McMASTER STUDENTS UNION INCORPORATED

Transcription

1 McMASTER STUDENTS UNION INCORPORATED TAKE NOTICE that there will be a meeting of McMASTER STUDENTS UNION INCORPORATED (the Corporation) on Sunday, September 30, 2012, at 6:30 p.m., local time, for the following purposes. 1. To approve the minutes from MSU Inc - SRA 11E - July 21, To approve Capital Allocation requests. 3. To approve Capital Expenditure requests. 4. To transact any further business that may properly come before the meeting. Dated at Hamilton, Ontario, this 20th day of September, 2012 BY ORDER OF THE BOARD OF DIRECTORS. Jessica Bauman Corporate Secretary

2 MOTIONS: 2. Moved by Wyngaarden, seconded b y that the Full Members of the Corporation approve the allocation of $4500 from the capital growth plan for the purchase of a new AED for EFRT. 3. Moved by Wyngaarden, seconded b y that the Full Members of the Corporation approve the expenditure of $4500 from the capital growth plan for the purchase of a new AED for EFRT.

3 M e e tin g o f Full M e m b e rs o f M S U Inc. S unday, S e p te m b e r 3 0, SRA 12G Council C ham bers, GH 111 Call to O rd e r a t 7 :0 0 pm CALL OF THE ROLL P re s e n t A bsent Excused A b s e n t Late O thers Present C hair A rm stro n g, B ergen, Bifano, B o b er-in o u e, C heung, Cicchi, Collins, D aniel, D oucet, G alan, G raham, H e lie -M a s te rs, Jam ieson, Jeyasingham, Kanani, Khaja, Long, M ila n i, M o h a m e d, M o rro w, N arro Perez, Neves, Pullen, Saeed, U ng, W ay n e-p h illip s, W y n g a a rd e n, Zuchow ski Cam pbell M elissa S harm a (D R O ), M a g g ie G allag h er (M S U C o m p tro lle r), M a llo ry Fitz-Ritson (SASS O bserver), Steven Thom pson (CRO), Adnan A hm ad (Finance Com m issioner), A le xander B u rn e tt (M S U M e m b e r), Casey Park (M D S tu d e n t), V ictoria S cott (R ecording S ecretary) Siobhan S tew art (M SU President) A D O P T IO N OF A G E N D A M o v e d by W y n g a a rd e n, seconded by M o rro w to a d o p t th e agenda as a m e n d e d. A m e n d m e n ts W y n g a a rd e n - Add "a p p ro v e th e m in u te s fro m M SU Inc - SRA 12E - July 2 1, , and MSU Inc - SRA 12F - S ep tem ber 16, " to Business V o te on A g en d a M o tio n Passes BUSINESS 1. To a p p ro v e th e m in u te s fro m M S U Inc - SRA 12E - July 2 1, , a n d M S U Inc - SRA 12F - S e p te m b e r 16, M o v e d by W y n g a a rd e n, seconded by Ung to a p p ro v e th e m in u te s fro m M SU Inc m ee tin g s 12E and 12F as p resented. In Favour: O p p o s ed : A b s te n tio n s : 3 A b s ta in e d : G a lan, G ra n a t, B o b e r-in o u e M o tio n Passes 2. To A p p ro v e C ap ita l A llo c a tio n R equests M o v e d by W y n g a a rd e n, seconded by Jam ieson th a t th e Full M e m b e rs o f th e C o rp o ratio n a p p ro v e th e a llocatio n o f $ fro m th e capital g ro w th plan fo r th e purchase o f a n e w AED fo r EFRT. W y n g a a rd e n exp lain ed th a t he had received an em ail fro m th e EFRT C o o rd in a to r, and th a t th e device has been tu rn in g its elf on and off. T h e n e w AED is an u p d a te d version o f w h a t EFRT has n o w, and it is user friendly. He explained th a t it is im p o rtan t to have this equipm ent.

