Complete Financial Statements 2018-2019
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Non-Consolidated Financial Statements of THE MANITOBA MUSEUM Year ended March 31, 2019 KPMG LLP Telephone (204) 957-1770 One Lombard Place Fax (204) 957-0808 Suite 2000 www.kpmg.ca Winnipeg MB R3B 0X3 INDEPENDENT AUDITORS’ REPORT To the Members of The Manitoba Museum Opinion We have audited the non-consolidated financial statements of The Manitoba Museum (the Entity), which comprise the non-consolidated statement of financial position as at March 31, 2019, the non- consolidated statements of operations and changes in fund balances and cash flows for the year then ended, and notes to the non-consolidated financial statements, including a summary of significant accounting policies (hereinafter referred to as the “financial statements”). In our opinion, the accompanying financial statements present fairly, in all material respects, the non- consolidated financial position of the Entity as at March 31, 2019, and its non-consolidated results of operations and its non-consolidated cash flows for the year then ended in accordance with Canadian accounting standards for not-for-profit organizations. Basis for Opinion We conducted our audit in accordance with Canadian generally accepted auditing standards. Our responsibilities under those standards are further described in the “Auditors’ Responsibilities for the Audit of the Financial Statements” section of our auditors’ report. We are independent of the Entity in accordance with the ethical requirements that are relevant to our audit of the financial statements in Canada and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Responsibilities of Management and Those Charged with Governance for the Financial Statements Management is responsible for the preparation and fair presentation of the 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. KPMG LLP is a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. KPMG Canada provides services to KPMG LLP. Document Classification: KPMG Confidential In preparing the financial statements, management is responsible for assessing the Entity’s ability to continue as a going concern, disclosing as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Entity or to cease operations, or has no realistic alternative but to do so. Those charged with governance are responsible for overseeing the Entity’s financial reporting process. Auditors’ Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Canadian generally accepted auditing standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements. As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Entity’s internal control. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Entity's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Entity to cease to continue as a going concern. Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. Communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Chartered Professional Accountants Winnipeg, Canada May 27, 2019 THE MANITOBA MUSEUM Non-Consolidated Statement of Financial Position March 31, 2019, with comparative information for 2018 Other General Properties Restricted 2019 2018 Fund Fund Funds Total Total Assets Current assets: Cash $ 67,852 $ – $ – $ 67,852 $ 415,149 Restricted cash (note 3) 500,000 – – 500,000 500,000 Marketable securities 5,375 – – 5,375 5,229 Accounts receivable: Grants 135,000 – 2,051,923 2,186,923 1,774,136 Other 80,265 – – 80,265 40,067 Due from The Manitoba Museum Foundation Incorporated – – – – 2,189 Inventories 65,312 – – 65,312 61,949 Prepaid expenses 210,494 – – 210,494 147,226 Investments (note 4) – – 2,000,000 2,000,000 1,000,000 Inter-fund loans (note 12) 130,571 (268,811) 138,240 – – 1,194,869 (268,811) 4,190,163 5,116,221 3,945,945 Properties (note 5) – 25,230,969 – 25,230,969 24,024,929 Accrued benefit asset (note 7) 4,575,866 – – 4,575,866 3,865,718 $ 5,770,735 $ 24,962,158 $ 4,190,163 $ 34,923,056 $ 31,836,592 Liabilities and Fund Balances Current liabilities: Accounts payable and accrued liabilities (note 8) $ 1,497,583 $ – $ – $ 1,497,583 $ 1,722,775 Due to The Manitoba Museum Foundation Incorporated 5,853 – – 5,853 – 1,503,436 – – 1,503,436 1,722,775 Accrued benefit liability (note 7) 670,336 – – 670,336 633,665 Fund balances: Invested in properties – 24,962,158 – 24,962,158 23,756,118 Externally restricted – – 3,690,163 3,690,163 2,219,100 Externally restricted working capital reserve (note 3) – – 500,000 500,000 500,000 Internally restricted (note 9) 1,178,625 – – 1,178,625 1,258,782 Unrestricted 2,418,338 – – 2,418,338 1,746,152 3,596,963 24,962,158 4,190,163 32,749,284 29,480,152 $ 5,770,735 $ 24,962,158 $ 4,190,163 $ 34,923,056 $ 31,836,592 See accompanying notes to non-consolidated financial statements. Governor Governor THE MANITOBA MUSEUM Non-Consolidated Statement of Operations and Changes in Fund Balances Year ended March 31, 2019, with comparative information for 2018 2019 2018 General Fund Restricted Funds Internally Special 2019 General Restricted 2018 Unrestricted Restricted Total Properties Projects Total Total Fund Funds Total Revenue: Grants (note 10) $ 3,464,800 $ – $ 3,464,800 $ – $ – $ – $ 3,464,800 $ 3,459,800 $ 20,000 $ 3,479,800 Fundraising (note 11) 477,785 – 477,785 – 53 53 477,838 480,662 – 480,662 Contributions (notes 12 and 13) – 88,130 88,130 – 3,595,210 3,595,210 3,683,340 52,590 4,662,060 4,714,650 Admission 949,844 – 949,844 – – – 949,844 1,010,853 – 1,010,853 Museum shop 217,789 – 217,789 – – – 217,789 266,113 – 266,113 Contract services 14,106 – 14,106 – – – 14,106 21,373 – 21,373 Donations-in-kind 354,752 – 354,752 98,034 – 98,034 452,786 77,605 42,403 120,008 Memberships 271,615 – 271,615 – – – 271,615 260,132 – 260,132 Other income 363,622 152,650 516,272 – – – 516,272 613,571 – 613,571 6,114,313 240,780 6,355,093 98,034 3,595,263 3,693,297 10,048,390 6,242,699 4,724,463 10,967,162 Expenses: Salaries and employee benefits 3,949,361 – 3,949,361 – 8,719 8,719 3,958,080 3,787,697 – 3,787,697 Research, collections and exhibitions 70,080 316,728 386,808 – 408,953 408,953 795,761 478,999 399,158 878,157 Education and interpretation 55,346 – 55,346 – – – 55,346 71,038 – 71,038 Marketing and public relations 245,013 59,773 304,786 – 15,370 15,370 320,156 364,425 11,725 376,150 Fundraising and development 76,332 95,593 171,925 – 3,280 3,280 175,205 164,294 1,690 165,984 Central services 367,573 126,230 493,803 – 178 178 493,981 564,185 2,733 566,918 Grant expense (note