Laren Society: Journey from Inside Out Financial Statements March 31, 2012
Audited financial statements for the Laren Society for the fiscal year ending March 31, 2012.
LAREN SOCIETY: JOURNEY FROM INSIDE OUT
FINANCIAL STATEMENTS
MARCH 31, 2012
Independent Auditor's Report Statement I - Statement of Financial Position as at March 31, 2012 Statement II - Statement of Operations and Changes in Fund Balances for the year ended March 31, 2012 Statement III - Statement of Cash Flow for the year ended March 31, 2012 Notes to the Financial Statements
INDEPENDENT AUDITOR'S REPORT
To the Members of Laren Society: Journey from Inside Out:
We have audited the accompanying financial statements of Laren Society: Journey from Inside Out, which comprise the statement of financial position as at March 31, 2012, the statements of operations and changes in fund balances and cash flows for the year then ended, and notes, comprising 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 our 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, we consider internal control relevant to the Society'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 Society'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 common with many non-profit organizations, the society derives some of its revenue from donations and membership fees, the completeness of which is not susceptible to satisfactory audit verification. Accordingly, our verification of these revenues was limited to the amounts recorded in the records of the society and we were not able to determine whether any adjustments might be necessary to these revenues, excess of revenue over expense, assets and surplus.
In our opinion, except for the effect of adjustments, if any, which we might have determined to be necessary had we been able to satisfy ourselves concerning the completeness of the donations and membership fees revenues referred to in the preceding paragraph, the financial statements present fairly, in all material respects, the financial position of Laren Society: Journey from Inside Out as at March 31, 2012, and its results of operations and its cash flows for the year then ended in accordance with Canadian generally accepted accounting principles. As required by the Society Act (British Columbia), we report that, in our opinion, these principles have been applied on a basis consistent with that of the preceding year.
June 8, 2012
Statement I
LAREN SOCIETY: JOURNEY FROM INSIDE OUT
(Incorporated under the B.C. Society Act)
STATEMENT OF FINANCIAL POSITION AS AT MARCH 31, 2012
Audited - See Auditors' Report
| Society Fund | Residence Fund | Mudge Fund (note 5) | 2012 Total | 2011 Total | |
|---|---|---|---|---|---|
| Current Assets | |||||
| Cash & short-term investments | 58,192 | 67,248 | 104,997 | 230,437 | 220,064 |
| Accounts receivable | 23,005 | 23,005 | 20,404 | ||
| Prepaid expenses | 1,124 | 4,731 | 5,855 | 5,710 | |
| 59,316 | 94,984 | 104,997 | 259,297 | 246,178 | |
| Capital assets, net (note 3) | 135,101 | 135,101 | 113,804 | ||
| 194,417 | 94,984 | 104,997 | 394,398 | 359,982 | |
| Current Liabilities | |||||
| Accounts payable | 18,135 | 18,135 | 12,445 | ||
| Fund Balances (notes 3, 4 & 5) | |||||
| Invested in capital assets | 15,746 | 15,746 | (5,551) | ||
| Externally restricted | 119,355 | 119,355 | 119,355 | ||
| Internally restricted | 104,997 | 104,997 | 153,309 | ||
| Unrestricted | 59,316 | 76,849 | 136,165 | 80,424 | |
| 194,417 | 76,849 | 104,997 | 376,263 | 347,537 | |
| 194,417 | 94,984 | 104,997 | 394,398 | 359,982 |
Approved by the Board: Director Director Date
Statement II
LAREN SOCIETY: JOURNEY FROM INSIDE OUT
(Incorporated under the B.C. Society Act)
STATEMENT OF OPERATIONS AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED MARCH 31, 2012
Audited - See Auditors' Report
| Society Fund | Residence Fund | Mudge Fund (note 5) | 2012 Total | 2011 Total | |
|---|---|---|---|---|---|
| Revenues | |||||
| Correctional Services Canada | 499,270 | 499,270 | 449,161 | ||
| Donations | 1,530 | 1,260 | 2,790 | 1,614 | |
| Interest earned | 46 | 100 | 1,689 | 1,835 | 1,945 |
| Membership fees | 115 | 115 | 65 | ||
| Room and board | 120 | ||||
| House rent provision (note 5) | 26,400 | 26,400 | 26,400 | ||
| 1,691 | 500,630 | 28,089 | 530,410 | 479,305 | |
| Expenses | |||||
| Staff costs | 364,340 | 364,340 | 306,032 | ||
| Food and household | 51,454 | 51,454 | 44,823 | ||
| Repairs and maintenance | 9,111 | 9,111 | 10,163 | ||
| Utilities | 19,031 | 19,031 | 15,603 | ||
| Telephone | 1,971 | 1,971 | 1,774 | ||
| Property taxes | 202 | 202 | 200 | ||
| Rent provision (note 5) | 26,400 | 26,400 | 26,400 | ||
| Automobile and travel | 7,446 | 7,446 | 5,326 | ||
| Community activities | 889 | 501 | 1,390 | 409 | |
| Office and administration | 2,305 | 2,305 | 6,521 | ||
| Insurance and audit | 1,225 | 9,225 | 10,450 | 11,460 | |
| Licences and dues | 550 | 550 | 2,548 | ||
| Bank charges and interest | 461 | 461 | 63 | ||
| Miscellaneous | 226 | 226 | 351 | ||
| Depreciation (note 2) | 6,347 | 6,347 | 8,000 | ||
| 8,461 | 493,223 | 501,684 | 439,673 | ||
| Excess (deficiency) of revenues over expenses | (6,770) | 7,407 | 28,089 | 28,726 | 39,632 |
| Fund balances - beginning | 119,918 | 74,310 | 153,309 | 347,537 | 324,905 |
| Inter-fund transfers | 81,269 | (4,868) | (76,401) | ||
