NATIONAL INDIAN BROTHERHOOD

Transcription

1 Consolidated Financial Statements of March 31, 2003

2 Deloitte & Touche LLP Queen Street Ottawa, ON K1P 5T8 Tel: (613) Fax: (613) Auditors' Report To the Executive Council of National Indian Brotherhood We have audited the consolidated balance sheet of National Indian Brotherhood as at March 31, 2003 and the consolidated statements of revenue and expenses, changes in net assets and cash flows for the year then ended. These financial statements are the responsibility of the Corporation'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 consolidated financial statements present fairly, in all material respects, the financial position of the Corporation as at March 31, 2003 and the results of its operations and its cash flows for the year then ended in accordance with Canadian generally accepted accounting principles. As required by the Canada Corporations Act, we report that in our opinion, these principles have been applied on a basis consistent with that of the preceding year. The financial statements as at March 31, 2002 and for the year then ended were audited by other auditors who expressed an opinion without reservation on those statements in their report dated May 31, Chartered Accountants May 23, 2003

3 Consolidated Financial Statements March 31, 2003 PAGE Consolidated Statement of Revenue and Expenses 1 Consolidated Balance Sheet 2 Consolidated Statement of Changes in Net Assets 3 Consolidated Statement of Cash Flows 4 Notes to the Consolidated Financial Statements 5-9 Schedule 1 - Consolidated Core Operations - Revenue and Expenses 10 Schedule 2 - Consolidated Core Operating Expenses Schedule 3 - Consolidated Annual General Assembly - Revenue and Expenses 15 Schedule 4 - Consolidated Confederacy of Nations - Revenue and Expenses 16 Schedule 5 - Consolidated Programs - Revenue and Expenses 17-18

4 Consolidated Statement of Revenue and Expenses Revenue Core operations (Schedule 1) $ 5,693,797 $ 5,778,680 Annual general assembly (Schedule 3) 316, ,548 Confederacy of Nations (Schedule 4) 420, ,958 Programs (Schedule 5) 12,303,484 13,324,700 18,734,222 20,006,886 Expenses Core operations (Schedule 1) 5,130,936 5,069,660 Annual general assembly (Schedule 3) 285, ,548 Confederacy of Nations (Schedule 4) 278, ,958 Programs (Schedule 5) 12,372,887 13,793,049 18,067,877 19,766,215 EXCESS OF REVENUE OVER EXPENSES $ 666,345 $ 240,671 1

5 Consolidated Balance Sheet as at March 31, 2003 CURRENT ASSETS Cash $ 1,874,744 $ 514,359 Investment in AFN Insurance Brokers - 29,150 Contributions receivable (Note 3) 2,612,961 2,391,254 Other accounts receivable 334, ,861 GST recoverable 193, ,171 Prepaid expenses 98,428 50,114 5,114,146 3,420,909 CAPITAL ASSETS (Note 4) 201, ,019 CURRENT LIABILITIES $ 5,315,964 $ 3,664,928 Accounts payable and accrued liabilities $ 2,479,663 $ 1,949,097 Deferred revenue (Note 6) 393,623 76,485 Excess contributions (Note 7) 469, ,391 CONTINGENCY (Note 8) NET ASSETS 3,342,664 2,357,973 Investment in capital assets 201, ,019 Restricted funds (Note 9) 209, ,161 General operations 1,561, ,775 ON BEHALF OF THE EXECUTIVE COUNCIL 1,973,300 1,306,955 $ 5,315,964 $ 3,664,928 Matthew Coon Come, National Chief Bill Erasmus, Vice Chief, Chairman Finance Committee 2

6 Consolidated Statement of Changes in Net Assets Total Investment in Restricted General Capital Assets Funds Operations BALANCE, BEGINNING OF YEAR $ 244,019 $ 217,161 $ 845,775 $ 1,306,955 $ 1,066,284 Excess of revenue over expenses , , ,671 Capital assets acquisition 160,474 - (160,474) - - Amortization of capital assets (202,675) - 202, National Indian Brotherhood Trust Fund - (7,618) 7, BALANCE, END OF YEAR $ 201,818 $ 209,543 $ 1,561,939 $ 1,973,300 $ 1,306,955 3

