ANNUAL REPORT 2019-2020
Our Mission
To inspire and prepare young people to succeed in a global economy
JA Values
• Demonstrate trust and integrity in all that we do • Respect youth and believe in their potential • Believe in the free enterprise system and promote entrepreneurial ideals • Encourage and promote volunteerism and volunteer leadership utilizing Canadian business experience • Commit to performance excellence and continually improve all that we do • Embrace collaborative and strategic alliances • Demonstrate leadership and teamwork
Message from Greg Leipsic President & CEO, JA Manitoba
Dear Donors and Partners:
As we reflect on the past year, I cannot help but have very mixed feelings. This has been a difficult year for everyone and though our experiences have not been the same, we as a province certainly came together during this JA pandemic. JA Manitoba was headed for a record number of programs delivered and a Vision significant financial surplus but COVID had other plans for us, like many non-
profits and for profit businesses. That being said, we had to change our focus, to certainly be more flexible and change our programs. In a matter of We will be recognized weeks, we digitized our signature programs through a national collaboration as vital to the success of the JA network across Canada so that we could continue to offer our of our youth in youth the opportunity to learn at home. reaching their potential through We have worked hard over the past number of months to have a suite of partnership with programs that are efficient and convenient for our educators to use. We business and know that this year will be once again challenging during the pandemic but educators in the we here at JA are committed to continuing the financial literacy education nationwide delivery of of young Manitobans. relevant business In this annual report, we highlight some of the great accomplishments of learning experiences our students across Manitoba. Finally, thank you to all of financial donors, by inspired volunteers and educators. We are deeply grateful for your support. volunteers.
Sincerely,
Greg Leipsic, President & CEO JA Manitoba
Message from Brad Ross Chairman of the Board
Like so many non-for-profit organizations, Junior Achievement Manitoba is adjusting to the “new normal” brought about by the COVID-19 pandemic. Our commitment to educate the youth on financial literacy remains the key priority and our challenge is to creatively adjust the strategic plan. By the first week of March, we had delivered 61% of our projected programming and then we had a hard stop. Over the past few years, the number of programs being delivered was on an upward trajectory with this past year forecasted to be the most programs delivered in more than a In my time decade. All this to say we were building student reach momentum and with JA I’ve while we pause……..we will re-build. There are many good days ahead for learned that JA Manitoba, and the team displayed agility finalizing the Company Program virtually. The strength of our operational team has helped our organization leadership move forward through this interruption. itself wasn’t a The Manitoba Business Hall of Fame Gala also felt the effect this past title, it was a spring. Inducting Hartley Richardson and Doug Harvey, two pillars in the decision and business community will have to wait. I understand that large formal gatherings in the future is a stretch to visualize today, however, the responsibility. credibility of this induction cannot be understated, and it was decided to postpone rather than rush a virtual ceremony.
Keeping with the theme of change, I am proud to be handing the Chair’s gavel to Jeff Koziuk. He brings a solid understanding of the organization to the Chair role, holding a Vice Chair position over the past few years. Jeff’s leadership will most certainly inject a fresh perspective driving new Betty Mae, initiatives at the board level. It has been an honor to serve as Board Chair 2020 and I look forward to staying involved with the organization and Company contributing as Past Chair. Program Regards, President of the Year Brad Ross JA Manitoba Chairman of the Board
Fast Facts - 2019/2020*
149 Manitoba students volunteers participated in a JA program
349 Programs Schools
226 Programs CANCELLED**
*until March 13, 2020 **due to Covid-19 Our Pillars JA programs inspire students to understand their potential, set life goals and succeed at school and in business.
JA in Canada reaches more than 268,000 students annually in 9,440 schools through a network of approximately 11,043 corporate and community volunteers spread throughout ten provinces.
JA works in partnership with educators, volunteers, and businesses to bring the “real world” into the classroom to educate students about:
Financial Literacy JA empowers students to make smart, lifelong financial choices. Through our financial literacy programs, students learn how to create and manage wealth. They develop skills in areas such as budgeting, investing, and creating financial plans.
