Reporting COVID-19 Impact in CADAC Arts funding agencies recognize the extraordinary and devastating effect that COVID-19 is having on the arts sector. This guide provides instructions on how to provide financial and statistical information in CADAC. For guidance and clarification concerning accounting standards, please contact your accounting firm or your accountant. You can also visit the following CPA Canada website links: • https://www.cpacanada.ca/en/business-and-accounting-resources/financial-and-non-financial-reporting/mdanda-and-other-financial- reporting/publications/covid-19-external-auditing-reporting-resources/covid-19-financial-reporting-implications-resources • https://www.cpacanada.ca/en/business-and-accounting-resources/taxation/canadian-tax-news • Assessing potential COVID-19 impacts on financial statements: Questions and considerations under ASNPO: https://www.cpacanada.ca/en/business- and-accounting-resources/financial-and-non-financial-reporting/not-for-profit-organizations/publications/covid-19-questions-considerations-under- asnpo The role of CADAC is to provide guidance and support on the CADAC financial form. Please note that CADAC is not responsible for providing accounting advice. 1 FINANCIAL FORM REVENUES FEDERAL EMERGENCY AND OTHER FUNDING CADAC LINES MEASURES NOTES Emergency Funding and Digital Now from 4425 – Other Canada Council grants Emergency funding and Digital Now, provided by the Canada Council for the Arts. the Canada Council for the Arts COVID-19 Emergency Support Fund for 4430 - Department of Canadian Heritage A $326.8 million administered by Canadian Heritage to fund cultural, heritage and sports organizations that will Cultural, Heritage and Sports help address the financial needs of affected organizations, so they can continue to support artists and athletes. Organizations from the Department of Canadian Heritage Support for Independent production 4435 – Other federal public revenues A temporary measure whose purpose is to minimize the consequences of the void created by the lack of companies from Telefilm Canada - Short- insurance coverage for interruptions in filming and the abandonment of productions caused by the COVID-19 Term Compensation Fund for Canadian pandemic in the sector of audiovisual production. Audiovisual Productions (STCF) https://telefilm.ca/en/financing/short-term-compensation-fund-for-canadian-audiovisual-productions Canada Emergency Wages Subsidy (CEWS) 4435 – Other federal public revenues The subsidy covers 75% of an employee's wages – up to $847 per week - for employers of all sizes and across all sectors who have suffered a drop in gross revenues. Additional information and a calculator are now available on the CRA website, allowing organizations to determine eligibility and how much the subsidy will cover. If eligible, you may be able to take advantage of both the TWS and the CEWS. For more information see How the TWS and CEWS work together: https://www.canada.ca/en/revenue-agency/services/subsidy/temporary-wage- subsidy/tws-with-cews.html 2 EMERGENCY AND OTHER FUNDING CADAC LINES MEASURES NOTES Temporary 10% Wage Subsidy (TWS) 4435 – Other federal public revenues A three-month measure that will allow eligible employers to reduce the amount of payroll deduction required to be remitted to the Canada Revenue Agency. If eligible, you may be able to take advantage of both the TWS and the CEWS. For more information see How the TWS and CEWS work together: https://www.canada.ca/en/revenue-agency/services/subsidy/temporary-wage-subsidy/tws-with-cews.html Canada Emergency Business Account For the loan portion use: An interest-free loan of up to $60,000 for qualifying businesses and organizations. (CEBA) 6290 - Current liabilities (loan payment in For more information, please visit: https://ceba-cuec.ca/ the next fiscal year) or 6295 - Other liabilities (remainder of the loan) For guidance and clarification concerning the accounting standards of the loan and revenue portion of the Canada For the revenue portion use: Emergency Business Account (CEBA), please contact your accounting firm or your accountant. You can also visit 4435 – Other federal public revenues the CPA Canada website at the link provided above. For the amount that is repaid (if applicable) 6125 – Other adjustment items affecting surplus or (deficit) Canada Emergency Commercial Rent For the loan portion use: A program for small businesses that will seek to provide loans and/or forgivable loans to commercial property Assistance (CECRA) 6290 - Current liabilities (loan payment in owners who in turn will lower or forgo the rent of small businesses for the months of April (retroactive), May, and the next fiscal year) or 6295 - Other June. It was extended to October 2020 and was replaced by CERS. liabilities (remainder of the loan) For the revenue portion use: 4435 – Other federal public revenues Canada Emergency Rent Subsidy (CERS) 4435 – Other federal public revenues Canada Emergency Rent Subsidy, which would provide simple and easy-to-access rent and mortgage support for qualifying organizations affected by COVID-19. Black Entrepreneurship Program 4435 – Other federal public revenues To support Black-led organizations and businesses across the country, seeking to combat systemic racism in Initiatives corporate Canada, in partnership with the Toronto Foundation, a community organization that supports philanthropy. Will provide loans of between $25,000 and $250,000. 