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Assiniboine Park Conservancy Inc Financial Statements of ASSINIBOINE PARK CONSERVANCY INC. December 31, 2016 Deloitte LLP 360 Main Street Suite 2300 Winnipeg MB R3C 3Z3 Canada Tel: (204) 942-0051 Fax: (204) 947-9390 www.deloitte.ca INDEPENDENT AUDITOR’S REPORT To the Board Members of Assiniboine Park Conservancy Inc. We have audited the accompanying financial statements of Assiniboine Park Conservancy Inc., which comprise the balance sheet as at December 31, 2016, and the statements of operations, changes in net assets, and cash flows for the year then ended, and the notes to the financial statements. Management's Responsibility 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. Auditor’s Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements 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. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained in our audit is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements present fairly, in all material respects, the financial position of Assiniboine Park Conservancy Inc. as at December 31, 2016 and the results of its operations and its cash flows for the year then ended in accordance with Canadian accounting standards for not-for-profit organizations. Chartered Professional Accountants April 13, 2017 Winnipeg, Manitoba TABLE OF CONTENTS Page Balance Sheet 1 Statement of Operations 2 Statement of Changes in Net Assets 3 Statement of Cash Flows 4 Notes to the Financial Statements 5 – 13 ASSINIBOINE PARK CONSERVANCY INC. Balance Sheet December 31, 2016 2016 2015 ASSETS CURRENT Cash and short-term investments $ 11,640,668 $ 9,517,084 Accounts receivable 253,535 210,834 Government remittances receivable 41,396 7,898 Provincial grants and tax credits receivable - 328,081 Inventory 286,578 284,682 Prepaid expenses 343,297 327,961 12,565,474 10,676,540 CAPITAL ASSETS (Note 3) 103,505,339 103,829,336 ART COLLECTIONS (Note 4) 14,057,344 13,776,544 EMPLOYEE BENEFITS RECEIVABLE (Note 5) 420,675 417,184 $ 130,548,832 $ 128,699,604 LIABILITIES CURRENT Accounts payable and accrued liabilities $ 3,547,320 $ 2,410,347 Deferred contributions - operating (Note 6) 469,206 451,017 Notes payable (Note 7) 6,150,000 9,610,000 Current portion of long-term debt (Note 8) 323,497 382,000 10,490,023 12,853,364 DEFERRED CONTRIBUTIONS - OPERATING (Note 6) 87,490 305,428 DEFERRED CONTRIBUTIONS - CAPITAL (Note 9) 105,028,225 100,695,072 LONG-TERM DEBT (Note 8) 544,747 868,244 ACCRUED EMPLOYEE BENEFITS (Note 5) 189,508 186,017 116,339,993 114,908,125 COMMITMENTS (Note 16) NET ASSETS Restricted (Notes 2(c) and 4) 14,057,344 13,776,544 Internally Restricted (Notes 2(f) and 13) 150,000 - Unrestricted 1,495 14,935 14,208,839 13,791,479 $ 130,548,832 $ 128,699,604 APPROVED BY THE BOARD . Director . Director Page 1 ASSINIBOINE PARK CONSERVANCY INC. Statement of Operations For the Year Ended December 31, 2016 2016 2015 REVENUE City of Winnipeg (Note 10) $ 10,512,000 $ 11,376,000 Other operating grants (Note 12) 246,474 256,954 Gifts and sponsorships (Note 11 and 12) 1,002,735 827,426 Amortization of deferred contributions 6,869,160 7,648,476 Park revenues 13,154,499 12,076,478 31,784,868 32,185,334 Direct costs of park revenues (Note 10) 7,107,612 6,374,167 24,677,256 25,811,167 EXPENSE Administration (Note 10) 1,625,047 1,509,104 Interest 190,942 405,533 Amortization of capital assets 7,117,350 6,962,750 Insurance 186,392 208,268 Operations (Note 10) 2,567,052 2,589,215 Utilities (Note 10) 1,079,302 964,150 Wages, benefits and contract services (Note 10) 11,687,922 12,177,995 Donation to Winnipeg Foundation - ParkShare (Note 11) 65,889 - 24,519,896 24,817,015 EXCESS OF REVENUE OVER EXPENSE $ 157,360 $ 994,152 Page 2 ASSINIBOINE PARK CONSERVANCY INC. Statement of Changes in Net Assets Year Ended December 31, 2016 2016 2015 Internally Restricted Unrestricted Restricted Net Total Total Net Assets Net Assets Assets Balance, beginning of year $ 13,776,544 $ - $ 14,935 $ 13,791,479 $ 12,728,677 Gifts of art (Note 4) 260,000 - - 260,000 68,650 Excess