BREAST CANCER SUPPORTIVE CARE FOUNDATION

Transcription

1 BREAST CANCER SUPPORTIVE CARE FOUNDATION Financial Statements December 31, 2012

2 Index to the Financial Statements Page INDEPENDENT AUDITOR'S REPORT 1-2 FINANCIAL STATEMENTS Statements of Financial Position 3 Statements of Operations 4 Statements of Changes in Net Assets 5 Statements of Cash Flows 6 Notes to the Financial Statements 7-10

3 INDEPENDENT AUDITOR'S REPORT To the Members of Breast Cancer Supportive Care Foundation: Report on the financial statements We have audited the accompanying financial statements of Breast Cancer Supportive Care Foundation, which comprise the statements of financial position as at December 31, 2012, December 31, 2011 and January 1, 2011 and the statements of operations, changes in net assets and cash flows for the years ended December 31, 2012 and December 31, 2011, and a summary of significant accounting policies and other explanatory information. Management's responsibility for 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 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. 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. Basis for Qualified Opinion In common with many charitable organizations, the Foundation derives revenue from donations and fundraising, 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 Foundation and we were not able to determine whether any adjustments might be necessary to contributions, excess of revenues over expenses, current assets and net assets. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. (Continued on next page) 1

4 INDEPENDENT AUDITOR'S REPORT (continued) Qualified Opinion In 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 Breast Cancer Supportive Care Foundation as at December 31, 2012, December 31, 2011 and January 1, 2011 and the results of its operations and its cash flows for the years ended December 31, 2012 and December 31, 2011 in accordance with Canadian accounting standards for not-for-profit organizations. April 10, 2013 Calgary, Alberta, Canada Certified General Accountants 2

5 Statements of Financial Position As at December 31, 2012 and 2011 and January 1, January 1, 2011 ASSETS Current Cash and cash equivalents $ 197,777 $ 91,735 $ 346,604 Short term investment (note 4) 5, ,684 9,315 Goods and services taxes recoverable 5,978 8,381 16,623 Accounts receivable 7,794 20,139 29,334 Prepaid expenses 30,747 33,129 22, , , ,811 Non-current investment (note 4) - 129, ,456 Property and equipment (note 5) 26,385 40,464 57,689 $ 273,736 $ 426,507 $ 582,956 LIABILITIES AND NET ASSETS Current liabilities Accounts payable and accrued liabilities $ 9,977 $ 23,686 $ 83,321 Deferred contributions related to operations (note 5) - 2,614 77,840 9,977 26, ,161 Net assets Invested in property and equipment 26,385 40,464 57,689 Unrestricted 237, , , , , ,795 $ 273,736 $ 426,507 $ 582,956 Out of balance January 0, 1900 Approved on behalf of the Board: Director: Director: 3 The accompanying notes form an integral part of the financial statements.

6 Statements of Operations Revenue Fundraising $ 347,410 $ 249,735 Donations 192, ,722 Fees for services 74, ,826 Grants 57, ,680 Other revenue 1,924 6,614 Interest 1,091 5, , ,547 Expenses Salaries and wages 373, ,414 Program delivery costs 222, ,545 Office 126, ,506 Professional fees 25,721 21,871 Amortization 14,079 22,575 Travelling 10,086 10,681 Insurance 9,299 5,067 Interest and bank charges 7,888 4,097 Telephone 6,019 8,989 Advertising and promotion 5,907 8,801 Education and training 5,619 73,332 Miscellaneous 4,778 10,703 Bad debt ,171 Moving expenses - 3, , ,135 Deficiency of revenue over expenses $ (136,448) $ (21,588) 4 The accompanying notes form an integral part of the financial statements.

7 Statements of Changes in Net Assets Invested in property and equipment Unrestricted Net assets, beginning of year $ 40,464 $ 359,743 $ 400,207 $ 421,795 Deficiency of revenue over expenses (14,079) (122,369) (136,448) (21,588) Net assets, end of year $ 26,385 $ 237,374 $ 263,759 $ 400,207 5 The accompanying notes form an integral part of the financial statements.

