trenton memorial hospital foundation fs 2014

WILKINSON^^Integrity, Knowledge, Solutions

TRENTON MEMORIAL HOSPITAL FOUNDATION

FINANCIAL STATEMENTS

AS AT MARCH 31, 2014

Wilkinson &, Company LLP - Chartered Accountants

Telephone 613-392-2592 • Toll Free 1-888-713-7283 • Fax 613-392-8512P.O. Box 400, 71 Dundas Street West, Trenton, Ontario K8V 5R6 • www.wilkinson.net


TABLE OF CONTENTS

AS AT MARCH 31,2014

Page

INDEPENDENT AUDITORS' REPORT 1_2

FINANCIAL STATEMENTS

Statement of Financial Position 3

Statement of Operations and Changes in Fund Balances 4

Statement of CashFlows 5

Notes to Financial Statements 6-12

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WILKINSON^^Integrity, Knowledge, Solutions

INDEPENDENT AUDITORS' REPORT

To the Board of Directors

Trenton Memorial Hospital Foundation

Report on the Financial Statements

We have audited the accompanying financial statements of Trenton Memorial Hospital Foundation,which comprise the statement of financial position as at March 31, 2014 and the statements of operationsand changes in fund balances and cash flows for the year then ended, and a summary of significantaccounting 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 inaccordance with Canadian accounting standards for not-for-profit organizations and for such internalcontrol as management determines is necessary to enable the preparation of financial statements that arefree 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. Weconducted our audit in accordance with Canadian generally accepted auditing standards. Those standardsrequire that we comply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures inthe financial statements. The procedures selected depend on the auditor's judgment, including theassessment of the risks of material misstatement of the financial statements, whether due to fraud orerror. In making those risk assessments, the auditor considers internal control relevant to the entity'spreparation and fair presentation of the financial statements in order to design audit procedures that areappropriate in the circumstances, but not for the purpose ofexpressing an opinion on the effectiveness ofthe entity's internal control. An audit also includes evaluating the appropriateness ofaccounting policiesused and the reasonableness of accounting estimates made by management, as well as evaluating theoverall presentation of the financial statements.

Basis for Qualified Opinion

In common with many charitable organizations, Trenton Memorial Hospital Foundation derives revenuefrom donations, the completeness of which is not susceptible to satisfactory audit verification.Accordingly, our verification of these donations was limited to the amounts recorded in the records of theTrenton Memorial Hospital Foundation and we were not able to determine whether any adjustmentsmight be necessary to donations revenue, excess of revenue over expenses, assets and fund balances.

Wilkinson & Company LLP - Chartered Accountants

Telephone 613-392-2592 • Toll Free 1-888-713-7283 • Fax 613-392-8512P.O. Box 400, 71 Dundas Street West, Trenton, Ontario K8V 5R6 • www.wilkinson.net

Qualified Opinion

In our opinion, except for the possible effects ofthe matter described in the Basis for Qualified Opinionparagraph, these financial statements present fairly, in all material respects, the financial position ofTrenton Memorial Hospital Foundation as at March 31, 2014, and the results of its operations and cashflows for the year ended in accordance with Canadian generally accepted accounting principles.

M^ife^^ wffof UPTRENTON, Canada Chartered AccountantsMay 28, 2014 Licensed Public Accountants

WILKINSON^^

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CURRENT ASSETSCash

Accounts receivable

PrepaidAmounts due from internal funds


STATEMENT OF FINANCIAL POSITION AS AT MARCH 31,2014

CommunityHealthcare Fund

2014 2013

$ (OOP's) $

120 72

70

125 142

Restricted

Funds

2014 2013

$ (OOP's) $

248

16

1

14

279

130

15

3

336

484

Endowment

Funds

2014 2013

$ (OOP's) $

12

12

TANGIBLE CAPITAL ASSETS - Note 4 100 107

Total

2014 2013

$ (PPP's)

