2010 audited statements

8/2/2019 2010 Audited Statements

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2 0 1 0 A U D IT E D F I N A N C IA L S T A T E M E N T SJanuary 1 - December 31, 2010


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' - T i '- h P ' ..:iI1;!,.- S ' I-!t P \w . ctI e ' , .a I"aw gm ,.~U J.~Jl.0J 'e " ,FiDa .ue i : a l Statementsm~cembe:r 3 ,], 2 01 . 0

M i . c b a e . l G . G . & : I i n n . o c k C A


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FiBancia] Sf\fdemen~'sl )e;lcm'bl i :r 31~, 1 ] ) 1 0

Sta,rc:El'ment: Q f Financial. Peal tio~ . .. '. . . ,. , . ' . " '. ' . "' . . . . ' . ' '. , . ' . ' . . ' , . , 1 .

Statemerrt of Cas.tl E"low,s ... ,. , ., " .... , " . " ... " ... " . , .... , .. " . " ........ , .. , ... ,' .3:

Notes to the E'Lnancial Statem!l!llts ..... '.. ' '..... "'...... ' '.. ' ,4

Mich


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MUJI.ul9u~e9;r~m.Pinnu,1c.MCHARTE'R:ED ACCOUNTANT3!9' P~lima nn Street, Ittl roralr' Ontalli',l~ WG 7W:I'

]NDEPENOENT AUDITOR .'S R EPORT

I h av e au dite d t he accompanymg financial statemems ,o f th e Project, wh i ch comp ris e th es ta temen t o f' fl nanelal position as at December : 3 1 . 20] O. and th e ! l .1atement OfOPel4lJHODSand net assets: and. statem ent of c-ash flow s fo r (be year then ended, and a summary ofsignificantaccouef D:g policies andotber exp],anattoryj n fe rma tio n . ..M lIt'agenU1 :nt, ResptmfibilitJi flu th,e F i 1 . . t l l U : i R , ' StatelHentsManagem ent is respons lb ~e fo r th e p re para tio n an d lair p re se ntatio n 'o f ' these f inancialstarements m accordance with Can ad ian g en erally ac ce pte d a cc ou nting principles~andtal' saehinrem al control as management determines is ne cessary to enable th eprejlwanon of financial statements that are free from material misstatement wlt l, ether dueto, fraud or error.

A ~ulit()"8'.R''fspo'hfib,~li&My r e spons Lb i1 i ty~sto express an opinion ea these .financial stat'ements based. an myaudit. I conducted m y audit in accordance w Hh C anadl.Sin g en er ally a cc ep te d a ud itin gstand ard s. T hose stand ard s req uire th at [ c,om p~ ywith etaie al re qu irem ents and plan' andperform the audit to obtainreasoneble assurance about whether the flnaneial statementsarefreefrom material tnlsstaremen.A n audit involves performing procedures to nbtain audit evidence about the' am ounts and.disdosuresin the f m n r a n l c i a l s ta tements . .The procedures: selected de~endm il m e audit,orisjudgm ent, induding the assessm ent of the risks of m aierial m istatem en t o f th e fin an cials ta temen ts , w b e du ::lI :d ue to fr au d o r e rr or . II I mak ing those risk assessments, th e aud ito rcoesidersintenaalcuntml m.1evant to the entitis p re psratlon and fair presentation of th efinancial statements in. order to design audit p re ce du re s U l ata r!: appropri.a~e in tileCIT,CUl1l8llmCes.but not for m e purpose of expressing an opinicn on the effectiveness oftheentity's internal control. An au dit a lso inc lu de s, e va lu atin g th e ~pro'P'rja:tETI.ess ofaceouating po~c~es.used sndfhe reasonableness of ac'countingestimates made ' bymaoagemen :l . a s.wel l as ev alMUng th e overall presentaitioIJI of th e financial statements,I befieve th.aotthe audit evidence I have obtained is seffiei ent arid appropriate to provide a.basis for m, qualified audit opin ion . ..

