pride toronto financials 2009

8/7/2019 Pride Toronto Financials 2009

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LESBIAN, GAY, BISEXUAL, TRANSSEXUAL

AND TRANSGENDER PRIDE TORONTO

(operating as Pride Toronto)

Financial Statements

Year ended July 31,2009

Adams & Miles LLP

Chartered Accounta


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PRIDE TORONTO

Index to Financial Statements

July 31, 2009

PAGE

AUDITORS' REPORT.................................................................................................. 1

STATEMENTOF FINANCIALPOSiTION.... 2

STATEMENTOF CHANGESIN NET ASSETS................................................................. 3

STATEMENTOF OPERATIONS...... 4

STATEMENTOF CASH FLOWS................................................................................... 5

NOTESTO FINANCIALSTATEMENTS........................................................................... 6 - 9

Adams & Miles LLP

Chartered Accounta


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ADAMS & MILES LLPChartered Accountants

AUDITORS' REPORT

To the Members of

Pride Toronto

501-2550 Victoria Park Ave.

Toronto, ON M2J 5A9

Tel 416502.2201

Fax 416502.2210

200- 195County Court Blvd.

Brampton, ON L6W 4P7

Tel 905 459.5605

Fax 905 459.2893

We have audited the statement of financial position of Pride Toronto as at

July 31, 2009 and the statements of changes in net assets, operations and

cash flows for the year then ended. These financial statements are the

responsibility of the Organization's management. Our responsibility is to

express an opinion on these financial statements based on our audit.

Except as noted in the following paragraph, 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 not-for-profit organizations, the Organization derives

revenue from donations and fundraising. In addition, the Organization derives

revenue from beverage sales. The completeness of this revenue is not

susceptible to satisfactory audit verification. Accordingly, verification of this

revenue was limited to the amounts recorded in the records of the

Organization and we were not able to determine whether any adjustmentsmight be necessary to donation and fundraising revenue, beverage sales,

excess of revenue over expenditures, 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 donation revenue, fund raising revenue and

beverage sales referred to above, these financial statements present fairly, in

all material respects, the financial position of the Organization as at

July 31, 2009 and the results of its operations and its cash flows

for the year then ended in accordance with Canadian generally accepted

accounting principles.

)f. d a m s e : l :M ile s L L (J J

Chartered Accountants

Licensed Public Accountants

Toronto, Canada

October 6, 2009

www.adamsmiles.com

An independent firm associated

with AGN International Ltd.
http://www.adamsmiles.com/http://www.adamsmiles.com/


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PRIDE TORONTO

Statement of Financial Position

July 31, 2009

2009 2008

(Note 9)

Assets

Current

Cash and cash equivalents $ 219,297 $ 294,764

Accounts receivable 452,988 346,319

Inventory 28,266

Prepaid expenditures 28,503 20,774

729,054 661,857

Capital assets (Note 3) 27,198 28,493

756,252 690,350

liabilities

Current

Accounts payable and accrued 433,845 229,338

Net assets $ 322,407 $ 461,012

Net Assets Represented by

Unrestricted $ 295,209 $ 132,519Invested in capital assets 27,198 28,493Stabilization fund 250,000Insurance reserve 50,000

$ 322,407 $ 461,012

Approved on behalf of the Board:

Director

Director

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PRIDE TORONTO

Statement of Changes in Net Assets

Year ended July 31, 2009

Invested in Stabilization Insurance Total Total

Unrestricted capital assets fund reserve 2009 2008

(Note 9)

Balance, beginning of year $ 132,519 $ 28,493 $ 250,000 $ 50,000 $ 461,012 $ 419,040

Excess of revenue over expenditures

(expenditures over revenue) (130,736) (7,869) - - (138,605) 41,972

Interfund transfers 293,426 6,574 (250,000) (50,000)

Balance, end of year $ 295,209 $ 27,198 $ - $ - $ 322,407 $ 461,012

3Adams & Miles LL

Chartered Accoun


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PRIDE TORONTO

Statement of Operations


2009 2008

(Note 9)

Revenue

Sponsorship $ 1,225,044 $ 647,675Grants (Note 6) 971,800 638,914Beverage sales 337,611 334,661Permits and fees 238,523 191,316Donations and fundraising 184,359 184,350Media and guide advertising sales 56,138 73,014Interest and other 6,037 6,867

3,019,512 2,076,797

Expenditures

Media and promotion 997,788 364,361Festival infrastructure 485,789 406,909Salaries and benefits 423,139 281,427Entertainment and events 335,027 300,586Office and administration 265,917 119,343Beverage cost of sales 226,321 208,963Community outreach, fundraising and bursaries 137,346 119,646Occupancy 82,674 53,162

Communications and security 67,695 78,401Insurance 65,124 49,008Volunteer costs 63,428 49,340Amortization 7,869 3,679

3,158,117 2,034,825

Excess of revenue over expenditures (expenditures overrevenue) $ (138,605) $ 41,972

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PRIDE TORONTO

Statement of Cash Flows


2009 2008

(Note 9)

Cash provided by (used in)

Operating activities

Excess of revenue over expenditures (expenditures over

revenue) $ (138,605) $ 41,972Amortization 7,869 3,679

(130,736) 45,651Changes in

Accounts receivable (106,669) (186,579)Inventory (28,266)Prepaid expenditures (7,729) (12,904)Accounts payable and accrued 204,507 58,475