7 Consolidated Statement of Cash Flows NET INFLOW (OUTFLOW) OF CASH RELATED TO THE FOLLOWING ACTIVITIES: OPERATING Excess of revenue over expenses $ 666,345 $ 240,671 Items not affecting cash Amortization of capital assets 202, ,989 Share of gain from AFN Insurance Brokers - (29,805) 869, ,855 Changes in non-cash operating working capital items Contributions receivable (221,707) 2,929,157 Amounts receivable 540 (94,036) GST recoverable (92,521) 198,824 Prepaid expenses (48,314) 56,704 Accounts payable and accrued liabilities 530,566 (1,396,394) Deferred revenue 317,138 (42,232) Excess contributions 136, ,352 1,491,709 2,218,230 INVESTING Investment in AFN Insurance Brokers 29,150 - Purchase of capital assets (160,474) (20,145) (131,324) (20,145) FINANCING Bank loan - (1,887,530) NET CASH INFLOW 1,360, ,555 CASH, BEGINNING OF YEAR 514, ,804 CASH, END OF YEAR $ 1,874,744 $ 514,359 4

8 Notes to the Consolidated Financial Statements 1. DESCRIPTION OF BUSINESS The National Indian Brotherhood was incorporated under Part II of the Canada Corporations Act on September 29, 1970 with the following objectives: to assist and to work towards solutions for problems facing the Indian people; to operate as a national body to both represent the Indian people and to disseminate information to them; to study, in conjunction with Indian representatives across Canada, the problems confronting Indians and to make representations to the government and other organizations on their behalf; to assist in retaining the Indian culture and values; and to act as the national spokesperson for Indians throughout Canada. The Corporation acts as the secretariat to the Assembly of First Nations. The Corporation is a not-for-profit organization and, as such, is not subject to income taxes. 2. ACCOUNTING POLICIES The consolidated financial statements have been prepared in accordance with Canadian generally accepted accounting principles and include the following significant accounting policies: Basis of consolidation The financial statements include the accounts of the Corporation and those of the National Indian Brotherhood Trust Fund and the First Nations Messenger Foundation, entities which are controlled by the Corporation. All significant inter-organization transactions have been eliminated on consolidation. Capital assets Capital assets are recorded at cost. Amortization is provided on the straight-line basis over the estimated useful lives of the assets as follows: Computer equipment Other 3 years 3 years 5

9 Notes to the Consolidated Financial Statements 2. ACCOUNTING POLICIES (Continued) Excess contributions The excess of revenue over expenses of some programs may require repayment. When approval to do so has been received, the excess is recorded as revenue in a subsequent period. Revenue recognition Unrestricted contributions are recognized as revenue of the appropriate program received or receivable if the amount to be received can be reasonably estimated and collection is reasonably assured. All restricted contributions are recognized as revenue of the appropriate program in the year in which the related expenses are incurred. The Corporation is funded primarily through funding arrangements with various departments of the federal government of Canada. Each agreement provides funds to be expended during the Corporation's fiscal year. The funds are contributed under certain conditions including the requirement that they be spent for the purposes set out in the related funding agreement. Certain agreements require that funds which have not been expended in the year to which the agreement relates must be returned to the government department. 3. GRANTS/CONTRIBUTIONS RECEIVABLE Grants/contributions receivable are as follows: Indian Residential Schools Resolution of Canada $ 157,068 $ - Indian and Northern Affairs Canada 1,544,635 1,076,699 Health Canada 96, ,879 Fisheries and Oceans Canada 20,000 20,898 Human Resources Development Canada 158, ,159 Canadian Heritage 428, ,997 Other 207, ,622 $ 2,612,961 $ 2,391,254 6

10 Notes to the Consolidated Financial Statements 4. CAPITAL ASSETS Accumulated Net Book Net Book Cost Amortization Value Value Computer equipment $ 801,969 $ 673,306 $ 128,663 $ 159,360 Other 273, ,979 73,155 84,659 $ 1,075,103 $ 873,285 $ 201,818 $ 244, CREDIT FACILITY The Corporation has a banking agreement which establishes a demand credit facility for general business purposes up to a maximum of $1,000,000, bearing interest at prime plus 1% up to the credit limit and 12% thereafter. The loan is secured by a general security agreement representing a first charge over all of the Corporation's assets. The balance outstanding at year-end is $NIL ( $NIL). 6. DEFERRED REVENUE Deferred revenue is as follows: Conference Revenue $ 44,609 $ - Justice Canada 2,751 63,069 Solicitor General Canada - 1,016 Veterans Affairs Canada 214,419 - Other 131,844 12,400 $ 393,623 $ 76, EXCESS CONTRIBUTIONS Excess contributions are as follows: Foreign Affairs and International Affairs $ 21,175 $ - Indian Affairs and Northern Development 33,883 33,883 Health Canada 299, ,207 Human Resources Development Canada 85,436 28,614 Heritage 14,786 14,786 Other 14,168 13,901 7 $ 469,378 $ 332,391

