MALAYSIAN SINGAPOREAN BRUNEIAN COMMUNITY Calgary, AB FINANCIAL STATEMENTS For the Year ended August 31, 2016 Prepared by: Paul Teoh CPA CA Calgary Alberta October 30, 2016
FINANCIAL STATEMENTS For the Year ended August 31, 2016 INDEX Page FINANCIAL STATEMENTS Statement of Financial Position 1 Statement of Changes in Members' Equity 2 Statement of Operations 3 Statement of Cash Flows 4 Notes to Financial Statements 5-9 Schedule of Revenue and Expenditure - General Operating Fund 10
STATEMENT OF FINANCIAL POSITION August 31, 2016 2015 General Operating Fund Casino Fund Scholastic Award Fund Total General Operating Fund Casino Fund Scholastic Award Fund Total ASSETS Current Assets Cash $ 44,563 $ 117,499 $ - $ Temporary investments 43,437 17,087 - Accounts receivable 7,799 - - Receivable from General Operating Fund - - 5,105 95,799 134,586 5,105 Capital Assets (note 2) 198,256 - - $ 294,055 $ 134,586 $ 5,105 $ 162,062 $ 45,267 $ 40,826 $ - $ 86,093 60,524 43,438 55,222-98,660 7,799 4,650 - - 4,650 5,105 - - 5,105 5,105 235,490 93,355 96,048 5,105 194,508 198,256 205,731 - - 205,731 433,746 $ 299,086 $ 96,048 $ 5,105 $ 400,239 LIABILITIES AND MEMBERS' EQUITY Current Accounts payable and accrued liabilities $ - $ - $ - $ - $ 898 $ - $ - $ 898 Payable to Scholastic Award Fund 5,105 - - 5,105 5,105 - - 5,105 5,105 - - Members' Equity General Operating Fund 288,950 - - Casino Fund - 134,586 - Scholastic Award Fund - - 5,105 288,950 134,586 5,105 $ 294,055 $ 134,586 $ 5,105 $ 5,105 6,003 - - 6,003 288,950 293,083 - - 293,083 134,586-96,048-96,048 5,105 - - 5,105 5,105 428,641 293,083 96,048 5,105 394,236 433,746 $ 299,086 $ 96,048 $ 5,105 $ 400,239 Approved on behalf of the Board: President Treasurer The accompanying notes and schedules are an integral part of these financial statements. 1.
STATEMENT OF CHANGES IN MEMBERS' EQUITY August 31, 2016 Members' Equity Beginning of Year Excess Revenue (Expenditure) Interfund Transfers End of Year (note 3) General Operating Fund $ 293,083 $( 35,553 ) $ 31,420 $ 288,950 Casino Fund 96,048 69,958 ( 31,420 ) 134,586 Scholastic Award Fund 5,105 - - 5,105 $ 394,236 $ 34,405 $ - $ 428,641 August 31, 2015 Members' Equity Beginning of Year Excess Revenue (Expenditure) Interfund Transfers End of Year (note 3) General Operating Fund $ 296,915 $( 38,657 ) $ 34,825 $ 293,083 Casino Fund 130,365 508 ( 34,825 ) 96,048 Scholastic Award Fund 4,894 211-5,105 $ 432,174 $( 37,938 ) $ - $ 394,236 The accompanying notes and schedules are an integral part of these financial statements. 2.
