Roots To Harvest Financial Statements December 31, 2016 (Unaudited)

Transcription

1 Financial Statements December 31, 2016

2 Contents Page Management's Responsibility Review Engagement Report Financial Statements Statement of Financial Position... 1 Statement of Operations and Changes in Net Assets... 2 Statement of Cash Flows... 4 Notes to the Financial Statements... 5 Schedules Schedule 1 - Schedule of Restricted Fund - Trillium Grow Program and Schedule 2 - Schedule of Restricted Fund - Trillium Seed Program s and Schedule 3 - Schedule of Restricted Fund - Canada Summer Jobs and Schedule 4 - Schedule of Restricted Fund - TBDSSAB and Schedule 5 - Schedule of Restricted Fund - NOHFC and Schedule 6 - Schedule of Restricted Fund - City of Thunder Bay and Schedule 7 - Schedule of Restricted Fund - The Bauta Family Initiative and Schedule 8 - Schedule of Restricted Fund - CED Cooperators and Schedule 9 - Schedule of Restricted Fund - Agricultural Adaption Council and Schedule 10 - Schedule of Restricted Fund - Lush Handmade Cosmetics s and Schedule 11 - Schedule of Restricted Fund - Canadian Lakehead Exhibition s and Schedule 12 - Schedule of Restricted Fund - Greenbelt Program s and Schedule 13 - Schedule of Restricted Fund - Edible Food Forest and Schedule 14 - Schedule of Restricted Fund - Thunder Bay Community Foundation s and... 23

3 Management's Responsibility To the Board of Directors of Roots To Harvest: Management is responsible for the preparation and presentation of the accompanying financial statements, including responsibility for significant accounting judgments and estimates in accordance with Canadian accounting standards for not-for-profit organizations. This responsibility includes selecting appropriate accounting principles and methods, and making decisions affecting the measurement of transactions in which objective judgment is required. In discharging its responsibilities for the integrity and fairness of the financial statements, management designs and maintains the necessary accounting systems and related internal controls to provide reasonable assurance that transactions are authorized, assets are safeguarded and financial records are properly maintained to provide reliable information for the preparation of financial statements. The Board of Directors is composed primarily of Directors who are neither management nor employees of the Organization. The Board is responsible for overseeing management in the performance of its financial reporting responsibilities. The Board fulfils these responsibilities by reviewing the financial information prepared by management and discussing relevant matters with management and external accountants. The Board is also responsible for recommending the appointment of the Organization's external accountants. MNP LLP is appointed by the Board of Directors to review the financial statements and report directly to them; their report follows. The external accountants have full and free access to, and meet periodically and separately with, both the Board and management to discuss their review engagement results. February 21, 2017 Erin Beagle

4 Review Engagement Report To the Board of Directors of Roots To Harvest: We have reviewed the statement of financial position of Roots To Harvest as at December 31, 2016 and the statements of operations and changes in net assets and cash flows for the year then ended. Our review was made in accordance with Canadian generally accepted standards for review engagements and, accordingly, consisted primarily of inquiry, analytical procedures and discussion related to information supplied to us by the Organization. A review does not constitute an audit and, consequently, we do not express an audit opinion on these financial statements. Based on our review, nothing has come to our attention that causes us to believe that these financial statements are not, in all material respects, in accordance with Canadian accounting standards for not-for-profit organizations. Thunder Bay, Ontario February 21, 2017 Chartered Professional Accountants Licensed Public Accountants 1205 Amber Drive, Suite 210, Thunder Bay, Ontario, P7B 6M4, Phone: (807) , 1 (866)

5 Statement of Financial Position As at December 31, 2016 Assets Current Cash and cash equivalents 97,401 21,255 Short-term investment - 10,225 Accounts receivable 39,061 10,641 HST receivable 5,859 5,651 Prepaid expenses and deposits ,903 48,354 Capital assets (Note 3) 27,749 24, ,652 73,091 Liabilities Current Accounts payable and accruals 13,861 7,945 Deferred contributions (Note 4) 109,797 24,791 Government remittances payable 5,233 2, ,891 35,445 Deferred contributions related to capital assets (Note 5) 20,604 24, ,495 60,182 Net Assets Unrestricted 14,012 12,909 Invested in capital assets 7, ,652 73,091 Approved on behalf of the Board Director Director The accompanying notes are an integral part of these financial statements 1

