White Kennedy. SOUTH OKANAGAN WOMEN IN NEED SOCIETY Index to Financial Statements Year Ended March 31, Page 1-2

Transcription

1 Index to Financial Statements INDEPENDENT AUDITOR S REPORT FINANCIAL STATEMENTS Statement of Financial Position 3 Statement of Operations 4 Statement of Changes in Net Assets 5 Statement of Cash Flow 6 Notes to Financial Statements 7-14 Schedule of Revenues (Schedule 1) 15 Schedule of Program Revenue and Expenses - Children Who Witness Abuse 16 (Schedule 2~ Schedule of Program Revenue and Expenses - Outreach 17 (Schedule 3) Schedule of Program Revenue and Expenses - SAFE exiting from the Sex Trade (Schedule 4) 18 Page 1-2

2 Your Partners in Prosperity" Chartered Professional Accountants and Business Advisors lan S. Kennedy, CPA, CA Michael P. Doherty, CPA, CA H.Jon Milligan, CPA, CA Chris D. Browne, CPA, CA Jeff CA Marielle J. Br01~, CPA, CA Peter Maclntosh, CPA, CA Darrell Swetlishoff, CPA, CA Aaron Dodsworth, C~A, ca Jodi Hansen, CPA, CA Andrew Nendick, CPA, CA INDEPENDENT AUDITOR S REPORT To the Directors of South Okanagan Women In Need Society We have audited the accompanying financial statements of South Okanagan Women In Need Society, which comprise the statement of financial position as at March 31, 2017 and the statements of operations, changes in net assets and cash flow for the year then ended, and 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 accounting standards for not-for-profit organizations, 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. (continues) PO Box 260, #204, 8309 Main Street Osoyoos, BC V0H tv0 Phone Fax ,3525 osoyoos@whitekennedy.com Operating as Incorporated Professionals through LLP #201,99 Padmore Avenue East Penticton, BC V2A 7H7 Phone ,0600 Fax penticton@whitekennedy.com #1,2429 Dobbin Road West Kelowna, BC V4T 2L4 Phone Fax westkelowna@whitekennedy.com

3 Independent Auditor s Report to the Directors of South Okanagan Women In Need Society (continued) Basis for Qualified Opinion In common with many charitable organizations, South Okanagan Women In Need Society derives revenue from fundraising activities the completeness of which is not susceptible to satisfacton/ audit verification. Accordingly, verification of these revenues was limited to the amounts recorded in the records of South Okanagan Women In Need Society. Therefore, we were not able to determine whether any adjustments might be necessary to fundraising revenue, excess of revenues over expenses, and cash flows from operations, current assets and net assets for both the current and prior year. Qualified Opinion In our opinion, except for the possible effects of the matter described in the Basis for Qualified Opinion paragraph, the financial statements present fairly, in all material respects, the financial position of South Okanagan Women In Need Society as at March 31, 2017 and the results of its operations, changes in net assets and its cash flow for the year then ended in accordance with Canadian accounting standards for not-for-profit organizations. Report on Other Legal and Regulatory requirements As required by the Society Act of British Columbia, we report that, in our opinion, the accounting principles have been applied on a basis consistent with that of the preceding year. Penticton, British Columbia June 21, 2017 CHARTERED PROFESSIONAL ACCOUNTANTS

4 Statement of Financial Position March 31, 2017 ASSETS CURRENT Cash Accounts receivable (Note 5) Prepaid expenses 163,298 $ 209, ,317 33,768 1,832 13, , ,412 PROPERTY AND EQUIPMENT (Note 6) LONG TERM INVESTMENTS (Note 7) 4,138, , $ 4~427,288 $ 1,236,640 LIABILITIES AND NET ASSETS CURRENT Accounts payable and accrued liabilities (Note 8) Callable debt (Note 9) Current portion of obligations under capital lease (Note 10) 207,637 $ 145,050 1,069, ,521 5~554 1,282, ,571 OBLIGATIONS UNDER CAPITAL LEASE (Note 10) DEFERRED CONTRIBUTIONS (Note 11) DEFERRED CONTRIBUTIONS RELATED TO PROPERTY AND EQUIPMENT (Note 12) CONTINGENT LIABILITY (Note 13) 18,290 81,002 83,928 60,700 69,221 2, ,889~ ,720 NET ASSETS Unrestricted Internally restricted Invested in capital assets 410, ,938 41,315 41,315 85,338 (13,333) 537~ ,920 $ 4,427,288 $ 1,236,640 CONTINGENT LIABILITY COMMITMENTS AND CONTRACTUAL OBLIGATIONS (Note 15) ON BEHALF OF THE BOARD Director See notes to financial statements D~ector 3