4 1 e i 1 J (} J 1 J 9


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I l\ ID IEPENDENT AI ID ITOR"S REPORT T he Paradigm Shift Pl"O jea 2 01 1B ' ( ls is J o t ' ,q,fllllijied , o p i n i ( mIn commcn with many D o u ! ' " p r o f i t org;a1lizat~oJUl,[h ,e P ro je ct derives incom e fr-omdon atio ns , th e compl,eteness 0 ' which is n.ot sUb,"Ceptible 10 satisfactory audit verification.Accomi,ngly. my verification o f in come waslimited to the an.l !CWJits recorded inthe recerdaof the Project and I w as not able to, detemtine wheth er ,my a dju stm en ts might be nece ssaryto the donations, excess of revenue over expenses and net assets,Q , lt r J .' ii fi e .d , 0 ,1 , ,1 0 , 1 1In my ,o pin io ll. e xc ep t fo r th e e ffec ts of the m atter descrtbe 'in th e B asis for qu al i t i e dopinion paragraph . the ' f inancial. statements present fairly. in all m aterial respects thefinancial! position, of the Prnj eat a 'S at D ecem ber 3 ,1 , 2 0l 0 and its finaneial perfbrm ancean d its, cash flow s for the year then ended inaccordance wi th Canadiangeneral lysecepred acoowl~mngprinciples.

NUch: i I :eSIG . G . P in no c:k ,; I C , ACha'rtered Accountant:,Aurora ., On t i li 'l it oOctober 30~ :2011

21Page MIQllll .~1 [l P' u nQ,kCA.CJ!'A.M BA. ,BSo


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S,ta:t,emen.t 'of .Financial PloslitiooD , e e e m b e I l ' :U , 2 C U O

ASS:ETS: :CII!JRI:E,Nl ' :Ca sh a ~ ndc as h ElqlJ ivaih:mts

P r e p C i l !Y m e n tsT I C J i t a ~NONICURRENT:'

Ta,talll"olta. ,Ass'sts

UAB!UTIES:ICURRENT~

Accoltj,nts piClilyab le a r:ld a ccrue d Il,a b i,llrtie sDefenea reven U~ contrU:uJtlonsTotal LciabUi.tij 'e-sNET ASS,ETS,:

N,et Assets, unrestrtctedTOltalTaltal Ualbmties II Net Assets

Approved bY:~ " """".""" ""rO n bsha If of theH 30 ',ar . d

A. - '-.- '-'d b ~. ~ ~VuA. .prp'r,ove.. I YII I II1I1I1I II II -. r r I ll lI1I I1111! l ! !i !i Ii il i l! il ii ij ' i I! !i !I@il i io . .. , Ij Il i !i !j f i i1 0 n be ba If of the Boa rd

See. accompc.nyl..ng notes

Michae G_ G., Pinn.ocJ~ C~. 1

, c t '' i i i f . " 1

5,3108 2,0413,83:5,6911, 2.,041

4 3:/69'4 1,3553ES9'4 lf3559r3:B:S 3,39,6,

1,0'153,.405

300300

4 , .9 e U ; i


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The P,aradigm. Shift ProjectS,fa,tement01Opf.rations and et A s ' 5 i i e t s ,ID \e~eDbe l' 3 ,1 .20UJ

20 '09$ $

2

R E :V 'E N I IU IEFundra i.si1Jil,galcti vit]s,~::L l a . 5 S . : D'I rect , acU vfr th e s cos tNet FlIlf'u::lralisingGrantDonat ions,Other

2~,412"'1 "'~';j'!Jl ,,IJ 4,249(582,)3,661,,241,

1,49'7''9;5:225:0'7'

19,,528 2 4

EXP EN S:EAd m in ls :tra tl o nEd ucat Ion ~nllt iartTv,eAmo ,r ti, za j't l e nBank cherqesInsuranceU eenses &. pe r m l t s :O ffic e: s up pM es 'Profe~ssiQnaI feesProject productionSa::laries

1;0'23226,56'1343544

28729226115024013,0651lB4

16,0642,000

24763G I

1,3:24

3363,095

See accompany~nq notesMicha.el.G. G. Pinnock e l l ; .


