National Indian Brotherhood

Transcription

1 Consolidated Financial Statements For the year ended March 31, 2001

2 Summary of Significant Accounting Policies March 31, 2001 Purpose of the Corporation The National Indian Brotherhood was incorporated under Part II of the Canada Corporations Act on September 29, 1970 with the following objectives: - to assist and to work towards solutions for problems facing the Indian people; - to operate as a national body to both represent the Indian people and to disseminate information to them; - to study, in conjunction with Indian representatives across Canada, the problems confronting Indians and to make representations to the government and other organizations on their behalf; - to assist in retaining the Indian culture and values; and - to act as the national spokesperson for Indians throughout Canada. The Corporation acts as the secretariat to The Assembly of First Nations. Basis of Consolidation The financial statements include the accounts of the Corporation and those of the National Indian Brotherhood Trust Fund, The First Nations Messenger Foundation and the Indigenous Hockey Programme, entities which are controlled by the Corporation. All significant inter-organization transaction have been eliminated on consolidation. The Corporation accounts for the AFN Insurance Brokers on the equity basis, since the Corporation exercises significant influence. Financial Instruments Capital Assets It is management's opinion that the Corporation is not exposed to unusual interest rate or credit risks arising from its financial instruments. Amortization is provided on the straight-line basis over the estimated useful lives of the assets as follows: Computer equipment - 3 years Other - 3 years Excess Contributions The excess of revenue over expenses of some programs may require repayment. When no repayment has been requested by the funder the excess is recorded as revenue in a subsequent period. 6

3 Summary of Significant Accounting Policies March 31, 2001 Revenue Recognition The Corporation follows the deferral method of accounting for revenue and expenses. Grants or contributions received prior to the date on which they are expended are reported as deferred revenue. The Corporation is funded primarily through funding agreements with various departments of the federal government of Canada. Each agreement provides funds to be expended during the Corporation's fiscal year. The funds are contributed under certain conditions including the requirement that they be spent for the purposes set out in the related funding agreement. Certain agreements require that funds which have not been expended in the year to which the agreement relates must be returned to the government department. Income Tax Status The Corporation is a non-profit organization and, as such, is not subject to income taxes. 7

4 Notes to Consolidated Financial Statements March 31, Grants/Contributions Receivable Grants/contributions receivable are as follows: Indian Affairs and Northern Development $ 2,788,419 $ 699,420 Health Canada 1,255,984 1,764,248 Fisheries and Oceans 30,898 16,500 Human Resources Development Canada 125, ,546 Environment Canada 40,000 46,000 Department of Foreign Affairs 270, ,093 Heritage 225, ,000 Other 584, ,903 $ 5,320,411 $ 3,929, Capital Assets Accumulated Accumulated Cost Amortization Cost Amortization Computer equipment $ 883,085 $ 490,606 $ 547,987 $ 318,689 Other 259, , , ,640 $ 1,142,820 $ 665,957 $ 748,130 $ 423,329 Net book value $ 476,863 $ 324, Bank Operating Overdraft Bank operating overdraft consists of: Bank operating overdraft $ (1,887,530) $ (1,291,962) Cash 203, ,145 $ (1,683,726) $ (1,171,817) The Corporation has a banking agreement which establishes a demand credit facility for general business purposes up to a maximum of $1,000,000, bearing interest at prime plus 1% up to the credit limit and 12% thereafter. The loan is secured by a general security agreement representing a first charge over all of the Corporation's assets. The bank overdraft balance contains $1,392,150 of outstanding cheques at year end. 8