8 Statements of Cash Flows OPERATING ACTIVITIES Cash receipts from contributors and customers $ 771,659 $ 757,224 Payments to suppliers and employees (796,683) (983,194) Interest received 1,091 5,970 (23,933) (220,000) INVESTING ACTIVITIES Proceeds from sale of investments, net of purchases 129,975 (29,519) Purchase of property and equipment - (5,350) 129,975 (34,869) Increase (decrease) in cash 106,042 (254,869) Cash and cash equivalents, beginning of year 91, ,604 Cash and cash equivalents, end of year $ 197,777 $ 91,735 Cash and cash equivalents consists of: Cash 197,777 86,735 Term deposits - 5,000 $ 197,777 $ 91,735 6 The accompanying notes form an integral part of the financial statements.

9 Notes to the Financial Statements 1. PURPOSE OF THE ORGANIZATION Breast Cancer Supportive Care Foundation (the Foundation) is a not-for-profit organization dedicated to supporting breast cancer patients. The Foundation was incorporated under the Companies Act of Alberta on October 19, 2005 and commenced operations in March of The Foundation is a registered charity and under section 149 of the Income Tax Act (Canada) is exempt from the payment of income tax. 2. IMPACT OF THE CHANGES IN THE BASIS OF ACCOUNTING Effective January 1, 2012, the Foundation adopted the requirements of the Canadian Institute of Chartered Accountants (CICA) Handbook Accounting, electing to adopt the new accounting framework: Canadian accounting standards for notfor-profit organizations. These are the Foundation s first financial statements prepared in accordance with these accounting standards, which has been applied retrospectively. The accounting policies set out in the following significant accounting policy note have been applied in preparing the financial statements for the year ended December 31, 2012, the comparative information presented in these financial statements for the year ended December 31, 2011 and in the preparation of an opening statement of financial position as at January 1, 2011 (the Foundation s date of transition). The Foundation issued financial statements for the year ended December 31, 2011 using generally accepted accounting principles prescribed by the CICA Handbook Accounting XFI. The adoption of Canadian accounting standards for not-forprofit organizations had no impact on the Foundation's excess of revenues over expenses for the year ended December 31, 2011 or on the net assets as at January 1, 2011, the date of transition. Certain of the Foundation s disclosures included in these financial statements reflect the new disclosure requirements of Canadian accounting standards for not-for-profit organizations. Note that the Foundation s 2012 statement of financial position is three columns: December 31, 2012, December 31, 2011 and January 1, The balances for the January 1, 2011 statement of financial position are the same as those shown for December 31, 2010 because there were no transitional adjustments to these balances. 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES These financial statements have been prepared in accordance with Canadian accounting standards for not-for-profit organizations in Part III of the CICA Handbook, and in management's opinion, have been properly prepared within reasonable limits of materiality and within the framework of the significant accounting policies summarized below: a) Revenue recognition The Foundation follows the deferral method of accounting for contributions. Operating grants are recognized as revenue, either in the period received, or, when a portion of the grant relates to a future period, deferred and recognized in the subsequent period. 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. Amounts pledged as future donations are not recognized in the accounts. Restricted contributions are recognized as revenue in the year in which the related expenses are incurred. (Continues...) 7