(68,893) (95,357)

Investing activities

Purchase of capital assets (6,574) (21,953)

Change in cash position (75,467) (117,310)

Cash and cash equivalents, beginning of year 294,764 412,074

Cash and cash equivalents, end of year $ 219,297 $ 294,764

Cash and cash equivalents consist of:

Cash $ 135,698 $ 241,910Short-term investments 53,518 52,854Term deposits 30,081

$ 219,297 $ 294,764

Other informationInterest received $ 898 $ 6,399

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Notes to Financial Statements


1. The Organization

Pride Toronto was incorporated as a not-for-profit organization without share capital

under the laws of Ontario to promote the LGBTTIQQ2S (Lesbian, Gay, Bisexual,

Transsexual, Transgender, Intersex, Queer/Questioning, 2Spirited) communities. The

Organization is exempt from income tax in Canada as a not-for-profit organization under

Section 149(1)(L) of the Income Tax Act (Canada).

2. Summary of significant accounting policies

The preparation of financial statements in accordance with Canadian generally accepted

accounting principles requires management to make estimates and assumptions that

affect the reporting amount of assets and liabilities and disclosure of contingent assets

and liabilities at the date of the financial statements and the reported amount of revenue

and expenditures during the reported year. These estimates are reviewed periodically,

and, as adjustments become necessary, they are reported in the result of operations in

the year in which they become known.

Accrual basis of accounting

Revenue and expenditures are recorded on the accrual basis of accounting under which

they are recorded in the financial statements in the year they are earned or incurred

respectively, whether or not such transactions have been settled by the receipt or

payment of money.

Fund accounting

The accounts of the Organization are maintained in accordance with the principles of

fund accounting and accordingly the resources are classified for accounting and

reporting purposes into funds determined by the purpose for which those funds are held.The types of funds held are:

Operating Fund - This fund includes unrestricted revenue sources received from various

federal, provincial and municipal level grants, festival revenue, fundraising revenue andday-to-day expenditures.

Capital Assets Fund - This fund reports the net assets of the Organization invested inthe office equipment, computers, furniture and fixtures.

Insurance Reserve Fund - This fund was established to self-insure claims up to theamount of the deductible of the Organization's insurance policy.

Stabilization Fund - This fund was established to be used in case of financial demandsthat arise as a result of funding volatility.

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2. Summary of significant accounting policies - cont'd

Inventory

Inventory, consisting of various merchandise, is valued at the lower of cost and net

realizable value. Cost is determined using the first-in, first-out method.

Capital assets

Capital assets are recorded at cost and are being amortized over their estimated usefullives on the following basis. The annual amortization rates and methods are as follows:

Equipment

Furniture and fixturesComputer equipment

20% declining balance

20% declining balance20% declining balance

Capital assets individually in excess of $1,000 are capitalized in the statements.

Revenue recognition

Revenue is recognized when received or receivable if the amount to be received can bereasonably estimated and collection is reasonably assured.

The Organization follows the deferral method of revenue recognition. Under the deferral

method, grants received in the year for expenditures to be incurred in the following yearare recorded as deferred revenue.

Non-monetary exchanges of goods and services are recorded at fair market ofconsideration received, as agreed-upon by the Organization and its vendors.

3 . Capital assets

2009 2008(Note 9)

Accumulated Net Book Net BookCost Amortization Value Value

Equipment $ 23,218 $ 7,860 $ 15,358 $ 16,304Furniture and fixtures 7,719 1,867 5,852 3,634Computer eguipment 14,825 8,837 5,988 8,555

$ 45,762 $ 18,564 $ 27,198 $ 28,493

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4. Credit facility

The Organization has available a demand revolving line of credit in the amount of

$250,000 bearing interest at the bank prime rate plus 2.50%. This credit facility is

secured by a general security agreement. No amount is outstanding on the line of creditas at year end.

5. Contingent liabilities

The Organization is subject to a dispute with a supplier regarding contract fees.

Management has made a provision of $10,000 for settlement in the current year. In theopinion of the management, it is expected that the ultimate resolution of this dispute will

not have a material effect on the Organization's position.

6. Grants

Grants recognized in the year were as follows:

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2009 2008

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Chartered Accounta


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7. Commitments

The Organization has entered into a lease agreement to rent its office space until

February 28, 2012 and a lease for an office photocopier. Minimum lease payments in

the next five years under the terms of the leases are as follows:

2010

20112012

2013

2014

$ 89,876

125,126

134,126

139,782142,500

The Organization has entered into a contract to designate CTV and CP24 as exclusive

broadcast media sponsors of the Organization for 2010 and 2011 Pride Toronto events,

in return for media support to be provided to the Organization.

8. Financial instruments

The Organization's financial instruments consist of cash, accounts receivable and

accounts payable and accrued. It is management's opinion that the Organization is not

exposed to significant interest, currency or credit risks arising from these financial

instruments. The fair value of these financial instruments approximates their carrying

values, unless otherwise noted.

9. Comparative amounts

The comparative amounts were examined by another firm of public accountants andwere subject to an audit report dated October 7, 2008.

Certain comparative amounts have been reclassified to conform to the current year'sfinancial statement presentation.

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pride toronto financials 2009

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