380

16

1

19

416

100

205

15

3

406

629

107

LONG-TERM ASSETSInvestments 3,094 3,082 5,508 4,905 2,701 3,096 11,303 11,083

CURRENT LIABILITIES

Accounts payable and accrued liabilitiesAmounts due to Quinte Healthcare Corporation - Notes 5 &1Amounts due to Kay Stafford Funding Applicants - Note 8Deferred revenue

Amounts due to internal funds

FUND BALANCES

Externally restricted - Notes 6&7Internally restricted - Note 6Unrestricted

APPROVED ON BEHALF OF THE BOARD

Director

Director

3,319 3,331 5,787 5,389

19 10 - -

18 117 411 769

- - 3

- 2 2

37 127

3,000 3,000282 204

3,282 3,204

3,319 3,331

413 774

5,374 4,615

5,374 4,615

5,787 5,389

2,713 3,099

19 406

19 406

2,694 2,693

11,819 11,819

19 10

429 886

- 3

2 2

19 406

469 1,307

8,068 7,3083,000 3,000

282 204

2,694 2,693 11,350 10,512

2,713 3,099 11,819 11,819

The accompanying notes form an integral part of these financial statements

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*

REVENUE

Investment income - realized

Investment income - unrealized

Special events fundraisingDonations

Parking

EXPENSES

Accounting, audit and legalFundraising expensesInvestment management feesOffice

Salaries and employee benefitsSpecial events fundraising

EXCESS OF REVENUE OVER EXPENSESBEFORE GRANTS

GRANTS - Note 8

Quinte Healthcare CorporationOthers

EXCESS OF REVENUE OVER EXPENSES

& GRANTS FOR THE YEAR

TRENTON MEMORUL HOSPITAL FOUNDATION

STATEMENT OF OPERATIONS AND CHANGES IN FUND BALANCES

FOR THE YEAR ENDED MARCH 31, 2014


2014 2013

$ (OOP's) $

107

178

27

312

161

47

214

Restricted

Funds

2014 2013

$ (OOP's) $

241

373

441

524

1,579

228

194

434

423

1,279

42 20 - -

50 68 12 9

15 16 19 18

- 9 7

218 198

325 302

m (88)

(99) 103

jssl 103

86 11911

80

120

1,459

656

52

708

751

79

113

1,166

743

47

790

376

Endowment

Funds2014 2013

$ (OOP's) $

8

(6)

12

12

11

Total

2014 2013

S (OOP's) $

356 396

545 246

441 434

551 429

1,893 1,505

42 20

62 77

34 34

9 7

218 198

80 79

445

1,448

557

53

610

838

415

1,090

846

48

894

196

FUND BALANCES - BEGINNING OF YEAR

Inter-fund transfers - Note 9

3,204

(8)

3,395 4,615

8

4,239 2,693 2,682 10,512 10,316

FUND BALANCE - END OF YEAR 3,282 3,204 5374 4,615 2,694 2,693 11,350 10,512


23zon

o

I


STATEMENT OF CASH FLOWS



2013

$

2012

$

(13) (88)

7 6

(90) 102

65 (18)

Restricted

Funds

OPERATING ACTIVITIES

Excess of revenue over expensesAdjustment for:Amortization of capital assetsDecrease (increase) in accounts receivableIncrease (decrease) in due to Quinte Healthcare

CorporationIncrease (decrease) in interfimd payables and

receivables

Decrease (increase) in prepaidIncrease (decrease) in deferred revenueDecrease (increase) in investments

CASH PROVIDED FROM OPERATING

ACTIVITIES

(12)

J43j_

91

93

2013

$

1,459

(1)

(361)

322

2

(603)

818

INVESTMENT AND FINANCING

ACTIVITIES

Purchase ofassets . (8) .

