Notice to Reader
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Notice to Reader The following schedules, provided to Elections Newfoundland and Labrador by the political parties and/or candidates, are enclosed ‘As Filed’ and have not yet been reviewed for accuracy or completeness. Once reviewed, any amendments will be reflected in Elections Newfoundland and Labrador’s official financial report. LIBERAL PARTY OF NEWFOUNDLAND AND LABRADOR Financial Statements Year Ended December 31, 2019 LIBERAL PARTY OF NEWFOUNDLAND AND LABRADOR Index to Financial Statements Year Ended December 31, 2019 Page INDEPENDENT AUDITOR'S REPORT 1 - 2 FINANCIAL STATEMENTS Statement of Financial Position 3 Statement of Changes in Net Assets 4 Statement of Revenues and Expenditures 5 Statement of Cash Flows 6 Notes to Financial Statements 7 - 10 Statement of General Election Revenues and Expenditures (Schedule 1) 11 Statement of Topsail/Paradise By-Election Expenditures (Schedule 2) 12 Statement of Windsor-Lake By-Election Revenues and Expenditures (Schedule 3) 13 INDEPENDENT AUDITOR'S REPORT To the Members of Liberal Party of Newfoundland and Labrador Qualified Opinion We have audited the financial statements of Liberal Party of Newfoundland and Labrador (the Party), which comprise the statement of financial position as at December 31, 2019, and the statements of changes in net assets, revenues and expenditures and cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies. In our opinion, except for the possible effects of the matter described in the Basis for Qualified Opinion section of our report, the accompanying financial statements present fairly, in all material respects, the financial position of the Party as at December 31, 2019, and the results of its operations and cash flows for the year then ended in accordance with Canadian Accounting Standards for Not-for-profit Organizations (ASNPO) Basis for Qualified Opinion In common with many charitable and not-for-profit organizations, the Party derives revenue from donations and fundraising activities the completeness of which is not susceptible of satisfactory audit verification. Accordingly, our verification of these revenues was limited to the amounts recorded in the records of the Party and we were not able to determine whether any adjustments might be necessary to revenues, excess of revenues over expenses, current assets and net assets. We conducted our audit in accordance with Canadian generally accepted auditing standards. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Party in accordance with 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 qualified audit 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 ASNPO, 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. In preparing the financial statements, management is responsible for assessing the Party'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 Party or to cease operations, or has no realistic alternative but to do so. Those charged with governance are responsible for overseeing the Party's financial reporting process. (continues) Harris Ryan Professional Corporation Suite 202 120 Stavanger Drive, St. John’s, NL Canada A1A 5E8 Phone: (709) 726-8324 Fax: (709) 726-4525 Independent Auditor's Report to the Members of Liberal Party of Newfoundland and Labrador (continued) Auditor's 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 auditor’s 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 these 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 Party’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 Party’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s 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 auditor’s report. However, future events or conditions may cause the Party 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. We 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. St. John's, Newfoundland and Labrador March 31, 2020 CHARTERED PROFESSIONAL ACCOUNTANTS LIBERAL PARTY OF NEWFOUNDLAND AND LABRADOR Statement of Financial Position December 31, 2019 2019 2018 ASSETS CURRENT Cash $ 2,148 $ 172,543 Accounts receivable 147,375 58,738 Prepaid expenses 438 6,641 Cash held in trust 3,819 193,019 Due from District Associations 41,184 - $ 194,964 $ 430,941 LIABILITIES AND NET ASSETS CURRENT Operating loan (Note 4) $ 280,000 $ - Accounts payable 99,341 35,184 Employee deductions payable 2,181 - Held in trust (Note 5) - 193,089 381,522 228,273 NET ASSETS General fund (186,558) 197,234 Election readiness - 5,434 (186,558) 202,668 $ 194,964 $ 430,941 LEASE COMMITMENTS (Note 7) ON BEHALF OF THE BOARD _____________________________ Director _____________________________ Director See notes to financial statements 3 LIBERAL PARTY OF NEWFOUNDLAND AND LABRADOR Statement of Changes in Net Assets Year Ended December 31, 2019 General Election Fund readiness 2019 2018 NET ASSETS - BEGINNING OF YEAR $ 197,234 $ 5,434 $ 202,668 $ 2,581 DEFICIENCY OF REVENUES OVER EXPENSES (380,054) - (380,054) 200,087 TRANSFER TO ELECTION READINESS (3,738) 3,738 - - TRANSFER TO GENERAL FUND - PROVINCIAL GENERAL ELECTION - (9,172) (9,172) - NET ASSETS - END OF YEAR $ (186,558) $ - $ (186,558) $ 202,668 See notes to financial statements 4 LIBERAL PARTY OF NEWFOUNDLAND AND LABRADOR Statement of Revenues and Expenditures Year Ended December 31, 2019 2019 2018 REVENUES Fundraising $ 1,075,744 $ 867,406 Rebates - 13,427 Statement of General Election Revenues and Expenditures (Schedule 1) 258,075 - Nomination fees 4,200 750 Interest 522 - Annual general meeting - 78,620 Transfer from campaigns 1,162 21,863 Other income - 370 Statement of Topsail/Paradise By-Election Expenditures (Schedule 2) 11,315 - Statement of Windsor-Lake By-Election Revenues and Expenditures (Schedule 3) - 25,274 1,351,018 1,007,710 EXPENSES Statement of General Election Revenues and Expenditures (Schedule 1) 979,905 5,103 District Association Transfers (Note 5) 193,998 197,002 Research and polling 78,823 - Fundraising 169,599 192,625 Salaries and wages 132,017 128,123 Rental 33,994 33,994 Interest and bank charges 27,054 14,857 Technology 21,768 23,526 Office 12,855 16,689 Professional fees 17,308 13,283 Bad debts 10,000 1,275 Telephone and internet 7,737