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The F'ar,adigm,Shlft ProjectS "ta tem e:n t o f C 'a all EiiJWSDecl01nber ,31~2 0 1 0 1

Operatli'ngIExCESSof revenues ove r eX ,p ,e nd ;it ur es

Ch i) 'f 1 9 es 1 ' 1 1 1 1 n en-cash wo rileIng ca p ita II oomp ll I I1E !'nsArn orn aa tten of e a pfta,I,assetsAccounts receivable and prepaymentsACC(H.llli1lt~ payablE' and ,accrued liabmtiesDe r:e rr ed r e ve nue centrfbunons'

,2,760261424C2~77i)

561(36,3)71,5:3,,405,

IlfrllU'es;tlin,gPurc he se ,o f C a 1p lta l A s/s et: (62S)(625)

Increase' in Cash and cash e,ql'IJ~valents, 432,04:1ash and cash equivalents, be ,g inn lng of year 1,998

Cash and cash equivalents, .end o lf y e a rRE:PRESEINITE'D, D , V : : :

Calsh and cash equivalents

See 1iIccompaflyimi uo't.e:s.

z , , ! chae G. G. Pinnock IC]\


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No te s. to tile ' F'ma.ncial S,tate.menisD , ee co .b e'l" :n . 2 0] 0

T he P arad igm S hift P .r()j c~ .w orib mo raise g lobal a w a . r e J , l e 8 S on issues of sustain3b~edevelopment; socialande 'l lv 'i i\onment111 just iee by providing grassroots documentary needs a ss ea srne rn s, LOCH I non,-pfofitorganizatiom; in rbe global soutn are i 1 i ' l f e n tills assessment footage to' reach new d0'i10 1 fSand leverageintematio naID g ran e; . T hr ough th e peesonal narratives of these communities il l need, this new mediad~'mons [r a(e s ti~ e n ec essi~ fQ f g lob a I EobiUzadon, and reshap es IP!l:r.adgnu , o r deve lopmeJ:l lt to beincl:us~ve, J ~ O : I L i s : l i C ' equltab]e and. based on a respect for each other and the planet.The Pa.adi.gm S hlft Pr.ojec :t 'Was incorpo .rated 1 I 1 1 i l d e l i th e 'C aJ :I:acla"C orporations A ct as 1 1 . ",ot,...fo:r~pl~ofito irgMiiz adon on August 6 .2008 an d becam e a ohiilrity w il:h tax-exempt status tinder paragraph ]49([)(t) oftbe ltlcOmf! Tox ACI ,(the Act (R eg istration :# 8 .3 79 9 ' 9 8 20 RROOO 1 ) effective July 2


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Tile Paradigm Shift Pr,ojectN o te s t lo f. h" e' Flnanda i. S ta tJem,en :t s.DCf,mber31-,1010

An erp ll ty in. stJ ', !! !me 'l l,Cs an)' Co\Mlna.d I r h a t evldenccs ,I r e 1 l , i d l L n l : ~ iDiteres~ In th e assets of an entity afterdecluc . tin,S all nf' its l.:iabiliti~s.A d e l't v! J! ti ve js a finMoiaI instnu ll.e nt or oth er contract w ith al I three of th e fol lo \v i og characterlsd cs :0 ) its v alu e c hang es in re sp ons e to rite c lla :n ge in a s pe cif ie d in te re st ra te . f in an cia l

in str ument p ric e" com .mod ity price, foreign eXChai jl ,gerat e, i1'I:d~xO f p ri~ es o r r aie s, a "e red it r er ln g or c red: it in d~K , o r o ' m . e r variab~e I s om etim es c alle d th e "u nd erlymg "),pJlovjded in th e' c ase o f'a n on -fln an eial v ar iab le [hltt tm,e vadab~e is n ot s ,p ed fic ro a pan)'LO th e COl' l tract: :(ii) ttrequkes no i,D i~i,alnet investm ent ,or an [nitial net invesnnem that is smeller thanw euld be n~quired. for other type.s of 'COnltracts th at w o uld be expecrod 'm o,av e a similarresponse ~I O ch an ge s in m a rk ie t f tu:: .mrs; and

