VICTORIA BRAIN INJURY SOCIETY FINANCIAL STATEMENTS MARCH 31, 2022
Audited financial statements for the Victoria Brain Injury Society for the fiscal year ending March 31, 2022.
VICTORIA BRAIN INJURY SOCIETY
FINANCIAL STATEMENTS
MARCH 31, 2022
TABLE OF CONTENTS
Independent Practitioner's Review Engagement Report
Financial Statements
- Statement of Operations: 1
- Statement of Financial Position: 2
- Statement of Changes in Net Assets: 3
- Statement of Cash Flows: 4
- Notes to the Financial Statements: 5 - 10
INDEPENDENT PRACTITIONER'S REVIEW ENGAGEMENT REPORT
To the Members of Victoria Brain Injury Society
We have reviewed the accompanying financial statements of Victoria Brain Injury Society that comprise the statement of financial position as at March 31, 2022, and the statements of operations, changes 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.
Practitioner's Responsibility Our responsibility is to express a conclusion on the accompanying financial statements based on our review. We conducted our review in accordance with Canadian generally accepted standards for review engagements, which require us to comply with relevant ethical requirements.
A review of financial statements in accordance with Canadian generally accepted standards for review engagements is a limited assurance engagement. The practitioner performs procedures, primarily consisting of making inquiries of management and others within the entity, as appropriate, and applying analytical procedures, and evaluates the evidence obtained.
The procedures performed in a review are substantially less in extent than, and vary in nature from, those performed in an audit conducted in accordance with Canadian generally accepted auditing standards. Accordingly, we do not express an audit opinion on these financial statements.
Conclusion Based on our review, nothing has come to our attention that causes us to believe that the financial statements do not present fairly, in all material respects, the financial position of Victoria Brain Injury Society as at March 31, 2022, and its results of operations and its cash flows for the year then ended in accordance with Canadian accounting standards for not-for-profit organizations.
Sidney, BC July 26, 2022
Hughesman Morris Liversedge Chartered Professional Accountants
9768 THIRD STREET, SIDNEY, B.C., V8L 3A4 | TOLL FREE 1.800.286.1212 | TELEPHONE 250.656.3991 | FAX 250.656.6486 MAIL@SIDNEYACCOUNTANTS.CA | WWW.SIDNEYACCOUNTANTS.CA
VICTORIA BRAIN INJURY SOCIETY
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED MARCH 31 (unaudited)
| REVENUES | 2022 | 2021 |
|---|---|---|
| Grants and government subsidies (note 3) | $ 314,520 | $ 364,584 |
| Brain injury program - VIHA | 180,195 | 165,519 |
| Fundraising | 158,105 | 4,717 |
| Donations | 22,812 | 21,843 |
| Advertising, memberships and misc. | 2,601 | 1,502 |
| Contract funding | - | 40 |
| 678,233 | 558,205 | |
| EXPENDITURES | ||
| Advertising and promotion | 3,651 | 1,526 |
| Amortization | 10,389 | 3,060 |
| Contract facilitators | 20,500 | 13,510 |
| Dues, fees and licenses | 999 | 1,545 |
| Fundraising | 78,043 | 4,224 |
| Insurance | 2,941 | 3,155 |
| Interest and bank charges | 2,539 | 798 |
| Office | 48,379 | 36,573 |
| Professional development | 6,295 | 6,372 |
| Program support | 41,371 | 21,665 |
| Rent | 56,431 | 55,966 |
| Repairs and maintenance | 7,998 | 1,464 |
| Subcontract | 6,930 | - |
| Telephone | 9,410 | 5,864 |
