METIS NATION OF ALBERTA ASSOCIATION

FORT MCMURRAY LOCAL COUNCIL 1935

Financial Statements
Year Ended March 31, 2014

METIS NATION OF ALBERTA ASSOCIATION FORT MCMURRAY LOCAL COUNCIL 1935

Index to Financial Statements
Year Ended March 31, 2014

Page
INDEPENDENT AUDITORS' REPORT

FINANCIAL STATEMENTS
Statement of Financial Position

Statement of Operations

Statement of Changes in Net Assets

Statement of Cash Flows

Notes to Financial Statements

8 - 11

INDEPENDENT AUDITORS' REPORT

To the Members of
Metis Nation of Alberta Association Fort McMurray Local Council 1935
Report on the Financial Statements
We have audited the accompanying financial statements of Metis Nation of Alberta Association Fort McMurray Local Council 1935,
which comprise the statement of financial position as at March 31, 2014 and the statements of operations, changes in net assets and
cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with Canadian
accounting standards for not-for-profit organizations, and for such internal control as management determines is necessary to enable
the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
Auditors' Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance
with Canadian generally accepted auditing standards. Those standards require that we comply with ethical requirements and plan and
perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the
entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also
includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by
management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified audit opinion.
Basis for Qualified Opinion
In common with many not-for-profit organizations, the Association derives revenue from fundraising events and donations, the
completeness of which is not susceptible to satisfactory audit verification. Accordingly, our verification of this revenue was limited to the
amounts recorded in the records of the Association and we were not able to determine whether any adjustments might be necessary to
revenue over expenses, assets and net assets.
Qualified Opinion
In our opinion, except for the effect of the matter described in the Basis for Qualified Opinion paragraph, these financial statements
present fairly, in all material respects, the financial position of Metis Nation of Alberta Association Fort McMurray Local Council 1935 as
at March 31, 2014 and the results of its operations and its cash flows for the year then ended in accordance with Canadian accounting
standards for not-for-profit organizations.
Other Matter
The prior year's financial statements were compiled without audit.

Edmonton, Alberta
June 10, 2014

CHARTERED ACCOUNTANTS

METIS NATION OF ALBERTA ASSOCIATION FORT MCMURRAY LOCAL COUNCIL 1935

Statement of Financial Position
March 31, 2014
2014

2013
(Unaudited)
(Restated - Note 7)

ASSETS
CURRENT
Cash and short-term investments (Note 3)
Accounts receivable
Prepaid expenses

PROPERTY AND EQUIPMENT (Note 4)

LONG-TERM INVESTMENTS

1,763,244
257,580
1,000

765,455
6,513
1,000

2,021,824

772,968

45,300

45,470

3,450

3,450

2,070,574

821,888

51,161
125,277

24,015
91,580

LIABILITIES AND NET ASSETS

CURRENT
Accounts payable and accrued liabilities
Deferred contributions (Note 5)

NET ASSETS
Unrestricted
Invested in property and equipment

APPROVED BY THE BOARD

_____________________________ Director
_____________________________ Director
4

176,438

115,595

1,848,836
45,300

660,823
45,470

1,894,136

706,293

2,070,574

821,888

METIS NATION OF ALBERTA ASSOCIATION FORT MCMURRAY LOCAL COUNCIL 1935

Statement of Operations
Year Ended March 31, 2014
2014

2013
(Unaudited)

REVENUE
General operations
Casino
Interest

EXPENSES
Cultural projects and events
Salaries and benefits
Bursaries
Professional fees
Honorarium
Building and occupancy costs
Vehicle
Amortization
Advertising and promotion
Travel
Conferences and meetings
Office
Equipment rental
Bad debts
Interest
Consulting and casual labour

REVENUE OVER EXPENSES

2,909,325
29,374
4,588

1,636,978
4,388

2,943,287

1,641,366

990,129
466,685
146,371
40,729
27,032
26,345
17,665
12,952
8,098
5,849
5,825
2,644
1,861
1,725
1,534
-

351,826
494,010
106,097
63,671
42,700
80,402
15,095
8,935
15,783
2,664
2,695
13,085
5,129
1,115
700

1,755,444

1,203,907

1,187,843

437,459

METIS NATION OF ALBERTA ASSOCIATION FORT MCMURRAY LOCAL COUNCIL 1935

Statement of Changes in Net Assets
Year Ended March 31, 2014
Invested In
Property and
Equipment

Unrestricted

2014

2013
(Unaudited)
(Restated - Note 7)

NET ASSETS - BEGINNING OF YEAR

Revenue over (under) expenses

1,200,795

Invested in property and equipment

NET ASSETS - END OF YEAR

660,823

1,848,836

(12,952)

(12,782)
$

45,470

45,300

1,187,843

12,782
$

706,293

437,459

1,894,136

268,834
-

706,293

METIS NATION OF ALBERTA ASSOCIATION FORT MCMURRAY LOCAL COUNCIL 1935

Statement of Cash Flows
Year Ended March 31, 2014
2014

2013
(Unaudited)
(Restated - Note 7)

OPERATING ACTIVITIES
Revenue over expenses
Item not affecting cash:
Amortization

Changes in non-cash working capital:

Accounts receivable
Prepaid expenses
Accounts payable and accrued liabilities
Deferred contributions

1,187,843

12,952

8,935

1,200,795

446,394

(251,067)
27,146
33,697

12,988
314
(2,361)
(592,210)

(190,224)

(581,269)

1,010,571
INVESTING ACTIVITIES
Purchase of property and equipment
Long-term investments

437,459

(134,875)

(12,782)
-

(32,428)
(2,500)

(12,782)

(34,928)

INCREASE (DECREASE) IN CASH

997,789

(169,803)

Cash and short-term investments - beginning of year

765,455

935,258

CASH AND SHORT-TERM INVESTMENTS - END OF YEAR

1,763,244

765,455

Interest received

4,588

4,388

Interest paid

1,534

1,115

CASH FLOWS SUPPLEMENTARY INFORMATION

METIS NATION OF ALBERTA ASSOCIATION FORT MCMURRAY LOCAL COUNCIL 1935

Notes to Financial Statements
Year Ended March 31, 2014
1.

