CONTINENTAL AUTOMATED BUILDINGS ASSOCIATION FINANCIAL STATEMENTS JUNE 30, 2018

Transcription

1 CONTINENTAL AUTOMATED BUILDINGS ASSOCIATION FINANCIAL STATEMENTS JUNE 30, 2018 CONTENTS INDEPENDENT AUDITORS' REPORT FINANCIAL STATEMENTS STATMENT OF FINANCIAL POSITION 1 STATEMENT OF CHANGES IN NET ASSETS 2 STATEMENT OF OPERATIONS 3 STATEMENT OF CASH FLOWS 4 NOTES TO FINANCIAL STATEMENTS 5

2 INDEPENDENT AUDITORS' REPORT To the Members of the: CONTINENTAL AUTOMATED BUILDINGS ASSOCIATION Report on the Financial Statements We have audited the accompanying financial statements of the CONTINENTAL AUTOMATED BUILDINGS ASSOCIATION, which comprise the Statement of Financial Position as at June 30, 2018, 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. Auditors' 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 association'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 association'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 the CONTINENTAL AUTOMATED BUILDINGS ASSOCIATION as at June 30, 2018, and its financial performance and its cash flows for the year then ended in accordance with Canadian accounting standards for notfor-profit organizations. Parker Prins Lebano Chartered Professional Accountants Professional Corporation Authorized to practice public accounting by the Chartered Professional Accountants of Ontario Ottawa, Ontario September 28, 2018

3 STATEMENT OF FINANCIAL POSITION AS AT JUNE 30, 2018 ASSETS CURRENT ASSETS Cash $ 407,499 $ 408,875 Accounts receivable 117,606 77,035 Prepaid expenses 8,793 9,142 Interest receivable 3,581 2, , ,215 CAPITAL ASSETS (note 5) 15,866 21,262 INVESTMENTS (note 4) 262, ,828 LIABILITIES $ 815,828 $ 737,305 CURRENT LIABILITIES Accounts payable and accrued liabilities $ 93,093 $ 130,587 Deferred revenue 200, ,485 NET ASSETS 293, ,072 UNRESTRICTED NET ASSETS 506, ,971 INVESTED IN CAPITAL ASSETS 15,866 21, , ,233 $ 815,828 $ 737,305 APPROVED BY: Director President & CEO The accompanying notes are an integral part of the financial statements. 1

4 STATEMENT OF CHANGES IN NET ASSETS FOR THE YEAR ENDED JUNE 30, 2018 UNRESTRICTED NET ASSETS Balance, beginning of year $ 440,972 $ 319,226 Excess of revenue over expenditures 60, ,097 Add: amortization 6,153 4,962 Less: amount invested in capital assets (757) (17,314) Balance, end of year $ 506,476 $ 440,971 INVESTED IN CAPITAL ASSETS Balance, beginning of year $ 21,262 $ 8,910 Invested during the year ,314 Less:amortization (6,153) (4,962) Balance, end of year $ 15,866 $ 21,262 The accompanying notes are an integral part of the financial statements. 2

5 STATEMENT OF OPERATIONS FOR THE YEAR ENDED JUNE 30, 2018 REVENUE Memberships - renewal $ 594,380 $ 657,536 Memberships - new 206, ,193 Publications 67,661 43,090 Interest 5,073 3,252 Forum revenue - 130,737 Other revenue 3,533 2,996 Project administration 100,541 76, ,018 1,035,561 EXPENDITURE Amortization of capital assets 6,153 4,962 Consulting fees 43,872 4,150 Insurance 2,899 3,167 Office 38,422 31,125 Printing and postage 35,015 32,424 Audit and legal 11,224 36,646 Bank and administration fees 22,151 17,940 Professional development 338 1,346 E-business 56,184 53,853 Special events 28,749 78,817 Rent 37,971 37,051 Travel 79,687 65,089 Salaries and benefits 555, , , ,464 EXCESS OF REVENUE OVER EXPENDITURE - OPERATIONS 60, ,097 COMPLETED PROJECT NET SURPLUS (note 6) - - EXCESS OF REVENUE OVER EXPENDITURE $ 60,108 $ 134,097 The accompanying notes are an integral part of the financial statements. 3

6 STATEMENT OF CASH FLOWS FOR THE YEAR ENDED JUNE 30, 2018 CASH FLOWS FROM (USED FOR) OPERATING ACTIVITIES: Excess of revenue over expenditure $ 60,108 $ 134,097 Add items not affecting cash: Amortization of capital assets 6,153 4,962 Changes in non-cash working capital: Accounts receivable (40,571) 14,810 Prepaid expenses 349 (496) Interest receivable (1,418) 265 Accounts payable and accrued liabilities (37,494) 76,868 Deferred revenue 55,908 (83,694) 43, ,812 CASH FLOWS USED FOR INVESTING ACTIVITIES: Additions to capital assets (757) (17,314) Purchase of investments (interest reinvested) (43,654) (3,517) (44,411) (20,831) (DECREASE) INCREASE IN CASH (1,376) 125,981 CASH, BEGINNING OF YEAR 408, ,894 CASH, END OF YEAR $ 407,499 $ 408,875 The accompanying notes are an integral part of the financial statements. 4

