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Assiniboine Park Conservancy Inc Financial Statements of ASSINIBOINE PARK CONSERVANCY INC. December 31, 2019 Deloitte. 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. Opinion We have audited the financial statements of Assiniboine Park Conservancy Inc. (the “Organization”), which comprise the balance sheet as at December 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 (collectively referred to as the “financial statements”). In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Organization as at December 31, 2019, 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 (“ASNPO”). Basis for Opinion We conducted our audit in accordance with Canadian generally accepted auditing standards (“Canadian GAAS”). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Organization 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 ASNPO, 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 Organization’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 Organization or to cease operations, or has no realistic alternative but to do so. Those charged with governance are responsible for overseeing the Organization’s financial reporting process. 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 GAAS 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 GAAS, 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 Organization’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 Organization’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 Organization 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. Chartered Professional Accountants Winnipeg, Manitoba April 22, 2020 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 – 15 ASSINIBOINE PARK CONSERVANCY INC. Balance Sheet December 31, 2019 2019 2018 ASSETS CURRENT Cash and short-term investments (Note 3) $ 17,040,608 $ 16,297,134 Accounts receivable 1,439,614 1,049,428 Government grants receivable 4,047,723 3,338,798 Government remittances receivable 168,463 224,445 Inventory 385,402 354,400 Prepaid expenses 378,727 410,539 23,460,537 21,674,744 ACCOUNTS RECEIVABLES 418,000 - CAPITAL ASSETS (Note 4) 163,100,225 139,727,332 ART COLLECTIONS (Note 5) 14,057,344 14,057,344 EMPLOYEE BENEFITS RECEIVABLE (Note 6) 211,831 202,778 $ 201,247,937 $ 175,662,198 LIABILITIES CURRENT Accounts payable and accrued liabilities $ 10,249,290 $ 8,892,012 Deferred contributions - operating (Note 7) 1,083,240 500,450 Deferred revenue 150,000 - Notes payable (Note 8) 1,945,303 3,500,000 13,427,833 12,892,462 DEFERRED REVENUE 170,000 - DEFERRED CONTRIBUTIONS - CAPITAL (Note 9) 173,064,190 148,340,009 ACCRUED EMPLOYEE BENEFITS (Note 6) 144,333 135,281 186,806,356 161,367,752 COMMITMENTS (Note 17) NET ASSETS Restricted (Notes 2(c) and 5) 14,057,344 14,057,344 Internally Restricted (Notes 2(f) and 13) 365,000 225,000 Unrestricted 19,237 12,102 14,441,581 14,294,446 $ 201,247,937 $ 175,662,198 APPROVED BY THE BOARD . Director . Director Page 1 ASSINIBOINE PARK CONSERVANCY INC. Statement of Operations For the Year Ended December 31, 2019 2019 2018 REVENUE City of Winnipeg (Note 10) $ 11,078,000 $ 10,876,000 Other operating grants (Note 12) 301,393 176,348 Gifts and sponsorships (Note 11 and 12) 1,233,004 1,257,937 Amortization of deferred contributions 7,208,566 7,872,987 Interest and other income 227,678 102,122 Park revenues 13,045,320 11,778,883 33,093,961 32,064,277 Direct costs of park revenues (Note 10) 8,144,175 7,399,755 24,949,786 24,664,522 EXPENSE Administration (Note 10) 1,423,929 1,443,346 Amortization of capital assets 6,861,306 7,568,720 Insurance 200,798 199,563 Interest 90,992 119,231 Operations (Note 10) 2,378,064 2,314,764 Utilities (Note 10) 1,281,792 1,036,669 Wages, benefits and contract services (Note 10) 12,556,719 11,941,360 Donation to Winnipeg Foundation - ParkShare (Note 11) 9,051 32,337 24,802,651 24,655,990 EXCESS OF REVENUE OVER EXPENSE $ 147,135 $ 8,532 Page 2 ASSINIBOINE PARK CONSERVANCY INC. Statement of Changes in Net Assets Year Ended December 31, 2019 2019 2018 Internally Restricted Unrestricted Restricted Net Total Total Net Assets Net Assets Assets Balance, beginning of year $ 14,057,34 4 $ 225,000 $ 12,102 $ 14,294,446 $ 14,285,914 Excess of revenue over expense - - 147,135 147,135 8,532 Interfund transfers (Note 13) - 140,000 (140,000) - - Balance, end of year $ 14,057,34 4 $ 365,000 $ 19,237 $ 14,441,581 $ 14,294,446 Page 3 ASSINIBOINE PARK CONSERVANCY INC. Statement of Cash Flows For the Year Ended December 31, 2019 2019 2018 OPERATING ACTIVITIES Excess of revenue over expense $ 147,135 $ 8,532 Items not affecting cash: Amortization of capital assets 6,861,306 7,568,720 Amortization of deferred contributions (7,208,566) (7,872,987) (200,125) (295,735) Changes in non-cash operating working capital items: Accounts receivable (808,186) (748,451) Government grants receivable (708,925) 4,075,355 Government remittances receivable 55,982 97,647 Inventory (31,002) (36,049) Prepaid expenses 31,812 (66,896) Accounts payable and accrued liabilities 1,205,833 3,502,467 Deferred revenue 320,000 - Deferred contributions - operating 582,790 (71,910) 448,179 6,456,428 FINANCING ACTIVITIES Deferred contributions - capital 31,932,747 37,089,560 Repayment of notes payable (1,554,697) (1,300,000) Repayment of long term debt - (544,747) Change in employee benefits receivable (9,053) 131,457 Change in accrued employee benefits 9,052 (4,312) 30,378,049 35,371,958 INVESTING ACTIVITY Acquisition of capital assets (30,082,754) (33,589,636) (30,082,754) (33,589,636) NET INCREASE IN CASH AND SHORT-TERM INVESTMENTS 743,474 8,238,750 CASH AND SHORT-TERM INVESTMENTS, BEGINNING OF YEAR 16,297,134 8,058,384 CASH AND SHORT-TERM INVESTMENTS, END OF YEAR $ 17,040,608 $ 16,297,134 Page 4 ASSINIBOINE PARK CONSERVANCY INC.
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