Dalhousie Student Union Inc. Financial Statements March 31, 2014

Transcription

1 Financial Statements March 31,

2 November 4, Independent Auditor s Report To the Members of Dalhousie Student Union Inc. We have audited the accompanying financial statements of Dalhousie Student Union Inc. (the Student Union ), which comprise the statement of financial position as at March 31,, and the statements of revenues and expenses, changes in net assets and cash flows for the year then ended and the related notes, which comprise 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 is sufficient and appropriate to provide a basis for our qualified audit opinion. Basis for qualified opinion In common with many not-for-profit organizations, the Student Union derives some of its revenues from ticket sales, food and bar services and advertising, the completeness of which is not susceptible to satisfactory audit verification. Accordingly, verification of these revenues was limited to the amounts recorded in the records of the Student Union. Therefore, we were not able to determine whether any adjustments might be necessary to revenues, excess (deficiency) of revenues over expenses and cash flows from operations for the year ended March 31,, current assets as at March 31, and net assets at both the beginning and end of the year ended March 31,. PricewaterhouseCoopers LLP Summit Place, 1601 Lower Water Street, Suite 400, Halifax, Nova Scotia, Canada B3J 3P6 T: , F: PwC refers to PricewaterhouseCoopers LLP, an Ontario limited liability partnership.

3 Other matter The financial statements of the Student Union for the year ended March 31, were audited by another auditor who expressed a qualified opinion on those statements on April 23,. 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 the Student Union as at March 31,, 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. Chartered Accountants

4 Statement of Financial Position As at March 31, Assets Current assets Cash 210, ,452 Amounts receivable: Dalhousie University 1,040,388 1,283,979 Other 418, ,410 Inventories 41,204 54,054 Prepaids 33,036 50,402 1,742,916 2,027,297 Restricted cash 2,160, ,120 Investments, at market value (note 3) 3,074,716 2,884,836 Capital assets and intangibles (note 4) 867, ,511 Liabilities 7,845,162 6,606,764 Current liabilities Accounts payables and accruals liabilities 1,313, ,098 Other liabilities 100, ,522 1,413, ,620 Net assets Unrestricted net assets 2,311,993 2,354,152 Internally restricted net assets (note 5) 4,119,204 3,597,992 Commitment (note 8) 6,431,197 5,952,144 7,845,162 6,606,764 Approved by the Board of Directors Director Director The accompanying notes are an integral part of these financial statements.

5 Statement of Revenues and Expenses For the year ended March 31, Operating Fund Budget Operating Fund Internally Restricted Fund Revenues Bar services 633, , , ,369 Contracts 120, , , ,695 Council administration 50 1,101 1, Food service 51,761 51,217 51, ,893 Health plan 2,427,572 2,427,572 2,409,665 International Health Plan 1,011,287 1,011,287 Investment income 7,377 41, , , ,431 Programming and initiatives 347, , , ,186 Campus copy operations 111, , , ,439 S.U.B. operations 77,856 88,189 88, ,988 S.U.B. reservations 110, , , ,737 Shuttle bus 6,332 Student Union fees, net 1,276,724 1,206, ,192 1,753,522 1,597,428 2,737,618 2,617,796 4,140,421 6,758,217 5,803,713 Expenses Amortization 20,229 30,163 76, , ,530 Bar services 710, , , ,421 Council administration 462, , , ,584 External affairs 23,893 22,167 22,167 25,131 Food service 41,242 58,947 58,947 83,979 Furniture and fixtures 20,000 8,199 8,199 16,996 Grants 59,996 60,838 60,838 60,730 Health plan 2,448,107 2,448,107 2,270,167 International Health Plan 968, ,825 Programming and initiatives 438, , , ,803 Campus copy operations 120, , , ,347 S.U.B. operations 746, , , ,276 S.U.B. reservations 71,729 73,212 73,212 74,048 Shuttle bus 21,862 28,186 28,186 24,450 Student Union fees, net 126, , ,382 2,736,773 2,659,955 3,619,209 6,279,164 5,604,844 Excess (deficiency) of revenue over expenses for the year 845 (42,159) 521, , ,869 The accompanying notes are an integral part of these financial statements.