5 Notes to Consolidated Financial Statements March 31, Investments (a) The Corporation controls the National Indian Brotherhood Trust Fund. The Trust Fund was established as a registered charity under paragraph 149 (i) (f) of the Income Tax Act and is comprised of the Language and Literacy Fund, the Youth Healing Fund, the Research Sponsor Fund and the Heroes Award Fund. Restricted funds are comprised of the following and are to be used for the purposes described: The Language and Literacy Fund was established to promote education of First Nation's citizens by way of scholarship awards and promotion research, seminars, conferences of an academic nature on First Nations rights, histories and cultures among First Nations' peoples as well as the Canadian public. The Youth Healing Fund was established to support efforts to improve the self-esteem and profile of First Nations' Youth in Canada by organizing events which may bring together First Nations' Youth with political leaders and elders for spiritual and leadership training and support in the Youth's representation of the Nations at conferences and gatherings in Canada and internationally. The Research Sponsor Fund was established in 2001 with the purpose to participate in research into the economic, social and scientific problems of Indian communities with a view to proposing solutions to problems. The Heroes Award Fund was established in 2001 with the purpose of giving recognition to those First Nations citizens who demonstrate a proven record of intellectual and academic ability, integrity of character, interest and respect for fellow human beings, ability to lead, and the initiative to use their talents to the fullest. The Organization appoints the Executive Council of the Trust Fund and ensures that the Trust Fund operates in compliance with the Organizations Charter. (b) The First Nations Messenger Foundation is a non-profit organization incorporated without share capital under Part II of the Canada Corporations Act on July 15, 1999, to establish and operate an educational newspaper that addresses First Nation issues and to maintain and operate educational programs to increase knowledge respecting First Nation issues. The National Indian Brotherhood obtains funding on behalf of the Foundation, directs the operations of the Foundation to ensure that the Foundations objectives are met and is responsible for any operating deficiency. (c) The Indigenous Hockey Programme is a non-profit organization incorporated without share capital under Part II of the Canada Corporations Act on March 30, 2000 with the objectives of encouraging the education and development of indigenous youth by training them in hockey and related life skills and thereby developing confidence and self esteem among indigenous people and to sponsor competitive hockey teams for indigenous youths to participate in league and tournament play locally, nationally and internationally. The National Indian Brotherhood obtains funding on behalf of the organization, directs the operations of the Organization to ensure that the organization's objectives are met and is responsible for any operating deficiency. 9

6 Notes to Consolidated Financial Statements March 31, 2001 (d) The organization has a 49% beneficial interest in AFN Insurance Brokers, through the Economic Development Commission. The Economic Development Commission is a program within the Organization. AFN Insurance Brokers was established to provide insurance for First Nations members. The beneficial interest has been accounted for using the equity method in these consolidated financial statements. Under this method the share of earnings or losses are recorded from the date of the commencement of the beneficial ownership. A financial summary of the AFN Insurance Brokers is as follows: Financial Position Total assets $ 689,324 $ 344,369 Total liabilities $ 690,561 $ 395,973 Total net assets (1,237) (51,604) $ 689,324 $ 344,369 Results of Operations Total revenues $ 452,502 $ 69,714 Total expenses 402, ,418 Excess (deficiency) of revenue over expenses $ 50,367 $ (51,704) Cash Flows Cash from (used in) operations $ (69,011) $ 9,827 Cash from financing and investing activities 32, ,451 Increase (decrease) in cash $ (36,012) $ 114, Deferred Revenue Deferred revenue are as follows: Indian Affairs and Northern Development $ 48,150 $ 22,459 Health Canada Department of Foreign Affairs 44,894 56,507 Other 25,000 - $ 118,717 $ 78,966 10

