T H E ONTARIO GUILD OF ENGLISH HANDBELL RINGERS
Financial Statements
Year Ended December 31,2014
(Unaudited)
THE ONTARIO GUILD OF ENGLISH HANDBELL RINGERS
Index to Financial Statements
Year Ended December 31,2014
(Unaudited)
Page
REVIEW E N G A G E M E N T REPORT
1
FINANCIAL STATEMENTS
Statement of Financial Position
2
Statement of Changes in Net Assets
3
Statement of Revenue and Expenditures
4
Statement o f Cash Flows
5
Notes to Financial Statements
6-10
P. 5 1 9 - 4 3 2 - 5 5 3 4
F: 5 1 9 - 4 3 2 - 6 5 4 4
.iOO-S.S.'S C O L I i O K N I
CHARTERED
ACCOUNTANTS
LONDON, ONTARIO
A d d i n g value. F i n d i n g balance.
SI.
N 6 B 2V
www.nptca.com
REVIEW ENGAGEMENT REPORT
To the Members of The Ontario Guild o f English Handbell Ringers
We have reviewed the statement o f financial position o f The Ontario Guild o f English Handbell Ringers as at
December 3 1 , 2014 and the statements of revenue and expenditures, changes in net assets and cash flows for the
year then ended. Our review was made in accordance with Canadian generally accepted standards for review
engagements and, accordingly, consisted primarily of enquiry, analytical procedures and discussion related to
information supplied to us by the organization.
A review does not constitute an audit and, consequently, we do not express an audit opinion on these financial
statements.
Based on our review, nothing has come to our attention that causes us to believe that these financial statements are
not, in all material respects, in accordance with Canadian accounting standards for not-for-profit organizations.
London, Canada
April 20, 2015
NPT L L P
Chartered Accountants
Licensed Public Accountants
Noilh
NPT LLP
Amerii
THE ONTARIO GUILD OF ENGLISH HANDBELL RINGERS
Statement of Financial Position
December 31, 2014
(Unaudited)
2014
2013
ASSETS
CURRENT
Cash
Short term investments (Note 4)
Accounts receivable
HST rebate receivable
Prepaid festival and other expenses
$
46,442
10,701
7,805
15,802
$ 52,911
10,620
525
6,142
286
$
80/750
$ 70,484
$
2,800
21,811
$
L I A B I L I T I E S A N D N E T ASSETS
CURRENT
Accounts payable and accrued liabilities
Deferred revenue (Note 5)
NET ASSETS
Unrestricted
Internally restricted - Bursary Fund
$
See accompanying notes to the financial statements.
2
2,761
3,211
24,611
5,972
35,044
21,095
43,498
21,014
56,139
64,512
80,750
$ 70,484
THE ONTARIO GUILD OF ENGLISH HANDBELL RINGERS
Statement of Changes in Net Assets
Year Ended December 31,2014
(Unaudited)
Internally
restricted Bursary Fund
Unrestricted
N E T ASSETS - B E G I N N I N G O F Y E A R
$
Excess (deficiency) of revenue over
expenditures (Note 6)
N E T ASSETS - E N D O F Y E A R
43,498
$
(8,454)
$
35,044
See accompanying notes to the financial statements.
3
21,014
2014
$
81
$
21,095
64,512
2013
$
(8,373)
$
56,139
63,925
587
$
64,512
THE ONTARIO GUILD OF ENGLISH HANDBELL RINGERS
Statement of Revenue and Expenditures
Year Ended December 31, 2014
(Unaudited)
2014
REVENUE
Membership dues (Note 5)
Workshop (Note 7)
Interest (Note 6)
Newsletter
Festival
$
2013
5,844
1,800
81
25
$
-
EXPENDITURES
Professional fees
Office
Insurance
Workshop (Note 7)
Travel
Meals and entertainment
Interest and bank charges
Telephone
Newsletter
Festival
Bursaries (Note 6)
Handbell Guilds o f Canada dues
7,750
103,406
7,917
2,385
2,353
1,451
1,251
392
247
88
39
5,823
4,266
2,252
1,824
3,784
825
1,001
499
762
78,900
2,563
320
16,123
EXCESS ( D E F I C I E N C Y ) O F R E V E N U E O V E R E X P E N D I T U R E S
FOR T H E Y E A R
See accompanying notes to the f i n a n c i a l statements.