6 Statement of Operations and Changes in Net Assets Restricted Fund Unrestricted Fund- Fundraising Invested in Capital Assets Total Total Agricultural Adaption Council 19, ,604 19,573 CED Cooperators 20, ,000 20,000 Canada Summer Jobs 9, ,231 6,155 Canadian Lakehead Exhibition 11, ,600 - City of Thunder Bay 14, ,000 13,000 Lush Handmade Cosmetics 18, ,000 - Northern Ontario Heritage Fund Corporation 21, ,129 25,200 Ontario Trillium Foundation 157, ,800 20,100 Thunder Bay Community Foundation 2, ,340 4,840 Thunder Bay DSSAB 15, ,000 15,000 USC Canada 4, ,500 6,500 Greenbelt 22, ,000 - Direct public support - 25,447-25,447 7,240 Ecosource ,250 Expense reimbursements - 63,816-63,816 36,638 Fundraising - 43,054-43,054 33,802 Interest income Other income - 119, ,845 10,952 Amortization of deferred contributions related to capital assets 8, ,243 10,601 Add: Prior year deferred revenue 24, ,791 9,727 Less: Current year deferred revenue (109,797) - - (109,797) (24,791) Less: deferred contributions related to capital assets (4,110) - - (4,110) - 234, , , ,913 Continued on next page The accompanying notes are an integral part of these financial statements 2

7 Statement of Operations and Changes in Net Assets Restricted Fund Unrestricted Fund- Fundraising Invested in Capital Assets Total Total Administrative 4,302 3,835-8,137 1,324 Amortization 8,243 3,062-11,305 10,601 Books and subscriptions ,729 - Fundraising - 13,400-13,400 10,484 Furniture and equipment 4,110 12,857-16, Insurance - 1,696-1,696 2,201 Meeting expenses 887 1,423-2,310 2,762 Office ,667 Office and equipment rental 14,057 2,390-16,447 13,717 Outside contract services 3,375 11,048-14,423 15,653 Professional fees 4,000 3,465-7,465 7,677 Staff development 3,231 2,135-5,366 3,231 Supplies 28,046 9,995-38,041 23,505 Transportation 3,056 6,839-9,895 10,962 Volunteer appreciation 237 1,997-2, Wages - administrative 7,128 49,531-56,659 72,173 Wages - programming 122,354 51, ,656 50,915 Youth employment 34,246 77, ,160 17, , , , ,498 Deficiency of revenue over expenses before (4,110) (1,959) - (6,069) (11,585) other items Other items Capital acquisitions included in expenses 4,110 10,207-14,317 - Excess (deficiency) of revenue over expenses - 8,248-8,248 (11,585) Net assets, beginning of year - 12,909-12,909 24,494 Change in invested in capital assets (Note 7) - (7,145) 7, Net assets, end of year - 14,012 7,145 21,157 12,909 The accompanying notes are an integral part of these financial statements 3

8 Statement of Cash Flows Cash provided by (used for) the following activities Operating Excess (deficiency) of revenue over expenses 8,248 (11,585) Amortization 11,305 10,601 Amortization of deferred contributions related to capital assets (8,243) (10,601) 11,310 (11,585) Changes in working capital accounts Accounts receivable (28,420) 2,575 HST receivable (208) (2,440) Accounts payable and accruals 5,916 2,036 Government remittances payable 2, Deferred contributions 85,006 15,064 76,128 5,709 Financing Deferred contributions related to capital assets 4,110 17,000 Investing Purchase of short-term investment - (10,225) Proceeds on disposal of short-term investment 10,225 10,124 Purchase of capital assets (14,317) (17,000) (4,092) (17,101) Increase in cash resources 76,146 5,608 Cash resources, beginning of year 21,255 15,647 Cash resources, end of year 97,401 21,255 The accompanying notes are an integral part of these financial statements 4