7 Notes to Consolidated Financial Statements March 31, Excess Contributions Excess contributions are as follows: Indian Affairs and Northern Development $ 75,470 $ - Health Canada 120, ,979 Fisheries and Oceans 469 2,071 Human Resources Development Canada 5,410 65,763 Department of Foreign Affairs - 44,174 Heritage 14,786 - Other 13,432 24,729 $ 230,039 $ 292,716 During the year the Corporation transferred $271,299 ( $56,768) of excess contributions recorded in 2000 to revenue. 7. Contingency The Corporation receives funding from various government agencies based on specific program needs and budgets and allocates certain expenses to the various programs. In many cases the funding agent has the right to review the accounting records to ensure compliance with the terms and conditions of their programs. At this time no estimate of the requirements, if any, to reimburse the agencies can be made. The management of the Corporation feels that their allocations of expenses are fair and accurate in the circumstances. 8. Commitments The Corporation is committed to future minimum lease payments under operating leases for office space and equipment for each of the next five years as follows: 2002 $ 719, , , , , Executive Salaries By virtue of an Annual General Assembly Resolution (62/98), the National Chief of the Assembly of First Nations (AFN) receives a salary which is adjusted annually in connection with the Consumer Price Index. Similarly, by virtue of a Confederacy of Nations resolution and an Executive Committee resolution, each Vice-Chief is allocated a Director's Fee. Management and unelected officials are compensated within average industry remuneration levels for their positions. 11

8 Consolidated Core Operations - Revenue and Expenses Schedule 1 For the year ended March Revenue Indian Affairs and Northern Development - Core $ 2,070,000 $ 2,070,000 - Capacity 3,061,268 4,198,033 Books and miscellaneous 213,364 92,241 Share of gain(loss) in AFN Insurance (Note 4(d)) 24,680 (25,335) NIB Trust Fund (Note 4(a)) 72,642 87,231 First Nations Messenger Foundation (Note 4(b)) 293, ,452 Indigenous Hockey Programme (Note 4(c)) 144,520-5,879,743 6,712,622 Expenses (Schedule 2) Council of Elders 85, ,028 Media 205, ,370 National Chief's Office 2,484,329 1,999,542 Finance 510, ,412 Support services 962, ,341 Vice-Chiefs 1,689,580 1,891,432 NIB Trust Fund (Note 4(a)) 35,547 63,745 First Nations Messenger Foundation (Note 4(b)) 391, ,041 Indigenous Hockey Programme (Note 4(c)) 261,178-6,625,655 5,992,911 Excess (deficiency) of revenue over expenses $ (745,912) $ 719,711 12

9 Consolidated Core Operating Expenses Schedule 2 For the year ended March Council of Elders Salaries and benefits $ - $ 24,674 Professional fees 1, Travel and meetings 82, ,511 Office and administration 1,448 2,205 $ 85,669 $ 212,028 Media Salaries and benefits $ 119,190 $ 134,763 Travel 20,193 6,390 Rent 9,627 1,905 Telecommunications 9,610 7,328 Office and other supplies 36,809 13,531 Printing and photocopying 3,515 9,385 Publications and subscriptions 6,365 4,068 $ 205,309 $ 177,370 National Chief's Office Salaries and benefits $ 838,173 $ 1,040,071 Professional services 356, ,865 Meeting expenses 262,352 54,333 Travel 638, ,071 Automobile 8,277 9,244 Rent 52,381 63,000 Telecommunications 52,640 46,741 Office supplies 9,073 7,115 Delivery and postage 4,157 6,963 Office furniture and equipment 29,895 30,094 Photocopying and printing 5,787 11,292 Other administration 74,407 27,091 Promotion 5,785 80,507 Payment to organizations 91,618 - Audit and legal fees 23, ,155 Insurance 3,682 - Amortization 27,375 - $ 2,484,329 $ 1,999,542 13

10 Consolidated Core Operating Expenses Schedule 2 For the year ended March Finance Salaries and benefits $ 301,105 $ 266,648 Professional services 57,780 28,685 Training 2, Travel 32,919 16,181 Rent 36,420 32,372 Telecommunications 13,025 5,125 Office supplies 5,902 5,822 Delivery and postage 2,642 1,216 Office furniture and equipment 6,733 6,062 Photocopying and printing 2,196 2,349 Repairs and maintenance 2,286 1,073 Audit and legal fees 35,817 60,981 Miscellaneous 10,308 1,035 $ 510,025 $ 428,412 Support Services Salaries and benefits $ 507,402 $ 469,483 Professional services 80,921 35,617 Training 24,090 21,833 Meeting 29,079 24,404 Travel 39,264 72,091 Rent 79,626 74,867 Telecommunications 12,487 24,075 Office supplies 55,078 60,760 Delivery and postage 29,688 45,148 Insurance 2,391 9,183 Office furniture and equipment 20, Photocopying and printing 23,935 19,553 Repairs and maintenance 6,414 3,595 Publications and subscriptions 3, Promotion 20, Interest and bank charges 33,185 26,952 Miscellaneous 73, Amortization 42, ,636 Translation Storage 448 1,384 Donations 100 (5,000) 1,084,697 1,122,331 Less: Services charged to programs Photocopying 61, ,849 Other 59,908 75, , ,990 $ 962,815 $ 926,341 14