Work Readiness Achievers are more likely to stay in school and earn more than students who don’t participate in our programs. Our work readiness programs give students invaluable career- building skills that they can use throughout their lives. Students learn how to communicate, network, interview for jobs, and collaborate with diverse groups of people to achieve common goals.
Entrepreneurship JA inspires youth to start their own businesses, create jobs, and contribute to the Canadian economy. In our entrepreneurship programs, students gain first-hand experience in running a successful business. They learn how to create business plans, innovate, manage teams, and take a new product to market. Our volunteers use a variety of learning methods in our programs including hands-on activities, classroom discussions, and e-learning. They also share their personal experiences to help students see how these lessons apply to the real world. This engages students, so they can retain and use the knowledge long after the program ends. Students leave programs feeling inspired, ready to make a positive difference in their communities and confident in their abilities.
Postponed due to Covid-19, date to be determined Manitoba Business Hall of Fame Supporters
PRESENTING SPONSOR
Gold Silver Bronze
James Richardson & Sons, Limited The Asper Foundation and Affiliated Companies CIBC Canad Inns Johnston Group Taylor McCaffrey LLP Gerry and Barb Price Maxim Truck & Trailer MediGas Manitoba Ltd. Princess Auto Foundation
PWC
Table Sponsors
AON Canada Inc. Navistar Canada ULC Royal Canadian Properties Bison Transport Palliser Furniture Holdings Limited BMO Financial Group Payworks SAS Institute Canada Caisse Financial Group Pitblado The Buller Foundation CDEM Pollard Family Foundation Tryton Investment Company ClaimSecure Qualico Tundra Oil Conviron-Controlled RBC Western Financial Group Environments Ltd Red River College Winnipeg Building & Fillmore Riley LLP Royal Aviation Museum of Decorating Ltd. Hotel Fort Garry Western Canada Wynward Insurance Group
Friends of JA Manitoba
BFL Canada Gallagher Insurance St. Boniface Hospital Blake Fitzpatrick and Shelley Betton John and Margy Nelson Foundation Bruce Bennett and Shawna Cook Marnie Strath and Robert Friesen Travel Manitoba Cancer Care Manitoba Foundation Mercer Waterford Global Inc. Dave Hill Law Corporation Michael Leipsic World Trade Centre Devin McManus Pat and Lee Meagher Winnipeg
OUR FINANCIAL SUPPORTERS 2019/20 proved to be an exciting and unprecedented year. Thank you to our many long–standing and newly arrived Sponsors and Donors who provided the financial and volunteer resources needed to reach 8,273 Manitoba students.
$100K+ $1K – $4999 Province of Manitoba - Fairstone Financial MB4Youth, Children & Youth Opportunities McCain Foundation
Wawanesa $45K+ Winnipeg Goldeyes Field of Dreams Foundation RBC Foundation World Trade Centre Winnipeg
$15K - $25K $500 – $999
CN in honour of Louie Tolaini Canada Helps Campaign Manitoba Hydro East Kildonan-Transcona Community Committee
Pool Pros $10K – $14 999K Town of Minnedosa CWB National Leasing Town of Neepawa CIBC Under $500 IG Wealth Management All Charities Campaign
$5K – $9999 RM of Taché Actuarial Foundation of Canada RM of West Interlake BACF Town of Carman and RM of Dufferin Friesens
(Vantage Productions) by Made Here Charitable Please accept our sincere apologies if we Donation unintentionally omitted any corporation, organization or individual who has contributed to JA Manitoba in Rogers 2019/2020. Please advise the JA Manitoba office of SAFE Work Manitoba / WCB any error so that we may correct our records
TD Canada
Our Programs and Delivery elementary school program
More than Money The JA More than Money program teaches elementary students about earning, spending, sharing, and saving money.
