303,366 $ 308,360 $ 335,579 Approved on behalf of the Board:, Director, Director see accompanying notes Page 3

STATEMENT OF OPERATIONS AND CHANGES IN NET ASSETS FOR THE YEARS ENDED AUGUST 31, 2013 AND AUGUST 31, 2012 General Endowment Total Total Fund Fund REVENUE World Day of Prayer offerings $ 457,107 $ 457,107 $ 481,329 Fellowship of the Least Coin offerings 39,973 39,973 38,927 Fundraising and donations 43,693 43,693 30,342 Memberships and subscriptions 26,356 26,356 8,357 Investment income 18,291 18,291 2,827 Sales of educational materials 15,907 15,907 17,609 Sales of Awakening print 2,925 2,925 4,426 Miscellaneous 85 85 432 604,337 604,337 584,249 GRANTS AND EXPENSES Grants (Schedule 1) 175,353 175,353 202,071 Programs (Schedule 2) 101,182 101,182 101,086 Volunteer Support (Schedule 3) 27,826 27,826 34,534 Administrative (Schedule 4) 302,331 302,331 323,100 606,692 606,692 660,791 EXCESS OF GRANTS AND EXPENSES OVER REVENUE FOR THE YEAR (2,355) Nil (2,355) (76,542) Net assets, beginning of year 114,375 188,991 303,366 379,908 NET ASSETS, END OF YEAR $ 112,020 $ 188,991 $ 301,011 $ 303,366 see accompanying notes Page 4

SCHEDULES TO THE STATEMENT OF OPERATIONS FOR THE YEARS ENDED AUGUST 31, 2013 AND AUGUST 31, 2012 SCHEDULE 1 - SCHEDULE OF GRANTS World Day of Prayer grants $ 126,393 $ 142,536 International Committee of the FLC 33,960 33,535 World Day of Prayer International Committee 15,000 22,000 Awakening grant 4,000 $ 175,353 $ 202,071 SCHEDULE 2 - SCHEDULE OF PROGRAMS World Day of Prayer $ 59,913 $ 64,189 Publications 23,530 26,480 Women's gatherings 11,275 Public relations 4,272 5,663 Fellowship of the Least Coin 1,612 4,231 Awakening 580 361 Justice and Peace 162 $ 101,182 $ 101,086 SCHEDULE 3 - SCHEDULE OF VOLUNTEER SUPPORT Council travel and meeting costs $ 23,584 $ 26,915 Council/board development and insurance 2,714 2,784 Task Groups 1,233 2,345 Board travel and meeting costs 295 2,190 Conferences 300 $ 27,826 $ 34,534 SCHEDULE 4 - SCHEDULE OF ADMINISTRATIVE EXPENSES Salaries and benefits $ 221,020 $ 225,843 Rent and related 35,445 33,837 Equipment rental 18,176 19,291 Audit 5,095 9,010 Bookkeeping 4,968 9,476 Stationery and supplies 4,675 6,903 Telephone 4,045 2,963 Bank charges 2,997 3,485 Insurance 1,910 1,743 Internet web page support 1,754 4,906 Postage 1,338 2,191 Staff travel and meeting costs 480 3,092 Hospitality 428 360 $ 302,331 $ 323,100 see accompanying notes Page 5

STATEMENT OF CASH FLOWS FOR THE YEARS ENDED AUGUST 31, 2013 AND AUGUST 31, 2012 OPERATING ACTIVITIES Excess of grants and expenses over revenue for the year $ (2,355) $ (76,542) Items not involving cash: Net change in non-cash working capital items (see below) (22,726) 11,566 Cash used in operations (25,081) (64,976) FINANCING ACTIVITIES Decrease in investments 4,942 81,831 NET INCREASE (DECREASE) IN CASH FOR THE YEAR (20,139) 16,855 CASH, BEGINNING OF YEAR 22,301 5,446 CASH, END OF YEAR $ 2,162 $ 22,301 Net change in non-cash working capital items: HST recoverable $ 2,399 $ (1,976) Prepaid expenses (261) 2,354 Accounts payable (24,864) 15,671 Government remittances payable (4,483) $ (22,726) $ 11,566 see accompanying notes Page 6

NOTES TO THE FINANCIAL STATEMENTS AUGUST 31, 2013 AND AUGUST 31, 2012 The Women's Inter-Church Council of Canada (the "Council") is a national Christian women's council which encourages women to grow in ecumenism, to share their spirituality and prayer, and to engage in dialogue about women's concerns. The Council calls women to respond to national and international issues affecting women and to take action together for justice. The Council is classified as a charitable organization under the Income Tax Act (Canada) and, as such, is exempt from income taxes and may issue charitable donation receipts. 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES In preparing its financial statements, the Council follows Canadian accounting standards for not-forprofit organizations, which is one of the financial reporting frameworks included in Canadian generally accepted accounting principles. The significant accounting policies used are as follows: Fund accounting The Council follows the restricted fund method of accounting for contributions. The Council ensures, as part of its fiduciary responsibilities, that all funds received with a restricted purpose are expended for the purposes for which they were provided. The General Fund accounts for the Council's general fundraising, granting and administrative activities. The General Fund includes uncommitted funds which represent the surplus or deficit related to the Council's operations. These funds are available for any purpose of the Council. The Endowment Fund reports resources where internal restrictions require that the principal must be maintained for a period of ten years. Investment income earned on resources of the Endowment Fund is reported in the General Fund. Cash Cash is composed of amounts on deposit in bank accounts and petty cash. Investments Investments consist of fixed income securities and mutual funds and are carried at market value which approximates their fair value. Cash held within the brokerage account is included in investments. Both realized and unrealized gains or losses are recorded in the statement of operations. Transaction costs are expensed as incurred. Fixed income investments maturing within twelve months of year end are classified as current. The balance of the investments are classified as long-term assets due to the Council's intention to hold them long term. Prepaid expenses Prepaid expenses are recorded for goods and services that have been paid for in the current year but which will be received in the next fiscal. The balance at year end is composed primarily of prepaid insurance and leases. Page 7

