The following is the Chief Secretary’s 2nd quarter report for the Canada and Bermuda territory in 2007:

EVANGELISM

Over the past few months many Salvationists have shared a common desire to see the “good news of the kingdom of God” advanced among the men, women, and children of our nation. Red Cap training (Anger Management for Youth) was conducted in three regions of the country this spring in preparation for use in school settings. Adult fellowship (groups for men, women, couples, seniors) continues to have a positive influence. Corps keep reaching out to their neighborhoods / communities through life-skill programs, 12 Step ministries, ESL (English as a Second Language) and feeding programs.

CHILDREN & YOUTH MINISTRY

In addition to regular youth programming, and events, the Corps Ministries Secretary recently addressed the Territorial Leaders Conference, sharing the significant challenges for youth ministry in our territory, issues not unique to our denomination. As a result, one day of the fall Leaders Conference will be devoted to Youth Ministry.

Recommendations of a Camping Task Force are being implemented and two divisional camps will be closed. Part of a plan to enhance programming, this transition, along with changing divisional borders, and the evolving role of the Divisional Youth Secretary create an opportune time to strategize for Youth and Children Ministry.

PROPERTY

Hamilton Meadowlands- Hamilton, ON

The new Hamilton Meadowlands Corps was opened by the Divisional Commander, Major Alf Richardson on June 2, 2007.

The previous Corps building, formerly known as Hamilton Temple was located in the heart of downtown Hamilton. Unfortunately it was showing signs of age and the potential for growth in the congregation was limited due to the lack of residential properties in the area.

As a result, it was decided to purchase a 2.6 acres property in a suburb of Hamilton known as Ancaster.

On this site a new 22,500 SF wood frame and block building was constructed. The exterior is clad with a mix of architectural block and stucco. The interior boasts a bright sanctuary with a seating capacity of approximately 400, with provision for a future balcony designed to hold an additional 160 seats.

The new facility has a commercial kitchen, full gymnasium, large YP area and a wing dedicated to Family Services work.

The global cost for the project was approximately $3.1 million.

Wiseman Centre, St. John's, NL

Dedicated in April 11th 2007, The Wiseman Centre is home to 20 men in shelter accommodation and 10 men in self contained apartments.

The project comprised extensive renovations to a century home and a new three storey wing for the majority of the residential needs.

The ground floor areas include administration, programme offices and support spaces. Communal areas such as kitchen, dining, recreation and lounge spaces have been placed in the original house to create a home like setting. The upper floors are primarily residential but also include programme rooms, a library, boardroom and a kitchen for teaching life skills.

The total project cost was $3,600,000.00 with various government programmes contributing $1,637,500.00.

This much welcomed facility re-establishes the Army's social services presence in the downtown of St. John's.

Southview Heights- Vancouver, B.C.

The opening and dedication of Southview Heights, a 57 unit seniors assisted housing development, took place on May 23, 2007.

The Southview Heights project is an addition to our similar sized congregate care seniors housing facility, Southview Terrace, which was constructed in the late 1990’s.

The Heights was funded through the Provincial Assisted Living Program with most of the capital coming from BC Housing, a provincially funded housing agency.

Nanaimo New Hope Centre- Nanaimo, BC

The Nanaimo New Hope Centre, Phase II, opened on June 1, 2007.

This community resource centre has living accommodation for single men and women as well as emergency housing for families. Small transitional self contained housing units for men are located on the upper two floors, and a drop-in centre and feeding program are located on the ground floor.

Funding for this project was from a number of sources including BC Housing, the City of Nanaimo, Service Canada, a federal homelessness initiative, as well as Nanaimo Corps.

WORLD MISSIONS

The first quarter of 2007 was a busy time for the staff of the World Missions Department. The staff was engaged in a number of overseas trips to Tanzania, Malawi and Kenya to monitor ongoing projects and research new possibilities. This resulted in a new project proposal which was submitted to CIDA (Canadian International Development Agency) in June. This $1.65 million dollar project focuses on HIV/AIDS Prevention and Livelihood Development in Tanzania, Malawi and Kenya.

Staff also visited Sri Lanka to monitor the progress of the ongoing tsunami project in that country. In spite of all of the difficulties encountered working in Sri Lanka, our team on the ground is to be congratulated for its excellent work.

The Child Sponsorship Program continues to have a large impact on meeting the needs of some of the poorest children of the world. Presently, we have 1960 donors who sponsor 2660 children around the world.
FINANCE
THQ GENERAL FUND BUDGET

During the year ended March 31, 2007, the General Fund realized a surplus of $2.2 million, compared to a budgeted deficit of $2.6 million.

Key factors resulting in this greatly improved result were:

· Management Support Assessment (“MSA”) levies from ministry units were $1.1 million higher than originally anticipated.
· Territorial Headquarters operating costs were $1.3 million less than budget.
· Pension and post retirement benefits costs were $1.4 million less than budget.

The approved budget for 2007/08 projects a deficit of $2.1 million. As of the date of preparation of this report, the first quarter’s results have not been finalized; however, the Finance Department is not aware of any major factors at this point which would significantly impact the projected budget.

BANKING SERVICES

Following an extensive review of proposals received from four major financial institutions, including the Territory’s incumbent banker, the Canadian Imperial Bank of Commerce, a decision was made in early July 2007 to appoint the Royal Bank of Canada as the Territory’s primary banker.

Transition is expected to take about six to nine months, and will be deliberately staggered to minimize impact on ministry units.

INVESTMENTS

The Territory’s investment portfolios enjoyed significant returns during fiscal 2007

Both the General Investment Fund and Officers’ Retirement Trust Fund had a one-year return of 11.2% in the year ended March 31, 2007, compared to a benchmark of 10.1%.

Over the four-year period ending March 31, 2007, the General Investment Fund had an average annual return of 15.2%, compared to a benchmark of 13.7%, while the Officers’ Retirement Trust Fund had an average annual return of 14.4%, compared to a benchmark of 13.7%.

The lagging performance of the Officers’ Retirement Trust Fund in the first three years of the four-year period relates to the Fund having a different Canadian equity manager at that time whose performance was lagging the managers employed on behalf of the General Investment Fund. The same managers are now employed for both funds.

FUNDRAISING

The Territory’s fund-raising results for 2006/07 reveal significant increases in both the National Red Shield Appeal ($40.6 million, up from $38.0 million in the prior year) and legacy income ($44.2 million, compared with $42.1 million in the prior year).

Results for the public World Services Appeal are also up ($1.2 million, compared with $1.0 million the prior year) in the current year, but lag earlier years’ results, and reflect an increasing challenge to raise sufficient funds from the public to support the Territory’s commitment to the international Army. At the same time, the increase seen during the past year is encouraging.

In total, the Army in Canada & Bermuda is allocated almost $7 million to the Army’s international work in 2006/07, compared with just over $4 million five years ago. This, too, is encouraging in that it is the Territory’s desire to increase its resourcing of the international Army as much as possible in the next few years.

End of Canada and Bermuda Territory - Chief Secretary's Report