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Complete Financial Statements 2019-2020

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Complete Financial Statements 2019-2020 Non-Consolidated Financial Statements of THE MANITOBA MUSEUM And Independent Auditors’ Report thereon Year ended March 31, 2020 KPMG LLP Telephone (204) 957-1770 One Lombard Place Fax (204) 957-0808 Suite 2000 www.kpmg.ca Winnipeg MB R3B 0X3 INDEPENDENT AUDITORS’ REPORT To the Members of The Manitoba Museum Opinion We have audited the non-consolidated financial statements of The Manitoba Museum (the “Entity”), which comprise the non-consolidated statement of financial position as at March 31, 2020, the non- consolidated statements of operations and changes in fund balances and cash flows for the year then ended, and notes to the non-consolidated 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 non- consolidated financial position of the Entity as at March 31, 2020, and its non-consolidated results of operations and its non-consolidated 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 “Auditors’ Responsibilities for the Audit of the Financial Statements” section of our auditors’ report. 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 the 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. KPMG LLP is a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. KPMG Canada provides services to KPMG LLP. Document Classification: KPMG Confidential 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 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 Winnipeg, Canada May 25, 2020 THE MANITOBA MUSEUM Non-Consolidated Statement of Financial Position March 31, 2020, with comparative information for 2019 Other General Properties Restricted 2020 2019 Fund Fund Funds Total Total Assets Current assets: Cash $ 580,927 $ – $ – $ 580,927 $ 67,852 Restricted cash (note 3) 500,000 – – 500,000 500,000 Marketable securities 4,603 – – 4,603 5,375 Accounts receivable: Grants 130,000 – 1,216,723 1,346,723 2,186,923 Other 97,403 – – 97,403 80,265 Due from The Manitoba Museum Foundation Incorporated 112,842 – – 112,842 – Inventories 70,694 – – 70,694 65,312 Prepaid expenses 430,066 – – 430,066 210,494 Investments (note 4) – – 4,000,000 4,000,000 2,000,000 Inter-fund loans (note 12) (355,367) (268,811) 624,178 – – 1,571,168 (268,811) 5,840,901 7,143,258 5,116,221 Properties (note 5) – 29,127,252 – 29,127,252 25,230,969 Accrued benefit asset (note 7) 2,848,577 – – 2,848,577 4,575,866 $ 4,419,745 $ 28,858,441 $ 5,840,901 $ 39,119,087 $ 34,923,056 Liabilities and Fund Balances Current liabilities: Accounts payable and accrued liabilities (note 8) $ 1,990,573 $ – $ – $ 1,990,573 $ 1,497,583 Due to The Manitoba Museum Foundation Incorporated – – – – 5,853 1,990,573 – – 1,990,573 1,503,436 Accrued benefit liability (note 7) 501,979 – – 501,979 670,336 Fund balances: Invested in properties – 28,858,441 – 28,858,441 24,962,158 Externally restricted – – 5,340,901 5,340,901 3,690,163 Externally restricted working capital reserve (note 3) – – 500,000 500,000 500,000 Internally restricted (note 9) 1,075,301 – – 1,075,301 1,178,625 Unrestricted 851,892 – – 851,892 2,418,338 1,927,193 28,858,441 5,840,901 36,626,535 32,749,284 Subsequent event (note 15) $ 4,419,745 $ 28,858,441 $ 5,840,901 $ 39,119,087 $ 34,923,056 See accompanying notes to non-consolidated financial statements. Governor Governor THE MANITOBA MUSEUM Non-Consolidated Statement of Operations and Changes in Fund Balances Year ended March 31, 2020, with comparative information for 2019 2020 2019 General Fund Restricted Funds Internally Special 2020 General Restricted 2019 Unrestricted Restricted Total Properties Projects Total Total Fund Funds Total Revenue: Grants (note 10) $ 3,459,800 $ – $ 3,459,800 $ – $ – $ – $ 3,459,800 $ 3,464,800 $ – $ 3,464,800 Fundraising (note 11) 432,746 – 432,746 – 100 100 432,846 477,785 53 477,838 Contributions (notes 12 and 13) – 33,595 33,595 – 6,572,816 6,572,816 6,606,411 88,130 3,595,210 3,683,340 Admission 946,926 – 946,926 – – – 946,926 949,844 – 949,844 Museum shop 170,944 – 170,944 – – – 170,944 217,789 – 217,789 Contract services 18,874 – 18,874 – – – 18,874 14,106 – 14,106 Donations-in-kind 244,712 – 244,712 28,274 – 28,274 272,986 354,752 98,034 452,786 Memberships 223,809 – 223,809 – – – 223,809 271,615 – 271,615 Other income 404,095 316,703 720,798 – – – 720,798 516,272 – 516,272 5,901,906 350,298 6,252,204 28,274 6,572,916 6,601,190 12,853,394 6,355,093 3,693,297 10,048,390 Expenses: Salaries and employee benefits 3,998,515 – 3,998,515 – 60,645 60,645 4,059,160 3,949,361 8,719 3,958,080 Research, collections and exhibitions 60,614 236,756 297,370 – 369,318 369,318 666,688 386,808 408,953 795,761 Education and interpretation 66,054 – 66,054 – 18,014 18,014 84,068 55,346 – 55,346 Marketing and public relations 258,545 90,692 349,237 – 69 69 349,306 304,786 15,370 320,156 Fundraising and development 73,660 83,493 157,153 – 1,462 1,462 158,615 171,925 3,280 175,205 Central services 385,729
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