24 Classes 464 Students
Our Business World In JA’s Our Business World program, elementary students explore how businesses are created and what makes them thrive. Using games and multimedia, students learn about innovation, start-ups, and self- employment. 55 Classes 1082 Students
Our Community Our Community – Needs, Jobs, Tools gives elementary school students the building blocks for a successful career – right here at home! The program shows students how business shapes our lives and strengthens society. 60 Classes 1167 Students middle school program Dollars with Sense Presented by Caisse Financial. Through the newly updated program, Grade 7-9 students get the vital tools they need to make smart financial decisions, live debt-free and become savvy investors. Students learn personal money management skills that they can apply to their lives ... beginning now.
131 Classes 2863 Students
Economics for Success In Economics for Success, grade 8-10 students take a closer look at the advantages of staying in school, as well as learn what’s needed to succeed in today’s workforce. This program will help students see the link between education and achieving their goals. 34 Classes 896 Students
Stronger Together Stronger Together: Diversity in Action is an exciting program from JA that teaches grade 6-8 students the value of diversity and how it contributes to improving morale, creativity, teamwork and productivity.
22 Classes 436 Students secondary school program
Company Program Over a 21-week period, JA’s Company Program teaches grade 9-12 students how to organize and operate a real business. Volunteers from the local business community work with students to launch and run a small enterprise. After-School 9 Teams 121 Students In-School 2 Teams 39 Students
TITAN JA’s Titan program gives grade 10-12 students the confidence to go after their entrepreneurial dreams. Students take part in an interactive online challenge where they become CEO’s of their own company. They must create a business strategy and strive to succeed in a highly competitive industry. 5 Classes 129 Students
Be Entrepreneurial JA’s Be Entrepreneurial program inspires grade 9-12 students to imagine a business venture while still in school. This program is designed to help ignite students’ entrepreneurial spirit and help them create business plans. 2 Classes 30 Students
Personal Finance is JA’s new financial literacy program for Grade 9-12 students. The program teaches students personal money management skills including the key elements of personal finance such as spending wisely, budgeting, saving, investing and using credit. 1 Class 18 Students
JA’s Investment Strategies program teaches students how to save and invest for the future. The program includes both interactive classroom lessons and an online stock market simulation, Invest JA, where students manage their own simulated stock portfolio. 1 Class 18 Students
World of Choices This program brings together gender or industry specific high school students with career mentors to explore different career paths.
CANCELLED FOR 2019/2020 due to MB Health Authority’s guidance. Partnered with industry to create a Virtual Career Expo, June 3, 2020.
In place of WORLD OF CHOICES: Due to COVID-19 and the Manitoba Health Authority advisory, the World of Choices events were cancelled for the 2019-2020 school year. In its place, JAMB assisted and sponsored a first ever Epic Week Manitoba, a Virtual Career Fair. It was hosted on the EdgeFactor platform with two keynote speakers during the day and many exhibitors that allowed for interaction with students and parents alike. Not only were the exhibitors online and live for that one day, June 3, 2020, the sessions were recorded allowing for individuals to view after that day. 1 Class 1000 Students
PROGRAM DELIVERY JA Manitoba had the opportunity to work with numerous schools within the various regions and communities throughout the province.
JA recognizes the importance of being a leader in developing relevant programs educators can draw upon to support and enhance classroom curriculum delivery.
We offer free-of-charge learning experiences that teach leadership, financial literacy and numeracy, citizenship, entrepreneurship, critical thinking, and communication skills.
110 Schools 349 Classes 149 Volunteers
1 Epic Week (World of Choices (4 scheduled but cancelled)) 8273 Students
CLASSROOM Elementary Middle Senior World of PROGRAMS Choices
Rural 31 31 8 1
Northern 57 22 0 0
Urban 17 42 3 0
Urban Company Program 0 0 9 0 (afterschool program) Urban Company Program 0 0 3 0 (in school) French Language 34 92 0 Programs
TOTAL 139 187 23 1
COMMUNITY FOCUSED PROGRAMMING
Rural During the 2019/20 school year, 70 programs were delivered throughout rural Manitoba communities with the assistance of 56 Community local volunteers that offered relevant insight to each student, a total of 1384 students participated. These programs were made possible through the extensive financial commitment from the Province of Manitoba - a commitment that has been in existence since 1993.