Transfers to Quinte Healthcare Corporation 99 (103) (708)Interfund transfers (8) - 8

2012

$

1,166

7

263

(70)

(1)2

(573)

794

(790)

Endowment

Funds

2013

$

(387)

395

10

(1)

2012

$

12

88

(100)

(1)

Total

2013

$

1,448

7

(1)

(451)

2

(220)

785

(610)

2012

$

1,090

6

7

365

(I)2

(582)

887

(8)(894)

CASH USED IN INVESTING AND

FINANCING ACTIVITIES 91 (111) (700) (790) (1) (1) (610) (902)

NET INCREASE (DECREASE) IN CASHCASH - BEGINNING OF YEAR

48

72

(18)90

118

130

4

126

9

3(1)4

175

205

(15)220

CASH - END OF YEAR 120 72 248 130 12 3 380 205

REPRESENTED BY:

Cash 120 72 248 130 12 3 380 205



NOTES TO FINANCIAL STATEMENTS

FOR THE YEAR ENDED MARCH 31,2014

1. PURPOSE OF THE ORGANIZATION

The Trenton Memorial Hospital Foundation (The "Foundation") is a public Foundation incorporatedfor the purpose of raising and managing funds that will assist Quinte Healthcare Trenton Memorial(the "Hospital") and its healthcare professionals in providing quality healthcare services to the areacommunities. In addition, the Foundation raises and manages funds that support a variety of otherhealthcare services in its catchment area. The Foundation raises these funds through comprehensivefundraising programs and the management of its investment portfolio.

The Foundation's investment policies and decisions are made by an Investment Finance Committeeof the Board of Directors (the "Board") with the support of a professional fund manager. Inaccordance with these policies, investments in shares in publicly traded companies are restricted towell capitalized corporations listed on major North American stock exchanges, guaranteedinvestment certificates and high-grade corporate andgovernment bonds.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The financial statements of the Foundation have been prepared in accordance with Canadianaccounting standards for not-for-profit organizations. The following summary of significantaccounting policies is set forth to facilitate the understanding of these financial statements:

Fund Accounting

In order to ensure observance of the limitations and restrictions placed on the use of resourcesavailable to the Foundation, the accounts of the Foundation are maintained in accordance with theprinciples of fund accounting. Accordingly, resources are classified for accounting and reportingpurposes into funds. These funds are held in accordance with the objectives specified by the donorsor in accordance with directives issued by the Board. Transfers between the funds are made when itis considered appropriate and authorized by the Board. To meet these objectives of financialreporting and stewardship over assets, certain inter-fund transfers are necessary to ensure theappropriate allocation of assets and liabilities to the respective funds. These inter-fund transfers arereported on the Statement of Operations and Changes inFund Balances.

The Foundation follows the restricted fund method ofaccounting for contributions. The Foundationensures, as part of its fiduciary responsibilities, that all funds received with a restricted purpose areexpended for the purpose for which theywere provided.

WILKINSON^^

TRENTON MEMORIAL HOSPITAL FOUNDATIONNOTES TO FINANCIAL STATEMENTS


2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - (Cont'd)

For financial reporting purposes, the accounts have been classified into the following funds:

(a) Community Health Care Fund

The Community Health Care Fund accounts for the Foundation's general fund-raising andgranting activities. This fund reports unrestricted resources available for immediate purposesand internally restricted resources available to fund continued operations.

(b) Restricted Funds

The Restricted Funds include those funds where resources are to be used for an identifiedpurpose as specified by the donor, as stipulated by the fund-raising appeal, or as determined bythe Board.

(c) Endowment Funds

The Endowment Funds consist ofexternally restricted contributions received by the Foundationwhere the endowment principal is required to be maintained intact. The investment incomegenerated from the assets held for endowment purposes must be used as directed by the donor.

(d) Investments

Investments are classified as held for trading and are measured at fair value. Fair values arebased on the listed market values. Gains and losses arising from changes in fair value areincluded in the Statement ofOperations and Changes for the period.

(e) Translation of Foreign Currencies

The cost ofinvestments, revenues and expenses denominated in foreign currencies are translatedinto Canadian dollars at the transaction date.