| Wages and benefits | 327,803 | 258,570 |
| 623,679 | 414,292 | |
| EXCESS OF REVENUES OVER EXPENDITURES | $ 54,554 | $ 143,913 |
VICTORIA BRAIN INJURY SOCIETY
STATEMENT OF FINANCIAL POSITION
AS AT MARCH 31 (unaudited)
| ASSETS | 2022 | 2021 |
|---|---|---|
| CURRENT | ||
| Cash | $ 77,545 | $ 229,250 |
| Restricted cash (note 7) | 102,463 | 77,781 |
| Short term investment (note 4) | 200,000 | - |
| Accounts receivable | 6,530 | 6,389 |
| Prepaid expenses | 4,611 | 4,422 |
| Due from government agencies | 2,050 | 2,455 |
| 393,199 | 320,297 | |
| Property, plant and equipment (note 5) | 26,498 | 10,058 |
| Intangible assets (note 6) | 7,821 | 10,056 |
| $ 427,518 | $ 340,411 | |
| LIABILITIES | ||
| CURRENT | ||
| Accounts payable and accrued liabilities | $ 10,867 | $ 6,307 |
| Wages payable | 18,499 | 15,188 |
| Deferred contributions (note 7) | 102,463 | 77,781 |
| 131,829 | 99,276 | |
| CEBA loan (note 8) | 60,000 | 60,000 |
| 191,829 | 159,276 | |
| NET ASSETS | ||
| General fund | 201,370 | 161,021 |
| Invested in capital | 34,319 | 20,114 |
| 235,689 | 181,135 | |
| $ 427,518 | $ 340,411 |
Approved on behalf of the Board
Members ____________________
Members ____________________
VICTORIA BRAIN INJURY SOCIETY
STATEMENT OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED MARCH 31 (unaudited)
| General fund | Invested in capital | Total 2022 | Total 2021 | |
|---|---|---|---|---|
| BALANCE, BEGINNING OF YEAR | $ 161,021 | $ 20,114 | $ 181,135 | $ 37,222 |
| Excess (deficiency) of revenues over expenditures | 64,943 | (10,389) | 54,554 | 143,913 |
| Transfer to net assets invested in capital | (24,594) | 24,594 | - | - |
| BALANCE, END OF YEAR | $ 201,370 | $ 34,319 | $ 235,689 | $ 181,135 |
VICTORIA BRAIN INJURY SOCIETY
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED MARCH 31 (unaudited)
| 2022 | 2021 | |
|---|---|---|
| CASH FLOWS FROM OPERATING ACTIVITIES | ||
| Cash received from general contributors | $ 487,144 | $ 351,232 |
| Cash received from government funding | 224,293 | 262,855 |
| Cash paid to suppliers and employees | (613,866) | (411,078) |
| 97,571 | 203,009 | |
| CASH FLOWS FROM FINANCING ACTIVITY | ||
| Advance of CEBA loan | - | 60,000 |
| CASH FLOWS FROM INVESTING ACTIVITIES | ||
| Purchase of short term investments | (200,000) | - |
| Purchase of property, plant and equipment | (24,594) | (12,773) |
| Purchase of intangible assets | - | (10,056) |
| (224,594) | (22,829) | |
| NET (DECREASE) INCREASE IN CASH | (127,023) | 240,180 |
| CASH, BEGINNING OF YEAR | 307,031 | 66,851 |
| CASH, END OF YEAR | $ 180,008 | $ 307,031 |
| CASH CONSISTS OF: | ||
| Cash | $ 77,545 | $ 229,250 |
| Restricted cash (note 7) | 102,463 | 77,781 |
| $ 180,008 | $ 307,031 |
VICTORIA BRAIN INJURY SOCIETY
NOTES TO THE FINANCIAL STATEMENTS
AS AT MARCH 31, 2022 (unaudited)
1. NATURE OF OPERATIONS
Victoria Brain Injury Society (the "Society") is registered under the British Columbia Societies Act. The Society operates a not-for-profit centre for individuals and their families suffering from brain injuries. The Society is a registered charity under the Income Tax Act and is exempt from tax.
2. SIGNIFICANT ACCOUNTING POLICIES
These financial statements are prepared in accordance with Canadian accounting standards for not-for-profit organizations. The significant accounting policies are detailed as follows:
(a) Revenue recognition The Society 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.