5 Statement of Operations SCHEDULE OF REVENUES (Schedu/e 1) EXPENSES Salaries and wages Payroll costs and benefits Client supplies and food Amortization Rental Professional fees Interest on callable debt Repairs end maintenance Insurance Utilities Equipment lease and maintenance Staff development and training Printing, photocopying and postage Sub-contracts Vehicle Staff travel and auto reimbursement Telephone Supplies Information technology Fundraising expenses Office and sundry Interest and bank charges Advertising and promotion Property taxes Memberships and dues Library and resource materials Volunteer program expenses Client travel Board expenses $ 1~600,303 $ 1,420, , , , , ,068 99,163 59,829 31,704 44,812 63,381 43,342 20,570 32,959 18,204 32,032 36,732 29,796 10,830 15,733 10,741 13,273 17,562 11,221 5,899 9,777 8,054 8,961 5,934 8,872 2,434 7,951 6,066 7,699 7,248 7,349 5,384 6,354 5,384 5,642 47,279 4,949 3,613 3,688 2,099 3,233 4,380 2,598 1,033 2,576 2,046 2, ,890 2,139 1,705 4,123 1, , ,456,749 DEFICIENCY OF REVENUES OVER EXPENSES FROM OPERATIONS OTHER INCOME Loss on disposal of property and equipment DEFICIENCY OF REVENUE OVER EXPENSES (5,048) (35,867) (3,435) ~8,483) $ ~35,867) See notes to financial statements 4 V

6 Statement of Changes in Net Assets Unrestricted internally Invested in Restricted Capital Assets NET ASSETS - BEGINNING OF YEAR Deficiency of revenue over expenses Purchase of property and equipment Repayment of callable debt Contingent liability (Note 13) 517,938 $ (8,483) (3,222,818) 676,509 2,447,638 41,315 $ (13,333) $ 3,222,818 (676,509) (2,447,638) 545,920 $ (8,483) 581,787 (35,867) NET ASSETS-END OF YEAR $ 410,784 $ 41,315 $ 85,338 $ 537,437 $ 545,920 See notes to financial statements 5 Whi~e F~ennedy ~

7 Statement of Cash Flow OPERATING ACTIVITIES Deficiency of trade sales over expenses Items not affecting cash: Amortization of property and equipment Loss on disposal of property and equipment (8,483) $ (35,867) 59,829 31, (4,163) Changes in non-cash working capital: Accounts receivable Accounts payable and accrued liabilities Prepaid expenses Deferred contributions (89,949) (6,876) 62,588 16,900 11,293 8,529 (2,926) (7,540) (18,594) 11,013 Cash flow from operating activities INVESTING ACTIVITIES Purchase of property and equipment Proceeds on disposal of property and equipment Amortization of deferred contributions related to property and equipment Contingent liability Cash flow used by investing activities FINANCING ACTIVITIES Proceeds from long term financing Repayment of long term debt Obligation under capital lease Repayment of obligations under capital lease Cash flew from (used by) financing activities DECREASE IN CASH FLOW Cash - beginning of year CASH - END OF YEAR 36~187 6,850 (3,222,818) (2,371) 940 (8,521) (5,817) 2, (782,761) (8,188) 1,079,906 (403,397) (21,576) 24,700 (856) 700,353 (21,576) (46,221) (22,914) , ,298 $ 209,519 See notes to financial statements 6 ~

8 Notes to Financial Statements 1. BASIS OF PRESENTATION The financial statements were prepared in accordance with Canadian accounting standards for notfor-profit organizations (ASNPO). 2. PURPOSE OF THE SOCIETY South Okanagan Women In Need Society (the "Society") is a not-for-profit organization incorporated provincially under the Society Act of British Columbia. As a registered charibj, the Society is exemgt from the payment of income tax under Section 149(1 ) of the Income Tax Act. The Society works to prevent abuse and increase awareness about the impacts of abuse within the South Okanagan so that all individuals have the ability to make choices to live a safe and healthy life. Through creating dynamic, life-changing opportunities for empowerment of individuals and families, the Society supports individual s physical, mental, emotional and financial wellness. The purpose of the Society is to provide transitional housing, counselling, support, information and education to women and children who have experienced abuse in their primary relationships, criminal harassment, sexual assault or other crisis situations, As well, the Society seeks to provide safe, affordable housing and to promote awareness of and to work to eradicate violence against women and children in the South Okanagan. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The financial statements were prepared in accordance with ASNPO and, in management s opinion, with consideration of materiality and within the framework of the following accounting policies: Cash and short term investments Cash and cash equivalents consist primarily of commercial paper and deposits with an original maturity date of purchase of three months or less. Because of the short term maturity of these investments, their carrying amount approximates fair value. Financial instruments policy Financial instruments are recorded at fair value when acquired or issued. Financial instruments are reported at amortized cost, and tested for impairment at each reporting date. Transaction costs on the acquisition, sale, or issue of financial instruments are expensed when incurred. Goods and Services Tax Contributed materials and services are recoverable at 50% as a rebate. The unrecoverable portion is recorded as an expense with the rebate treated as a receivable. (continues)

