Audit-2009-CFFF e
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Audit-2009-CFFF e

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F I N A N C I A L S T A T E M E N T SForCANADIAN FALLEN FIREFIGHTERS FOUNDATIONFor year endedDECEMBER 31, 2009Welch LLP  An Independent Member of BKR International Welch LLP AUDITORS' REPORTTo the members ofCANADIAN FALLEN FIREFIGHTERS FOUNDATIONWe have audited the statement of financial position of Canadian Fallen Firefighters Foundation as atDecember 31, 2009 and the statements of operations and changes in net assets and cash flows for theyear then ended. These financial statements are the responsibility of the Foundation's management. Ourresponsibility is to express an opinion on these financial statements based on our audit.We conducted our audit in accordance with Canadian generally accepted auditing standards. Thosestandards require that we plan and perform an audit to obtain reasonable assurance whether the financialstatements are free of material misstatement. An audit includes examining, on a test basis, evidencesupporting the amounts and disclosures in the financial statements. An audit also includes assessing theaccounting principles used and significant estimates made by management, as well as evaluating theoverall financial statement presentation.In common with many ...

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F I N A N C I A L S T A T E M E N T S
For
CANADIAN FALLEN FIREFIGHTERS FOUNDATION
For year ended
DECEMBER 31, 2009
WelchLLPAnIndependentMemberofBKRInternational
To the members of
AUDITORS' REPORT
CANADIAN FALLEN FIREFIGHTERS FOUNDATION
Welch LLP
We have audited the statement of financial position of Canadian Fallen Firefighters Foundation as at December 31, 2009 and the statements of operations and changes in net assets and cash flows for the year then ended. These financial statements are the responsibility of the Foundation's management. Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we plan and perform an audit to obtain reasonable assurance whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.
In common with many charitable organizations, the foundation derives revenues from the general public in the form of donations, the completeness of which is not susceptible to satisfactory audit verification. Accordingly, our verification of these revenues was limited to the amounts recorded in the records of the foundation and we were not able to determine whether any adjustments might be necessary to donation revenues, net revenues, assets, liabilities and net assets.
In our opinion, except for the effect of adjustments, if any, which we might have determined to be necessary had we been able to satisfy ourselves concerning the completeness of the donations referred to in the preceding paragraph, these financial statements present fairly, in all material respects, the financial position of the Foundation as at December 31, 2009 and the results of its operations and changes in net assets and its cash flows for the year then ended in accordance with Canadian generally accepted accounting principles.
Chartered Accountants Licensed Public Accountants
Ottawa, Ontario March 24, 2010.
WelchLLPChartered Accountants 1200-151 Slater Street, Ottawa, ON K1P 5H3 T: 613 236 9191 F: 613 236 8258 W: www.welchllp.com An Independent Member of BKR International
CANADIAN FALLEN FIREFIGHTERS FOUNDATION
STATEMENT OF OPERATIONS AND CHANGES IN NET ASSETS
Revenues CBU fundraising from advertising Donations received  Receipted  Other United Way Sales of souvenirs CBU contributions for editing Interest earned
Expenses
LODD families expense Executive and director expenses Fundraising
R ENDED DECEMBER 31, 2009
Medallions and other promotional material Memorial development Rent Insurance Office and general Professional fees Interest and bank charges
Net revenues
Net assets, beginning of year
Net assets, end of year
(See accompanying notes)
$
2009
222,410
71,077 60,418 16,481 13,237 7,500 23,660 414,783
40,523 24,933 38,847 -85,035 3,054 34,594 9,743 6,168 10,474 13,186 78 266,635
148,148
927,705
$ 1,075,853
$
$
2008
311,274
14,541 28,796 -18,679 10,000 27,327 410,617
48,248 33,005 20,395 33,258 47,492 25,974 -10,713 3,783 7,231 15,419 88 245,606
165,011
762,694
927,705
WelchLLPAnIndependentMemberofBKRInternational
CANADIAN FALLEN FIREFIGHTERS FOUNDATION
STATEMENT OF CASH FLOWS
R ENDED DECEMBER 31, 2009
CASH FLOWS FROM OPERATING ACTIVITIES Net revenues
Adjustments for:
Inventories Prepaid expenses able and accrued liabilities Deferred contributions
CASH FLOWS FROM INVESTING ACTIVITIES Purchase of investments
INCREASE (DECREASE) IN CASH
CASH, BEGINNING OF YEAR
CASH, END OF YEAR
(See accompanying notes)
$
$
2009
148,148
(15,150) 8,120 (1,857) 14,791 10,000 164,052
(26,997)
137,055
83,086
220,141
$
$
2008
165,011
3,893 (687) (1,984) 5,559 10,000 181,792
(196,045)
(14,253)
97,339
83,086
WelchLLP AnIndependentMemberofBKRInternational
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2.
3.
CANADIAN FALLEN FIREFIGHTERS FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS
NATURE OF OPERATIONS
YEAR ENDED DECEMBER 31, 2009
The Foundation is a charity registered with Canada Revenue Agency and incorporated under the provisions ofThe Canada Corporations Act. The Foundation's principal purpose is to receive and maintain a fund for the establishment and maintenance of the Canadian Fallen Firefighters' Memorial; to plan, direct and manage an annual Fallen Firefighters Memorial Service; to provide financial assistance to families of fallen firefighters for transportation and lodging during the annual memorial service, to provide additional financial assistance to the families of fallen firefighters when warranted, and to otherwise recognize firefighters who die in the line of duty.
The Foundation maintains its head office in Ottawa, Ontario.