11 Consolidated Core Operating Expenses Schedule 2 For the year ended March Vice-Chiefs Professional services $ 566,483 $ 838,644 Vice-Chiefs assistants 711, ,767 Meeting expenses 7,254 22,971 Travel 370, ,842 Telecommunications 13,395 11,981 Delivery and postage 2,195 4,081 Office furniture and equipment 943 9,998 Audit and legal - 24,176 Photocopying and printing 9,111 13,580 Insurance 5,609 4,200 Translation 2, $ 1,689,580 $ 1,891,432 NIB Trust Fund Bank and interest charges $ 49 $ 17 PGI Fundraiser 30,248 51,228 Professional services Research costs 4,750 - Scholarships - 12,000 $ 35,547 $ 63,745 First Nations Messenger Foundation Advertising and promotion $ - $ 1,968 Bank and interest charges Consulting 23,303 14,588 Office and general 13,648 9,051 Postage and courier 180, ,579 Printing and photocopying 95,730 91,825 Professional fees 2,585 4,887 Translation 29,347 18,265 Salaries and benefits 45,111 42,787 $ 391,203 $ 294,041 Indigenous Hockey Programme Consulting $ 137,500 $ - Hockey equipment 7,067 - Office and general Professional fees 2,217 - Tournament 35,167 - Training 7,419 - Travel 71,250 - $ 261,178 $ - 15

12 Consolidated Annual General Assembly - Revenue and Expenses Schedule 3 For the year ended March Revenue Indian Affairs and Northern Development $ 446,784 $ 128,092 Registration fees and trade show 117, ,486 Miscellaneous 31, , , ,546 Expenses Salaries and benefits 8,557 31,654 Professional services 278,961 83,681 Meeting 190, ,857 Printing and photocopying 7,587 32,413 Travel 34,433 23,262 Telephone and fax 4,402 6,334 Office supplies 52,086 15,744 Postage and courier 2,303 7,558 Translation and interpretation 6,962 59, , ,798 Excess (deficiency) of revenue over expenses $ 9,667 $ (252) 16

13 Consolidated Programs - Revenue and Expenses Schedule 4 Excess (deficiency) of Revenue For the year ended March 31, 2001 Revenue Expenses over Expenses Indian Affairs and Northern Development Policy Co-ordination $ 134,658 $ 68,409 $ 66,249 Policy Co-ordination- Management Reviews 297, , ,537 Aboriginal Languages 223, ,239 48,333 Confederacy of Nations 296, ,476 71,217 Communications 969, , ,225 Corbiere 433, ,008 - Education 1,107, , ,629 Higher Learning and Adult Education 27,998 27,998 - Special Education Joint Working Session 37,717 37,717 - Housing 544, ,664 79,208 Housing Conference - 17,868 (17,868) LTS Sector Plan 3,200,000 3,068, ,957 Land Rights 603, ,611 (32,983) Gender Equality 260, ,140 41,198 Income Security Reform 425, ,900 9,100 Economic Development 562, ,613 (63,585) International 250, ,750 18,722 Governance Transition Centre 135,986 74,656 61,330 Delgamuukw 1,044,358 1,043,135 1,223 Treaty Relations 550, ,692 (95,079) Fur Harvesters 71, ,439 (34,954) Fiscal Relations 2,154,400 1,670, ,974 National Policy Review 465, ,650 (60,650) Specific Claims 388, ,120 44,657 Veterans Program 395, ,917 (31,917) Contingencies 216, ,374 (219,918) Hemispheric Conference 130, ,635 (12,028) Environment Canada Species at Risk 50,000 53,962 (3,962) Health Canada Health Conference 207, ,349 - Advice on Policy 35,327 35,327 - AIDS/HIV 79,859 79,859 - Contaminants Program 174, ,114 - Health Services 796, ,762 - Home Care Program 298, ,967 - Prenatal Nutrition Program 661, ,922 - Non-Insured Health Benefits 900, ,460 (4,285) AHS National Training Workshop 133, ,021 - National Health Infrastructure 59,841 59,841 - Tobacco Strategy 148, ,038 - Diabetes 71,705 71,705 - National Mental Health 18,729 18,729 - Regional Health Survey/Capacity 1,299,269 1,299,269-17

