Multiple Sclerosis Society of Canada, South Vancouver Island Chapter. Financial Statements (unaudited) December 31, 2009

Transcription

1 Multiple Sclerosis Society of Canada, South Vancouver Island Chapter Financial Statements (unaudited) December 31, 2009

2 Statement of Financial Position (unaudited) (Note 2) Assets Current assets Cash 165, ,134 Short term investments 35,332 35,274 Accounts receivable 7, ,771 Receivable from other MS Society offices 1, , ,989 Capital assets (note 4) 160, ,622 Liabilities and Net Assets 370, ,611 Current liabilities Accounts payable and accrued liabilities 9,858 34,700 Payable to other MS Society offices 110, ,521 Deferred revenue 139,332 38,836 Deferred capital contributions (note 5) 16,616 8, , ,673 Long-term liabilities Deferred capital contributions (note 5) 65,102 78, , ,314 Net assets Unrestricted 29, , , ,611

3 Statement of Revenue and Expenditures (unaudited) Four-month period ended (Note 2) Revenue Special fundraising projects, net (note 6) (56,333) 576,243 Donations 42,368 59,627 United Way 24,175 61,195 Miscellaneous income 17,499 33,205 Amortization of deferred capital contributions 5,539 28,044 Investment income 462 3,399 Grants 704 1,618 Memberships , ,391 Expenses Program services MS Clinics 134,513 46,615 Client services 64, ,229 Public education 20,422 57,546 Volunteer resources 12,281 36,240 Research 7, ,229 Government relations 3, , ,859 Support services Administration 53, ,657 Development 3,807 10,977 57, , , ,493 Excess (deficiency) of revenue over expenses for the period (265,048) 45,898

4 Statement of Changes in Net Assets (unaudited) Four-month period ended Unrestricted (Note 2) Total Total Balance Beginning of period 322, ,399 Reduction of net assets due to merger with Vancouver Island Multiple Sclerosis Society (note 1) (27,829) - Excess (deficiency) of revenue over expenditures (265,048) 45,898 Balance End of period 29, ,297

5 Statement of Cash Flows (unaudited) For the four-month period ended December 31, 2009 (Note 2) Cash flows from (used in) Four-month period ended (Note 2) Operating activities Excess (deficiency) of revenue over expenses for the period (265,048) 45,898 Item not affecting cash Amortization of capital assets 13,505 45,532 Amortization of deferred capital contributions (5,539) (28,044) Net capital assets acquired on merger with Vancouver Island Multiple Sclerosis Society (VIMSS) 4,148 (252,934) 63,386 Changes in non-cash working capital items Accounts receivable 148,950 (80,317) Receivable from other MS Society offices (922) (810) Reduction of accounts receivable from merger with VIMSS (146,175) Prepaid expenses - 4,946 Accounts payable and accrued liabilities (24,842) 14,248 Payable to other MS Society offices (172,074) 117,683 Deferred revenue 100,496 4,064 (94,567) 59,814 Financing and investing activities Unrealized gain on short term investments (58) (9,487) Reimbursement of capital assets provided by National Office - 18,666 Purchase of capital assets (12,892) - (12,950) 9,179 Net change in cash during the period (360,451) 132,379 Cash Beginning of period 416, ,755 VIMSS cash position as of September 1, ,050 - Cash End of period 165, ,134

6 Notes to Financial Statements (unaudited) For the four-month period ended December 31, Nature of operations The Multiple Sclerosis Society of Canada is incorporated under the laws of Canada. The organization is a registered charity under the Income Tax Act and is therefore exempt from income taxes and may issue official donation receipts to donors. Its mission is to be a leader in funding research to find a cure for multiple sclerosis and to enable people affected by multiple sclerosis to enhance their quality of life. The South Vancouver Island Chapter (SVIC) is responsible for the activities of the Multiple Sclerosis Society of Canada from Victoria to Duncan. Effective September 1, 2009, the Vancouver Island Multiple Sclerosis Society (VIMSS) legally merged with SVIC. As a result of this merger, these financial statements present the consolidated financial results of both organizations. 2 Change of fiscal year-end date In March, 2009, the National Board of the Multiple Sclerosis Society of Canada (the MS Society ) approved a motion to change the year end of the MS Society from August 31st to December 31st, effective As a result, for this transition year, the revenue and expenditures for the period ending December 31, 2009 represent the period of September 1 to December 31, The prior year column titled August 31, 2009 represents the previous full fiscal year covering the period of September 1, 2008 to August 31, Given that the majority of the fundraising activity of the MS Society occurs during the spring and summer months, the revenue generated during the four month fiscal year ending December 31, 2009 is significantly lower than for the previous twelve month fiscal period. This was anticipated when the year end date was changed and the MS Society had sufficient unrestricted net assets on hand to absorb the shortfall during this short fiscal period. 3 Significant accounting policies Basis of accounting The Chapter follows Canadian generally accepted accounting principles for not-for-profit organizations which require that financial statements be prepared using the accrual basis of accounting under which revenues and expenses are recorded in the period when earned and incurred. Capital assets Capital assets are recorded at cost. Amortization is based on the estimated useful life of the asset and is provided for as follows: Office equipment Computer equipment Medical equipment Building renovations 3 years 3 years 3 years 10 years Capital assets are amortized at one-half of the above rates in the year of acquisition. (1)

7 Notes to Financial Statements (unaudited) For the four-month period ended December 31, 2009 Revenue recognition The Chapter follows the deferral method of accounting for contributions. Restricted contributions are recognized as revenue in the period in which the related expenses are incurred. Unrestricted contributions and pledges are recognized as revenue when received or receivable if the amount to be received can be reasonably estimated and collection is reasonably assured. Donated services The work of the Chapter is dependent on the voluntary service of many individuals. Since these services are not normally purchased by the Chapter, and because of the difficulty of determining their fair value, donated services are not recognized in these financial statements. 4 Capital assets Four-month period ended Cost Accumulated amortization Net Book Value Cost Accumulated amortization Net Book Value Office equipment 65,440 49,183 16,257 58,474 47,060 11,414 Computer equipment 18,886 10,681 8,205 15,938 9,176 6,762 Medical equipment 116, ,402 6, ,125 97,929 4,196 Building renovations 301, , , , , , , , , , , ,622 As a result of the merger with VIMSS, office furniture and equipment with a total cost of 603 and accumulated amortization of 518 and medical equipment with a cost of 14,757 and accumulated amortization of 10,695 was acquired. 5 Deferred capital contributions Four-month period ended Balance - Beginning of period 87, ,301 Less: Amortization for the period (5,539) (28,044) Balance - End of period 81,718 87,257 Less: Current portion (16,616) (8,760) 65,102 78,497 (2)

8 Notes to Financial Statements (unaudited) For the four-month period ended December 31, 2009 The South Vancouver Island Chapter has received capital grants to finance building renovations. (3)

9 Notes to Financial Statements (unaudited) For the four-month period ended December 31, Special fundraising projects Four-month period ended MS Bike Tour 13, ,669 MS Walk 6, ,253 Carnation Campaign - 33,836 MS Open Water Swim - 41,749 Province of BC - Gaming 2,050 97,950 21, ,457 Less: Related expenditures 77, ,214 7 Research funds (56,333) 576,243 During the four-month period ended December 31, 2009, the Board of Directors approved research contributions of 7,000 (twelve-month period ended August 31, ,229) to the Multiple Sclerosis Society of Canada, national research program. (4)