4 MSU Inc. SRA 12G September 30, 2012 Page 2 Discussion G ranat asked w hy this w asn't sent through to th e Finance C om m ittee. W yngaarden responded th a t capital requests have been addressed at each MSU Inc m eeting w ith o u t th e Finance C o m m itte e as it's n o t in th e bylaw. W h ile th e p ro cedure h a sn 't been fleshed o u t in th e bylaw, capital requests g e t fo rw a rd e d on to th e V ice-p re sid e n t (Finance), th e n th e Finance C o m m itte e, and th e n brought fo rw ard to th e m eeting through th e V ice-president (Finance). Cicchi recom m ended bringing this to th e Finance C om m ittee. D aniel asked h o w tim e sensitive this was. W yngaarden explained th a t this was brought fo rw ard over tw o w eeks ago, and th e EFRT C oordinator at th e tim e stated th a t it could w a it tw o w e e ks b u t th a t th e y s h o u ld n 't w a it longer th a n th a t. G ranat asked w hy th ey are expensing this m uch. W y n g a a rd e n responded th a t this practise is n o rm a lly d o n e w ith all capital allocatio ns and e x p e n d itu re s in case o f incidentals. M o v e d by G raham, seconded by M ila n i to c o m m it th e m o tio n to Finance C o m m itte e. M ila n i s tated th a t som e o f th e Full M e m b e rs w o u ld like to see it go to C o m m itte e, and th a t she is w illing to le t it h appen. Discussion o n m o tio n t o c o m m it W y n g a a rd e n th a n k e d e ve ryo n e fo r th e concern as th is is s o m e w h a t tim e sensitive. He expla in e d th a t he was fin e w ith this going to th e Finance C o m m itte e, b u t th a t it's n o t in th e Finance C o m m itte e 's m a n d a te to go over allocation and expenditure requests. Jam ieson stated th a t it w as c o m p le te ly w ith in th e Full M e m b e rs ' rig h t to m ake a decision on this. He exp lain ed th a t he w o u ld ra th e r spend th e m o n e y n o w on th e e q u ip m e n t instead o f n o t, and som e e m e rg e n c y happens. He ad d ed th a t m ost o f th e Finance C o m m itte e is a t th e m e e tin g rig h t n o w, so th a t th ey can help m ake th e decision. D o ucet stated th a t he looked up th e price o f th e device and fo u n d a c h e a p e r m odel online. He p o in ted o ut th a t he w asn't sure if due diligence was done. G ra n a t stated th a t w h ile this should be going to th e Finance C o m m itte e, th e Full M e m b e rs should v o te on it now. He p o in ted o u t th a t he w ill be vo tin g against th e m o tio n to go to c o m m itte e, b u t th a t in th e fu tu re th ey should go fo rw ard w ith due process. W y n g a a rd e n responded to D o u ce t th a t he w o u ld like to disagree th a t th e y d id n 't fo llo w d u e process, and th a t th e y s h o u ld n 't be nickel and d im ing on s o m eth in g th a t saves lives. He a d d ed th a t th e re m ay be cheaper options but w ould like to think th a t th ey are getting a good deal. V o te to C o m m it In Favour: 3 O p p o s ed: 19 A b s te n tio n s : 5 O p p o s ed : S aeed, H e lie -M a s te rs, Collins, B ifan o, B erg en, M o r r o w, N a rro Perez, D a n ie l, K haja, U ng, Jam ieson, C heung, N eves, J eyasin g h am, M o h a m e d, A rm s tro n g, K anani, Long, G alan A b s ta in e d : W y n g a a rd e n, W a y n e -P h illip s, M ila n i, P u llen, G ra n a t M o tio n Fails V o te o n M a in M o tio n In Favour: 2 4 O p p o s ed: 1 A b s te n tio n s : 2 O p p o s ed: G ra h a m A bstained: M ila n i, Cicchi M o tio n Passes

5 MSU Inc. SRA 12G September 30, 2012 Page 3 3. To A p p ro v e C ap ita l E x p e n d itu re R equest M o v e d by W y n g a a rd e n, seconded by N eves th a t th e Full M e m b e rs o f th e C o rp o ratio n a p p ro v e th e e x p e n d itu re o f $ fro m th e capital g ro w th plan fo r th e purchase o f a n e w AED fo r EFRT. D iscussion Cicchi asked fo r an e xp la n atio n as to w h y th e y w o u ld have to a llo c ate m o re m o n e y to w a rd s th e e x p e n d itu re. W y n g a a rd e n responded th a t th e q u o te w as fo r $ 4,3 0 0 and th e y usually give a lee w a y o f $ fo r any extra incidentals. Doucet asked if th ey could allocate and expend if th ey find som ething cheaper. W yngaarden responded th a t th ey could. V o te on M o tio n In Favour: 2 6 O p p o s ed : 1 A b s te n tio n s : 1 O p p o s ed: G ra h a m A b s ta in e d : Cicchi M o tio n Passes 4. A u d ite d Financial S ta te m e n ts M o v e d by W y n g a a rd e n, seconded by G ra n a t th a t th e Full M e m b e rs o f th e C o rp o ratio n a p p ro v e th e audited financial statem ents. W yngaarden w e n t over th e financial statem ents w ith th e Full M em bers. D iscussion G ra n a t asked th e V ic e -P re s id e n t (Finance) to s tate w h a t th e b o tto m line w as and h o w m uch p ro fit. W yngaarden responded th a t it was around $ 90 0,00 0. D o ucet asked h o w m uch p o p u la tio n g ro w th on cam pus had to do w ith th e financial s tatem e n ts. W y n g a a rd e n responded th a t he d id n 't th in k it had as m uch o f an im p act as it did on o th e r sectors. The m ain reason w as th a t th e re w as a vast m a jo rity o f savings fro m doing w e ll th is year. T h e M SU m an aged to cut e xp e n d itu res w ith o u t c u ttin g into revenues. T h e re w e re proposed b u d g et cuts fro m previou s years, and th a t th e M SU has also b een a b le to deal w ith issues on shrinkages, and item s th a t have been deprecated and not on th e books anym ore. V o te o n M o tio n In Favour: 2 8 O p p o s ed : 0 A b s te n tio n s : 1 A b s ta in e d : G alan M o tio n Passes A D J O U R N M E N T M o v e d by Pullen, seconded by Kanani th a t th e m eeting o f MSU Inc adjourn. Passes by General Consent A d jo u rn e d a t 7 :2 9 pm /vs

