MANITOBA DENTAL ASSISTANTS ASSOCIATION Financial Statements December 31, 2011

Transcription

1 Financial Statements December 31, 2011

2 December 4, 2012 INDEPENDENT AUDITORS' REPORT To the Directors of Manitoba Dental Assistants Association We have audited the accompanying financial statements of Manitoba Dental Assistants Association, which comprise the statement of financial position as at December 31, 2011 and the statement of revenues and expenditures and surplus 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 generally accepted accounting principles, 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. Auditors' 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 auditors' 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 auditors consider 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 Manitoba Dental Assistants Association as at December 31, 2011 and the results of its operations and its cash flows for the year then ended in accordance with Canadian generally accepted accounting principles. Chartered Accountants 1515 ONE LOMBARD PLACE WINNIPEG MB R3B 0X3 (204) FAX (204)

3 Statement of Financial Position December 31, ASSETS CURRENT Cash $ 112,754 $ 90,349 Merchandise inventory 1,285 - Prepaid expenses ,579 90,349 PROPERTY, PLANT AND EQUIPMENT (Note 3) 5,303 6,629 $ 119,882 $ 96,978 LIABILITIES AND SURPLUS CURRENT Accounts payable and accrued liabilities $ 5,873 $ 3,240 SURPLUS 114,009 93,738 LIABILITIES AND SURPLUS $ 119,882 $ 96,978 ON BEHALF OF THE BOARD Director Director

4 Statement of Revenues and Expenditures and Surplus Budget REVENUES Manitoba Dental Association grant $ 85,000 $ 88,835 $ 87,267 Continuing education 1,000 10, Merchandise sales Other , ,847 87,817 EXPENSES Advertising and promotion 5, ,509 Amortization - 1,326 2,510 Continuing education 5,000 7,303 5,525 Donations and awards 1,500 1,375 1,400 Insurance 1, Interest and bank charges Meetings 1,500 1,565 1,302 Membership fees 30,000 28,500 28,200 Merchandise - 1,743 - Office 2,100 1,835 1,408 Postage and courier 1, ,533 Printing 1, ,661 Professional fees 1,000 2,000 3,024 Rent and parking 5,040 5,040 5,040 Salaries and wages 24,200 19,310 19,606 Telephone and internet 2,220 1,769 1,759 Travel 5,000 4,452 4,392 Website 2,500 1,881 4,298 88,235 80,576 84,077 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENSES (1,935) 20,271 3,740 SURPLUS - BEGINNING OF YEAR 93,738 93,738 89,998 SURPLUS - END OF YEAR $ 91,803 $ 114,009 $ 93,738

5 Notes to Financial Statements 1. ORGANIZATION AND PURPOSE Manitoba Dental Assistants Association is a not-for-profit provincial professional organization of dental assistants whose purpose is to advance the careers of dental assistants in Manitoba and to promote the dental assisting profession in matters of education and professional activities which enhance the delivery of quality dental health care to the public. The Association is exempt from income tax under Section 149(1) of the Income Tax Act. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Future changes in significant accounting policies The following accounting standards have been issued by the Canadian Institute of Chartered Accountants (CICA) but are not yet effective for the association. The association is currently evaluating the effect of adopting these standards, which it expects to do in fiscal year The Accounting Standards Board will be implementing Part III of the CICA Handbook Accounting Standards for Not-for-Profit Organizations effective January 1, The association will be assessing the impact of the new standards on its financial statements over the next year. Early adoption is permitted for the new standards. Merchandise inventory Merchandise inventory is valued at the lower of cost and net realizable value with the cost being determined on a weighted average basis. (continues)

6 Notes to Financial Statements 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Property, plant and equipment Property, plant and equipment are stated at cost less accumulated amortization. Property, plant and equipment are amortized over their estimated useful lives at the following rates and methods: Computer software 100% declining balance method Other machinery and equipment 20% declining balance method Revenue recognition The Association follows the deferral method of accounting for contributions. Restricted contributions are recognized as revenue in the year in which the related expenses are incurred. 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. Financial Instruments The Association's financial instruments consist of cash, and accounts payable and accrued liabilities. Unless otherwise noted, is management's opinion that the Association is not exposed to any significant interest, currency or credit risks arising from these financial instruments. Fair value The carrying amount of cash and accounts payable and accrued liabilities approximate fair value because of the near-term maturity of those instruments. Use of estimates In preparing the Association's financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenue and expenses during the period. Actual results could differ from these estimates. 3. PROPERTY, PLANT AND EQUIPMENT Cost Accumulated Cost Accumulated amortization amortization Equipment $ 8,286 $ 2,983 $ 8,286 $ 1,657 Computer software $ 9,139 $ 3,836 $ 9,139 $ 2,510 Net book value $ 5,303 $ 6,629

7 Notes to Financial Statements 4. STATEMENT OF CASH FLOWS A statement of cash flows has not been presented because it would not provide any additional meaningful information that is not readily determinable from information presented in the other financial statements. 5. COMMITMENTS The Association leases premises at an annual cost of $5,040. The lease expires on November 30, Subsequent to year-end, the Association entered into a new lease agreement at a new location, effective November 2, The annual costs associated with this lease are $9,450 and the lease expires on October 31, BUDGET The budget figures are presented for comparison purposes, and are unaudited.