Saskatchewan Weightlifting Association Inc.
Financial Statements
For the year ended September 30, 2019
Management's Responsibility
To the Board of Directors of Saskatchewan Weightlifting Association Inc. (the "Association"):
Management is responsible for the preparation and presentation of the accompanying financial statements, including responsibility for significant accounting judgments and estimates in accordance with Canadian accounting standards for not-for-profit organizations. This responsibility includes selecting appropriate accounting principles and methods, and making decisions affecting the measurement of transactions in which objective judgment is required.
In discharging its responsibilities for the integrity and fairness of the financial statements, management designs and maintains the necessary accounting systems and related internal controls to provide reasonable assurance that transactions are authorized, assets are safeguarded and financial records are properly maintained to provide reliable information for the preparation of financial statements.
The Board of Directors is composed entirely of Directors who are neither management nor employees of the Association. The Board is responsible for overseeing management in the performance of its financial reporting responsibilities. The Board fulfills these responsibilities by reviewing the financial information prepared by management and discussing relevant matters with management, internal auditors, and external auditors. The Board is also responsible for recommending the appointment of the Association's external auditors.
HSA Chartered Professional Accountants LLP is appointed by the Board to audit the financial statements and report directly to them; their report follows. The external auditors have full and free access to, and meet periodically and separately with, both the Board and management to discuss their audit findings.
_____________________________ Jocelyne Moe, Secretary/Treasurer
2019/11/28 2:32 PM
Independent Auditor's Report
To the Members of Saskatchewan Weightlifting Association Inc. (the "Association"):
Opinion
We have audited the financial statements of Saskatchewan Weightlifting Association Inc., which comprise the statement of financial position as at September 30, 2019, and the statements of operations and changes in net assets, and cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies.
In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of Saskatchewan Weightlifting Association Inc. as at September 30, 2019, and the results of its operations and its cash flows for the year then ended in accordance with the Canadian accounting standards for not-for-profit organizations.
Basis for Opinion
We conducted our audit in accordance with Canadian generally accepted auditing standards. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Association in accordance with the ethical requirements that are relevant to our audit of the financial statements in Canada, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Other Matter
The financial statements for the year ended September 31, 2018 were audited by another Chartered Professional Accountant who expressed an unmodified opinion on those financial statements on November 19, 2018.
Responsibilities of Management and Those Charged with Governance for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with the 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.
In preparing these financial statements, management is responsible for assessing the Association’s ability to continue as a going concern, disclosing, as applicable, matters related to a going concern and using the going concern basis of accounting unless management either intends to liquidate the Association or to cease operations, or has no realistic alternative to do so.
Those charged with governance are responsible for overseeing the Association’s financial reporting process.
2019/11/28 2:32 PM
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the 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. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Canadian generally accepted auditing standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the 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. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit 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 Association’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
• 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 cast significant doubt on the Association’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 financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Association to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
Chartered Professional Accountants Humboldt, Saskatchewan
2019/11/28 2:32 PM
Saskatchewan Weightlifting Association Inc.
Statement of Financial Position
As at September 30, 2019, with comparative information for 2018
2019 2018
Assets
Current Assets
Cash and cash equivalents $ 68,886 $ 146,290 Accounts receivable 7,678 2,647 Accrued interest 2,253 91 Prepaid expenses 858 - Short-term investments (note 2) 50,000 -
Total Current Assets 129,675 149,028 Long-term investments (note 2) 50,029 16,634
Total Assets $ 179,704 $ 165,662
Liabilities and Net Assets
Current Liabilities
Accounts payable and accrued liabilities $ 18,939 $ - Deferred revenue 955 -
Total Current Liabilities 19,894 - Unrestricted Net Assets 159,810 165,662
Total Liabilities and Net Assets $ 179,704 $ 165,662
Contingencies (note 7)
Approved on Behalf of the Board:
_____________________________
_____________________________
The accompanying notes are an integral part of these financial statements. 2019/11/28 2:32 PM
Saskatchewan Weightlifting Association Inc.
Statement of Operations and Changes in Net Assets
For the year ended September 30, 2019, with comparative information for 2018
2019 2018
Revenue
Sask Lotteries Trust Fund - Sport Division (schedule 1) $ 132,300 $ 121,400 Self Help (schedule 2) 49,857 36,748 National Sports Organization (schedule 3) 1,800 -
Total revenue 183,957 158,148
Expenses
Excellence (schedule 4) 70,736 59,783 Administration (schedule 5) 63,756 20,631 Participation (schedule 6) 16,247 25,908 Membership assistance grant payments (schedule 7) 11,501 9,860 Capacity/Interaction (schedule 8) 9,198 10,222 Equipment 8,592 964 Categorical grants (schedule 9) 6,000 - 1989 Jeux Canada Games Foundation 1,800 - International competition 1,594 4,170 Repairs and maintenance 345 - Repayment annual funding 40 -
Total expenses 189,809 131,538
Excess (deficiency) of revenue over expenses (5,852) 26,610 Net assets, beginning of year 165,662 139,052
Net assets, end of year $ 159,810 $ 165,662
The accompanying notes are an integral part of these financial statements. 2019/11/28 2:32 PM
Saskatchewan Weightlifting Association Inc.