6 Statement of Changes in Net Assets For the year ended March 31, Unrestricted net assets Internally restricted net assets Net assets, Beginning of year 2,354,152 3,597,992 5,952,144 5,753,275 Excess (deficiency) of revenue over expenses for the year (42,159) 521, , ,869 Net assets, End of year 2,311,993 4,119,204 6,431,197 5,952,144 The accompanying notes are an integral part of these financial statements.

7 Statement of Cash Flows For the year ended March 31, Cash provided by (used in) Operating activities Net excess of revenue over expenses for the year 479, ,869 Amortization 106, ,530 Unrealized gain on investments (104,710) (43,133) Gain on disposal of investments (25,514) (124,214) 455, ,052 Change in non-cash working capital (note 7) 762,475 (346,516) 1,217,704 (7,464) Financing activities Change in restricted cash (1,277,147) (263,917) Repayment of capital lease obligations (9,073) (1,277,147) (272,990) Investing activities Investment proceeds and purchases, net (59,656) (21,853) Purchase of capital assets (162,152) (761,936) (221,808) (783,789) Net change in cash during the year (281,251) (1,064,243) Cash Beginning of year 491,452 1,555,695 Cash End of year 210, ,452 The accompanying notes are an integral part of these financial statements.

8 Notes to Financial Statements For the year ended March 31, 1 Nature of operations The Dalhousie Student Union Inc. (the "Student Union") is a not-for-profit Student Union providing employment, advocacy and general support for the students of Dalhousie University. The Student Union is funded through Dalhousie University student fees and from net income generated from various businesses operated by the Student Union. 2 Summary of significant accounting policies Basis of accounting These financial statements have been prepared in accordance with Canadian accounting standards for not-forprofit organizations ("ASNPO"). The significant policies are detailed as follows: Revenue recognition Contributions Contributions are recognized using the deferral method. Externally restricted contributions relating to expenses of the current period are recognized as received. Externally restricted contributions for expenses relating to future periods are deferred and recognized in the same period as the expenses. Contributions for the purchase of capital assets are deferred and recognized on the same basis as the amortization expense of the asset over its useful life. Internally restricted contributions are recognized as received. Student Union fee revenue Student Union fee revenues are recognized as received from Dalhousie University, in accordance with the CPA Canada Handbook, Section 3400 Revenue. Student fee revenue is allocated to specific programs of the Student Union based on full-time and part-time staff working in each department. Revenues allocated to the Student Union have been recorded on a net basis as the Student Union acts as an agent in the transaction on behalf of Dalhousie University. Gross revenues as a result of these transactions have been disclosed in schedule 9 to the financial statements. Contracts Contracts revenue is recognized when earned based on the terms of the contract. Investment income Investment income is recognized as earned. Health plan Fees received from Dalhousie University for insurance premiums are shown gross of the related insurance premium expense. (1)

9 Notes to Financial Statements For the year ended March 31, 2 Summary of significant accounting policies (continued) Management estimates The presentation of financial statements in conformity with ASNPO requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the reported amounts of revenues and expenditures during the reported period. results could differ from those reported. Inventories Inventories are carried at the lower of cost and net realizable value. Cost is determined on the first-in, first-out basis. The cost of inventories recognized as an expense during the year was 314,818 ( 353,120). Investments Investments are carried at quoted market value. All investments are measured at fair value with changes in fair value recognized in net income in the period they arise. Realized income is income earned from dividends and interest that has been collected or accrued in the current fiscal period along with gains or losses from the disposal of investments. Unrealized income is income that is recorded reflecting the change in market value over the book value of the investments currently being held by the Student Union at year-end. The unrealized change in market value is the result of both change in the value of the investment, as well as the change in foreign currency where applicable and is included in income for the current period. Capital assets All capital expenditures in excess of 3,000 are capitalized and amortized on a straight-line basis over their estimated useful lives as follows: Equipment Intangibles Leasehold improvements Leasehold improvements - renovations Vehicle Computer equipment Intangible assets include website development costs years 3years 15 years 10 years 5 years 3years (2)