6 2010/2011 Annual Budget Capital Request Form Request by : Asset Name : Type of Asset (A,B,C,D) : Asset Description : Expected Cost : Additional Questions (Y/N) Dept. Code I 107 I Phillips Heart Start FR3 [ B ] Dept. Name EFRT A Fixed 3 B = Fixed - 5 year C = Fixed - 10 year D = Leasehold A Phillips Heart Start FR3 Automated External Defibrillator (Includes standard battery, SMART Pads III, and user documentation, 5-year warranty) $4, Is this item essential to the continued operation of your department? Will this purchase derive any savings to your service or department? Will there be any additional expenses associated with this item? If so, how much annually? How much revenue will be generated from the purchase of this asset? Please attach support for figure Please outline the rationale for this purchase? (Please note department &Organizational efficiencies) a s per the e c c 2U1U guiaeunes the focus on caraiopuimonary resusitation has movea to quick Automatea External uciidrni perishock time. The Phillips Heart Start FR3 has been designed with these important features in mind. We were also advised upgrade to our current model by our medical director Dr. Edward Wasser. Our current AED the Phillips Heart Start FR2 was McMaster EFRT will always have access to an AED in the event of a cardiac arrest on campus. Having an AED which is cui an important aspect of carrying this AED. As our AED begins to show signs of it's age (e.g. turning on and off sporadically) : without a working AED in our response packs. Upgrading to the Phillips Heart Start FR3 will require little to no training as i

7 Legend of Asset Type Put your department code &name (i.e. Computer, Paint and Decor, etc.) See Asset Type Legend A brief description for inclusion in the Annual Budget about the asset and how it will be used. Amount requested for budget : (include PST and GST and any other costs) Y N180$ AED Pads lation ana a minimization oi the that the FR3 would be an excellent >purchased in 2006 to ensure that the rent with the 2010 ECC guidelines is it is very important that we are never ts operation is the same as our

8 Print Invoice - PayPal 1 of 1 9/13/2012 8:37 PM INVOICE Hard and Fast CPR Kenneth Piercey 1063 King Street West Suite 259 Hamilton Ontario L8s 4s3 Canada Phone: Invoice number 0207 Invoice date 9/11/2012 Payment terms Due on receipt Due date 9/11/2012 kpiercey@hardandfastcpr.com Bill To efrt@msu.mcmaster.ca Mcmaster Student Union Inc. Emergency First Response Team Liam Jackson 1280 MAIN ST. W., MUSC 201 Hamilton Ontario L8S 4S4 Canada Date Description Quantity Unit price Amount 9/11/2012 Phillips FR3 AED - Includes standard battery, SMART Pads III, and user documentation, 5-year warranty 9/13/2012 Phillips FR3 AED T rainer - Includes case, battery, trainer pads, and remote. 1 $2, $2, $ $ Subtotal $3, Shipping/handling $60.00 HST 13% $ Total $4, CAD

9 Financial Statements of MCMASTER STUDENTS UNION INCORPORATED Year ended April 30, 2012

10 Financial Statements Year ended April 30, 2012 Page Independent Auditors R eport... 1 Statement of Financial P osition...3 Statement of Operations...4 Statement of Changes in Net A ssets...5 Statement of Cash Flows...6 Notes to Financial Statem ents... 7 Schedule 1 - Schedule of Operations - Adm inistration Schedule 2 - Schedule of Operations Schedule 3 - Schedule of Operations - The Silhouette Schedule 4 - Schedule Schedule 5 - Schedule of Operations - Marmor...16 of Operations - CFM U...17 Schedule 6 - Schedule of Operations - Child C a re Schedule 7 - Schedule of Operations - House of G am es Schedule 8 - Schedule of Operations - Underground Media & Design...20 Schedule 9 - Schedule of Operations - Union Market Schedule 10 - Schedule of Operations - Campus Events Schedule 11 - Schedule of Committees and Commissions, MSU Executive and Services Expenses...23 Schedule 12 - Schedule of Operations - The Short S top Schedule 13 - Schedule of Operations - Undercovers...26 Schedule 14 - Schedule of Operations - Student Health Insurance Plan Schedule 15 - Schedule of Operations - Student Dental Plan... 28

11 K P M G LLP C h a rte re d A c c o u n ta n ts Box King Street W est Suite 700 Hamilton ON L8N 3R1 Telephone (905) Telefax (905) g.ca INDEPENDENT AUDITORS REPORT To the Student Representative Assembly We have audited the accompanying financial statements of McMaster Students Union Incorporated, which comprise the statement of financial position as at April 30, 2012, the statements of operations, changes in net assets and cash flows for the year then ended, and notes, comprising a summary of significant accounting policies and other explanatory information. Management s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with Canadian generally accepted accounting principles, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor s Responsibility 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 comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified audit opinion. Basis for Qualified Opinion In common with many not-for-profit organizations, McMaster Students Union Incorporated raises revenue from various activities, the completeness of which is not susceptible to satisfactory audit verification. Accordingly, our verification of these revenues was limited to the amounts recorded in the records of the entity and we were not able to determine whether any adjustments might be necessary to revenues, excess of expenditures over revenues, current assets and net assets. K P M G LLP is a C an ad ian lim ite d lia b ility p a rtne rsh ip and a m e m b e r firm o f th e KP M G n e tw ork o f ind ep en de nt m e m b e r firm s affilia ted w ith K P M G Intern atio na l C oo pe ra tive ( K P M G In tern atio na l ), a S w iss entity. KPMG Canada provides services to KPMG LLP.

