North End Revitalization Inc. Financial Statements March 31, 2018

Transcription

1 Financial Statements March 31,

2 Independent Auditors Report To the Members of : We have audited the accompanying financial statements of, which comprise the statement of financial position as at March 31,, and the statements of operations and changes in net assets, cash flows and the related schedules for the year 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 notforprofit 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. Auditors' Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we comply with ethical requirements and plan and perform the audit 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 auditors 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 is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements present fairly, in all material respects, the financial position of as at March 31, and the results of its operations, changes in net assets and its cash flows for the year then ended in accordance with Canadian accounting standards for notforprofit organizations. Winnipeg, Manitoba May 28, Portage Ave., Winnipeg, Manitoba, R3B 3K6, Phone: (204) , 1 (877) Chartered Professional Accountants

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4 Statement of Operations and Changes in Net Assets Revenues City of Winnipeg Grants Neighbourhood Housing program 125, ,836 Province of Manitoba Grants Special Projects Community Housing Improvement Initiative Neighbourhood Development Assistance: Core 209, , , , , , , , , , ,170 5, , ,369 1, ,657 5, , ,641 1, , ,573 Other revenue Administration fees related party (Note 5) Administration fees and other revenue Expenses Administrative fees related party (Note 5) Bad debts Bank charges Office Professional fees Project costs Salaries and benefits Telephone Travel Excess of revenues over expenses Net assets, beginning of year Net assets, end of year The accompanying notes are an integral part of these financial statements 2

5 Statement of Cash Flows Cash provided by (used for) the following activities Operating activities Excess of revenues over expenses Changes in working capital accounts Accounts receivable Accounts payable and accruals Deferred grant revenue 3,860 4,281 (24,628) (27,476) 71 8,479 (16,487) (18,926) 17,184 11,608 Increase (decrease) in cash resources Cash resources, beginning of year 697 4,855 (7,318) 12,173 Cash resources, end of year 5,552 4,855 Financing Amounts received from related party The accompanying notes are an integral part of these financial statements 3

6 Notes to the Financial Statements 1. Nature of the organization (the "Organization") was incorporated on January 8, 2007 as a nonprofit organization without share capital under the laws of the Province of Manitoba. The objectives of the Organization are to further social, economic and cultural development of the North End of Winnipeg. The Organization qualifies for taxexempt status under paragraph 149(1) of the Income Tax Act. 2. Significant accounting policies The financial statements have been prepared in accordance with Canadian accounting standards for notforprofit organizations and include the following significant accounting policies: Cash Cash and cash equivalents include balances with banks and shortterm investments with original maturities of three months or less. Cash subject to restrictions that prevent its use for current purposes is included in restricted cash. Capital assets Purchased capital assets in excess of $5,000 are recorded at cost. Contributed capital assets are recorded at fair value at the date of contribution if fair value can be reasonably determined. Revenue recognition The Organization follows the deferral method of accounting for contributions. Restricted contributions are recognized as revenue in the year in which the related expenses are incurred. Unrestricted contributions are recognized as revenue when received or receivable if the amount to be received can be reasonably estimated and collection is reasonably assured. Administration fee income is recognized as revenue when the service is performed and collection is reasonably assured. Contributed services Contributions of services from volunteers are not recognized in the financial statements because of the difficulty in determining their value. Financial instruments The Organization recognizes its financial instruments when the Organization becomes party to the contractual provisions of the financial instrument. All financial instruments are initially recorded at their fair value. Financial assets and liabilities originated and issued in all other related party transactions are initially measure at their carrying or exchange amount in accordance with Section 3840 Related Party Transactions. The Organization subsequently measures investments in equity instruments quoted in an active market at fair value. Fair value is determined by published prices. Investments in equity instruments not quoted in an active market are subsequently measured at cost less impairment. With the exception of those instruments designated at fair value, all other financial assets and liabilities are subsequently measured at amortized cost. Transaction costs and financing fees directly attributable to the origination, acquisition, issuance or assumption of financial instruments subsequently measured at fair value are immediately recognized in the excess of revenues over expenses for the current period. Conversely, transaction costs and financing fees are added to the carrying amount for those financial instruments subsequently measured at amortized cost or cost. 4

7 Notes to the Financial Statements 2. Significant accounting policies (Continued from previous page) Measurement uncertainty (use of estimates) The preparation of financial statements in conformity with Canadian accounting standards for notforprofit organizations requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Accounts receivable and advances to related party are stated after evaluation as to their collectability and an appropriate allowance for doubtful accounts is provided where considered necessary. These estimates and assumptions are reviewed periodically and, as adjustments become necessary, they are reported in the statement of operations in the period in which they become known. 3. Cash The Organization has an operating line of credit of $5,000 ( $5,000). The line of credit is due on demand, bears interest at the credit union's prime rate (3.45%) plus 1% (effective rate of 4.45%), calculated and payable monthly, and is secured by a registered general security agreement registered as a first charge over all assets and assignment of All Risks Fire and Theft Insurance on all capital assets together with business interruption insurance. At March 31, there is no outstanding amount. 4. Accounts receivable Manitoba Health and Education Tax Levy Grants GST receivable 5. 2,158 33, ,024 36,007 1,208 35,379 39,239 Advances to (from) related party The Organization is controlled by North End Community Renewal Corporation ("NECRC") as NECRC appointed members of the Organization's Board of Directors at the inception of the organization, the majority of members of the Organization are members of NECRC's Board of Directors and the Organization and NECRC have common management. Transactions between the two organizations are measured at the exchange value (the amount of consideration established and agreed to by the related parties), which approximates the arm's length equivalent value for services rendered. Advances to (from) the related party are noninterest bearing, unsecured and have no repayment terms. The following summarizes transactions with NECRC for the year: Revenues Administration fees 6 6 Expenses Administration fees Rent 28,000 15,000 28,000 15,

