the prince edward fitness & aquatic...

THE PRINCE EDWARD FITNESS & AQUATIC CENTER

FINANCIAL STATEMENTS

year ended

AUGUST 31, 2015

\:“\‘èich :

INDEPENI)ENT AUDITOR’S REPORT

To the directors of

THE PRINCE EDWARD FITNESS & AQUT1C CENTER

We have audited the accompanying financial statements of The Prince Edward Fitness & Aquatic Center which comprise

the statement of t inancial position as at August 31. W15. and thc statements of operations. changes: in net assets: and cash

tlows for the year then ended and a summary of significant accounting policies and other explanatory information.

Nianagement’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements tn accordance with Canadian

accounting standards for not-forprofit 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

Our responsibility is to express an opinion on these financial statements based on our audit. We conduL ted our audit in

accordance with Canadian generally accepted auditing standards Those standards requue that we comply with ethical

requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of

matcrial 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 error. In making those risk assessments. the auditor

considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in ordcr to design

audit procedures that are ippropriate in the circumstances but not tor the purpose of expressing an opinion on the

ettectivcness of tht. entitvs internal u ntrol An audit also includes etaluating the ippropnatcness of accounting policies used

‘rid the ieasonahlcness ( t ictounting estimates madt hs man igement as eli is csaluating the ncrall presentation nt ik..

financial statement.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis fbr our audit opinion.

f)pinion

In our opinion thc fin incial statements present fairl\ in dl material respects the finanial position ot The Prince Edward

I’ itniss & quatic ( enter is i \out I Dii i s d it t It’, )t t\ i trailur’s i I N .. oh tti s F s ir ihc. ci dcii

in accordant:c with Ciiuadian acc unting standards Ow ncii tor-profit cirganizatit)1k5.

( H\RTEPEDPROFTSsIfl’s\I \C(()t NI \‘\lSLICENSED PUBLIC A(:COf:!TANiTs

Picun. ( )ntarioI)cccmhcr 4, 2015


(Incorporated under the laws of Canada)

STATEMENT OF FINANCIAL POSITION

AUGUST 31, 2015

ASSETS201L.

$ 106,8017,4794,00345I

_I 18234

2013

CAPITAL ASSETS - note 3 6I232 6i239

$ i8h9ffi $ 62,917

LIABILITIES AND NET ASSETS

CURRENT LIABILITIESAccounts payable and accrued liabilitiesDue to governmentsDeferred membership revenueDeferred government assistance - note 5

$ 26,9954,2576,977

20AXX58229

$ 24,5707,0139,127

1933360O43

DEFERIED CAPITAL CONTRIBUTIONS note 6 4464Q102869

38,40()98,4I

NET ASSETSInvested in capital assets - internally restrictedUnrestricted

18,59260i0579097

24,839

64,474

I) r

$ J8L9

Director

$ l62911

(i RRENT SSE I’S(‘i’h\CCOUfltS receivableGovernment assistance receivablePrepaid expenses

$


STATEMENT OF OPERATIONS

‘tEAR ENDET) AUGUST 31, 2015

2014

REVENUEMembershipsMembership insuranceProgram fees and facility rentalsDay use passesGovernment assistance note 8Fundraising and donationsPro shop salesAmortization of deferred capital contributions

$ 325,6033,886

1 33,7306811

67,36315,5336,377

l&760578J)63

$ 324,7823,510

I 12,7377372

115,62714,9226,587

I 776()— 603,297

EXPENSESAdministrative wages and employee benefitsAdvertising and promotionAmortizationFund raisingInsuranceInterest and bank chargesMaintenanceOfficePool suppliesPro shop purchasesProfessional feesProgram costsRentTelephoneTravelUtilities

109,98824,66225,031

6,19610,0394,155

51,4623,2923,4863,2775,200

149,66285,5262,5482,138

76,778563440

98,03813.38824,5544,009

13,8784,180

94.9143,2257,4795,0674,000

153,74385 ,87)

2,5282.3X)