Government assistance received for wages from the Government of Canada and Government of British Columbia are recognized as income in the same period the wages are incurred.
The portion of government assistance related to forgivable loans under the Canada Emergency Business Account will be recognized as revenue when all conditions of the loan forgiveness are met.
The Society records revenue from advertising and memberships as services are performed.
The Society records revenue from fundraising at the time of the event.
(b) Contributed services Volunteers contribute a significant amount of time to assist the Society in carrying out its services. Because of the difficulty of determining their fair value, contributed services are not recognized in the financial statements.
(c) Financial instruments The Society initially measures its financial assets and liabilities at fair value, except for certain non-arm’s length transactions. The company subsequently measures its financial assets and financial liabilities at amortized cost, except for securities quoted in an active market, which are subsequently measured at fair value.
Financial assets measured at amortized cost include cash, restricted cash, short term investment and accounts receivable. Financial liabilities measured at amortized cost include accounts payable and accrued liabilities, wages payable and CEBA loan payable.
(d) Property, plant and equipment Property, plant and equipment are recorded at cost and are being amortized over their estimated useful lives on a straight-line method, commencing in the year of addition up to and excluding the year of disposal, at the following rates:
- Computer equipment: 3 years
- Office equipment: 5 years
(e) Intangible assets Intangible assets are recorded at cost. The Society provides for amortization using the straight-line method at rates designed to amortize the cost of the intangible assets over their estimated useful lives. The annual amortization rate is as follows:
- Organizational Management System: 5 years
(f) Use of estimates 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 amount of assets and liabilities, revenues and expenses.
The main estimates relate to accounts receivable exposure and the useful lives of property, plant and equipment and intangible assets. Actual results could differ from those estimates, although management does not generally believe such differences would materially affect the financial statements in any individual year.
VICTORIA BRAIN INJURY SOCIETY
NOTES TO THE FINANCIAL STATEMENTS
AS AT MARCH 31, 2022 (unaudited)
3. GRANTS AND GOVERNMENT SUBSIDIES
| 2022 | 2021 | |
|---|---|---|
| BC Covid-19 Temporary Pandemic Pay | $ - | $ 10,720 |
| BC Gaming | 22,725 | 22,840 |
| Bio Talent | 6,480 | - |
| Brain Injury Alliance | 87,375 | 117,500 |
| Canadian Emergency Wage Subsidy | - | 17,303 |
| Capital Region District | 323 | 1,677 |
| Charitable Impact | 12,000 | - |
| Charlton Smith Foundation | 5,000 | - |
| City of Victoria | 4,529 | 5,700 |
| Community Social Services Training Fund | 3,000 | - |
| District of Sooke Community Grant | 2,300 | - |
| Dr. Gur Singh | 1,250 | 3,750 |
| Gift Funds Canada | - | 1,570 |
| Government of BC | 1,026 | 601 |
| Government of Canada | 22,550 | 4,529 |
| ICBC Peer Support Program | 11,832 | 18,168 |
| Island Savings Community Endowment | 10,025 | - |
| Legion Foundation | - | 1,000 |
| Music Heals Charitable Foundation | 11,550 | 4,985 |
| Peninsula Co-op | 1,500 | - |
| Quail Rock Foundation | 8,452 | 1,548 |
| Raymond James Canada Foundation | 1,000 | 1,500 |
| Rotary Club Victoria-Harbourside | - | 3,000 |
| Royal Canadian Mounted Police | 500 | - |
| Ryerson University | 7,071 | - |
| Saanich Peninsula Community Foundation | 2,300 | - |
| Scotia Wealth Management | 34,578 | - |
| Telus Friendly Future Foundation | 13,543 | 5,076 |
| Temporary Wage Subsidy | - | 5,186 |
| The Hamber Foundation | 1,000 | 2,000 |
| The McClean Foundation | - | 7,500 |
| United Way | 20,000 | 73,285 |
| University of Victoria | - | 5,000 |
| Victoria Foundation | 22,000 | 49,582 |
| Victoria Foundation - Endowment Fund | 611 | 564 |
| $ 314,520 | $ 364,584 |
4. SHORT TERM INVESTMENT
The Society holds a non-redeemable 1 year term deposit with an annual interest rate of 1.00%, maturing on March 16, 2023.