Statement of Cash Flows
For the year ended September 30, 2019, with comparative information for 2018
2019 2018
Cash flows from operating activities:
Cash receipts from members and funding $ 174,395 $ 157,427 Cash paid to suppliers, employees and competitors (171,738) (131,858) Interest received 3,324 454 Goods and Services Tax 10 353
Total cash flows from operating activities 5,991 26,376
Cash flows from investing activities:
Purchase of short-term investments (50,000) - Purchase of long-term investments (50,000) (264) Proceeds from sale of long-term investments 16,605 -
Total cash flows from investing activities (83,395) (264)
Increase (decrease) in cash and cash equivalents (77,404) 26,112 Cash and cash equivalents, beginning of year 146,290 120,178
Cash and cash equivalents, end of year $ 68,886 $ 146,290
The accompanying notes are an integral part of these financial statements. 2019/11/28 2:32 PM
Saskatchewan Weightlifting Association Inc.
Notes to Financial Statements
For the year ended September 30, 2019
Saskatchewan Weightlifting Association Inc. (the "Association") was incorporated under the Saskatchewan Non- profit Corporations Act of Saskatchewan as a not-for-profit organization on February 18, 1976. It exists to coordinate, encourage, and facilitate the development of weightlifting in Saskatchewan. As a non-profit corporation, the Association is not subject to income tax.
The Association receives significant revenue from Saskatchewan Lotteries Trust Fund for Sport, Culture and Recreation. As a result, the Association is dependent upon the continuance of these grants to maintain operations at their current level.
1. Significant accounting policies
These financial statements have been prepared in accordance with Canadian accounting standards for not-for- profit organizations and include the following policies:
a. Use of estimates
The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The fair value of accounts receivable are subject to estimates. Actual results could differ from those estimates and may have impact on future periods.
b. Financial instruments
The Association's financial instruments, consisting of cash and cash equivalents, accounts receivable, accrued interest, short-term investments, long-term investments, and accounts payable and accrued liabilities, are initially recorded at fair value and are subsequently measured at amortized cost.
c. Cash and cash equivalents
Cash and cash equivalents is defined as cash and short-term investments with a maturity date of less than 90 days from the date of acquisition.
d. Investments
Short-term investments consist of term deposits with maturity dates ranging from 91 days to twelve months from the date of acquisition.
Long-term investments consist of equity in cooperatives and term deposits maturing more than twelve months after year end.
e. Tangible capital assets
Tangible capital assets are expensed on acquisition. Tangible capital assets held include computer equipment, weightlifting equipment, and moveable storage trailers.
f. Deferred revenue
Deferred revenue represents the prepaid portion of competition and membership fees relating to the following year's activities.
2019/11/28 2:32 PM
Saskatchewan Weightlifting Association Inc.
Notes to Financial Statements
For the year ended September 30, 2019
1. Significant accounting policies (continued)
g. 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 expenses are incurred. Unrestricted contributions are recognized as revenue when they are received or receivable. Grants from Saskatchewan Lotteries Trust Fund for Sport, Culture and Recreation are received out of the net proceeds of lottery ticket sales in Saskatchewan. These grants have been recorded as revenue by the Association as approved by Saskatchewan Lotteries Trust Fund for Sport, Culture and Recreation for the year ended September 30, 2019.
Competition and clinic fees and membership fees are recognized as revenue in the period to which they relate. Lottery commissions and fundraising are recognized as received. Investment income is recognized as revenue as earned.
h. Contributed materials and services
Volunteers contribute many hours per year to assist the Association in carrying out its activities. Because of the difficulty in determining the fair value, these contributed services are not recognized in the financial statements. Contributed assets are recorded as donations when the fair market value is readily determinable, and expensed.
2. Investments
Investments consist of the following:
2019 2018
Short-term investments
Term deposit, interest at 2.65%, maturing December 2019 $ 50,000 $ -
Long-term investments
Term deposit, interest at 2.95%, maturing December 2020 50,000 - Equity in credit union 29 29 Canada savings bond, interest at 0.70%, matured during the year - 16,606
50,029 16,635
Total investments $ 100,029 $ 16,635
3. Tangible capital assets
During the year, the Association purchased $8,592 (2018 - $964) of tangible capital assets.