11 Notes to the Consolidated Financial Statements 7. EXCESS CONTRIBUTIONS (Continued) The Corporation did not recognize revenue from these excess contributions in fiscal 2003 or CONTINGENCY The Corporation receives funding from various government agencies based on specific program needs and budgets and allocates certain expenses to the various programs. In many cases, the funding agent has the right to review the accounting records to ensure compliance with the terms and conditions of their programs. At this time no estimate of the requirements, if any, to reimburse the agencies can be made. Management of the Corporation feels that their allocations of expenses are fair and appropriate in the circumstances. 9. CONTROLLED ENTITIES The consolidated financial statements include the accounts of the following controlled entities. A summary description of the entities is provided below. The National Indian Brotherhood Trust Fund The Corporation controls the National Indian Brotherhood Trust Fund. The Trust Fund was established as a registered charity under paragraph 149 (i)(f) of the Income Tax Act and is comprised of the Language and Literacy Fund, the Youth Healing Fund, the Research Sponsor Fund and the Heroes Award Fund. Restricted funds are comprised of the following and are to be used for the purposes described below: The Language and Literacy Fund was established to promote education of First Nations' citizens by way of scholarship awards and promotion research, seminars, conferences of an academic nature on First Nations rights, histories and cultures among First Nations' peoples as well as the Canadian public. The Youth Healing Fund was established to support efforts to improve the self-esteem and profile of First Nations' Youth in Canada by organizing events which may bring together First Nations' Youth with political leaders and elders for spiritual and leadership training and support in the Youth's representation of the Nations at conferences and gatherings in Canada and internationally. 8

12 Notes to the Consolidated Financial Statements 9. CONTROLLED ENTITIES (Continued) The National Indian Brotherhood Trust Fund (Continued) The Research Sponsor Fund was established in 2001 with the purpose to participate in research into the economic, social and scientific problems of Indian communities with a view to proposing solutions to problems. The Heroes Award Fund was established in 2001 with the purpose of giving recognition to those First Nations' citizens who demonstrate a proven record of intellectual and academic ability, integrity of character, interest and respect for fellow human beings, ability to lead, and the initiative to use their talents to the fullest. The Organization appoints the Executive Council of the Trust Fund and ensures that the Trust Fund operates in compliance with the Organization's Charter. The First Nations Messenger Foundation The First Nations Messenger Foundation is a not-for-profit organization incorporated without share capital under Part II of the Canada Corporations Act on July 15, 1999, to establish and operate an educational newspaper that addresses First Nations issues and to maintain and operate educational programs to increase knowledge respecting First Nations' issues. The National Indian Brotherhood obtains funding on behalf of the Foundation, directs the operations of the Foundation to ensure that the Foundation's objectives are met and is responsible for any operating deficiency. 10. COMMITMENTS The Corporation is committed to future minimum lease payments under operating leases for office space and equipment for each of the next three years as follows: 2004 $ 574, , , EXECUTIVE SALARIES By virtue of an Annual General Assembly Resolution (62/98), the National Chief of the Assembly of First Nations (AFN) receives a salary which is adjusted annually in connection with the Consumer Price Index. Similarly, by virtue of a Confederacy of Nations resolution and an Executive Committee resolution, each Vice-Chief is allocated a Director's fee. Management and unelected officials are compensated within average industry remuneration levels for their positions. 9

13 Schedule 1 Consolidated Core Operations - Revenue and Expenses Revenue Indian and Northern Affairs Canada Core $ 1,872,307 $ 1,388,247 Core-like 3,336,512 3,832,992 Books and miscellaneous 232, ,072 First Nations Messenger Foundation (Note 9 6,086 40,887 NIB Trust Fund (Note 9) 246, ,677 Share of gain in AFN Insurance - 29,805 5,693,797 5,778,680 Expenses (Schedule 2) Council of Elders 2,307 21,841 Communication 230, ,128 Chief Executive Office 456, ,400 Finance 85,763 (97,230) National Chief's Office 941,431 1,408,933 Support Services 509, ,152 Executive Committee 2,637,615 2,131,349 First Nations Messenger Foundation (Note 9 12, ,777 NIB Trust Fund (Note 9) 253, ,310 5,130,936 5,069,660 EXCESS OF REVENUE OVER EXPENSES $ 567,734 $ 709,020 10