8 Notes to the Financial Statements 6. Accounts payable and accruals Grants repayable Wages payable Benefits payable Professional fees Vacation and sick leave payable 7. 10,617 3,137 5,300 9,688 3, ,100 15,578 28,742 24,461 Deferred grant revenue City of Winnipeg Grant Neighbourhood Housing Balance, beginning of year Amount recognized as revenue Amounts deemed repayable Balance, end of year 10,617 (10,617) 16,524 (5,907) Province of Manitoba Neighbourhoods Alive! Special Project Balance, beginning of year Amounts received Amount recognized as revenue Balance, end of year 8. 14,386 (14,011) 10, ,000 (195,614) , ,003 Economic dependence The Organization is economically dependent upon grants from the Province of Manitoba and the City of Winnipeg for financing its operations. 9. Financial instruments The Organization, as part of its operations, carries a number of financial instruments. It is management's opinion that the Organization is not exposed to significant interest, currency, credit, liquidity or other price risks arising from these financial instruments except as otherwise disclosed. 6

9 Schedule of Storefront Enhancement Grants Adonis Spa Angelo's Chip Shop 1,068 Animal Hospital of Manitoba Ben Salnikonski 1,309 BUILD Inc. 2,916 Elvis Pawn Shop Golden Hand Jewellery House of Covenant International Church 2, M. C. DeLandes Ma Mawi Wi Chi Itata Centre, Inc. Maw & Paw Collectible Mom & Dad's Grocery 874 Neechi Commons New West Hotel North Star DriveIn P & R Pawn Traders Retail Management Services Selkirk Avenue Biz 2,405 St. Michael's Eritrean Orthodox Tewahedo 2, Trident Press URS Convenience Store White Top Restaurant Winnipeg Old Country Sausage Ltd 57,625 The total storefront grants given out in were $43,614. 7

10 Schedule of Small Grants 1,500 1,291 1,337 1,050 2,475 2,495 2,337 1,900 1,492 1, ,100 78,969 Aboriginal Music Manitoba Aboriginal Music Manitoba Aboriginal Seniors Resource Centre Aboriginal Vision for the North End Aboriginal Vision for the North End Alliance Boxing Alliance Boxing Arrows Hockey Team Bear Clan Patrol Inc. Bear Clan Patrol Inc. Bear Clan Patrol Inc. Bethlehem Aboriginal Fellowship Bethlehem Ministries Inc. Children of the Earth High School Children of the Earth High School Circle of Life Thunderbird House Circle of Life Thunderbird House Dufferin Residents Association of Winnipeg Dufferin Residents Association of Winnipeg Dufferin Residents Association of Winnipeg Dufferin Residents Association of Winnipeg Eaglewing Education Centre Feed My Lambs Street Mission Inc. Filipino Seniors Group Food Matters Manitoba Inkster North End Residents Association Inner City Youth Alive Lord Selkirk Park Adult Learning Program Lord Selkirk Park Adult Learning Program Ma Mawi Wi Chi Itata Centre Ma Mawi Wi Chi Itata Centre Machray Day Nursery Machray Day Nursery Machray Elementry School Mount Carmel Clinic Niji Mahkwa School North Centennial Seniors Association North End Community Helpers Network North End Community Helpers Network North End Community Helpers Network North End Community Helpers Network North End Elders Wellness Program Subtotal (continued on next page) 8 1,000 2,402 2, ,000 1,900 75,500

11 Schedule of Small Grants Subtotal (continued from previous page) North End Women's Centre North End Women's Centre North Point Douglas Seniors Association North Point Douglas Seniors Association North Point Douglas Women's Centre North Point Douglas Women's Centre North Point Douglas Women's Centre Open Doors Adult Literacy Program Parent Run Lunch Program DL School Parent Run Lunch Program DL School Point Douglas Residents Committee Point Douglas Residents Committee Point Douglas Residents Committee Point Douglas Residents Committee Point Powerline Inc Ralph Brown Community Centre Ralph Brown Community Centre Ralph Brown School Ralph Brown School Parent Council Sarasvati Dramatic Theatre & Repertory Sarasvati Dramatic Theatre & Repertory Shift 180 SPLASH Child Care SPLASH Daycare St. John's High School St. John's High School Synonym Art Consultation The Manitoba Lung Association The Point Community News The Point Community News The WRENCH Urban Circle Training Centre Women Healing for Change Youth For Christ Teen Moms Program Youth for Christ/Workforce Youth for Christ/Workforce Youth for Christ/Workforce Zion Apostolic Church 9 78,969 75,500 2,390 1, ,250 1,492 1, , ,093 1, ,400 1,988 1,000 1, , ,248