4. Bank overdraft
The Association has an authorized line of credit of $8,500, held with Conexus Credit Union, bearing interest at bank prime rate plus 4.00%. As at September 30, 2019, the Association has drawn $nil (2018 - $nil) on this operating line. The operating line is secured by a general security agreement covering all assets of the Association. Bank prime rate at September 30, 2019 was 3.95% (2018 - 3.70%).
2019/11/28 2:32 PM
Saskatchewan Weightlifting Association Inc.
Notes to Financial Statements
For the year ended September 30, 2019
5. Related party transactions
During the year, the Association paid $9,740 (2018 - $16,080) to certain board members for coaching and administrative duties. There are no balances outstanding at year-end (2018 - $nil). These transactions are in the normal course of operations and are measured at the exchange amount of consideration established and agreed to by the related parties.
6. Financial instrument risks
The Association is exposed to the following significant risks through its use of financial instruments:
Liquidity risk - the Association's exposure to liquidity risk is dependent on the receipt of funds from members and activities of the Association, grants from the Saskatchewan Lotteries Trust Fund and interest on investments. Funds from these sources are used to finance operations and are considered adequate to meet the Association's financial obligations.
7. Contingencies
The Association is involved in certain legal matters of which the outcomes are currently not determinable.
2019/11/28 2:32 PM
Saskatchewan Weightlifting Association Inc.
Schedules
For the year ended September 30, 2019, with comparative information for 2018
Schedule 1 - Sask Lotteries Trust Fund - Sport Division
2019 2018
Annual Funding
Annual funding $ 114,800 $ 111,500 Membership assistance program 11,500 9,900 Future Best 6,000 -
Total Sask Lotteries Trust Fund - Sport Division $ 132,300 $ 121,400
Schedule 2 - Self Help
2019 2018
Internal
Competition and clinic fees $ 28,720 $ 20,600 Membership fees 4,830 6,075 Equipment 1,200 -
34,750 26,675
External
Lottery commissions 8,000 8,000 Interest 5,487 453 Fundraising 1,620 1,620
15,107 10,073
Total Self Help $ 49,857 $ 36,748
Schedule 3 - National Sport Organization
2019 2018
1989 Jeux Canada Games $ 1,800 $ -
Total National Sport Organization $ 1,800 $ -
The accompanying notes are an integral part of these financial statements. 2019/11/28 2:32 PM
Saskatchewan Weightlifting Association Inc.
Schedules
For the year ended September 30, 2019, with comparative information for 2018
Schedule 4 - Excellence
2019 2018
Coaching development $ 4,600 $ 6,308 Athlete development - competition 59,610 39,360 Athlete development - athletic assistance 4,000 8,000 Athlete development - training/camps 1,196 3,000 Athlete development - competitions - officials 730 2,515 Athlete development - talent identification 600 600
Total Excellence $ 70,736 $ 59,783
Schedule 5 - Administration
2019 2018
Legal fees $ 33,339 $ 15 Administrative support staff 20,062 9,599 Office operations 5,667 5,099 Audit 2,984 2,571 Insurance 844 943 Memberships 860 2,404
Total Administration $ 63,756 $ 20,631
Schedule 6 - Participation
2019 2018
Coaching development $ 9,839 $ 7,807 Competitions 3,532 11,678 Participation: officials development 2,397 5,388 Introductory/participation programs 479 1,035
Total Participation $ 16,247 $ 25,908
The accompanying notes are an integral part of these financial statements. 2019/11/28 2:32 PM
Saskatchewan Weightlifting Association Inc.
Schedules
For the year ended September 30, 2019, with comparative information for 2018
Schedule 7 - Membership Assistance Grant Payments
2019 2018
Saskatoon $ 6,369 $ 6,176 Regina 3,256 1,761 Prince Albert 1,876 1,741 North Battleford - 182
Total Membership Assistance Grant Payments $ 11,501 $ 9,860
Schedule 8 - Capacity/Interaction
2019 2018
Board of Directors meetings $ 5,200 $ 3,624 Planning and policy meetings 2,324 2,415 Annual general meeting 1,372 887 Web page 302 - Conferences - 3,296
Total Capacity/Interaction $ 9,198 $ 10,222
Schedule 9 - Categorical Grants
2019 2018
Future Best $ 6,000 $ -
Total Categorical Grants $ 6,000 $ -
The accompanying notes are an integral part of these financial statements. 2019/11/28 2:32 PM