9 Notes to the Financial Statements 1. Purpose of the organization Roots to Harvest (the "Organization") is a tax-exempt, not-for-profit organization, incorporated under letters patent without share capital under the laws of the Province of Ontario. It is a registered charity under the Income Tax Act. Its principal purpose is to provide transformative educational opportunities for youth to engage with local agriculture and cultivate healthy communities in Thunder Bay. 2. Significant accounting policies The financial statements have been prepared in accordance with Canadian accounting standards for not-for-profit organizations set out in Part III of the CPA Canada Handbook - Accounting, as issued by the Accounting Standards Board in Canada and includes the following significant accounting policies: Fund accounting The Organization follows the deferral method of accounting for contributions and reports using fund accounting, and maintains three funds: Unrestricted Fund, Restricted Fund and the Investment in Capital Assets. The Unrestricted Fund reports the Organization s contributions related to the operations and administration of the Organization. Unrestricted contributions and restricted contributions for which no appropriate restricted fund exists are reported in this Fund. Invested in capital assets reports the capital assets of the Organization, together with any related financing. The Restricted Fund reports the Organization s externally restricted contributions, related to the delivery of programs. Cash and cash equivalents Cash and cash equivalents include balances with banks and short-term investments with maturities of three months or less. Marketable securities Marketable securities with prices quoted in an active market are measured at fair value while those that are not quoted in an active market are measured at cost less impairment. Long-lived assets Long-lived assets consist of capital assets. Long-lived assets held for use are measured and amortized as described in the applicable accounting policies. When the Organization determines that a long-lived asset no longer has any long-term service potential to the organization, the excess of its net carrying amount over any residual value is recognized as an expense in the statement of operations. Write-downs are not reversed. Capital assets Purchased capital assets are recorded at cost. Contributed capital assets are recorded at fair value at the date of contribution if fair value can be reasonably determined. Amortization is provided using the declining balance method at rates intended to amortize the cost of assets over their estimated useful lives. Method Rate Automotive declining balance 30 % Equipment declining balance 20 % Deferred contributions related to capital assets Deferred contributions related to capital assets represent the unamortized portion of contributed capital assets and restricted contributions that were used to purchase the Organization s capital assets. Recognition of these amounts as revenue is deferred to periods when the related capital assets are amortized. 5

10 Notes to the Financial Statements 2. Significant accounting policies (Continued from previous page) recognition The Organization follows the deferral method of accounting for contributions. Restricted contributions are recognized as revenue in the year in which the related expenses are incurred. Unrestricted contributions are recognized as revenue when received or receivable if the amount to be received can be reasonably estimated and collection is reasonably assured. Employment subsidies and other income are recognized as revenue when goods or services have been provided and the amount to be received can be reasonably estimated and collection is reasonably assured. Contributed materials and services Contributions of materials and services are recognized both as contributions and expenses in the statement of operations when a fair value can be reasonably estimated and when the materials are used in the normal course of the Organization's operations and would otherwise have been purchased. In addition, volunteers contribute substantial donated time and services throughout the year to the Organization. Due to the difficulty of determining the fair market value of these donated time and services, the value is not recorded in these financial statements. Measurement uncertainty (use of estimates) The preparation of financial statements in conformity with Canadian accounting standards for not-for-profit organizations requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Accounts receivable are stated after evaluation as to their collectability and an appropriate allowance for doubtful accounts is provided where considered necessary. Accounts payable and accruals are estimated based on historical charges for unbilled goods and services at year-end. Amortization and deferred contributions related to capital assets are based on the estimated useful life of capital assets. Deferred contributions are estimated based on management's review of revenue received but unspent at year-end. These estimates and assumptions are reviewed periodically and, as adjustments become necessary they are reported in excess of revenue over expenses in the periods in which they become known. Allocation of expenses The Organization engages in various programs. The costs of each program include the costs of personnel, premises and other expenses that are directly related to providing the program. The Organization also incurs a number of general support expenses that are common to the administration of the Organization and each of its programs. The Organization allocates certain of its general support and administrative expenses by identifying the appropriate basis of allocating each component expense, and applies that basis consistently each year. 6

