Calgary Humane Society Annual General Report 2013
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77 20 6 26 2 250 42 2013 A YEAR FOR THE HISTORY BOOKS ANIMAL HEALTH & CARE RESOURCE USE Caring for thousands of animals a year uses a lot of resources. Here is an idea of what animal care uses in the course of one year. 40 Dogs professionally groomed KITTY LITTER 62,375 lbs. of cat littter used 87 Pet food bank recipients B L E A C H 764 liters of disinfectant used to clean 58 animals socilized since Sept. 2013 HEALTH CARE Some animals that arrive at the shelter are not ready to strut their stuff on the adotions floor. Animal Health carries out thousands of procedures every year to aid animals who have been neglected or abused. Animal Health carried out 3,296 surgeries in 2013 Other 24.2% (798) Dogs 14.9% (490) Rabbits 4.7% (154) Cats 56.2% (1,854) 4,488 vaccines were administered in the year 2013. Dogs 22.5% (791) Cats 77.5% (2,585) EXOTIC ANIMAL CARE Calgary Humane Society (CHS) cares for more than just dogs and cats. Sometimes exotic species are placed in our care and it is our job to cater to these animals and meet their unique care requirements. ANIMAL ADMISSIONS THE GATEWAY TO REFUGE Our Animal Admission team takes in thousands of animals a year whether it be lost pets, owner surrenders, seizures or emergency boarding. In 2013 CHS admitted 5,327 animals. Admission by species Cats 3,348 Dogs 1,139 Exotics 379 Birds 238 Rabbits 223 Admission by method Strays 2,213 Owner surrender 2,197 Seized 314 EB/Safekeeping 240 Transfers 233 Returned Adoption 124 Wildlife 6 HUMANE EDUCATION ANIMAL BEHAVIOUR Our education team promotes responsible pet ownership, empathy and violence prevention with quality programs offered in schools, at events and in shelter. In 2013, our humane education programs reached 8,745 individuals BUILDING THE FUTURE 122 460 129 HB 209 Birthday Parties Hosted Camp Registrations Television Media Segements Presentations delivered 650 LESSONS FOR LIFE Our world-class behaviour department has continued to offer comprehensive classes & seminars throughout 2013. There were 856 registrations, 171 consults and 973 assessments in 2013. 103 Behaviour modifications to increase adoptability Behaviour hotline calls answered PROTECTION & INVESTIGATIONS 856 547 People attended our seminars Dogs attended our training classes FLOOD 2013 SERVING THE ANIMALS CHS Protection & Investigations has one of the most challenging jobs in the shelter. With the aid of the call centre we have investigated a total of 1,290 calls in 2013. Type # of cases Abandonment 174 Abuse 190 Inspections 13 Neglect 757 Other 55 Our Peace Officers made 314 seizures in 2013. A FLOOD OF SUPPORT This past summer brought record amounts of flooding to Southern Alberta. Residents in High River, Calgary, Canmore and the surrounding areas battled resiliant flood waters. The arrival of evacuated animals began on Thursday evening and over the next couple of days we saw a flood of need. Evacuated pets needed housing, frantic owners were looking for lost pets and families who had lost everything needed basic supplies for their animals. As the need grew, we saw another flood. We saw flood of generosity and compassion. Turtle (1) Bird (29) Cat (47) Dog (21) Ferret (2) Fish (2) Guinea Pig (2) Lizard(6) Snake (4) Flood Intake by Species 69 Families supported during the flood Number of new volunteers on site 204 1,562.75 Number of hours our flood volunteers contributed 12 1 2 3 4 5 6 7 8 9 10 11 COMMUNICATION A VOICE FOR CHS The Communication department is mainly concerned with connecting lives in interactive and innovative ways. 2013 presented challenges like the flood but also profiled beautiful stories of generosity, service and love. 12,954 Likes 37,812 weekly impressions 2,759 Followers 36,868 blog visits 55,000 website visits/mo. 178,274 views 859 media hits 440 flood related hits A MESSAGE FROM OUR BOARD OF DIRECTORS Welcome to CHS’s 2013 Annual Report! We were privileged to enjoy another very successful year, working toward our mission of helping as many animals as we can. As I find myself saying every year (because it’s always true!), none of it would be possible without the tremendous efforts of our dedicated group of staff and volunteers, or without the generous support of our donors. Their response to the June 2013 flood was but one example of their extraordinary care and commitment. I was truly gratified and humbled to see the efforts made during those trying times by everyone who holds CHS near and dear to their hearts. Though the flood was a disas- ter for many in our city and surrounding area, the response demonstrated everything that can be accomplished when our community comes together to care for each other, whether human or otherwise. Our ongoing goal is always to continue that good work of compassion, empathy, and support. On behalf of the Board of Directors, my sincere thanks to all of those who helped make 2013 such a great one for our organization. We look forward to the same in 2014! No matter how long it takes. Sure, we could tell you about the thousands of matches you made possible last year. We could show you statistics and graphs about our adoptions, breed rescue and stray-return rates… but this year, we wanted to do something just a little different. We wanted to show you what