PARKDALE ACTIVITY-RECREATION CENTRE (TORONTO) FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2011

Transcription

1 FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2011

2 PARKDALE ACTIVITY - RECREATION CENTRE (TORONTO) MARCH 31, 2011 CONTENTS Page INDEPENDENT AUDITOR'S REPORT 1 FINANCIAL STATEMENTS Statement of Financial Position 2-3 Consolidated Statement of Operations and Fund Balances 4 Statements of Operations and Fund Balances 5-10 Statement of Cash Flows 11 Notes to the Financial Statements 12-18

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5 STATEMENT OF FINANCIAL POSITION Page 3 CURRENT LIABILITIES AND FUNDS March $ $ Accounts payable and accrued liabilities 196, ,944 Deferred revenue (Note 7) 212, ,668 Funds held for clients 46,345 57,279 Funds held for employees 38,030 26,056 Current portion of mortgage payable (Note 3) 17, , ,947 Mortgage payable (Note 3) 3,556,177 - Deferred revenue - Edmond Place (Notes 3 and 7) 2,697,746 2,497,839 Deferred revenue - PARC renovations (Note 7) 257, ,979 CAPITAL FUNDS 6,511,636 2,615,818 7,022,932 3,301,765 Capital fund - original 1499 Queen Street West 2,152,744 2,245,691 Capital fund - general assets 317, ,722 OPERATING FUNDS 2,470,535 2,586,413 Operating fund - primary program - - Operating fund Queen Street West building 26,616 25,959 Operating fund - Edmond Place (14,107) - Operating fund - additional programs - - Operating fund - resource development and fundraising fund 148, ,048 Capital reserve fund 142,735 97, , ,609 2,774,768 2,889,022 9,797,700 6,190,787 The accompanying notes are an integral part of these financial statements.

6 CONSOLIDATED STATEMENT OF OPERATIONS AND FUND BALANCE Page 4 Year Ended March $ $ REVENUE Ministry of Health (LHIN/MOHLTC) grants 1,684,072 1,586,430 Rents 190, ,567 Habitat funding 179,809 - The Silver Brush - Trillium Foundation, Toronto Enterprise Fund and other 172,667 23,816 City of Toronto grants 138, ,147 Federal, provincial and other grants 115,242 54,971 Other income 78,251 80,100 Donations 75, ,646 Foundation grants 61,973 34,071 Fundraising 35,462 24,623 Depreciation of deferred grants and donations 32,559 2,408 Interest ,765,278 2,218,484 EXPENSES Elevator 8,533 6,789 Fees for service 115,798 35,597 Fire prevention 3,795 3,939 Insurance 27,010 23,706 Loan interest 15,424 - Minor improvements and equipment 29,437 23,775 Office and computer 78,712 30,905 Other 32,950 49,123 Pest control 5,928 5,754 Program 116, ,889 Realty taxes 14,329 14,967 Repairs and maintenance 34,910 99,713 Salaries and benefits 1,861,051 1,685,071 Staff education 12,498 6,984 Telephone 28,991 24,993 Tenant, food and household supplies 31,253 - The Silver Brush 172,667 23,816 Travel 23,457 19,350 Utilities 55,583 47,255 Volunteer support 12,979 7,490 Depreciation 197, ,846 2,879,532 2,370,962 EXCESS OF EXPENSES OVER REVENUE (114,254) (152,478) FUND BALANCE AT BEGINNING OF THE YEAR 2,889,022 3,041,500 FUND BALANCE AT END OF THE YEAR 2,774,768 2,889,022 The accompanying notes are an integral part of these financial statements.

7 STATEMENT OF OPERATIONS AND FUND BALANCE Page 5 CAPITAL FUND - ORIGINAL 1499 QUEEN STREET WEST Year Ended March $ $ Depreciation (92,947) (97,633) FUND BALANCE AT BEGINNING OF THE YEAR 2,245,691 2,343,324 FUND BALANCE AT END OF THE YEAR 2,152,744 2,245,691 CAPITAL FUND - GENERAL ASSETS Transfer from capital reserve - 110,944 Depreciation of deferred grants and donations 5,309 2,408 Depreciation (28,240) (27,213) FUND BALANCE AT BEGINNING OF THE YEAR 340, ,583 FUND BALANCE AT END OF THE YEAR 317, ,722 CAPITAL RESERVE FUND Transfer from building operating fund 46,501 35,407 Repairs to building (2,006) (63,505) Transfer to general capital asset fund for basement renovations - (110,944) Interest income FUND BALANCE AT BEGINNING OF THE YEAR 97, ,939 FUND BALANCE AT END OF THE YEAR 142,735 97,602 The accompanying notes are an integral part of these financial statements.

