Big Brothers Big Sisters Ottawa / Grands Frères Grandes Soeurs d'ottawa Financial Statements For the year ended December 31, 2017

Transcription

1 Financial Statements For the year ended December 31, 2017 Contents Independent Auditor's Report 2-3 Financial Statements Statement of Financial Position 4 Statement of Changes in Fund Balances 5 Statement of Operations 6 Statement of Cash Flows 7 Notes to Financial Statements 8-13

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5 Statement of Changes in Fund Balances For the year ended December 31 Unrestricted - General fund Unrestricted - Invested in Tangible Capital Assets Internally restricted - Operating contingency reserve fund Change in accounting policy - Note 10 Balance, beginning of the year - as previously reported $ (2,895) $ 41,121 $ 15,000 $ 53,226 $ (15,306) Change in Accounting policy (Note 10) (3,057) (2,063) - (5,120) - Balance, beginning of the year as restated (5,952) 39,058 15,000 48,106 (15,306) Excess of revenues over expenses 14, ,737 63,412 Acquisition of tangible capital assets (112,232) 112, Amortization of tangible capital assets 33,557 (33,557) Contributions related to tangible capital assets received 72,917 (72,917) Amortization of deferred contributions related to tangible capital assets (6,639) 6, Balance, end of the year $ (3,612) $ 51,455 $ 15,000 $ 62,843 $ 48,106 The notes are an integral part of these financial statements. 5

6 Statement of Operations For the year ended December Change in accounting policy - Note 10 Revenues City of Ottawa $ 217,392 $ 208,235 United Way / Centraide Ottawa 192, ,601 Grants 184, ,895 Special fundraising activities 172, ,879 Third party events 117,389 80,640 Ontario Ministry of Education 95,608 89,319 Annual giving 90,357 61,661 Other 2,545 6,231 1,072, ,461 Expenses Advertising and promotion 11,348 6,517 Fundraising 83,349 63,682 Group programs and materials 16,675 13,882 Insurance 18,302 15,863 Interest and bank charges 10,449 9,566 Meeting and staff development 13,145 13,553 Membership fees 14,790 14,642 Occupancy costs 45,633 31,817 Office supplies 18,988 17,751 Professional fees 63,951 62,610 Salaries and benefits 684, ,072 Telecommunications 17,566 16,405 Travel 18,405 16,947 Volunteer development and recognition 7,563 23,570 1,024, ,877 Excess of revenues over expenses before undernoted item 48, ,584 Amortization of tangible capital assets 33,557 40,172 Excess of revenues over expenses $ 14,737 $ 63,412 The notes are an integral part of these financial statements. 6

7 Statement of Cash Flows For the year ended December Change in accounting policy - Note 10 Cash flows from operating activities Excess of revenues over expenses $ 14,737 $ 63,412 Items not affecting cash: Amortization of tangible capital assets 33,557 40,172 Amortization of deferred capital contribution (5,414) (694) 42, ,890 Changes in non-cash working capital: Accounts receivable (30,914) (1,448) Prepaid expenses 9,794 (12,030) Accounts payable and accrued liabilities 55,518 (75,431) Deferred contributions 38,557 44, ,835 58,364 Cash flows from investing activities Acquisition of tangible capital assets (112,232) (27,091) Purchase of term deposits (100,155) (15,010) (212,387) (42,101) Cash flows from financing activities Deferred capital contributions received 71,692 5,000 Net (decrease) increase in cash (24,860) 21,263 Cash, beginning of the year 81,547 60,284 Cash, end of the year $ 56,687 $ 81,547 The notes are an integral part of these financial statements. 7

8 Notes to Financial Statements December 31, Accounting Policies Status and Purpose of Organization Basis of Accounting Use of Estimates Fund Accounting Big Brothers Big Sisters Ottawa / Grands Frères Grandes Soeurs d'ottawa is a not-for-profit organization incorporated without share capital under the laws of the Ontario Corporations Act. The organization's purpose is to foster, facilitate and support volunteer-based mentoring programs for children in need. The organization is a registered charity under the Income Tax Act and, as such, is exempt from income taxes and may issue income tax receipts to donors. The organization applies the Canadian accounting standards for not-for-profit organizations. The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the reported amounts of revenues and expenses for the year covered. The main estimates relate to the valuation of accounts receivable and the estimated useful life of tangible capital assets. The organization uses the restricted fund method of accounting for contributions. The organization has three funds: a General Fund, a Tangible Capital Assets Fund and an Operating Contingency Reserve Fund. The General Fund accounts for current operations and programs as well as the organization's general operations. Unrestricted contributions (donations and grants) and restricted contributions to be used for operations are reported in this fund. The Tangible Capital Assets Fund reports the assets, liabilities, revenues and expenses related to tangible capital assets. The Operating Contingency Reserve Fund is an internally restricted fund that was created to ensure that all contractual and legal commitments can be met. 8

