carleton university students' association, inc. financial statements · 2018. 3. 14. ·...

Carleton University Students' Association, Inc.Financial StatementsFor the year ended April 30, 2017

Contents

Independent Auditor's Report 2 - 3

Financial Statements

Statement of Financial Position 4

Statement of Changes in Net Assets 5

Statement of Operations 6

Statement of Cash Flows 7

Notes to Financial Statements 8 - 13

Schedule 1 - Revenues and Expenses - Business Operations 14

Schedule 2 - Other Revenues 15

Schedule 3 - Executives, Services and Program Expenses 16

Schedule 4 - Support and Administration 17

Carleton University Students' Association, Inc.Statement of Changes in Net Assets

For the year ended April 30

Invested intangible

capital assets Unrestricted 2017 2016

Balance, beginning of the year $ 1,126,720 $ 1,957,302 $ 3,084,022 $ 2,431,020

Excess (deficiency) ofrevenues over expenses (109,894) 220,534 110,640 653,002

Acquisition of tangible capitalassets - - - -

Balance, end of the year $ 1,016,826 $ 2,177,836 $ 3,194,662 $ 3,084,022

The notes are an integral part of these financial statements.5

Carleton University Students' Association, Inc.Statement of Operations

For the year ended April 30 2017 2016

RevenuesBusiness operations - Schedule 1 $ 3,737,672 $ 4,577,383Student fees 1,043,657 990,490University Centre fees 1,218,194 1,156,590Investment income 36,670 30,618Other revenues - Schedule 2 647,231 1,232,176

6,683,424 7,987,257

ExpensesBusiness operations - Schedule 1

Cost of sales 2,223,337 2,921,299Operating expenses 1,616,351 1,612,770

Executives, services and program - Schedule 3 1,269,401 1,297,709Support and administration - Schedule 4 1,463,695 1,502,477

6,572,784 7,334,255

Excess of revenues over expenses $ 110,640 $ 653,002


Carleton University Students' Association, Inc.Statement of Cash Flows

For the year ended April 30 2017 2016

Cash flows from operating activitiesExcess of revenues over expenses $ 110,640 $ 653,002Items not affecting cash:

Amortization of tangible capital assets 131,198 148,503Amortization of deferred contributions related to

tangible capital assets (21,304) (19,852)

220,534 781,653Changes in non-cash working capital:

Accounts receivable (390,596) 69,780Prepaid expenses 11,389 (836)Inventory (117,098) 21,543Accounts payable and accrued liabilities 298,591 (591,725)Government remittances payable 9,155 4,674Consignment books liability (27,328) (60,559)Due to Radio Carleton Inc. 11,808 46,975Due to/from Carleton University 109,635 (154,760)Deferred contributions (91,206) 7,127

34,884 123,872

Cash flows from investing activitiesAcquisition of tangible capital assets (6,859) (21,133)Net change in guaranteed investment certificates (1,241,464) (228,189)

(1,248,323) (249,322)

Cash flows from financing activitiesDecrease in deferred contributions related to tangible

capital assets 6,859 5,841

Net decrease in cash (1,206,580) (119,609)

Cash, beginning of the year 2,609,413 2,729,022

Cash, end of the year $ 1,402,833 $ 2,609,413


Carleton University Students' Association, Inc.Notes to Financial Statements

April 30, 2017

1. Accounting Policies

Status and Purpose ofAssociation

Carleton University Students' Association, Inc. is a not-for-profitorganization incorporated without share capital under the laws ofthe Ontario Corporations Act. The Association has four purposesand objectives:

a) to serve the needs of the students;

b) to represent the students of Carleton University to theUniversity Administration, to the public and public officials, toother centres of learning and to other organizations;

c) to advance the cause of higher learning at Carleton University,the Province of Ontario, and the Dominion of Canada; and

d) to promote and assist in maintaining an academic and socialenvironment free from prejudice, exploitations, abuse or violenceon the basis of, but not limited to, sex, race, language, religion,age, national or social status, political affiliation or belief, sexualorientation or marital status.

The Association is a non-profit organization under the Income TaxAct and, as such, is exempt from income taxes.

Basis of Accounting The Association applies the Canadian accounting standards fornot-for-profit organizations.

Use of Estimates The preparation of financial statements requires management tomake estimates and assumptions that affect the reported amountsof assets and liabilities and the reported amounts of revenues andexpenses for the year covered. The main estimates relate to theestimated useful life of tangible capital assets and realizablevalue of inventory.

Revenue Recognition The Association follows the deferral method of accounting forcontributions. Restricted contributions are recognized as revenuein the year in which the related expenses are incurred.Unrestricted contributions are recognized as revenue when theyare received or receivable if the amount to be received can bereasonably estimated and collection is reasonably assured.

Student fees, University Centre fees and campus clubs revenuesare recognized as revenue when received or receivable if amountscan be reasonably estimated and collection is reasonably assured.

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April 30, 2017

1. Accounting Policies (continued)

Revenue Recognition(continued)

Business operations, building operations and miscellaneousrevenue is recognized when goods or services are provided ifamounts can be reasonably estimated and collection is reasonablyassured.

