CALGARY SOUTH WEST UNITED SOCCER ASSOCIATION

Transcription

1 Financial Statements of CALGARY SOUTH WEST UNITED SOCCER

2 KPMG LLP 205 5th Avenue SW Suite 3100 Calgary AB T2P 4B9 Telephone (403) Fax (403) INDEPENDENT AUDITORS' REPORT To the Members of Calgary South West United Soccer Association We have audited the accompanying financial statements of Calgary South West United Soccer Association, which comprise the statements of financial position as at November 30, 2016 and November 30, 2015, the statements of operations, changes in net assets and cash flows for the years then ended, and notes, comprising 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. Auditors Responsibility Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits 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. KPMG LLP is a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ( KPMG International ), a Swiss entity. KPMG Canada provides services to KPMG LLP.

3 An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on our 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, we consider 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 in our audits 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 Calgary South West United Soccer Association as at November 30, 2016 and November 30, 2015, and its results of operations and its cash flows for the years then ended in accordance with Canadian accounting standards for not-for-profit organizations. Chartered Professional Accountants August 22, 2017 Calgary, Canada

4 Statements of Financial Position As at November 30, 2016 and 2015 Assets Current assets: Cash $ 882,756 $ 810,888 Term deposits (note 3) 196, ,194 Facility fund term deposits (notes 3 and 4) 31,312 Prepaid expenses 193, ,286 1,304,304 1,205,368 Due from related parties (note 7) 928 Capital assets (note 5) 79, ,694 Liabilities $ 1,385,115 $ 1,338,062 Current liabilities: Accounts payable and accrued liabilities (note 6) $ 76,319 $ 157,785 Due to related parties (note 7) 22,734 Deferred revenue 486, ,727 Deferred contributions (note 8) 15,407 61, , ,064 Net assets: Internally restricted net assets (note 3) 31,312 Unrestricted net assets 775, , , ,998 Commitments (note 9) Subsequent event (note 10) See accompanying notes to financial statements. Approved on behalf of the Board of Directors: $ 1,385,115 $ 1,338,062 Director Director

5 Statements of Operations Revenue (note 12) $ 1,914,431 $ 1,930,368 Expenses: Amortization 55,457 54,739 Calgary Minor Soccer Association registration fees 346, ,844 Facility and equipment expenses (note 13) 400, ,901 Office and general expenses (note 14) 132, ,425 Salaries and wages 456, ,026 Other soccer expenses (note 15) 277, ,015 1,668,857 1,607,950 Excess of revenues over expenses $ 245,574 $ 322,418 See accompanying notes to financial statements.

6 Statements of Changes in Net Assets Internally restricted Unrestricted Total Total Balance, beginning of year $ $ 560,998 $ 560,998 $ 238,580 Excess of revenues over expenses 245, , ,418 Transfer to restricted funds (note 4) 31,312 (31,312) Balance, end of year $ 31,312 $ 775,260 $ 806,572 $ 560,998 See accompanying notes to financial statements.

7 Statements of Cash Flows Cash provided by (used in): Operations: Excess of revenues over expenses $ 245,574 $ 322,418 Items not requiring an outlay of cash: Amortization 55,457 54, , ,157 Change in non-cash working capital: Accounts receivable 9,784 Prepaid expenses 6,583 (55,427) Accounts payable and accrued liabilities (81,466) 58,207 Deferred revenue (47,910) 47,776 Deferred contributions (46,411) 30, , ,296 Financing: Advances to related parties (23,662) (9,455) Investments: Additions to capital assets (2,646) (87,654) Proceeds from redemption of term deposits 194, ,799 Additions to term deposits (227,845) (194,194) (36,297) (90,049) Net increase in cash 71, ,792 Cash, beginning of year 810, ,096 Cash, end of year $ 882,756 $ 810,888 See accompanying notes to financial statements.