Urban During the 2019/20 school year, 49 programs were delivered throughout the City of Winnipeg, reaching 1136 students. These Community programs were made possible because of 43 volunteers and financial sponsorships.
Urban With the current urban landscape changing, the importance of providing programs to Aboriginal, First Nations, and Metis youth Aboriginal has never been more important. JA Manitoba prides itself in the Community programming it is able to present to Winnipeg Inner City schools that offer insight into the day to day challenges that face our youth. In 2019/20 there were 13 programs delivered to Urban Aboriginal schools with 319 students participating.
Northern JA Northern Community is based in Thompson, Manitoba. 79 programs were delivered to various schools in Northern Manitoba. Community Programs within this area allow youth to benefit from the knowledge and skills that prepare them for future endeavors - entering into the workforce or post-secondary education. 1346 youth participated in JA programs in the North.
French In conjunction with CDEM (Economic Development Council for Manitoba Bilingual Municipalities), JA delivered 126 programs in Language Urban and Rural French language communities. Now in our 8th Community year of French language JA programming, we are pleased to see the continued growth in this area; reaching a total of 2967 French language students in the 2019/20 academic year and 12 volunteers.
VOLUNTEERS All JA programs are delivered with the assistance of numerous volunteers. Without these volunteers, students would not receive the benefits of real-life examples and expertise on the various dimensions of business that are presented. Volunteers gave of themselves for a half day, a full day, or a few hours a day over a series of weeks.
Volunteers welcomed the opportunity to develop their own communication and presentation skills in an enthusiastic environment, where they are welcomed for their unique business insight and expertise. It is these same volunteers that offer so much to the students that receive the reward of having touched students in a unique and rewarding capacity.
The time volunteers give to JA does not go unnoticed. Within our Company Program - A Student Venture, volunteer advisors give over 75 hours (per advisor) mentoring youth in the realities of operating a business. By the end of the experience, advisors have also expanded their knowledge and have had the opportunity to network with other similar volunteers within the program. For in-school programming, a significant number of our volunteers were recruited through volunteer recruitment partnerships. In the North partnerships have been developed with UCN, CIBC, Citi Financial and TD. In the Rural areas volunteer partnerships have been developed with CIBC, RBC, Manitoba Hydro, TD and various local business volunteers. French language program volunteer partnerships have been developed with Caisse Financial Group, CDEM and the University of Saint- Boniface, Entrepreneurship Club. In Winnipeg volunteer partnerships have been developed with RBC, CIBC, KPMG, Caisse, AFC, Deloitte, CWB and a core group of dedicated returning veteran volunteers.
Volunteers make the material relevant, fuel the entrepreneurial spirit and challenge the student to excel while being an inspirational source for young people in search of role models.
This year 149 volunteers brought the JA experience to life in classrooms across Manitoba. Thanks to their passion for business and contribution of time, we can ensure Manitoba builds a solid foundation for its future economic prosperity.
JA Manitoba also congratulates our many volunteers who help us during events and on our Board of Directors. These individuals, through donating their time and talent exemplify the power of giving. Their hard work creates lasting impressions with incredible events - all in the name of reaching students and offering them unique learning opportunities. On behalf of the students, we would like to extend an enormous “thank you” to all of our volunteers.
SPECIAL EVENTS The after-school Company Program - a Student Venture, presented by IG Wealth Management
Thank you to all the participants, volunteers and sponsors that participate in our various special events throughout the year. Due to COVID-19, the Company Program had to suspend all in person meetings after March 15, 2020. Our achievers were unable to sell at the final two trade fairs and the Celebration of Achievement was held online via zoom. The companies experienced an economic down turn like never before. It is with your continued support and participation that JA can continue to inspire and educate our Manitoba youth!
