CHARTERED PROFESSIONALS IN HUMAN RESOURCES OF SASKATCHEWAN CORPORATION

Transcription

1 RESOURCES OF SASKATCHEWAN CORPORATION Financial Statements

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3 INDEPENDENT AUDITOR'S REPORT To the Members of Chartered Professionals in Human Resources of Saskatchewan Corporation We have audited the accompanying financial statements of Chartered Professionals in Human Resources of Saskatchewan Corporation,, which comprise the statement of financial position as at June 30, 2018 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 audit opinion. (continues) 2

4 Independent Auditor's Report to the Members of Chartered Professionals in Human Resources of Saskatchewan Corporation (continued) Opinion In our opinion, the financial statements present fairly, in all material respects, the financial position of Chartered Professionals in Human Resources of Saskatchewan Corporation, (Operating as CPHR Saskatchewan), as at June 30, 2018 and the results of its operations and its cash flow for the year then ended in accordance with Canadian accounting standards for not-for-profit organizations. Chartered Professional Accountants Regina, Saskatchewan September 7, 2018 MWC Chartered Professional Accountants LLP 3

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6 Statement of Operations REVENUES Dues $ 382,313 $ 349,284 Provincial conference registrations, fees and sponsorships 166, ,417 Advertising sales 81,150 87,073 Program fees 45,561 34,600 CPHR designation fees (exam, validation of experience and continuing professional development) 35,410 53,115 Donations 12,826 - Interest 6,347 7,173 Commissions 5,756 7,868 Other 1,122 4, , ,264 EXPENSES Wages and benefits 228, ,766 Provincial conference and programming 150, ,585 Professional fees 61,839 21,130 Advertising and promotion 60,118 13,897 CPHR Canada dues 45,716 52,578 Office 33,135 32,442 Rent 31,544 26,700 Public relations 27,808 12,305 Travel 19,147 19,186 Bank and credit card charges 18,333 18,388 Exams 9,985 17,660 CPHR Canada meetings 8,621 6,707 Website maintenance 5,954 9,091 Scholarship and academic support 5,550 3,500 Insurance 3,678 4,724 Amortization of capital assets 3,335 3,761 CPHR certificates 1,918 1,962 Volunteer and presenter recognition , ,602 EXCESS OF REVENUES (EXPENSES) $ 21,202 $ 15,662 See notes to financial statements MWC Chartered Professional Accountants LLP 5

7 Statement of Changes in Net Assets NET ASSETS - BEGINNING OF YEAR $ 517,011 $ 501,349 EXCESS OF REVENUE (EXPENSES) 21,202 15,662 NET ASSETS - END OF YEAR $ 538,213 $ 517,011 See notes to financial statements MWC Chartered Professional Accountants LLP 6

8 Statement of Cash Flow OPERATING ACTIVITIES Excess of revenues over expenses $ 21,202 $ 15,662 Item not affecting cash: Amortization of capital assets 3,335 3,761 24,537 19,423 Changes in non-cash working capital: Accounts receivable (5,426) (1,017) Accounts payable 13,827 (12,715) Prepaid expenses (11,137) 8,712 Goods and services tax payable (3,353) 3,775 Member and other prepayments (20,553) 70,305 (26,642) 69,060 Cash flow from (used by) operating activities (2,105) 88,483 INVESTING ACTIVITIES Purchase of capital assets (3,921) (12,496) Purchase of intangible assets (4,516) - Cash flow used by investing activities (8,437) (12,496) INCREASE (DECREASE) IN CASH FLOW (10,542) 75,987 CASH - BEGINNING OF YEAR 837, ,573 CASH - END OF YEAR $ 827,018 $ 837,560 CASH CONSISTS OF: Cash $ 438,380 $ 454,751 Short term investments 388, ,809 $ 827,018 $ 837,560 See notes to financial statements MWC Chartered Professional Accountants LLP 7

