YWCA PETERBOROUGH HALIBURTON FINANCIAL STATEMENTS AT MARCH 31, r~..~ Collins Barrow. Chartered Accountants

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1 FINANCIAL STATEMENTS AT MARCH 31, 2014 r~..~

2 FINANCIAL STATEMENTS AT MARCH 31, 2014 TABLE OF CONTENTS Page Number INDEPENDENT AUDITORS REPORT FINANCIAL STATEMENTS Statement of Financial Position Statement of Operations and Changes in Fund Balances Statement of Cash Flows Notes to the Financial Statements Independent Auditors Comments on Supplementary Financial Information Centennial Crescent Supplementary Schedule of Operations to r~.."

3 INDEPENDENT AUDITORS REPORT To the Board of Directors of the YWCA Peterborough Haliburton Collins Bar~w Kawa~hasLLP 272 Charl~te St~ Peterbo~ugh, Ontario K9J 2V vvww.collinsbarrowkawart has.corn We have audited the accompanying fmancial statements of the Y~VCA Peterborough Haliburton which comprise the statement of financial position as at March 31, 2014 and the statements of operations and changes in fund balances and cash flows for the year ended March 31, 2014 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 fmancial statements in accordance with Canadian accounting standards for not-for-profit organizations, and for such internal controls as management determines are 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 auditor s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fi aud or error. In making those risk assessments, the auditor considers internal controls relevant to the entity s preparation and fair presentation of the fmancial 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 controls. 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 fmancial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified audit opinion. Basis for Qualified Opinion In common with many charitable orgamzations, the orgamzation derives revenue from donations and fundmising, the completeness of which is not susceptible of satisfactory audit verification. Accordingly our verification of these revenues was limited to the amounts recorded in the records of the organization and we were not able to determine whether any adjuslments might be necessary to revenues, excess of revenue (deficiency) over expenditure, assets and fund balances. Note 2 describes the amortization policy with respect to the organization s capital assets for the Centennial Crescent Non-Profu Housing Project. The note also indicates that the organization is amortizing these assets in accordance with the Ministry of Municipal Affairs and Housing and the City of Peterborough accounting policies which is not in accordance with Canadian accounting standards for not-for-profit organizations. The estimated useful life of shnilar buildings is considered to be 20 years. If amortization had been provided on a straightline basis, amortization, municipal grants, and accumulated amortization would have been increased by $31,478 ( $36,248). The cumulative increase for accounts receivable and accumulated amortization since the Project commenced operations in 1992 would have been $2,370,029 ( $2,338,551). The closing fund balance for invested capital assets would have been $1,174,774 ( $1,284,121). Qualified Opinion In our opinion, except for the effects of the matters described in the Basis for Qualified Opinion Paragraph, the fmancial statements present fairly, in all material respects, the financial position of the YWCA Peterborough Haliburton as at March 31, 2014 and its financial performance and its cash flows for the year ended March 31, 2014 in accordance with Canadian accounfmg standards for not-for-profit organizations. B rr w LLP Chartered Professional Accountants Peterborough, Ontario May 26, 2014

4 STATEMENT OF FINANCIAL POSITION At March 31, 2014 ASSETS Operating Property Reserve Safe Haven Total Total Fund Fund Funds Fund Current Cash 23,130 23,130 34,653 Short-term investments(note 3) 164,120 1,073~ ~371 2,216,28l 2,526,902 Accounts receivable 127, , ,715 Prepaid expenses 25,081 25,081 25, ,750 1,073, ,371 2,391,911 2,762,215 Long-Term Investment (Note 3) 185, , ,643 Capital Assets (Note 4) 6,310,375 6,310,375 6,714,015 TOTAL ASSETS 339,750 6,310,375 1,259, ,371 8,887,903 9,660,873 LIABILITIES AND FUND BALANCES Current Liabilities Accounts payable and accruedltabilities (Note 5) Current portion of mortgages payable (Note 6) Deferred contributions (Note 7) 240, , ,512 98~ , , , , , ,861 Total Current Liabilities 339, ,395 1,086,145 1,133,069 Long-Term Liabilities Mortgages payable (Note 6) 4,134,048 4,134,048 4,475,660 Fund Balances Invested in capital assets 1,429,932 1,429,932 1,518,075 Externally restricted (Note 8) , , 1,492,843 1,746,061 Internally restricted (Note 8) 744, , ,008 Total Fund Balances 1,429,932 1,259, ,371 3,667,710 4,052,144 TOTAL LIABILITIES AND FUND BALANCES 339,750 6,310,375 1,259, ,371 8,887,903 9,660,873 Approved ~T~rd,, Director Director The accompanying notes are an integral part of this financia~sl nel

