TECHNICAL TRAINING GROUP (STRATFORD & AREA) FINANCIAL STATEMENTS MARCH 3I,2OI3
Farnme & Co. I) t. o.f t'r.( lo,: tt I (. o rp (t rtt I i () )1 a'}i \R'Tt_lit:D \c(-(jl \ I \\ I \ Ki:i-i ii -\ \i:fb. Ir \l,rrtr. C.\ :t \\ 1l) \ ilt- \\ u \i.,rl ( \ tii,r\ \RI) \l Lt\st_\t \\. li \l.rrt, r riri:l Rlj\ R \hi ilo\\'!l \ 1l \ ( \ ir \\Ki,l\ Ii I \\1\11:. il ll \ l\l l:il \l)i-l \ I \\ \1.\l:ll-. il \ \1 \.. \ f i:l'1 ll:\ \ \\ j)l:\ iil:\(ll1- ll \... i']i:l i:ii I) ]-llil( k\1 \\ Ii \. L.\ \Tl:l'lil:\ I \\ \Ri). B \. \1 \.. (- \ l\'\\ ii \\ I ii Il. \ e \ \11(-ii \i i i' il I \ii!\i('liir\(o ir \ I-( i\l (-\ (-\ (\ INDEPENDENT AUDITORS' REPORT To the Members of Technical Training Group (Stratford & Area) Stratford, Ontario Report on the Financial Statements We have audited the accompanying financial statements of Technical Training Group (Stratford & Area), which comprise the statement of financial position as at March 31, 2013 and the statements of operations, surplus 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 controls as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or eror. 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 auditors' 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 intemal controls 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 controls, 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 qualified audit opinion.
INDEPENDENT AUDITORS' REPORT (CONTINUED) Basis for Qualified Opinion In common with many not-for-profit organizations, the organization derives cash revenue, the completeness of which is not susceptible to satisfactory audit verification. Accordingly, our verification of these revenues was limited to the amounts recorded in the records of the organization. Therefore, we were not able to determine whether any adjustments might be necessary to revenue, excess of revenue over expenditures, cash flows from operations, assets and surplus. Qualified Opinion ln our opinion, except for the possible effects of the matter described in the Basis for Qualified Opinion paragraph, the financial statements present fairly, in all material respects, the financial position of Technical Training Group (Stratford & Area) as at March 3lr 2013 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. Comparative Information Without modiffing our opinion, we draw attention to Note 2 to the financial statements which describes that Technical Training Group (Stratford & Area) adopted Canadian accounting standards for not-for-profit organizations on April I, 2012 with a transition date of April 1,2011. These standards were applied retrospectively by management to the comparative information in these financial statements, including the statement of financial position as at March 3L, 2012 and April 1, 201 i and the statements of operations, surplus and cash flows for the year ended March 31, 2072 and related disclosures. We were not engaged to report on the restated comparative information and, as such, it is unaudited. Stratford, Ontario Jane26,2013 Tat'"-..,..--o, q' Za.. Professional Corporation Chartered Accountants Authorized to practise public accounting by The Institute of Chartered Accountants of Ontario
Statement of Financial Position As at March 31,2013 ASSETS Current Assets Cash lnvestment savings account Accounts receivable HST receivable Prepaid expenses $ 67,285 23,808 tl,456 15,081 5.588 2013 2012 s 123.218 $ 34,630 28,508 28,244 18,078 2.948 $ 112.408,_ Current Liabilities Accounts payable and accrued liabilities Deferred revenue LIABILITIES 34,044 38.995-73,039 33,607 28.743 62.350 SURPLUS Unrestricted Surplus 50.179 50.058 s-@l! $-L148 Approved on Behalf of the Board: Director (See Accompanying Notes to the Financial Statements)
Statement of Surplus Balance - beginning of year Excess ofrevenue over expenditures for the year Balance - end ofyear $ 50,058 t2l 2013 s 50.179 2012 $ 40,191 9.867 s.g s0.058 (See Accompanying Notes to the Financial Statements)
Statement of Operations 2013 2012 Revenue Welding apprenticeship (Schedule I ) Pre-apprenticeship training Apprenticeship enhancement funding Program Tuition Books and supplies ED tunding Libro grant Town of St. Marys lnterest Miscellaneous s 140,873 40,487 38,146 7,800 51,458 :''no 468 8.375 s 293,147 $ 126,965 16,343 30,207 4,330 t02,660 2,660 6,000 10,000 2,000 568 7.997 309.730 Expenditures Welding apprenticeship (Schedule 1) Administrative Advertising Bookkeeping fees Capital purchases Co-ordinator fees Professional fees Instructor fees Insurance Meetings Office Facility Supplies, materials, tools Travel Web design Project support Interest Bad debt (recovery) 136,841 24,894 I,lt6 3,967 38,146 2,909 46,,133 1,633 1,257 2,838 6,160 21,866 L,423 993 500 110 2.240 293.026 119,475 23,428 3,072 4,617 30,319 2,619 2,325 71,779 1,802 1,352 5,009 3,840 10,703 2,938 166 16,500 90 (111) 299.863 Excess of revenue over expenditures for the year $ 12L $,- 9.867 (See Accompanying Notes to the Financial Statements)