(iii) n is settled, at a future da:l!e.T he recognhlon standerds requires the cla :S$ ;~f lca it ion of the ' finane ial D .lrI stmments into [ he f oll ow ing'c ats go rle s :-

1 . H ,~ :ld -f o r : - T ( < ' i , d i r n g ,: 2 : . He[d"oo-Ma'turi,l,},investmel'lts.J. Loans ij)fld recei'lla:bles.o ! t Ava] Iable- . ro r" ,sa le audS. Other liabU.ilti.es

These f inancial instrurnests a re measur ed at/ai'r value [o:rl.he moSt p ar t" wh ile in l. iL l1 1~Mda se s, maybe,measu red ,a t ClWU'Jrt tzt idcoSi uSlnglhe e./fe,c,tivf! .lulerest m,~,th()d.

On l.an uary 1 ., 2009 . the O rganiza~ ion adopted. Section J,g61 .. his Section establishes standards forpresenm.don o r f im . tn c i'1 1 !,J lnstnrments and non~financia[ derlvadvee , and idcntiiiles Ib e 'information tha tsh ould be dls d osc da bQut, th em .

On January 'I. 2009~ the Ol."'ganiza.1tion adapted Seotiol1) 4400. This: Section e.stablisheSl, preoollnuion anddisclosuI'e .sumd;~nJ'S,or ti:rl!~linci.a[ statClW:(llts ofnot-for-proflL organizations an d supplement these in


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The' Paradigm .SlUft . P : r o j e 1 c tNolles t o ' the Fina.ndal Stab;~mentsnece'mlblcr 3 1 . lOUI

,. . .General Stoo.aard:)' o f . fi 'i n(mcl ol Slamrnrm.l ' P 'Pe sen tQ t io n . S e cUen i4 ( )Owhicb app~y '1 0 b oth p r o f i l E ' -o r i e m : e d i . ,e n ' lD ! :: r p r is e s and not-for-profits organizanons,

On January I , 2 00 9" 'til Orga,ni.mtwoll adopted the amendments made Ito Section 1 00 0. T he' emendedSeetien requ lres an enti ty t o demon s : t r n U l " that any am oints 1 11 at~!lp r l e s e i ' l l ~ d as an l l r siS l e 1 mee rs thecon cept ua l d ef la ir ien o r a n a ss et OT i s permi tt ed to be reeorded as assets under spoo it c : C ICA Hand bookSect ion . .T he adoption of these standards and am endm ents bas nOt resulted in any chang, in howthe Or~n~zaHo.l1aCCOlmlSfor its tram ;,ad kms n .o r he re su lts ,of its o pe rafio ns o r flnan eial sm tleme li'lts.

The f in an ci a'i s t: ll eme r rt -s ha '\ fl e been prepared lnaeccrdance with C an ad ia n g en era lly a co ep te d aoootlll1tlogp rincip les for l1on-pro,m ,p.r,gai l l izatio~s, The H nand aJsralE:r.nents 'refl;~:E 'li te f oJ k~w in g s tg nif ic an taccounting poliei.es:

Ex( ;e 'p :t . fo r re venu e . From donatiens wh lch is recorded 0 1 '1 II . cash basi s, 1 . , v i . r h ! 'IO flC'cn.l!!dbeing madefor am cm ts p led ged bu t not receiv ed eevenu esand expenditures a re re co 'r de d o n r u ! e a cc ru al b as is ,whe reby ull~SaCnO,f.Is,and events am ' ro~ogThiz :edin the period in wbich thetransaenons and evenl'seecur, r e. savd lc ss o f whether there has been a receipt or payment of"i;:ash (If its ecJnivalent.

The' Organ b :a iio fii ,Icor.il.sidel'ed dc 'posi ts , in biil:ll.k.and :short te rm , in \ I'~ stments w i th o rj gin a~ :maturitiesof 90 dia) or J ess as cashand cash equivalents.

