ACCESS HOUSING CONNECTIONS INC. FINANCIAL STATEMENTS

Transcription

1 FINANCIAL STATEMENTS As at December 31, 2005

2 NOTES TO FINANCIAL STATEMENTS December 31, THE COMPANY AND IT'S MISSION The Access Housing Corporation Inc. [ AHC ] was incorporated August 14, 2003 under the provisions of the Ontario Business Corporations Act and is wholly owned by Toronto Community Housing Corporation ["TCHC ]. In establishing AHC, the TCHC approved a Shareholder Direction that set guiding principles, high-level objectives and expected accountability to TCHC. The Shareholder Direction establishes AHC as a non-profit corporation under the direction of an independent Board of Directors. AHC is a non-profit organization and, as such, is exempt from income taxes under Section 149(1) of the Income Tax Act (Canada). On January 1, 2004, AHC commenced operations in the delivery of housing access services and in the administration of homelessness and commercial rent supplement programs. 2 RECEIVABLE - Toronto Community Housing Corporation This Subsidy received for the Housing Allowance program of $1,800,000 has been integrated with TCHC investments to maximize the rate of return. The program has paid out $400 in 2005, the balance is carried forward to Interest earned on funds to December 31, 2005 amounted to $ 32,262 (yield of 5.6%) and is included in revenue. 3 NOTES PAYABLE - Toronto Community Housing Corporation Note payable dated December 31, 2004 of $ 336,725 to TCHC is due on change of ownership or control of AHC and carry interest at 5.5% per annum. TCHC has forgiven the interest on the note for the year ended December 31, Note payable dated December 31, 2005 of $ 821,930 to TCHC is due on change of ownership or control of AHC and carry interest at 5.0% per annum. No interest is payable as at December 31, 2005 Note - December 31, 2004 $336,725 Note - December 31, 2005 $821,930 Total $1,158,655 Note - December 31, 2005 is calculated as: Unfinanced Capital Expenditure: Addition to net assets $1,143,122 Less charged to operations (depreciation) (127,293) Change in net assets invested in capital assets 1,015,829 Deficit for ,101 1,121,930 Contributed capital -TCHC (300,000) $821,930 4 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES These financial statements have been prepared in accordance with Canadian generally accepted accounting principles for nonprofit oriented organizations, unless otherwise directed to specific accounting recommendations of the Public Sector Accounting Board.

3 Use of estimates The preparation of these 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 disclosure 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. Capital Assets useful lives of the assets, as follows: Furniture and equipment Computer software 4-15 years 4 years Future Employee Related Costs Liability for future AHC employee related costs are reflected on the Balance Sheet of TCHC.

4 BALANCE SHEET As at December ,004 $ $ ASSETS Current Cash and cash equivalents $700 $700 Receivable - City of Toronto 2,961, ,939 Receivable - Toronto Community Housing Corporation [note 2] 1,832,262 0 Receivable - GST 30,867 69,401 Receivable - sundry 0 6,849 Total current assets 4,825, ,889 Capital assets 1,015,829 0 Total assets $5,841, ,889 LIABILITIES AND NET ASSETS Current Accounts payable 106, ,952 Payable - Province of Ontario 0 181,010 Rent Supplement payable - special initiative 1,167,600 0 Rent Supplement payable - regular programs 275, ,386 Payable - Toronto Community Housing Corporation 2,054,091 0 Deferred Housing Allowance [note 2] 1,799,600 0 Total current liabilities 5,403, ,348 Notes payable - Toronto Community Housing Corporation [note 3] 1,158, ,725 Total liabilities 6,561,859 1,098,073 Net Assets Share capital: authorized and issued 100 common shares Capital Contibution 300,000 0 Invested Capital 300, Invested in capital assets 1,015,829 0 Deficit from Operations (2,036,214) (914,284) Total net assets (1,020,385) (914,284) Total net assets and invested capital (720,285) (914,184) Total liabilities and net assets $5,841,574 $183,889 Approved on behalf of the Board: Director Director

5 CONSOLIDATED STATEMENT OF CHANGES IN NET ASSETS Year ended December 31, 2005 Net Capital Surplus Assets (Deficit) Total $ $ $ Net assets, beginning of year 0 (914,284) (914,284) Excess of revenue over expenses for the year (deficit) (106,101) (106,101) Change in net assets invested in capital assets 1,015,829 (1,015,829) 0 Net assets, end of year 1,015,829 (2,036,214) (1,020,385) NET CAPITAL ASSETS The net assets invested in capital assets consists of the following: Opening Net Closing Net Assets Additions Assets $ $ $ Furniture and equipment 0 207, ,968 Computer software 0 935, , ,143,122 1,143,122 Less accumulated depreciation 0 127, , ,015,829 1,015,829