Investment income is recognized as revenue when earned.

Financial Instruments Initial and subsequent measurementThe Association initially measures its financial assets and liabilitiesat fair value. The Association subsequently measures all itsfinancial assets and financial liabilities at amortized cost.

ImpairmentFinancial assets measured at amortized cost are tested forimpairment when there are indications of possible impairment.

Transaction costsTransaction costs related to financial instruments subsequentlymeasured at amortized cost are included in the original cost of theasset or liability and recognized in the statement of operationsover the life of the instrument using the straight-line method.

Inventory Inventory consisting of textbooks, food and beverages aremeasured at the lower of cost and net realizable value. Inventoryrecognized as an expense during the year is noted in cost of saleson Schedule 1. The cost is determined using the first-in, first-outmethod.

Tangible Capital Assets Tangible capital assets are accounted for at cost and amortized onthe basis of their useful life of the asset on a straight line basis asfollows:

Equipment and furniture 5 yearsLeasehold improvements 10 yearsAccessibility program assets 5 yearsAutomation equipment 3-5 yearsBuilding 25 years

Impairment of Long-LivedAssets

When a tangible capital asset no longer has any long-term servicepotential to the Association, the excess of its net carrying amountover any residual value is recognized as an expense in thestatement of operations.

Contributed Materials andServices

Volunteers contribute many hours per year to assist theAssociation in carrying out its activities. Due to the difficulty ofdetermining their fair value, contributed materials and servicesare not recognized in the financial statements.

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April 30, 2017

1. Accounting policies (continued)

Deferred ContributionsRelated to TangibleCapital Assets

Contributions relating to tangible capital assets are accounted foras deferred contributions and amortized on the same basis as therelated tangible capital assets.

University Services Amounts received by the Association from Carleton University inregards to Radio Carleton Inc., the Ontario Public InterestResearch Group, the University of Ottawa Community Legal Clinic,the Canadian Federation of Students, the Ontario Federation ofStudents, the World University Services of Canada, the IntervalHouse, the Commerce Society, the Carleton University StudentEmergency Response Team, Engineers without Borders, Sock 'n'Buskin Theatre Company, the Charlatan and the New UniversityGovernment are re-distributed to the respective Associations andnot recognized as revenue.

Fees for DesignatedOrganizations

The Association collects student fees and redistributes these fundsto service centers run by the Association (Clubs & Societies, FootPatrol and Accessibility Fund). These amounts are recorded asrevenue and expenses of the Association.

The Association collects reauthorized contributions on behalf ofthe Engineers Without Borders, CKCU, OPIRG, Legal Aid, CFS, CFSOntario, WUSC, Interval House, CUSERT, Sock 'n' Buskin, CarletonDebating Society, Millennium Village and Garden Spot and remitsthe funds to their organizations. These amounts are not recordedas revenue or expenses of the Association.

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April 30, 2017

2. Tangible Capital Assets

2017 2016

Accumulated AccumulatedCost Amortization Cost Amortization

GeneralEquipment and furniture $ 69,568 $ 69,568 $ 69,568 $ 69,568Leasehold improvements 92,396 92,076 92,396 91,879Accessibility program

assets 374,967 226,347 368,108 205,043

536,931 387,991 530,072 366,490

Business operationsEquipment and furniture

Oliver's 135,852 126,042 135,852 121,137Rooster's 92,708 82,425 92,708 76,849Henry's 35,888 31,449 35,888 30,774

Leasehold improvementsOliver's 308,580 308,580 308,580 280,294Rooster's 344,630 181,974 344,630 159,793Henry's 231,090 231,090 231,090 231,090

Building 1,184,065 354,747 1,184,065 307,445

2,332,813 1,316,307 2,332,813 1,207,382

Automation equipment 160,059 160,059 160,059 159,287

3,029,803 1,864,357 3,022,944 1,733,159

University CentreEquipment and furniture

- Main Hall 13,313 13,313 13,313 13,313

$ 3,043,116 $ 1,877,670 $ 3,036,257 $ 1,746,472

Net carrying amount $ 1,165,446 $ 1,289,785

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April 30, 2017

3. Line of Credit

The Association has a line of credit by way of bank overdraft of $250,000 that is due ondemand and bears interest at the bank's prime rate plus 0.50%, with a seasonal bulge to$500,000 between July 1 and November 30. As at April 30, 2017 and 2016, all funds wereavailable. The line of credit is secured by all present and future personal property withappropriate insurance coverage as well as all present and future student fees and levies dueto the Association and disbursed by Carleton University.

