CJA Audited Financial Statement
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Financial Statements of THE CALGARY JEWISH ACADEMY And Independent Auditors’ Report thereon Year ended August 31, 2020 KPMG LLP 205 5th Avenue SW Suite 3100 Calgary AB T2P 4B9 Telephone (403) 691-8000 Fax (403) 691-8008 www.kpmg.ca INDEPENDENT AUDITORS' REPORT To the Board of Directors of Calgary Jewish Academy Opinion We have audited the accompanying financial statements of Calgary Jewish Academy, (the “Entity”) which comprise: the statement of financial position as at August 31, 2020 the statement of operations for the year then ended the statement of changes in net assets (deficit) for the year then ended the statement of cash flows for the year then ended and notes to the 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 financial position of the Entity as at August 31, 2020, and its results of operations and its cash flows 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. © 2020 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. 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 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 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's 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 Calgary, Canada November 30, 2020 THE CALGARY JEWISH ACADEMY Statement of Financial Position August 31, 2020, with comparative figures for 2019 2020 2019 Assets Current assets: Cash (note 3) $ 533,352 $ 273,152 Investments (note 5) 577,676 559,063 Due from the Friends of The Calgary Jewish Academy Trust 12,463 31,317 Accounts receivable 13,872 4,617 Government remittances recoverable 7,666 11,141 Prepaid expenses and supplies 31,745 31,628 1,176,774 910,918 Cash reserve (note 3) 205,690 194,840 Capital assets (note 6) 1,638,716 1,735,221 Long-term investments (note 5) 15,829 15,222 $ 3,037,009 $ 2,856,201 Liabilities and Net Assets (Deficit) Current liabilities: Accounts payable and accrued liabilities 131,571 57,238 Deferred revenue (notes 7 and 11) 632,481 722,382 Credit facilities (note 4) 772,357 824,447 1,536,409 1,604,067 Unamortized capital contributions (note 8) 437,911 429,430 1,971,114 2,033,497 Net assets (deficit): Invested in capital assets 1,200,805 1,305,791 Unrestricted (345,146) (679,267) Internally restricted 207,030 196,180 1,062,689 822,704 Commitments (note 9) Economic dependence (note 12) $ 3,037,009 $ 2,856,201 See accompanying notes to financial statements. THE CALGARY JEWISH ACADEMY Statement of Operations Year ended August 31, 2020, with comparative figures for 2019 2020 2019 Revenue: Parent contributions $ 3,150,329 $ 3,223,520 Subsidies (603,360) (673,025) Parent contributions, net 2,546,969 2,550,495 Alberta Education Grants (note 12) 1,937,104 1,972,676 Calgary United Jewish Appeal allocation 380,700 377,400 Out of School program fees (note 12) 65,400 125,863 Donations 61,966 61,740 The Friends of The Calgary Jewish Academy Trust (note 11) 36,750 – Fundraising (note 11) 34,499 119,946 Interest 34,380 25,651 Sundry income (note 11) 26,145 60,384 Amortization of capital contribution (note 8) 25,720 25,327 5,149,633 5,319,482 Expenses: Salaries, wages and benefits 4,041,867 4,144,418 Supplies and books 154,739 176,503 Maintenance and security 127,891 169,292 Light, heat, water 67,003 76,945 Office, postage and stationery 53,789 51,835 Professional fees 51,789 53,486 COVID-19 expenses 44,715 – Insurance 42,839 46,856 Out of School program 38,094 56,964 Interest and bank charges 35,891 44,445 Recruitment, advertising 32,257 38,240 Professional development 22,689 28,771 Telephone 17,097 16,671 Student activities 15,264 63,210 Goods and services tax 8,182 10,890 Fundraising expenses 5,739 6,355 Graduation 4,169 9,569 Licenses and taxes 2,460 2,069 Library 698 2,084 4,767,172 4,998,603 Amortization of capital assets 142,476 138,807 Excess of revenues over expenses $ 239,985 $ 182,072 See accompanying notes to financial statements. THE CALGARY JEWISH ACADEMY Statement of Changes in Net Assets (Deficit) Year ended August 31, 2020, with comparative figures for 2019 Internally Invested Unrestricted restricted in capital 2020 Fund fund assets Total Balance, beginning of year $ (679,267) $ 196,180 $ 1,305,791 $ 822,704 Excess (deficiency) of revenues over expenses 356,741 – (116,756) 239,985 Transfer to internally restricted fund (10,850) 10,850 – – Transfer to unrestricted fund – – – – Receipt of capital contributions 34,201 – (34,201) – Purchase of capital assets (45,971) – 45,971 – $ (345,146) $ 207,030 $ 1,200,805 $ 1,062,689 Internally Invested Unrestricted restricted in capital 2019 Fund fund assets Total Balance, beginning of year $ (935,322) $ 185,280 $ 1,390,674 $ 640,632 Excess (deficiency) of revenues over expenses 295,552 – (113,480) 182,072