71.028- 588,299

EXCESS OF REVENUE OVER EXPENSES $ 14,998

TIlE PRINCE EDWRD FITNESS & QUA FlU UENTER

ST TEMENT OF CHANGES IN ET SSETS

YEAR ENDED AUGUST 31, 2015

In\ested in(‘apital \ssets [nrestrictci

I3alance. heginning of ear ‘S 2439 ‘S N,376

Excess of ieemie owr eenses

Change in in\estment in capitalassets note 7

Balance, end of )ear ‘S I ,592 ‘S 60,505 ‘S 79,097 S 63,373

[TIE PRINCE EDWARD FITNESS & AQUATIC CENTER

ST:’[ENI ENT OF CASH FIOWS


2015 2014

CASH FLOWS FROM OPERATING ACTIVITIESExcess 01 revenue over expenses $ 14,623 14998

Adjustments for:Amortization 25,03 1 23554Amortization of deferred capital contributions ( I 8360) ( I 7360)

20,894 21,792Changes in non-cash working capital components:

Accounts receivable 3, 1 93 (6,397)1n\ entory I 75Prepaids -

Accounts payable and accrued liabilities 5,969I)ue to governments I ,4641)eferred membership revenue 2,92 1Deferred grant revenue (3,000)Deferred government assistance 667 (667)

Cash flows from operating activities 21,822 22,257

CASH FLOWS FROM INVESTING ACTIVITIESCapital contributions received 25,000 -

Purchase of equipment (25,024) (7,384)Cash flows from investing activities (24) (7,384)

INCREASE IN CASH 21,798 14,873

CASH, beginning of year 85,003 70.130

CASH, end of year $ 106,801 $ 85,003


NOTES TO THE FINANGAL STATEMENTS


PURPOSE OF THE ORGANIZATION

The Prince Edward Fitness & Aquatic Center was incorporated July 25. 2006 as a not-for-profit corporation under thelaws of Canada and was continued under the Canada Not-for-Profit-Corporations Act on February 2 1 . 2014. It is notsubject to income taxes. Its purpose is to provide facilities and programs to encourage fitness and healthy activities forthe residents of Prince Edward County.

2. SIGNIFICANT ACCOUNTING POLICIES

These financial statements have been prepared in accordance with Canadian accounting standards for not-for-profitorganizations and include the following significant accounting policies.

Financial instruments

The organization initially measures its financial assets and financial liabilities at fair value adjusted by transactioncosts in the case where a financial asset or liability is subsequently measured at amortized cost.

The organization subsequently measures all of its financial assets and liabilities at amortized cost,

Financial assets measured at amortized cost include cash and accounts receivable.

Financial liabilities measured at amortized cost include accounts payable and accrued liabilities.

Use of estimates

The preparation of financial statements in conformity with generally accepted accounting principles requiresmanagement to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosureof contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues andexpenses during the reporting period. Estimates and underlying assumptions are reviewed on an ongoing basis,Management makes accounting estimates when determining the collectibility of accounts receivable and the estimateduseful lives of the organizations capital and intangible assets. Actual results could differ from these estimates.

Revenue recognition

The Prince Edward Fitness & Aquatic Center follows the deferral method of accounting for grants and donationsRestricted grants and donations are recognized as revenues in the year in which the related expenses are incurredFundraising and donations are recognized when received or receivable if the amount can be reasonably estimated andcollection is reasonably assured. Unrestricted grants, if for a specific period, are recognized on a pro-rata basis overthe period. Otherwise, they are recognized on a basis similar to that for fundraising and donations.

Membership fees are recognized as revenue for the months to which they apply.

Membership insurance. program fees, day use passes and pro shop sales are recognized as revenue when service isprovided, or when goods are transferred to the customer.


NOTES TO THE FINANCIAL STATEMENTS


2. SIGNIFWANT ACCOUNTING POLICIES (continued)

Contributed materials and services

Contributed materials are recognized in the financial statements when a fair value can be reasonably estimated, when

the materials are used in the normal course of operations, and when they would otherwise have been purchased.Contributed services are not recognized due to the difficulty in valuing services.

Capital assets

Tangible assets are stated at acquisition cost Amortization is provided on a straight line basis over the following

periods:

Computer hardware -5 yearsFitness equipment, furniture and fixtures -5 yearsLeasehold improvements -5 years

In the year of acquisition, amortization is provided at onehalf of the full annual rates.

Intangible assets are stated at acquisition cost. Amortization on computer software is provided on a straight line basis

over a two year period.

3. FINANCIAL INSTRUMENTS

The organization is exposed to various risks through its financial instruments. The following analysis provides ameasure of the organization’s exposure and concentration of risks.