14 Consolidated Programs - Revenue and Expenses Schedule 4 Excess (deficiency) of Revenue For the year ended March 31, 2001 Revenue Expenses over Expenses Fisheries and Oceans Fisheries 264, ,577 (58,522) Justice Canada Alternative Dispute Resolution 108,626 71,377 37,249 Correctional Worker 121, ,782 - Firearms 60,220 10,992 49,228 Industry Canada Canadian National Exhibition 10,000 10,000 - Hemispheric Conference 100, ,000 - AFN Industry Youth Project Human Resources Development Canada Childrens Survey Development 20,750-20,750 National Accord 305, ,849 (51,793) Youth Intervenor 94,798 94,798 - Hemispheric Conference 50,000 50,000 - National Children's Agenda 45, ,997 Department of Foreign Affairs International 56,507 56,507 - Hemispheric Conference 270, ,299 (10,299) Heritage Translation Services 30,239 30,239 - Aboriginal Initiatives 4,290,110 4,290,277 (167) Secondment 54,422 54,422 - Canadian National Exhibition 30,250 44,612 (14,362) Statistics Canada RHS-APS 72,600 63,969 8,631 Other Hemispheric Conference 61,000 61,000 - Economic Development Commission 49,385 49,385 - International Women 64,507 76,246 (11,739) Delgamuukw Implementation Strategic Committee - 238,039 (238,039) Consultation Meeting - 20,041 (20,041) $26,022,622 $25,101,399 Excess of revenue over expenses $ 921,223 18

15 National Indian Brotherhood Consolidated Financial Statements For the year ended March 31, 2001 Contents Auditors' Report 1 Consolidated Financial Statements Consolidated Statement of Financial Position 2 Consolidated Statement of Changes in Net Assets 3 Consolidated Statement of Revenue and Expenses 4 Consolidated Statement of Cash Flows 5 Summary of Significant Accounting Policies 6 Notes to Consolidated Financial Statements 8 Supplementary Financial Information Consolidated Core Operations - Revenue and Expenses - Schedule 1 12 Consolidated Core Operating Expenses - Schedule 2 13 Consolidated Annual General Assembly - Revenue and Expenses - Schedule 3 16 Consolidated Programs - Revenue and Expenses - Schedule 4 17

16 Auditors' Report To the Executive Council of National Indian Brotherhood We have audited the consolidated statement of financial position of National Indian Brotherhood as at March 31, 2001 and the consolidated statements of changes in net assets, revenue and expenses, and cash flows for the year then ended. These financial statements are the responsibility of the Corporation's management. 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 plan and perform an audit to obtain reasonable assurance whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. In our opinion, these consolidated financial statements present fairly, in all material respects, the financial position of the Corporation as at March 31, 2001 and the results of its operations and its cash flows for the year then ended in accordance with Canadian generally accepted accounting principles. As required by the Canada Corporations Act, we report that, in our opinion, these principles have been applied on a basis consistent with that of the preceding year. Chartered Accountants May 29, 2001