10 Notes to the Financial Statements 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (...Continued) b) Cash and cash equivalents Cash and cash equivalents consist of cash on hand, amounts held with financial institutions that can be readily converted to cash, and term deposits with original maturities of three months or less. c) Property and equipment Property and equipment are stated at cost less accumulated amortization. Property and equipment are amortized over their estimated useful lives at the following rates and methods: Computer equipment Equipment Furniture and fixtures Leasehold improvements Library and resource materials Software d) Goods and Services Tax e) Financial instruments f) Contributed goods and services g) Management Estimates 20% Straight line 20% Straight line 20% Straight line 20% Straight line 20% Straight line 20% Straight line The Foundation regularly reviews its property and equipment to eliminate obsolete items. Goods and services tax is recoverable at 50% as a rebate. The unrecoverable 50% is recorded as part of the expense with the rebate treated as a receivable. The Foundation initially measures its financial assets and financial liabilities at fair value. It subsequently measures all of its financial assets and financial liabilities at amortized cost. The financial assets measured at amortized cost include cash, guaranteed investment certificates, accounts receivable and goods and services taxes recoverable. The financial liabilities measured at amortized cost include accounts payable and accrued liabilities. Volunteers contribute many hours per year to assist the Foundation in carrying out its programs. Due to the difficulty in determining the fair value, contributed services are not recognized in the financial statements. Contributed goods are recognized where the fair value is readily determinable and the goods would have been purchased had they not been contributed. The preparation of financial statements in accordance with Canadian accounting standards for not-for-profit organizations requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingencies at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. 8

11 Notes to the Financial Statements 4. INVESTMENTS Guaranteed investment certificate, bearing interest of 1.0%, maturing March 2013 $ 5,055 $ - Guaranteed investment certificate, bearing interest of 1.1%, redeemed in March ,684 Guaranteed investment certificate, bearing interest of 1.25%, matured in December ,975 $ 5,055 $ 232, PROPERTY AND EQUIPMENT Cost 2012 Accumulated Amortization Net Book Value 2011 Net Book Value Computer equipment $ 17,543 $ 13,922 $ 3,621 $ 7,130 Equipment 5,818 5, ,286 Furniture and fixtures 35,700 35, Leasehold improvements 33,963 11,321 22,642 28,303 Software 18,460 18,460-3,489 $ 118,576 $ 92,191 $ 26,385 $ 40, DEFERRED CONTRIBUTIONS Deferred contributions related to operations: Beginning balance $ 2,614 $ 77,840 Contributions received during the year 54,463 97,454 Amounts recognized as revenue (57,077) (172,680) Ending balance $ - $ 2, RELATED PARTY TRANSACTION AND COMMITMENT $5, was paid to the vice president for contracted work to support the transition to the new organization's structure and new Executive director. These transactions were in the normal course of operations and have been measured at the agreed upon exchange amount. The consideration amounts established and agreed upon by Breast Cancer Supportive Care Foundation are similar to those negotiated with third parties. In 2010, a corporation controlled by a director of the Foundation entered into a lease for premises occupied by the Foundation. The Foundation has indemnified the corporation for all costs associated with this lease, and as the beneficial lessee and occupant the Foundation has the following commitments: , , , ,563 9

12 Notes to the Financial Statements 8. ADDITIONAL INFORMATION TO COMPLY WITH DISCLOSURE REQUIREMENTS OF THE CHARITABLE FUND RAISING ACT OF ALBERTA AND REGULATIONS Gross fundraising contributions received in the current year were $347,410 ( $249,735). All monies received from fundraising were used for program expenses, operating expenses and administrative expenses. No specific item was purchased which accounted for over 10% of the contributions received. All expenses incurred for fundraising were $167,241 ( $122,167) and for the purposes of solicitating contributions were $5,907 ( $8,801). No funds were paid as remuneration to fund-raising businesses, including any expenses, fees or reimbursements paid to fundraising businesses. No amounts were paid to employees for fundraising activities. 9. FINANCIAL INSTRUMENTS The Foundation is required to report financial instruments under the new accounting framework of Accounting Standards for Not-for-Profit Organizations as described in CICA Handbook Section The Foundation's financial instruments consist of cash and cash equivalents, short-term investment, accounts receivable, goods and services tax recoverable, accounts payable and accrued liabilities. Unless otherwise noted, it is management's opinion that due to the nature of these financial instruments, the Foundaiton is not exposed to significant market, interest rate, or credit risk. The carrying value of these financial instruments approximates their fair value, unless otherwise noted. 10. COMPARATIVE FIGURES Certain comparative figures have been reclassified to conform with the current year's financial statement presentation. 10