CANADIAN AMATEUR SOFTBALL ASSOCIATION
FINANCIAL STATEMENTS MAY 31, 2014
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INDEPENDENT AUDITORS' REPORT
To the Members,
Canadian Amateur Softball Association:
We have audited the accompanying financial statements of Canadian Amateur Softball Association, which comprise the balance sheet as at May 31, 2014, and the statements of changes in net assets, revenue and expenditure and cash flows for the fourteen month period 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 audit opinion.
Opinion
In our opinion, the financial statements present fairly, in all material respects, the financial position of Canadian Amateur Softball Association as at May 31, 2014, and the results of its operations and its cash flows for the fourteen month period then ended in accordance with Canadian accounting standards for not-for-profit organizations.
0717—r-
c 14)OUSELEY HANVEY CLIPSHAM DEEP LLP
Licensed Public Accountants Ottawa, Ontario
August 12, 2014
205 Catherine Street, Suite 200 Ottawa, ON K2P 1 C3 • T 613 562 2010 • F 613 562 2012 • www.ohcd.ca
Approved on behalf of the Board:
Director
CANADIAN AMATEUR SOFTBALL ASSOCIATION
BALANCE SHEETAS AT MAY 31, 2014
2014
March 31 2013 ASSETS
CURRENT
Cash $ 264,462 $ 618,432
Investments (note 4) 845,783 585,953
Accounts receivable 55,483 207,888
Inventory 16,931 22,581
Prepaid expenses 112,468 40,871
1,295,127 1,475,725
PROPERTY AND EQUIPMENT (note 5) 8,515 3,608
$ 1,303,642 $ 1,479,333
LIABILITIES CURRENT
Accounts payable 84,325 $ 436,494
Deferred revenue (note 6) 284,053 32,357
368,378 468,851
NET ASSETS
Invested in property and equipment 8,515 3,608
Claude Deschamps Memorial Fund 31,270 31,478
Ethel Boyce Achievement Award Fund 22,113 22,421
Reserve Fund 300,000 300,000
Unrestricted 573,366 652,975
935,264 1,010,482
$ 1,303,642 $ 1,479,333
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STATEMENT OF CHANGES IN NET ASSETS
FOR THE FOURTEEN MONTH PERIOD ENDED MAY 31, 2014
12 months
2014 2013
INVESTED IN PROPERTY AND EQUIPMENT
Balance - beginning of period $ 3,608 $ 11,509
Purchase of property and equipment 9,347 1,903
Amortization (4,440) (9,804)
Balance - end of period $ 8,515 $ 3,608
CLAUDE DESCHAMPS MEMORIAL FUND
Balance - beginning of period $ 31,478 $ 28,858
Donations and interest 1,792 4,620
Awards (2,000) (2,000)
Balance - end of period $ 31,270 $ 31,478
ETHEL BOYCE ACHIEVEMENT AWARD FUND
Balance - beginning of period $ 22,421 $ 24,188
Interest 1,692 233
Awards (2,000) (2,000)
Balance - end of period $ 22,113 $ 22,421
RESERVE FUND
Balance - beginning and end of period $ 300,000 $ 300,000
UNRESTRICTED
Balance - beginning of period $ 652,975 $ 539,231
Net revenue (expenditure) for the period (74,702) 105,843
Purchase of property and equipment (9,347) (1,903)
Amortization 4,440 9,804
Balance - end of period $ 573,366 $ 652,975
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CANADIAN AMATEUR SOFTBALL ASSOCIATION
STATEMENT OF REVENUE AND EXPENDITUREFOR THE FOURTEEN MONTH PERIOD ENDED MAY 31, 2014
12 months
2014 2013
REVENUE
Sport Canada contributions $ 1,205,500 $ 1,279,000
Sponsorship 156,293 145,298
Coaching Association of Canada 11,682 30,000
Membership fees 205,000 215,000
Programs - officials 64,863 113,787
- other 89,361 79,437
Canadian championships 165,514 161,984
Sales 98,531 144,120
Investment 42,533 24,141
Donations 15,000 30,000
Miscellaneous 7,719 15,389
2,061,996 2,238,156 EXPENDITURE
Administration 157,045 147,368
Cost of sales 27,060 55,142
Board and staff travel 31,575 35,059
Human resources 628,942 498,897
Meetings 112,331 97,483
Officiating development 50,304 83,834
Marketing 115,571 68,137
National team 495,963 622,804
Canadian championships 146,030 118,179
Coaching program 53,363 34,743
Program development 297,774 358,567
International representation 20,740 12,100
2,136,698 2,132,313
NET REVENUE (EXPENDITURE) FOR THE PERIOD $ (74,702) $ 105,843
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STATEMENT OF CASH FLOWS
FOR THE FOURTEEN MONTH PERIOD ENDED MAY 31, 2014
12 months
2014 2013
OPERATING ACTIVITIES
Net revenue (expenditure) for the period $ (74,702) 105,843
Net revenue (expenditure) of funds (516) 853
Items not affecting cash
Amortization 4,440 9,804
Unrealized gains on investments (15,509) (3,200)
Net change in non-cash working capital items
Accounts receivable 152,405 (109,276)
Inventory 5,650 (19,085)
Prepaid expenses (71,597) (176)
Accounts payable (352,169) 297,196
Deferred revenue 251,696 (443)
(100,302) 281,516 INVESTING ACTIVITIES
Purchase of property and equipment (9,347) (1,903)
Sale (purchase) of investments (244,321) (10,043)
(253,668) (11,946)
INCREASE (DECREASE) IN CASH FOR THE PERIOD (353,970) 269,570
Cash - beginning of period 618,432 348,862
CASH - END OF PERIOD $ 264,462 $ 618,432
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CANADIAN AMATEUR SOFTBALL ASSOCIATION
NOTES TO FINANCIAL STATEMENTSMAY 31, 2014
1. PURPOSE OF THE ORGANIZATION
The Association, in partnership with the Provincial and Territorial Associations and related organizations, ensures provision of a full range of softball opportunities for all Canadians through the development, delivery and promotion of programs and services, both domestically and internationally.
