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Province of Ontario Council for the Arts Audited Financial Statements

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Province of Ontario Council for the Arts Audited Financial Statements Province of Ontario Council for the Arts Audited Financial Statements Province of Ontario Council for the Arts Management’s Responsibility for Financial Information The accompanying financial statements of the Province of Ontario Council for the Arts (the OAC) are the responsibility of management and have been prepared in accordance with Canadian public sector accounting standards. Management maintains a system of internal controls designed to provide reasonable assurance that financial information is accurate and that assets are protected. The Board of Directors ensures that management fulfils its responsibilities for financial reporting and internal control. The Finance and Audit Committee and the Board of Directors meet regularly to oversee the financial activities of the OAC, and annually to review the audited financial statements and the external auditor’s report thereon. The financial statements have been audited by the Office of the Auditor General of Ontario, whose responsibility is to express an opinion on the financial statements. The Auditor’s Report that appears as part of the financial statements outlines the scope of the Auditor’s examination and opinion. On behalf of management: Peter Caldwell Director & CEO Jerry Zhang Director of Finance and Administration June 12, 2019 Office of the Auditor General of Ontario Bureau de la verificatrice generale de !'Ontario Independent Auditor's Report To the Province of Ontario Council for the Arts and to the Minister of Tourism, Culture and Sport Opinion I have audited the financial statements of the Province of Ontario Council for the A1ts (operating as Ontario Arts Council), which comprise the statement of financial position as at March 31, 20 I 9 and the statements of operations and changes in fund balances, remeasurement gains and losses and cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies. In my opinion, the accompanying financial statements present fairly, in all material respects, the financialposition of the Ontario A1ts Council as at March 31, 2019 and the results of its operations, its remeasurement gains and losses and its cash flows for the year then ended in accordance with Canadian public sector accounting standards. Basis for Opinion I conducted my audit in accordance with Canadian generally accepted auditing standards. My responsibilities under those standards are fu1ther described in the Auditor's Responsibilities for the Audit of the Financial Statements section of my report. I am independent of the Ontario A1ts Council in accordance with the ethical requirements that are relevant to my audit of the financial statements in Canada, and I have fulfilled my other ethical responsibilities in accordance with these requirements. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my 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 public sector accounting standards, 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 f raud or error. 20 Dund.is Street West Su11e 1530 ln preparing the financial statements, management is responsible for assessing the Ontario Arts Toron10. Ont.mo Council's ability to continue as a going concern, disclosing, as applicable, matters relating to MSG 2C2 416-327-2381 going concern and using the going concern basis of accounting unless the Ontario Arts Council ta� �16-327-9862 either intends to cease operations, or has no realistic alternative but to do so. Uy 416-327-6123 Those charged with governance are responsible for overseeing the Ontario Arts Council's 20 rue Dundas ouesl suile 1530 financial reporting process. Toronto (Ontario) MSG 2C2 Auditor's Responsibilities for the Audit of the Financial Statements �16-327-2381 tetecop1our 416-327-9862 ats 416•327-6123 My 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 1·,1·11•1.audltor.on.ca report that includes my opinion. Reasonable assurance is a high level of assurance, but is not a Office of the Auditor General of Ontario Bureau de la verificatrice ge ne rale de !'Ontario guarantee that an audit conducted in accordance with Canadian generall y accepted auditing standards will always detect a material misstatemenr when it exists. Misstatements can arise rrom 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, I exercise professional judgment and maintain professional skepticism throughout the audit. I also: Identify and assess the risks of material misstatement of the fi nancial 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 my opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may in volve 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 Ontario Arts Council'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 Ontario Arts Council's ability to continue as a going concern. If I conclude that a material uncertainty exists, I am required to draw attention in my auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify my opinion. My conclusions are based on the audit evidence obtained up to the date of my auditor's report. However, future events or conditions may cause the Ontari o Arts Council 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. Obtain sufficient appropriate audit evidence regarding the financial in formation of the entities or business activities within the Group to express an opinion on the financial statements. I am 20 Dundas Street West responsible for the direction, supervision and performance of the group audit. I remai n solely Suite 1530 responsible for our audit opinion. Toronto. Ontario MSG 2C2 416-327-2381 I communicate with those charged with governance regarding, among other matters, the planned lax 416-327-9862 scope and timing of the audit and significant audit findings, including any significant deficiencies tty 416-327-6123 in internal control that I identify during my audit. 20, rue Dundas ouest suite 1530 Toronto (Ontario) MSG 2C2 -116-327-2381 Toronto, Ontario Susan Klein, CPA, CA, LPA te1ecop1e ur 416-327-9862 June 12, 2019 Assistant Auditor General ats 416-327-6123 1'1\'l\'1.aud1tor on.ca Financial Statements of PROVINCE OF ONTARIO COUNCIL FOR THE ARTS (OPERATING AS ONTARIO ARTS COUNCIL) And Independent Auditors' Report thereon Year ended March 31, 2019 PROVINCE OF ONTARIO COUNCIL FOR THE ARTS (OPERATING AS ONTARIO ARTS COUNCIL) Statement of Financial Position March 31, 2019, with comparative information for 2018 2019 2018 Restricted and Operating endowment fund funds Total Total Assets Current assets: Cash and cash equivalents $ 2,483,164 $ 4,196,453 $ 6,679,617 $ 6,054,192 Accounts receivable 73,224 — 73,224 41,451 Prepaid expenses 31,503 — 31,503 123,384 2,587,891 4,196,453 6,784,344 6,219,027 Investments (notes 2(b) and 9) 960,225 25,567,285 26,527,510 28,340,228 Capital assets (note 3) 1,340,192 — 1,340,192 1,796,704 $ 4,888,308 $ 29,763,738 $ 34,652,046 $ 36,355,959 Liabilities and Fund Balances Current liabilities: Accounts payable and accrued liabilities $ 1,283,337 $ — $ 1,283,337 $ 524,499 Deferred contributions (note 4) 586,461 — 586,461 1,698,069 Current portion of deferred lease inducement 165,322 — 165,322 165,322 Current portion of employee future benefits (note 2(b)) 404,666 — 404,666 228,356 2,439,786 — 2,439,786 2,616,246 Deferred lease inducement 950,601 — 950,601 1,115,923 Employee future benefits (note 2(b)) — — — 145,037 Fund balances: Invested in capital assets 224,269 — 224,269 515,459 Restricted for endowment purposes (note 5) — 70,311 70,311 70,311 Externally restricted funds (Schedule 2) — 17,317,273 17,317,273 16,188,687 Internally restricted funds (note 6) — 6,683,994 6,683,994 7,172,396 Unrestricted 1,126,818 — 1,126,818 1,648,153 Accumulated remeasurement gains 146,834 5,692,160
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