Statement of Cash Flows Cash Provided By (Used In): Operating Activities Excess ofrevenue over expenditures for the year $ Net changes in non-cash current operating accounts Decrease (increase) in accounts receivable 16,788 (18,172) Decrease (increase) in HST receivable 2,997 (6,597) Decrease (increase) in prepaid expenses (2,640) 5,894 lncrease (decrease) in deferred grants L0r252 (3,757) lncrease (decrease) in accounts payable and accrued liabilities 437 11'095 Increase (decrease) in cash and cash equivalents $ 27'955 (1'670) Cash and cash equivalents - beginning of year 63.138 64.808 Cash and cash equivalents - end of year $-L0.23. $-63.13-E 2013 Cash and cash equivalents consist of cash on hand and balances with bank. Cash and cash equivalents comprise the following balance sheet amounts: Cash Investment savings account tzt 2012 $ 9,867 61,285 34,630 23.808 28.508 s_9u93, $_63.13.E (See Accompanying Notes to the Financial Statements)
Notes to the Financial Statements 1. 2. Purpose The Technical Training Group was incorporated by letters patent under the Ontario Corporations Act on April 5, 2007 as a not-for-profit organization. The purpose of the organization is to facilitate the delivery of local market-driven training to Stratford and area businesses. Basis of Accounting On April l,2ol2, the organization elected to apply the standards in Part III of the CICA Accounting Handbook - Accounting Standards for not-for-profit organizations. These financial statements are the first financial statements for which the organization has applied these standards and have been prepared in accordance with Section 1501, First-Time Adoption. The effective date of transition to this basis of accounting is April 1., 2011. The transition to this basis of accounting resulted in no changes to the balance sheet at the date of transition or to net revenue over expenditures for the year ended March 31,2012. 3. Summary of Significant Accounting Policies These financial statements have been prepared from information available within the guidelines of Canadian accounting standards for not-for-profit organizations summarized below: (a) (b) (c) (d) Capital Expenditures Under Canadian accounting standards for not-for-profit organizations, purchases of a capital nature are recorded as property, plant and equipment and amortized over the useful lives of the assets. However, an acceptable alternative for non-profit and charitable organizations with revenues under $ 500,000, is to show the purchases of properfy, plant and equipment as expenses in the year in which they are incurred. The organization follows this alternative method of accounting for purchases of a capital nature. In the year ended March 31,2013, the organization purchased and charged to expense items of a capital nature totalling $ 38,146 (2012 - $ 30,319)' Revenue Recognition The deferral method of accounting is used for contributions. Restricted contributions are recognized in the year in which the related expenses are incurred. Unrestricted contributions are recognized as revenue when received or receivable if the amount can be reasonably estimated and collection is reasonably assured. Use of Estimates Preparation of financial statements in conformity with Canadian accounting standards for not-for-profit organizations requires management to make estimates and assumptions that could affect amounts reported as assets, liabilities, revenue and expenditures. Due to measurement uncertainty, results could differ from those estimates. Financial Instruments Financial instruments are items which are cash, rights to receive cash or obligations to pay cash at a future date. Unless otherwise noted, it is management's opinion that the organization is not exposed to significant interest, currency or credit risks arising from financial instruments, The fair value of these instruments approximate their carrying value.
(Schedule 1) Technical Training Group (Stratford & Area) Schedule of Operations for Welding Apprenticeship Programs Revenue MTCU grants Tuition Books and supplies Expenditures Administrative Advertising Bookkeeping fees Co-ordinator fees Professional fees Instructor fees Insurance Meetings Office Facility Supplies, materials, tools Travel Interest Bxcess of revenue over expenditures for the year $ 110,473 18,500 11.900 14,792 1,804 2,818 10,421 2,548 39,301 1,500 109 8,395 25,011 28,301 1,838 3 2013 2012 $ 100,165 15,700 1 1.100 $ 140,873 126.965 13,644 7,182 3,124 9,408 1,573 32,632 1,220 112 5,644 21,432 27,352 2,152 136.841 Ts"47s s 4.032 $ : 7.490