Financial Statements. The Conservation Foundation of Greater Toronto. December 31, 2007

Transcription

1 Financial Statements December 31, 2007

2 Contents Page Auditors Report 1 Statement of Revenue and Expenditures and Fund Balances 2 Statement of Financial Position 3 Notes to the Financial Statements 4-6

3 Auditors report Grant Thornton LLP Suite Allstate Parkway Markham, ON L3R 5B4 T (416) F (905) To the Members of We have audited the statement of financial position of The Conservation Foundation of Greater Toronto as at December 31, 2007 and the statements of revenue and expenditures and fund balances for the year then ended. These financial statements are the responsibility of the Foundation s management. 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 plan and perform an audit to obtain reasonable assurance whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. In our opinion, these financial statements present fairly, in all material respects, the financial position of as at December 31, 2007 and the results of its operations for the year then ended in accordance with Canadian generally accepted accounting principles. Markham, Canada March 25, 2008 Chartered Accountants Licensed Public Accountants Audit Tax Advisory Grant Thornton LLP. A Canadian Member of Grant Thornton International Ltd 1

4 Statement of Revenue and Expenditures and Fund Balances Year Ended December 31 Ontario B. Harper Conservation Bull Fellowship Journeys Operating Total Total Projects Fund Awards Fund Program Fund (Note 3) Revenue Donations, grants and fundraising $ 2,298,205 $ - $ - $ - $ 2,298,205 $ 3,690,807 Investment income 13,606 1,894 4,926 62,974 83,400 68,388 Operating fees (39,462) , ,272,349 1,894 4, ,436 2,381,605 3,759,195 Expenditures Grants to the Toronto and Region Conservation Authority 1,368, ,368,332 3,001,829 Scholarships (Note 3) ,500 Administration, operating and fundraising (Note 4) 483, , , ,129 1,851, ,436 1,954,414 3,530,458 Excess of revenue over expenditures 420,371 1,894 4, , ,737 Fund balances, beginning of year 1,039,928 50, ,112-1,209, ,835 Fund balances, end of year $ 1,460,299 $ 52,425 $ 124,038 $ - $ 1,636,762 $ 1,209,572 See accompanying notes to the financial statements. 2

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6 Notes to the Financial Statements December 31, Nature of operations The mission of ( Foundation ) is to develop public support and participation in the achievement of a liveable community through natural and cultural heritage resource conservation. The Foundation works to achieve its mission mainly through financial support of projects of the Toronto and Region Conservation Authority. The Foundation is a registered charity and, as such, is exempt from income taxes. To maintain this status, the Foundation is required to comply with certain requirements as specified in the Income Tax Act (Canada) for public foundations. 2. Summary of significant accounting policies Fund accounting Expenditures with respect to administrative and operating expenses are charged to the Operating Fund. Expenditures for projects and for scholarships awarded are charged to the appropriate fund. Revenue is allocated to the respective funds as explained below. Transfers between the funds are approved by the Board of Directors. Donations and grants Donations and grants are recorded when received and are allocated to the fund specified by the donor. Donations-in-kind are recorded at estimated fair market value. During 2007, the Foundation received and disbursed $13,736 of such donations-in-kind (2006 $32,977). Contributed services The Foundation derives significant benefit from services donated by volunteers. Since these services are not normally purchased by the Foundation and because of the difficulty in determining their fair value, donated services are not recognized in these financial statements. Investments Investments consist of government bonds carried at fair value with gains and losses recognized in the Statement of Revenue and Expenditures. Investment income Income received on investments identified with a certain fund is credited to that fund, in accordance with board policy. The remaining investment income is allocated to assist in financing Operating Fund expenditures. 4

7 Notes to the Financial Statements December 31, Summary of significant accounting policies (continued) Financial instruments recognition and measurement Effective January 2007, the Foundation adopted Canadian Institute of Chartered Accountants ( CICA ) Handbook Section 3855, Financial Instruments Recognition and Measurement. This new Handbook Section provides comprehensive requirements for the recognition and measurement of financial instruments. Under this new standard, all financial instruments on the balance sheet are classified as either held-for-trading, held-to-maturity investments, loans and receivables, available-for-sale, or other financial liabilities categories and are measured at fair market value or, in limited circumstances, at amortized cost. The Foundation has classified its cash and investments as held for trading. The receivables are classified as loans and receivables. The payables and amount due to Toronto and Region Conservation Authority are classified as other financial liabilities. The gain or loss arising from a change in the fair value of a financial asset or a financial liability classified as held for trading is reported on the statement of revenue and expenditures in the period in which it arises. The adoption of this new standard had no impact on the Foundation s financial statements. The fair values of cash, investments, receivables, accounts payable, and amount due to Toronto and Region Conservation Authority approximate their carrying value because of the short term to their expected realization or settlement. Statement of cash flows A statement of cash flows has not been presented as it would not provide any additional meaningful information. Use of estimates The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenditures during the year. Actual results could differ from those estimates. 3. B. Harper Bull Fellowship Awards Fund The B. Harper Bull Fellowship Awards Fund was established through a legacy from the Estate of Mr. B. Harper Bull and is supported by specified donations. The funds are invested in short term investments and the related investment income is disbursed in the form of awards to students engaged in conservation and environmental studies, on a bi-annual basis. 5

8 Notes to the Financial Statements December 31, Administration, operating and fundraising expenses Salaries, wages and benefits $ 77,596 $ 105,371 Office and general 10,396 12,408 Computer equipment and software 5,463 4,808 Legal and audit fees 7,666 4,934 Travel and meetings 1,315 1, , ,736 Fundraising expenses 483, ,393 $ 586,082 $ 527, Due to the Toronto and Region Conservation Authority The amounts due to the Toronto and Region Conservation Authority are non-interest bearing, unsecured and have no specified repayment terms. 6. Comparison to budget The following comparison of budget to actual for 2007 is provided for information purposes. Budget amounts are unaudited Budget Actual Revenue Donations and grants $ 2,271,800 $ 2,298,205 Investment income 36,200 83,400 2,308,000 2,381,605 Expenditures Grants to the Toronto and Region Conservation Authority 1,735,500 1,368,332 Administrative and operating 94, ,436 Fundraising 426, ,646 2,256,400 1,954,414 Excess of revenue over expenditures $ 51,600 $ 427,191 6