(f) Revenue Recognition

Unrestricted contributions are recognized as revenue in the Community Health Care Fund in theyear received. Donor restricted contributions for specific purposes are recognized as revenue inthe Restricted Fund unless the principal is to be maintained permanently, in which case thecontributions are recognized as revenue in the Endowment Fund.

Investment income (loss) on Endowment Fund resources that must be spent on donor restrictedactivities is recognized in the Restricted Fund. Investment income (loss) subject to donorrestrictions stipulating that it be added to the principal amount ofthe endowment is recognized inthe Endowment Fund. Unrestricted investment income is recognized in the Community HealthCare Fund.

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2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - (Cont'd)

(g) Grant Recognition

Grants and commitments are recognized at the date of Board approval.

(h) Tangible Capital Assets

The Foundation's capital assets are carried atcost. Amortization ofcapital assets, which is basedonestimated useful life, is calculated using the rates and bases applied as follows:

Asset Basis Rate

Artwork Notapplicable NilDonor Wall Straight-line 10 years

3. CAPITAL REQUIREMENTS

The Foundation's objectives with respect to capital management are to maintain a minimum capitalbase that allows the Foundation to continue with and execute its overall purpose as outlined in thefund balances accounting policy in Note 2. The Foundation's Board ofDirectors perform periodicreviews of the Foundation's capital needs to ensure they remain consistent with the risk tolerancethat is acceptable to the Foundation.

4. TANGIBLE CAPITAL ASSETS

Donor Wall

Artwork

Computer

2014

Accumulated

Cost amortization

$ $

2013

Accumulated

Cost amortization

$ $

000's) (000's) (000's) (000's)

68

48

1

16

1

68

48

1

9

1

117 17 117 10

Cost less accumulated amortization $ 100 $ 107

The accompanying notes form an integral part of these financial statemtyv1! LKINSON

TRENTON MEMORIAL HOSPITAL FOUNDATIONNOTES TO FINANCIAL STATEMENTS


5. COMMITMENTS

The Board of Directors have committed the Foundation to financing the following programs onbehalf of Quinte Healthcare - Trenton Memorial:

PriorityMedical Equipment- 2012/2013Non-medical Equipment- 2013/2014PriorityMedical Equipment - 2013/2014Medical Day Clinic - 2013/2014

6. RESTRICTED FUNDS

The Restricted Funds consist of the following:

Donor-Restricted Balances

Restricted for purchase of priority capital equipment forthe Trenton Hospital

Restricted Commitment fund

Internally Imposed RestrictionsRestricted by the Board to fund continued operations

ApprovedCommitment

$

908,631160,500213,868116,444

2014

$

(000's)

4,963411

5,374

3,000

8,374

Transfers

To Date

$

736,999124,000127,465

2013

$

(000's)

4,624

(9)

4,615

3,000

7,615

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7. ENDOWMENT FUNDS

The Endowment Fund consists of externally restricted contributions received by the Foundationwhere the endowment principal is required to be maintained intact. The Endowment Fund alsoincludes internal resources transferred by the Board of Directors (the "Board) to the EndowmentFund, with the intention that the principal be maintained intact, but may be drawn down to fundoperating activities and grants as required.

2014 2013

$ $

(000's) (000's)

SO Graham - The Board has been authorized by the donorto determine where the investment income each year isbestdonated 10 10

Joan Wheatly Nursing Education Fund - The Foundationprovides the investment income amount to the QHCEducation Committee who evaluates the applicationsreceived from all qualifyingnursingstaff 134 133

Pearl and Gordon Woodcox Diabetic Fund - TheFoundation provides the investment income amount tothe QHC Education Committee who evaluates theapplications received from all qualifying staff 89 89

Roli and Audrey Terrill Equipment Fund - TheFoundation is responsible for allocating the investmentincome to annual equipment needs at QHC - TrentonMemorial 439 439

Doris and Wes Rees Education Fund - Nurses andPhysicians submit applications annually to theFoundation forcontinuing education needs 250 250

George Edward Meyers Trust Fund - The Foundation isresponsible for allocating the investment income toannual needs at QHC- Trenton Memorial 561 561

Kay Stafford Fund - Education of the Trenton Hospitalstaffand Trenton Hospital and community programs 1,161 LI61

2,694 2,693

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8. RELATED PARTY TRANSACTIONS

Related parties include the Tri-County Healthcare Foundation, Quinte Healthcare Corporation andother Quinte area healthcare provider.

