BRITISH COLUMBIA AMATEUR HOCKEY ASSOCIATION

Transcription

1 Financial Statements of BRITISH COLUMBIA AMATEUR HOCKEY ASSOCIATION Year Ended March 31, INDEX Independent Auditors' Report Statement of Financial Position Statement of Changes in Net Assets Statement of Operations - Unrestricted General and Development Fund Statement of Operations - Internally Restricted Funds Cash Flow Statement Notes to the Financial Statements

2 Wiseman & Mills CHARTERED PROFESSIONAL ACCOUNTANTS INDEPENDENT AUDITORS' REPORT To: The Members of British Columbia Amateur Hockey Association We have audited the accompanying fmancial statements of British Columbia Amateur Hockey Association (the "Association"), which comprise the statement of fmancial position as at March 31, and the statements of changes in net assets, operations and cash flows for the year then ended, and a summary of significant 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 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 fmancial 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 fmancial 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 our judgment, including the assessment of the risks of material misstatement of the fmancial statements, whether due to fraud or error. In making those risk assessments, we consider 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 fmancial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion CHATTERTON WAY, VICTORIA BC V8X 5J2 wisemanmills.ca Tel: Fax:

3 INDEPENDENT AUDITOR'S REPORT (cont'd) Opinion In our opinion, these financial statements present fairly, in all material respects, the fmancial position of the Association as at March 31, and the results of its operations, changes in net assets and cash flows for the year then ended in accordance with Canadian accounting standards for not-for-profit organizations. Report on Other Legal and Regulatory Requirements As required by the Societies Act of British Columbia, we report that in our opinion, these principles have been applied on a basis consistent with that of the preceding year. Victoria B.C. May 20, Chartered Professional Accountants I A & fie M

4 STATEMENT OF FINANCIAL POSITION MARCH 31, CURRENT Cash Cash (internally restricted fund s) (Schedule 2) Accounts receivable Prepaid expenses TANGIBLE CAPITAL ASSETS (Note 3) ASSETS 1,561,891 1,400, , ,533 4,019,874 I,3 53,978 5,373,852 1,911,460 1,621, , ,739 4,303,192 1,228,109 5,531,301 CURRENT Accounts payable and accrued liabilities Deferred revenue (Note 4) Deferred contributions (Note 5) LIABILITIES 1,077, , ,910 1,683, , , ,159 1,647,343 NET ASSETS lnvestment IN TANGIBLE CAPITAL ASSETS UNRESTRICTED - General and Development Fund lnternall Y RESTRICTED FUNDS (Schedule 2) 1,353, ,391 1,400,807 1,228,109 1,034,177 1,621,672 3,690,176 5,373,852 3,883,958 5,531,301 Approved by the Board: Director Chair See accompanying notes

5 STATEMENT OF CHANGES IN NET ASSETS YEAR ENDED MARCH 31, Unrestricted Internally Investment in General and Restricted Tangible Development Funds Capital Assets Fund (Schedule 2) Total Total NET ASSETS, beginning of year 1,228,109 1,034,177 1,621,672 3,883,958 4,246,377 INTERFUND TRANSFERS 197,145 (197,145) EXCESS (DEFICIENCY) OF REVENUE OVER EXPENSES (170,062) (23,720) (193,782) (362,419) AMORTIZATION OF TANGffiLE CAPITAL ASSETS (269,551) 269, ,420 (395,420) NET ASSETS, end of year 1,353, ,391 1,400,807 3,690,176 3,883,958 See accompanying notes