NOTES TO THE FINANCIAL STATEMENTS AUGUST 31, 2013 AND AUGUST 31, 2012 Capital assets Purchased assets are recorded at cost. Amortization is provided on a straight-line basis over the estimated useful life of the asset, which for leasehold improvements is the term of the lease. Revenue recognition Unrestricted contributions are recognized as revenue of the General Fund in the year received. Endowment donations and bequests are recognized as revenue of the Endowment Fund. Other restricted contributions are recognized as revenue in the year in which the related expenses are incurred. Offerings and donations are recorded as revenue on the date they are received. The change in the fair value of the investments for the year is recorded as investment income in the statement of operations. Donated materials and services Donated materials and services are recognized as revenue when a fair value can be reasonably estimated and when the materials and services would be purchased if not received as donations. Volunteers contribute many hours per year to assist the Council in carrying out its objectives. These voluntary efforts represent a major contribution outside the scope of these financial statements. Use of estimates The preparation of the financial statements in conformity with Canadian generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amount of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. An example of an estimate is accrued liabilities. By their nature, these estimates are subject to measurement uncertainty and the effect on the financial statements of changes in such estimates in future periods could be significant. 2. ADOPTION OF ACCOUNTING STANDARDS FOR NOT-FOR-PROFIT ORGANIZATIONS Effective August 31, 2012, the Council elected to adopt the Canadian accounting standards for notfor-profit organizations. These are the first financial statements prepared in accordance with this new framework which have been applied retrospectively. Management reviewed the exemptions provided on transition to the Canadian accounting standards for not-for-profit organizations and has elected to designate all investments to be subsequently measured at fair value, which is consistent with the accounting policy in place at the time of the transition. The adoption of Canadian accounting standards for not-for-profit organizations had no material impact on the previously reported assets, liabilities and net assets of the Council, and accordingly, there has been no restatement of previously reported amounts as at the date of the transition, being September 1, 2011. The presentation and disclosures in the financial statements reflect the requirements under the new accounting framework. Page 8

NOTES TO THE FINANCIAL STATEMENTS AUGUST 31, 2013 AND AUGUST 31, 2012 3. FINANCIAL INSTRUMENTS AND RISKS Fair value Canadian generally accepted accounting principles require that the Council disclose information about the fair value of its financial assets and liabilities. Fair value estimates are based on relevant market information and information about the financial instruments. The investments are carried at market value, which approximates their fair value. The carrying amounts for accounts payable and accrued liabilities on the balance sheet approximate their fair value because of the limited term of these instruments. Liquidity risk Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities. The Council is exposed to this risk mainly in respect of its accounts payable and accrued liabilities. The Council expects to meet obligations as they come due primarily from cash flow from operations. Interest rate risk Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Council is exposed to interest rate risk on its fixed income investments which have fixed interest rates. Fluctuations in market interest rates will affect their market value. Other price risk Other price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices (other than those arising from interest rate risk or currency risk), whether those changes are caused by factors specific to the individual financial instrument or its issuer, or factors affecting all similar financial instruments trading in the market. The Council is exposed to other price risk on its investments in mutual funds. Page 9

NOTES TO THE FINANCIAL STATEMENTS AUGUST 31, 2013 AND AUGUST 31, 2012 4. INVESTMENTS As at year end, the investment balance at market value consists of the following: Cash on account with broker $ 1,043 $ 345 Fixed income 87,524 88,234 Mutual funds 200,616 205,546 $ 289,183 $ 294,125 The fixed income investments in 2013 are step-up bonds which bear interest at various rates ranging from 1.50% to 4.25% and mature between June 2017 and June 2023. These investments have been classified as long-term on the statement of financial position due to the Council's intention to hold them long term. Short-term investments $ 201,659 $ 294,125 Long-term investments 87,524 $ 289,183 $ 294,125 5. LEASE COMMITMENTS The Council is committed, under operating leases for its premises and office equipment, to future minimum annual lease payments as follows: Premises Office equipment Total Year ending 2014 $ 35,284 $ 8,742 $ 44,026 2015 8,742 8,742 2016 8,742 8,742 2017 8,742 8,742 2018 1,816 1,816 $ 35,284 $ 36,784 $ 72,068 Page 10