FINANCE REPORT 2018-2019 FINANCE REPORT 2018-2019 3 CONTENTS Message from the Director of Finance .................04 Finance Department Function ........................................................05 Objectives ......................................................06 Meet our Team ......................................................07 Staff Bios ...............................................................08 MFNERC Financial Statements .....................15 Independent Auditors’ Report ......................16 Statement of Financial Position ...................18 Statement of Operations ..............................19 Statement of Changes in Net Assets ............20 Statement of Cash Flows ..............................21 Notes to the Financial Statements ...............22 Schedule 1 - Schedule of Revenue and Expenses - Administration ....................29 Schedule 2 - Schedule of Revenue and Expenses - Manitoba First Nations School System ...............................................30 4 FINANCE REPORT 2018-2019 MESSAGE FROM THE DIRECTOR OF FINANCE On behalf of MFNERC’s Board of Directors, we welcome you to preview our 2018-19 Financial Audit. Together we value education. A positive educational process is our first priority. We are constantly looking for ways to work more efficiently, at the same time ensuring a quality education for First Nations Students in Manitoba. This Audit report reflects Manitoba First Nations Education Resource Centre’s (MFNERC) on-going commitment to improving both its performance and its financial and fiscal accountability. MNP LLP Chartered Accountants conducted the audit of the MFNERC’s Financial Statements for the fiscal year ending March 31, 2019. Total revenue was $72,835,050 and total expenses were $73,287,554. We are reporting a deficit of $452,504 for MFNERC for fiscal year 2018-19. In prior year, MFNERC had a surplus of $585,883 and this year MFNERC expended this surplus which caused the deficit. GEORGE MERASTY B.Comm. (Hons.), CA, CPA, CAFM The management letter from MNP LLP, MFNERC’s auditing firm, made no significant Director of Finance suggestions for operational or procedural changes and they issued an “unqualified” opinion on the March 31, 2019 MFNERC Financial Statements, which represents the highest standard for a financial audit. MFNERC recorded $71,049,945 from Indigenous Services Canada (ISC) and $6,538,629 from First Nation and Inuit Health and $1,648,079 in other fundings sources. The net deferred revenue to next year was $6,401,333. MFNERC’s success in 2018-19 demonstrated the strength and importance of sound management execution and the value of financial discipline. Overall, Finance ensured that all requirements of a project’s Contribution Agreement were being compiled with authorized expenditures as well as ensured that the deliverables were being adhered to. George Merasty B. Comm (Hons.), CA, CPA, CAFM Director of Finance FINANCE REPORT 2018-2019 5 FUNCTION Finance manages the implementation of the financial plans and policies of MFNERC. The financial strategic objectives of MFNERC is to manage the funds it has been entrusted with. Finance carries out this objective through cost effective management of MFNERC’s internal financial operations, efficient negotiations, monitoring of funded projects, and strategic management of the organization’s investments. Finance is responsible for three main areas: 1. Project funding • Financial review and monitoring of all budgets for all projects administered by MFNERC 2. Organizational finances and administration • General Expense (Salaries, insurance, office supplies, training etc…) • Investments • Financial Reporting • Financial advice to the Board of Directors 3. Monitoring • Processing cheque requisitions submitted by departmental managers • Assessment of budget to actual expenditures on a monthly basis • Analysis of project performance to ensure deliverables are adhered to 6 FINANCE REPORT 2018-2019 OBJECTIVES To fulfill all financial functions and execute its responsibilities, the Finance department has identified the following objectives and strategies: 1. Ensure the integrity, reliability and transparency of all the financial operations of MFNERC STRATEGY: To establish budgeting control and reporting systems, applied both to the internal and financial operations of all funded projects. Finance achieves the following objectives: • Assisting in the development of policies and budgets, and providing the necessary information and financial analysis required. • Control and monitor the operational budget that has been approved by the Board of Directors. • Assisting Management in discharging its responsibilities for Financial Reporting. • Implementing and maintaining the accounting system (Sage 300). • Ensuring the Reporting and Auditing procedures are carried out. • Administrating the investments on behalf of MFNERC. The Financial statements of MFNERC are prepared in accordance with General Accepted Accounting Principles, including the accounting recommendations for not-for-profit organizations in Canada. 