6 STATEMENT OF OPERATIONS UNRESTRICTED GENERAL AND DEVELOPMENT FUND YEAR ENDED MARCH 31, REVENUE (Schedule 1) EXPENSES Amortization Annual General Meeting Bad debts Bank charges Building occupancy Commitee travel and meetings Fees - transfer fees 1 OOth Anniversary Grants and awards Hockey Canada assessments Hockey Canada insurance Marketing, promotion and merchandise Office supplies and equipment Programs - championships -coaching -education - female midget AAA - major midget league - mentorship - minor recreational - officiating - program of excellence - female - program of excellence - male - regional centres - safety and risk management - sledge -zone pilot Professional fees Tournaments Wages and benefits Website World Junior Championships ,037,228 8,132, , , , , ,493 54,188 48,667 71,722 80, , ,183 57,325 58,458 16,651 7,274 14, , , , , , , , , , , , , ,388 77, , ,375 1,937,222 1,925,054 85, ,529 41,492 65, , , , , , ,062 75,535 80,841 82,108 8,627 7, ,098 23,679 37,938 26,686 16,680 12,930 1,206,311 1,153,433 21,571 31,238 4,734 44,426 9,207,290 8,484,517 (DEFICIENCY) OF REVENUE OVER EXPENSES (170,062) (352,21 0) See accompanying notes iii A i fjjiipi epee-

7 STATEMENT OF OPERATIONS INTERNALLY RESTRICTED FUNDS YEAR ENDED MARCH 31, REVENUE Scholarship and Assistance contributions Junior B contributions Interest earned 342 3,360 13,813 17, ,280 8,149 11,606 EXPENSES Scholarship and Assistance disbursements Junior B disbursements Female Hockey disbursements Drill Manual disbursements 32,912 3,000 3,475 1,848 41,235 15,000 6, ,815 (DEFICIENCY) OF REVENUE OVER EXPENSES (23,720) (10,209) See accompanying notes

8 CASH FLOW STATEMENT YEAR ENDED MARCH 31, CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES Excess (deficiency) of revenue over expenses Unrestricted General and Development Fund Internally Restricted Funds Adjustments for: Amortization Changes in non-cash working capital Accounts receivable Prepaid expenses Accounts payable and accrued liabilities Deferred revenue Deferred contributions Cash flows from (used in) operating activities CASH FLOWS (USED IN) INVESTING ACTIVITIES Purchase of tangible capital assets NET (DECREASE) IN CASH CASH AND CASH EQUIVALENTS - beginning of the year CASH AND CASH EQUIVALENTS - end of year (170,062) (23,720) (193,782) 269,551 75,769 (164,323) (122,795) 138,585 (189,002) 86,751 (175,015) (395,420) (570,435) 3,533,133 2,962,698 (352,210) (10,209) (362,419) 222,972 (139,447) (71,421) (40,081) 277,247 45,836 (23,143) 48,991 (218,840) (169,849) 3,702,982 3,533,133 CASH is comprised of the following: Cash Cash (internally restricted funds) 1,561,891 1,400,807 2,962,698 1,911,460 1,621,673 3,533,133 See accompanying notes

9 NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED MARCH 31, 1. PURPOSE OF THE ORGANIZATION The British Columbia Amateur Hockey Association ("the Association") is a provincial organization whose purpose is to foster, improve and perpetuate the game of amateur hockey in the Province of British Columbia and the Yukon Territory. The Association is incorporated under the Societies Act of British Columbia as a notfor-profit organization and is a tax exempt body under Section 149 of the Income Tax Act. 2. SIGNIFICANT ACCOUNTING POLICIES The fmancial statements were prepared in accordance with Canadian accounting standards for not-for-profit organizations and include the following significant accounting policies: Revenue Recognition The Association follows the deferral method of accounting for grants and contributions received, whereby revenues are matched with expenses. Restricted contributions, if any, are recognized as revenue in the year in which the related expenses are incurred. Unrestricted contributions are recognized as revenue when received or receivable. Revenues from government operating grants are recognized over the term of the related funding agreements. Restricted government grants are recognized when the related expenses are incurred. Revenues from non-government operating grants are recognized over the term of the related funding agreements. Restricted non-government grants are recognized when the related expenses are incurred. Revenues from fees, assessments, marketing, programs, tournaments, and other sources are recognized in the year in which the related expenses are incurred. Interest income is recognized when received or receivable. Financial Instruments Financial assets and fmancia1liabilities are initially measured at fair value and are subsequently measured at amortized cost. Financial assets measured at amortized cost are tested for impairment when there are indicators of impairment. Cash and cash equivalents Cash is defmed as cash on hand, cash on deposit, outstanding deposits, and short-term deposits with maturity dates of less than 90 days, net of cheques issued and outstanding at the reporting date. Tangible Capital Assets Tangible Capital Assets are accounted for at amortized cost. Amortization is based on the estimated useful life of each asset using the following methods and rates: Building Computer hardware Computer software League equipment Furniture and equipment Website development 2% Straight -line 25% Straight-line 25% Straight-line 50 % Straight -line 10 % Straight-line 20% Straight-line In the year of acquisition only one-half the normal rate is applied, with the exception of league equipment.