5 3 STATEMENT OF OPERATIONS AND CHANGES IN FUND BALANCES Operating Property Fund Fund Reserve Funds Safe Haven Fund Total 2014 Total 2013 Revenue Government of Canada (Note 10) 16,277 Province of Ontario (Note 10) 2,009,720 Municipal Government (Note 10) 364,419 United Way of Peterborough and District 218,765 Rental income 109,809 Sales 35,527 Fundraising events (Note 11) 153,536 Donations 389,320 Other (Note 12) 170,07l Investment income 51, , , , ,504 2,032,620 1,998, , , , , ,809 96,773 35,527 53, , ,352 1,525 78, , , , ,935 2,181 53,738 64,115 Total Revenue 3,519, ,496 44,104 78,175 3,956,776 4,024,421 Expenses Salaries and benefits 2,723,428 2,723,428 2,733,414 Building occupancy 492, , ,805 Mortgage interest 77,997 77,997 82,767 Program and service costs 268,970 51, , ,076 General and office 271, , ,412 Fundraising events (Note 11) 26,055 26,055 15,122 Amortization 429, , ,573 Total Expenses 3,860, ,910 51,056 4,341,210 4,230,169 Excess (Deficiency) Of Revenue Over Expenses, Before Transfers (341,243) (114,414) (6,952) 78,175 (384,434) (205,748) lnterfund Transfers 341,243 26,271 (3,516) (363,998) Excess (Deficiency) Of Revenue Over Expenses, ForTheYear (88,143) (10,468) (285,823) (384,434) (205,748) Fund Balances, beginningofyear 1,518,075 1,269,875 1,264,194 4,052,144 4,257,892 Fund Balances, endofyear 1,429,932 1,259, ,371 3,667,710 4,052,144 The accompanying notes are an integral part of this financial statement.

6 STATEMENT OF CASH FLOWS Cash From Operating Activities Excess (deficiency) of revenue over expenditures (384,434) (205,748) Amortization of capital assets 429, ,573 Amortization of deferred contributions related to capital assets (55,201) (55,201) Changes in non-cash working capital items Decrease (increase) in short term investments (Increase) decrease in accounts receivable 349,269 8,648 91,313 (50,594) Decrease (increase) in prepaid expenses 864 (3,657) (Decrease) increase in accounts payable and accrued liabilities (22,652) 32,910 Increase in deferred contributions related to operating activities 26,013 53, , ,032 Financing Activities Mortgage principal payments Loan forgiveness (160,296) (176,400) (155,526) (176,400) (336,696) (331,926) Investing Activities Purchase of capital assets (26,270) (57,397) Disposal (purchase) of investments (974) (6,373) (27,244) (63,770) Decrease In Cash (I 1,523) (111,634) Cash, Beginning Of Year 34, ,317 Cash, End Of Year 23,130 34,653 The accompanying notes are an integral part of this financial statement.

7 NOTE 1 : PURPOSE OF ORGANIZATION The Vision of YWCA Peterbomugh Haliburton is to see all women and children thriving. The Mission is to support the right of all women and their families to live free from violence, poverty and oppression as they pursue their desired futures. The organization provides empowering and accessible programs and services in response to community identified needs. NOTE 2: SIGNIFICANT ACCOUNTING POLICIES The YWCA Peterborough Haliburton uses the deferral method of accounting and reports on a fund accounting basis. The funds maintained are as follows: Fund Accounting (i) (ii) Operating fired - includes results of day-to-day operating transactions and all unrestricted contributions; Property fund - includes the organization s assets, liabilities, revenue and expenditures related to capital assets; (iii) Reserve funds - includes contributions for specified purposes which may be internally or externally restricted; and (iv) Safe Haven fund - includes contributions for the new Crossroads Shelter and enhanced programs to help abuse survivors recover and thrive, less related expenditures. Recognition of Revenue and Expenditures Restricted contributions are recognized as revenue of the appropriate fund in the year in which the related expenses are incurred. Unrestricted contributions are recognized as revenue of the appropriate fund when received or receivable if the amount to be received can be reasonably estimated and collection is reasonably assured. Restricted and unrestricted investment income is recognized as revenue when earned. Pledges receivable are recorded when received, unless a documented contract is entered into. Expenditures are reported on the accrual basis of accounting. The accrual basis of accounting recognizes expenditures in the period the goods or services are acquired and a legal liability is incurred. Capital Assets Land, land improvements, buildings, equipment and computers are recorded at cost and amortized in the properly fund. Contributed capital assets are recorded in the property fund at fair market value at the date of contribution. Amortization is provided on a straight line basis over the assets useful lives, which for buildings is 20 years, for land improvements is 15 years, for equipment is 5 years and for computers is 4 years. In accordance with Ministry of Municipal Affairs and Housing and the City of Peterborough accounting policies, for Centennial Crescent, an amount equal to the principal repayment on mortgages payable is recorded as amortization in the property fund. This amortization policy is not in accordance with generally accepted accounting principles.

