BARBADOS CFA INC ANNUAL REPORT

Transcription

1 BARBADOS CFA INC ANNUAL REPORT 1

2 TABLE OF CONTENTS The Treasurer s Discussions and Analysis Page 3 The 2016 Financial Statements Page 5 2

3 The Treasurer s Discussions and Analysis Financial Analysis The 2016 financial year was a better year with Net Income rising by $40,608 to $42,697. The revenue increased by $90,494, the Forecast Dinner experienced an increase in revenue of 39%, CFAI subvention rose by 52%, while the Financial Modelling courses grossed $58,250. There was also an amount of $13,558 received from CFAI for a branding campaign. No expenditure was undertaken during the financial year as part of this exercise. The expenses were $49,886 higher than the previous year. The increase was represented by the cost of the Financial Modelling courses of $49,760, netting a profit of $8,490. The Forecast Dinner expenses of $35,292 resulted in a profit of $93. There was no sponsorship of the BIBA International Week no Strategic Planning meeting this year. These costs totaled $5,514 in The Board this year undertook an initiative to further enhance the Public Awareness of the CFA program and our activities, with certain press releases and a quarterly Newsletter. The cost of this activity was $6,100 ($3,055 in 2015) during the financial year. At year end we continue to be very liquid with cash balances standing at $107,166. This cash balance would more than cover our fiscal 2016 expenses. The four fixed deposits totaled $80,431 at June 30, The reinvestment rate fell from 1.75% to 1.00%. Five Year Results Below is a summary of the results for the last five financial years. In 2012 there was no event held and this is reflected in the reduction in income (and expenses). In 2013 event revenue was an impressive $74,580 and was the best of the last five 3

4 years. The current year, from a revenue viewpoint ranks first. The cash and deposits has increased by 2.97 times over the past five years Income Expenses Cash & Deposits I conclude, by thanking you, the membership, for your continued support of the Barbados CFA Inc. and I hope that the new Board can drive our progress to new heights. T.A. Bonnett Treasurer 4

5 BARBADOS CFA INC FINANCIAL STATEMENTS 5

6 Balance Sheet As at June 30, 2016 Assets Note Cash at bank $ 107,166 $ 59,039 Time deposits 3 80,431 79,218 Accounts receivable 1,173 2,087 Banner ,241 $ 189,240 $ 141,585 Liabilities Accrued liabilities $ 4,162 - Prepaid membership fees 798-4,959 - Accumulated surplus $ 184,281 $ 141,585 $ 189,240 $ 141,585 The accompanying notes numbered 1 to 5 form an integral part of these financial statements Approved by the Board of Directors on August 11th, 2016 and signed on its behalf by: Jillian Nunes - Director and President Terry Bonnett - Director and Treasurer 6

7 Statement of Income and Accumulated Surplus For the year ended June 30, Income Event revenue $ 35,385 $ 25,445 CFAI subventions 34,013 22,380 Membership fees 2,891 4,682 Candidate education revenue Branding campaign 13,558 - Financial modelling 58,250 Interest 1,159 2, ,766 55,272 Expenses Program events 35,292 24,862 Member's functions & benefits 1,918 6,361 Candidate support 4,025 6,072 Travel costs to CFAI conferences 2,410 4,178 BIBA International Week - 3,500 Public Relations 6,100 3,055 Strategic Planning Meeting - 2,014 Candidate study materials and mock exam 1,664 1,507 Depreciation Annual General Meeting Withholding tax Bank charges and differences on exchange Financial modelling 49, ,069 53,183 Net income for the year 42,697 2,089 Accumulated surplus brought forward 141, ,496 Accumulated surplus carried forward $ 184,281 $ 141,585 The accompanying notes numbered 1 to 5 form an integral part of these financial statements 7

8 Statement of Cash Flows For the year ended June 30, Cash flows from operating activities Net income for the year $ 42,697 $ 2,089 Add: Depreciation Net cash from operating income before working capital changes 43,468 2,860 Accounts receivable ,207 Accrued liabilities 4,162 - Prepaid membership fees Net cash from operating activities 49,340 25,067 Cash flows from investing activities Purchase of banners - (940) Purchase of time deposits (1,213) (1,515) Cash used in investing activities (1,213) (2,455) Net increase (decrease) in cash 48,127 (22,612) Cash, at beginning of year 59,039 36,427 Cash, at end of year $ 107,166 $ 59,039 The accompanying notes numbered 1 to 5 form an integral part of these financial statements 8

9 Notes to the Financial Statements For the year ended June 30, Incorporation, principal activities and registered office. The company was incorporated in Barbados as non-profit member company number on August 28th, 2002 and is an affiliate Society of the CFA Institute located in Charlottesville, Virginia, USA. The CFA Institute's mission is to lead the investment profession globally by setting the highest standards of ethics, education and professional excellence. The objects of the company are, inter alia, to promote, foster, develop and encourage the practice and teaching of investment analysis and management in Barbados. The registered office of the company is at 17, Wanstead Gardens, St. Michael, Barbados. 2 Principal accounting policies Basis of accounting These financial statements have been prepared in accordance with International Financial Reporting Standards and are expressed in Barbados dollars. Use of estimates The preparation of financial statements in conformity with International Financial Reporting Standards requires that management make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Revenue recognition Annual subscriptions are recorded when due. Depreciation Depreciation of the company's banner is being calculated and recorded on a straight line basis over a 48 month period. 9

10 Notes to the Financial Statements For the year ended June 30, Term Deposits Term Deposits comprise: 365 day term deposit, interest rate 1.00% p.a., maturity 1st February, $ 16,902 $ 16, day term deposit, interest rate 1.00% p.a., maturity 2nd February, ,268 11, day term deposit, interest rate 1.75% p.a., maturity 2nd August, ,269 20, day term deposit, interest rate 1.00% p.a., maturity 29th October, ,992 30,525 $ 80,431 $ 79,218 4 Banner Cost - June 30, 2015 $ 3,844 Additions - Disposals - Cost - June 30, 2016 $ 3,084 Accumulated depreciation - June 30, 2015 $ 1,843 Depreciation 771 Disposals - Accumulated depreciation - June 30, 2016 $ 2,614 Net book value - June 30, 2016 $ 470 Net book value - June 30, 2015 $ 1,241 10

11 Notes to the Financial Statements For the year ended June 30, Financial instruments Fair value Due to their short-term nature the fair values of cash, accounts receivable and accrued liabilities and subscriptions received in advance are assumed to be not materially different from their carrying values on the balance sheet. The term deposits earn a market rate of interest, are placed for a year only and accordingly their carrying value is assumed to be equal to the fair value. Credit risk Cash and term deposits are placed with reputable banks and financial institutions. The company provides services and sells products to its members and other customers primarily in Barbados. The Society performs ongoing credit reviews of its members and other customers and generally does not require collateral. A provision for uncollectible amounts is recorded if deemed necessary. Interest rate risk The company is not significantly exposed to interest rate risk. 11