10 NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED MARCH 31, Use of Estimates The preparation of these fmancial statements in conformity with Canadian accounting standards for notfor-profit organizations 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 reported period. These estimates are reviewed periodically and adjustments are made to income as appropriate in the year they become known. Actual results could differ from those estimates. Donated Materials and Services The Association and its members benefit from donated services in the form of volunteer time for various committees and programs. Because of the difficulty in determining fair value, donated services are not recognized in the fmancial statements. Wage Allocation A portion of wages incurred by the Association has been allocated to the expenses of certain programs administered by the Association. The allocation is based on the staff time dedicated to the respective program. 3. TANGffiLE CAPITAL ASSETS Cost Accumulated Amortization Net Land Building Computer hardware Computer software League equipment Furniture and equipment Website development 379, , ,067 28, , , , , ,500 23, , , , , , ,567 4,801 79, , ,386 2,214, ,011 1,353,978 Cost Accumulated Amortization Net Land Building Computer hardware Computer software League equipment Furniture and equipment Website development 379, , ,037 28, , , , , ,522 21, , , , , ,303 94,515 7,246 31, , ,925 2,083, ,746 1,228,109

11 NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED MARCH 31, 4. DEFERRED REVENUE Deferred revenue represents amounts received that relate to a future period. Prior year amounts have all been recognized in the current year. Variances from year to year are due to the timing of events, and payments received. The current year deferred revenue balance has decreased by 189,002 from the prior year, resulting from an decreased number of deposits being received. 5. DEFERRED CONTRIBUTIONS Deferred contributions represent unspent resources externally restricted for a particular program and restricted operating funding received in the current year that is related to a subsequent year. Variances from year to year are due to the timing of events, and corresponding expenses incurred. The current year deferred contributions balance has increased by 86,751 from the prior year. The deferred contributions balances are as follows: Canucks for Kids Fund - Sledge program Gaming World Jr. Gaming - Community Gaming Grant Telus Cup Legacy Program National Coach Mentorship Program 2012 Ul8 Women's National Championship Legacy - Dawson Creek Ministry of Community, Sport and Cultural Development -Canada Winter Games 3,779 2,784 97, ,604 33, ,910 12,406 2,784 1, ,600 4,927 33, , EMPLOYEE FUTURE BENEFITS The Association's policy with regard to retirement allowance provides for one week's pay for each full year of employment upon retirement for eligible employees. During the year the Association recorded a current expense of 14,810 towards the liability. 7. REMUNERATION PAID TO EMPLOYEES The association had four employees who received over 75,000 during the year. The total remuneration for the four employees was 423, iii'" P 'I 9 1 *

12 NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED MARCH 31, 8. WAGE ALLOCATION A portion of staff wages has been allocated to program expenses as detailed below Education 42,000 17,000 Female midget AAA 40,000 40,000 Major midget league 90,000 90,000 Mentorship 58,000 58,000 Officiating 120, ,000 Program of excellence - female 12,500 12,500 Program of excellence - male 12,500 12,500 Regional Centres 62,489 Risk Management 20,000 20,000 Sledge 7,500 7,500 Zone pilot program 103, , , LITIGATION AND THE NATIONAL EQUITY FUND The Association from time to time is named in legal actions from accidents and injuries by participants in Association play. It is anticipated that any claims arising from legal actions would be covered by liability insurance in place and/or the Canadian Hockey Association National Equity Fund. 10. FINANCIAL INSTRUMENTS Financial instruments measured at amortized cost include cash, accounts receivable, accounts payable and accrued liabilites. The risks that arise from transacting financial instruments include credit risk, liquidity risk and market risk. Market risk is comprised of interest rate risk, currency risk and other price risk. It is management's opinion that the Association is not exposed to significant credit, liquidity or market risks arising from these fmancial instruments except as described below: Credit Risk Credit risk is the risk that one party to a financial instrument will cause a fmancial loss for the other party by failing to discharge an obligation. The Association's main credit risks relate to its accounts receivable. The Association provides credit to its members in the normal course of operations. Liquidity Risk Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with fmancialliabilities. The Association is exposed to this risk mainly in respect of its accounts payable. Wiseman & Mills & 1 A- W'"P.'. : ;pse;w

