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
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