9 Notes to Financial Statements 1. DESCRIPTION OF OPERATIONS The Chartered Professionals in Human Resources of Saskatchewan Corporation (the "Association") was incorporated under the Non-profit Corporations Act, 1995 of the Province of Saskatchewan in June of Its mission is to promote and encourage leadership and expertise within human resource practitioners in all functional areas of human resource management through provincial networks and development opportunities while supporting professional standards to influence organizational excellence. The Association is exempt from income tax under Section 149 of the Income Tax Act. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of presentation The financial statements were prepared in accordance with Canadian accounting standards for notfor-profit organizations (ASNFPO). Revenue recognition The Association follows the deferral method of accounting. Revenue from dues are recognized in the membership period to which they relate. Revenue from program and exam fees, sponsorships and advertising are recognized when the related service is provided or in the period the event occurs. Interest, commissions and other revenue are recognized when earned. Capital assets Capital assets are stated at cost less accumulated amortization and are amortized over their estimated useful lives at the following rates and methods. A full year of amortization is taken in the year of acquisition. Computer equipment 30% declining balance method Furniture and fixtures 20% declining balance method Intangible assets Software is amortized on a straight-line basis over their estimated useful lives of five years. As these are not in use at year end they have not begun amortization. Volunteer services The Association benefits from the volunteer efforts of many of its members. Due to the difficulty of measuring the value of these efforts the services are not included in the financial statements. (continues) MWC Chartered Professional Accountants LLP 8

10 Notes to Financial Statements 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Financial instruments policy Financial instruments are recorded at fair value when acquired or issued. In subsequent periods, financial assets with actively traded markets are reported at fair value, with any unrealized gains and losses reported in income. All other 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. Financial assets including cash, short term investments and accounts receivable are reported at amortized cost. Financial liabilities including accounts payable and accrued liabilities are measured at amortized cost. 3. SHORT TERM INVESTMENTS Cash $ 280,868 $ 2,263 Fixed income securities 107, ,546 $ 388,638 $ 382,809 The fixed income security includes a guaranteed investment certificate which earns interest at 2.10% and has a maturity date of July The prior year's securities matured in November 2017 and April 2018 and earned interest at 2.20% and 1.65% respectively. 4. CAPITAL ASSETS Cost Accumulated Net book Net book amortization value value Computer equipment $ 11,851 $ 5,803 $ 6,048 $ 7,908 Furniture and fixtures 5,146 1,212 3,934 1,488 $ 16,997 $ 7,015 $ 9,982 $ 9,396 MWC Chartered Professional Accountants LLP 9

11 Notes to Financial Statements 5. INTANGIBLE ASSETS Software $ 4,516 $ 65,450 Accumulated amortization - (65,450) $ 4,516 $ - The Association is currently adding a module to their online database, which was not completed or in use at year end and therefore was not amortized 6. MEMBER AND OTHER PREPAYMENTS Deferred revenue consists of membership fees paid for the year, conference fees, exam fees, and tradeshow fees. 7. COMMITMENTS The Association has two leases with respect to its premises. The first lease is a 30 month lease which expires September 30, 2018 and the second lease is a 63 month lease which expires February 28, The leases provides for payment of utilities, property taxes and maintenance costs. The Association has contracted a service provider to add a module to their database which is expected to be completed in the 2019 fiscal year. Future minimum lease payments as at June 30, 2018, are as follows: Office 1 Office 2 Database Total 2019 $ 5,625 $ 9,396 $ 2,364 $ 17, ,628-9, ,092-10, ,208-10, ,960-6,960 $ 5,625 $ 46,284 $ 2,364 $ 54,273 MWC Chartered Professional Accountants LLP 10

12 Notes to Financial Statements 8. FINANCIAL INSTRUMENTS The Association is exposed to various risks through its financial instruments and management is responsible to monitor, evaluate and manage these risks. The following analysis provides information about the Association's risk exposure and concentration as of June 30, Credit risk Credit risk arises from the potential that a counter party will fail to perform its obligations. The Association is exposed to credit risk from members. The Association has a significant number of members which minimizes concentration of credit risk. In addition, most of the member fees are paid for by the member's employer and the likelihood of default is considered small. The risk is considered to be low. Liquidity risk Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities. Liquidity risk also includes the risk of the Association not being able to liquidate assets in a timely manner at a reasonable price. The Association is exposed to this risk mainly in respect of its receipt of funds from its members, accounts payable, and accrued liabilities. The Association holds assets that can be readily converted into cash; therefore, risk is considered low. 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. The Association's risk to interest rate fluctuations is largely related to its short term investments and credit facilities. As a consequence, the Association has a portfolio that limits exposure to changes in market interest rates and the credit usage is not significant; therefore, risk is considered low. Unless otherwise noted, it is management s opinion that the Association is not exposed to significant other price risks arising from these financial instruments. MWC Chartered Professional Accountants LLP 11