Credit Risk

The organization is exposed to credit risk resulting from the possibility that parties may default on their financialobligations,or if there is a concentration of transactions carried out with the same party, or if there is a concentration offinancial obligations which have similar economic characteristics that could be similarly affected by changes ineconomic conditions, such that the organization could incur a financial loss.

The organization s receivables consist of sponsorships billed corporate membership child program fees and amountsdue from the federal government for summer jobs programs. There is no significant exposure to credit risk and noallowance for impairment has been provided.

Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changesin market prices. Market risk is comprised of currency risk. interest rate risk and other price risk. Interest rate risk

refers to the risk that the fair value of future cash flows associated with the Financial instrument will fluctuate due to

changes in market interest rates whIle other price risk refers to similar fluctuations because of market price changesother than those arising from currency risk or interest rate risk. The organization does not have financial instrumentswhich would expose it to market risks.

Liquidity Risk

Liquidity risk is the risk that the organization cannot meet its debts when they become due The organization smanagement manages this risk by reviewing its expected future cash flow requirements and by holding cash reserves.

6

1 lIE PRINCE EDWARD FITNESS & AQUA tIC UENTER

3. FIN.NCI.L INSTRUMENTS (nhimied)

Changes in Risk

There have been no changes in the organizatioWs risk exposure from the prior year.

4. CAPITAL ASSE tS

Capital assets consist of the following:

2015

Accumulated

Tangible assets:Computer equipmentFitness equipmentFurniture and fixturesLeasehold improvements

Intangible assets:Computer software

21 L209

3,577$ 214,786

$ -

3,8405,907

53A92

63239

$ 6323

5. DEFERRED GOVERNMENT ASSISTANCE

Deferred government assistance represents unspent resources received in the current or prior periods that are related toa subsequent period. Amounts recorded as deferred are equal to one third of the operating grants received from theCounty of Prince Edward.

6 DEFERRED CAPITAL CONTRIBUTIONS

Deferred capital contributions reported include the unamortized portions of restricted contributions received fromgovernments with which fitness equipment or leasehold improvements were originally acquired The amountsreceived for capital improvements have been added to deferred capital contributions on the statement of financialposition and are amortized to income at the same rate as the capital assets acquired are amortized.

The changes for the year in the deferred contributions balance reported are as follows:

Beginning balanceRestricted grant contributionsAmounts amortized to revenue

$ 56,160

YEAR ENI)FI) :tTGUST 31, 2015

AmortizationCost

$ 2,61990,59912,882

jQ5Jj;9

$ 1,67068,408

8,45269A47

$ 94922,1914,430j6

147,977 63,232

3,577 -

$ 151,554 $ 63,232

Ending balance


NOTES TO THE FINANCIAL STATEMENTS


7. CHANGE IN INVESTMENT IN CAPITAL ASSETS

$__ Jñ247) S 590

8. GOVERNMENT ASSISTANCE

During the year, the organization received funding under the following government programs which was reported in

revenues:

2014

Ministry of Training, Colleges and Universities - Job Connect Program $ - $ 120

Government of Canada - Canada Summer Jobs Program 5,204 4,634

Government of Canada - META Employment Services 2,826 3,506

Ontario Trillium Foundation - 28,700

Prince Edward County - Operating Grant 59,333 58,667Prince Edward County Capital Grant 20 000

$ 67.36a $ 115.627

‘I’he portion ot the current year operating grant ot $40,00() I½oin Prince Edward ( ounty related to the current list a

year plus $19,333 deferred in the prior year has heen included in current year grant income.

9. COMMITMENTS

I he c ‘rganiiat ion mis a lease e xpirinu Atigiisi I “() ‘4 Ihr the use of ihe bin kline. I he reqtiii ed nu)iithly ti’v nent‘s625( ) iIs [IS I tint I I i\tigtisi I . 2( ) I 6 \n mci ease. at an iiiideierTuined a un out I I I he appi ied to i he 20 1 6/ 1 7 1ei—

year. I he organization is also iesonsihIe for Oie pay nient of oroperty taxes. I he lessor has allowed a credit ut $9.0( H)

(2014 $9.000) for space wHited by it during the year.

Capital assets acquired

Add (deduct):AmortizationAmortization of deferred capital contributionsCapital grants received from municipality

Capital grant received from others

S 25,024 $ 7.384

(25.031)I 8.760

( 20,000)(5.0(X))

the prince edward fitness & aquatic...

Documents