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12 Plan International Canada Inc. Notes to Financial Statements June 30, Capital assets Cost Accumulated amortization 2010 Net Computer equipment and software 5,030,510 4,062, ,057 Furniture 275, , ,107 Leasehold improvements 583, , ,005 5,889,465 4,441,296 1,448, Cost Accumulated amortization Net Computer equipment and software 4,348,189 3,101,916 1,246,273 Furniture 204, ,771 79,909 Leasehold improvements 532, , ,170 Amortization for the year ended June 30, 2010 was 1,048,950 ( ,415). 4 Undisbursed designated contributions 5,085,698 3,392,346 1,693,352 Undisbursed designated contributions represent designated contributions received from donors prior to the end of the fiscal year and not yet disbursed as at the end of the fiscal year. Changes in the undisbursed designated contributions are as follows: Balance - Beginning of year 3,506,428 2,851,236 Less: Amount recognized as revenue in the year (2,643,672) (2,329,927) Add: Amount received related to the following years 8,031,822 2,985,119 Balance - End of year 8,894,578 3,506,428 5 Undisbursed grants Undisbursed grants of 1,654,615 ( ,961), include 937,838 ( ,731) of amounts received from the Canadian International Development Agency (CIDA) prior to the end of the fiscal year and not yet disbursed as at the end of the fiscal year. (6)

13 Plan International Canada Inc. Notes to Financial Statements June 30, Net assets restricted for endowment purposes The endowment amount represents amounts designated by donors to be held for periods from ten years to perpetuity, after which the capital will be used to sponsor children. As specified by the donors, the investment income earned on the endowments is transferred to, and included in, child sponsorship income in the statement of public support, revenue and expenditures. In 2010, the investment income was 32,021 ( ,945). The endowment balance is adjusted on an annual basis to reflect the effects of inflation. In 2010, the inflation adjustment increase was 12,072 ( nil). 7 Financial instruments Financial instruments required to be classified as heldfor-trading Financial instruments classified as availablefor-sale Loans and receivables at amortized cost Financial liabilities at amortized cost Total Carrying amounts Financial assets Cash and cash equivalents 11,229, ,985,052 Receivables ,188-1,129,900 Investments - 3,536, ,881,541 Balance due from Plan International, Inc ,218, ,318 11,229,780 3,536,727 4,869,446-12,912,811 Financial liabilities Advance payments by donors ,317,069 5,264,466 Undisbursed designated contributions ,894,578 3,506,428 Undisbursed grants ,654, ,961 Accounts payable and accrued liabilities ,445,028 2,467, ,311,290 12,148,522 There have been no changes in classification of financial instruments since June 30, The carrying values of receivables and the balance due from Plan International, Inc. approximate their fair values given their short-term nature. The carrying values of advance payments by donors, undisbursed designated contributions, undisbursed grants, accounts payable and accrued liabilities and balance due to Plan International, Inc. approximate their fair values given their short-term nature. (7)

14 Plan International Canada Inc. Notes to Financial Statements June 30, Government and other grants Government of Canada (CIDA) 6,874,906 8,733,257 Government of Saskatchewan (SCIC) 13,045 27,920 Government of Manitoba (MCIC) 65, ,168 World Food Programme (WFP) 664,116 1,191,945 Others 579, ,152 9 Contributions in-kind 8,196,963 10,287, World Food Programme 11,111,036 19,489,795 Medicines and supplies 16,928,912 33, Allocation of interest income from Plan International, Inc. 28,039,948 19,523,218 To support Plan program expenditures, each National Organization has committed to Plan the excess of its revenues received over its current operating expenditures, capital asset needs and any endowment funds received. Funds transmitted to Plan that exceed its current disbursement needs are invested by Plan. The interest income earned on those investments is then allocated back to the National Organizations. Thus, the accompanying statement of public support, revenue and expenditures of the organization includes interest so allocated of 67,650 ( ,468) and a like amount of additional payments for international program services. 11 Summary of salaries and wages, number of employees and number of sponsored children and families assisted Salaries and wages Number of employees Fundraising 2,435,125 1,942, Building relationships and programs 1,703,594 1,077, Operating 3,527,421 3,967, ,666,140 6,987, (8)

15 Plan International Canada Inc. Notes to Financial Statements June 30, 2010 Number of sponsored children (Unaudited) Sponsored children and families assigned to sponsors 178, ,788 Sponsored children and families awaiting assignment to sponsors 35,657 33, Pension plan 213, ,239 The organization contributes to a group retirement savings plan that covers all full-time permanent employees. The pension plan expense for the year ended June 30, 2010 was 402,248 ( ,373). 13 Net change in non-cash working capital Pledges due from donors 330,677 (326,075) Other receivables 148, ,007 Prepaid expenses 400,026 (291,665) Balance due to/from Plan International, Inc. (3,301,940) (2,028,321) Advance payments by donors 52,603 (1,702,366) Undisbursed designated contributions 5,388, ,192 Undisbursed grants 744, ,765 Accounts payable and accrued liabilities (22,639) 872,267 3,739,566 (2,370,196) (9)

16 Plan International Canada Inc. Notes to Financial Statements June 30, Allocation of expenses As more fully described in note 1, marketing, development, programs, donor relations and administration costs have been allocated as follows: 2010 Canadian program services Fundraising Operating Total Marketing, development and programs 3,062,200 15,964,111 1,257,668 20,283,979 Donor relations and administration 1,579,842 1,295,106 7,737,610 10,612,558 4,642,042 17,259,217 8,995,278 30,896, Canadian program services Fundraising Operating Total Marketing, development and programs 2,792,385 13,191,720 1,272,188 17,256,293 Donor relations and administration 1,361, ,169,928 9,531, Tax receipted donations 4,153,899 13,192,234 9,442,116 26,788,249 The organization is a member of Imagine Canada and has adopted its Ethical Fundraising and Financial Accountability Code, which requires disclosure of the amount of donations receipted for income tax purposes. During fiscal 2010, the organization issued donation receipts for income tax purposes in the amount of 74,243, Fundraising solicitations Third party fundraisers were contracted to solicit sponsorships on behalf of the organization. Remuneration is based on an hourly rate and during the year, 6,828,905 was paid for these services. (10)

17 Plan International Canada Inc. Notes to Financial Statements June 30, 2010 During fiscal 2010, contributions from donors sourced through third party fundraisers amounted to 30,849, Commitments The organization is obligated under the terms of operating leases for office premises and office equipment. Lease commitments for the next five years are approximately as follows: , , , , , Capital management 3,435,086 The organization defines its capital as the amounts included in its net assets balances. The organization s objective when managing its capital is to safeguard the organization s ability to continue as a going concern so that it can continue to provide the appropriate level of benefits and services for children in developing countries. In managing capital, the organization focuses on liquid resources available for operations. The organization s objective is to have sufficient liquid resources to continue operating despite adverse events with financial consequences and to provide it with the flexibility to take advantage of opportunities that will advance its purposes. The need for sufficient liquid resources is considered in the preparation of an annual budget and in the monitoring of cash flows and actual operating results compared to budget. As at June 30, 2010, the organization has met its objective of having sufficient liquid resources to meet its current obligations. The organization has established a reserves policy, which requires having three months of normal operating expenses or a minimum of 6,000,000 available in liquid assets. A portion of the organization s capital is restricted in that the organization is required to meet certain requirements in order to utilize its externally restricted net assets balance, as described in note 6. The organization has internal control processes to ensure the restrictions are met prior to the utilization of these resources and has been in compliance with these restrictions throughout the year. (11)