8 6 NOTE 2: SIGNIFICANT ACCOUNTING POLICIES - (Continued) Operating Grants Claims for allowable operating costs are recorded as income in the current year. The reimbursement for these costs is dependent ultimately upon their acceptance by the various government agencies who fund the programs. Income Taxes The organization qualifies as a non-profit organization as defined by the Federal and Ontario Income Tax Acts and, as such, is not subject to federal and provincial income taxes. Management 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 amounts of assets and liabilities and disclosures of contingent liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting year. Key areas where management has made complex or subjective judgments (often as a result of matters that are inherently uncertain) include, among others, accounts payable, useful lives of capital assets, revenue recognition and amortization. Actual results could differ from these and other estimates, the impact of which would be recorded in future periods. Financial Instruments (i) Measurement The organization initially measures its financial assets and financial liabilities at fair value adjusted by the amount of transaction costs directly attributable to the instrument. The organization subsequently measures its financial assets and financial liabilities at amortized cost, except for those instruments that are quoted in an active market. Financial assets measured at amortized cost include cash and accounts receivable. Investments are measured at fair market value. Financial liabilities measured at amortized cost include accounts payable and accrued liabilities and mortgage payable. (ii) Impairment Financial assets measured at amortized cost are tested for impairment when there are indicators of possible impairment. When a significant adverse change has occurred during the period in the expected timing or amount of future cash flows from the financial asset or group of assets, a write-down is recognized in the statement of operations.

9 7 NOTE 3: INVESTMENTS Market Value Short-term Phillips, Hager & North Investment Funds Ltd. - short-term bond fund Guaranteed Investment Certificates, maturing between May 3, 2014 and May 3, 2017, interest between 2.2% and 2.75% Mutual funds 85,994 84,787 1,788,648 2,442, ,639 2,216,281 2,526,902 Phillips, Hager&NorthInvestment Funds Ltd. -bondfund 185, ,643 2,401,898 2,711,545 NOTE 4: CAPITAL ASSETS Accumulated Cost Amortization Land 242, , ,711 Land improvements 119,741 27~398 92, ,326 Buildings Administration 187, ,119 8,839 13,596 Centennial Crescent 4,420,193 1,928,909 2,491,284 2,651,580 Minden 593, , , ,463 Crossroads 3,667, ,654 3,088,425 3,270,871 Equipment 328, ,340 52,617 70,893 Computers 132, ,602 22,389 22,575 9,693,566 3,383,191 6,310,375 6,714,015 The Minden property was 52 O ~ funded by the Ministry of Corrtmunity and Social Services. Upon o disposition of the land and building, 52% of the proceeds must be repaid to the Province of Ontario.

10 NOTE 5: ACCOUNTS PAYABLE AND ACCRUED LIABILITIES Accounts payable and accrued liabilities consist of the following: Trade payables 61,925 72,894 Accrued liabilities 137, ,322 Payroll and withholding taxes 23,974 27,020 Funds held in trust l 7,276 17, , ,512 Included in accounts payable and accrued liabilities are funds held in trust in the amounts of $17,276 ( $17,:276). The YWCA Peterborough Hal!burton administers these funds for the Fairbaim Tenant Association and the YWCA Canada s Eastern Regional meetings. The transactions related to these funds are not included in the statement of operations and changes in fund balances. NOTE 6: MORTGAGES PAYABLE Mortgages payable consist of the following: $ 3.044% mortgage repayable in blended Monthly principal and interest instalments of $19,858, due October 1, 2014 and secured by Centennial Crescent land and buildings. Forgivable mortgage at a rate of one fifteenth annually, secured by YWCA resource centre land and building ifi Minden, due April 1, Forgivable mortgage at a rate of one fifteenth annually, secured by Crossroads land and building, due April 1, Less principal payments due within one year and amounts forgiven within one year 2,491,284 2,651, , ,776 1,872,000 2,028,000 4,475,660 4,812,356 (341,612) (336,696) 4,134,048 4,475,660 Chartered Accounlants