4
$
4,156
1,740
95
140
97,275
(8,373)
102,819
$
587
THE ONTARIO GUILD OF ENGLISH HANDBELL RINGERS
Statement of Cash Flows
Year Ended December 31,2014
(Unaudited)
2014
OPERATING ACTIVITIES
Excess (deficiency) of revenue over expenditures for the year
$
Changes in non-cash working capital:
Accounts receivable
HST rebate receivable
Prepaid festival and other expenses
Accounts payable and accrued liabilities
Deferred revenue
(8,373)
2013
$
587
525
(1,663)
(15,516)
39
18,600
40
2,380
8,266
' (863)
(19,439)
1,985
(9,616)
(6,388)
(9,029)
(81)
(93)
DECREASE I N CASH F L O W
(6,469)
(9,122)
Cash - beginning of year
52,911
62,033
46,442
$ 52,911
Cash flow used by operating activities
INVESTING ACTIVITY
Increase in short term investments
$
CASH - END OF YEAR
See accompanying notes to the financial statements.
5
THE ONTARIO GUILD OF ENGLISH HANDBELL RINGERS
Notes to Financial Statements
Year Ended December 31, 2014
(Unaudited)
1.
PURPOSE OF T H E O R G A N I Z A T I O N
The Ontario Guild of English Handbell Ringers (the "Guild"), a corporation without share capital, is a not-forprofit organization whose purpose is to promote handbell ringing in Ontario. The Guild's objectives are to
bring handbell ringers in contact with each other for the purpose of exchanging ideas, to assist newly-formed
choirs, to provide a forum for discussion and the practical advancement o f the art o f handbell ringing.
The Guild is a registered charity under the Income Tax Act (the "Act"). As such, it is exempt from income
taxes and is allowed to issue donation receipts for income tax purposes. In order to maintain its status as a
charity, the Guild must continue to meet certain requirements within the Act. I n the opinion o f management,
these requirements have been met.
2.
BASIS OF P R E S E N T A T I O N
The financial statements were prepared in accordance with Canadian accounting standards for not-for-profit
organizations (ASNPO). ASNPO are part of Canadian generally accepted accounting principles (GAAP).
3.
S U M M A R Y OF S I G N I F I C A N T A C C O U N T I N G POLICIES
Revenue recognition
The Guild follows the deferral method o f accounting for contributions. Restricted contributions are
recognized as revenue in the year in which the related expenses are incurred. Unrestricted contributions are
recognized as revenue when received or receivable i f the amount to be received can be reasonably estimated
and collection is reasonably assured.
Festival and workshop revenue is recognized when the event occurs. Membership dues are recognized in the
year to which they relate. Newsletter revenue is recognized in the period published. Interest is recognized as
earned.
Cash
Cash consists of cash on hand and on deposit, less cheques issued and outstanding at the reporting date.
Financial instruments policy
Financial instruments are recorded at fair value when acquired or issued. In subsequent periods, financial
assets with actively traded markets are reported at fair value, with any unrealized gains and losses reported in
income. A l l other financial instruments are reported at amortized cost and tested for impairment at each
reporting date. Transaction costs on the acquisition, sale or issue o f financial instruments are expensed when
incurred.
(continues)
6
THE ONTARIO GUILD OF ENGLISH HANDBELL RINGERS
Notes to Financial Statements
Year Ended December 31, 2014
(Unaudited)
3.
S U M M A R Y OF S I G N I F I C A N T A C C O U N T I N G POLICIES (continued)
Capital assets
Capital assets are expensed when purchased. As such, no capital assets are recorded on the statement o f
financial position. I f the policy was to capitalize and amortize capital assets, the major categories of capital
assets would be instruments, computer hardware and computer software.
During the year, capital asset purchases o f $ N I L (2013 - $NIL) were expensed in these financial statements.
Measurement uncertainty
The preparation o f financial statements in conformity with Canadian ASPE requires management to make
estimates and assumptions that affect the reported amount o f assets and liabilities, disclosure o f contingent
assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses
during the period. Such estimates are periodically reviewed and any adjustments necessary are reported in
income in the period in which they become known. Actual results could differ from these estimates.
Contributed services
Volunteers contribute many hours annually to assist the Guild in carrying out its service delivery activities.
Because o f the difficulty of determining their fair value, contributed services are not recognized in these
financial statements.
4.
