JAMES H. STINN - YMCA · TANGIBLE CAPITAL ASSETS (Notes & 6) Net assets, restricted (Note 7) ... Promotion and advertising 38,369 35,784 Insurance 36,926 34,238 Telephone and office

JAMES H. STINN

CPA, Prof. Corp.

SUITE 300- 820 51TH STREET EAST

SASKATOON, SASKATCHEWAN S7K 0X8

PHONE (306) 955-9977 FAX (306) 955-3633

EMAIL [email protected]

SASKATOON FAMILY YOUNG MEN'S

CHRISTIAN ASSOCIATION

FINANCIAL STATEMENTS

AUGUST 31, 2015

SASKATOON FAMILY YOUNG MEN'S CHRISTIAN ASSOCIATION

INDEX TO THE FINANCIAL STATEMENTS

Independent Auditor's Report

Statement of Financial Position

Statement of Changes in Net Assets

Statement of Revenue and Expenditures

Statement of Cash Flows

Notes to the Financial Statements

AUGUST 31, 2015

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JAMES H. STINN, CPA, PROF CORP

y

JAMES H. STINN

CPA, Prof. Corp.

SUITE 300 - 820 51 TH STREET EAST SASKATOON, SASKATCHEWAN S7K 0XS

PHONE (306) 955-9977 FAX (306) 955-3633 EMAi L [email protected]

INDEPENDENT AUDITOR'S REPORT

To the Members of Saskatoon Family Young Men's Christian Association:

I have audited the accompanying financial statements of Saskatoon Family Young Men's Christian Association which comprise the statement of financial position· as at August 31, 2015 and the statements of operations, changes in net assets and cash flows, and schedules of receipts and disbursements for the year then ended, and a· summary of significant accounting policies and other explanatory information.

Organization's responsibility for the Financial Statements

The 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

My responsibility is to express an opinion on these financial statements based on my audit. I conducted my audit in accordance with Canadian auditing standards. Those standards require that I 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 errorilo 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 desigo 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.

I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion.

Opinion

Io my opinion, the financial statements present fairly, in all material respects, the financial position of Saskatoon Family Young Men's Christian Association as at August 31, 2015 and its fmancial performance for the year then ended in accordance with Canadian accounting standards for not-for- profit organizations.

Saskatoon, Saskatchewan November 10, 2015

- I -

SASKATOON FAMILY YOUNG MEN'S CHRISTIAN ASSOCIATION STATEMENT OF FINANCIAL POSITION

AS AT AUGUST 31, 2015

CURRENT Bank - General Term deposits (Note 2) Short term investments (Note 2) Accounts receivable (Note 2) Prepaid expenses

ASSETS

TANGIBLE CAPITAL ASSETS (Notes 2 and 3)

CURRENT Accounts payable and accrued liabilities Deferred revenue (Note 2)

LIABILITIES

Callable term debt due in one year (Note 4)

Callable term debt due thereafter (Note 4)

DEFERRED BUILDING AND EQUIPMENT CONTRIBUTIONS (Notes 2 & 5)

DEFERRED CONTRIBUTIONS RELATED TO TANGIBLE CAPITAL ASSETS (Notes 2 & 6)

Net assets, restricted (Note 7) Net assets, invested in capital assets Net assets, unrestricted

NET ASSETS

2015 2014

$ 190,473 $ 333,975 155,297 205,279 359,271 190,813

9,315 14,237 18,535 14 523

732,891 758,827

1,179,243 1,119,182

� 1,912,134 $ 1,878,009

$ 143,702 $ 121,883 20,785 39,747 30,262 35 598

194,749 197,228 54,472 110 140

249,221 307,368

1,003 40,019

154,852 152,682

405 076 500 069

13,473 13,473 1,094,508 973,444

399,077 391 023

1,507,058 1 377 940

$ 1,912,134 $ 1,878,009

BE�F OF THE BOARD

n \../ 1 p , C/(_ · Director• fr �� Dmcim

he accompanying notes are an integral part of these fmancial statements. -2-

JAMES H. STINN, CPA, PROF CORP.


STATEMENT OF CHANGES IN NET ASSETS

FOR THE YEAR ENDED AUGUST 31, 2015

CAPITAL (Notes 2 and 7) UNRESTRICTED ASSETS RESTRICTED 2015 2014

BALANCE - beginning of year $ 391,023 $ 973,444 $ 13,473 $1,377,940 $1,135,226

Net income 129,118 0 0 129,118 242,714

Purchase of capital assets (162,700) 162,700 0 0 0

Repayment of capital debt (61,004) 61,004 0 0 0

Amortization of capital assets 102,640 {102,640) 0 0 0

BALANCE - end of year $ 399,077 �1,094,508 $ 13,473 $1,507,058 �1,377,940

The accompanying notes are an integral part of these financial statements.