11 Notes to the Financial Statements 2. Significant accounting policies (Continued from previous page) Financial instruments The Organization recognizes its financial instruments when the Organization becomes party to the contractual provisions of the financial instrument. All financial instruments are initially recorded at their fair value, including financial assets and liabilities originated and issued in a related party transaction with management. Financial assets and liabilities originated and issued in all other related party transactions are initially measured at their carrying or exchange amount in accordance with Section 3840 Related Party Transactions. At initial recognition, the Organization may irrevocably elect to subsequently measure any financial instrument at fair value. The Organization has not made such an election during the year. The Organization subsequently measures investments in equity instruments quoted in an active market at fair value. Fair value is determined by quoted market price. Investments in equity instruments not quoted in an active market are subsequently measured at cost less impairment. All other financial assets and liabilities are subsequently measured at amortized cost. Transaction costs and financing fees directly attributable to the origination, acquisition, issuance or assumption of financial instruments subsequently measured at fair value are immediately recognized in the excess of revenue over expenses for the current period. Conversely, transaction costs and financing fees are added to the carrying amount for those financial instruments subsequently measured at cost or amortized cost. Financial asset impairment The Organization assesses impairment of all of its financial assets measured at cost or amortized cost. When there is an indication of impairment, the Organization determines whether it has resulted in a significant adverse change in the expected timing or amount of future cash flows during the year. If so, the Organization reduces the carrying amount of any impaired financial assets to the highest of: the present value of cash flows expected to be generated by holding the assets; the amount that could be realized by selling the assets; and the amount expected to be realized by exercising any rights to collateral held against those assets. Any impairment, which is not considered temporary, is included in current year excess of revenue over expenses. The Organization reverses impairment losses on financial assets when there is a decrease in impairment and the decrease can be objectively related to an event occurring after the impairment loss was recognized. The amount of the reversal is recognized in the excess of revenue over expenses in the year the reversal occurs. 3. Capital assets Accumulated Net book Net book Cost amortization value value Automotive 45,545 21,084 24,461 24,737 Equipment 4, ,288-49,655 21,906 27,749 24,737 7

12 Notes to the Financial Statements 4. Deferred contributions Deferred contributions consist of unspent contributions externally restricted for delivery of various programs. Recognition of these amounts as revenue is deferred to periods when the specified expenditures are made. Changes in the deferred contribution balance are as follows: Agricultural Adaption Council CED Cooperators Thunder Bay Community Foundation Trillium Program Lush Handmade Cosmetics Balance, beginning of year 2,000 17,951 4, ,791 9,727 Amount received during the year 19,604 20,000 2, ,800 18, ,744 44,413 Less: amount recognized as revenue during the year (21,604) (18,550) (4,840) (82,889) (4,855) (132,738) (29,349) - 19,401 2,340 74,911 13, ,797 24, Deferred contributions related to capital assets Deferred capital contributions consist of the unamortized amount of contributions received for the purchase of capital assets. Recognition of these amounts as revenue is deferred to periods when the related capital assets are amortized. Changes in deferred capital contributions are as follows: Restricted Fund Unrestricted Fund- Fundraising Invested in Capital Assets Balance, beginning of year 24, ,737 - Amount received during the year 4, ,110 17,000 Contributed capital assets ,338 Less: Amounts recognized as revenue during the year (8,243) - - (8,243) (10,601) Balance, end of year 20, ,604 24, Contingencies The Organization is contingently liable to its funding agencies for any expenditures that it may have made in contravention of the contracts/agreements with these agencies. The actual amount of the contingent liability, if any, is currently not determinable. Any adjustments to the financial statements are reported in the year of determination. 8

13 Notes to the Financial Statements 7. Change in invested in capital assets The change in invested in capital assets is calculated as follows: Purchase of capital assets 14,317 35,338 Amortization expense (11,305) (10,601) Deferred capital contributions (4,110) (35,338) Amortization of deferred capital contributions 8,243 10,601 7, Financial instruments The Organization, as part of its operations, carries a number of financial instruments. It is management's opinion that the Organization is not exposed to significant interest, currency, credit, liquidity or other price risks arising from these financial instruments except as otherwise disclosed. Liquidity risk Liquidity risk is the risk that the Organization will encounter difficulty in meeting obligations associated with financial liabilities. Fair value The fair value of current financial assets and current financial liabilities approximates their carrying value due to their short-term maturity dates. 9. Comparative figures Certain comparative figures have been reclassified to conform with current year presentation. 9