8 PRIMARY PROGRAM OPERATING FUND STATEMENT OF OPERATIONS AND FUND BALANCE Page 6 REVENUE Year Ended March $ $ Ministry of Health (LHIN/MOHLTC) grant 1,533,557 1,438,866 Federal, provincial and other grants 104,042 43,871 Other income 73,066 61,029 Foundation grants 25,000 - City of Toronto grants 18,002 32,054 EXPENSES 1,753,667 1,575,820 Insurance 6,986 6,484 Leases and service contracts 2,899 2,068 Maintenance supplies and equipment repair 11,392 13,433 Minor improvements and equipment 29,437 10,845 Occupancy 40,005 40,005 Office and computer 63,965 29,429 Fees for service 70,382 28,348 Program 91, ,838 Salaries and benefits 1,378,613 1,306,549 Staff education 4,690 6,193 Telephone 27,159 23,779 Travel 22,689 18,798 Volunteer support 11,180 6,501 1,761,189 1,608,270 EXCESS OF EXPENSES OVER REVENUE (7,522) (32,450) FUND BALANCE AT BEGINNING OF THE YEAR - - TRANSFERRED FROM RESOURCE DEVELOPMENT AND FUNDRAISING FUND 7,522 32,450 FUNDS BALANCE AT END OF THE YEAR - - The accompanying notes are an integral part of these financial statements.

9 BUILDING OPERATING FUND QUEEN STREET WEST STATEMENT OF OPERATIONS AND FUND BALANCE Page 7 REVENUE Year Ended March $ $ Commercial rents 98,185 80,243 Residential rents 59,544 59,324 Recovery from programs 40,005 40,005 Other income 5,143 14,593 EXPENSES 202, ,165 Elevator 7,950 6,789 Fire prevention 3,472 3,939 Insurance 18,378 17,222 Minor improvements and equipment - 21,539 Office and computer 4,500 1,026 Pest control 5,824 5,754 Professional fees 1,000 4,357 Realty taxes 14,329 14,967 Repairs and maintenance 17,490 22,775 Salaries and benefits 36,469 16,617 Telephone 764 1,214 Utilities 45,543 47, , ,454 EXCESS OF REVENUE OVER EXPENSES BEFORE TRANSFERS 47,158 30,711 TRANSFER TO CAPITAL RESERVE FUND 46,501 35,407 EXCESS (DEFICIENCY) OF REVENUE OVER EXPENSES 657 (4,696) FUND BALANCE AT BEGINNING OF THE YEAR 25,959 30,655 FUND BALANCE AT END OF THE YEAR 26,616 25,959 The accompanying notes are an integral part of these financial statements.

10 EDMOND PLACE OPERATING FUND STATEMENT OF OPERATIONS AND FUND BALANCE Page 8 REVENUE Year Ended March $ $ Habitat start up funding 126,231 - Habitat subsidy 53,578 - Residential rents 32,887 - Depreciation of deferred grants and donations 27,250 - EXPENSES 239,946 - Elevator Fees for service 42,107 - Fire prevention Insurance 1,646 - Loan interest 15,424 - Office and computer 3,468 - Pest control Program 1,129 - Repairs and maintenance 3,397 - Salaries and benefits 97,058 - Staff education 6,300 - Telephone Tenant, food and household supplies 31,253 - Travel Utilities 8,650 - Volunteer support Depreciation 76, ,850 - EXCESS OF EXPENSES OVER REVENUES BEFORE TRANSFERS (49,904) - TRANSFER FROM RESOURCE DEVELOPMENT AND FUNDRAISING FUND 35,797 - EXCESS OF EXPENSES OVER REVENUE (14,107) - FUND BALANCE AT BEGINNING OF THE YEAR - - FUND BALANCE AT END OF THE YEAR (14,107) - The accompanying notes are an integral part of these financial statements.