- 3 -JAMES H. STINN, CPA, PROF CORP


STATEMENT OF REVENUE AND EXPENDITURES


2015 2014

REVENUE (Note 2) Program and service fees $ 1,673,417 $ 1,593,921 Memberships 799,048 782,984 Grants 418,100 356,189 Donations and contributions (Note 2) 242,612 279,880 United Way contribution (Note 10) 130,000 130,000 Rental 46,866 38,564 Miscellaneous 19,896 20,256 Investment income 8,326 11,216 Bad debts recovered 366 0 Gain (loss) on disposal of assets 0 2,100 Fund raising projects 0 607

3,338,631 3 215 717

EXPENDITURES Salary, wages and benefits 2,218,136 2,031,174 Maintenance and supplies 208,915 206,547 Utilities 184,793 186,997 Program supplies 101,664 86,904 National and regional allocations 55,662 48,457 Bus rental and travel 49,562 55,063 Interest and bank charges 41,708 34,765 Professional development 39,463 25,438 Promotion and advertising 38,369 35,784 Insurance 36,926 34,238 Telephone and office 34,526 35,879 Expendable equipment 34,516 36,797 Rent 30,846 29,871 Professional fees 25,804 14,523 Interest on long-tenn debt 3,948 3,016 Miscellaneous 2,035 1,033 Bad debts 0 2 871

3,106,873 2,869,357

NET INCOME FROM OPERATIONS 231,758 346,360

OTHER EXPENSES

Amortization 102 640 103 646

NET INCOME $ 129,118 $ 242,714


- 4 -JAMES H. STINN, CPA, PROF.CORP.


STATEMENT OF CASH FLOWS


OPERATING ACTMTlES

Revenue and related receipts Disbursements to employees and suppliers Disbursements to goverrunent

FINANCING ACTMTlES

Advances of term debt Repayment of term debt

INVESTING ACTMTIES

Purchase of tangible capital assets Proceeds on disposal of tangible capital assets Purchase of short term investments

DECREASE IN CASH

CASH, beginning of year

CASH, end of year

COMPONENTS OF CASH

Bank - General Term deposits

2015

$ 3,287,745 (2,603,799)

(485,268)

198,678

0 (61,004)

(61,004)

(162,700) 0

(168,458)

(331,158)

(193,484)

539 254

$ 345,770

$ 190,473 155.297

$ 345,770


2014

$ 3,236,786 (2,576,036)

(405,607)

$ 255,143

150,000 (38,793)

111 207

(353,325) 1,900

(190,813)

(542,238)

(175,888)

715 142

$ 539,254

$ 333,975 205,279

$ 539.254

-5-JAMES H. STINN, CPA, PROF.CORP.


NOTES TO THE FINANCIAL STATEMENTS


1. PURPOSE OF THE ORGANIZATION

The Saskatoon Family YMCA is a volunteer driven organization, offering opportunities for health through personalgrowth and service to others. In our diverse community they are committed to all. YMCA of Saskatoon is aregistered charity and as snch, may issue tax-deductible receipts to donors and is exempt from income tax under149(1)(!) of the Income Tax Act.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The financial statements of the Association have been prepared in accordance with Canadian accounting standardsfor not-for-profit organizations (ASNPO).

Use ofEstimates

When preparing financial statements according to ASNPO, the Association makes estimates and assumptionsrelating to:

Reported amounts ofrevenue and expenses; Reported amounts of assets and liabilities; and Disclosure of contingent assets and liabilities.

Management's assumptions are based on a number of factors, including historical experience, current events and actions that the organization may undertake in the futnre, and other assumptions that we believe are reasonable under the circumstances. Aetna! results could differ from those estimates under different conditions and assumptions. Estimates were used when accounting for certain items, such as the useful lives of capital assets and impairment oflong-lived assets.

Cash .and Cash Equivalents

. For the purposes of these financial statements, cash and cash equivalents is composed strictly of cash, plus outstanding deposits, less outstanding cheque's.

Term Deposits

Term deposits are reported at the fair market value. Cost consists of the original purchase price plus interest accrued to the statement date.

Short term investtnents

Short term investtnents consists of investtnents with the Saskatoon Community Foundation, and is reported at the fair market value. The investtnents are redeemable on 30 days notice.

Accounts Receivable

Accounts receivable are shown net of allowance for doubtful accounts, if any.