17 Consolidated Statement of Financial Position March Assets Current Contributions receivable (Note 1) $ 5,320,411 $ 3,929,710 Amounts receivable 240,825 38,528 GST receivable 299, ,112 Prepaid expenses 106, ,311 5,968,049 4,733,661 Capital assets (Note 2) 476, ,801 $ 6,444,912 $ 5,058,462 Liabilities Current Bank operating overdraft (Note 3) $ 1,683,726 $ 1,171,817 Deficiency in AFN insurance brokers (Note 4 (d)) ,335 Accounts payable and accrued liabilities 3,345,491 2,608,322 Deferred revenue (Note 5) 118,717 78,966 5,148,589 3,884,440 Excess contributions (Note 6) 230, ,716 Contingency (Note 7) Net Assets 5,378,628 4,177,156 General operations net assets 441, ,806 Restricted funds (Note 4 (a)) 147, ,699 Investment in capital assets 476, ,801 1,066, ,306 $ 6,444,912 $ 5,058,462 On behalf of the Executive Council: Matthew Coon Come, National Chief Bill Erasmus, Vice Chief, Chairman-Finance Committee The accompanying summary of significant accounting policies and notes are an integral part of these consolidated financial statements. 2

18 Consolidated Statement of Changes in Net Assets For the year ended March Restricted General Investment in Funds Operations Capital Assets Total Total Balance, beginning of year $ 110,699 $ 445,806 $ 324,801 $ 881,306 $ (916,524) Excess of revenue over expenses - 184, ,978 1,797,830 Capital assets acquired - (394,689) 394, Amortization - 242,627 (242,627) - - National Indian Brotherhood Trust Fund 36,995 (36,995) Balance, end of year $ 147,694 $ 441,727 $ 476,863 $ 1,066,284 $ 881,306 The accompanying summary of significant accounting policies and notes are an integral part of these consolidated financial statements. 3

19 For the year ended March 31, 2001 National Indian Brotherhood Consolidated Statement of Revenue and Expenses Excess Revenue Expenses (Deficiency) Core Operations - Schedule 1 $ 5,879,743 $ 6,625,655 $ (745,912) Annual General Assembly - Schedule 3 595, ,820 9,667 Programs - Schedule 4 26,022,573 25,101, ,223 $ 32,497,803 $ 32,312,825 Excess of revenue over expenses $ 184,978 For the year ended March 31, 2000 Excess Revenue Expenses (Deficiency) Core Operations - Schedule 1 $ 6,712,622 $ 5,992,911 $ 719,711 Annual General Assembly - Schedule 3 400, ,798 (252) Programs 25,469,103 24,390,732 1,078,371 $ 32,582,271 $ 30,784,441 Excess of revenue over expenses $ 1,797,830 The accompanying summary of significant accounting policies and notes are an integral part of these consolidated financial statements. 4

20 Consolidated Statement of Cash Flows For the year ended March Cash flows from operating activities Excess of revenue over expenses $ 184,978 $ 1,797,830 Adjustments to reconcile revenue over expenses to net cash provided by operating activities: Amortization 242, ,636 Share of loss (gain) from AFN Insurance Brokers (24,680) 25,335 Changes in non-cash operating accounts Deferred revenue 39,751 (400,462) Contributions receivable (1,390,701) (821,560) GST receivable 359,117 (182,968) Prepaid expenses (507) (50,935) Amounts receivable (202,297) (34,182) Accounts payable and accrued liabilities 737,169 (1,145,567) Excess contributions (62,677) (284) (117,220) (577,157) Cash flows from investing activities Purchase of capital assets (394,689) (164,071) Cash flows from financing activities Bank loan 595, ,739 Increase in cash during the year 83,659 35,511 Cash, beginning of year 120,145 84,634 Cash, end of year (Note 3) $ 203,804 $ 120,145 Supplemental Cash Flow Information Cash paid for interest $ 35,016 $ 26,952 The accompanying summary of significant accounting policies and notes are an integral part of these consolidated financial statements. 5