2012 financial statements

ANNUAL REPORT 2012

ONE ORGANIZATIONONE VISION

ONE MILLION CHILDREN

REPORT OF THE INDEPENDENT AUDITOR ON THE SUMMARY CONSOLIDATED FINANCIAL STATEMENTS

To the Board of Directorsof Right To Play InternationalThe accompanying summary consolidated fi nancial statements, which comprise the summary consolidated statements of fi nancial position as at December 31, 2012, December 31, 2011, and January 1, 2011, and the summary consolidated statement of operations and changes net assets for the years ended December 31, 2012 and December 31, 2011, are derived from the audited consolidated fi nancial statements of Right To Play International (the “Corporation”) for the years ended December 31, 2012 and December 31, 2011. We expressed an unmodifi ed audit opinion on those consolidated fi nancial statements in our report dated June 26, 2013.

The summary consolidated fi nancial statements do not contain all the disclosures required by Canadian accounting standards for not-for-profi t organizations. Reading the summary consolidated fi nancial statements, therefore, is not a substitute for reading the audited consolidated fi nancial statements of the Corporation.

Management’s Responsibility for the Summary Consolidated Financial StatementsManagement is responsible for the preparation of the summary consolidated fi nancial statements in accordance with the Note to the summary consolidated fi nancial statements.

Auditor’s ResponsibilityOur responsibility is to express an opinion on the summary consolidated fi nancial statements based on our procedures, which were conducted in accordance with Canadian Auditing Standard (“CAS”) 810, “Engagements to Report on Summary Financial Statements.” OpinionIn our opinion, the summary consolidated fi nancial statements derived from the audited consolidated fi nancial statements of the Corporation for the years ended December 31, 2012 and December 31, 2011 are a fair summary of those fi nancial statements, on the basis described in the Note to the summary consolidated fi nancial statements.

Professional Chartered Accountants, Chartered AccountantsLicensed Public AccountantsJune 26, 2013

FINANCIAL STATEMENTS 2012Deloitte LLP5140 Yonge StreetSuite 1700Toronto ON M2N 6L7Canada

Tel: 416-601-6150Fax: 416-601-6151www.deloitte.ca

Membre de / Member of Deloitte Touche Tohmatsu Limited

While visiting our programs in Pakistan, our CFO Dennis Lepholtz captured this image of girls expressing their hope for peace.

FINANCIAL REPORT 2012

In 2012, our total revenues increased 12.9% to $36.3 million. This upswing was due to an increase in unrestricted revenues by 42.2% to $15.4 million. Our implementation of new initiatives in 2012 to increase this revenue source, were successful. Restricted revenues from governments, foundations and other sources decreased 2.6% to $20.6 million, which was due to donor-approved carryover of grants into 2013.

Our total expenses increased 2.5% to $35.4 million in 2012. This is broken down into program and non-program expenses as outlined below.

Total program expenses decreased by 4.7% to $28.1 million due to the aforementioned donor-approved carryover, and restructuring of our program implementation. Even with reduced spending on our programs we were still able to grow our reach by more than 160,000 to achieve the milestone of reaching 1 million children in regular weekly activities. Throughout the year, our focus remained on our current countries of operation, placing emphasis on enhanced program quality. In addition to expenses incurred in the countries in which we operated in 2012, we also include expenses related to resource development and program delivery, monitoring and evaluation, research, policy and cross-cultural global education.

Our non-program expenses, which consist of administrative and fundraising expenses, increased by44.0% to $7.4 million. A large part of this increase was attributed to $2.5 million per year from three major investors to support the organization in building its fundraising capacity. Having this prepaid support means other donors did not pay for our increased fundraising efforts. Administration costs were kept relatively constant as we remained cautious in our spending.

Overall, we had a surplus of $859,000 in 2012 that added to our capacity to deliver in the future.

Right To Play did not meet its own benchmark ratio of 85/15 for our program expense to non-program expense, with actuals coming in at 79/21. This was due to the investment in fundraising and the deferral of program expenses to 2013. With the exclusion of the investment funding, our ratio would have been 82/18. We anticipate being below our benchmark ratio for the next few years as we utilize the investment to build on the fundraising capacity of the organization as well as our surplus; however, this will make us a stronger organization capable of reaching even more children through our high-quality, educational programs.

Our full consolidated fi nancial statements, audited by Deloitte & Touche LLP, are also available on our website at www.righttoplay.com.

Dennis LepholtzChief Financial Offi cer

REPORT OF THE INDEPENDENT AUDITOR ON THE SUMMARY CONSOLIDATED FINANCIAL STATEMENTS

To the Board of Directorsof Right To Play InternationalThe accompanying summary consolidated fi nancial statements, which comprise the summary consolidated statements of fi nancial position as at December 31, 2012, December 31, 2011, and January 1, 2011, and the summary consolidated statement of operations and changes net assets for the years ended December 31, 2012 and December 31, 2011, are derived from the audited consolidated fi nancial statements of Right To Play International (the “Corporation”) for the years ended December 31, 2012 and December 31, 2011. We expressed an unmodifi ed audit opinion on those consolidated fi nancial statements in our report dated June 26, 2013.