STATEMENT OF OPERATIONS For the year ended August 31, 2016 2015 2016 2015 2016 2015 2016 2015 General Operating Fund General Operating Fund Casino Fund Casino Fund Scholastic Award Fund Scholastic Award Fund Total Total Revenue Casino proceeds $ - $ - $ 70,023 $ - $ - $ - $ 70,023 $ - Donations 6,221 1,345 - - - 2,813 6,221 4,158 Events and functions 21,771 28,711 - - - - 21,771 28,711 Interest income 300 695-508 - - 300 1,203 Memberships 2,790 3,275 - - - - 2,790 3,275 Other income 9,033 4,295 - - - - 9,033 4,295 Rental income 1,700 800 - - - - 1,700 800 Contributions-in-kind - 10,000 - - - - - 10,000 41,815 49,121 70,023 508-2,813 111,838 52,442 Expenditure Annual general meeting - 1,829 - - - - - 1,829 Amortization 7,475 8,406 - - - - 7,475 8,406 Bank charges and interest 177 378 65 - - - 242 378 Committee meetings 113 243 - - - - 113 243 Club house expense 1,131 920 - - - - 1,131 920 Condo fees 15,447 15,447 - - - - 15,447 15,447 Dance costumes 2,163 1,702 - - - - 2,163 1,702 Donations 6,343 3,007 - - - - 6,343 3,007 Events and functions 21,494 28,953 - - - - 21,494 28,953 Insurance 2,085 2,123 - - - - 2,085 2,123 Materials and supplies 2,277 - - - - - 2,277 - Miscellaneous 1,049 - - - - - 1,049 - Newsletters 2,100 3,600 - - - - 2,100 3,600 Office 1,241 452 - - - - 1,241 452 Permits and licence - 164 - - - - - 164 Professional fees 1,800 10,900 - - - - 1,800 10,900 Rental 2,532 2,940 - - - - 2,532 2,940 Repairs and maintenance 3,124 550 - - - - 3,124 550 Scholarships and awards 50 - - - - 2,602 50 2,602 Sports and recreation 761 329 - - - - 761 329 Telephone and cable 728 692 - - - - 728 692 Utilities 5,278 5,143 - - - - 5,278 5,143 77,368 87,778 65 - - 2,602 77,433 90,380 Excess Revenue (Expenditure) $( 35,553 ) $( 38,657 ) $ 69,958 $ 508 $ - $ 211 $ 34,405 $( 37,938) The accompanying notes and schedules are an integral part of these financial statements. 3.
STATEMENT OF CASH FLOWS For the year ended August 31, 2016 2015 Cash Flows from Operating Activities Cash receipts from members and others $ 38,366 $ 47,833 Cash receipts from casino proceeds 70,023 - Cash payments to suppliers ( 70,856 ) ( 81,823) Interest received 300 1,203 37,833 ( 32,787) Cash Flows from Investing Activities Decrease (increase) in temporary investments 38,136 19,300 38,136 19,300 Net Increase (Decrease) in Cash Cash, beginning of year Cash, end of year $ 75,969 ( 13,487) 86,093 99,580 162,062 $ 86,093 The accompanying notes and schedules are an integral part of these financial statements. 4.
NOTES TO FINANCIAL STATEMENTS August 31, 2016 The Malaysian Singaporean Bruneian Community Association (the "Association") is a not-for-profit organization in Calgary Alberta. It is established under the Societies Act of Alberta. The Association is exempt for income tax purposes under Section 149 of the Income Tax Act. The mission of the Association: To promote and afford opportunity for social and recreational activities among members; To assist in the settlement of new residents from the home countries (Malaysia, Singapore and Brunei); To promote through cultural events understanding between our communities and the community at large, and; To provide a resource centre for use by our members and any interested parties 1. Significant Accounting Policies (a) Basis of Accounting These financial statements have been prepared in accordance with Canadian accounting standards for not-for-profit organizations. (b) Fund Accounting The Association follows the fund basis of accounting. Related revenue and expenditure are grouped into funds based on their purposes. The General Operating Fund (unrestricted) reports the assets, liabilities, capital acquisition plans, general revenue and expenditure of the Association. The fund may be used at the discretion of the Association. The Casino Fund (restricted) reports the assets, liabilities, revenue and expenditure of the Fund in accordance with specific guidelines as prescribed by the Alberta Gaming Commission. The Scholastic Award Fund (restricted) reports the assets, liabilities, revenue and expenditure relating to intended purposes of the Fund. (c) Cash and Cash Equivalents Cash includes cash and demand deposits. Cash equivalents includes highly liquid investments that can be readily converted into cash for a fixed amount and that matures less than one month from the date of acquisition. 5.