VICTORIA BRAIN INJURY SOCIETY
NOTES TO THE FINANCIAL STATEMENTS
AS AT MARCH 31, 2022 (unaudited)
5. PROPERTY, PLANT AND EQUIPMENT
| Cost | Accumulated amortization | 2022 Net | 2021 Net | |
|---|---|---|---|---|
| Computer equipment | $ 56,237 | $ 29,914 | $ 26,323 | $ 9,713 |
| Office equipment | 4,120 | 3,945 | 175 | 345 |
| $ 60,357 | $ 33,859 | $ 26,498 | $ 10,058 |
Amortization for the year amounted to $8,154 (2021 - $1,943)
6. INTANGIBLE ASSETS
| Cost | Accumulated amortization | 2022 Net | 2021 Net | |
|---|---|---|---|---|
| Organizational Management System | $ 11,173 | $ 3,352 | $ 7,821 | $ 10,056 |
| $ 11,173 | $ 3,352 | $ 7,821 | $ 10,056 |
Amortization for the year amounted to $2,235 (2021 - $1,117)
7. DEFERRED CONTRIBUTIONS
Cash is externally restricted for the following purposes:
| Opening balance | Contributions | Disbursements | Closing balance | |
|---|---|---|---|---|
| BC Gaming | $ 35,171 | $ 20,000 | $ (22,725) | $ 32,446 |
| Brain Injury Alliance | - | 116,500 | (87,375) | 29,125 |
| Vancouver Island Health Authority | 14,494 | 180,717 | (180,195) | 15,016 |
| Other | 28,116 | 49,238 | (51,478) | 25,876 |
| $ 77,781 | $ 366,455 | $ (341,773) | $ 102,463 |
VICTORIA BRAIN INJURY SOCIETY
NOTES TO THE FINANCIAL STATEMENTS
AS AT MARCH 31, 2022 (unaudited)
8. CEBA LOAN
The Society received the Government of Canada's Emergency Business Account (CEBA) loan in response to the COVID-19 global pandemic. The loan is held at Vancity. It bears no interest and is due to be paid by December 31, 2025. Should the loan be paid in full by December 31, 2023, 33% ($20,000) will be forgiven and will be recognized as revenue at that time. Should the loan not be repaid at or before that time, it will be converted to a term loan with an annual interest rate of 5%.
9. FINANCIAL INSTRUMENTS
The Society is exposed to various financial risks through transactions in financial instruments. Unless otherwise noted, it is management's opinion that the Society is not exposed to significant currency, credit, liquidity, interest rate, market or other price risks.
10. LEASE COMMITMENTS
The Society's total commitments under various operating leases, are as follows:
| Year | Amount |
|---|---|
| 2023 | $ 49,027 |
| 2024 | 50,204 |
| 2025 | 49,763 |
| 2026 | 4,128 |
| $ 153,122 |
11. FUNDS HELD AT THE VICTORIA FOUNDATION
In 2017 the Victoria Brain Injury Society Fund was established. Victoria Foundation matched Victoria Brain Injury Society's gift of $7,500, for a total of $15,000. The funds are being held in perpetuity by the Victoria Foundation, and are not included on the Statement of Financial Position.
| 2022 | |
|---|---|
| Beginning balance, market value | $ 16,754 |
| Total investment returns | 1,037 |
| Administration fees | (88) |
| Grants paid | (611) |
| $ 17,092 |
As of March 31, 2022, there were funds of $738 available to grant.
VICTORIA BRAIN INJURY SOCIETY
NOTES TO THE FINANCIAL STATEMENTS
AS AT MARCH 31, 2022 (unaudited)
12. COMPARATIVE FIGURES
The financial statements have been reclassified, where applicable, to conform to the presentation used in the current year. The changes do not affect prior year earnings.