14 Schedule 2 Consolidated Core Operating Expenses Council of Elders Office and administration $ (41) $ 703 Travel and meetings 2,348 21,138 $ 2,307 $ 21,841 Communication Meeting expenses $ 312 $ - Office and other supplies 15,354 18,836 Printing and photocopying 25,782 8,014 Publications and subscriptions 14,096 14,577 Professional services 15,106 20,641 Rent 23,570 27,790 Salaries and benefits 118, ,923 Telecommunications 6,089 9,436 Travel 11,886 12,911 $ 230,796 $ 303,128 Chief Executive's Office Amortization of capital assets $ 6,766 $ 13,113 Delivery and postage 1, Insurance Meeting expenses 4,272 3,567 Miscellaneous 54,077 31,876 Office furniture and equipment Office supplies 1,905 1,058 Photocopying and printing 8, Professional services 70,303 3,208 Publications and subscriptions 3, Rent 31,111 30,204 Repairs and maintenance Salaries and benefits 222, ,238 Storage Telecommunications 4,909 8,175 Training Travel 45,416 10,903 $ 456,718 $ 363,400 11

15 Consolidated Core Operating Expenses Schedule 2 (Continued) Finance Audit and legal fees $ 59,488 $ 68,464 Bad debt expenses 239,010 - Delivery and postage 984 1,936 Miscellaneous (recovery) (13,261) 34,202 Office furniture and equipment 34,947 6,382 Office supplies 3,553 3,214 Photocopying and printing 4,129 1,535 Professional services 3,680 2,340 Rent 46,635 48,135 Repairs and maintenance 638 2,017 Salaries and benefits 281, ,492 Telecommunications 21,492 11,697 Training 9,110 3,878 Travel 33,553 7, , ,908 Less: Finance costs charged to programs 639, ,138 $ 85,763 $ (97,230) National Chief's office Amortization of capital assets $ 25,627 $ 24,620 Legal fees 109,331 89,898 Automobile 6,600 6,600 Delivery and postage 1,858 3,213 Insurance 1,669 1,326 Meeting expenses 17,585 15,419 Office furniture and equipment 12,541 13,219 Office supplies 2,895 3,944 Other administration 8,853 79,553 Payment to organizations 10,000 2,500 Photocopying and printing 6,435 6,341 Professional services 18, ,031 Promotion 4,099 2,304 Rent 39,506 55,466 Salaries and benefits 397, ,398 Telecommunications 17,839 28,937 Travel 261, ,164 $ 941,431 $ 1,408,933 12

16 Consolidated Core Operating Expenses Schedule 2 (Continued) Support services Amortization of capital assets $ 20,349 $ 19,637 Delivery and postage 35,556 36,303 Insurance 2,087 1,410 Interest and bank charges 12,508 16,281 Meeting expenses - 1,046 Miscellaneous 1,600 (680) Office furniture and equipment 2,187 5,033 Office supplies 23,374 34,705 Photocopying and printing 10,570 12,692 Professional services 35,713 40,253 Publications and subscriptions Rent 55,980 77,902 Repairs and maintenance 6,079 19,322 Salaries and benefits 369, ,939 Storage Telecommunications 12,066 4,343 Training 3,109 4,126 Travel 11,481 2, , ,785 Less: Services charged to programs Photocopying 36,035 37,399 Other 57,595 43,234 93,630 80,633 $ 509,411 $ 572,152 13