of revenue over expense - - 157,360 157,360 994,152 Transfer to fiscal stabilization reserve (Note 13) 150,000 (150,000) - - Interfund transfers (Notes 4 and 15) 20,800 - (20,800) - - Balance, end of year $ 14,057,344 $ 150,000 $ 1,495 $ 14,208,839 $ 13,791,479 Page 3 ASSINIBOINE PARK CONSERVANCY INC. Statement of Cash Flows For the Year Ended December 31, 2016 2016 2015 OPERATING ACTIVITIES Excess of revenue over expense $ 157,360 $ 994,152 Items not affecting cash: Amortization of capital assets 7,117,350 6,962,750 Amortization of deferred contributions (6,869,160) (7,648,476) 405,550 308,426 Changes in non-cash operating working capital items: Accounts receivable (42,701) (3,620) Government remittances receivable (33,498) 210,761 Provincial grants and tax credits receivable 328,081 519,018 Inventory (1,896) (77,906) Prepaid expenses (15,336) 10,589 Accounts payable and accrued liabilities 1,136,973 (4,489,057) Deferred contributions - operating (199,749) 35,702 1,577,424 (3,486,087) FINANCING ACTIVITIES Deferred contributions - capital 11,202,313 16,977,918 Repayment of notes payable (3,460,000) (11,290,000) Repayment of long term debt (382,000) (382,000) Change in employee benefits receivable (3,491) 20,810 Change in accrued employee benefits 3,491 (20,810) 7,360,313 5,305,918 INVESTING ACTIVITIES Acquisition of capital assets (6,793,353) (3,376,235) Acquisition of art collections (20,800) (5,492) (6,814,153) (3,381,727) NET INCREASE (DECREASE) IN CASH AND SHORT-TERM INVESTMENTS 2,123,584 (1,561,896) CASH AND SHORT-TERM INVESTMENTS, BEGINNING OF YEAR 9,517,084 11,078,980 CASH AND SHORT-TERM INVESTMENTS, END OF YEAR $ 11,640,668 $ 9,517,084 Page 4 ASSINIBOINE PARK CONSERVANCY INC. Notes to Financial Statements December 31, 2016 1. DESCRIPTION OF ASSINIBOINE PARK CONSERVANCY INC. (“THE CONSERVANCY”) On July 16, 2006 Winnipeg City Council adopted a new governance model for Assiniboine Park (the “Park”), which called for the establishment of a not-for-profit entity to oversee the operation and development of the Park for the benefit of the community. Under the new governance model, Assiniboine Park Conservancy Inc. (the “Conservancy”) was created on April 17, 2008 with an independent Board of Directors, appointed with representation from all three levels of government and the private sector, to govern at arm’s length from the City of Winnipeg (the “City”). Through a fifty year Lease and Funding Agreement with the Conservancy which came into effect on October 1, 2010, the City retains ownership of the Park and all of its assets. Under this Agreement, the City provides an annual grant to support the operation and maintenance of the Park and is committed to a 25% share of the cost of major capital redevelopment of Park attractions and amenities. It is anticipated that the Province of Manitoba, the federal government and the private sector will also be partners in the redevelopment over the next 4 to 5 years. The Conservancy became a registered charity under the Income Tax Act on January 1, 2009 and is exempt from income taxes. 2. SIGNIFICANT ACCOUNTING POLICIES These financial statements have been prepared in accordance with Canadian accounting standards for not-for-profit organizations and include the following significant accounting policies: a) Revenue recognition The Conservancy follows the deferral method of accounting for revenues. Unrestricted revenues are recognized as revenue when received or receivable if the amount to be received can be reasonably estimated and collection is reasonably assured. Restricted revenues are recognized in accordance with the restrictions placed on them by the funder. Unrestricted gifts are recognized as revenue in the period in which the gifts are received. Gifts that are restricted by the donor are deferred, and then recognized in the year in which the related restriction is met. Non-monetary gifts are recorded at fair value in revenue when received. Pledges receivable from donors have not been recognized in these financial statements.
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