9 Notes to Financial Statements December 31, Accounting Policies (continued) Revenue Recognition Restricted contributions related to general operations are recognized as revenue of the General Fund in the year in which the related expenses are incurred. All other restricted contributions are recognized as revenue of the appropriate restricted fund. Unrestricted contributions are recognized as revenue of the General Fund when they are received or receivable if the amount to be received can be reasonably estimated and collection is reasonably assured. Contributions related to the purchase of tangible capital assets are deferred and recognized as revenue on the same basis as the amortization expense related to the contributed tangible capital assets. Financial Instruments Initial and subsequent measurement The organization initially measures its financial assets and liabilities at fair value. The organization subsequently measures all its financial assets and financial liabilities at amortized cost. Impairment Financial assets measured at amortized cost are tested for impairment when there are indications of possible impairment. Transaction costs Transaction costs related to financial instruments subsequently measured at amortized cost are included in the original cost of the asset or liability and recognized in the statement of operations over the life of the instrument using the straight-line method. Tangible Capital Assets Tangible capital assets are accounted for at cost and amortized on the basis of their useful life using the straight-line basis at the following durations: Clothing bins Computer equipment Furniture and equipment Truck Leasehold improvements Website 7 years 3 years 5 years 5 years term of the lease 5 years 9

10 Notes to Financial Statements December 31, Accounting Policies (continued) Contributed Services Contributed Materials Volunteers contribute many hours per year to assist the organization in carrying out its activities. Due to the difficulty of determining their fair value, contributed services are not recognized in the financial statements. Due to the difficulty in determining the fair value of materials contributed to the organization they are not recognized in the financial statements. 2. Accounts Receivable Harmonized sales tax receivable $ 9,418 $ 10,267 Accrued receivables 37,695 24,512 Undeposited funds 20,299 1,720 $ 67,412 $ 36, Tangible Capital Assets Change in accounting policy- Note 10 Accumulated Accumulated Cost Amortization Cost Amortization Clothing bins $ 27,845 $ 2,763 $ 12,537 $ 1,045 Computer equipment 40,372 24,046 27,168 19,805 Furniture and equipment 25,037 24,167 25,037 23,816 Truck 32,014 2, Leasehold improvements 108,366 78,982 78,470 58,502 Website 24,319 3,175 3, $ 257,953 $ 135,914 $ 146,588 $ 103,224 Net carrying amount $ 122,039 $ 43,364 10

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12 Notes to Financial Statements December 31, Contractual Obligations The organization leases its premises under a lease expiring on August 31, 2018 and also leases equipment under a lease expiring on May 31, The organization also signed an agreement for event management. Future minimum lease payments for premises, equipment and event management total $77,524 and include the following payments over the next three years: 2018 $ 70, $ 5, $ 1, Financial Instruments Credit risk The organization is exposed to credit risk for its accounts receivable to the extent that other organizations and/or individuals fail to meet their obligations or commitments. 9. Employee Future Benefits Defined contribution pension plan The organization is a participating employer in a multi-employer defined contribution pension plan for its unionized employees. The employer contributions for the year are $13,721 ( $11,494). 12

13 Notes to Financial Statements December 31, Changes in Accounting policy During the year, the organization changed its revenue recognition policy for in kind donations relating to contributed materials. The new policy better reflects the financial operations of the organization and will reduce the effects of the estimation uncertainty relating to the values of contributed services and materials. As a result of the change, prior period figures were restated to take into account the effects of the retrospective application of the accounting policy. The financial statements were restated by the following amounts. Statement of financial position as at December 31, 2016 Decrease in tangible capital assets - furniture and equipment $ 2,063 Decrease in inventories $ 3,057 Statement of changes in fund balances for the year ended December 31, 2016 Decrease in ending balance $ 5,120 Statement of operations for the year ended December 31, 2016 Decrease in contributed revenues and services $ 37,358 Decrease in expenses $ 32,238 13