MEETING OF THE MINDS: Company Program Launch - October 2019 Guest Speakers from Andrea Tiopo & Rachel Dufresne
JA MANITOBA held the annual kick-off event, “Meeting of the Minds” for the Company Program – A Student Venture, at Canad Inns Polo Park. 120 parents, volunteers (Advisors), students (Achievers) and JA Corporate partners attended. Advisors and Achievers were placed in their teams where they met and got started with icebreaker activities. Rachel and Andrea from TableSpace were the guest speakers for the evening.
Executive Training Company Program - November 2019 Newly elected executives from each of the Company Program teams are invited to attend the annual “Executive Training” sessions. The boardroom offices at Thompson Dorfman Sweatman LLP Law in the True North Square are state of the art office and conference spaces. We were able to use their facilities for the morning of training! We delivered all seven training sessions simultaneously.
Training sessions were conducted by volunteer professionals in areas such as finance, marketing, production, human resources, leadership, safety, and social media.
A special thank-you goes out to MB Hydro, DueNorth Systems, the World Trade Centre Winnipeg, SAFE Work Manitoba, and other professionals for delivering the VP and Presidential training sessions. Students in executive positions were given guidelines and pointers from our volunteer business trainers on how to run their departments for the duration of the program.
Trade Fairs Company Program – February & March 2020 During the Trade Fairs, students were not only marketing their products to the public, but they were also competing with each other to win a number of trade fair specific awards.
JA enlisted the marketing expertise of Chris Westdal, owner of Pool Pros, alumni of Company Program, to not only critique each trade fair booth, but provide constructive feedback.
February 29: Kildonan Shopping Centre (full day trade fair) March 8: BellMTS Centre during a Moose Game March 13: MB Hydro Gallery downtown & Winnipeg Square (lunch hour trade fair) CANCELLED March 28: St. Vital Shopping Centre (full day trade fair) CANCELLED
Celebration of Achievement Company Program – May 2020 CoA was scheduled to be held on April 28 at the CanadInns Polo Park but had to be cancelled and rescheduled as a ZOOM event on May 12, 2020.
This year, eight new companies from Winnipeg schools and our first rural schools were honored for their achievements: showcasing the brightest and the best. Awards, scholarships and numerous prizes were handed out at this evening.
Waterford Global Inc. presented the Future Leader of Manitoba scholarship worth $1000, which they have sponsored for many years. IG Wealth Management, for the second year, awarded a $1000 scholarship and World Trade Centre Winnipeg became a first-time scholarship sponsor for $1000. Jack McLaughlin from PAL Group more than doubled their giving and awarded 4 students with $1000 each. (In the past it has been a $750 Bursary and a $750 Scholarship).
Safe Work MB gave awards for the top 3 safety plans, the advisors were able to present their students with the VP of the Year awards, where 8 students were recognized.
Not only were all sponsors represented online, but so were the JAMB Board of Directors, staff, parents, advisors, along with many students. Up to 130 individuals joined us for our first ever Zoom CoA!
The World of Choices, presented by RBC Future Launch All World of Choices events were cancelled due to COVID-19 restrictions. In its place, JAMB assisted and sponsored a first ever Epic Week Manitoba, a Virtual Career Fair. It was hosted on the Edge Factor platform with two keynote speakers during the day and many exhibitors that allowed for interaction with students and parents alike. Not only were the exhibitors online and live for that one day, June 3, 2020, the sessions were recorded allowing for individuals to view after that day.