7 NOTES TO FINANCIAL STATEMENTS JUNE 30, GENERAL INFORMATION Continental Automated Buildings Association was incorporated without share capital under Part II of the Canada Companies Act on October 28, The not-for-profit industry association is dedicated to the international advancement of connected home and intelligent building technologies. 2. SIGNIFICANT ACCOUNTING POLICIES CAPITAL ASSETS Capital assets are recorded at cost. The association provides for amortization using the following methods at rates designed to amortize the cost of the capital assets over their useful lives. One-half the normal amortization is taken in the year of acquisition. The annual rates and methods are as follows: Computer equipment Equipment 30% declining balance 20% declining balance 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. Membership revenues are recognized in full at the time of payment as the risks and rewards of the membership are considered to have been conferred upon initiation. Endowment contributions are recognized as direct increases in net assets. INCOME TAXES The association is exempt from income tax under provisions related to not-for-profit corporations. USE OF ESTIMATES Preparation of these financial statements requires management to make certain estimates and assumptions that affect amounts reported and disclosed in the financial statements and related notes. Actual amounts could differ from those estimates. 3. FINANCIAL INSTRUMENTS The association's financial instruments consist of cash, investments, accounts receivable, accounts payable and accrued liabilities. The book values of these financial instruments approximate their fair values due to their short-term nature. Unless otherwise noted in these financial statements, it is management's opinion that the association is not exposed to significant interest, currency, credit, liquidity or cash flow risk arising from its financial instruments. 4. INVESTMENTS The association invests in cash or cash-type investments. Investments are recorded at cost which approximate market value. 5

8 NOTES TO FINANCIAL STATEMENTS (continued) JUNE 30, CAPITAL ASSETS Accumulated Net Book Net Book Cost Amortization Value Value Computer equipment $ 63,176 $ 50,285 $ 12,891 $ 18,138 Equipment 11,450 8,475 2,975 3,124 $ 74,626 $ 58,760 $ 15,866 $ 21, PROJECTS MDU Landmark 2 - funding received in current year $ - $ 83,195 MDU Landmark 2 - funding deferred in prior year 9,902 76,921 MDU Landmark 2 - total funding 9, ,116 MDU Landmark 2 - expenses in current year - 150,214 MDU Landmark 2 - administration fee recognized 9,902 - MDU Landmark 2 - funding deferred to following year $ - $ 9,902 NRC Project - funding received in current year $ - $ - NRC Project - funding deferred in prior year - 16,604 NRC Project - total funding - 16,604 NRC Project - expenses in current year - 16,604 NRC Project - funding deferred to following year $ - $ - IBIoT Project - funding received in current year $ - $ 101,775 IBIoT Project - funding deferred in prior year - 126,849 IBIoT Project - total funding - 228,624 IBIoT Project - expenses in current year - 228,624 IBIoT Project - funding deferred to following year $ - $ - IBDI Project- funding received in current year $ 119,821 $ 105,214 IBDI Project - funding deferred in prior year - - IBDI Project - total funding 119, ,214 IBDI Project - expenses in current year 119,821 40,382 IBDI Project - funding deferred to following year $ - $ 64,832 NRC Project 2 - funding received in current year $ 19,752 $ - NRC Project 2 - funding deferred in prior year - - NRC Project 2 - total funding 19,752 - NRC Project 2 - expenses in current year - - NRC Project 2- funding deferred to following year $ 19,752 $ - 6

9 NOTES TO FINANCIAL STATEMENTS (continued) JUNE 30, PROJECTS (continued) Monetization of Intelligent Buildings - funding received in current year $ 185,762 $ - Monetization of Intelligent Buildings - funding deferred in prior year - - Monetization of Intelligent Buildings - total funding 185,762 - Monetization of Intelligent Buildings - expenses in current year 46,708 - Monetization of Intelligent Buildings - funding deferred to following year$ 139,054 $ - CHER Project - funding received in current year $ 48,812 $ 70,643 CHER Project - funding deferred in prior year 69,752 - CHER Project - total funding 118,564 70,643 CHER Project - expenses in current year 76, CHER Project - funding deferred to following year $ 41,587 $ 69, COMMITMENTS The association has entered into various contractual obligations for office space, photocopiers and web hosting services. The total obligations over the next five years are as follows: 8. COMPARATIVE FIGURES 2019 $ 26, $ 4, $ 3, $ 3, $ 2,535 The comparative figures presented for the year ended June 30, 2017 have been re-formatted to conform to the current year's presentation. 7