9 Notes to Financial Statements 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Property and equipment Property and equipment is stated at cost less accumulated amortization. Property and equipment is amortized over its estimated useful life at the following rates and methods: Buildings Furniture and fixtures Equipment Computer equipment Motor vehicles Computer software Leasehold improvements Motor vehicle under lease 4% declining balance method 20% declining balance method 20% declining balance method 30% declining balance method 30% declining balance method 100% declining balance method 33% straight-line method 10% straight-line method In the year of acquisition, a full year of amortization is taken, and no amortization is taken in the year of disposition. Amortization expense is reported in the capital asset fund. Property and equipment are reviewed for impairment whenever events or changes in the circumstances indicate that the carrying value may not be recoverable. If the total of the estimated undiscounted future cash flows is less than the carrying value ef the asset, an impairment loss is recognized for the excess of the carrying value over the fair value of the asset during the year the impairment occurs. Property and equipment acquired during the year but not placed into use are not amortized until they are placed into use. Net assets Net assets invested in property and equipment represents the Society s net investment in property and equipment which is comprised of the unamortized amount of property and equipment purchased with restricted funds. The fund reports the assets, liabilities, revenues, and expenses related to the Society s capital assets and building improvements campaign. Internally restricted net assets are funds which have been designated for a specific purpose by the Society s Board of Directors. These are funds typically allocated for contingencies such as major repairs to property or unplanned delays in funding. Unrestricted net assets comprise the excess of revenue over expenses accumulated by the Society each year, net of transfers, and are available for general purposes typically related to program delivery and administrative activities. Revenue recoqnition The Society 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. Contributed materials and services are recorded in the financial statements when the fair value of those materials and services can be reasonably estimated. Seminar fees are recognized as revenue when the seminars are held. (continues) V

10 Notes to Financial Statements 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Allocation of administration The Society manages various programs. The Society identifies and allocates a portion of the administration costs to the management of these programs, on an established basis. The program management expenses are then allocated to the various projects consistently based on an established percentage or rate. Use of estimates When preparing financial statements in accordance with ASNPO, management is required to make estimates and assumptions relating to the: Reported amounts of revenue arid expenses for the year; Reported amounts of assets and liabilities for the year; and Disclosure of contingent liabilities at the report date. These assumptions are based on a number of factors, including historical experience, current events and actions that the Society may undertake in the future, and other assumptions believed reasonable under the circumstances. Management periodically reviews these estimates and, accordingly, adjustments are made to these estimates are taken into income in the year in which they are determined. Such estimates include property and equipment useful lives and amortization rates, and wage accruals. These estimates are subject to measurement uncertainty, and actual results may therefore differ from those estimates. V

11 Notes to Financial Statements 4. FINANCIAL INSTRUMENTS The society is exposed to various risks through its financial instruments and has a comprehensive risk management framework to monitor, evaluate and manage these risks. The following analysis provides information about the society s risk exposure and concentration as of March 31,2017. (a) Liquidity risk Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities. The Society is exposed to this risk mainly in respect of its receipt of funds from sources, long-term debt, obligations under capital leases, and accounts payable. (b) Interest rate risk Interest rate risk is the risk that the value of a financial instrument might be adversely affected by a change in the interest rates. In seeking to minimize the risks from interest rate fluctuations, the society manages exposure through its normal operating and financing activities. The society is exposed to interest rate risk primarily through its floating interest rate bank indebtedness and credit facilities. Unless otherwise noted, it is management s opinion that the Society is not exposed to significant other price risks arising from these financial instruments. 5. ACCOUNTS RECEIVABLE Accounts receivable GST receivable $ 114,709 $ 22,116 8,608 11,652 $ 123,317 $ 33, PROPERTY AND EQUIPMENT Cost Accumulated Net book Net book amortization value value Land Buildings Furniture and fixtures Motor vehicle under capital lease (Note 10) Equipment Computer equipment Motor vehicles Computer software 1,242,702 $ $ 1,242,702 $ 355,633 3,063, ,863 2,830, ,871 70,564 34,904 35,660 17,700 24, ,082 22,017 18,085 3,932 4,915 28,641 27,190 1,451 2,073 35,115 34, ,513 7,513 $ 4,495,239 $ 356,948 $ 4,138,291 $ 979,678 lo V

