Financial statements. Community Foundation of Whistler. December 31, 2012

Transcription

1 Financial statements Community Foundation of Whistler December 31, 2012

2 Contents Page Independent auditor s report 1-2 Statements of financial position 3 Statements of operations 4 Statements of changes in net assets 5 Statements of cash flows 6 Notes to the financial statements 7-11

3 Independent auditor s report Grant Thornton LLP Suite 1600, Grant Thornton Place 333 Seymour Street Vancouver, BC V6B 0A4 T (604) F (604) To the Board of Directors of Community Foundation of Whistler We have audited the accompanying financial statements of the Community Foundation of Whistler which comprise the statements of financial position as at December 31, 2012, December 31, 2011 and January 1, 2011, the statements of operations, changes in net assets and cash flows for the years ended December 31, 2012 and December 31, 2011, 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 audits. We conducted our audits 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 Foundation 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 Foundation 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. Audit Tax Advisory Grant Thornton LLP. A Canadian Member of Grant Thornton International Ltd 1

4 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 As is common with many not-for-profit organizations, the Foundation derives revenue from donations from the public, 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 Foundation and we were not able to determine whether any adjustments might be necessary to donation revenues, excess of revenues over expenses, assets and net assets. 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 the Community Foundation of Whistler as at December 31, 2012, December 31, 2011 and January 1, 2011, and the results of its operations and its cash flows for the years ended December 31, 2012 and December 31, 2011 in accordance with Canadian accounting standards for not-for-profit organizations. Vancouver, Canada April 18, 2013 Chartered accountants 2

5 Statements of financial position December 31 December 31 January (Note 3) Assets Cash and cash equivalents $ 26,085 $ 54,228 $ 45,622 Receivables 11,351 4, Investments (Note 4) 4,114,565 3,754,308 3,627,291 $ 4,152,001 $ 3,813,194 $ 3,673,787 Liabilities Accounts payable and accrued liabilities $ 12,114 $ 11,020 $ 11,816 Grants payable 63, ,289 24,926 Deferred contribution 1,405 1,405 1,405 77, ,714 38,147 Net assets Endowment funds (Note 5) 4,024,736 3,657,937 3,613,547 Restricted flow through funds 11,793 11,084 7,917 Unrestricted 38,035 26,459 14,176 4,074,564 3,695,480 3,635,640 $ 4,152,001 $ 3,813,194 $ 3,673,787 On behalf of the board Director Director See accompanying notes to the financial statements. 3

6 Statements of operations Year ended December Revenues Donations $ 123,853 $ 206,912 Interest and dividends 120, ,410 Gain (loss) on investments 320,586 (43,660) 565, ,662 Expenses Grants 103, ,893 Administration 82,360 88, , ,822 Excess of revenues over expenses $ 379,084 $ 59,840 See accompanying notes to the financial statements. 4

7 Statements of changes in net assets Year ended December 31, 2012 Flow Endowment through funds funds Unrestricted Total (Note 5) Fund balances, January 1, 2011 $ 3,613,547 $ 7,917 $ 14,176 $ 3,635,640 Allocation of revenues and expenses Donation revenue 186,154 7,018 13, ,912 Investment income 72, ,750 Grants (115,739) (3,650) (12,504) (131,893) Administration (98,880) (201) 10,152 (88,929) Excess of revenues over expenses 44,390 3,167 12,283 59,840 Fund balances, December 31, ,657,937 11,084 26,459 3,695,480 Allocation of revenues and expenses Donation revenue 104,217 6,902 12, ,853 Investment income 437,126 3, ,342 Grants (84,982) (9,780) (8,989) (103,751) Administration (89,562) (152) 7,354 (82,360) Excess of revenues over expenses 366, , ,084 Fund balances, December 31, 2012 $ 4,024,736 $ 11,793 $ 38,035 $ 4,074,564 See accompanying notes to the financial statements. 5

8 Statements of cash flows Year ended December Cash derived from (used in) Operating Excess of revenues over expenses $ 379,084 $ 59,840 Unrealized (gain) loss on investments (262,077) 86,720 Change in non-cash operating working capital Receivables (6,693) (3,784) Accounts payable and accrued liabilities 1,094 (796) Grants payable (41,371) 80,363 70, ,343 Investing Purchase of investments (98,180) (213,737) (Decrease) increase in cash (28,143) 8,606 Cash and cash equivalents, beginning of year 54,228 45,622 Cash and cash equivalents, end of year $ 26,085 $ 54,228 See accompanying notes to the financial statements. 6

