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VPS Financial Statements, 2019

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VPS Financial Statements, 2019 Vancouver Pride Society Financial Statements For the year ended August 31, 2019 Vancouver Pride Society Financial Statements For the year ended August 31, 2019 Contents Independent Auditor's Report 2 - 4 Financial Statements Statement of Financial Position 5 Statement of Operations 6 Statement of Changes in Net Assets 7 Statement of Cash Flows 8 Notes to Financial Statements 9 - 13 Independent Auditor's Report To the Members of Vancouver Pride Society Report on the Audit of the Financial Statements Qualified Opinion We have audited the accompanying financial statements of Vancouver Pride Society (the "Society"), which comprise the Statement of Financial Position as at August 31, 2019, and the Statements of Operations, Changes in Net Assets 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 Society as at August 31, 2019, and its results of operations and its cash flows for the year then ended in accordance with Canadian accounting standards for not-for-profit organizations. Basis for Qualified Opinion In common with many charitable organizations, the Society derives revenue from donations and fundraising events the completeness of which is not susceptible to satisfactory audit verification. Accordingly, our verification of these revenues was limited to the amounts recorded in the records of the Society and we were not able to determine whether any adjustments might be necessary to donations and fundraising events revenue, excess (deficiency) of revenue over expenses, assets and net assets for the years ended August 31, 2019 and 2018, current assets as at August 31, 2019 and 2018, and net assets as at September 1 and August 31, for both the 2019 and 2018 years. Our audit opinion on the financial statements for the year ended August 31, 2018 was modified accordingly because of the possible effects of this limitation in scope. 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 this report. We are independent of the Society 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 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 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 Society’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 Society or to cease operations, or has no realistic alternative but to do so. Those charged with governance are responsible for overseeing the Society’s financial reporting process. 2 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 Society’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 Society’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 Society 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. 3 Report on Other Legal and Regulatory Requirements As required by the Societies Act of British Columbia, we report that, in our opinion, the accounting principles in Canadian accounting standards for not-for-profit organizations have been applied on a basis consistent with that of the preceding year. Chartered Professional Accountants Vancouver, British Columbia Date of Approval 4 Vancouver Pride Society Statement of Financial Position As at August 31 2019 2018 Assets Current Cash $ 428,056 $ 275,306 Term deposits (Note 2) 21,053 11,010 Accounts receivable (Note 3) 137,485 69,009 Deposits 22,685 19,243 609,279 374,568 Property and equipment (Note 4) 11,336 8,586 $ 620,615 $ 383,154 Liabilities and Net Assets Liabilities Current Accounts payable and accrued liabilities (Note 5) $ 410,147 $ 306,471 Government remittances payable 220 1,299 Deferred revenue (Note 6) 44,000 30,000 454,367 337,770 Net Assets Invested in property and equipment 11,336 8,586 Unrestricted 154,912 36,798 166,248 45,384 $ 620,615 $ 383,154 Approved on behalf of the Board: Director Director The accompanying notes are an integral part of these financial statements. 5 Vancouver Pride Society Statement of Operations For the year ended August 31a Operations Purposes 2019 2018 Revenue Contributed materials and services (Note 7) $ 845,779 $ 666,832 Partnerships 689,925 538,219 Grants (Note 8) 622,288 191,968 Event revenues 388,276 372,775 Donations 38,232 23,843 Membership dues 4,520 4,681 Interest and other 286 373 2,589,306 1,798,691 Direct Expenses Contributed services (Note 7) 825,734 650,707 Contributed materials (Note 7) 20,045 16,125 Events 763,885 456,618 Event adjustment for prior periods (Note 5) - (55,000) Payment processing fees 2,465 5,743 Permit costs 13,600 10,049 Volunteers 8,893 5,437 1,634,622 1,089,679 Operating Surplus 954,684 709,012 General and Administrative Expenses Advertising 64,951 18,880 Amortization 3,712 4,156 Bad debts - 373 Community contributions 6,092 5,651 Legal, accounting and other professional 22,610 23,853 Office and miscellaneous 53,920 30,608 Outreach 20,943 15,690 Rent 39,516 36,642 Staff and contractors, wages and benefits 622,076 391,407 833,820 527,260 Excess of revenue over expenses $ 120,864 $ 181,752 The accompanying notes are an integral part of these financial statements. 6 Vancouver Pride Society Statement of Changes in Net Assets For the year ended August 31 Invested in Capital Unrestricted Assets 2019 2018 Balance, beginning of year $ 36,798 $ 8,586 $ 45,384 $ (136,366) Excess (deficiency) of revenue over expenses 124,576 (3,712) 120,864 181,752 Purchase of property and equipment (6,462) 6,462 - - Balance, end of year $ 154,912 $ 11,336 $ 166,248 $ 45,386 The accompanying notes are an integral part of
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