Financial Report to the Membership for the 2025 AGM
For the Year Ended December 31, 2024
On behalf of the Board of Directors, I am pleased to table the financial report for Municipalities Newfoundland and Labrador Inc. for the fiscal year ending December 31, 2024. I extend our sincere appreciation to the Finance and Administration Committee, the MNL Management Team, MNP Financial, and our auditors at Harris Ryan for their continued diligence and guidance as we work to ensure responsible stewardship of the organization’s resources and a stable financial foundation for the future.
Overview
MNL’s financial performance in 2024 reflects meaningful progress toward long-term financial stability. The organization reported an excess of revenues over expenses of $58,023, compared to a deficiency of $65,030 in 2023. This improvement demonstrates a continued commitment to operating within our means while delivering high-value programs and services to our membership.
Revenue for 2024 totaled $1,818,911, an increase from $1,622,714 in the previous year. This growth was led by stronger membership revenue and a significant expansion of project-based work. Membership assessments rose to $515,339 in 2024, up from $469,758 in 2023, and project revenues increased substantially to $221,816, reflecting the successful launch of new initiatives in housing capacity building, community development, and administrative support.
Meetings and events revenue totaled $660,630 in 2024. While this reflects a decrease from 2023 levels, the reduction aligns with the location of our conference (smaller event in Gander than St. John’s), planned adjustments to event delivery and the transition from pandemic recovery-period attendance patterns to a more stable and sustainable event model moving forward.
Operational expenses were managed with continued prudence. Total expenditures in 2024 were $1,763,362, compared to $1,690,397 in 2023. This increase is attributed primarily to project delivery costs and targeted travel for member outreach and program delivery. Core administrative spending remained disciplined, and amortization expenses decreased to $108,722, down from $113,908 the prior year.
Of significance, deferred revenue increased to $1,082,301 from $621,947, reflecting secured funding for ongoing and upcoming multi-year projects. This provides a clear and stable pipeline of program activity into 2025 and beyond.
Financial Position
MNL’s cash position strengthened considerably in 2024, with total cash and term deposits increasing to $459,097, up from $325,403 in 2023.
Accounts receivable increased to $941,652, which reflects year-end timing of project reimbursements and invoicing cycles, and is consistent with the increased scope of project activity underway.
During the year, the organization refinanced its callable debt, consolidating past borrowing into a structure that provides greater certainty and predictable monthly obligations while maintaining security against the organization’s property. This decision strengthens MNL’s long-term financial planning capacity and supports stable cash flow management.
Investment and Capital Outlook
MNL continues to maintain term deposits and reserve balances consistent with prudent financial management. As in previous years, the organization’s building at 79 Mews Place remains a core asset that provides both operational workspace and rental income.
Capital spending in 2024 was minimal, with targeted investment in equipment and maintenance necessary to support daily operations.
Commitment to Sound Governance
The Board of Directors remains focused on strong financial oversight, transparent reporting, and careful planning. The gains made in 2024 reflect not only stronger revenue performance but also disciplined decision-making and a governing structure that prioritizes stability and value to members.
MNL enters 2025 with:
- Strengthened financial performance
- Increased project funding secured across multiple priority areas
- A balanced and sustainable approach to operations
- A renewed commitment to delivering effective support to municipalities province-wide
The Board is confident that the foundation now in place positions MNL to continue advancing the collective interests of municipalities across Newfoundland and Labrador.
Mayor Danny Breen, City of St. John’s
Chair of Finance Committee