- 6 -JAMES H. STINN, CPA, PROF CORP.




2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued

Tangible Capital Assets

Tangible capital assets are stated at cost less accumulated amortization. Contributed tangible capital assets arerecorded at fair value at the date of contribution. Tangible capital assets are amortized over their estimated usefullives at the following rates and methods:

Building Camp equipment Computer hardware and software Furniture and equipment Leasehold improvements

- 4% declining balance- 20% straight line- 25% straight line- 20% straight line- 25% straight line

In the year of acquisition, only one-half of the stated rate is applied to the additions. The Association regularly reviews its capital assets to eliminate obsolete items.

Revenue Recognition and Deferred Revenue

Saskatoon Family YMCA follows the deferral method of accounting for revenues:

Restricted revenue is recognized in the year in which the related expenses are incurred. Unrestricted revenue, including unrestricted donations, is recognized as revenue when received or receivable if the amount to be received can be reasonably estimated and collection is reasonably assured.

Pledges related to capital campaigns are recognized when the above criteria are met.

Membership fees are recognized when paid, with the exception of annual memberships paid in advance. Memberships paid in advance are initially recorded as deferred revenue and recognized as revenue over the term of the membership.

Program fees and service revenues are recorded when the related activities have commenced.

Government grants are recorded as deferred revenue if the associated programs the funds were intended to support have not yet taken place. Otherwise, they are recorded as income.

Investment income is recognized when earned.

Grants and donations received for capital asset acquisitions are recognized as revenue on the income statement under the matching principal in correlation with the amortization of the related assets.

Donated Materials and Services

Donated materials and services are recorded at fair value, when fair value can be reasonably estimated and when the materials and services are normally purchased.

Saskatoon Family YMCA is dependent on the voluntary services of many individnals to the activities of the Association. Since these services are not normally purchased and because of the difficulty in determining their fair value, no amount has been reflected in these financial statements for volunteer services.


-7-JAMES H. STINN, CPA, PROF.CORP.




2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued

Financial Instruments and Hedges

Financial assets and financial liabilities held-for-trading are measured at fair value and changes in those fair valuesare recognized in investment income. Financial assets available for sale are measured at fair value, with changesin those fair values recorded directly in net assets. Financial assets held-to-maturity, loans or receivables and otherfinancial liabilities are measured at amortized cost using the effective interest rate method of amortization.

The Association has classified all financial assets as loans or receivables, with the exception of cash and cashequivalents, short-t= deposits and investments. Cash and cash equivalents, short-term deposits and investmentshave been classified as held-for-trading. Gains and losses related to these items are recognized in investmentincome in the period in which they arise. The Association has classified all financial liabilities as other financialliabilities.

The Association assess at each consolidated statement of financial position date whether a financial asset carried atcost is impaired. If there is objective evidence that au impairment loss exists, the amount of the loss is measured asthe difference between the carrying amount of the asset and its fair value. The carrying amount of the asset isreduced and the amount of the loss is recognized in the consolidated statement of operations and changes in fundbalances.

3. TANGIBLE CAPITAL ASSETSAccumulated Net Net

Cost Amortization 2015 2014

Land - at nominal value $ 1 $ 0 $ 1 $ 1 Building 3,195,106 2,194,143 1,000,963 932,456 Camp equipment 63,849 60,585 3,264 11,224 Computer hardware 93,849 80,163 13,686 19,430 Computer software 20,312 6,775 13,537 14,825 Furniture and equipment 717,742 588,563 129,179 116,206 Sutherland improvements 39,515 27,293 12,222 22,100 Website and network 8 264 I 873 6 391 2 940

$ 4,138,638 � 2,959,395 $ 1,179,243 � 1,119,182

The accompanying notes are an integral part of these fmancial statements.





4. CALLABLE DEBT

Royal Bank - demand Joan due April 2015- monthly principal and interest payment $1,819.85- interest calculated at 3 .52%- secnred against property

Royal Bank - Joan for facility renovation- demand Joan due May 2018- monthly principal and ioterest payment $2,729.00 ioterest calculated at 3 .5%- secnred with a general securityagreement

Less: cnrrent portion

$

2015

0

84,734

84,734 (30,262)

$

2014

7,249

138,489

145,738 (35,598)

1 54,472 $ 110,140

Estimated principal payments due io ihe comiog years are as follows:

2016 2017 2018

$ 30,262 31,340 23,132

$ 84,734

5. DEFERRED BUILDING AND EQUIPMENT CAPITAL CONTRIBUTIONS

The Association has an ongoiog capital campaign to raise money for various capital expenditnres includiog capitalcontributions, major refurbishments and equipment pnrchases. Deferred buildiog and equipment capitalcontributions balance represent the balance of money raised which has not yet been spent on such expenditnres.