12 Qualified Opinion In our opinion, except for the possible effects on the financial statements of the matter described in the Basis for Qualified Opinion paragraph, the financial statements present fairly, in all material respects, the financial position of McMaster Students Union Incorporated as at April 30, 2012, and its results of operations and its cash flows for the year then ended in accordance with Canadian generally accepted accounting principles. Chartered Accountants, Licensed Public Accountants Hamilton, Canada September 10,

13 Statement of Financial Position As at April 30, 2012, with comparative figures for 2011 Operating Capital University Student Centre Building CFMU Student Health Insurance Plan Student Dental Plan 2012 Total 2011 Total Assets Current assets: Cash $ 306,227 $ - $ - $ - $ 209,673 $ 400 $ 516,300 $ 1,246,321 Marketable securities (note 2) 3,115, , ,332-4,181,377 3,017,988 Accounts receivable 286, , ,901 Inventories 84, ,697 89,034 Prepaid expenses 92, , , ,886 3,885, , , ,165,270 5,452,130 Capital assets (note 3) - 552,872-30, , ,699 3,885, , , , ,748,281 6,167,829 Liabilities Current liabilities: Accounts payable and accrued liabilities (note 9) 761, ,758 2,032,944 Deferred revenue 21, , , , , ,778 1,354,626 2,711,276 Due to (from) other funds 502,855 - (101,444) (494,240) 567,425 (474,596) - - Net assets (note 4) 2,599, , ,444 1,074, ,580 (96,782) 4,393,655 3,456,553 $ 3,885,192 $ 552,872 $ - $ 579,812 $ 730,005 $ 400 $ 5,748,281 $ 6,167,829 See accompanying notes to financial statements. On behalf of the Board: Director Director 3

14 McMASTER STUDENTS UNION INCORPORATED Statement of Operations Year ended April 30, 2012, with comparative figures for 2011 Operating Capital University Student Centre Building CFMU Student Health Insurance Plan Student Dental Plan 2012 Total 2011 Total Revenues: Student fees (Schedule 1, 5, 14 and 15) $ 2,401,201 $ - $ 345,579 $ 341,084 $ 1,193,427 $ 1,836,816 $ 6,118,107 $ 6,518,653 Administration (Schedule 1) 54, ,079 49,739 Investment income (Schedule 1, 5, 14) 127, ,339 27, , , (Schedule 2) 1,054, ,054,075 1,065,284 The Silhouette (Schedule 3) 173, , ,600 Marmor (Schedule 4) 177, , ,112 CFMU (Schedule 5) , ,630 19,913 Child Care (Schedule 6) 577, , ,570 House of Games (Schedule 7) 13, ,633 24,012 Underground Media and Design (Schedule 8) 820, , ,441 Union Market (Schedule 9) 752, , ,715 Campus Events (Schedule 10) 404, , ,755 Committees (Schedule 11) 111, ,127 94,407 Executive (Schedule 11) 11, ,020 37,770 Services (Schedule 11) 2,981, ,981,268 3,040,930 The Short Stop (Schedule 12) 4, ,814 35,827 Undercovers (Schedule 13) 14, , Total revenues 9,679, , ,053 1,221,325 1,836,816 13,475,433 13,664,079 Expenditures: Administration (Schedule 1) 767, , , (Schedule 2) 1,125, ,125,083 1,266,225 The Silhouette (Schedule 3) 313, , ,445 Marmor (Schedule 4) 144, , ,277 CFMU (Schedule 5) , , ,614 Child Care (Schedule 6) 596, , ,201 House of Games (Schedule 7) ,478 Underground Media and Design (Schedule 8) 700, , ,637 Union Market (Schedule 9) 657, , ,455 Campus Events (Schedule 10) 722, , ,040 Committees (Schedule 11) 352, , ,059 Executive (Schedule 11) 464, , ,430 Services (Schedule 11) 3,278, ,278,592 3,422,429 The Short Stop (Schedule 12) ,975 Undercovers (Schedule 13) 18, ,753 7,296 Student Health Insurance Plan (Schedule 14) ,085,339-1,085, ,247 Student Dental Plan (Schedule 15) ,759,907 1,759,907 1,691,047 Donations to McMaster University , ,091 1,687,982 Total expenditures 9,141, , ,857 1,085,339 1,759,907 12,538,331 13,813,157 Excess of revenues over expenditures (expenditures over revenues) $ 538,523 $ - $ 33,488 $ 152,196 $ 135,986 $ 76,909 $ 937,102 $ (149,078) See accompanying notes to financial statements. 4

15 Statement of Changes in Net Assets Year ended April 30, 2012, with comparative figures for 2011 Operating Capital University Student Centre Building CFMU Student Health Insurance Plan Student Dental Plan Total Net assets, beginning of year $ 1,923,784 $ 690,054 $ 67,956 $ 921,856 $ 26,594 $ (173,691) $ 3,456,553 Excess of revenues over expenditures 538,523-33, , ,986 76, ,102 Transfers 137,182 (137,182) Net assets, end of year $ 2,599,489 $ 552,872 $ 101,444 $ 1,074,052 $ 162,580 $ (96,782) $ 4,393,655 Operating Capital University Student Centre Building CFMU Student Health Insurance Plan Student Dental Plan Total Net assets, beginning of year $ 1,657,987 $ 887,283 $ 67,835 $ 785,696 $ 62,011 $ 144,819 $ 3,605,631 Excess of revenues over expenditures (expenditures over revenues) 68, ,160 (35,417) (318,510) (149,078) Transfers 197,229 (197,229) Net assets, end of year $ 1,923,784 $ 690,054 $ 67,956 $ 921,856 $ 26,594 $ (173,691) $ 3,456,553 See accompanying notes to financial statements. 5