11 NOTE 6: MORTGAGES PAYABLE (Continued) Estimated principal repayments for the next five years on mortgages payable are as follows: Principal Forgivable Portion Total , , , , , , , , , , , , , , ,834 In 2005, Canada Mortgage and Housing Corporation (CMHC) provided a loan for the construction of the residential part ot the Minden HERS project which ~s to be used solely as a shelter for women and children who are victims of family violence. Forgiveness of the loan will be earned at a rate of one fifteenth of the original principal amount for each year the organization continues to own and use the project for the forementioned purpose. In 2011, CMHC provided a forgivable loan of $2,340,000 in respect to capital costs for the Crossroads shelter. The loan is forgivable over a term of 15 years. Forgiveness of the loan will be earned at a rate of one fifteenth of the original principal amount for each year the organization continues to operate in accordance with the agreement. Since it is the intent of the organization to renew the Centennial Crescent mortgage, it is included with long term mortgages payable. NOTE 7: DEFERRED CONTRIBUTIONS Deferred contributions in the operating fund relate to funding received in the current period for expenditures related to subsequent periods. Deferred contributions in the prpperty fund relate to capital funding which will be amortized over the useful life of the asset to wlaicla the funding relates. Operating Fund Private specified donation Status of Women Canada Other Ontario Trillium Foundation - Haliburton Ontario Trillium Foundation - Nourish Peterborough Project Lloyd Carr-Harris Foundation GiriSpace 28,242 54,434 2,223 26~404 29,600 20,448 15,000 21,192 12,000 21,380 17,244 98, ,277 Properly Fund 404, , , ,861 Chartered Accounlants

12 10 NOTE 8: RESERVE FUNDS Externally Restricted Hazel Fund Crossroads - Operating Centennial Crescent - Operating Centennial Crescent - Capital Long-term investment - Endowment Fund 8,800 11, , ,441 10, , ,762 2,389 2, , ,867 Safe Haven 978,371 1,264,194 1,492,843 1,746,061 Internally Restricted Y~VCA Crossroads - capital replacement Haliburton County 216 Simcoe St. - Capital 20,457 6, , , , , , , , ,008 Total 2,237,778 2,534,069 NOTE 9: ECONOMIC DEPENDENCE The organization receives a significant amount of funding from the Province of Ontario and the City of Peterborough and as such is economically dependent on these sources of revenue.

13 11 NOTE 10: GOVERNMENT REVENUE Details of government revenue are as follows: Government of Canada Service Canada 4,054 4,055 Status of Women Canada 12, ,149 Canada Mortgage and Housing Corporation 132, , , ,504 Prov mce of Ontario Ministry of Community and Social Services 2,000,120 1,950,720 Ministry of Health Promotion - 8,566 Ministry of Attorney General ,996 2,032,620 1,998,282 Municipal Government City of Peterborough - Housing - subsidy - Pay Equity - MicroFit Program 516, ,991 28,812 28,812 19,693 20, , ,270 NOTE 11 : FUNDRAISING EVENTS Event Net Proceeds Receipts Expenditures Nevada Tag Day Freedom Walk Bingo Walk-A-Mile Other fundraising events 18,640 11,304 7,336 8,794 11, ,207 11,787 19,356 2,525 16,831 26,789 16,729 2,132 14,597 26,856 78,450 8,516 69,934 36,395 8, ,576 19, , , ,230