13 SCHEDULEJ SCHEDULE OF REVENUE GENERAL AND DEVELOPMENT FUND YEAR ENDED MARCH 31, Annual General Meeting Assessments Fees and assessments- BC Hockey - Hockey Canada - Hockey Canada insurance Fees - teams and player cards Fees- transfers Grants - Grants and awards -Gaming Hockey Canada funding Interest and bank fees Marketing, promotion and merchandise Programs - coaching -education - female midget AAA - major midget league - mentorship - minor recreational - officiating - program of excellence - female - program of excellence - male - safety and risk management -sledge -zone pilot Tournaments World Junior Championships , ,345 30,686 29,909 1,242,279 1,227, , , , , , ,258 90,450 85, , , , , , ,892 16,283 11, , , , ,965 97,650 82, , ,850 1,736,023 1,781,118 85, ,529 27,316 37, , , , , , , ,704 95,040 8,627 7, ,622 11,839 76,050 70,220 30,000 9,037,228 8,132, Wiseman & Mills..., a ;-e; +;-e 111!1'" :

14 SCHEDULE2 SCHEDULE OF CHANGES IN INTERNALLY RESTRICTED FUNDS YEAR ENDED MARCH 31, GENERAL CONTINGENCY OPENING BALANCE: ADD: Interest earned LESS: Transfer to Unrestricted General and Development Fund CLOSING BALANCE: 728,608 6,254 (26,718) 708, ,979 3, ,608 GOVERNMENT ASSISTANCE CONTINGENCY FUND OPENING BALANCE: ADD: Interest earned LESS: Transfer to Unrestricted General and Development Fund CLOSING BALANCE: 454,827 3,904 (170,428) 288, ,548 2, ,827 SCHOLARSHIP AND ASSISTANCE OPENING BALANCE: ADD: Contributions ADD: Interest earned LESS: Disbursements CLOSING BALANCE: 346, ,865 (32,912) 316, , ,763 (15,000) 346,394

15 SCHEDULE OF CHANGES IN INTERNALLY RESTRICTED FUNDS YEAR ENDED MARCH 31, SCHEDULE2 (Continued) JUNIOR B HOCKEY OPENING BALANCE: ADD: Contributions ADD: Interest earned LESS: Disbursements CLOSING BALANCE: 30,362 3, (3,000) 30,984 33,289 3, (6,374) 30,362 FEMALE HOCKEY OPENING BALANCE: ADD: Interest earned LESS: Disbursements CLOSING BALANCE: 3, (3,475) 3, ,445 SENIOR HOCKEY OPENING BALANCE: ADD: Interest earned CLOSING BALANCE: 4, ,963 4, ,921.,_,,,.. '* : I'* 53 I 'I',,.

16 SCHEDULE OF CHANGES IN INTERNALLY RESTRICTED FUNDS YEAR ENDED MARCH 31, SCHEDULE2 (Continued) DRILL MANUAL OPENING BALANCE: ADD: Interest earned LESS: Disbursements CLOSING BALANCE: 43, (1,848) 42,363 44, (441) 43,834 PROGRAM OF EXCELLENCE OPENING BALANCE: ADD: Interest earned CLOSING BALANCE: 9, ,361 9, ,281 TOTAL INTERNALLY RESTRICTED FUNDS, end ofyear 1,400,807 1,62 1,672 I Eli I I I'*... 'I' ISM