10 Notes to Financial Statements For the year ended March 31, 2 Summary of significant accounting policies (continued) Cash Cash includes cash on hand, balances with banks and short-term investments. Bank borrowings are considered to be financing activities. Restricted cash relates to cash that is internally restricted to cover specific expenses of future periods. Financial instruments Initial measurement Financial instruments are measured at fair value when issued or acquired. For financial instruments subsequently measured at cost or amortized cost, fair value is adjusted by the amount of the related financing fees and transaction costs. Transaction costs and financing fees relating to financial instruments that are measured subsequently at fair value are recognized in operations in the year in which they are incurred. Subsequent measurement At each reporting date, the Student Union measures its financial assets and liabilities at cost or amortized cost (less impairment in the case of financial assets), except for investments, which must be measured at fair value. The financial instruments measured at amortized cost are receivables, payables and accruals, and other liabilities. For financial assets measured at cost or amortized cost, the Student Union regularly assesses whether there are any indications of impairment. If there is an indication of impairment and the Student Union determines that there is a significant adverse change in the expected timing or amount of future cash flows from the financial asset, it recognizes an impairment loss in the statement of revenues and expenses. Any reversals of previously recognized impairment losses are recognized in the statement of revenue and expenses in the year the reversal occurs. The Student Union's financial instruments consist of cash, restricted assets, receivables, long term investments, payables and accrued liabilities and other liabilities. Unless otherwise noted, it is management's opinion that the Student Union is not exposed to significant interest, currency or credit risks arising from these financial instruments. The fair values of these financial instruments approximate their carrying value, unless otherwise noted. 3 Investments Market value Market value Cash 83,875 67,998 Marketable securities 2,990,841 2,816,838 3,074,716 2,884,836 (3)

11 Notes to Financial Statements For the year ended March 31, 4 Capital assets and intangibles Cost Accumulated depreciation Net Equipment 406, ,794 42,637 Computer equipment 56,665 52,458 4,207 Intangibles 33,319 26,377 6,942 Vehicle 61,292 31,635 29,657 Leasehold improvements 901, ,018 59,408 Leasehold improvements - renovations 3,704,242 2,979, ,412 5,163,375 4,296, ,263 Cost Accumulated depreciation Net Equipment 372, ,842 20,092 Computer equipment 191, ,330 Copier capital lease 54,443 54,443 Intangibles 33,318 22,905 10,413 Vehicle 111,720 69,805 41,915 Leasehold improvements 901, ,279 75,147 Leasehold improvements - renovations 3,581,897 2,917, ,944 5,247,068 4,435, ,511 (4)

12 Notes to Financial Statements For the year ended March 31, 5 Internally restricted net assets The Student Union has set up internally restricted net assets to support the following activities: Capital campaign Contributions to the Dalhousie University Capital Campaign of 25 per full-time student and 20 per part-time student were received annually during the five years ended March 31, Of the total monies received over the five years, 1 million went towards construction of the new Arts and Social Science Building. The balance remaining in the fund has been committed to upgrading building safety and security. Facility improvement fees Students voted in 1995/96 to contribute 10 per full-time student and 5 per part-time student to develop a football team program. Dalhousie University subsequently decided not to proceed with this project and the students agreed in a follow up referendum in 1996/97 to use the funds collected in 1997/98 and beyond for the improvement of the Student Union facilities. Council voted in June 1998 to use the fees collected during 1996/97 to equally fund three different initiatives: programming, investing and Student Union improvements. In the 2003 fiscal year, it was agreed that a portion of this fee would be reallocated to DSU renovation fund such that 4.25 per full-time student and 1.00 per part-time student is allocated for overall improvements to the Student Union managed properties, equipment, computers and furniture. DSU renovation fund This fund has been set up to accumulate funds for the renovation of the Student Union building which began in the spring of The Student Union voted to continue the special capital campaign levy and to use these funds to renovate the Student Union building. In the past these funds were used to pay back the loan received to finance the renovations from Dalhousie University. Student accessibility fund This portion of student fees is collected for the purpose of improving accessibility of the Student Union facilities for individuals with disabilities. Health plan fund This fund has been set up to accumulate funds to use to decrease premiums, enhance benefits, or maintain the solvency of the health plan. The accumulated funds have been set aside as investments on which the income is added to the internally restricted balance. International health plan fund The international health plan represents monies collected from international students who are required to have medical insurance coverage during their tenure in Canada. Funds collected are used to pay insurance premiums incurred by international students and to establish an emergency reserve. The DSU assumed administration of this fund during the current period from Dalhousie University. (5)