The changes io deferred buildiog and equipment capital contributions are as follows:

Balance, begioniog of year Pledges received dnriog the year Capital expenditnres

Balance, end of year

2015

$ 40,019 $ 0

(39,016)

$· I 003 $


2014

25,579 63,600

(49,160)

40.019

- 9 -JAMES H. STINN, CPA, PROFCORP.




6. DEFERRED CONTRIBUTIONS RELATED TO TANGIBLE CAPITAL ASSETS

Deferred contribntions related to tangible capital assets represent restricted contribntions. The changes in deferredcontribntions balance for the year are as follows:

2015 2014

Balance, beginning of year $ 152,682 $ 150,496 Transferred from deferred building and capital contribution acconut 39 016 49 160

191,698 199,656 Less amounts amortized to revenue (36,846} (46,974}

Balance, end of year $ 154 852 $ 152;682

7. NET ASSETS, RESTRICTED

2015 2014

Capital Campaign Fnud $ 4,865 $ 4,865 Endowment Fund 5,091 5,091 George Porteous Trust Fnud 3 516 3 516

$ 13.472 $ 13.472

The endowment fund consists of donations from various individuals that are held in trust. Any income earned from the investroent of these funds is to be used towards the YMCA Strong Kids Program.

The estate of the late George Porteous donated funds to the Association that are to be held in trnst. Any income earned from the investroent is to be used towards the YMCA Strong Kids Program.

8. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT

The Association, as part of its operations, carries a number of financial instruments. It is the board of director'sopinion that the Association is not exposed to significant interest or credit risk arising from these fmancialinstruments except as otherwise disclosed.

Risk Management Policy

The Board of Directors observes an informal risk management policy by maintaining the majority of theAssociation's equity in liquid assets.

Fair Value Disclosure

The carrying amount of cash, acconuts receivable and acconuts payable approximates their fair value due to theshort-term maturities of these items.

Liquidity Risk

Liquidity risk is the risk that the Association will encounter difficulty in meeting obligations associated withfinancial liabilities. The Association enters into transactions to purchase goods and services on credit, borrowfunds from creditors, etc. for which repayment is required at various maturity dates. Liquidity is measured byreviewing the Association's future net cash flows for the possibility of a negative cash flow. The Associationmanages the liquidity risk resulting from its acconuts payable by investing in liquid assets.




NOTES TO THE FJNANCIAL STATEMENTS


8. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT, continued

Credit Risk

Financial instruments that potentially subject the Association to concentrations of credit risk consist of acconntsreceivable. The maximum credit risk exposure is $9,315 (2014 - $14,237). The Association believes that there isminimal risk associated with the collection of these amonnts as it performs regular credit assessments and providesallowances for potentially nncorrectable acconnts.

Interest Rate Risk

Interest rate risk it the risk that the value of a financial instrument might be adversely affected by a change in theinterest rates. Changes in market interest rates may have an effect on the cash flows associated with some financialassets and liabilities, known as cash flow risk, and on the fair value of other financial assets or liabilities, known asprice risk. In seeking to minimize the risks from interest rate fluctuations, the Association manages exposurethrough investing in short-term instruments. The Association is exposed to interest rate risk primarily relating to itsinvestments in short term fixed rate instruments.

9. CAPITAL DISCLOSURE

The Association defines capital as its net assets. The Association's overall objective with its capital is to fund capital assets, future projects and ongoing operations. In order to facilitate the management of its capital requirements, the Association prepares annual revenue and expenditure budgets that are updated as necessary depending on various factors. Management and the Board of Directors carefully consider fundraising campaigns, grants, sponsorship, investments and financing to ensure that sufficient funds will be available to meet the Association's short and long-term objectives.

The Association is subject to externally imposed capital requirements imposed by RBC Royal Bank. The Association believes that it was in compliance with these requirements throughout the year ending August 31, 2015.

10. SUBSEQUENT EVENTS

The Association has been advised by the United Way that for the calendar year starting January 1, 2016 they willnot be receiving any funding. In recent years, the Association has been receiving a grant of $130,000.


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JAMES H. STINN, CPA, PROF.CORP.

Documents

JAMES H. STINN - YMCA · TANGIBLE CAPITAL ASSETS (Notes & 6) Net assets, restricted (Note 7) ... Promotion and advertising 38,369 35,784 Insurance 36,926 34,238 Telephone and office