The summary consolidated fi nancial statements do not contain all the disclosures required by Canadian accounting standards for not-for-profi t organizations. Reading the summary consolidated fi nancial statements, therefore, is not a substitute for reading the audited consolidated fi nancial statements of the Corporation.

Management’s Responsibility for the Summary Consolidated Financial StatementsManagement is responsible for the preparation of the summary consolidated fi nancial statements in accordance with the Note to the summary consolidated fi nancial statements.

Auditor’s ResponsibilityOur responsibility is to express an opinion on the summary consolidated fi nancial statements based on our procedures, which were conducted in accordance with Canadian Auditing Standard (“CAS”) 810, “Engagements to Report on Summary Financial Statements.” OpinionIn our opinion, the summary consolidated fi nancial statements derived from the audited consolidated fi nancial statements of the Corporation for the years ended December 31, 2012 and December 31, 2011 are a fair summary of those fi nancial statements, on the basis described in the Note to the summary consolidated fi nancial statements.

Professional Chartered Accountants, Chartered AccountantsLicensed Public AccountantsJune 26, 2013

FINANCIAL STATEMENTS 2012Deloitte LLP5140 Yonge StreetSuite 1700Toronto ON M2N 6L7Canada

Tel: 416-601-6150Fax: 416-601-6151www.deloitte.ca

Membre de / Member of Deloitte Touche Tohmatsu Limited

While visiting our programs in Pakistan, our CFO Dennis Lepholtz captured this image of girls expressing their hope for peace.

FINANCIAL REPORT 2012

In 2012, our total revenues increased 12.9% to $36.3 million. This upswing was due to an increase in unrestricted revenues by 42.2% to $15.4 million. Our implementation of new initiatives in 2012 to increase this revenue source, were successful. Restricted revenues from governments, foundations and other sources decreased 2.6% to $20.6 million, which was due to donor-approved carryover of grants into 2013.

Our total expenses increased 2.5% to $35.4 million in 2012. This is broken down into program and non-program expenses as outlined below.

Total program expenses decreased by 4.7% to $28.1 million due to the aforementioned donor-approved carryover, and restructuring of our program implementation. Even with reduced spending on our programs we were still able to grow our reach by more than 160,000 to achieve the milestone of reaching 1 million children in regular weekly activities. Throughout the year, our focus remained on our current countries of operation, placing emphasis on enhanced program quality. In addition to expenses incurred in the countries in which we operated in 2012, we also include expenses related to resource development and program delivery, monitoring and evaluation, research, policy and cross-cultural global education.

Our non-program expenses, which consist of administrative and fundraising expenses, increased by44.0% to $7.4 million. A large part of this increase was attributed to $2.5 million per year from three major investors to support the organization in building its fundraising capacity. Having this prepaid support means other donors did not pay for our increased fundraising efforts. Administration costs were kept relatively constant as we remained cautious in our spending.

Overall, we had a surplus of $859,000 in 2012 that added to our capacity to deliver in the future.

Right To Play did not meet its own benchmark ratio of 85/15 for our program expense to non-program expense, with actuals coming in at 79/21. This was due to the investment in fundraising and the deferral of program expenses to 2013. With the exclusion of the investment funding, our ratio would have been 82/18. We anticipate being below our benchmark ratio for the next few years as we utilize the investment to build on the fundraising capacity of the organization as well as our surplus; however, this will make us a stronger organization capable of reaching even more children through our high-quality, educational programs.

Our full consolidated fi nancial statements, audited by Deloitte & Touche LLP, are also available on our website at www.righttoplay.com.

Dennis LepholtzChief Financial Offi cer

FINANCIAL STATEMENTS 2012 FINANCIAL STATEMENTS 2012

SUMMARY CONSOLIDATED STATEMENTS OF FINANCIAL POSITIONas at December 31, 2012, Decemebr 31, 2011 and January 1, 2011 (stated in thousands of Canadian dollars)

December 31, 2012 December 31, 2011 January 1, 2011

AssetsCurrent Cash 10,798 9,038 9,775 Short-term investments – 1 12 Contributions receivable 2,467 3,105 2,372 Harmonized sales tax receivable 140 110 101 Prepaid and other expenses 942 726 1,030

14,347 12,980 13,290 Capital assets 453 143 139

14,800 13,123 13,429 Liabilities Current Accounts payable and accrued liabilities 1,384 1,413 1,565 Deferred contributions 7,607 7,091 4,855 Bank loan 1,087 1,085 1,067

10,078 9,589 7,487

Long-term Deferred capital contributions 330 – –

10,408 9,589 7,487

Net assets Invested in capital assets 122 143 139 Internally restricted net assets 474 – – Unrestricted 3,796 3,391 5,803