Transactions with these related parties have been recorded at the exchange amount and include:

i) During the year, the Foundation transferred $113,891 to Quinte Health Care from the PriorityMedical Equipment Fund as part of the 2011/2012 fiscal commitment. An adjustment of$15,202 was made to clear the 2011/2012 commitment.

During the year, the Foundation committed an additional $173,631 for the purchase of 2013priority medical equipment and transferred $337,296 and $17,052 to Quinte Health Care from thePriority Medical Equipment Fund as part of the 2012/2013 priority medical and non medicalequipment commitment. An adjustment of $103,897 was made to adjust the 2012/2013commitment.

During the year, the Foundation committed $213,868 and $160,500 for the purchase of2013/2014 priority medical and non medical equipment of which $207,562 was transferred toQuinte Health Care from the Priority Capital Fund. An adjustment of $43,903 was made toreduce the 2013/2014 commitment.

ii) During the year, the Foundation transferred $35,000 towards the Cardiology renovation. Anadditional $3,465 was transferred.

iii) During the year, the Foundation committed $116,445 towards Medical Day Clinic equipment.As of March 31, 2014, no funds have been transferred to Quinte Health Care from the PriorityCapital Fund.

iv) During the year, the Foundation transferred $147,859 to Quinte Health Care from the PriorityCapital Fund as part of the 2011/2012 Ambulatory Clinic commitment. An additional $20,423was transferred.

v) During the year, the Foundation committed $130,605 towards DVSARP Renovations of which$130,605 was transferred toQuinte Health Care from the Priority Capital Fund.

vi) During the year, the Foundation committed $46,010 from the Kay Stafford Fund, of which$45,745 was transferred. In additional to the current year commitment, an additional $6,961 wastransferred and$1,132 was removed from thecurrent and prior years commitment balance.

9. INTERFUND TRANSFERS

The Foundation transferred $7,839 from the Commitment fund to the Community Healthcare Fundduring the year. This has been shown as an inter-fund transfer.

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10. FINANCIAL INSTRUMENTS

The fair values of the Organization's cash, accounts payable, accounts receivable and commitmentsapproximate their carrying amounts due to the immediate and short-term nature of these financialinstruments. It is not practicable to determine the fair value of the amounts due to related parties dueto the non-arm's length nature of the relationship and that there are no repayment terms. The fairvalue of their investments presented as long-term assets is market value.

The Organization has a comprehensive risk management framework to monitor, evaluate and managethe principal risks assumed with financial instruments. It is management's opinion that theorganization is notexposed to significant credit risk, liquidity risk or foreign exchange rates risk fromthese financial instruments.

Market Risk

Market risk is the risk that the fair value or future cash flows to a financial instrument will fluctuatebecause ofchanges in market prices. Market risk comprises three types of risk: currency rate, interestrate risk and price risk. The Foundation is mainly exposed to interest rate risk and price risk on itsinvestment portfolio.

Price Risk

Price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuatebecause ofchanges in market prices (other than those arising from interest rate risk orcurrency risk),whether those changes are caused by factors specific to the individual financial instrument or it'sissuer, or factors affecting all similar financial traded in the market. The Foundation is exposed toprice risk through its investment portfolio but has taken steps to mitigate this risk through theadoption of its investment policy as described inNote 2 (d).

Interest Rate Risk

Interest rate risk is the potential for financial loss caused by fluctuations in fair value or future cashflows offinancial instruments because ofchanges in market interest rates. The Foundation is exposedto interest rate risk on its investment portfolio, however management has mitigated this risk byadopting the investment policy described inNote 2 (d) in these financial statements.

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trenton memorial hospital foundation fs 2014

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