12 Notes to Financial Statements 7. LONG TERM INVESTMENTS United Community Services Co-op $ 550 $ ACCOUNTS PAYABLE AND ACCRUED LIABILITIES Wages payable Employee deductions payable Accounts payable and accruals WCB payable 66,302 $ 93,489 37,708 28,363 98,120 20, , ,637 $ 145, CALLABLE DEBT Bank of Montreal 2016 demand loan bearing interest at 4.45% per annum, repayable in monthly blended payments of $6,854. The loan matures on August 28, 2036 and is secured by a general security agreement. Bank of Montreal demand loan bearing interest at 4.5% per annum, repayable in monthly blended payments of $3,315. This loan was repaid in the year. Amounts payable within one year $ 1,069,030 $ 1,069,030 (35,476) $ 1,033,554 $ 392, ,521 (22,579) 369,942 Principal repayment terms are approximately: Thereafter $ 35,476 37,087 38,772 40,533 42, ,788 ~; 1~069~030

13 Notes to Financial Statements 10. OBLIGATIONS UNDER CAPITAL LEASE First West Leasing lease bearing interest at 4.455% per annum, repayable in monthly blended payments of $214. The lease matures on December 27, 2021 and is secured by the vehicle under lease which has a carrying value of $24,082. Amounts payable within one year ,844 $ 23,844 (5,554) 18,290 $ 2016 Future minimum capital lease payments are approximately: Total minimum lease payments Less: amount representing interest at various rates Present value of minimum lease payments Less: current portion $ 5,554 5,554 5,554 5,554 4,270 26,486 (2,642) 23,844 (5,554) DEFERRED CONTRIBUTIONS Deferred contributions represent externally restricted funds for the programs of the Society. Changes to the deferred contributions are as follows: Beginning balance Less amounts recognized as revenue in the year Add amounts received for the following year 83,928 $ 91,468 (83,928) (90,580) ,040 81,002 $ 83,928 (continues) 12 V

14 Notes to Financial Statements 11. DEFERRED CONTRIBUTIONS (continued). Represented by: BC Housing - Transition House BC Housing - Homelessness Prevention Program BC Community Gaming Grant - We Project United Way Grant - Receptionist BC Housing - Safe Homes 73,292 $ 69,569 7,710 7,417 3,384 2, ,002 $ 83, DEFERRED CONTRIBUTIONS RELATED TO PROPERTY AND EQUIPMENT Deferred contributions related to property and equipment represent restricted contributions used to purchase capital assets. The changes to the deferred contributions are as follows: Beginning balance Less amounts amortized to revenue Less amounts related to disposal of property and equipment 69,221 $ 75,038 (4,146) (5,817) (4,375) 60,700 $ 69,221 These contributions are recognized into revenue at the same rate in which the property and equipment is being amortized. 13. CONTINGENT LIABILITY During the year, the Society received funding from BC Housing for the purchase and renovation of a new transition house. /ks part of the funding agreement, the Society will receive up to $3.0 million based on the final costs of the property and renovations which are currently in progress. BC Housing will provide this funding as a forgivable mortgage which will be amortized to revenues over 35 years with forgiveness beginning in year REMUNERATION Under the new Societies Act, the Society is required to disclose any remuneration to directors as well as remuneration to employees and contracts over $75,000. During the year, only one contractor received remuneration with respect to the renovations on the new administration office in excess of the reporting threshold totalling $217,874. A Whi~e Kennedy 13 V