8 Notes to Financial Statements 1. Purpose of organization: Calgary South West United Soccer Association (the Association ), incorporated under the Societies Act of the Province of Alberta on November 28, 2002, provides organization, facilities, and training for children (under 18) to play soccer within the South West quadrant of the city of Calgary. The Association is exempt from income taxes as defined in paragraph 149(1)(l) of the Income Tax Act. 2. Significant accounting policies: (a) Basis of presentation and use of estimates: The financial statements of the Association have been prepared by management in accordance with Canadian accounting standards for not-for-profit organizations. The preparation of financial statements requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Significant estimates and assumptions include the estimated useful lives of capital assets. Actual results could differ from those estimates. (b) Revenue recognition: The Association follows the deferral method of accounting for contributions. Restricted contributions are recognized as revenue in the year in which the related expenses are incurred. Unrestricted contributions are recognized as revenue when received or receivable if the amount to be received can be reasonably estimated and collection is reasonably assured. Indoor and outdoor registration fees are deferred and amortized on a monthly basis into revenue over the period of the indoor or outdoor season. Revenue earned for camps, training and volunteer fees are recognized as revenue when service is rendered and if the amount to be received can be reasonably assured. (c) Casino and bingo revenue: Casino and bingo revenue are externally restricted as stipulated by the Alberta Gaming and Liquor Commission ( AGLC ). (d) Deferred revenue: Deferred revenue is comprised of indoor registration and training fees received in advance for the following season.

9 Notes to Financial Statements, page 2 2. Significant accounting policies (continued): (e) Capital assets: Capital assets are recorded at cost and are amortized over their estimated useful lives using the following rates and methods: Assets Basis Years Office equipment Declining balance method 20% Equipment Straight-line method 3 or 10 years Uniforms Straight-line method 3 or 5 years Donated capital assets are initially recorded at the estimated fair value. If the estimated fair value cannot be reasonably determined, such donations are not recorded. (f) Long-lived assets: Long-lived assets consist of capital assets. The Association performs impairment testing on long-lived assets held for use whenever events or circumstances indicate that the carrying value of an asset may not be recoverable. Impairment losses are recognized when undiscounted cash flows from its use and disposal are less than its carrying amount. Impairment is measured as the amount by which its carrying value exceeds its fair value and is included in the statement of operations for the year. (g) Donated services: A substantial number of unpaid volunteers have made significant contributions of their time to develop the Association s programs. The value of this contributed time is not reflected in these financial statements since it is not susceptible to objective measurement or valuation.

10 Notes to Financial Statements, page 3 2. Significant accounting policies (continued): (h) Financial instruments: Financial instruments are recorded at fair value on initial recognition. Free standing derivative instruments that are not in a qualifying hedging relationship and equity instruments that are quoted in an active market are subsequently measured at fair value. All other financial instruments are subsequently recorded at cost or amortized cost, unless management has elected to carry the instruments at fair value. The Association has not elected to carry any such other financial instruments at fair value. Transaction costs incurred on the acquisition of financial instruments measured subsequently at fair value are expensed as incurred. All other financial instruments are adjusted by transaction costs incurred on acquisition and financing costs, which are amortized using the effective interest rate method. Financial assets are assessed for impairment on an annual basis at the end of the fiscal year if there are indicators of impairment. If there is an indicator of impairment, the Association determines if there is a significant adverse change in the expected amount or timing of future cash flows from the financial asset. If there is a significant adverse change in the expected cash flows, the carrying value of the financial asset is reduced to the highest of the present value of the expected cash flows, the amount that could be realized from selling the financial asset or the amount the Association expects to realize by exercising its right to any collateral. If events and circumstances reverse in a future period, an impairment loss will be reversed to the extent of the improvement, not exceeding the initial carrying value.

11 Notes to Financial Statements, page 4 3. Term deposits: Term deposits consist of guaranteed investment certificates maturing within the next year. These investments have yields ranging from 0.65% to 1.75% ( % to 1.75%). 4. Internally restricted net assets: In January 2016, the Association started internally restricting funds for the future financing of indoor and outdoor soccer facilities. A portion of the registration fee from each team is transferred from the operating fund to the internally restricted facility fund based on age group, as determined by the Board of Directors and invested in term deposits. In 2016, $31,312 ( $nil) was transferred from the operating fund to the internally restricted facility fund. Facility fund, beginning of year $ $ Restricted funds from indoor and outdoor registration 31,312 $ 31,312 $ Facility fund term deposits $ 31,312 $ $ 31,312 $

