CANADIAN COUNCIL ON CONTINUING EDUCATION IN PHARMACY. Financial Statements Year Ended June 30, 2013

Transcription

1 CANADIAN COUNCIL ON CONTINUING EDUCATION IN Financial Statements

2 Management's Responsibility for Financial Reporting The financial statements of Canadian Council on Continuing Education in Pharmacy have been prepared in accordance with Canadian Accounting Standards for Not-for-Profit Organizations. When alternative accounting methods exist, management has chosen those it deems most appropriate in the circumstances. These statements include certain amounts based on management's estimates and judgments. Management has determined such amounts based on a reasonable basis in order to ensure that the financial statements are presented fairly in all material respects. The integrity and reliability of Canadian Council on Continuing Education in Pharmacy 's reporting systems are achieved through the use of formal policies and procedures, the careful selection of employees and an appropriate division of responsibilities. These systems are designed to provide reasonable assurance that the financial information is reliable and accurate. The Board of Directors is responsible for ensuring that management fulfills its responsibility for financial reporting and is ultimately responsible for reviewing and approving the financial statements. The Board carries out this responsibility principally through its Financial Review Committee. The Financial Review Committee is appointed by the Board and meets periodically with management and the members' auditors to review significant accounting, reporting and internal control matters. Following its review of the financial statements and discussions with the auditors, the Financial Review Committee reports to the Board of Directors prior to its approval of the financial statements. The Committee also considers, for review by the Board and approval by the members, the engagement or re-appointment of the external auditors. The financial statements have been audited on behalf of the members by Mintz & Wallace Chartered Accountants LLP, in accordance with Canadian Generally Accepted Auditing Standards. Executive Director Regina, SK November 29, 2013

3 INDEPENDENT AUDITOR'S REPORT To the Members of Canadian Council on Continuing Education in Pharmacy We have audited the accompanying financial statements of Canadian Council on Continuing Education in Pharmacy, which comprise the statements of financial position as at June 30, 2013, June 30, 2012 and July 1, 2011, and the statements of revenues and expenditures, changes in net assets and cash flows for the years ended June 30, 2013 and June 30, 2012, 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 in our audits is sufficient and appropriate to provide a basis for our audit opinion. (continues) 2

4 Independent Auditor's Report to the Members of Canadian Council on Continuing Education in Pharmacy (continued) Opinion In our opinion, the financial statements present fairly, in all material respects, the financial position of Canadian Council on Continuing Education in Pharmacy as at June 30, 2013, June 30, 2012 and July 1, 2011, and the results of its operations and its cash flows for the year ended June 30, 2013 and June 30, 2012 in accordance with Canadian Accounting Standards for Not-for-Profit Organizations. Regina, Saskatchewan November 29, 2013 Mintz & Wallace Chartered Accountants LLP Mintz & Wallace Chartered Accountants LLP 3

5 Statement of Financial Position June 30, 2013 June 30 June 30 July ASSETS CURRENT Cash $ 24,387 $ 20,473 $ 38,112 Accounts receivable 27,468 43,555 32,907 Goods and services tax recoverable ,269 Prepaid expenses 3,494 1,877 1,877 55,635 66,196 74,165 INVESTMENTS (Note 4) 335, , ,715 $ 391,225 $ 394,551 $ 378,880 LIABILITIES AND NET ASSETS CURRENT Accounts payable $ 17,054 $ 19,179 $ 20,287 NET ASSETS General fund 322, , ,454 Restricted funds (Note 5) 52,139 52,139 52, , , ,593 $ 391,225 $ 394,551 $ 378,880 ON BEHALF OF THE BOARD Director Director See accompanying notes Mintz & Wallace Chartered Accountants LLP 4

