Financial Statements March 31, 2020 - Victoria Brain Injury Society
Independent Practitioner's Review Engagement Report and associated financial statements for the fiscal year 2020.
VICTORIA BRAIN INJURY SOCIETY
FINANCIAL STATEMENTS
MARCH 31, 2020
Registration # 122452121 RR0001
TABLE OF CONTENTS
| Financial Statements | Page |
|---|---|
| Independent Practitioner's Review Engagement Report | |
| 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 - 9 |
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, 2020, 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, 2020, 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.
INDEPENDENT PRACTITIONER'S REVIEW ENGAGEMENT REPORT, continued
Emphasis of Matter Note 2 describes the Going Concern assumption which has been used in the preparation of these financial statements.
Sidney, BC June 30, 2020
Hughesman Morris Chartered Professional Accountants
VICTORIA BRAIN INJURY SOCIETY
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED MARCH 31
(unaudited)
| 2020 | 2019 | |
|---|---|---|
| REVENUES | ||
| Brain injury program - VIHA | $ 167,114 | $ 153,732 |
| Grants (note 4) | 162,837 | 234,064 |
| Fundraising | 41,708 | 32,069 |
| Donations | 18,413 | 22,008 |
| Advertising and memberships | 2,279 | 771 |
| Contract funding | 230 | 150 |
| Rental | - | 525 |
| 392,581 | 443,319 | |
| EXPENDITURES | ||
| Advertising and promotion | 1,399 | 634 |
| Amortization | 605 | 2,228 |
| Bad debts | - | 50 |
| Contract facilitators | 12,400 | 12,650 |
| Dues, fees and licenses | 4,668 | 1,516 |
| Fundraising | 16,225 | 21,425 |
| Insurance | 3,051 | 2,900 |
| Interest and bank charges | 2,065 | 1,455 |
| Office | 33,739 | 31,031 |
| Professional development | 5,553 | 312 |
| Program support | 3,004 | 4,806 |
| Rent | 56,583 | 54,501 |
| Repairs and maintenance | 2,440 | 3,502 |
| Telephone | 2,119 | 2,763 |
| Wages and benefits | 338,939 | 262,331 |
| 482,790 | 402,104 | |
| (DEFICIENCY) EXCESS OF REVENUES OVER EXPENDITURES | $ (90,209) | $ 41,215 |
VICTORIA BRAIN INJURY SOCIETY
STATEMENT OF FINANCIAL POSITION
AS AT MARCH 31
(unaudited)
| 2020 | 2019 | |
|---|---|---|
| ASSETS | ||
| CURRENT | ||
| Cash | $ 51,341 | $ 125,619 |
| Restricted cash (note 6) | 15,510 | 31,770 |
| Accounts receivable | - | 23,306 |
| Prepaid expenses | 4,232 | 6,826 |
| 71,083 | 187,521 | |
| Property, plant and equipment (note 5) | 345 | 950 |
| $ 71,428 | $ 188,471 | |
| LIABILITIES | ||
| CURRENT | ||
| Accounts payable and accrued liabilities | $ 14,493 | $ 15,688 |
| Due to government agencies | 4,203 | 13,582 |
| Deferred contributions (note 6) | 15,510 | 31,770 |
| 34,206 | 61,040 | |
| NET ASSETS | ||
| General fund | 36,878 | 126,482 |
| Invested in capital | 344 | 949 |
| 37,222 | 127,431 | |
| $ 71,428 | $ 188,471 |
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 2020 | Total 2019 | |
|---|---|---|---|---|
| BALANCE, BEGINNING OF YEAR | $ 126,482 | $ 949 | $ 127,431 | $ 86,216 |
| (Deficiency) excess of revenues over expenditures | (90,209) | - | (90,209) | 41,215 |
| Amortization | 605 | (605) | - | - |
| BALANCE, END OF YEAR | $ 36,878 | $ 344 | $ 37,222 | $ 127,431 |
VICTORIA BRAIN INJURY SOCIETY
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED MARCH 31
(unaudited)
| 2020 | 2019 | |
|---|---|---|
| CASH FLOWS FROM OPERATING ACTIVITIES | ||
| Cash received from general contributors | $ 232,223 | $ 233,217 |
| Cash received from government funding | 167,404 | 154,909 |
| Cash paid to suppliers and employees | (490,165) | (396,379) |
| NET DECREASE IN CASH | (90,538) | (8,253) |
| CASH, BEGINNING OF YEAR | 157,389 | 165,642 |
| CASH, END OF YEAR | $ 66,851 | $ 157,389 |
| CASH CONSISTS OF: | ||
| Cash | $ 51,341 | $ 125,619 |
| Restricted cash | 15,510 | 31,770 |
| $ 66,851 | $ 157,389 |
VICTORIA BRAIN INJURY SOCIETY
NOTES TO THE FINANCIAL STATEMENTS
AS AT MARCH 31, 2020
(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. GOING CONCERN
These financial statements have been prepared on a going concern basis which contemplates the realization of assets and the payment of liabilities in the ordinary course of business. Should the Society be unable to continue as a going concern, it may be unable to realize the carrying value of its assets and to meet its liabilities as they become due.