SIGNIFICANT ACCOUNTING POLICIES
Revenue recognition
Revenue from advertising contracts is recognized over the term of the contract. Revenue from donations is recognized upon receipt and revenue from investments is recognized as earned. The Foundation follows the deferral method of accounting for contributions. Restricted contributions are recognized as revenue in the year in which related expenses are incurred. Unrestricted contributions are recognized as revenue when received or receivable if the amount to be received can be reasonably estimated and collectibility is reasonably assured.
Revenue from souvenir sales are recognized once the goods are sold.
Investments
The Foundation classifies its investments as held to maturity and records them at amortized cost using the effective interest method. The purchase and sale of investments are accounted for using settlement date accounting. Transaction costs associated with the acquisition of investments and investment management fees are expensed as incurred.
Inventories
Inventories are valued at lower of cost and net realizable value with cost determined substantially on a first-in, first-out basis.
Use of estimates
The preparation of financial statements in conformity with Canadian generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates.
NEW ACCOUNTING STANDARDS
In December, 2008, the CICA decided to defer the requirement for not-for-profit organizations to adopt Handbook Sections 3862 (Financial Instruments - Disclosures) and 3863 (Financial Instruments -Presentation) and to permit these organizations to continue and apply Section 3861 (Financial Instruments - Disclosure and Presentation) instead. Since new financial instrument standards for not-for-profit organizations may be forthcoming, the organization has decided to continue to apply Section 3861 and has not adopted Sections 3862 and 3863.
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WelchLLPAnIndependentMemberofBKRInternational
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WelchLLPAnIndependentMemberofBKRInternational
FINANCIAL INSTRUMENTS
-
-
$
131,923
$ 826,745
Investments are managed by the Board in consultation with the Foundation’s financial advisors. The Foundation limits its investments to guaranteed investment certificates to ensure the capital is preserved.
Interest rate risk
The Foundation manages the interest rate risk exposure of its investments by using a laddered portfolio with varying terms to maturity. The laddered structure of maturities helps to enhance the average portfolio yield while reducing the sensitivity of the portfolio to the impact of interest rate fluctuations.
The Foundation's financial instruments consist of cash, guaranteed investment certificates, accounts receivable, accounts payable and accrued liabilities. Unless otherwise noted, it is management's opinion that the Foundation is not exposed to significant interest, currency or credit risks arising from these instruments.
-
-
-
133,365
141,864
220,110
208,000
140,000
134,035
133,575
Toronto Dominion Bank - 3.10%, due January 20, 2009 Toronto Dominion Bank - 3.10%, due February 19, 2009 TD Canada Trust - 3.20%, due March 16, 2009 TD Mortgage Corporation - 4.25%, due August 18, 2011 Toronto Dominion Bank - 2.70% due May 20, 2009 Toronto Dominion Bank - 1.90%, due July 13, 2009 The Canada Trust Company - 0.62%, due January 15, 2010 Toronto Dominion Bank - 1.75% due October 2011 Toronto Dominion Bank - 0.50% due March 10, 2010 Toronto Dominion Bank - 0.58% due April 13, 2010
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$ 847,860
$ 866,890
230,216
-
142,491
220,274
-
142,237
208,000
. . ./3
The fair values of cash, accounts receivable, accounts payable and accrued liabilities approximate their carrying values due to their short term-nature. The fair value of guaranteed investment certificates is disclosed in note 5.
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CANADIAN FALLEN FIREFIGHTERS FOUNDATION NOTES TO THE FINANCIAL STATEMENTS - Cont'd. R ENDED DECEMBER 31, 2009
126,822
139,874
$ 110,000
110,000
2008 Carrying Fair Value Value
111,682
$ 111,682
$ 853,742
129,157
139,776
230,154
Carrying Value
2009 Fair Value
Fair market value
Guaranteed investments consist of the following:
5.
4.
$
Guaranteed investment certificates are stated at cost. The cost and accrued interest income approximate fair value. Accrued interest income of $9,982 (2008 - $8,356) is included in accounts receivable.
GUARANTEED INVESTMENT CERTIFICATES
6.
7.
8.
9.
10.
11.
INVENTORY
CANADIAN FALLEN FIREFIGHTERS FOUNDATION NOTES TO THE FINANCIAL STATEMENTS - Cont'd. R ENDED DECEMBER 31, 2009
The total amount of inventory recognized as an expense for the current year is $53,441 (2008 - $36,169).
DEFERRED CONTRIBUTIONS
During the year an additional $10,000 was received for the purposes of establishing a scholarship fund. The total received to date is $20,000. None of this amount was expensed in the year.
VOLUNTEER HOURS
The work of the Foundation is dependent upon the voluntary services of its directors, management and members. These services are not normally purchased by the Foundation and because of the difficulty of determining their fair value, the value of these donated service are not recognized in the financial statements.
ECONOMIC DEPENDENCE
During the year, revenue of the Foundation derived from CBU Publications represented 54% (2008 - 74%) of the total.
PLEDGE COMMITMENT
The Canadian Association of Fire Chiefs (CAFC) has committed to pledging Canadian Fallen Firefighters Foundation (CFFF) $5,000 per month for the erection of a monument to honour the memory of Canada's fallen firefighters, beginning in January 2007. The funds will be recorded once they are received by CFFF, no amount has been recorded in this year's financial statements.
CAPITAL DISCLOSURES
The Foundation defines capital as its unrestricted net assets and its externally restricted contributions which are classified as deferred contributions in the statement of financial position. The Foundation's objectives with respect to managing capital are to comply with externally imposed restrictions and hold sufficient unrestricted net assets to fund ongoing operations. The Foundation monitors its capital requirements and objectives through its budgeting process, its financial statement review process and reviews of the terms and conditions contained in its contribution agreements. The external restrictions imposed on these contributions are disclosed in note 7. Management believes that the Foundation has adhered to all externally imposed restrictions.
WelchLLPAnIndependentMemberofBKRInternational