| Fund balances - end of year | 194,417 | 76,849 | 104,997 | 376,263 | 364,537 |
Statement III
LAREN SOCIETY: JOURNEY FROM INSIDE OUT
(Incorporated under the B.C. Society Act)
STATEMENT OF CASH FLOW FOR THE YEAR ENDED MARCH 31, 2012
Audited - See Auditors' Report
| Sources (Uses) of Cash | 2012 | 2011 |
|---|---|---|
| Operating Activities | ||
| Excess of (deficiency) of revenues over expenses for the year - Statement II | 28,726 | 39,632 |
| Items not affecting the flow of cash | ||
| Depreciation | 6,347 | 8,000 |
| 35,073 | 47,632 | |
| Net (increase) decrease in receivables and prepaid expenses | (2,746) | (3,732) |
| Net increase (decrease) in accounts payable | 5,689 | (19,306) |
| 38,016 | 24,594 | |
| Investing Activities | ||
| Purchases of furniture, fixtures and equipment | (27,644) | (8,421) |
| Net Increase (Decrease) in Cash Funds | 10,372 | 16,173 |
| Cash funds at beginning of year | 220,065 | 220,893 |
| Cash Funds at End of Year | 230,437 | 237,066 |
| Supplementary information: | ||
| Interest received | 1,835 | 1,945 |
| Interest paid | NIL | NIL |
LAREN SOCIETY: JOURNEY FROM INSIDE OUT
NOTES TO FINANCIAL STATEMENTS - MARCH 31, 2012
Audited - See Auditors' Report
1. Purposes and Status of Society
The society was incorporated under the B.C Society Act in 1978. As a non-profit society it holds a registered charity number from the Canada Revenue Agency and is not subject to income taxes.
The society's mission is to help people make a successful transition to a responsible life in the community by providing a communal home setting and support.
2. Significant Accounting Policies
Fund Accounting
The society follows Canadian accounting standards for not-for-profit entities including the restricted fund method of accounting for contributions.
- Society Fund - shows receipt of general donations and capital asset transactions separate from operations of the Bill Mudge Residence
- Residence Fund - shows the operations of the Bill Mudge Residence
- Mudge Fund - shows assets and activities in this fund as outlined in Note 5 to the financial statements
Capital Assets
Depreciation on a straight line basis is provided for on the building at 5% p.a. and on the furniture, fixtures & equipment at 10% p.a. Capitalized costs related to plans to construct an extension to the existing house are not being amortized until the project is completed.
Donations
Donations include only monetary gifts. Other donations in-kind, particularly that of volunteer labour, are not quantified or reflected in the accounts.
Measurement Uncertainty
The preparation of financial statements in conformity with Canadian generally accepted accounting principles 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 reporting period. By their nature, these estimates are subject to measurement uncertainty and the effect on the financial statements of changes in such estimates in future periods could be significant.
3. Capital Assets
| Cost | Accumulated Amortization | 2012 Net Book Value | 2011 Total | |
|---|---|---|---|---|
| Land | 80,164 | 80,164 | 80,164 | |
| Building | 132,755 | 132,156 | 599 | 1,240 |
| House extension | 31,963 | 31,963 | 14,287 | |
| Furniture & Equipment | 115,644 | 93,269 | 22,375 | 18,114 |
| 360,526 | 225,425 | 135,101 | 113,804 |
4. Externally Restricted Net Assets
An anonymous extraordinary donation in the amount of $119,355 was used to acquire the society's property. This donation was received through the Catholic Foundation of Vancouver Island and contains a condition that, should the society ever dispose of its property or cease to operate as a prison related ministry, the amount of the donation is to be returned to the Foundation to be utilized for the benefit of the Prison Ministry.
Funding received from Correctional Service Canada is restricted to uses approved by the granting authority.
LAREN SOCIETY: JOURNEY FROM INSIDE OUT
NOTES TO FINANCIAL STATEMENTS - MARCH 31, 2012
Audited - See Auditors' Report
5. Father William Mudge Memorial Fund
Several years ago the society received funds from the Estate of Father William Mudge that were set aside in a restricted fund to be used for special projects as approved by the Board. This fund is to receive any individual donations exceeding $1,000 and an annual rental provision from the Bill Mudge Residence operations. A minimum balance of $20,000 is to be maintained in the fund. The current fund balance of $104,997 is invested in a 1 year term deposit due October 7, 2012 with interest at 1.20% p.a. The annual rent provisions for the fiscal periods ending 2006 to 2011 were not added to the Fund (accumulated outstanding balance $120,600; 2011 - $120,600).
6. Economic Dependency and Subsequent Events
The operation of the society's programs depends upon government funding contracts. Correctional Service Canada funds the society under annual contracts on a per resident per day occupancy basis. The contract has been renewed for the 2012-2013 fiscal year.
7. Financial Instruments
The society's financial instruments consist of cash, short-term investments, accounts receivable and accounts payable. Unless otherwise noted, it is management's opinion that the society is not exposed to significant interest, currency or credit risk arising from these financial instruments.
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