16 Statement of Cash Flows April 30, 2012, with comparative figures for Operating: Excess of revenues over expenditures Items not involving cash: Amortization Changes in non-cash operating working capital items (note 5) Investing: Loss on disposal of capital assets Purchase of capital assets $ 937, ,884 (636,422) $ (149,078) 232, , , ,305 32,704 (117,900) 41,402 (58,319) (85,196) (16,917) Net change in cash and cash equivalents 433, ,388 Cash and cash equivalents, beginning of year 4,264,309 3,614,921 Cash and cash equivalents, end of year $ 4,697,677 $ 4,264,309 Represented by: Cash Marketable securities $ 516,300 4,181,377 $ 1,246,321 3,017,988 $ 4,697,677 $ 4,264,309 Supplemental cash flow information: Interest paid Interest and dividends received $ 9,965 36,386 $ 4,738 70,211 See accompanying notes to financial statements. 6

17 Notes to Financial Statements Year ended April 30, 2012 The McMaster Students Union Incorporated ("MSU") is incorporated under the laws of the Province of Ontario as a not-for-profit organization and is an exempt not-for-profit organization under the Income Tax Act. The purpose of MSU is to provide a wide variety of services to the students of McMaster University (the University ). 1. S ig n ifica n t accounting policies: (a) Use of estimates: The financial statements are prepared in accordance with Canadian generally accepted accounting principles ( GAAP ). The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Due to the inherent uncertainty in making estimates, actual results could differ from these estimates. (b) accounting: In order to ensure observance of limitations and restrictions placed on the use of the resources available to MSU, such resources are classified for accounting and reporting purposes into funds according to the activities or objectives specified. The Operating is used to account for day-to-day operations. s are provided from yearly membership fees from students, university grants, interest on funds invested and revenues from various facilities and programs. The Capital records the capital assets and the related accumulated amortization. s are provided from current revenues of the Operating equal to the amortization provision for the year less any capital asset acquisitions funded during the year. The University Student Centre Building holds restricted capital to underwrite MSU's share of planning, construction, maintenance and associated costs of the McMaster University Student Centre. Loan payments are made to the University, future occupancy charges will be made to McMaster University Centre Incorporated ( MUCI ). s are provided through the collection of a building fund fee from each MSU member and from interest accrued on the fund. The CFMU is funded through the collection of fees from MSU members and from revenue generating activities of the radio station. The fund records operating results and holds restricted capital and capital assets relating to the radio station's operations. 7

18 Notes to Financial Statements Year ended April 30, S ig n ifica n t accounting policies (continued): (b) accounting (continued): The Student Health Insurance Plan is funded through the collection of fees from MSU members and from interest earned on the fund. MSU operates a self-insured health plan for MSU members covering prescription drugs. The plan also provides for the cost of accident insurance coverage through an outside agent. The plan administrator provides reimbursements to MSU members for qualifying prescription drugs as well as remitting premiums for accidental insurance coverage. In the absence of a surplus in the fund, shortfalls in fund revenue over fund expenses are recovered from the Operating in the current year. The Student Dental Plan is funded through the collection of fees from MSU members. The MSU services the plan through a third-party insurance underwriter. The plan covers routine dental procedures for all students who choose to pay the annual premium as well as minor surgical procedures and orthodontics. (c) Cash and cash equivalents: Cash and cash equivalents consists of cash on deposit with its bankers and temporary investments. (d) Inventories: Inventories are stated at the lower of cost (at the average cost method) and net realizable value. The amount of inventory expensed in the year was $1,557,772 ( $1,755,447) (e) Capital assets: Capital assets are capitalized at cost in the Capital and amortized on a straight line basis over their estimated useful lives as follows: A sset Useful Life - Years Equipment 3-10 Leasehold improvements 3-10 (f) Revenue recognition: Fee revenue is recorded during the fiscal period. For sales of goods and services, MSU recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred, the price to the buyer is fixed or determinable and collection is reasonably assured. 8

19 Notes to Financial Statements Year ended April 30, S ig n ifica n t accounting policies (continued): (g) Contributed goods and services: A substantial number of volunteers contribute a significant amount of their time each year. Because of the difficulty of determining the fair value, contributed services are not recognized in the financial statements. (h) Financial instruments: Financial instruments are initially recorded on the statement of financial position at fair value. They are subsequently valued at fair value or amortized cost depending on the classification selected for the financial instrument. Financial assets are classified as either "held-fortrading, held-to-maturity", "available-for-sale" or "loans and receivables" and financial liabilities are classified as either "held-for-trading" or "other liabilities". Financial assets and liabilities classified as held-for-trading are measured at fair value with changes in fair value recorded in the statement of operations. Financial assets classified as held-to-maturity or loans and receivables and financial liabilities classified as other liabilities are subsequently measured at amortized cost using the effective interest method. Available-for-sale financial assets that have a quoted price in an active market are measured at fair value with changes in fair value recorded in changes in net assets. Such gains or losses are reclassified to the statement of operations when the related financial asset is disposed of or when the decline in value is considered to be other-than-temporary. MSU has classified its financial instruments as follows: - Cash and marketable securities are classified as financial assets held for trading and are measured at fair value - Accounts receivable are classified as loans and receivables and are measured at amortized cost using the effective interest method. Accounts payable and accrued liabilities are classified as other liabilities and measured at amortized cost using the effective interest method. MSU has decided to continue to apply Section 3861, Financial Instruments - Disclosure and Presentation, instead of adopting Section 3862, Financial Instruments - Disclosures, and Section 3863, Financial Instruments - Presentation, as permitted for not-for-profit organizations. The MSU has elected not to separately account for embedded derivatives. 9