NATURE OF OPERATIONS
Metis Nation of Alberta Association Fort McMurray Local Council 1935 (the "Association") is a not-forprofit organization incorporated under Societies Act (Alberta). The Association's mandate is to pursue
the advancement of the Mtis people of Fort McMurray and the Regional Municipality of Wood
Buffalo.

2.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation
These financial statements have been prepared in accordance with Canadian accounting standards
for not-for-profit organizations.
Cash and Short-term Investments
Cash and short-term investments are defined as cash on hand and cash on deposit, net of cheques
issued and outstanding at the reporting date and short-term investments that are comprised of
guaranteed investment certificates.
Property and Equipment
Property and equipment are recorded at cost or deemed cost less accumulated amortization.
Amortization is provided over the estimated useful lives of the assets on a declining balance basis at
the following annual rates:
Furniture and fixtures
Buildings
Motor vehicles
Computer equipment
Computer software

20%
10%
30%
45 - 100%
100%

The Association regularly reviews its property and equipment to eliminate obsolete items.
Government grants are treated as a reduction of property and equipment cost.
Property and equipment acquired during the year are not amortized until they are placed into use.
Long-Term Investments
Long-term investments are recorded at fair value and are comprised of art work.
(continues)

METIS NATION OF ALBERTA ASSOCIATION FORT MCMURRAY LOCAL COUNCIL 1935

Notes to Financial Statements
Year Ended March 31, 2014
2.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Revenue Recognition
Revenue derived from service contracts is initially recorded as deferred service revenue and is
subsequently recognized as income on a straight-line basis over the term of the contracts.
The Association follows the deferral method of accounting for contributions. Restricted contributions
such as casino revenue are recognized as revenue in the year in which the related expenses are
incurred. Unrestricted contributions such as donations and fees from fundraising events are
recognized as revenue when received or receivable if the amount to be received can be reasonably
estimated and collection is reasonably assured.
Contributed Services
The work of the Association is largely dependent on volunteer services contributed by many
members. The value of donated services is not recognized in the financial statements.
Financial Instruments
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. All other financial instruments are reported at amortized cost and tested
for impairment at each reporting date.
Measurement Uncertainty
The preparation of financial statements in conformity with Canadian accounting standards for not-forprofit organizations requires management to make estimates and assumptions that affect the
amounts reported in the financial statements. Significant estimates include prepaid expenses,
amortization, accrued liabilities and deferred contributions. By their nature, these estimates are
subject to measurement uncertainty and actual results could differ.

3.

CASH AND SHORT-TERM INVESTMENTS

2014
Cash
Short-term investments

2013

1,186,976
576,268

393,775
371,680

1,763,244

765,455

Cash includes $125,277 (2013--$91,580) in proceeds from casinos, which can only be used in
accordance with the licensing agreements of the Alberta Gaming and Liquor Commission.
Short-term investments consist of three guaranteed investment certificates maturing on June 9,
2015.

METIS NATION OF ALBERTA ASSOCIATION FORT MCMURRAY LOCAL COUNCIL 1935

Notes to Financial Statements
Year Ended March 31, 2014
4.

PROPERTY AND EQUIPMENT

Cost
Furniture and fixtures
Buildings
Motor vehicles
Computer equipment
Computer software

5.

2014
Net book
value

Accumulated
amortization

2013
Net book
value

32,626
15,930
19,806
25,080
1,544

15,416
2,999
8,022
21,705
1,544

17,210
12,931
11,784
3,375
-

12,368
10,431
16,835
5,836
-

94,986

49,686

45,300

45,470

DEFERRED CONTRIBUTIONS
Deferred contributions represent amounts received for specific purposes which have not been
expended at year end.
Balance,
beginning of
year
Casino

6.

91,580

Contributions
received
$

63,071

Recognized
as Revenue
$

(29,374) $

2014
125,277

2013
$

91,580

FINANCIAL INSTRUMENTS
The Association's financial instruments consist of cash and short-term investments, accounts
receivable, and accounts payable and accrued liabilities.
The Association is exposed to the following risks through its financial instruments:
Credit Risk
Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other
party by failing to discharge an obligation. Accounts receivable are generally amounts due from
sponsors. The Association does not believe it is subject to any significant credit risk.
Liquidity Risk
Liquidity risk arises from the possibility that the Association might encounter difficulty in settling its
debts or in meeting its obligations related to financial liabilities. It is the Association's opinion that
there is no significant liquidity risk as of March 31, 2014.
Interest Rate Risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will
fluctuate because of changes in market interest rates. The Association is exposed to interest rate
risk arising on its interest bearing assets.

10

METIS NATION OF ALBERTA ASSOCIATION FORT MCMURRAY LOCAL COUNCIL 1935

Notes to Financial Statements
Year Ended March 31, 2014
7.

RESTATEMENT OF NET ASSETS

The prior year's financial statements were restated to correct the accounting for deferred service
revenue. The restatement decreased deferred contributions and unrestricted net assets for 2013 by
$413,690.

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