We have audited the unconsolidated financial statements of WE Charity (the Organisation), which contain the unconsolidated statement of financial position as at 31 August 2019, and the unconsolidated statements of changes in net assets, operations and cash flows for the year then ended, and notes to the non-consolidated financial statements, including a summary of significant accounting policies. In our opinion, the accompanying unconsolidated financial statements present fairly, in all material respects, the unconsolidated financial position of the Organization as at 31 August 2019 and the unconsolidated results of its operations and unconsolidated cash flows. for the year then ended in accordance with Canadian accounting standards for not-for-profit organizations (ASNPO). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Unconsolidated Financial Statements section of our report.
We are independent of the Organization in accordance with ethical requirements relevant to our audit of the non-consolidated financial statements in Canada, and we have fulfilled our other ethical responsibilities in accordance with these requirements. Management is responsible for the preparation and fair presentation of the non-consolidated financial statements in accordance with ASNPO, and for such internal control as management determines is necessary to enable the preparation of non-consolidated financial statements that are free from material misstatement. misrepresentation, whether due to fraud or error. Our objectives are to obtain reasonable assurance about whether the unconsolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion.
Misstatements may arise as a result of fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to affect the economic decisions of users made on the basis of these non-consolidated financial statements influence. Identify and assess the risks of material misstatement of the non-consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion . Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may raise significant doubt about the organization's ability to continue as a going concern, if we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the non-consolidated financial statements or, if such disclosures are insufficient, to modify our opinion.
Assess the overall presentation, structure and content of the non-consolidated financial statements, including the disclosures, and whether the non-consolidated financial statements represent the underlying transactions and events in a manner that gives a true and fair view.
WE CHARITY
NON-CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED AUGUST 31, 2019
- NATURE OF OPERATIONS
- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Revenue recognition
- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Net assets
- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Properties under renovation
- MARKETABLE SECURITIES
- CONTRIBUTIONS RECEIVABLE
- DUE FROM RELATED ENTITIES
- CAPITAL ASSETS
- PROPERTIES UNDER RENOVATION
- INTANGIBLE ASSETS
- WE365 (continued)
- BANK INDEBTEDNESS
- DEFERRED CONTRIBUTIONS
- DEFERRED CAPITAL CONTRIBUTIONS
- BANK LOANS
- BANK LOANS (continued)
- OBLIGATIONS UNDER CAPITAL LEASE
- METOWE
- IMAGINE I DAY INTERNATIONAL ORGANIZATION
- IMAGINE I DAY INTERNATIONAL ORGANIZATION (continued)
- ECONOMIC INTERESTS
- ALLOCATION OF EXPENDITURES
- COMMITMENTS
- FINANCIAL INSTRUMENTS
- FINANCIAL INSTRUMENTS (continued) Other price risk
- CHANGES IN NON-CASH WORKING CAPITAL
- CORRESPONDING FIGURES
- CORRECTION OF ERROR
The organization is incorporated under the provisions of Part II of the Canada Corporations Act as a non-profit corporation without share capital. Donations are subject to externally imposed provisions that the contributed resources must be permanently maintained by the organization. International program expenditures are recognized as expenses when the funds are disbursed by the organization.
The organization incurs administrative and fundraising costs that are customary in administering the organization and its programs. Instead, summaries of the entities' financial information are presented in the organization's unconsolidated financial statements. The organization tests for impairment when events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable.
Under the terms of the facility agreement, the organization is required to meet certain financial covenants. However, the bank has given the organization written confirmation that the agreement requirement has been waived for the current period. The co-founders of the organization have a controlling interest in Me to We Social Enterprises Inc.
The purpose of Me to We is to help support the operation of the organization. The organization also works closely with charities in the United States and the United Kingdom that share the same mission and vision as the organization. Deferred contributions are included in United States charities for the organization's international planning.
The organization also works closely with non-profit organizations in Canada to achieve various domestic program initiatives. The organization received zero contributions) from Canadian non-profit organizations. The following analysis provides information on the organisation's risk exposure and concentration per 31 August 2019.
The organization is exposed to credit risk due to its cash balances, contributions receivable from donors and amounts due from affiliated entities. The organization manages its credit risk from cash balances by maintaining accounts with creditworthy financial institutions. The organization is primarily exposed to interest rate risk through its bank debt, bank loans and capital lease obligations.
Last year, the organization changed its fiscal year end from December 31 to August 31.