20 Notes to Financial Statements Year ended April 30, M arketable securities: Marketable securities held by MSU include Canadian bonds, money market funds, fixed income mutual funds and equities. Investments reported on the statement of financial position have market values as follows: Operating $ 3,115,872 $ 2,058,435 CFMU 545, ,203 Student Health Plan 520, ,350 $ 4,181,377 $ 3,017, Capital assets: Cost Accumulated amortization 2012 Net book value Equipment Leasehold improvements $ 3,948,581 1,154,512 $ 3,637, ,785 $ 311, ,727 $ 5,103,093 $ 4,520,082 $ 583,011 Cost Accumulated amortization 2011 Net book value Equipment Leasehold improvements $ 4,049,932 1,149,506 $ 3,642, ,487 $ 407, ,019 $ 5,199,438 $ 4,483,739 $ 715,699 10

21 Notes to Financial Statements Year ended April 30, S urplus restrictions: Marmor: Revenues derived from student fees (specified for the Marmor) and grants are designated solely for operations and capital purchases of the Marmor. Any shortfall in revenues over expenditures is recovered through future period surpluses. As at April 30, 2012, the balance of the deficit attributed to the Marmor totalled $3,438 ( $36,746) and is included in the Operating net assets. 5. S upplem ental cash flo w inform ation: Changes in non-cash operating working capital items: Accounts receivable $ 699,754 $ (417,644) Inventories 4,337 91,578 Prepaid expenses 16,137 (46,204) Accounts payable and accrued liabilities (1,271,186) 826,377 Deferred revenue (85,464) 128,667 $ (636,422) $ 582, C om m itm ents: In fiscal 2011, MSU s operating agreement with MUCI ended. For fiscal 2012 and beyond, MSU will be paying their share of building costs that MUCI incurs for heating, cooling and other costs based on the square footage of the MSU s commercial areas. These costs will not be known until the fiscal year ends; however, based on historical data, costs are expected to be approximately $300,000 per year. MSU entered into an agreement with Xerox beginning in fiscal for five years whereby MSU will pay a fixed fee per photocopy to Xerox. This fee is based on usage and ranges from $ to $0.10 per photocopy, depending on the type of photocopier used. Xerox retains ownership of the photocopiers during the full term and is responsible for the repairs & maintenance of the machines. These costs will not be known until the fiscal year ends; however, based on historical data, costs are expected to be approximately $59,000 per year. 11

22 Notes to Financial Statements Year ended April 30, Financial instrum ents: Financial risk: The financial risk is the risk to MSU's revenues that arises from fluctuations in interest rates, foreign exchange rates and the degree of volatility of these rates. MSU does not use derivative instruments to reduce its exposure to interest and foreign exchange risk as management does not consider them to be material. Credit risk: Credit risk arises from the potential that a counterparty will fail to perform its obligations. MSU is exposed to credit risk from customers. However, MSU's business has a significant number of diverse customers, which reduces the concentration of credit risk. Fair value: The fair values of cash, marketable securities, accounts receivable, accounts payable and accrued liabilities approximate their carrying values due to their short-term nature. 8. C losing o f U ndercovers B ookstore On May 1, 2011, MSU closed down the Undercovers Bookstore and sublet the space to the University s Student Wellness Centre. All remaining assets have been amortized to nil during the year. Any remaining inventory was held on consignment and given back to those students who wanted it. 9. Related party transactions: MSU has the ability to significantly influence the operations of McMaster Student Centre Incorporated ( MUCI ). Included in the financial statements is a payable to MUCI of $55,008 ( $737,786 receivable) resulting from donations by MSU for the University s building fund net of transactions from which MSU has paid expenses on behalf of MUCI. The MSU administers payment of all expenses incurred by MUCI. Total amount of expenses paid on behalf of MUCI by the MSU are $888,832 ( $826,476). 10. Capital disclosures: MSU considers its capital to be comprised of its fund balances. MSU s capital management objectives consist of ensuring that it continues as a going concern in order to fulfill its mission. MSU manages its capital to safeguard its ability to operate and to meets its financial obligations as they become due. 12

23 Schedule 1 - Schedule of Operations - Administration For the year ended April 30, 2012, with comparative figures for Revenues: Member fees $ 2,401,201 $ 2,230,968 Fees - WUSC Refugee 47,169 44,691 Interest and investment income 127, ,293 Other income 6,910 5,048 2,582,593 2,395,000 Expenditures: Amortization 20,750 36,821 Computer supplies and maintenance 24,839 9,969 Donation to WUSC Refugee 46,800 44,923 GST, HST and other applicable taxes 3,092 13,419 Insurance 52,162 43,440 Memberships Miscellaneous 11,255 17,432 Office expense 21,138 25,797 Professional development 2,801 4,431 Professional fees 39,598 40,541 Purchased services 25,009 33,446 Repairs and maintenance 13,196 7,464 Salaries 530, ,689 Service charges 9,549 8,562 Telephone 10,086 10,014 Travel 1, , ,820 Less expenditures allocated to facilities 44,500 44, , ,320 Excess of revenues over expenditures $ 1,815,046 $ 1,660,680 13

24 Schedule 2 - Schedule of Operations For the year ended April 30, 2012, with comparative figures for Sales: Beer and liquor $ 410,744 $ 450,799 Food 471, , , ,409 Cost of goods sold: Beer and liquor 170, ,979 Food 221, , , , , ,088 Other income: Admission 107,977 96,456 Vending and miscellaneous 63,590 48, , , , ,963 Expenditures: Administrative 59,113 61,680 Advertising 13,550 16,430 Amortization 104, ,182 Building rental - 36,628 Entertainment 17,366 19,401 Office supplies 1,506 1,826 Repairs and maintenance 18,344 32,866 Salaries and wages 465, ,649 Staff training 11,004 14,176 Supplies 35,579 25,801 Telephone 6,766 7, , ,904 Excess of expenditures over revenues $ (71,008) $ (200,941 14