11 ADDITIONAL PROGRAMS FUND STATEMENT OF OPERATIONS AND FUND BALANCE Page 9 REVENUE Year Ended March $ $ Ministry of Health (LHIN/MOHLTC) grant 150, ,564 City of Toronto grants 120, ,093 The Silver Brush - Trillium Foundation, Toronto Enterprise Fund and other 172,667 23,816 United Way grant 11,200 11,100 Trillium Foundation grants - 2,593 EXPENSES (Note 8) 454, ,166 Ontario Council of Alternative Businesses Partnership 150, ,564 City of Toronto programs Extension of Drop-In Hours 80,959 84,631 Voluntary Trusteeship 28,724 31,822 Hunger Initiatives 10,852 10,640 Winter Relief and other United Way fund 11,200 11,100 Trillium grants - 2,593 The Silver Brush 172,667 23, , ,166 EXCESS OF REVENUE OVER EXPENSES - - FUND BALANCE AT BEGINNING OF THE YEAR - - FUND BALANCE AT END OF THE YEAR - - The accompanying notes are an integral part of these financial statements.

12 RESOURCE DEVELOPMENT AND FUNDRAISING FUND STATEMENT OF OPERATIONS AND FUND BALANCE Page 10 REVENUE Year Ended March $ $ Donations 75, ,646 Catherine Donnelly and Metcalf grants 36,973 31,478 Fundraising 35,462 24,623 Other income 42 4,478 EXPENSES 147, ,225 Fundraising 30,050 30,265 Office and computer 4,231 1,707 Professional fees 1,854 2,446 Program 7,347 7,014 Salaries and benefits 90,135 93,779 Staff education 143 1,799 Travel Volunteer support 815 1, , ,727 EXCESS OF REVENUE OVER EXPENSES BEFORE TRANSFERS 13,260 34,498 TRANSFER TO EDMOND PLACE OPERATING FUND (5,738) - TRANSFER TO PRIMARY PROGRAM OPERATING FUND (7,522) (32,450) EXCESS (DEFICIENCY) OF REVENUE OVER EXPENSES - 2,048 TRANSFER TO EDMOND PLACE OPERATING FUND (30,059) - FUND BALANCE AT BEGINNING OF THE YEAR 179, ,000 FUND BALANCE AT END OF THE YEAR 148, ,048 The accompanying notes are an integral part of these financial statements.

13 STATEMENT OF CASH FLOWS Page 11 CASH FLOW FROM OPERATING ACTIVITIES Year Ended March $ $ Excess of expenses over revenue Consolidated operating funds (114,254) (152,478) Depreciation of capital assets 197, ,846 Depreciation of deferred revenue (32,559) (2,408) Changes in current assets (263,706) (93,232) Changes in current liabilities (174,651) 435,542 Cash Flow (Used In) From Operating Activities (387,308) 312,270 CASH FLOW FROM FINANCING ACTIVITIES Mortgage proceeds 3,556,177 - Funding received for kitchen renovations and accessibility 145,043 - Funding received for Edmond Place 227,157 2,006,050 Cash Flow From Financing Activities 3,928,377 2,006,050 CASH FLOW FROM INVESTING ACTIVITIES Purchase of capital assets (4,283,993) (110,944) Development costs Edmond Place - (1,845,636) Cash Flow Used in Investing Activities (4,283,993) (1,956,580) (DECREASE) INCREASE IN CASH FOR THE YEAR (742,924) 361,740 CASH AT BEGINNING OF THE YEAR 828, ,571 CASH AT END OF THE YEAR 85, ,311 CASH IS COMPRISED OF: Cash 85, ,311 Short term investments - 210,000 85, ,311 The accompanying notes are an integral part of these financial statements.

14 NOTES TO THE FINANCIAL STATEMENTS MARCH 31, 2011 Page 12 Note 1: Nature And Status Of Organization The Parkdale Activity - Recreation Centre (Toronto) or "PARC" is a not-for-profit corporation originally established in 1977 to provide drop-in supports and services to individuals who are, or have been, involved with the mental health system or are socially isolated. PARC now offers a wide variety of programs, supportive housing, case management and employment opportunities. PARC's mission is to be a "community where people rebuild their lives." PARC is incorporated under the Ontario Corporations Act and, as a registered charity, is exempt from income tax under section 149 (1) of the Income Tax Act. Note 2: Significant Accounting Policies (a) PARC uses fund accounting by which resources are classified for accounting and reporting purposes into various funds related to specific activities. The funds are: i) The Primary Program Operating Fund shows the funding and expenses related to program operations which are primarily funded by the Ministry of Health and Long- Term Care (MOHLTC) through the Toronto Central Local Health Integration Network (LHIN). ii) iii) iv) The Building Operating Fund Queen Street West shows the revenues and expenses related to the operations of the building which houses PARC, its 10 unit housing program, and commercial rental units targeted to charitable and not for profit programs. Edmond Place Operating Fund shows the revenues and expenses related to the operations of the Edmond Place development at 194 Dowling Avenue. Additional Programs Fund includes programs funded by the Ministry of Health, City of Toronto, Trillium Foundation and other funders. v) The Resource Development and Fundraising Fund currently shows the accumulation of donations and funds raised for PARC programming.