17 Consolidated Core Operating Expenses Schedule 2 (Continued) Executive Committee Delivery and postage $ 2,050 $ 1,981 Meeting expenses 1,600 1,178 Office furniture and equipment 2, Administration expenses 305,000 - Photocopying and printing 5,794 4,729 Professional services 1,107,850 1,071,143 Telecommunications 44,888 44,864 Translation 286 1,775 Travel 452, ,075 Vice-Chiefs assistants 714, ,235 $ 2,637,615 $ 2,131,349 First Nations Messenger Foundation Bank and interest charges $ 61 $ 720 Consulting - 4,553 Office and general 13,080 6,331 Postage and courier Printing and photocopying - 43,758 Salaries and benefits (147) 37,898 Translation - 8,715 $ 12,994 $ 102,777 NIB Trust Fund Bad debt $ 6,048 $ - Bank and interest charges PGI fundraiser 42,073 36,214 Professional fees 16,280 - Research costs 177, ,804 Scholarships 12,000 12,000 $ 253,901 $ 263,310 14

18 Schedule 3 Consolidated Annual General Assembly Revenue Indian and Northern Affairs Canada $ 250,000 $ 412,703 Registration fees and trade show 66,024 58, , ,548 Expenses Meeting expenses 116, ,187 Office supplies 32,633 15,373 Postage and courier ,343 Printing and photocopying 50,973 46,484 Professional services 22,415 27,163 Salaries and benefits 1, Telephone and fax 2,315 1,353 Translation and interpretation 28,650 54,387 Travel 31, , , ,548 EXCESS OF REVENUE OVER EXPENSES $ 30,613 $ - 15

19 Schedule 4 Consolidated Confederacy of Nations Revenue Indian and Northern Affairs Canada $ 300,000 $ 351,334 Registration fees 120,917 80, , ,958 Expenses Meeting expenses 122,126 76,536 Office supplies 10,596 10,342 Postage and courier 878 7,008 Printing and photocopying 32,127 49,707 Professional services 29,311 20,773 Salaries and benefits - 36,779 Telephone and fax 2,037 2,848 Translation and interpretation 29,308 28,201 Travel 52, , , ,958 EXCESS OF REVENUE OVER EXPENSES $ 142,274 $ - 16

20 Schedule 5 Consolidated Programs - Revenue and Expenses Excess (Deficiency) of Revenue Revenue Expenses over Expenses Indian and Northern Affairs Canada Economic Development $ 91,943 $ 91,943 $ - Education 484, ,298 - Fiscal Relations 1,129,998 1,019, ,633 Housing 122, ,082 - Income Security Reform 501, ,288 21,414 Internal Legal Counsel 63,808 63,808 - International 126, ,970 - Parliamentary Liaison 147, ,199 - Specific Claims 354, ,887 - Treaties 158, ,319 - Environment Canada Species at Risk 83,360 89,672 (6,312) Health Canada First Nation Health Information System 179, ,230 - AIDS/HIV 75,435 75,435 - Contaminants Program 152, ,914 - Health Services 1,032,000 1,032,000 - Home Care Program 230, ,000 - Prenatal Nutrition Program 700, ,000 - Non-Insured Health Benefits 523, ,952 - Suicide Prevention 164, ,490 - Health Renewal 223, ,324 - Injury Prevention 44,618 44,618 - Diabetes 63,544 63,544 - Aboriginal Healing Foundation - Being Alive Well 45,000 45,007 (7) Veterans Affairs Canada 254, ,845 - Walter and Duncan Gordon Foundation Environment 87,000 44,069 42,931 Indian Residential Schools Resolution of Canada Residential School 288, ,413 (32,359) Language 149, ,767 - Subtotal carry forward 7,478,739 7,342, ,300 17

21 Consolidated Programs - Revenue and Expenses Schedule 5 (Continued) Excess (Deficiency) of Revenue Revenue Expenses over Expenses Subtotal carried forward $ 7,478,739 $ 7,342,439 $ 136,300 Fisheries and Oceans Canada Fisheries 200, ,470 (57,470) Justice Canada Correctional Worker 76, ,720 (29,704) Firearms 86,099 86,099 - Industry Canada Aboriginal Business Canada 50,000 50,163 (163) Human Resources Development Canada National Accord 393, ,093 - Youth Intervenor 120, ,062 (2,771) Aboriginal Human Resources Development Program 124, ,921 - Canadian Heritage Translation Services 40,000 40,010 (10) Aboriginal Language Initiatives 3,690,000 3,690,000 - Other Pluralism Conference 10,000 28,450 (18,450) Governance Act Initiative 1, ,460 (129,888) Resource Center 6,292-6,292 Fiscal Relations 16,250-16,250 Environment 10,211-10,211 Total revenue and expenses $ 12,303,484 $ 12,372,887 $ (69,403) 18