14 Schedule 1 - Schedule of Restricted Fund - Trillium Grow Program and Ontario Trillium Foundation 97,400 20,100 Add: Prior year deferred revenue - 4,034 Less: Current year deferred revenue (29,700) - 67,700 24,134 Administrative 2, Books and subscriptions Furniture and equipment 1,995 - Insurance - 1,352 Meeting expenses Office Office and equipment rental 4,057 - Outside contract services 2, Professional fees Staff development Supplies 7,178 - Transportation 2,741 3,074 Volunteer Appreciation Wages - administrative 7,128 17,781 Wages - programming 37,372-67,700 24,134 10

15 Schedule 2 - Schedule of Restricted Fund - Trillium Seed Program s and Ontario Trillium Foundation 60,400 - Less: Current year deferred revenue (45,211) - 15,189 - Supplies 5,377 - Wages - programming 9,812-15,189-11

16 Schedule 3 - Schedule of Restricted Fund - Canada Summer Jobs and Canada Summer Jobs 9,231 6,155 Youth employment 3,832 - Wages - programming 5,399 6,155 9,231 6,155 12

17 Schedule 4 - Schedule of Restricted Fund - TBDSSAB and Thunder Bay DSSAB 15,000 15,000 Youth employment 15,000 15,000 13

18 Schedule 5 - Schedule of Restricted Fund - NOHFC and Northern Ontario Heritage Fund Corporation 21,129 25,200 Wages - programming 21,129 25,200 14

19 Schedule 6 - Schedule of Restricted Fund - City of Thunder Bay and City of Thunder Bay 14,000 13,000 Professional fees 4,000 - Office and equipment rental 10,000 13,000 14,000 13,000 15

20 Schedule 7 - Schedule of Restricted Fund - The Bauta Family Initiative and USC Canada 4,500 6,500 Outside contract services Transportation Meeting expenses Wages - programming 2,973 6,500 4,500 6,500 16

21 Schedule 8 - Schedule of Restricted Fund - CED Cooperators and CED Cooperators 20,000 20,000 Add: Prior year deferred revenue 17,951 - Less: Current year deferred revenue (19,401) (17,951) 18,550 2,049 Supplies Transportation 95 - Staff development 2,790 - Youth employment 15,414 2,049 18,550 2,049 17

22 Schedule 9 - Schedule of Restricted Fund - Agricultural Adaption Council and Agricultural Adaption Council 19,604 19,573 Add: Prior year deferred revenue 2,000 - Less: Current year deferred revenue - (2,000) 21,604 17,573 Outside contract services - 2,414 Transportation - 2,099 Wages - programming 21,604 13,060 21,604 17,573 18

23 Schedule 10 - Schedule of Restricted Fund - Lush Handmade Cosmetics s and Lush Handmade Cosmetics 18,000 - Less: Current year deferred revenue (13,145) - 4,855 - Furniture and equipment 2,115 - Supplies 2,740-4,855-19

24 Schedule 11 - Schedule of Restricted Fund - Canadian Lakehead Exhibition s and Canadian Lakehead Exhibition 11,600 - Wages - programming 11,600-20

25 Schedule 12 - Schedule of Restricted Fund - Greenbelt Program s and Greenbelt 22,000 - Supplies 12,500 - Wages - programming 9,500-22,000-21

26 Schedule 13 - Schedule of Restricted Fund - Edible Food Forest and Add: Prior year deferred revenue Wages - administrative - 5,693-5,693 22

27 Schedule 14 - Schedule of Restricted Fund - Thunder Bay Community Foundation s and Thunder Bay Community Foundation 2,340 4,840 Add: Prior year deferred revenue 4,840 - Less: Current year deferred revenue (2,340) (4,840) 4,840 - Administrative 1,875 - Wages - programming 2,965-4,840-23