Board of Directors
Brad Ross Greg Leipsic Chris Voogt Jeff Koziuk Chairman of the Board President & CEO Assistant VP & Manager Account Executive (MB & SK) Territory Manager JA Manitoba Canadian Western Bank SAS Institute (Canada) Norscan Instruments Ltd. Ken Dufault Nicolas Joubert Andrew Kussy Devin McManus VP & General Manager Associate Development Manager Production Manager Medigas Manitoba Ltd. MLT Aikins The Dream Factory Lifetouch Canada
Meet the Team
Greg Leipsic Shauna Angers President & CEO Urban Program Manager
Liz Hildebrand Michelle Pruder Company Program Manager Northern Program Manager
Joel Martin & Eric Lamothe Stacie Cardy French Language Program Manager Rural Program Manager
www.jacanada.org/manitoba
200 – 1460 Chevrier Blvd Winnipeg, MB R3T 1Y6 204.956-6082
facebook.com/jachievement
twitter.com/ja_canada
Charitable Registration: 107554289 RR0001
We’re on a mission to inspire and prepare youth to succeed in a global economy.
STATEMENT OF FINANCIAL POSITION JUNE 30, 2020 Operating Restricted Fund Fund 2 0 2 0 2 0 1 9
A S S E T S
CURRENT C 168,209 C S 168,209 C 25,062 14,000 14,000 40,582 Cash Accounts receivable 2,491 2,491 3,254
GST receivable 20,055 - 20,055 19,501 204,755 204,755 88,399 Prepaid expenses CAPITAL ASSETS (Hote 3) 600 - 600 779
C 205,355 C - S 205,355 C 89,178
L I A B I L I T I E S
CURRENT Accounts payable and accrued liabilities C 8,025 C S 8,025 C 40,753 Deferred revenue (Hote 5) 177,262 177,262 140 Loan payable (Hote 6) 40,000 - 40,000 - 225,287 - 225,287 40,893
F U N D B A L A N C E
FUND BALANCE (19,932) - ( 19,932) 48,285
C 205,355 C - S 205,355 C 89,178
Approved on behalf of the Board
...... Director Director
Financial statements prepared by:
STATEMENT 22
YEAR ENDED JUNE 30 OPERATING FUND 2 0 2 0 2 0 1 9
REVENUE
Operating contributions S 298,584 C 270,350 Manitoba Business Hall of Fame Gala 199,750 Program funding 8,630 12,375 Other revenue 498 778 Amortization of deferred capital contributions 28 35 CEWS subsidy 4,106 - 311,846 483,288
EXPENDITURES (Schedu/e 1)
Administration 30,552 38,654 Facilities 6,331 9,963 Personnel 223,362 226,901 Programming 117,029 138,271 Special events 2,611 73,729
379,885 487,518
EXCESS OF EXPENDITURES OVER REVENUE BEFORE OTHER ITEMS ( 68,039) ( 4,230)
OTHER ITEMS
Amortization of capital assets 178 235
EXCESS OF EXPENDITURES OVER REVENUE ( 68,217) ( 4,465) FUND BALANCE, beginning of year 48,285 52,750 FUND BALANCE, end of year S( 19,932) C 48,285
STATEMENT OF OPERATIONS AND FUND BALANCES YEAR ENDED JUNE 30
RESTRICTED FUND 2 0 2 0 2 0 1 9
REVENUE
Program fees S - C -
EXPENDITURES
Events Salaries - 3,900
- 3,900
EXCESS OF EXPENDITURES OVER REVENUE - ( 3,900)
FUND BALANCE, beginning of year - 3,900
FUND BALANCE, end of year S - C -
STATEMENT OF CASH FLOWS YEAR ENDED JUNE 30
2 0 2 0 2 0 1 9
CASH FLOW FROM
OPERAT/HG ACT/V/T/ES Cash received from corporate, individual and government donations S 383,963 C 259,469 Cash received from fundraising events 172,350 199,750 Cash paid to employees, suppliers and bank ( 413,166) ( 493,850)
143,147 ( 34,631)
NET INCREASE (DECREASE) IN CASH 143,147 ( 34,631)
CASH, beginning of year 25,062 59,693
CASH, end of year S 168,209 C 25,062
CASH COMPRISED OF
Cash - general fund S 168,209 C 25,062
NOTES OF FINANCIAL STATEMENTS June 30, 2020
1. NATURE OF OPERATIONS
Junior Achievement of Manitoba Inc. ("organization") principal activity is providing youth with practical business and economic education. During 1994 the organization expanded its operations to include rural Manitoba with the financial assistance of the Province of Manitoba under the Rural Economic Development Initiative. It is exempt from income tax under Section 149 of the Income Tax Act. The organization was incorporated under the Corporations Act of Manitoba on June 13, 1963.
2. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES The financial statements have been prepared in accordance with Canadian accounting standards for not- for-profit organizations.
FUND ACCOUNTING
The organization uses fund accounting procedures which result in a self balancing set of accounts for each fund established by legal, contractual or voluntary actions. The various funds have been amalgamated for the purpose of presentation in the financial statements. The organization maintains the following funds:
Operating fund - reports the general activities of the organization.
Restricted fund - reports the funds used for the direct benefit of the achievers. The sources of revenue for this fund are contributions designated for the fund, interest on the bank account, rental of space and equipment and the sale of books and records to the Junior Achievement companies, profit taxes paid by the Junior Achievement companies and special projects by the Achiever Associations. The expenditures from this fund can only be made for the direct benefit of the achievers such as scholarships and expenses related to achiever conferences.
CAPITAL ASSETS
Capital assets are stated at cost less accumulated amortization. In the year of acquisition, amortization is calculated at half the prescribed rate. Capital assets are amortized over their estimated useful lives at the following rates and methods: Computer Equipment 30% declining balance method Furniture and fixtures 20% declining balance method
REVENUE RECOGNITION
The organization follows the restricted fund method of accounting for restricted contributions which recognizes revenue in the appropriate restricted fund. In the general fund, designated contributions are recognized as revenue in the period in which the related expenditures are made. Unrestricted contributions are recognized as revenue of the general fund in the year received or receivable if the amount to be received can be reasonably estimated and collection is reasonably assured. Advance payments on program fees and promotional events are deferred and recognized as revenue at such time as the related event occurs.
IN-KIND SERVICES
The organization receives contributions of goods and services in kind. The value of these services is not readily determinable and therefore is not reflected in the accompanying financial statements
2. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (continued)
DEFERRED CAPITAL CONTRIBUTIONS
The organization received external contributions for the purchase of capital assets. These capital contributions are deferred and brought into revenue at the same rate as the related capital assets.
USE OF ESTIMATES
The preparation of financial statements in accordance with Canadian accounting standards for not-for- profit organizations requires management to make estimates and assumptions that affect the reported amounts of certain assets and liabilities at the date of the financial statements and the reported amounts of certain revenue and expenses during the year. Actual results could differ from those estimates.
FINANCIAL INSTRUMENTS
The organization initially measures its financial assets and financial liabilities at fair value. It subsequently measures all its financial assets and financial liabilities at amortized cost except for investments in equity instruments that are quoted in an active market, which are measured at fair value.
The financial assets subsequently measured at amortized cost include cash, accounts receivable and goods and services tax receivables. The financial liabilities measured at amortized cost include long term debt, accounts payable, accrued liabilities and amounts due from related parties.
There are no financial instruments measured at fair value. 3. CAPITAL ASSETS Accumulated Net Book Value Cost Amortization 2 0 2 0 2 0 1 9
Computer equipment C 8,089 C 7,931 S 158 C 226 Furniture and fixtures 22,488 22,046 442 553
C 30,577 C 29,977 S 600 C 779
4. OVERDRAFT LIMIT The organization has a C25,000 demand operating loan limit subject to annual review, which bears interest at prime rate plus 3.00%. As at June 30, 2020, C25,000 of the demand loan was available for use.