2. Ensuring that funding expenditures are in accordance with the terms and conditions of all Contribution Agreements. STRATEGY: To conduct a financial assessment of the progress of funded projects in conjunction with departmental managers, ensuring project expenditures are measured against project work-plans, goals and objectives. 3. To ensure the integrity and reliability of data STRATEGY: Implementing and maintaining the accounting system (Sage 300) / HRMS EXPECTED RESULTS: • Ensuring that all requirements of a project’s Contribution Agreement are being compiled with authorized expenditures. • Refining the overall project as necessary to compile with the funding agreements. • Reducing a risk of unauthorized expenditures. • Ensuring that adequate resources continue to be available for the continuation of planned projects. FINANCE REPORT 2018-2019 7 MEET OUR TEAM MFNERC FINANCE OFFICE Swan Lake First Nation 120-200 Alpine Way Headingly, MB R4H 0B7 Phone: 1(204) 594-4267 Fax: 1(204) 831-1301 MFNERC FINANCE TEAM: • George Merasty B. Comm. (Hons.), CA, CPA, CAFM, Director of Finance • Sarah Cook B. Comm. (Hons.), CA, CPA, Assistant Director of Finance • Curtis Carriere, Senior Finance Assistant • Donna McCorrister, Accounts Receivable • Bryanna Kirkness, Travel Lead • Carla Cook, Travel P/T • Rhonda Hardisty, Accounts Payable Lead • Barbara Spence, Accounts Payable • Louise Lavallee, Accounts Payable • Shannon Laforte, Contracts Administration • Dianne Roulette, Purchase Orders • Heather Sinclair, Payroll Lead • Nichole Brisebois, Payroll • Candace Bland, Payroll • Ashley Carriere, Payroll and Benefits • Terrence Shannacappo, Benefits Administration • Glen Stevenson, Pension & GL • Melissa Soldier, Travel Agent • Wayne Mason, Travel Agent P/T 8 FINANCE REPORT 2018-2019 STAFF BIOS Born and raised on the Flying Dust First Nation in northern Saskatchewan, George Merasty went on to become the Director of Finance for MFNERC as of 2007. In the past, he also served as the Director of Finance for the Assembly of Manitoba Chiefs from 1997 to 2007. After graduating from the University of Manitoba with a Bachelor of Commerce Honours degree with a major in Accounting, he obtained his Chartered Accountant designation in 2000. George has been married for 24 years to his wife, Marla, and they have two adult children—Kaeden and Brenden. GEORGE MERASTY B.Comm. (Hons.), CA, CPA, CAFM Director of Finance Sarah Cook is the Assistant Director of Finance at MFNERC. She graduated from the University of Manitoba with a Bachelor of Commerce Honours degree with majors in Accounting and Aboriginal Business Studies. In 2011, she obtained her Chartered Accountant designation. As a Chartered Accountant, Sarah has worked with a variety of charitable, non-profit and First Nation organizations to meet their reporting requirements. In the past, she has served as a Staff Accountant and Audit Manager at BDO Canada LLP and as a Finance Officer at Indigenous Management Group. Sarah is a proud member of the Misipawistik Cree Nation. She enjoys giving back to her community and has been a member of United Way Winnipeg’s Council for Indigenous Relations since 2015. SARAH COOK B.Comm. (Hons.), CA, CPA Assistant Director of Finance FINANCE REPORT 2018-2019 9 Dianne Roulette, Ojibway is a member of the Long Plain First Nation and has worked at MFNERC for seven years in total. She has worked in the following organizations; Royal Bank of Canada, Federation of Saskatchewan Indian Nations, Peace Hills Trust, Assembly of Manitoba Chiefs, Dakota Ojibway Tribal Council Housing Authority and also in her community of Long Plain First Nation. Dianne received a Business Administration Diploma from the University of Saskatchewan, Legal Secretarial Diploma from Robertson Career College and graduated from the Canadian College of Funeral Services as a Funeral Director/Embalmer. Dianne is a single parent and enjoys living her life to the fullest with her three wonderful children; Kyra (Masters of Social Work), Quinn (High School Graduate), and Ellery (High School), and she is also a proud grandmother of her only grandchild, Paige. DIANNE ROULETTE Purchase Orders Curtis Carriere has worked in Finance at MFNERC since 2005, where he has occupied a variety of roles within the department—Accounts Payable, Receivable, Bank Reconciliations, and the General Ledger. He is currently working within the Manitoba First Nations School System (MFNSS). Curtis was born in raised in Winnipeg