12 Notes to Financial Statements, page 5 5. Capital assets: Accumulated Net book November 30, 2016 Cost amortization value Office equipment $ 10,393 $ 7,763 $ 2,630 Equipment 218, ,533 13,132 Uniforms 650, ,246 64,121 $ 879,425 $ 799,542 $ 79,883 Accumulated Net book November 30, 2015 Cost amortization value Office equipment $ 10,393 $ 7,106 $ 3,287 Equipment 216, ,238 22,781 Uniforms 650, , ,626 $ 876,779 $ 744,085 $ 132, Account payable and accrued liabilities: Included in accounts payable and accrued liabilities are government remittances payable of $15,389 ( $450), which include amounts payable for payroll related taxes. 7. Due from (to) related parties: Shawnee Community Association $ $ (6,166) Cedar Ridge Community Association 928 (5,091) South Four Community Association (5,114) Fish Creek Community Association (6,363) $ 928 $ (22,734) The Association is related to the above community associations by virtue of common board members. These transactions are in the normal course of operations and are measured at the exchange amount being the amount of consideration established and agreed to by the related parties.

13 Notes to Financial Statements, page 6 8. Deferred contributions: Deferred contributions consist of casino contributions and bingo contributions. Casino contributions relate to casino revenues externally restricted by the AGLC that relate to qualifying expenditures incurred in subsequent periods. The Association is eligible to participate in a casino every fifteen to eighteen months. The deferred bingo contributions relate to monthly bingo revenues which are also externally restricted by the AGLC to the same degree as the casino contributions. Deferred casino contributions: Deferred casino contributions, beginning of year $ 27,979 $ Casino contributions received 74,437 Amounts recognized as revenue (24,301) (46,458) Deferred casino contributions, end of year 3,678 27,979 Deferred bingo contributions: Deferred bingo contributions, beginning of year 33,839 31,019 Bingo contributions received 28,553 28,861 Amounts recognized as revenue (50,663) (26,041) Deferred bingo contributions, end of year 11,729 33,839 Deferred contributions, end of year $ 15,407 $ 61, Commitments: The Association sub-leases premises under a long-term lease that commenced on June 30, 2016 and expires on June 30, The annual commitments required over the course of the lease are as follows: 2017 $ 15, ,846

14 Notes to Financial Statements, page Subsequent event: The Association is currently negotiating a five year lease agreement for warehouse space in Southeast Calgary which will be used as a training facility. The lease is expected to commence on November 1, 2017 and annual rent over the course of the lease will range from $260,896 to $293,508 per annum. 11. Financial instruments and related risks: (a) Credit risk: The Association s cash and term deposits are held with reputable financial institutions. The maximum exposure to credit risk for cash and term deposits are equal to their total carrying value on the balance sheet. Credit risk relating to accounts receivable is minimized through internal credit reviews and other procedures. (b) Interest rate risk: Interest rate risk arises from the holding of term deposits. Term deposits held by the Association are purchased at fixed rates of interest ranging from 0.65% to 1.75% ( % to 1.75%) and as such, they are exposed to interest rate risk. (c) Liquidity risk: Liquidity risk is the risk that the Association will not be able to meet its liabilities as they fall due. Through its budgeting process, the Association aims to retain a sufficient cash position to manage liquidity.

15 Notes to Financial Statements, page Revenue Administration fees $ 3,503 $ 2,842 Bingo 50,663 26,041 Casino 24,301 46,458 Calgary South West United family membership 15,970 16,445 Donations 5,375 12,866 Fundraising 2,225 Gym recovery 3,354 Interest income 3,092 3,053 Registration fees, outdoors 794, ,940 Registration fees, indoors 629, ,991 Sponsorship 5,375 Summer/winter camps 31,115 24,119 Training fees 288, ,634 Volunteer fees 60,312 78,625 $ 1,914,431 $ 1,930, Facility and equipment expenses Equipment $ 131,295 $ 79,034 Field 44,808 63,731 Gymnasium 224, ,136 $ 400,757 $ 310, Office and general expenses Advertising $ 14,922 $ 21,682 Entertainment 7,613 4,685 Insurance 7,782 7,252 Interest and bank charges 863 1,021 Office 55,939 49,488 Online administrative charges 30,513 35,911 Professional fees 12,500 17,120 Miscellaneous 1,980 5,266 $ 132,112 $ 142,425

16 Notes to Financial Statements, page Other soccer expenses Coaches courses $ 6,025 $ 6,664 Community 36,253 54,452 Nick s Academy 124, ,455 Photographs 40,729 29,493 Referees 20,035 19,840 Team transfers (12,393) Tournaments and camps 50,100 49,504 $ 277,546 $ 368,015