SHORT T E R M I N V E S T M E N T S
Short term investments consist o f the following:
2014
0.8% Guaranteed Investment Certificate maturing June 2015
(2013 - 0.8% maturing June 2014)
Accrued interest
7
2013
$
10,656
45
$
10,572
48
$
10,701
$
10,620
THE ONTARIO GUILD OF ENGLISH HANDBELL RINGERS
Notes to Financial Statements
Year Ended December 31, 2014
(Unaudited)
5.
DEFERRED R E V E N U E
The Guild collects dues annually from its members to cover the membership year ending September of each
year. The portion of dues collected before year end that cover the period from January to September are
deferred and recognized as revenue in the following year. The Guild has also deferred festival registration
revenue collected during the year as it relates to a festival to be held after year end. Changes in the deferred
revenue balance for the year are as follows:
2014
2013
Balance, beginning o f year
Festival registration revenue received in the year
Less festival registration revenue recognized in the year
Membership dues received in the year
Less membership dues recognized as revenue in the year
$
3,211
12,800
Balance, end of year
$ 21,811
11,644
(5,844)
$ 22,650
75,977
(95,527)
4,267
(4,156)
$
3,211
THE ONTARIO GUILD O F ENGLISH HANDBELL RINGERS
Notes to Financial Statements
Year Ended December 31, 2014
(Unaudited)
6.
BURSARY FUND
The Bursary Fund represents funds which have been internally restricted by the Board o f Directors to assist
members to attend biennial festivals by providing funds to help cover associated registration and
accommodation costs. A l l interest earned on internally restricted funds is revenue o f the Bursary Fund.
The excess o f revenue over expenditures for the year in the Bursary Fund is calculated as follows:
2014
Interest
Bursaries paid
7.
2013
$
81
$
95
(2,563)
$
81
$
(2,468)
WORKSHOP R E V E N U E A N D EXPENDITURES
2014
REVENUE
Fees
$
EXPENDITURES
Meals
Accommodation
Honoraria
Mileage
Printing, postage and supplies
EXCESS ( D E F I C I E N C Y ) OF R E V E N U E OVER EXPENDITURES
9
$
1,800
2013
$
1,740
851
350
250
592
105
460
381
286
1,451
1,824
349
$
(84)
THE ONTARIO GUILD OF ENGLISH HANDBELL RINGERS
Notes to Financial Statements
Year Ended December 31, 2014
(Unaudited)
8.
FINANCIAL INSTRUMENTS
The Guild is exposed to various risks through its financial instruments. The following analysis provides
information about the Guild's risk exposure and concentration. There has been no significant change in the
nature or concentration of the risk exposure from the prior period, unless otherwise stated.
Credit risk
Credit risk is the risk that one party to a financial instrument w i l l cause a financial loss for the other party by
failing to discharge an obligation. The Guild is exposed to credit risk from the possibility o f non-payment o f
dues by its members and the possibility o f non-payment by the financial institutions where the Guild's short
term investments are held. This risk is mitigated by collecting dues at the beginning o f the membership year
and by dealing only with credit worthy institutions and maximizing protection under the CDIC.
Liquidity risk
Liquidity risk is the risk that an entity w i l l encounter difficulty in meeting obligations associated with financial
liabilities. The Guild manages its liquidity risk by forecasting its cash needs on a regular basis and seeking
additional information based on those forecasts. The Guild maintains sufficient funds in cash to protect
against any unforeseen obligations.
Market risk
Market risk is the risk that the fair value or future cash flows of a financial instrument w i l l fluctuate because of
changes in market prices. Market risk comprises three types o f risk: currency risk, interest rate risk and other
price risk.
Currency risk
Currency risk is the risk to the Guild's operations that arise from fluctuations o f foreign exchange rates. The
Guild is not exposed to significant currency risk as it does not hold any financial instruments denominated in a
foreign currency.
Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument w i l l fluctuate
because of changes in market interest rates. The Guild's interest bearing assets consist of a Guaranteed
Investment Certificate (GIC) held at year end (see note 4). The Guild is not exposed to significant interest rate
risk since the rate o f interest on its GIC is fixed.
Other price risk
Other price risk is the risk that the fair value or future cash flows o f a financial instrument w i l l fluctuate
because o f changes i n market prices (other than those arising from interest rate risk or currency risk), whether
those changes are caused by factors specific to the individual financial instrument or its issuer, or factors
affecting all similar financial instruments traded in the market. In management's opinion, the Guild is not
exposed to significant other price risk.
10