25 Schedule 3 - Schedule of Operations - The Silhouette For the year ended April 30, 2012, with comparative figures for Revenue $ 173,965 $ 195,600 Expenditures: Advertising ,983 Amortization 13,103 10,634 Bad debts 3,038 4,754 Commissions on advertising sales 13,460 14,371 General staff costs 22,997 36,745 Graphic ad layout 28,321 33,469 Office supplies 1,358 6,307 Printing costs 112, ,551 Repairs and maintenance (69) 5,979 Salaries and benefits 115, ,371 Telephone 1,824 1, , ,445 Excess of expenditures over revenues $ (139,454) $ (156,845) 15

26 Schedule 4 - Schedule of Operations - Marmor For the year ended April 30, 2012, with comparative figures for Revenues: Student fees $ 177,558 $ 169,112 Expenditures: Amortization 2,248 4,179 Miscellaneous 35 4,680 Office supplies 105 1,039 Photographic 7,311 2,414 Postage 45,000 35,000 Printing costs 68, ,350 Salaries and benefits 20,939 23,191 Telephone , ,277 Excess of revenues over expenditures (expenditures over revenues) $ 33,308 $ (2,165) 16

27 Schedule 5 - Schedule of Operations - CFMU For the year ended April 30, 2012, with comparative figures for Revenues: Student fees $ 341,084 $ 325,110 Advertising sales 12,063 5,725 Investment income 19,339 22,751 Sponsorships 19,567 14, , ,774 Expenditures: Administration 29,112 20,561 Amortization 7,381 9,140 Bad debts 600 2,446 Contractual maintenance services 1,550 4,556 GST, HST and other applicable taxes 2,005 6,552 Insurance 5,400 2,500 Memberships and licenses 755 9,199 Office supplies 3,963 1,783 Repairs and maintenance 19,265 14,655 Salaries and benefits 156, ,309 Telephone 8,075 9,457 Travel and transportation 5, , ,614 Excess of revenues over expenditures $ 152,196 $ 136,160 17

28 Schedule 6 - Schedule of Operations - Child Care For the year ended April 30, 2012, with comparative figures for Revenues: Parents $ 286,541 $ 306,502 Subsidy 166, ,128 Provincial grant 118, ,997 Registration Miscellaneous 7,035 1, , ,570 Expenditures: Amortization 12,492 8,453 Bad debts - 2,360 Conferences 1, Custodial services 10,170 12,141 Food 19,320 18,330 Administration costs 10,113 9,796 GST, HST and other applicable taxes 1,959 2,608 Learning materials 1,109 2,031 Office supplies Playground supplies Playroom supplies 1,311 1,130 Rent 18,555 18,772 Repairs and maintenance 1,336 2,723 Salaries and benefits 515, ,641 Telephone 2,100 2,140 Transportation , ,201 Excess of expenditures over revenues $ (18,778) $ (19,631) 18

29 Schedule 7 - Schedule of Operations - House of Games For the year ended, April 30, 2012, with comparative figures for Revenues: Rental income $ 13,633 $ 24,012 Expenditures: Occupancy - 4,478 Excess of revenues over expenditures $ 13,633 $ 19,534 19

30 Schedule 8 - Schedule of Operations - Underground Media & Design For the year ended April 30, 2012, with comparative figures for Revenues $ 820,655 $ 660,441 Cost of goods sold: Material purchases 345, ,436 Gross profit 475, ,005 Expenditures: Amortization 8,758 11,61 2 Bad debts 2,567 2,826 GST, HST and other applicable taxes 12,209 5,307 Occupancy and equipment rental - 8,284 Office supplies 6,603 11,770 Repairs and maintenance 657 1,491 Salaries and wages 320, ,595 Telephone 4,130 4, , ,201 Excess of revenues over expenditures $ 119,994 $ 14,804 20

31 Schedule 9 - Schedule of Operations - Union Market For the year ended April 30, 2012, with comparative figures for Revenues: Sales $ 752,164 $ 721,715 Cost of goods sold: Material purchases 448, ,357 Gross profit 303, ,358 Expenditures: Administrative Advertising Amortization Office supplies Repairs and maintenance Salaries and wages Supplies Telephone 6,789 9,997 9,596 1,110 2, , ,513 18,222 7,017 10, ,893 1,684 2, , ,098 Excess of revenues over expenditures $ 94,953 $ 70,260 21

32 Schedule 10 - Schedule of Operations - Campus Events For the year ended April 30, 2012, with comparative figures for Revenues Expenditures Total Revenues Expenditures Total Homecoming $ 23,106 $ 22,688 $ 418 $ - $ 11,197 $ (11,197) Charity ball 34,646 37,459 (2,813) 39,138 40,754 (1,616) MSU Recognition night - 2,119 (2,119) - 16,555 (16,555) External events 114,948 95,291 19,657 98,851 70,500 28,351 Egg Nog - 2,419 (2,419) - 4,035 (4,035) Orientation 121,191 99,659 21,532 87,143 65,097 22,046 Other concerts and programs 67,855 55,337 12,518 49,406 39,511 9,895 Speakers and club programs 18,087 30,297 (12,210) 39,217 15,237 23,980 Travel and administration - 358,516 (358,516) - 331,276 (331,276) Volunteer recognition - 2,396 (2,396) - 1,878 (1,878) Avtek 24,999 15,985 9, $ 404,832 $ 722,166 $ (317,334) $ 313,755 $ 596,040 $ (282,285) 22

