Brandon University Foundation
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BRANDON UNIVERSITY FOUNDATION FINANCIAL STATEMENTS For the year ended December 31, 2018 Tel: 204 727 0671 BDO Canada LLP Fax: 204 726 4580 148 – 10th Street Toll Free: 800 775 3328 Brandon MB R7A 4E6 Canada www.bdo.ca Independent Auditor's Report To the Directors of Brandon University Foundation Opinion We have audited the accompanying financial statements of Brandon University Foundation, which comprise the statement of financial position as at December 31, 2018 and the statement of operations, statement of changes in net assets and statement of changes in financial position for the year then ended and a summary of significant accounting policies and other explanatory information. In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of Brandon University Foundation as at December 31, 2018, and its financial performance and its 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 Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of Brandon University Foundation 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. Other Information Management is responsible for the other information. The other information comprises: The information included in the Annual Financial Report, and The Detailed Schedule of Endowment Principle through Detailed Schedule of Endowment Trust Funds included in the financial statements. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information identified above and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work we have performed on this other information, we conclude that there is a material misstatement of this other information, we are required to report that fact in this auditor’s report. We have nothing to report in this regard. 1 BDO Canada LLP, a Canadian limited liability partnership, is a member of BDO international Limited, a UK Company limited by guarantee, and forms part of the international BDO network of independent member firms. Responsibilities of Management and Those Charged with Governance for the Financial Statements Management is responsible for the preparation and fair presentation of these 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. In preparing the financial statements, management is responsible for assessing Brandon University Foundation’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 Brandon University Foundation or to cease operations, or has no realistic alternative but to do so. Those charged with governance are responsible for overseeing Brandon University Foundation’s financial reporting process. 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 Brandon University Foundation’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 Brandon University Foundation’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 Brandon University 2 Foundation 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. Chartered Professional Accountants Brandon, Manitoba May 15, 2019 3 BRANDON UNIVERSITY FOUNDATION Statement of Financial Position December 31, 2018 December 31, 2017 ASSETS Current Assets Cash $ 204,265 $ 143,217 Accounts receivable 130,820 124,959 Other assets (note 7) 71,338 71,330 406,423 339,506 Investments (note 5) 66,221,441 71,894,154 $ 66,627,864 $ 72,233,660 LIABILITIES AND NET ASSETS Current Liabilities Accounts payable $ 1,426,408 $ 1,504,690 Deferred Contributions (note 8) 6,962,939 6,424,330 8,389,347 7,929,020 Net Assets Unallocated gains pool 10,160,334 17,642,586 Unrestricted net assets 139,510 140,100 General Endowment Trust Reserve (note 4) 4,005,807 3,879,323 Endowment Funds (note 3) 43,932,866 42,642,631 58,238,517 64,304,640 $ 66,627,864 $ 72,233,660 Approved on behalf of the Board Original signed by Dr. William Myers, President Original signed by Mrs. Tilda Fortier, Treasurer The accompanying notes are an integral part of these financial statements. 4 BRANDON UNIVERSITY FOUNDATION Statement of Changes in Net Assets For the Year Ended December 31, 2018 General Endowment Unallocated Unrestricted Trust Endowment Gains Pool Net Assets Reserve Funds 2018 2017 BALANCE, opening $ 17,642,586 $ 140,100 $ 3,879,323 $ 42,642,631 $ 64,304,640 $ 59,376,801 Net income/(loss) for the year (7,482,252) (590) (7,482,842) 3,345,600 Transfers from deferred contributions 373,313 373,313 334,649 Capitalized investment earnings 126,484 454,821 581,305 844,204 Direct increases to net assets endowment contributions 462,101 462,101 403,386 BALANCE, closing $ 10,160,334 $ 139,510 $ 4,005,807 $ 43,932,866 $ 58,238,517 $ 64,304,640 The accompanying notes are an integral part of these financial statements. 5 BRANDON UNIVERSITY FOUNDATION Statement of Operations For the Year Ended December 31, 2018 2018 2017 REVENUE Realized income $ 2,063,404 $ 2,062,136 Unrealized gain/(loss) (7,482,252) 3,358,471 Total investment income/(loss) (note 9) (5,418,848) 5,420,607 Donations 774,134 571,578 Gifts in kind 21,064 28,234 Increase in value of life insurance policies 2,414 2,614 Other contributions 278 12,015 (4,620,958) 6,035,048 EXPENSE Grants to Brandon University 1,155,825 1,184,755 Scholarships and bursaries 1,651,412 1,447,288 Other grants 21,959 26,361 Annual report 4,346 3,950 Awards & gifts 108 Life insurance premiums 6,478 6,478 Professional fees 6,085 6,823 Supplies and other expenses 14,177 12,588 Travel 1,494 1,205 2,861,884 2,689,448 NET INCOME/(LOSS) FOR THE YEAR $ (7,482,842) $ 3,345,600 The accompanying notes are an integral part