6 OPERATING STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2005 Waiting List Rent Supplement Total 2004 Budget Actual Over/(Under) Budget Actual Over/(Under) Actual Actual REVENUES $ $ $ $ $ $ $ $ Operating Subsidy - City 4,165,000 4,165, , , ,335,000 3,919,500 Operating Subsidy - Province ,893 Rent Supplement Grants ,533,000 25,450, ,899 25,450,899 23,330,171 Interest ,262 32,262 32,262 Total Revenue 4,165,000 4,165, ,703,000 25,653, ,161 29,818,161 27,415,564 EXPENDITURES Operating Costs Salaries & Wages 2,309,221 2,314,399 5, , ,517 (58,906) 2,720,916 2,545,008 Employee Benefits 542, ,742 (68,032) 98,670 77,046 (21,624) 551, ,231 Staff Expenses 46,700 21,716 (24,984) 2, (1,698) 22,299 47,291 Office Expenses 478, , ,062 1, (1,256) 676, ,134 Board Members' Expense 0 9,896 9, ,896 6,088 Systems 85, ,744 98, ,744 1,039,378 Professional Services 35,000 6,143 (28,857) 0 13,350 13,350 19,493 0 Administration 14, , , , ,932 Emergency Homeless Administration ,615 Interest expense [note 2] Total Operating Costs 3,511,345 3,848, , , ,880 (70,133) 4,346,070 # 4,999,677 Rent Supplement Payments Commercial ,797,000 14,897,635 (899,365) 14,897,635 14,730,064 Homelessness 8,736,000 10,553,265 1,817,265 10,553,265 8,600,107 Total Rent Supplement Payments ,533,000 25,450, ,899 25,450,899 23,330,171 Total Expenditures 3,511,345 3,848, ,846 25,101,013 25,948, ,766 29,796,970 28,329,848 Excess of revenue over expenditures 653, ,809 (336,846) (398,013) (295,618) 102,395 21,192 (914,284) Depreciation 0 127, , ,293 0 Net Earnings (Deficit) for the year 653, ,517 (464,138) (398,013) (295,618) 102,395 (106,101) (914,284)

7 OPERATING CASH STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2005 Waiting List Rent Supplement 2005 Total 2004 Budget Actual Over/(Under) Budget Actual Over/(Under) Actual Actual REVENUES Operating Subsidy - City $4,165,000 $4,165,000 0 $170,000 $170,000 0 $4,335,000 $ 3,919,500 Operating Subsidy - Province ,893 Rent Supplement Grants ,533,000 25,450, ,499 25,450,899 23,330,171 Interest ,262 32,262 32,262 Total Revenue 4,165,000 4,165, ,703,000 25,653, ,761 29,818, ,415,564 EXPENDITURES Operating Costs Salaries & Wages 2,309,221 2,314,399 5, , ,517 (58,906) 2,720,916 2,545,008 Employee Benefits 542, ,742 (68,032) 98,670 77,046 (21,624) 551, ,231 Staff Expenses 46,700 21,716 (24,984) 2, (1,698) 22,299 47,291 Office Expenses 478, , ,062 1, (1,256) 676, ,134 Board Members' Expense 0 9,896 9, ,896 6,088 Systems 85, ,744 98, ,744 1,039,378 Professional Services 35,000 6,143 (28,857) 0 13,350 13,350 19,493 0 Administration 14, , , , ,932 Emergency Homeless Administration ,615 Total Operating Costs 3,511,345 3,848, , , ,880 (70,133) 4,346,070 4,999,677 Rent Supplement Payments Commercial ,797,000 14,897,635 (899,365) 14,897,635 14,730,064 Homelessness ,736,000 10,553,265 1,817,265 10,553,265 8,600,107 Total Rent Supplement Payments ,533,000 25,450, ,899 25,450, ,330,171 Total Operating Expenditures 3,511,345 3,848, ,846 25,101,013 25,948, ,766 29,796, ,329,848 OPERATING CASH FLOW 653, ,809 (336,846) (398,013) (295,618) 102,395 21,192 (914,284) CONTRIBUTED CAPITAL 0 300, , ,000 0 Capital Expenditures Furniture and Equipment 300, ,968 (92,032) ,968 0 Software 1,300, ,154 (364,846) 130,000 0 (130,000) 935,154 0 Total Capital Expenditures 1,600,000 1,143,122 (456,878) 130,000 0 (130,000) 1,143,122 0 NET CASH FLOW (946,345) (526,312) 420,033 (528,013) (295,618) 232,395 (821,930) (914,284)

8 STATEMENT OF CASH FLOWS Year Ended December $ $ OPERATING ACTIVITIES Excess of revenue over expenses for year ($106,101) ($914,284) Add (deduct) items not involving cash Depreciation of other capital assets 127, ,192 (914,284) Changes in non-cash working capital balances related to operations Receivable - City of Toronto (2,854,977) (106,939) Receivable - Toronto Community Housing Corporation [note 2 ] (1,832,262) 0 Receivable - GST 38,534 (69,401) Receivable - sundry 6,849 (6,849) Accounts payable (19,039) 125,952 Payable - Province of Ontario (181,010) 181,010 Rent Supplement payable - special initiative 1,167,600 0 Rent Supplement payable - regular programs (179,386) 454,386 Payable - Toronto Community Housing Corporation 2,054,091 0 Deferred rental allowance 1,799,600 0 Cash provided by operating activities 21,192 (336,125) INVESTING ACTIVITIES Purchase of other capital assets (1,143,122) 0 Note payable - Toronto Community Housing Corporation [note 2] 821, ,725 Share capital Contributed Capital 300,000 0 Cash used in investing activities (21,192) 336,825 Net increase (decrease) in cash and cash equivalents during the year (0) 700 Cash and cash equivalents, beginning of year Cash and cash equivalents, end of year $700 $700