Wear 2 Start Society Compiled Financial Information

COMPILATION ENGAGEMENT REPORT

To the Management of Wear 2 Start Society

On the basis of information provided by management, we have compiled the statement of financial position of Wear 2 Start Society as at September 30, 2024, and the statements of revenues and expenditures and changes in net assets for the year then ended, and Note 2, which describes the basis of accounting applied in the preparation of the compiled financial information ("financial information").

Management is responsible for the accompanying financial information, including the accuracy and completeness of the underlying information used to compile it and the selection of the basis of accounting.

We performed this engagement in accordance with Canadian Standard on Related Services (CSRS) 4200, Compilation Engagements, which requires us to comply with relevant ethical requirements. Our responsibility is to assist management in the preparation of the financial information.

We did not perform an audit engagement or a review engagement, nor were we required to perform procedures to verify the accuracy or completeness of the information provided by management. Accordingly, we do not express an audit opinion or a review conclusion, or provide any form of assurance on the financial information.

Readers are cautioned that the financial information may not be appropriate for their purposes.

A partner in our firm is a member of the Board of Directors for Wear 2 Start Society.

Victoria, British Columbia February 26, 2025

Chartered Professional Accountants

RMC Chartered Professional Accountants LLP 300-1095 McKenzie Ave, Victoria, BC V8P 2L5 P: 250-410-4185 | F: 250-410-4182 | W: www.rmccpa.ca

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WEAR 2 START SOCIETY

Statement of Financial Position

September 30, 2024

ON BEHALF OF THE BOARD

_____________________________ Director

_____________________________ Director

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WEAR 2 START SOCIETY

Statement of Revenues and Expenditures

Year Ended September 30, 2024

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WEAR 2 START SOCIETY

Statement of Changes in Net Assets

Year Ended September 30, 2024

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WEAR 2 START SOCIETY

Notes to Compiled Financial Information

Year Ended September 30, 2024

1. PURPOSE OF THE SOCIETY

Wear 2 Start Society (the "Society") is a not-for-profit organization of British Columbia. As a registered charity the Society is exempt from the payment of income tax under Subsection 149(1) of the Income Tax Act.

The Society operates to provide clothing and related items and services to self-identified women in need who require assistance in obtaining clothing for work and life.

2. BASIS OF ACCOUNTING

The basis of accounting applied in the preparation of the statement of financial position of Wear 2 Start Society as at September 30, 2024, and the statements of revenues and expenditures and changes in net assets for the year then ended is the historical cost basis and reflects cash transactions with the addition of:

• Receivables less an allowance for doubtful accounts;
• Prepaid expenses;
• Tangible capital assets are amortized over their useful lives;
• Deferred income.

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Net assets

a) The Operating Fund consists of the excess of revenue over expenses accumulated by the Society each year and is available for general purposes.

b) The Capital Asset Fund reports the assets, liabilities, revenues and expenses related to the Society's capital assets. The ending fund balance represents the net book value of the capital assets. The related amortization expense is recorded in the capital asset fund.

Tangible capital assets

Tangible capital assets are stated at cost or deemed cost less accumulated amortization and are amortized over their estimated useful lives on a straight-line basis at the following rates:

• Computer equipment: 3 years
• Furniture and equipment: 5 years

The Society regularly reviews its tangible capital assets to eliminate obsolete items. Government grants are treated as a reduction of tangible capital assets cost.

Tangible capital assets acquired during the year but not placed into use are not amortized until they are placed into use.

Revenue recognition

The Society follows the deferral method of accounting for contributions which includes grants and donations.

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. Externally restricted contributions are recognized as revenue in the year in which the related expenses are incurred. Revenue received that relates to future periods is recorded as deferred revenue.

Donations in kind

Donations in kind are recorded at their fair market value at the time of the donation. During the year, no donations in kind were recorded (2023 - $0).

Contributed services

Volunteers contribute a significant amount of their time each year. Because of the difficulty in determining their fair value, contributed services are not recognized in the financial statements.

Inventory

The amount recorded as inventory is an estimate which we are required to provide for insurance and tax filing purposes. Given that the majority of inventory is donated, this estimate is conservative.

4. BEQUESTS

In October 2023, the Society received the final portion of the bequest we were given by Sandra Beaton.

5. RESTRICTED CASH

Restricted cash has been internally restricted for use in the event that the Society can not cover its lease obligations.

6. GST/HST RECEIVABLE

As a registered charity, the Society is eligible to claim a GST rebate representing 50% of the GST paid on purchases. Fiscal year 2024 is the first year that the Society has applied for this rebate.

7. TANGIBLE CAPITAL ASSETS

8. DEFERRED REVENUE

Deferred revenue relates to funding received in the current period that will be recognized in line with the related expenses in a subsequent period. The deferred revenue balances consist of unspent grants received from the following organizations:

9. INSURANCE EXPENSE

The Society carries both Business Insurance and Directors and Officers Liability Insurance.

Due to multiple changes in the Treasurer position within a single year last year, the accrual of a portion of our business insurance was not reversed in the correct fiscal. Insurance expense was understated in a past year and is overstated this year due to the accrual being reversed. In future years, we intend to expense the insurance in the year in which the expenditure is made.

10. COMMITMENT

The Society leases space for its boutique and storage room. The annual lease payments are $12,300 exclusive of GST. The Society's current lease agreement expires October 31, 2025.