TWit: r g a l 'i I .i z a L i . o n foUows t . h . e def-em I mel l l :od of , a ~ r ; : : c o u n ~ f l 1g fot" cO"nltihut[om end grants, when ibyreslric 'led con' tribu:ti.OI15,related to ex pe nses of fu ru r'e p erio ds a re d eferre d ,an d reecgn ized asrevenue in th e re la oe d flrtu re period that the expenses are' incnrred, E . u d o w . m . e : n : l 1 c o n l ' r i l : J \ l t i o n s are

mel ..ie G.. G. PinnOCK C!lj,


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reported as tH rect 'increases iilJ net a ss et s, AU other conrr :i bn tions a re reported a s r evenue ortb~c ur re nt p er io d

.Purch.ased cap il lil 1 fi ,S0 tS a re recorded ,~tCOSl- while dOlla,ted c~prta] a ss et a re r ec or de d a: tfa il ' miue..Amortiz ation is provided 'on the reducing bill.ance basis at nd, ' s e ;st i:mat,ed to write-off carp~ml issetQ ' er the term oftbe ir llsefu~live s, T he rates u se d. B . I " ' C a s : fellows:Camera BqllipmelIt and Accessories 20%Compute rs and aco~ssoofies20%

T he P ara d lgm S hift .P roje ct o orri.e s out pro] ects i n . d i f fetern.l counuies, Theorgan lzation tlCOOWI:Sto r trran~ioiJlsin foreign currency ,at the' e..xclum.g~ ra te 'in effect at th e ' t ime oftheEI'f lnS!lCti!o]:l!s.F in al1 eia [ P '0 5itio n item s a re tra n b lOOd8:[ th e year end rates '!I 'p'pUabl~.

The Organization's f i n o c n o i l ! : 1 1 in slr llmen ts a re recognized and m easured in accordanee with CICASed ~on~ 3 85S ' and 3 86 1. T hese fi~ ~,anc ial instruments cons~Sit of cash and 8slm . ~quiva l' en ts . p r ,ep~ ide:x:penses; defer,red revenue c o n l r i b l J u o : n . s : and 'accounts 1payab]c & accrued liabilities,

As:s,e,tliliabiUt)'Cash il Im : :l cash , e . q u i v , a . l e n t sAccola [U S pay,abl;e' and a.c .cnted Iiabil it iesDefe rr ed re vems e contr ibl l l t ionsPrepayments

' C a : t e g , Q ' I l ' YHehI-fo'I'~h;ad ingO U l e J " l iabil i tiesOl:h,er lIabtUtiesLoa ns and ree etv ab lies

7

These fi:m'uJ.ei ,d instr11l .l1,ent-san : carried a, l a m ortlz ed e cst, using the e ff-ec t: ive il ll re rest method,l : a ' e l l of impai rme ' lr t

1lc~ae_J G,. G. Pinnock CA


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The' P ,a r,a digm Shift P ,ro je ctN etesto the Finam:bt1 Staiem,entsOeJ( !~mber 31 , 2 '01D '

The ' Organi:zatiol"l's capital is its Net A ssets of S4 9 ' C i 5 {2009 - $3 096} . and t t is not subjeeted toex telI:naU y[m pased req ulrem ents. T he O rg aniz ado:n s objectiv e w h en mall l !aging c ap ita l is to g er ie ra :te: suff i, ai en t cash f lows to su pp or t an d e nh an ce O le O rg an ia ati,Q fi's ac tiv itie s.

Def'e ii Ted revenue con tr ibu tion, s r ep re sent l in p en t e ae :r o,a 'lI } ' r st ric te d grants an d dOnllti,l']llll for spec ia lprojec[s receiv ed in tile cu rrent y ear U U l f w in be expended I n e fuiure period, T he D efem :d revenuecona- ibulions bala nc e of . $ 3 ,, 405 as at Deeernber Sl , 2010 is oo'Jnpris-~d a~'SR05,ilii det7 l ! l rred donat ions forthe purohase of a camera and $ 2 600 in . deferred grants fro m th e Ontario TdU~wn Founda:uon for th ed ev e lo pme m o f e duoati,on a I re so urc es ,

Mi~hael G. G. PLnnoek CA

2010 audited statements

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