15 Notes to Financial Statements 15. COMMITMENTS AND CONTRACTUAL OBLIGATIONS The Society has operating leases for equipment as well as commitments for consulting services. See note 10 for obligations in relation to the capital lease $ 75, , , , ,855 $ 307, COMMUNITY FOUNDATION OF THE SOUTH OKANAGAN The Society has an endowment fund with Community Foundation of the South Okanagan. 3"he capital of the fund, and any additions thereto, shall be held permanently by the Foundation and invested in accordance with the provisions of the constitution, bylaws and policies of the Foundation. Distributions of $1,292 were received in the current year ( $5,792). 17. ALLOCATION OF ADMINISTRATION Administration charges of $416,542 ( $303,696) for the management of various programs have been included in salaries and wages expense and other genera~ expenses. These administration charges have been allocated to the various programs as follows: 20t Transition House Safe Homes Employment Services SAFE exiting from the Sex Trade Children Who Witness Abuse Community Outreach Homelessness Prevention Program Youth Bed We Project Fundraising $ 235,079 $ 180,132 45,549 34,357 38,485 23,345 29,152 27,890 20,215 14,579 12,055 11,863 15,185 9,780 4,165 6,074 12,333 $ 416,542 $ 303, SUBSIDY ASSISTANCE PAYMENTS The Society received subsidy assistance from BC Housing on behalf of the Provincial Government to assist with the Safe Homes, Transition House and rental supplements for the Homeless Prevention Program. The amount of the assistance recorded for the year was $972,912 ( $934,830) 19. COMPARATIVE FIGURES Some of the comparative figures have been reclassified to conform to the current year s presentation. A 14 V

16 Schedule of Revenues (Schedule 1) CONTRACTS BC Housing Province of British Columbia - Ministry of Justice YMCA-YVVCA Government of Canada - Minister of Public Safety and Emergency Preparedness Province of British Columbia - Ministry of Children and Family Development Open Door Society 972,912 $ 934, , , , ,817 56,738 27,894 15,969 22,047 11,055 $ 1,310,087 $ 1,190,651 GRANTS Community Gaming Grant BC Society of Transition Houses $ 58,617 $ 26,735 1,500 $ 58,617 $ 28,235 FUNDRAISING $ 31,430 $ 41,050 DONATIONS Cash donations Gifts in kind $ 173,251 $ 144,853 1,127 13,055 $ 174,378 $ 157,908 OTHER Membership and miscellaneous Reimbursement of wages from union Interest and investment income $ 25,791 $ 2, $ 25,791 $ 3,038 GRAND TOTAL $ 1,600,303 $ 1,420,862 See notes to financial statements 15 A ~

17 Schedule of Program Revenue and Expenses - Children Who Witness Abuse (Schedule 2) REVENUE Province of British Columbia - Ministry of Justice Cash donations BC Society of Transition Houses 84,810 $ 82,750 50O 1,500 85~310 84,250 EXPENSES Salaries and wages Payroll costs and benefits Professional fees Amortization Rental Client supplies and food Interest on ~ong term debt Travel Equipment rentals Insurance Information technology Repairs and maintenance Printing, photocopying and postage Staff development and training Office Telephone Interest and bank charges Utilities Supplies Memberships and dues Board expenses Volunteer program expenses Contracted facilities support Advertising and promotion Library and resource materials 68,113 57,393 22,648 16,253 5,499 1,298 3, ,961 7,763 2, ,883 1, , ,368 89,377 LOSS FROM OPERATIONS {28,058) $ /5,127) See notes to financial statements 16 ~ A White ~kennedy

18 Schedule of Program Revenue and Expenses - Outreach (Schedule 3) REVENUE Province of British Columbia - Ministry of Justice EXPENSES Sataries and wages Payroll costs and benefits Amortization Rental Interest on long term debt Professional fees Equipment rentals Travel Insurance Staff development and training Telephone Information technology Repairs and maintenance Client supplies and food Printing, photocopying and postage Supplies Office Interest and bank charges Utilities Memberships and dues Board expenses Volunteer program expenses Contracted facilities support Advertising and promotion Library and resource materials 41,232 $ 40,230 34,805 27,802 7,937 4,579 2, ,596 6, ,000 42,931 LOSS FROM OPERATIONS 110,768) $ 12,701/ See notes to financial statements 17 ~

19 Schedule of Program Revenue and Expenses - SAFE exiting from the Sex Trade (Schedule 4) Year Ended March 3t, 2017 REVENUE GovernmentofCanada- Minist@ of Public Sa~tyand Emergency Preparedness $ 56,738 $ EXPENSES Salaries and wages Professional fees 27,209 14,928 Amortization 13,761 Payroll costs and benefits 8,205 Client supplies and food 3,386 Travel Interest on long term debt 2,576 2,444 Insurance Supplies 2,362 2,203 Staff development and training Repairs and maintenance 1, Equipment rentals 689 Rental 584 Utitities 525 Telephone 506 Printing, photocopying and postage 409 Information technology 312 Office 282 Memberships and dues 115 Volunteer program expenses 61 Interest and bank charges 52 Board expenses 15 Library and resource materials 10 Advertising and promotion 4 83~481 LOSS FROM OPERATIONS $ {26,7431 $ See notes to financial statements 18 V