4,392 3,534 5,942

14,800 13,123 13,429

SUMMARY CONSOLIDATED STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETSyears ended December 31, 2012 and 2011 (stated in thousands of Canadian dollars)

2012 2011

Revenue Restricted - programs 18,043 20,064 Restricted - others 2,537 1,074 Unrestricted 15,405 10,830 Donations-in-kind - programs – 22 Donations-in-kind - other 125 144 Amortization of deferred capital contributions 165 –

Total revenue 36,275 32,134

Expenses Program expenses International programs 22,100 23,968 International program management 1,889 1,212 Development education 3,132 2,944 Program research, development and monitoring and evaluation 497 746 Policy and advocacy 444 545 Donations-in-kind programs – 23

Total program expenses 28,062 29,438

Non-program expenses Administrative 2,238 2,038 Fund raising 5,117 3,066

Total non-program expenses 7,355 5,104

Total expenses 35,417 34,542

Excess of (expenses over revenue) revenue over expenses 858 (2,408)Net assets, beginning of year 3,534 5,942

Net assets, end of year 4,392 3,534

NoteRight To Play International has prepared these summary consolidated fi nancial statements to be included as part of its annual report. These summary consolidated fi nancial statements present the same information as the audited consolidated fi nancial statements, except for the consolidated statement of changes in net assets, the consolidated statement of cash fl ows and the notes to the audited consolidated fi nancial statements. Complete audited consolidated fi nancial statements for the years ended December 31, 2012 and 2011 are available upon request.

2012 Funding SourcesGovernment 32.0%Individuals and Corporations 53.6%Foundations 13.3%Donations-in-kind 0.8%Others 0.3%

Breakdown of ExpendituresProgram and Global Education 79%Fund Raising 15%Administration 6%

Revenue Since Inception(Million $)

’02 ’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12

FINANCIAL STATEMENTS 2012 FINANCIAL STATEMENTS 2012

SUMMARY CONSOLIDATED STATEMENTS OF FINANCIAL POSITIONas at December 31, 2012, Decemebr 31, 2011 and January 1, 2011 (stated in thousands of Canadian dollars)

December 31, 2012 December 31, 2011 January 1, 2011

AssetsCurrent Cash 10,798 9,038 9,775 Short-term investments – 1 12 Contributions receivable 2,467 3,105 2,372 Harmonized sales tax receivable 140 110 101 Prepaid and other expenses 942 726 1,030

14,347 12,980 13,290 Capital assets 453 143 139

14,800 13,123 13,429 Liabilities Current Accounts payable and accrued liabilities 1,384 1,413 1,565 Deferred contributions 7,607 7,091 4,855 Bank loan 1,087 1,085 1,067

10,078 9,589 7,487

Long-term Deferred capital contributions 330 – –

10,408 9,589 7,487

Net assets Invested in capital assets 122 143 139 Internally restricted net assets 474 – – Unrestricted 3,796 3,391 5,803

4,392 3,534 5,942

14,800 13,123 13,429

SUMMARY CONSOLIDATED STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETSyears ended December 31, 2012 and 2011 (stated in thousands of Canadian dollars)

2012 2011

Revenue Restricted - programs 18,043 20,064 Restricted - others 2,537 1,074 Unrestricted 15,405 10,830 Donations-in-kind - programs – 22 Donations-in-kind - other 125 144 Amortization of deferred capital contributions 165 –

Total revenue 36,275 32,134

Expenses Program expenses International programs 22,100 23,968 International program management 1,889 1,212 Development education 3,132 2,944 Program research, development and monitoring and evaluation 497 746 Policy and advocacy 444 545 Donations-in-kind programs – 23

Total program expenses 28,062 29,438

Non-program expenses Administrative 2,238 2,038 Fund raising 5,117 3,066

Total non-program expenses 7,355 5,104

Total expenses 35,417 34,542

Excess of (expenses over revenue) revenue over expenses 858 (2,408)Net assets, beginning of year 3,534 5,942

Net assets, end of year 4,392 3,534

NoteRight To Play International has prepared these summary consolidated fi nancial statements to be included as part of its annual report. These summary consolidated fi nancial statements present the same information as the audited consolidated fi nancial statements, except for the consolidated statement of changes in net assets, the consolidated statement of cash fl ows and the notes to the audited consolidated fi nancial statements. Complete audited consolidated fi nancial statements for the years ended December 31, 2012 and 2011 are available upon request.

2012 Funding SourcesGovernment 32.0%Individuals and Corporations 53.6%Foundations 13.3%Donations-in-kind 0.8%Others 0.3%

Breakdown of ExpendituresProgram and Global Education 79%Fund Raising 15%Administration 6%

Revenue Since Inception(Million $)

’02 ’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12

INTERNATIONALHEADQUARTERS

Right To Play International65 Queen Street West,Thomson Building, Suite 1900, Box 64Toronto, OntarioM5H 2M5Canada

TEL: +1 416 498 1922FAX: +1 416 498 1942

2012 financial statements

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Transcript of 2012 financial statements