LOCAL ENHANCEMENT AND APPRECIATION OF FORESTS

Transcription

1 LOCAL ENHANCEMENT AND APPRECIATION OF FORESTS FINANCIAL STATEMENTS NOVEMBER 30, 2014

2 C H A R T E R E D A C C O U N T A N T S INDEPENDENT AUDITOR'S REPORT To the Members, Local Enhancement and Appreciation of Forests We have audited the accompanying financial statements of Local Enhancement and Appreciation of Forests which comprise the statement of financial position as at November 30, 2014, and the statement of operations and change in net assets 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. Auditor's Responsibility 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 comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements present fairly, in all material respects, the financial position of Local Enhancement and Appreciation of Forests as at November 30, 2014 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. Chartered Accountants Licensed Public Accountants January 27, 2015 Toronto, Ontario 187 Gerrard Street East Toronto Canada M5A 2E5 Telephone 416/ Facsimile 416/

3 STATEMENT OF FINANCIAL POSITION AS AT NOVEMBER 30, 2014 ASSETS Current assets Cash $ 440,362 $ 440,634 Accounts receivable Prepaid insurance 2,500 2,500 LIABILITIES AND NET ASSETS $ 443,201 $ 443,757 Current liabilities Accounts payable and accrued liabilities $ 1,900 $ 1,971 Amounts payable to governments 11,492 4,091 Deferred contributions and revenue (note 3) 200, , , ,987 Net assets Unrestricted 229, ,770 $ 443,201 $ 443,757 Approved on behalf of the Board:, Director, Director see accompanying notes Page 1

4 STATEMENT OF OPERATIONS AND CHANGES IN NET ASSETS FOR THE YEAR ENDED NOVEMBER 30, 2014 REVENUE Grants (note 4) $ 352,741 $ 402,375 Project 119, ,588 Donations and fundraising 8,417 2,948 Interest 3,686 3, , ,698 EXPENSES Direct project costs Human resources 354, ,456 Other 80,103 82,562 Rent 15,861 15,661 Administration 10,304 8,863 Communications 5,304 6,843 Professional fees 4,805 1,648 IT systems development 3,386 4,466 Board and staff development 3,279 6,048 Insurance 3,072 3, , ,553 EXCESS OF REVENUE OVER EXPENSES FOR THE YEAR 3,634 19,145 Net assets, beginning of year 225, ,625 NET ASSETS, END OF YEAR $ 229,404 $ 225,770 see accompanying notes Page 2

5 STATEMENT OF CASH FLOWS FOR THE YEAR ENDED NOVEMBER 30, 2014 OPERATING ACTIVITIES Excess of revenue over expenses for the year $ 3,634 $ 19,145 Net change in non-cash working capital items (see below) (3,906) 7,440 NET INCREASE IN (DECREASE) CASH FOR THE YEAR (272) 26,585 Cash, beginning of year 440, ,049 CASH, END OF YEAR $ 440,362 $ 440,634 Net change in non-cash working capital items: Decrease (increase) in current assets- Accounts receivable $ 284 $ (349) HST recoverable 2,473 Increase (decrease) in current liabilities- Accounts payable and accrued liabilities 7,330 (11,584) Deferred contributions and revenue (11,520) 16,900 $ (3,906) $ 7,440 see accompanying notes Page 3