9 Notes to the financial statements December 31, Nature of operations The Community Foundation of Whistler ( Foundation ) was created to improve the quality of life by distributing donations, and the earnings from a permanent growing endowment of funds, to charitable organizations. The Foundation is a registered charity, designated as a public foundation, under the Income Tax Act ( ITA ). 2. Summary of significant accounting policies Basis of presentation These financial statements have been prepared in accordance with Canadian accounting standards for not-for-profit organizations. Use of estimates In conformity with Canadian accounting standards for not-for-profit organizations, management is required to make estimates and assumptions that could 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 expense during the year. Actual results could differ from those reported. Cash and cash equivalents Cash and cash equivalents include cash on hand, cash in banks and short-term notes with maturities of three months or less. Financial instruments The Foundation initially measures its financial assets and financial liabilities at fair value. The Foundation subsequently measures all of its financial assets and financial liabilities at amortized cost, except for investments, which are measured at fair value. Changes in fair value are recognized in the statement of operations. Revenue recognition The Foundation follows the restricted fund method of accounting for contributions. Restricted revenues and expenses of specific funds are recorded as increases or decreases to the respective funds only. Unrestricted contributions are recorded when received or receivable if the amount to be received can be reasonably estimated and collection is reasonably assured. Deferred contributions consist of amounts received in the current year for future periods. Donated goods and services The Foundation does not recognize donated goods and services in-kind in these financial statements. 7

10 Notes to the financial statements December 31, Summary of significant accounting policies (continued) Grants Grants are recorded when the grant has been approved by the board and the amount payable can be reasonably estimated and payments reasonably assured. Grant payments are conditional on the recipient meeting certain criteria and providing supporting information. Grants are paid 50% on approval, 40% on substantial completion and 10% on submission of a final report. Foreign currency translation The Foundation translates investments held in foreign currencies into the reporting currency at the exchange rate in effect at the balance sheet date. Gains and losses arising from the translations are included in the unrealized gain (loss) on investments. 3. First-time adoption of accounting standards for not-for-profit organizations These are the Foundation s first financial statements prepared in accordance with Canadian accounting standards for not-for-profit organizations. The date of transition to these standards is January 1, These financial statements have been prepared using policies specified by those standards that are in effect at the end of the reporting period ended December 31, The significant accounting policies that have been applied in the presentation of these financial statements are summarized in Note 2. These significant accounting policies have been applied throughout all periods presented in these financial statements. The Foundation has also applied The Canadian Institute of Chartered Accountants Handbook Section 1501 First-time Adoption in preparing these financial statements. The Foundation has applied all of the mandatory exceptions and has not applied any of the optional exemptions. The Foundation s transition from Canadian generally accepted accounting principles to Canadian accounting standards for not-for-profit organizations had no impact to the Foundation s statements of financial position as at January 1, 2011, or the statements of operations, changes in net assets or cash flows for the year ended December 31, Investments December 31 December 31 January Cash and bonds $ 1,550,854 $ 1,306,598 $ 1,189,723 Canadian equities, funds and trusts 1,712,420 1,714,921 1,694,337 Foreign equities and funds 831, , ,051 Other 19,726 18,925 19,180 $ 4,114,565 $ 3,754,308 $ 3,627,291 Other investments consist of the cash surrender value of life insurance policies. All the portfolio investments of the Foundation except for the life insurance policies are managed by an investment manager. It is the intention of the Foundation to maintain these funds as a permanent endowment to support each specific fund. 8