13 Notes to Financial Statements For the year ended March 31, 5 Internally restricted net assets (continued) Opening balance Contributions received during the year Expenditures during the year Amortization Investment income Net unexpended monies Capital campaign 16,460 1,331 15,129 Facility improvement fees 43,419 70,202 58,649 54,972 DSU renovations fund 580, ,663 15,472 76, ,874 Student accessibility fund 175,498 30,327 50, ,237 Health plan fund 2,781,695 2,427,572 2,448, ,370 2,915,530 International health plan 1,011, ,825 42,462 3,597,992 3,986,051 3,542,972 76, ,370 4,119,204 Opening balance Contributions received during the year Expenditures during the year Amortization Investment income Net unexpended monies Capital campaign 17,791 1,331 16,460 Facility improvement fees 20,330 69,429 46,340 43,419 Course evaluation 31,238 31,238 Pepsi contract 3,832 3,832 DSU renovations fund 418, , , ,920 Student accessibility fund 166,382 29,936 20, ,498 Other 14,821 14,821 Health plan fund 2,642,196 2,409,249 2,270, ,781,695 6 Investment income 3,314,839 2,949,352 2,388, , ,597,992 Interest and dividends 101,767 70,603 Gain on disposal of investments 25, ,214 Unrealized gain on investments 104,710 43,133 Management fees (36,618) (42,519) 195, ,431 (6)

14 Notes to Financial Statements For the year ended March 31, 7 Change in non-cash working capital Increase in amounts receivable (27,086) (479,436) Decrease (increase) in inventories 12,850 (8,455) Decrease (increase) in prepaids 17,366 (17,805) Increase in accounts payable and accrued liabilities 761, ,512 Increase (decrease) in other liabilities (1,720) 44,668 8 Commitment 762,475 (346,516) Under an agreement with Dalhousie University, the Student Union has made a commitment to expend in future years a minimum of 10,000 per year on furniture, alterations and renovations for the Student Union Building. 9 Related party transactions During the year, the Student Union had the following transactions with Dalhousie University, all of which were recorded at their exchange amount. Student Union revenue 1,753,522 1,597,428 Salaries and benefits expense (1,222,466) (1,199,025) 10 Income taxes The Student Union is a not-for-profit organization and as such is exempt from income tax. 11 Health plan In October 1998, students voted to implement a health plan beginning in September The premium was approved by a student referendum in conjunction with the student elections in April The referendum also permits increases in premiums to cover future increases in the inflation rate or claims experience. Students may increase the coverage to include their families by paying an additional premium. (7)

15 Unaudited Schedule of Bar Services For the year ended March 31, Schedule 1 Budget Revenue Beer 133, , ,794 Draft 153, , ,260 Food 129, , ,915 Games 1,200 2, Liquor 123,286 97, ,497 Miscellaneous 13,851 14,326 11,597 Pop/mix 16,191 11,343 17,022 Wages charge back 18,786 23,235 22,169 Wine 43,836 41,171 38, , , ,369 Cost of goods sold Beer 77,016 77,141 78,844 Draft 90,464 73,639 81,336 Food purchases 71,920 65,876 82,118 Liquor 65,347 55,392 67,138 Pop/mix 18,762 16,982 23,067 Wine 25,496 25,788 20, , , ,120 Gross margin 284, , ,249 Expenses Business tax Communications 3,783 3,393 4,440 Equipment 8,861 7,868 13,161 Insurance 23,528 23,528 22,585 Miscellaneous 51,487 50,299 61,610 Office expense 6,320 7,418 7,546 Repairs and maintenance 7,254 6,393 11,390 Salaries 259, , , , , ,301 (76,425) (131,483) (134,052)

16 Unaudited Schedule of Council Administration For the year ended March 31, Schedule 2 Budget Revenue Miscellaneous 50 1, Expenses Advertising/marketing 2, ,213 Advocacy 17,431 18,262 CASA membership 113, , ,115 Communications 23,738 21,624 23,634 Conference 11,993 11,739 18,607 Council 10,279 14,852 20,645 Elections strategy 14,668 17,467 3,990 Gifts and awards 1,390 1, Insurance 11,451 11,451 11,309 Legal fees 9,723 10,240 8,921 Miscellaneous 21,887 17,459 22,699 Office supplies 8,084 8,084 7,610 Programming planning board 1, ,535 Salaries 214, , , , , ,584 (462,337) (454,040) (447,034)

