ONTARIO SOCIETY OF ORAL AND MAXILLOFACIAL SURGEONS (OSOMS) FINANCIAL STATEMENTS (Unaudited) DECEMBER 31, 2017
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1 FINANCIAL STATEMENTS DECEMBER 31, 2017
2 J.F. Chin Professional Corporation Chartered Professional Accountant Allstate Parkway, Markham, ON L3R 5B4 Tel : (416) Fax: (416) REVIEW ENGAGEMENT REPORT To the Members of Ontario Society of Oral and Maxillofacial Surgeons (OSOMS) I have reviewed the accompanying financial statements of Ontario Society of Oral and Maxillofacial Surgeons (OSOMS) that comprise the statement of financial position as at December 31, 2017, and the statements of changes in net assets, operations and cash flows 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. Practitioner's Responsibility My responsibility is to express a conclusion on the accompanying financial statements based on my review. I conducted my review in accordance with Canadian generally accepted standards for review engagements, which require me to comply with relevant ethical requirements. A review of financial statements in accordance with Canadian generally accepted standards for review engagements is a limited assurance engagement. The practitioner performs procedures, primarily consisting of making inquiries of management and others within the entity, as appropriate, and applying analytical procedures, and evaluates the evidence obtained. The procedures performed in a review are substantially less in extent than, and vary in nature from, those performed in an audit conducted in accordance with Canadian generally accepted auditing standards. Accordingly, I do not express an audit opinion on these financial statements. Conclusion Based on my review, nothing has come to my attention that causes me to believe that the financial statements do not present fairly, in all material respects, the financial position of Ontario Society of Oral and Maxillofacial Surgeons (OSOMS) as at December 31, 2017, and the results of its operations and its cash flows for the year then ended in accordance with Canadian accounting standards for not-for-profit organizations. Markham, Ontario May 21, 2018 J.F. Chin, CPA CA, Professional Corporation Authorized to practise public accounting by Chartered Professional Accountants of Ontario 1.
3 STATEMENT OF FINANCIAL POSITION DECEMBER 31, 2017 Assets Current Cash $ 63,847 $ 76,386 Sales tax recoverable 626 1,676 Prepaid expenses 5,000 5,000 $ 69,473 $ 83,062 Liabilities Current Accounts payable $ 3,000 $ 15,511 Deferred revenue (note 2) 54,785 46,554 57,785 62,065 Net assets Unrestricted net assets 11,688 20,997 $ 69,473 $ 83,062 On behalf of the Board 2.
4 STATEMENT OF CHANGES IN NET ASSETS YEAR ENDED DECEMBER 31, 2017 Net assets, beginning of year $ 20,997 $ 87,342 Excess expenses over revenue (9,309) (66,345) Net assets, end of year $ 11,688 $ 20,997 3.
5 STATEMENT OF OPERATIONS YEAR ENDED DECEMBER 31, 2017 Revenue Membership fees (note 2) $ 74,895 $ 87,126 Corporate sponsorships 20,000 32,750 94, ,876 Expenses Bank charges 3,371 3,133 Computer and related expenses Consulting fees 60,000 64,777 Meetings 34, ,040 Office and general expenses 2,280 3,630 Professional fees 3,200 8,238 Travel , ,221 Excess expenses over revenue $ (9,309) $ (66,345) 4.
6 STATEMENT OF CASH FLOWS YEAR ENDED DECEMBER 31, 2017 Operating activities Cash receipts from members $ 83,125 $ 79,836 Corporate sponsorships 20,000 32,750 Cash paid to suppliers (116,715) (173,710) Sales taxes recovered 1,676 - Sales taxes paid (625) (1,676) Cash used in operating activities (12,539) (62,800) Decrease in cash (12,539) (62,800) Cash, beginning of year 76, ,186 Cash, end of year $ 63,847 $ 76,386 5.
7 NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2017 PURPOSE OF THE SOCIETY On August 14, 2014, the Ontario Society of Oral and Maxillofacial Surgeons (OSOMS) (the Society) was incorporated under Part 5 of the Ontario Corporations Act. Pursuant to section 149(1) (I) of the Income Tax Act (Canada), the Society qualifies as a not-for-profit organization, and as such, is exempt from tax. The Society is established as a voluntary professional organization to promote, advance and represent the best interests of the oral and maxillofacial surgeons who are registered to practise in Ontario and to promote and advance the profession of oral and maxillofacial surgery in Ontario. 1 Significant Accounting Policies The financial statements were prepared in accordance with Canadian accounting standards for not-for-profit organizations in Part III of the CPA Canada Handbook and include the following significant accounting policies. Revenue recognition The Society follows the deferral method of accounting for revenue. Membership fees are recognized as revenue during the year when a member has paid his membership fee and the fee relate to the current year. Corporate sponsorships are recognized as revenue when they are received by the Society. Deferred revenue Deferred revenue represents membership fees received in the current year relating to the following calendar year. Financial instruments Measurement The Society initially measures all of its financial assets and liabilities at fair value. The Society subsequently measures all of its financial assets and liabilities at amortized cost. Impairment Financial assets measured at cost are tested for impairment when there are indicators of impairment. The amount of the write-down is recognized in net income. The previously recognized impairment loss may be reversed to the extent of the improvement, directly or by adjusting the allowance account, provided it is no greater than the amount that would have been reported at the date of the reversal had the impairment not been recognized previously. The amount of the reversal is recognized in net income. 6.
8 NOTES TO FINANCIAL STATEMENTS DECEMBER 31, Significant Accounting Policies (continued) Contributed services Volunteers contribute a significant amount of time to the Society as members of the board of directors, committee members and chairs and representatives of the Society in a wide variety of roles and responsibilities. Contributed services from volunteers are not recognized in the financial statements due to the difficulty of determining their fair value. Use of estimates The preparation of the financial statements in conformity with Canadian accounting standards for not-for-profit organizations requires management to make estimates and assumptions about future events that affect the reported amounts of assets, liabilities, revenues and expenses as at the end of or during the reporting year. Management believes that the estimates used are reasonable and prudent, however, actual results could differ from those estimates. Significant areas requiring the use of management estimates relate to recognition of deferred revenue, and the amounts recorded as accounts payable. 2. Membership fees Deferred fees from prior year $ 46,554 $ 54,468 Fees received during current year 83,126 79,212 Fees received during current year deferred to the following year (54,785) (46,554) Fees recognized as revenue in the current year $ 74,895 $ 87, Financial Instruments Risks In management's opinion, the Society is not exposed to significant currency, credit, liquidity, interest rate or other market risks arising from its financial instruments. 7.
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