NOTES TO FINANCIAL STATEMENTS August 31, 2016 1. Significant Accounting Policies (Continued) (d) Revenue Recognition The Association follows the deferral method of accounting for contributions. Restricted funding is recognized in the year in which the related expenditures are incurred. Unrestricted funding is recognized as revenue when received or receivable if the collection of the amount to be received is reasonably assured. Funding received in advance of the related expenditures is recorded as deferred contributions of the appropriate fund. Contributions-in-kind is recognized as revenue only if the market value is readily available. (e) Capital Assets Purchased capital assets are recorded in the general operating fund at cost. Amortization expense is recorded in the general operating fund, over the estimated useful lives of the assets, using the following method and annual rates: Building 3% Straight Line Computer software 33% Straight Line Electronic and computer equipment 20% Straight Line Furniture and fixtures 10% Straight Line (f) Contributed Goods and Services The Committee records the fair market value of contributed goods and services only in the circumstances when the fair market value is determinable and when the goods and services would otherwise be purchased by the Committee. (g) Use of Estimates The preparation of financial statements in accordance with Canadian accounting standards for not-for-profit organizations with requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the year. Actual results could differ from those estimates. 6.
NOTES TO FINANCIAL STATEMENTS August 31, 2016 1. Significant Accounting Policies (Continued) (h) Financial Instruments - Recognition and Measurement The Association has elected the following balance sheet classifications with respect to its financial assets and financial liabilities: Cash and temporary investments are classified as assets held-for-trading and is subsequently measured at fair value with gains and losses arising from changes in the fair value recognized in net income in the period in which they arise. The estimated fair values of cash and temporary investments are assumed to approximate its carrying amount. Accounts receivable are classified as loans and receivables and are subsequently measured at amortized cost using the effective interest method. The amortized cost using the effective interest method approximates their fair values due to the short term nature. Accounts payable and accrued liabilities are classified as other financial liabilities and are subsequently measured at amortized cost using the effective interest method. At inception, the estimated fair values of accounts payable and accrued liabilities are assumed to approximate their carrying amounts. Unless otherwise noted, it is management's opinion that the Association is not exposed to significant interest, currency or credit risks arising from these financial instruments. 2. Capital Assets 2016 2015 Accumulated Net Net Cost Amortization Book Value Book Value Building $ 301,056 $ 104,859 $ 196,197 $ 203,723 Computer software 1,626 1,626 - - Electronic and computer equipment 17,870 17,870-52 Furniture and fixture 25,775 23,716 2,059 1,956 $ 346,327 $ 148,071 $ 198,256 $ 205,731 7.
NOTES TO FINANCIAL STATEMENTS August 31, 2016 3. Interfund Transfers During the year, funds were transferred from Casino Fund to General Operating Fund as follow: 2016 2016 2016 2015 Total Total Paid by Casino Fund Budget Actual Actual Actual Revenue Events and functions $ 28,700 $ 21,771 $ - $ - Interest income 700 300 - - Memberships 3,200 2,790 - - 32,600 24,861 - - Expenditure Bank charges and interest 380 177 120 98 Committee meetings 240 113 113 - Club house expense 900 1,131 1,105 300 Condo fees 15,447 15,447 15,447 15,447 Dance costumes 1,800 2,163 2,189 1,669 Donations 3,000 6,343 5,443 2,050 Events and functions 28,700 21,494 1,470 2,341 Insurance 2,123 2,085 2,085 2,123 Materials and supplies 2,000 2,277 - - Miscellaneous - 1,049 210 - Newsletters 3,600 2,100 2,100 3,300 Office 500 1,241 651 398 Professional fees 1,800 1,800 1,800 - Rental 2,500 2,532 3,036 - Repairs and maintenance 2,000 3,124 2,419 550 Scholarships and awards - 50-403 Sports and recreation 300 761 - - Telephone and cable 900 728 728 692 Utilities 5,500 5,278 5,278 5,143 Total Expenditure 71,690 69,893 44,194 34,514 Repaid to (received from) Casino Fund - - ( 12,774 ) 311 Excess Revenue (Expenditure) ( 39,090 ) ( 45,032 ) ( 31,420 ) ( 34,825) Paid by Casino Fund 31,420 31,420 - - $( 7,670 ) $( 13,612 ) $( 31,420 ) $( 34,825) Included in amount received from Casino Fund is $12,279 transferred from the General Bank Account to Casino Bank Account as required by Alberta Gaming and Liquor Commission (AGLC). 8.