17 Unaudited Schedule of Programming and Initiatives For the year ended March 31, Schedule 3 Budget Revenue Advertising revenue 14,766 14,766 50,500 Sponsorship 83,900 87, ,132 Ticket sales and event income 233, , ,554 Farmers market 15,200 12, , , ,186 Expenses Advertising 16,199 8,591 20,641 Communications 1, ,619 Events/programming 289, , ,754 Farmers market 9,536 13,133 Miscellaneous 17,690 19,221 56,141 Programming/initiative materials 59,053 62,253 60,353 Salaries 16,610 16,960 43,335 Strategic initiatives 15,000 14,643 Technical 14,305 16,321 21, , , ,803 (91,948) (101,613) (168,617)

18 Unaudited Schedule of Food Service For the year ended March 31, Schedule 4 Budget Revenue Food services revenues 51,761 51, ,893 Expenses Food services expense 26,150 34,039 42,786 Licensing fees 11,667 11,667 23,333 Repairs and maintenance 3,425 13,241 17,860 41,242 58,947 83,979 10,519 (7,730) 23,914

19 Unaudited Schedule of Campus Copy Operations For the year ended March 31, Schedule 5 Budget Revenue Binding and design revenue 8,465 8,217 7,427 Copyright 10,513 9,625 12,869 Fax and postage revenue 6,054 5,228 6,200 Computer lab/printing revenue 35,705 42,534 33,296 Color printing 30,140 39,276 29,953 Copy revenue 11,328 8,698 14,682 Retail revenue 9,196 8,729 8, , , ,439 Expenses Bad debts Copyright 10,309 10,288 18,251 Communication 5,081 4,531 4,958 DalCard Miscellaneous 4,761 3,944 4,704 Office Paper supplies 5,967 6,226 5,609 Photocopy leases and contracts 18,233 17,372 18,766 Salary 74,810 78,010 75, , , ,347 (8,702) 793 (16,908)

20 Unaudited Schedule of S.U.B. Operations For the year ended March 31, Schedule 6 Budget Revenue Miscellaneous 8,287 8,740 42,021 Rental 69,569 79,449 96,967 77,856 88, ,988 Expenses Audit expense 24,185 6,593 24,987 Communications 10,551 9,706 8,748 Computer services/support 19,394 13,287 16,675 Conference/AMICUS 16,563 15,967 12,352 Equipment and rental 63,102 52,792 69,023 Insurance 13,258 13,257 11,662 Miscellaneous 19,883 13,530 34,032 Office supplies 8,943 9,675 8,798 Salaries 539, , ,754 Staff training/events 31,030 29,970 28, , , ,276 (668,292) (610,652) (607,288)

21 Unaudited Schedule of S.U.B. Reservations For the year ended March 31, Schedule 7 Budget Revenue Meeting rooms 88,552 93,532 86,615 Miscellaneous 18,975 24,072 23,364 Copyright fees 3,343 3,234 3, , , ,737 Expenses Advertising Copyright fees 3,343 3,234 3,758 Meeting rooms 1, Miscellaneous 3,214 1,664 2,046 Office expenses Salaries 62,164 66,282 66,413 Telephone ,729 73,212 74,048 39,141 47,626 39,689

22 Unaudited Schedule of Shuttle Bus For the year ended March 31, Schedule 8 Budget Revenue Miscellaneous 6,332 Expenses Decaling 703 Gas 12,591 19,121 15,326 Insurance 8,656 8,656 6,660 Transportation ,761 21,862 28,186 24,450 (21,862) (28,186) (18,118)

23 Unaudited Schedule of Student Union Fees Income and Expenses For the year ended March 31, Schedule 9 Student union fees income before allocations 2,466,469 2,069,159 Allocations Agricultural campus fees 128,104 CKDU fees 148, ,758 Dal Out 7,978 7,899 DSUSO 31,913 31,595 Gazette 88,138 87,002 Sextant 9,172 9,044 Loaded ladle 107,721 33,886 NSPIRG 98,146 63,190 South African Trust Fund 15,956 15,797 Woman s Centre 53,499 52,864 World University scholarship 23,936 23, , ,731 Student union fees income after allocations 1,753,522 1,597,428 DSU renovations 446, ,737 DSU operations 1,206,330 1,057,326 Facility improvement 70,203 69,429 Student accessibility FD 30,327 29,936 1,753,522 1,597,428 Expenses Capital campaign 54,285 1,131 DSU Renovations 15,471 Facility improvement fees 5,696 46,340 Other 49,891 Student accessibility 50,588 20, , ,182 Net Student union fees 1,627,482 1,479,246