Guelph Chamber of Commerce Financial Statements For the Year Ended June 30, 2015

Transcription

1 Financial Statements For the Year Ended June 30, 2015

2 Financial Statements For the Year Ended June 30, 2015 Contents Independent Auditor's Report 1 Financial Statements Statement of Financial Position 2 Statement of Change in Net Assets 3 Statement of Operations 4 Statement of Cash Flows 5 Notes to Financial Statements 6 Auditor's Comments on Supplementary Financial Information 10 Schedule of Grant Revenue 11 Schedule of Grant Expenses 11

3 Independent Auditor's Report To the members of Guelph Chamber of Commerce We have audited the accompanying financial statements of Guelph Chamber of Commerce, which comprise the statement of financial position as at June 30, 2015, and the statements of operations, change in net assets 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 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 audit opinion. Opinion In our opinion, the financial statements present fairly, in all material respects, the financial position of Guelph Chamber of Commerce as at June 30, 2015, 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 Professional Accountants, Licensed Public Accountants Guelph, Ontario September 22,

4 Statement of Financial Position June Assets Current Cash (Note 2) $ 143,578 $ 357,868 Accounts receivable (Note 3) 228, ,532 Prepaid expenses 12,088 22,711 Current portion of loans receivable (Note 5) - 6, , ,111 Capital (Note 6) 102, ,692 Investments (Note 4) 265, ,040 $ 751,199 $ 826,843 Liabilities and Net Assets Current Accounts payable and accrued liabilities (Note 7) $ 114,653 $ 91,578 Deferred membership and other income 247, ,611 Deferred contributions , , ,737 Net Assets Balance of net assets 388, ,106 On behalf of the Board: $ 751,199 $ 826,843 Director Director The accompanying notes are an integral part of these financial statements. 2

5 Statement of Change in Net Assets For the year ended June Balance, beginning of the year $ 450,106 $ 439,209 Excess (deficiency) of revenues over expenses (61,215) 10,897 Balance, end of the year $ 388,891 $ 450,106 The accompanying notes are an integral part of these financial statements. 3

6 Statement of Operations For the year ended June Income Membership income $ 363,728 $ 348,988 Programs 348, ,828 Rental 122, ,262 Member service fees 44,461 35,594 Directory 40,301 67,662 Grants (schedule 1) 37,946 78,788 Sundry 19,275 11,530 Interest 5,944 5, ,742 1,040,492 Expenses Salaries 338, ,018 Rent and utilities 161, ,162 Programs 137, ,615 Audit, legal, insurance and bookkeeping 82,047 57,015 Advertising and promotion 53,159 54,614 Employee benefits 39,534 36,297 Office supplies, postage and telephone 38,135 20,291 Grants (schedule 2) 37,946 78,788 Directory 33,259 44,196 Travel, conventions and memberships 25,619 25,194 Amortization 20,622 22,805 Building supplies and maintenance 19,891 21,902 Bad debt 18,764 14,306 Equipment lease 15,029 16,605 Bank charges 13,398 11,900 Staff training 4,754 4,343 Committees 4,083 4,544 1,043,957 1,029,595 Excess (deficiency) of revenues over expenses $ (61,215) $ 10,897 The accompanying notes are an integral part of these financial statements. 4

7 Statement of Cash Flows For the year ended June Cash flows from operating activities Excess (deficiency) of revenues over expenses $ (61,215) $ 10,897 Items not affecting cash: Amortization 20,622 22,805 (40,593) 33,702 Changes in non-cash working capital: Accounts receivable (11,761) 5,691 Prepaid expenses 10,622 (2,501) Accounts payable and accrued liabilities 23,076 (14,058) Deferred memberships and other income (7,491) (23,623) Deferred contributions (30,013) (3,361) (56,160) (4,150) Cash flows from investing activities Purchase of investments (150,000) - Purchase of capital assets (14,130) (17,160) Repayments of loans receivable 6,000 3,000 (158,130) (14,160) Net decrease in cash (214,290) (18,310) Cash, beginning of the year 357, ,178 Cash, end of the year $ 143,578 $ 357,868 The accompanying notes are an integral part of these financial statements. 5

8 Notes to Financial Statements June 30, Significant Accounting Policies Nature of Operations Basis of Accounting Capital Assets Guelph Chamber of Commerce (The "Chamber") is a local organization whose mission is to serve as the voice of business for the community of Guelph and act on behalf of the business community making representation to all levels of government. The Chamber is incorporated without share capital under the Federal Boards of Trade Act. For Canadian income tax purposes the Corporation qualifies as a not-for-profit organization which is exempt from income taxes under the Income Tax Act. The financial statements have been prepared using Canadian accounting standards for not-for-profit organizations. Capital assets are stated at acquisition cost. Amortization is provided using the following methods and annual rates: Method Rate estimated useful life Office furniture and fixtures Straight-line 3-10 years Website Straight-line 5 years Leasehold improvements Straight-line term of lease Art work is not amortized because the useful life of the art work is so long that it is deemed to be virtually unlimited. Revenue Recognition The Chamber follows the deferral method of accounting for grants and contributions. Grants restricted for future expenses are deferred and recognized as revenue in the year in which the related expenses are incurred. Unrestricted grants and contributions are recognized as revenue when received or receivable if the amount to be received can be reasonably estimated and collection is reasonably assured. Membership fees are included in income over the membership term. Unearned portion of revenues are included in deferred memberships and other income. Program revenue is recognized when the event takes place. Advertising revenue is included in income when the advertisements are printed and distributed. Commissions are included in income when earned. 6