15 NOTES TO THE FINANCIAL STATEMENTS MARCH 31, 2011 Page 13 Note 2: Significant Accounting Policies - Con't vi) The Capital Reserve Fund is used to accumulate funds for the replacement or repairs to PARC's capital assets. vii) The Capital fund - original 1499 Queen Street West, and Capital fund - general assets are used to accumulate and depreciate funds received as contributions towards the related capital assets. (b) Revenue Recognition Restricted contributions are funding and donations that have been received for a specific purpose. These are deferred and recognized as revenue in the year in which the related expenses are incurred. Funds used for capital asset acquisitions are depreciated at the same rate as the related capital assets. Unrestricted contributions are recognized as revenue when received. (c) Capital assets are depreciated at the following rates on a straight line basis: Building, renovations and development costs 25 and 30 years Furniture and equipment 5 years Computer equipment and software 3 years (d) Financial Instruments The organization's financial instruments are cash, short term investments, funding receivable, miscellaneous receivables, accounts payable and accrued liabilities and mortgage payable. PARC is not exposed to any significant interest, currency, or credit risk arising from these financial instruments, and the carrying amounts approximate fair values. (e) Contributed Services PARC benefits from voluntary services by many individuals. Because of the difficulty of objectively determining the fair value, these services are not reflected in the financial statements.

16 NOTES TO THE FINANCIAL STATEMENTS MARCH 31, 2011 Page 14 Note 2: Significant Accounting Policies - Con't (f) Use of Estimates The preparation of 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 assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Note 3: Commitments Edmond Place With funding from the City of Toronto, the Province of Ontario and the federal government through the Affordable Housing Program, Parkdale Activity-Recreation Centre has completed the development of the building at 194 Dowling Avenue into 29 affordable housing units and is managing the property. The first occupancies occurred in January Operating Land Lease Agreement The Corporation entered into a Lease Agreement with the City of Toronto that leased the land at 194 Dowling Avenue to the Corporation for a term 50 years commencing on October 1, 2009 and ending on September 30, The buildings, fixtures, permanent installations or other improvements constructed or installed on the land will become the property of the City of Toronto upon expiration of the lease. Under the terms of the lease agreement the following rentals will be paid: i) Basic monthly rent equal to $42,000 per annum; ii) So long as the Corporation has not received a notice of default, the City of Toronto will waive its right to receive payment of basic rent. Default is defined as a breach of the terms in the Land Lease Agreement, the Contribution Agreement and the Leasehold Mortgage;

17 NOTES TO THE FINANCIAL STATEMENTS MARCH 31, 2011 Page 15 Note 3: Commitments - Con't iii) A continuing rental from the commencement date of October 1, 2009, equal to the sum of: A) the cost of building the project and any subsequent capital improvements; and B) all taxes, utilities and any other costs incurred in or about the operations and management of the project. As of March 31, 2011 the Corporation had not received a notice of default. City of Toronto Grant and Contribution Agreement The Corporation received conditional grants from the City of Toronto and the federal/provincial Affordable Housing Program in the amount of $2,436,400 to assist with the development of the project. The grant is secured by way of a Contribution Agreement registered on title. In the event of default the full amount of the grant plus interest commencing on the date of default are payable to the City of Toronto. Default would occur under the agreement in the event of the following: i) Funds not used towards the development of the building at 194 Dowling Avenue for the purposes of affordable housing; ii) The property at 194 Dowling Avenue is not used for its intended purpose or does not operate as an affordable housing project for a period of 50 years. At year end the Corporation had received $2,436,400 from the grant which has been recorded in these financial statements. Provincial Contribution The Corporation has a signed conditional agreement with the Province of Ontario in the amount of $1,258,600 for the province to assist in the repayment of the monthly principal and interest owing on the approved mortgage at 194 Dowling Avenue starting at the Interest Adjustment Date. At year end, none of the Provincial Contribution had been advanced to the Corporation.