NOTES TO FINANCIAL STATEMENTS August 31, 2016 4. Comparative Figures Certain figures presented for comparative purposes have been reclassified to conform with current year's presentation. 5. Financial Instruments and Risk Management The Association's financial instruments are exposed to certain risks, which include credit risk, market risk, interest rate risk and liquidity risk. Credit Risk - Credit risk refers to the risks that the members, the funding agencies or counter party to a financial instrument fail to discharge its contractual obligations. The Association is not exposed to these risks from these financial statements. Market Risk - Market risks is the risk that the fair value of financial instruments will fluctuate due to changes in market factors. Market risk includes fair value risk, interest rate risk and foreign currency risk. The Association is not exposed to these risks from its financial instruments. Liquidity Risk - Liquidity risk is the risk that the Association will not be able to meet its financial obligations as they fall due. The Association manages liquidity risk through the management of its capital structure. 6. Commitments As a result of an audit by the Alberta Gaming and Liquor Commission (AGLC), the Association is required to transfer a further two installments in the amount of $12,279 each starting February 2017 totaling $24,558 from the General Bank Account to the Casino Bank Account. 9.
SCHEDULE OF REVENUE AND EXPENDITURE - GENERAL OPERATING FUND For the year ended August 31, 2016 2015 2016 2015 2016 2015 2016 2015 Administration Club House Events & Functions Total Total Revenue Donations $ - $ 588 $ - $ - $ 6,221 $ 757 $ 6,221 $ 1,345 Events and functions - - - - 21,771 28,711 21,771 28,711 Interest income 300 695 - - - - 300 695 Memberships 2,790 3,275 - - - - 2,790 3,275 Other income 39 1,378-50 8,994 2,867 9,033 4,295 Rental income - - 1,700 800 - - 1,700 800 Contributions-in-kind - 10,000 - - - - - 10,000 3,129 15,936 1,700 850 36,986 32,335 41,815 49,121 Expenditure Annual general meeting - 1,829 - - - - - 1,829 Amortization - - 7,475 8,406 - - 7,475 8,406 Bank charges and interest 125 378 52 - - - 177 378 Committee meetings 113 243 - - - - 113 243 Club house expense - - 1,131 920 - - 1,131 920 Condo fees - - 15,447 15,447 - - 15,447 15,447 Dance costumes - - 1,712-451 1,702 2,163 1,702 Donations 5,443 3,007 - - 900-6,343 3,007 Events and functions - - - - 21,494 28,953 21,494 28,953 Insurance - - 2,085 2,123 - - 2,085 2,123 Materials and supplies - - 2,277 - - - 2,277 - Miscellaneous 710-25 - 314-1,049 - Newsletters 2,100 3,600 - - - - 2,100 3,600 Office 1,072 452 169 - - - 1,241 452 Permits and licence - - - - - 164-164 Professional fees 1,800 10,900 - - - - 1,800 10,900 Rental - - - - 2,532 2,940 2,532 2,940 Repairs and maintenance - - 3,124 550 - - 3,124 550 Scholarships and awards - - 50 - - - 50 - Sports and recreation - - 761 - - 329 761 329 Telephone and cable - - 728 692 - - 728 692 Utilities - - 5,278 5,143 - - 5,278 5,143 11,363 20,409 40,314 33,281 25,691 34,088 77,368 87,778 Excess Revenue (Expenditure) $( 8,234 ) $( 4,473 ) $( 38,614 ) $( 32,431 ) $ 11,295 $( 1,753 ) $( 35,553 ) $( 38,657) 10.