14 12 NOTE 12: OTHER Other revenue includes the following: Ontario Trillium Foundation Community Counselling & Resource Centre Other grants Canadian Womens Foundation Womens Health Care Centre Peterborough County-City Health Unit Community Futures Development Corporation Haliburton County Development Corporation 101,140 96,468 23,220 23,226 30,068 16,966 11,700 7,575 7,575 35,000 15,000 8, , ,935 NOTE 13: RELATED ORGANIZATIONS Each local YWCA in Canada is a member of the YWCA Canada which, in turn, is part of the World YWCA. Each local YWCA operates autonomously, but pays national allocations based on revenue in return for membership services. NOTE 14: FINANCIAL INSTRUMENTS The organization has exposure to the following risks: Interest rate risk Interest rate risk is the risk that the value of financial instruments will fluctuate due to changes in market interest rates. Investments are subject to interest rate risk as their value will fluctuate with changes in the interest rate. Credit risk Credit risk arises from the potential that a counter party will fail to perform its obligations. The organization has lhnited exposure to credit risk as trade receivables are insignificant and all other receivables are due from various levels of government. Price risk 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 issues, or factors affecting all similar financial instruments traded in the market.

15 13 NOTE 15: LINE OF CREDIT The YWCA has a line of credit with a Canadian chartered bank for a facility to provide funding up to $200,000 at an interest rate of prime plus 1.5% per annum and is secured by a general security agreement. At March 31, 2014, the line of credit was $Nil ( $Nil). NOTE 16: CONTINGENCY In 2010, the organization entered into a grant agreement in the amount of $750,000 with the City of Peterborough for the Safe Haven project. The agreement has a first right of refusal option to acquire a specified property should the organization decide to offer it for sale in the future. In the event the option to purchase is exercised, $125,000 shall represent a down payment towards the purchase of the property. The amount is not repayable should the option not be exercised. In addition, should the organization cease to operate the shelter before the end of 25 years, the City may request repayment of a portion of the grant. NOTE 17: COMPARATIVE F1GURES Certain comparative figures were restated, where required, to conform to current year presentation. NOTE 18: SOCIAL HOUSING RENOVATION AND RETROFIT PROGRAM (SHRRP) The City of Peterborough has provided additional funding to the organization under the Social Housing Renovation and Retrofit Program (SHRRP), for capital related repairs. From 2010 to 2012, the Corporation was approved for $425,257 in funding under the program and incurred expenditures of $432,233. As part of the SHRRP funding agreement the organization acknowledges that the social housing units funded under the SHRRP shall remain under the City of Peterborough administration, and remain affordable to targeted households over the minimum 10 year affordability period.

16 Kawar~has LLP 272 Charlotte Street Peterborough, Ontario K9J 2V4 T. 705, R has.com AUDITORS COMMENTS ON SUPPLEMENTARY FINANCIAL INFORMATION TO The Board of Directors of YWCA Peterborough Haliburton The audited financial statements of YWCA Peterborough Haliburton as at Mamh 31, 2014 and our report thereon dated May 26, 2014 are presented in the preceding section. The financial information presented hereinafter was derived from the accounting records tested by us as part of the auditing procedures followed in our examination of the financial statements and, in our opinion, it is fairly presented in all material respects in relation to the financial statements taken as a whole. We have audited the financial statements ofywca Peterborough Haliburton, which comprise the statement of financial position as at March 31, 2014, and the statements of operations and changes in fund balances and cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information, and have issued our report thereon dated May 26, The audit was performed to form an opinion on the f mancial statements as a whole. The supplementary information is presented for the purposes of additional analysis and is not a required part of the financial statements. Such supplementary information is the responsibility of management and was derived from the underlying accounting and other records used to prepare the financial statements. The supplementary information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such supplementary information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves. Chartered Professional Accountants Peterborough, Ontario May 26, 2014

17 15 CENTENNIAL CRESCENT SUPPLEMENTARY SCHEDULE OF OPERATIONS Revenue Rental income 105,874 92,983 City of Peterborough Housing Subsidy received 533, ,400 Non-rental income 3,880 3, , ,228 Expenses Maintenance salaries and benefits 36,649 34,490 Maintenance material and services 62,716 59,216 Utilities Administration 81,842 91,696 74,133 93,864 Other 8,100 8,595 Municipal taxes 67,844 66,408 Mortgage interest Amortization 77, ,296 82, ,526 Transfer to capital reserve fund 30,215 29, , ,844 Excess Of Revenue Over Expenses Before Reconciliation 25,544 7,384 Due To City of Peterborough (16,537) (5,409) Excess Of Revenue Over Expenses 9,007 1,975 Fund Balance, beginning of year 3,126 1,151 Fund Balance, end of year 12,133 3,126