6 NOTES TO THE FINANCIAL STATEMENTS NOVEMBER 30, 2014 Local Enhancement and Appreciation of Forests is a not-for-profit organization incorporated in the Province of Ontario without share capital. The organization is exempt from income tax in Canada as a notfor-profit organization under Section 149(1)(L) of the Income Tax Act (Canada). The organization's purpose is to raise awareness about the value of urban forests and to foster a sense of community ownership of our urban forests, both on public and private lands and to implement projects and offer tools and resources that support diverse individuals and communities in urban forest stewardship efforts. 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Management is responsible for the preparation of these financial statements in accordance with Canadian accounting standards for not-for-profit organizations. Outlined below are those policies considered particularly significant: Revenue recognition The principal sources of revenue and recognition of these revenues for financial statement purposes are as follows: i) The organization earns project revenue primarily from services delivered under the backyard tree planting program and from workshops and other training related services provided to customers. Revenue from these services is recognized at the time the services are completed for customers and/or delivered to training participants, if the amount to be received can be reasonably estimated and collection is reasonably assured. ii) The organization follows the deferral method of revenue recognition for contributions. Externally restricted contributions, such as grants and restricted donations, related to current expenses are recognized as revenue in the current year. Externally restricted contributions received in the year for expenses to be incurred in the following year are recorded as deferred revenue. Externally restricted contributions related to the purchase of capital assets are recorded as revenue in the same period the related capital assets are charged to operations. iii) Unrestricted fundraising and donation revenue is recorded when funds are received. Donated materials and services which are normally purchased by the organization are not recorded in the accounts. Volunteers contribute their time to assist the organization in delivering its services. Because of the difficulty of determining the fair value, contributed services are not recognized in the financial statements. iv) Investment income is recognized when earned on an accrual basis. Capital assets Capital assets are recorded at cost. Amortization is provided annually at rates calculated to write-off the assets over their estimated useful lives. Use of estimates The preparation of these financial statements requires management to make estimates and assumptions that affect the reported amount of assets, liabilities, revenues and expenses. Specifically, significant assumptions have been made in arriving at the estimate of deferred revenue at the year end. Estimates are reviewed periodically, and, as adjustments become necessary, they are reported in the period in which they become known. Page 4

7 NOTES TO THE FINANCIAL STATEMENTS NOVEMBER 30, FINANCIAL INSTRUMENTS AND RELATED FINANCIAL RISKS The organization s financial instruments include cash, accounts receivable, and accounts payable and accrued liabilities. Cash is measured at fair value. All other financial instruments are initially valued at fair value and subsequently measured at amortized cost, net of any provisions for impairment. The organization expects to meet its financial obligations for payment of accounts payable and accrued liabilities through donations and cash flows from operations. It is management s opinion that the organization's financial instruments are not exposed to significant financial risks. 3. DEFERRED CONTRIBUTIONS AND REVENUE Deferred contributions and revenue is composed of the following: Grants York Region and Town of Markham $ 100,000 $ 100,000 Ontario Power Generation 70,000 85,000 The Ontario Trillium Foundation 20,000 Toronto Hydro 20,000 Tree planting deposits 10,405 6,925 Deferred contributions and revenue, end of year $ 200,405 $ 211,925 Continuity of deferred contributions and revenue for the year is as follows: Deferred contributions and revenue, beginning of year $ 211,925 $ 195,025 Add cash received in year 341, ,275 Less amounts recognized in period (note 4) (352,741) (402,375) Deferred contributions and revenue, end of year $ 200,405 $ 211, GRANTS Grants recognized in the year were as follows: Ontario Power Generation $ 140,000 $ 170,000 York Region and Town of Markham 110,000 80,000 The Ontario Trillium Foundation 38,600 58,600 Toronto Hydro Corporation 35,000 10,000 Other 21,725 31,251 City of Toronto - Live Green Toronto 7,416 52,524 $ 352,741 $ 402,375 Page 5

8 NOTES TO THE FINANCIAL STATEMENTS NOVEMBER 30, DONATED MATERIALS AND SERVICES The organization received the following donated materials and services in the year ended November 30, These donations have not been recorded as either revenue or expenses in the statement of operations for that year: City of Toronto - Tree storage facility and equipment usage $ 10,000 $ 10, LEASE COMMITMENTS The organization licences space under a lease expiring December 31, Minimum payments over the term of the licence are as follows: 2015 $ 16, , , , ,431 $ 68,116 Page 6