11 Notes to the financial statements December 31, Endowment funds Ending Investment Contributed Opening and other Closing principal balance Donations income Grants Administration balance American Friends of Whistler Fund $ 5,121 $ 5,537 $ - $ 641 $ 250 $ 115 $ 5,813 Arts & Culture Legacy Fund 198, ,998-24,240 4,000 4, ,944 AWARE Environmental Fund 5,247 5, ,870 Community Fund 55,653 51,598 5,593 5, ,101 61,511 Emergency Fund 9,009 11, , ,622 Environmental Legacy Fund 2,405,705 2,543, ,823 62,431 54,435 2,730,408 Jill Ackhurst Social Action Fund 62,265 66,153-7,835 2,000 1,386 70,602 Kathy Barnett Memorial Fund 102,298 84,958 35,675 11,441 4,751 12, ,228 Marlene Siemens Callanish Society 8,300 8, ,280 Michael Sparks Fund 25,178 18,925 1, ,972 19,726 Operating Endowment Fund 29,474 30,902 1,303 3, ,196 Pemberton Community Fund 13,284 14, , ,922 Pemberton Community Endowment Fund 2 47,304 27,293 20,000 3, ,442 Sarah McSeveney Scholarship Fund 11,270 10,911-1, ,969 Squamish Employee Fund 4,317 5, ,547 Wendy Thompson Scholarship Fund 136, ,146-17,282 2,000 3, ,365 Whistler Adaptive Sports Endowment 22,454 22,460-2, ,008 Whistler and Pemberton Big Brothers /Big Sisters Fund 5,100 5, ,778 Whistler Animals Galore Fund 5,510 5, ,169 Whistler Blackcomb Foundation Fund 2,000 2, ,324 Whistler Employee Fund 5,668 5, ,043 Whistler Museum & Archives Society Fund 7,660 7, ,579 Whistler Public Library Fund 5,000 5, ,548 Whistler Scholarship Society Fund 57,787 57,129-6,731-1,192 62,668 Whistler Search and Rescue Fund 319, ,138 37,972 35,814 7,000 6, ,700 Whistler Youth Fund 10,000 10, , ,211 Zero Ceiling Society Fund 5,550 5, ,263 $ 3,565,618 $ 3,657,937 $ 104,217 $ 437,126 $ 84,982 $ 89,562 $ 4,024,736 9

12 Notes to the financial statements December 31, Funds with the Vancouver Foundation The Foundation has established a permanent, non-revocable, endowment fund with the Vancouver Foundation. The fund is owned and administrated by the Vancouver Foundation and, accordingly, as the capital of the fund is not available for use by the Foundation, the fund balance is not included in the Foundation s statement of financial position. Income of the endowment fund shall be credited to the Whistler Blackcomb Flow Through fund and will be used for the purposes established for that fund. The market value of the fund is estimated at $99,262 (2011: $96,363). 7. Financial instruments Fair values The Foundation s financial instruments include cash and cash equivalents, receivables, investments, accounts payable and accrued liabilities and grants payable. The carrying amounts of financial assets measured at amortized cost are $37,436 as at December 31, 2012 (December 31, 2011: $58,886; January 1, 2011: $46,496). The carrying amounts of financial assets measured at fair value are $4,114,565 as at December 31, 2012 (December 31, 2011: $3,754,308; January 1, 2011: $3,627,291). The carrying amounts of financial liabilities measured at amortized cost are $76,032 as at December 31, 2012 (December 31, 2011: $116,309; January 1, 2011: $36,742). a Market risk Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. The Foundation is exposed to foreign exchange, interest rate, equity price, and other price risks on its long-term investments. i Foreign exchange risk Foreign currency exposure arises from the Foundation s holdings of foreign currency denominated investments. Fluctuations in the relative value of those currencies against the Canadian dollar can result in a positive or negative effect on the fair value of investments. As at December 31, 2012, the Foundation s maximum exposure to currency risk is $841,207 (December 31, 2011: $236,767). ii Interest rate risk Interest rate risk refers to the effect on the market value of the Foundation s assets and liabilities due to fluctuations in interest rates. The values of the Foundation s assets are affected by short-term changes in nominal and real interest rates. iii Equity price risk Equity price risk is the risk that the fair value or future cash flows of financial instruments will fluctuate due to changes in market prices. The Foundation is exposed to equity price risk on its investments in Canadian and international equities. 10

13 Notes to the financial statements December 31, Financial instruments (continued) a Market risk (continued) iv Other price risk Other price risk is the risk that the fair value or future cash flows of financial instruments will fluctuate because of changes in market prices, other than those arising from foreign exchange rates, interest rates and equity price risks. All investments represent a risk of loss of capital. Investments held in the Foundation are susceptible to other price risk arising from uncertainties about future prices of the investments. The maximum risk resulting from the investments is determined by the fair value of their total long-term investments. The Foundation manages these market risks by maintaining a certain asset mix within certain parameters, investing in various funds, and limiting the percentage ownership in individual issuers. b Liquidity risk Liquidity risk is the risk that the Foundation cannot meet a demand for cash or fund its obligations as they come due. Liquidity risk is managed by investing the majority of the Foundation s assets in investments that are traded in an active market and can be readily liquidated. In addition, the Foundation aims to retain sufficient cash positions to maintain liquidity. 11

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