Although the Society reported a loss in 2020, this is not expected to be a permanent issue, and the board and management have implemented strategies for 2021 and onward to ensure that this does not continue.
The accompanying financial statements do not include any adjustments relating to the recoverability of assets and to the reclassification of asset and liability amounts that might be necessary should the Society be unable to continue its operations.
3. 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.
The Society records revenue from advertising and memberships as services are performed.
The Society records revenue from fundraising at the time of the event.
3. SIGNIFICANT ACCOUNTING POLICIES, continued
(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 and accounts receivable. Financial liabilities measured at amortized cost include accounts payable and accrued liabilities.
(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) 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 life of property, plant and equipment. 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.
4. GRANTS
| 2020 | 2019 | |
|---|---|---|
| Brain Injury Alliance | $ 93,223 | $ 127,806 |
| Charlton L. Smith | - | 5,000 |
| City of Victoria | 2,125 | 8,125 |
| Dr. Gur Singh | (2,465) | 4,553 |
| Government of Canada | - | 6,072 |
| ICBC Peer Support Program | 3,968 | 11,905 |
| Music Heals Foundation | 6,791 | 4,895 |
| Quail Rock Foundation | 11,667 | 10,833 |
| Rotary Club of Victoria | - | 2,000 |
| Shoppers Drug Mart Life Foundation | 2,000 | - |
| United Way | 45,000 | 45,000 |
| Vandekerkhove | - | 4,375 |
| Vancity Community Foundation | - | 1,500 |
| Victoria Foundation | - | 2,000 |
| Victoria Foundation - Endowment Fund | 528 | - |
| $ 162,837 | $ 234,064 |
5. PROPERTY, PLANT AND EQUIPMENT
| Cost | Accumulated amortization | 2020 Net | 2019 Net | |
|---|---|---|---|---|
| Computer equipment | $ 19,987 | $ 19,987 | $ - | $ 108 |
| Office equipment | 4,120 | 3,775 | 345 | 842 |
| $ 24,107 | $ 23,762 | $ 345 | $ 950 |
6. DEFERRED CONTRIBUTIONS
Cash is externally restricted for the following purposes:
| Opening balance | Contributions | Disbursements | Closing balance | |
|---|---|---|---|---|
| Brain Injury Alliance | $ - | $ 93,223 | $ (93,223) | $ - |
| Vancouver Island Health Authority | 13,219 | 167,405 | (167,114) | 13,510 |
| Other | 18,551 | 3,000 | (19,551) | 2,000 |
| $ 31,770 | $ 263,628 | $ (279,888) | $ 15,510 |
7. 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 or other price risks.
8. LEASE COMMITMENTS
The Society's total commitments under various operating leases, are as follows:
| Year | Amount |
|---|---|
| 2021 | $ 46,470 |
| 2022 | 45,904 |
| 2023 | 47,052 |
| 2024 | 48,228 |
| 2025 | 49,434 |
| Total | $ 237,088 |
9. 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.
| 2020 | |
|---|---|
| Beginning balance, market value | $ 15,548 |
| Total investment returns | (818) |
| Administration fees | (78) |
| Grants paid | (528) |
| Ending balance | $ 14,124 |
As of March 31, 2020, there were funds of $564 available to grant.
10. SUBSEQUENT EVENTS
Subsequent to year end the COVID-19 global pandemic was ongoing. The pandemic has had no significant impacts on the Society.
Furthermore, subsequent to year end the company received the government's Canada Emergency Business Account (CEBA) loan in response to the pandemic. The loan is held at Vancity Credit Union. It bears no interest and is due to be paid by December 31, 2022. Should the loan be paid in full at that time, 25% ($10,000) will be forgiven and will be recognized as revenue at that time. Should the loan not be paid back, it will be converted to a term loan with an annual interest rate of 5%, payable in monthly instalments and due December 31, 2025.
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