6 Statement of Revenues and Expenditures REVENUES Accreditation fees $ 254,355 $ 282,384 Council meeting assessment 6,600 6, , ,984 Accreditation expenses 55,930 53,794 Board of Directors 44,936 41,344 Communications 4,005 3,537 Meetings and conventions 10,380 7,323 Miscellaneous 1, Occupancy costs 12,254 11,295 Office 5,503 5,979 Professional fees 6,611 5,282 Salaries and benefits 111, ,416 Website hosting and maintenance 2,198 2, , ,027 EXCESS OF REVENUES OVER FROM OPERATIONS 6,626 51,957 PROJECTS Accreditation Review (Schedule 1) 1,500 13,721 Blueprint for Pharmacy (Schedule 2) 3,935 4,827 Computer System User Update (Schedule 3) - 4,517 IT Risk Assessment (Schedule 4) Planning (Schedule 5) - 14,838 Website Database (Schedule 6) 2,283 5,560 CCCEP 40th Anniversary (Schedule 7) 7,344-15,062 43,818 EXCESS (DEFICIENCY) OF REVENUES OVER BEFORE INVESTMENT INCOME (8,436) 8,139 INVESTMENT INCOME Investment income 7,703 10,196 Unrealized fair market value adjustment (468) (1,556) 7,235 8,640 EXCESS (DEFICIENCY) OF REVENUES OVER $ (1,201) $ 16,779 See accompanying notes Mintz & Wallace Chartered Accountants LLP 5

7 Statement of Changes in Net Assets General Restricted Fund Funds NET ASSETS - BEGINNING OF YEAR $ 323,233 $ 52,139 $ 375,372 $ 358,593 Excess (deficiency) of revenues over expenditures (1,201) - (1,201) 16,779 NET ASSETS - END OF YEAR (Note 5) $ 322,032 $ 52,139 $ 374,171 $ 375,372 See accompanying notes Mintz & Wallace Chartered Accountants LLP 6

8 Statement of Cash Flows OPERATING ACTIVITIES Excess (deficiency) of revenues over expenditures $ (1,201) $ 16,779 Item not affecting cash: Unrealized fair market value adjustment 468 1,556 (733) 18,335 Changes in non-cash working capital: Accounts receivable 16,087 (10,648) Accounts payable (2,125) (1,108) Prepaid expenses (1,617) - GST payable (receivable) ,350 (10,778) Cash flow from operating activities 11,617 7,557 INVESTING ACTIVITIES Reinvested investment income (7,703) (40,196) Investment drawing - 15,000 Cash flow used by investing activities (7,703) (25,196) INCREASE (DECREASE) IN CASH FLOW 3,914 (17,639) CASH - BEGINNING OF YEAR 20,473 38,112 CASH - END OF YEAR $ 24,387 $ 20,473 See accompanying notes Mintz & Wallace Chartered Accountants LLP 7

9 Notes to Financial Statements 1. FIRST TIME ADOPTION OF ACCOUNTING STANDARDS FOR NOT-FOR-PROFIT ORGANIZATIONS During the year the Council adopted Canadian Accounting Standards for Not-for-Profit Organizations (ASNFPO). These financial statements are the first prepared in accordance with these standards. The adoption of ASNFPO had no impact on net assets as at July 1, 2011 or revenues and expenditures or cash flows for the year ended June 30, 2012 as previously reported in accordance with pre-changeover Canadian generally accepted accounting principles. 2. NATURE OF OPERATIONS The Canadian Council on Continuing Education in Pharmacy (Council) was incorporated under the Canada Corporations Act on November 9, The Council is a not-for-profit organization whose purpose is to advance pharmacy practice in Canada through quality life-long learning. The Council is exempt from income tax under Section 149 of the Income Tax Act. 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Financial instruments policy Financial instruments are recorded at fair value when acquired or issued. In subsequent periods, financial assets with actively traded markets are reported at fair value, with any unrealized gains and losses reported in income. All other financial instruments are reported at amortized cost, and tested for impairment at each reporting date. Transaction costs on the acquisition, sale, or issue of financial instruments are expensed when incurred. Revenue recognition The Council follows the deferral method of accounting for contributions. Restricted contributions are recognized as revenue in the year 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. Accreditation fees are recognized upon submission of programs to the Council for accreditation review. Capital assets Capital assets are expensed in the year of acquisition and revenue is recognized in year of disposal. (continues) Mintz & Wallace Chartered Accountants LLP 8