33 Schedule 11 - Schedule of Committees and Commissions, MSU Executive and Services Expenses For the year ended April 30, 2012, with comparative figures for Revenues Expenditures Total Revenues Expenditures Total Committees and Commissions: Diversity $ 10,368 $ 26,024 $ (15,656) $ 5,634 $ 24,093 $ (18,459) Educational Affairs Committee Election Committee 1,368 28,284 (26,916) ,728 (27,508) MacGreen 5,127 21,067 (15,940) 23 10,948 (10,925) Finance Committee (92) First Year Council 4,556 6,383 (1,827) 161 1,638 (1,477) FIT/Shinerama 87, ,328 (20,620) 88, ,235 (23,946) SCSN - 28,113 (28,113) - 26,568 (26,568) Public relations/student life 2, ,799 (127,799) - 144,189 (144,189) Teaching awards - 4,741 (4,741) 80 3,568 (3,488) MSU Executive: $ 1 1 1,1 27 $ 352,739 $ (241,612) $ 94,407 $ 351,059 $ (256,652) Administrative - 7,205 (7,205) - 9,152 (9,152) Advertising - 26,153 (26,153) 33,813 36,356 (2,543) Conferences ,660 (8,660) Donations - 6,875 (6,875) - 11,630 (11,630) Executive expense - 6,375 (6,375) - 9,195 (9,195) Honoraria and awards - 25,935 (25,935) - 15,604 (15,604) Manager training - 17,486 (17,486) - 19,962 (19,962) Meetings - 8,529 (8,529) - 4,927 (4,927) Memberships - 103,654 (103,654) - 82,471 (82,471) Miscellaneous 11,020 1,735 9,285 3,957 6,847 (2,890) Special projects - 16,604 (16,604) - 13,956 (13,956) Salaries and benefits - 215,161 (215,161) - 212,814 (212,814) Travel - 28,385 (28,385) - 4,856 (4,856) $ 11,020 $ 464,097 $ (453,077) $ 37,770 $ 436,430 $ (398,660) 23

34 Schedule 11 - Schedule of Committees and Commissions, MSU Executive and Services Expenses (continued) For the year ended April 30, 2012, with comparative figures for 2011 Services expenses: Revenues Expenditures Total Revenues Expenditures Total Almanac $ - $ - $ - $ 74,000 $ 65,596 $ 8,404 Bread Bin 1,806 11,291 (9,485) ,702 (10,061) Central Ad Bureau - 1,852 (1,852) - 2,203 (2,203) CLAY Conference 29,847 41,575 (11,728) 26,011 51,488 (25,477) Clubs administrator 34, ,621 (99,782) 38, ,462 (91,291) Emergency First Response Team 56,542 83,697 (27,155) 37,454 88,749 (51,295) HSR bus pass 12,721-12,721 12,156-12,156 Compass Information Service 2,812,267 2,808,740 3,527 2,803,757 2,862,310 (58,553) Maroons 6,721 25,908 (19,187) 12,404 25,252 (12,848) MacCycle 6,503 23,340 (16,837) 9,098 23,336 (14,238) PAC - 3,074 (3,074) - 3,736 (3,736) QSCC 1,338 11,294 (9,956) 1,633 10,717 (9,084) Horizons 17,160 32,900 (15,740) 25,540 50,310 (24,770) Ombuds office - 67,937 (67,937) - 65,926 (65,926) Student Health Education Centre ,706 (16,227) - 18,912 (18,912) SWHAT 1,045 15,657 (14,612) 65 13,730 (13,665) $ 2,981,268 $ 3,278,592 $ (297,324) $ 3,040,930 $ 3,422,429 $ (381,499) 24

35 Schedule 12 - Schedule of Operations - The Short Stop For the year ended April 30, 2012, with comparative figures for Revenues: Sales $ 4,814 $ 35,827 Cost of goods sold: Material purchases 26,975 Gross profit 4,814 8,852 Expenditures - - Excess of revenues over expenditures $ 4,814 $ 8,852 25

36 Schedule 13 - Schedule of Operations - Undercovers For the year ended April 30, 2012, with comparative figures for Revenues: Sales $ 14,115 $ 41 2 Cost of goods sold: Material purchases Gross profit (loss) 14,115 (349) Expenditures: Amortization 6,535 6,535 Administrative - - Repairs and maintenance 12,218 - Salaries and wages ,753 6,535 Excess of expenditures over revenues $ (4,638) $ (6,884) 26

37 Schedule 14 - Schedule of Operations - Student Health Insurance Plan For the year ended April 30, 2012, with comparative figures for Revenues: Student fees (net of opt-out) $ 1,193,427 $ 901,935 Investment income 27,898 34,895 1,221, ,830 Expenditures: Administration charges 13,277 13,486 Claims 959, ,675 Tax and interest 14,182 12,776 Trustee fees 98,411 95,310 1,085, ,247 Excess of revenues over expenditures (expenditures over revenues) $ 135,986 $ (35,417) 27

38 Schedule 15 - Schedule of Operations - Student Dental Plan For the year ended April 30, 2012, with comparative figures for Revenues: Student fees (net of opt-out) $ 1,836,816 $ 1,372,537 Expenditures: Administration charges 24,156 41,670 Insurance premiums 1,735,751 1,649,377 1,759,907 1,691,047 Excess of revenues over expenses (expenditures over revenues) $ 76,909 $ (318,510) 28