18 NOTES TO THE FINANCIAL STATEMENTS MARCH 31, 2011 Page 16 Note 3: Commitments - Con't First Mortgage Financing Ontario Infrastructure Projects Corporation agreed to provide CMHC insured first mortgage financing for the project. The terms of the mortgage are as follows: i) Principal amount $3,692,307 (includes provincial contribution of $1,258,600) ii) Amortization Period years iii) Term 10 years iv) Construction Financing Rate floating (currently 1.95%) v) Permanent Mortgage Rate 5.4% vi) Interest Adjustment Date November 1, 2011 At year end, $3,573,912 had been advanced to the corporation under the insured first mortgage. Principal repayments over the next five years will be as follows: 2012 $ 17, , , , ,690 Thereafter 3,316,868 $ 3,573,912 Note 4: Credit Facility PARC has a $500,000 revolving demand facility which is secured by a general security agreement constituting a first ranking security interest in all property of the corporation except for 194 Dowling Avenue, in which the lender will have a second ranking security interest. The interest rate is prime rate plus 1.6% per annum. As at March 31, 2011 the outstanding balance amounted to $NIL. Note 5: Economic Dependence PARC received close to 61% of its operating revenue from the Ministry of Health and Long- Term Care (MOHLTC) through the Toronto Central Local Health Integration Network (LHIN). During the year, PARC entered into a boarding home contract with Mental Health Program Services of Metropolitan Toronto ("Habitat") to provide accommodation and related services to the tenants of Edmond Place. The contract is in force until March 31, 2012.

19 NOTES TO THE FINANCIAL STATEMENTS MARCH 31, 2011 Page 17 Note 6: Capital Assets Accumulated Net Book Net Book Cost Amortization Value 2011 Value 2010 $ $ $ $ a. Building Capital Assets Queen St. Building 1,384, , , ,607 Building renovations 2,554,254 1,029,212 1,525,042 1,588,585 Furniture and equipment 186, ,792 15,599 19,499 4,125,480 1,972,736 2,152,744 2,245,691 b. Building Capital Assets - Edmond Place Building 6,424,573 64,246 6,360,327 - Furniture and equipment 248,581 12, ,152-6,673,154 76,675 6,596,479 - c. General Capital Assets Furniture and equipment 342, ,080 33,142 39,355 Computers and software 103,543 95,002 8,541 12,202 Building renovations 527,404 65, , , , , , ,701 Consolidated totals 11,771,803 2,518,799 9,253,004 2,704,392 Note 7: Deferred Revenue $ $ a. Edmond Place City of Toronto and Federal/Provincial Affordable Housing Program 2,638,557 2,411,400 Donations, Fundraising and Metcalf Foundation 86,439 86,439 Depreciation of deferred revenue (27,250) - 2,697,746 2,497,839 b. Contributions towards PARC renovations City of Toronto and Federal grants 236,116 98,073 Daily Bread Food Bank 29,314 22,314 Depreciation of deferred revenue (7,717) (2,408) 257, ,979 c. Operating Funds for following year City of Toronto and other 138, ,668 Donations 73,906 30, , ,668

20 NOTES TO THE FINANCIAL STATEMENTS MARCH 31, 2011 Page 18 Note 8: Additional Programs Expense Details Salaries and 2011 Benefits Program Travel Other Total $ $ $ $ $ Ontario Council of Alternative Businesses Partnership 144, , ,515 (MOHLTC) City of Toronto programs Voluntary Trusteeship 28, ,724 Hunger Initiatives - 10, ,852 Extension of Drop-In Hours 75,761 3,183-2,015 80,959 Winter Relief 9,600 1, ,200 Trillium Grant The Silver Brush 148, , , ,810 16,097 1,183 30, ,917 Salaries and 2010 Benefits Program Travel Other Total $ $ $ $ $ Ontario Council of Alternative Businesses Partnership 141, , ,564 (MOHLTC) City of Toronto programs Voluntary Trusteeship 31, ,822 Hunger Initiatives - 10, ,640 Extension of Drop-In Hours 82,257 1, ,631 Winter Relief 9,600 1, ,100 Trillium Grant 2, ,593 The Silver Brush 12, ,493 23, ,291 14, , ,166 Note 9: Comparative Figures Certain of the 2010 comparative figures have been restated to conform with the financial statement presentation adopted for 2011.