10 Notes to Financial Statements 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Fund accounting The Council reports using fund accounting and has the following funds: Unrestricted Fund - this fund reports the day to day operations of the Council. Restricted Funds - these funds are internally restricted by the board of directors and include: a) Succession Planning Fund to assist with future succession planning of the Council. b) Capital Replacement Reserve Fund to provide for future capital expenditures. c) Project Reserve Fund to provide for future special project expenditures. 4. INVESTMENTS Cash $ 25,043 $ - Fixed income bonds 75,880 95,778 Accrued interest receivable 14,554 14,951 Money market fund 93,667 93,022 Monthly income mutual fund 42,908 41,327 Canadian short term bond 83,538 83,277 $ 335,590 $ 328,355 Fixed income bonds have interest rates that range from 4.55% % and mature between November 2013 and April RESTRICTED FUNDS Beginning Balance Transfers Ending Balance Succession Planning Fund $ 9,977 $ - $ 9,977 Capital Replacement Reserve Fund 3,436-3,436 Project Reserve Fund 38,726-38,726 $ 52,139 $ - $ 52, FINANCIAL INSTRUMENTS The Council is exposed to various risks through its financial instruments and has a comprehensive risk management framework to monitor, evaluate and manage these risks. The following analysis provides information about the Council's risk exposure and concentration as of June 30, (continues) Mintz & Wallace Chartered Accountants LLP 9

11 Notes to Financial Statements 6. FINANCIAL INSTRUMENTS (continued) Credit risk Credit risk arises from the potential that a counter party will fail to perform its obligations. The Council is exposed to credit risk from customers. An allowance for doubtful accounts is established based upon factors surrounding the credit risk of specific accounts, historical trends and other information. The Council has a significant number of customers which minimizes concentration of credit risk. Liquidity risk Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities. The Council is exposed to this risk mainly in respect of its receipt of funds from its customers and other related sources, and accounts payable. The Council manages this risk through the use of operating budgets and financial reporting. Interest rate risk Interest rate risk is the risk that the value of a financial instrument might be adversely affected by a change in the interest rates. The Council is exposed to interest rate risk primarily through its investments. Investment earnings are not relied upon for operations. 7. LEASE COMMITMENTS The Council has a long term lease with respect to its premises. The lease contains renewal options and provides for payment of utilities, property taxes and maintenance costs. Future minimum lease payments as at June 30, 2013, are as follows: 2014 $ 5,950 Mintz & Wallace Chartered Accountants LLP 10

12 Accreditation Review (Schedule 1) Board of Directors Board working group $ - $ 24 Communications Other Office Expenses Office supplies & small equipment - 76 Dues & subscriptions Travel & Entertainment Mileage, taxi, etc Accommodations - 1,504 Meeting expenses - 4,214 Air travel 607 4,443 Meals - 1,933 Professional Service Fees General consulting Program Expenses Other program expenses $ 1,500 $ 13,721 Blueprint for Pharmacy (Schedule 2) Board of Directors Travel expenses $ - $ 5 Communications Sponsorship grant - 2,500 Office Expenses Dues & subscriptions 2,500 - Travel & Entertainment Mileage, taxi, etc Accommodations Air travel 478 1,025 Meals Other travel $ 3,935 $ 4,827 See accompanying notes Mintz & Wallace Chartered Accountants LLP 11

13 Computer System User Update (Schedule 3) Office Expenses Office supplies & small equipment $ - $ 2,850 Computer supplies - 52 Professional Service Fees Computer services - 1,615 $ - $ 4,517 IT Risk Assessment (Schedule 4) Board of Directors Board other $ - $ 100 Professional Service Fees Computer services $ - $ 355 Planning (Schedule 5) Board of Directors Entertainment & meals $ - $ 625 Meeting room & equipment Accommodations - 1,715 Office Expenses Office supplies & small equipment - 68 Professional Service Fees General consulting - 11,460 Other Miscellaneous $ - $ 14,838 See accompanying notes Mintz & Wallace Chartered Accountants LLP 12

14 Website Database (Schedule 6) Communications Website development $ 2,283 $ 5,560 CCCEP 40th Anniversary (Schedule 7) Communications Advertising & marketing $ 2,810 $ - Other Office expenses Courier & postage Office supplies & small equipment 55 - Other 32 - Travel & entertainment Mileage, taxi, etc 35 - Entertainment Accommodations Air travel Meals 4 - Professional service fees Other Other expenses Miscellaneous 1,678 - $ 7,344 $ - See accompanying notes Mintz & Wallace Chartered Accountants LLP 13