9 Notes to Financial Statements June 30, Significant Accounting Policies (continued) Financial Instruments Use of Estimates The Chamber's financial Instruments consist of cash, investments, accounts receivable, loans receivable, and accounts payable and accrued liabilities. The fair values of these financial instruments approximate their carrying values, unless otherwise noted. 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 at the date of the financial statements, and the reported amounts of revenues and expenses during the reported periods. Actual results could differ from management's best estimates as additional information becomes available in the future. 2. Cash The Chamber's bank accounts are held at two Canadian chartered financial institutions. Interest earned on these deposits range between 0.55% and 0.85%. 3. Accounts Receivable Accounts receivable $ 228,293 $ 207,565 Grants receivable - 8,967 $ 228,293 $ 216, Investments % guaranteed investment certificate maturing February 15, 2018 $ 115,040 $ 115, % guaranteed investment certificate maturing July 18, ,000 - $ 265,040 $ 115,040 7

10 Notes to Financial Statements June 30, Loans Receivable Balance - beginning of year $ 6,000 $ 9,000 Repayment of loans during the year (6,000) (3,000) Balance - end of year - 6,000 Less: Current portion - (6,000) $ Capital Assets Cost Accumulated Amortization Cost Accumulated Amortization Office furniture and fixtures $ 182,511 $ 151,108 $ 179,608 $ 144,245 Leasehold improvements 87,481 39,118 87,481 26,417 Art work 12,915-12,265 - Website 10,577 1, , , , ,662 $ 102,200 $ 108, Accounts Payable and Accrued Liabilities Included in accounts payable and accrued liabilities are government remittances of $23,847 ( $20,139). 8. Grant Expenditures Included in grant expenditures are costs related to the grant activity as well as shared costs incurred by the Chamber. Reallocated salaries from the Chamber total $37,946 ( $78,788). 8

11 Notes to Financial Statements June 30, Obligations Under Leases Future minimum lease payments committed under operating leases for the Chamber's premises, server, and photocopier consist of the following: 2016 $ 174, , , , and thereafter 28,130 $ 708, Changes in Presentation of Comparative Financial Statements Certain comparative figures have been reclassified to conform with the current year's financial statement presentation. Net income is not affected by these reclassifications. 11. Financial Instruments Credit risk Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. The Chamber is exposed to credit risk resulting from the possibility that a member or counterparty to a financial instrument defaults on their financial obligations; or if there is a concentration of transactions carried out with the same counterparty. The Chamber's financial instruments that are exposed to credit risk relate primarily to its accounts receivable. This risk has not changed from the previous year. Liquidity risk Liquidity risk is the risk that the Chamber will encounter difficulty in meeting its obligations associated with financial liabilities. Liquidity risk includes the risk that, as a result of operational liquidity requirements, the Chamber will not have sufficient funds to settle a transaction on the due date; will be forced to sell financial assets at a value, which is less than what they are worth; or may be unable to settle or recover a financial asset. The Chamber is exposed to this risk mainly in respect of its accounts payable and accrued liabilities. This risk has not changed from the previous year. 9

12 Auditor's Comments on Supplementary Financial Information To the members of the Guelph Chamber of Commerce We have audited the financial statements of the Guelph Chamber of Commerce, which comprise the statement of financial position as at June 30, 2015 and the statements of changes in net assets, statement of operations and statement of cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information, and have issued our report thereon dated September 22, The audit was performed to form an opinion on the financial statements as a whole. The Schedule of Grant Revenue and the Schedule of Grant Expenses are presented for additional analysis and is not a required part of the financial statements. Such supplementary information is the responsibility of management, and was derived from the underlying accounting and other records used to prepare the financial statements. The supplementary information has been subjected to the auditing procedures applied in the audit of these financial statements and certain additional procedures, including comparing and reconciling such supplementary information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves. Chartered Professional Accountants, Licenced Public Accountants Guelph, Ontario September 22,

13 Schedule of Grant Revenue Schedule 1 For the year ended June Trillium Foundation of Ontario $ 25,750 $ 53,792 Innovation Guelph Resource Centre 12,196 24,996 $ 37,946 $ 78,788 Schedule of Grant Expenses Schedule 2 For the year ended June Trillium Foundation of Ontario $ 25,750 $ 53,792 Innovation Guelph Resource Centre 12,196 24,996 $ 37,946 $ 78,788 11