3 EMERGENCY AND OTHER FUNDING CADAC LINES MEASURES NOTES More details available at https://www.canada.ca/en/services/business/maintaining-your-business.html Canada United Small Business Relief Fund 4435 – Other federal public revenues The fund provides relief grants of up to $5,000 to small businesses. The grant can be used for specific efforts: purchasing PPE, renovating physical spaces, or developing your website or e-commerce capabilities. Both For- Profit and Not-For-Profit organizations are eligible to apply but Government organizations, municipalities, charities and the chamber of commerce network are not eligible to apply. Regional Relief and Recovery Fund (RRRF) For the loan portion use: The Atlantic Canada Opportunities Agency (ACOA) and the Atlantic Association of Community Business 6290 - Current liabilities (loan payment in Development Corporations (CBDCs) are distributing the RRRF in Atlantic Canada. The RRRF is complementary to the next fiscal year) or 6295 - Other existing federal programs. liabilities (remainder of the loan) You must first apply for other federal support measures such as the Canada Emergency Business Account benefit, For the revenue portion use: the Wage Subsidy benefit and the Commercial Rent assistance for small businesses, among others. 4435 – Other federal public revenues More details are available at: https://www.canada.ca/en/services/business/maintaining-your-business.html Support for Indigenous businesses For the loan portion use: Up to $306.8 million in interest-free loans and non-repayable contributions for First Nations, Inuit, and Métis 6290 - Current liabilities (loan payment in businesses. Financial support will be provided through Aboriginal Financial Institutions and administered by the the next fiscal year) or 6295 - Other National Aboriginal Capital Corporations Association, as well as the Métis Capital Corporations in partnership with liabilities (remainder of the loan) Indigenous Services Canada. For the revenue portion use: 4435 – Other federal public revenues Up to $40,000 will be available to small and medium-sized Indigenous businesses: an interest-free loan up to $30,000 a non-repayable contribution up to $10,000. Northern Business Relief Fund (NBRF) 4435 – Other federal public revenues Provides short-term support, in the form of a non-repayable grant, for ongoing operational costs to small- and medium-sized territorial businesses impacted by economic disruptions due to COVID-19. The Fund provides eligible territorial SMEs with short-term relief for operational costs in the form of a non- repayable grant ranging from $2,500 to a maximum of $100,000. The funding covers a maximum period of 4 4 EMERGENCY AND OTHER FUNDING CADAC LINES MEASURES NOTES months, retroactive to April 1, 2020. The NBRF is delivered directly through the Canadian Northern Economic Development Agency. Northwest Territories COVID-19 Economic For the loan portion use: Non-repayable support for businesses in the territories to help address the impacts of COVID-19. This support will Relief 6290 - Current liabilities (loan payment in assist businesses with operating costs not already covered by other Government of Canada measures. the next fiscal year) or 6295 - Other liabilities (remainder of the loan) For the interest portion use 5520 - Other administrative expenses Business Credit Availability Program For the loan portion use: This program provides $40 billion of additional support through the Business Development Bank of Canada (BDC) (BCAP) 6290 - Current liabilities (loan payment in and Export Development Canada (EDC). the next fiscal year) or 6295 - Other liabilities (remainder of the loan) EDC Loan Guarantee for Small and Medium-Sized Enterprises For the interest portion use This program provides credit and cash flow term loans to small and medium-sized enterprises. 5520 - Other administrative expenses BDC Co-Lending Program for Small and Medium Enterprises The program provides term loans for operational and liquidity needs of businesses, which could include interest payments on existing debt. Mid-Market Financing