4. Deferred Contributions

Deferred contributions represent unexpended externally restricted amounts relating to theAccessibility Program received in the current and prior years for expenses in future years.The contributions are used to ensure that both events held and services provided by theAssociation are accessible to all students. Changes in the deferred balance are as follows:

2017 2016

Balance, beginning of year $ 365,148 $ 358,021Contributions received 137,251 130,341Amount remitted to Carleton University (33,666) (33,635)Transfer to deferred contributions related to tangible

capital assets (6,859) (5,841)Recognized as revenue (187,932) (83,738)

Balance, end of year $ 273,942 $ 365,148

5. Deferred Contributions Related to Tangible Capital Assets

Deferred contributions related to tangible capital assets represent the unamortized amountused for the purchase of capital assets relating to the Accessibility Program. Changes in thedeferred balance are as follows:

2017 2016

Balance, beginning of year $ 163,065 $ 177,076Transfer from deferred contributions 6,859 5,841Recognized as revenue (21,304) (19,852)

Balance, end of year $ 148,620 $ 163,065

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April 30, 2017

6. Long-term Debt

Long-term debt is repayable in annual instalments of $5,118. The Association postponedpayment of the annual instalment of $5,118 for fiscal years 2013 to 2017. The currentportion of the liability includes all overdue payments as well as the payment due in the nextfiscal year.

The principal repayments to be made during the next five years are as follows: 2018,$30,708; 2019, $5,118; 2020, $5,118; 2021, $5,118; 2022, $5,118.

7. Financial Instruments

Credit riskThe Association is exposed to credit risk with respect to accounts receivable. TheAssociation assesses, on a continuous basis, accounts receivable on the basis of amounts it isvirtually certain to receive.

Interest rate riskThe Association is exposed to interest rate risk on its fixed rate financial instruments. Fixedinterest instruments subject the Association to a fair value risk, since fair value fluctuatesinversely to changes in market interest rates.

8. Employee Benefits

The Association provides termination benefits for all full-time employees. These benefitsprovide for the payment or termination of one week's normal salary for every year of servicewith the Association at the current rate of pay, as well as fifty percent of the value of allaccrued sick leave at the current rate of pay.

In 2017, the value of these benefits is $239,760 (2016 - $226,148) and is included inaccounts payable and accrued liabilities.

9. Comparative Figures

Certain figures for the previous year have been reclassified to conform to the presentationadopted in the current year.

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Carleton University Students' Association, Inc.Schedule 1 - Revenues and Expenses - Business Operations

For the Year Ended April 30

2017Haven Books Rooster's Oliver's Henry's Total

Revenues $ 1,465,688 $ 960,228 $ 844,478 $ 467,278 $ 3,737,672

Cost of sales 1,085,874 434,890 403,957 298,616 2,223,337

Gross profit 379,814 525,338 440,521 168,662 1,514,335

Operatingexpenses 301,486 475,554 627,049 212,262 1,616,351

Excess(deficiency)of revenuesoverexpenses $ 78,328 $ 49,784 $ (186,528) $ (43,600) $ (102,016)

2016Haven Books Rooster's Oliver's Henry's Total

Revenues $ 2,155,170 $ 931,781 $ 986,366 $ 504,066 $ 4,577,383

Cost of sale 1,660,323 441,563 482,303 337,110 2,921,299

Gross profit 494,847 490,218 504,063 166,956 1,656,084

Operatingexpenses 267,761 480,222 633,062 231,725 1,612,770

Excess(deficiency)of revenuesoverexpenses $ 227,086 $ 9,996 $ (128,999) $ (64,769) $ 43,314

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Carleton University Students' Association, Inc.Schedule 2 - Other Revenues


2017 2016

Other revenuesAmortization of deferred contributions related to tangible

capital assets $ 21,304 $ 19,852Building operations 147,336 137,141Campus clubs 170,814 78,816Foot Patrol 44,786 39,063Front desk 5,967 8,983GSA funding 60,000 73,803International Student Centre 20,011 15,926Miscellaneous 128,143 827,183Publications 48,870 31,409

$ 647,231 $ 1,232,176

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Carleton University Students' Association, Inc.Schedule 3 - Executives, Services and Program Expenses


2017 2016

Executives, services and programsPresident $ 8,629 $ 8,454VP Finance

Executive honoraria 199,951 199,316Other 66,788 69,999

VP Student ServicesBill Ellis Centre for Mature Students 25,358 49,724Disability Awareness Centre 40,128 32,656Food Centre 41,586 41,087Foot Patrol 40,252 40,231Gender Sexuality Resource Centre 48,307 55,398Hatch 61,145 37,519Health & Wellness Centre 7,981 16,919International Students' Centre 49,758 64,952Mawandoseg Centre 27,363 29,057Racial, Ethnicity, & Culture Hall 31,513 35,630Womyn's Centre 43,508 52,785Administrative 53,123 19,447

VP Internal AffairsClubs & Societies 233,557 172,836Council 33,429 36,084Elections 47,768 39,522Administrative 77,177 75,911

VP Student Issues 37,128 60,079VP Student Life 94,952 160,103

$ 1,269,401 $ 1,297,709

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Carleton University Students' Association, Inc.Schedule 4 - Support and Administration


2017 2016

Support and administrationAdministration $ 720,506 $ 742,724Automation 2,982 7,389Building operations 378,199 374,971Business operations manager 4,547 5,397Entertainment productions 10,332 11,880Front desk 154,308 139,605Graphic design 192,821 217,291Orientation - 1,333The Spot - 1,887

$ 1,463,695 $ 1,502,477

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