The Association is incorporated under the Canada Not-for-profit Corporations Act and is a Registered Canadian Amateur Athletic Association under the Income tax Act.
2. SIGNIFICANT ACCOUNTING POLICIES
These financial statements have been prepared in accordance with Canadian accounting standards for not-for-profit organizations and include the following significant accounting policies:
a) Estimates and assumptions
The preparation of financial statements requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenditure during the reporting period. Actual results may differ from those estimates.
b) Claude Deschamps Memorial Fund
This internally restricted fund was established in 1984 in honour of the longtime Executive Director of the Association. Annual awards are made to applicants from the region hosting the annual general meeting.
c) Ethel Boyce Achievement Award Fund
This internally restricted fund was created in 1998 by a donation in the name of Ethel (Pheobe) Boyce by her sister, Ruth A. Laing. Annual awards are made to applicants who have exhibited leadership qualities and skills in softball.
d) Reserve Fund
This internally restricted fund was created to provide financial stability for the Association and is not available for other purposes without approval of the Board of Directors.
e) Financial instruments
Investments quoted in an active market are initially recognized at fair value and are subsequently measured at the year-end fair value. Other financial instruments are initially recognized at fair value and are subsequently measured at cost, amortized cost or cost less appropriate allowances for impairment.
f) Inventory
Inventory is valued at the lower of cost and net realizable value. Cost is determined on the average cost basis.
g) Property and equipment
Property and equipment are recorded at cost less accumulated amortization. Amortization is provided on the straight line basis over 3 years.
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NOTES TO FINANCIAL STATEMENTS MAY 31, 2014
2. SIGNIFICANT ACCOUNTING POLICIES (continued) h) Revenue recognition
The Association follows the deferral method of accounting for contributions. Restricted contributions are recognized as revenue in the year in which the related expenditure is incurred. Unrestricted contributions are recognized as revenue when they are received or becomes receivable. Other revenues are recognized in the period in which the event is held or the revenue is earned.
i) Sport Canada Contributions
Contributions received from Sport Canada are subject to specific terms and conditions regarding the expenditure of the funds. The Association's records are subject to audit by Sport Canada to identify instances, if any, in which amounts charged against contributions have not complied with the agreed terms and conditions and which, therefore, would be refundable to Sport Canada. Adjustments to prior years' contributions are recorded in the year in which Sport Canada requests the adjustment.
3. FINANCIAL INSTRUMENTS
Financial instruments of the Association consist of cash, investments, accounts receivable and accounts payable.
Unless otherwise noted, it is management's opinion that the Association is not exposed to significant interest rate, currency, credit, liquidity or market risks arising from its financial instruments and the carrying amount of the financial instruments approximate their fair value.
4. INVESTMENTS
Investments are carried at year-end fair value and consist of:
March 31
2014 2013
Savings accounts $ 141,423 $ 147,147
Fixed income 205,289 198,205
Bond and income funds 499,071 240,601
$ 845,783 $ 585,953
Market risk is the risk the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: currency risk, interest rate risk and other price risk. The Association is exposed mainly to interest rate risk.
Interest rate risk is the risk 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 on its fixed income and bond and income funds investments.
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CANADIAN AMATEUR SOFTBALL ASSOCIATION
NOTES TO FINANCIAL STATEMENTSMAY 31, 2014
5. PROPERTY AND EQUIPMENT
March 31
2014 2013
Accumulated
Cost amortization Net Net
Office furniture and equipment $ 18,271 $ 9,756 $ 8,515 3,608
6. DEFERRED REVENUE
Deferred revenue represents revenue received relating to next year as follows:
March 31
2014 2013
Donations $ 32,984 $ 15,000
Membership fees 40,000
Sport Canada contributions 176,250
Other 34,819 17,357
$ 284,053 $ 32,357 Deferred revenue changed as follows:
March 31
2014 2013
Balance - beginning of period $ 32,357 $ 32,800
Less - amount recognized as revenue in the period (32,357) (32,800)
Plus - amount received related to following period 284,053 32,357
Balance - end of period $ 284,053 $ 32,357
7. COMMITMENT
The Association has leased premises to February 28, 2016 at approximately $59,000 per annum.