5. DEFERRED REVENUE Deferred revenue consist of the following:
2 0 2 0 2 0 1 9 Manitoba Business Hall of Fame Gala S 168,550 C Manitoba Community Services Council grant 112 140 EPIC 8,600 -
S 177,262 C 140
6. LOAN PAYABLE
The organization received a C40,000 loan under the Canada Emergency Business Account (CEBA) program. The loan is a 0% interest bearing loan with no principle payments and if repaid before December 31, 2022 will result in a loan forgiveness of 25% (up to C10,000). The loan can be converted into a 3-year term loan at 5% annual interest paid monthly effective January 1, 2023.
7. ECONOMIC DEPENDENCE
The organization receives a major portion of its revenues pursuant to an agreement with the Province of Manitoba. The organization receives contractor fees for educational programming offered to students in urban, rural and northern Manitoba. The agreement is subject to an annual review by the Province of Manitoba. Revenues from these contractor fees for the year ended June 30, 2020, totaled C139,000 (2019 - C139,000). The volume of financial transactions undertaken by the organization with the Province of Manitoba is of sufficient magnitude that the discontinuance of this funding would endanger the ability of the organization to maintain operations at its current level.
8. RELATED PARTY TRANSACTIONS Related party transactions are as follows: 2 0 2 0 2 0 1 9 Revenue
JACAN corporate contributions S 32,271 C 32,271 Expenses JACAN fees S 19,501 C 17,887
Junior Achievement of Manitoba Inc. is a reporting entity under Junior Achievement of Canada (JACAN). These transactions are in the normal course of operations and are measured at the exchange amount, which is the amount of consideration established and agreed to by both parties.
9. FINANCIAL INSTRUMENTS The organization is exposed to the following risks through its financial instruments: Credit risk The organization's primary exposure to credit risk arises from its grants receivable balance. The maximum exposure to credit risk at the balance sheet date is the fair value of these instruments.
For grants receivable, the organization assesses, on a continuous basis, their estimated realizable value. 10. COVID-19
Since December 31, 2019, the outbreak of the novel strain of coronavirus, specifically identified as "COVID-19", has resulted in a widespread health crisis that has affected economies and financial markets around the world resulting in economic downturn. This outbreak may also cause staff shortages, reduced demand, increased government regulations or interventions, all of which may negatively impact the financial condition or results of operations of the organization. The duration and impact of the COVID-19 outbreak is unknown at this time and it is not possible to reliably estimate the length and severity of these developments.
JUNIOR ACHIEVEMENT OF MANITOBA INC. SCHEDULE 1 SCHEDULE OF OPERATING FUND EXPENDITURES YEAR ENDED JUNE 30
2 0 2 0 2 0 1 9
ADMINISTRATION
Advertising and promotion S 2,901 C 2,100 Bank, interest and service charges 1,354 1,347 Board meetings 85 143 Bookkeeping services 5,256 5,304 Computer maintenance 196 3,525 Conference dues 937 1,854 Consulting fees 1,579 Equipment repair and maintenance 154 308 Meals and entertainment 87 303 Office equipment, maintenance and lease 5,259 5,040 Office supplies and printing 359 907 Postage and delivery 1,278 1,407 Professional fees 7,829 7,901 Telephone 4,318 5,506 Vehicle 328 993 Website 211 437 30,552 38,654 FACILITIES Insurance 4,542 4,314 Rent 1,789 5,649 6,331 9,963 PERSONNEL Bonus 13,500 Employee benefits 24,120 19,982 Recruitment and training 184 Salaries 199,242 193,235 223,362 226,901 PROGRAMMING Program management 74,463 74,471 Program supplies and fees 42,256 62,989 Recognition and training 267 559 Travel 43 252 117,029 138,271 SPECIAL EVENTS Manitoba Business Hall of Fame Gala 73,729 Other 2,611 - 2,611 73,729
S 379,885 C 487,518