it means to never give up… because in 2013, you showed us that Calgarians will never give up. Meet Tova. Tova is a beautiful, 7 year old German Shepherd mix who arrived at our door in 2012.. Tova came to the shelter after she was abandoned. Tova’s previous owner had moved to Ontario and never returned for her. As admissions staff researched Tova’s past, they discovered she had a rough start. In just seven years Tova had been through at least five homes. Five families. Five separations. This time, we vowed, Tova would find her forever family. Our staff worked exhaustively with Tova in those first days. Tova had issues with other dogs, but was sweet and affectionate to people. We knew her perfect home was out there. Once Tova had cleared her behavior and medical exams it was time to move to adoptions. She had her photo taken, a biography written and she moved into Pooch Pad 5, ready for her adoring public. There, she waited. Days stretched into weeks. Weeks stretched into months. 2012 turned into 2013. Tova waited. In fact, Tova waited ten months to find her perfect home. 299 days. It was April 15, 2013 when Tova finally met her perfect family. If we showed you a graph, Tova would be just one of thousands of happy endings in 2013. But we want to show you what you really did for Tova… 299 Days of Tova 299 Days of Tova 299 Days of Tova Each and every year at Calgary Humane Society we see thousands of happy endings, thanks to your support. You made 2013 a historic year, and we could not be more thankful for that. In 2013 you helped to shatter boundaries that once seemed like an impossible dream. Your support helped us connect thousands of animals to new loving families. Your generosity brought several high-profile animal cruelty cases to justice. Most importantly, you helped us reach a dream that only 10 years ago was unattainable: In 2013, there were no “hard decisions” for time or for space. In 2013, every single healthy and adoptable animal was able to stay at Calgary Humane Society until we found the perfect family. That’s right. In 2013, you made this commitment possible: At Calgary Humane Society, we never give up. We find the best match... You provided Tova with loving care for: Ten Months… That’s 299 Days.... 7176 Hours... 430,560 Minutes... 25,833,600 Seconds. Thanks to you, during her stay Tova received: Take two (2) twice daily Dr. Howard C.H.S. Tova Pooch Pad #5 No Refills 1,046.5 cups of food 897 walks and play sessions 36 vet appointments 28 days of meds for health issue 57 toys to play with 4 news “pet of the week” features Calgary Humane’s paws patient 48 in-shelter behaviour sessions 2,392 delicious treats 598 “room service” visits from care staff 1 reduced adoption fee Endless amounts of love 1 perfect match In total, Tova received approximately $7,475 worth of care at Calgary Humane Society. Care that was only possible because of generous people like you… but we think you’ll agree that Tova was worth every penny. One dog + Ten months + Perfect match = Priceless! YOU MADE 2013 A YEAR TO REMEMBER THANK YOU... Deanna Steblyk, President Calgary Humane Society Board of Directors FINANCIAL STATEMENTS OF CALGARY HUMANE SOCIETY FOR PREVENTION OF CRUELTY TO ANIMALS Calgary Humane Society for Prevention of Cruelty to Animals Statement of revenue and expenses and changes in fund balances year ended December 31, 2013 General Operating Fund Capital Fund Restricted Fund Total 2013 2012 2013 2012 2013 2012 2013 2012 $ $ $ $ $ $ $ $ Revenue Donations and fundraising 2,941,354 2,431,428 40,000 - 5,000 - 2,986,354 2,431,428 Programs and services 1,851,006 1,851,493 - - - - 1,851,006 1,851,493 Bequests 1,288,339 1,922,332 - - - - 1,288,339 1,922,332 City of Calgary contribution 264,980 259,784 - - - - 264,980 259,784 Investment income 299,892 207,390 - - - - 299,892 207,390 Unrealized gain on marketable securities 857,903 180,762 - - - - 857,903 180,762 Gain on sale of tangible capital assets - - - 500 - - - 500 7,503,474 6,853,189 40,000 500 5,000 - 7,548,474 6,853,689 Expenses Wages and employee benefits 3,712,662 3,934,175 - - - - 3,712,662 3,934,175 Operating 916,619 972,965 - - - - 916,619 972,965 Fundraising 399,678 356,564 - - - - 399,678 356,564 General and administrative 711,175 553,253 - - - - 711,175 553,253 Amortization - - 601,588 617,982 - - 601,588 617,982 5,740,134 5,816,957 601,588 617,982 - - 6,341,722 6,434,939 Excess (deficiency) of revenue over expenses 1,763,340 1,036,232 (561,588) (617,482) 5,000 - 1,206,752 418,750 Fund balances, beginning of year 7,984,825 7,593,678 9,333,872 9,306,269 49,377 49,377 17,368,074 16,949,324 Interfund transfers (Note 8b) (1,035,420) (645,085) 1,036,232 645,085 (812) - - - Fund balances, end of year 8,712,745 7,984,825 9,808,516 9,333,872 53,565 49,377 18,574,826 17,368,074 Calgary Humane Society for Prevention of Cruelty to Animals Statement of financial position as at December 31, 2013 General Operating Fund Capital Fund Restricted Fund Total 2013 2012 2013 2012 2013 2012 2013 2012 $ $ $ $ $ $ $ $ Assets Current assets Cash 1,571,706 1,563,234 - - 66,240 66,022 1,637,946 1,629,256 Accounts receivable (Note 2) 323,990 97,235 - - - - 323,990 97,235 Inventory (Note 2) 53,265 64,585 - - - - 53,265 64,585 Prepaid expenses 101,297 31,762 - - - - 101,297 31,762 Due from (to) other funds (2,241,031) (1,324,935) 2,253,706 1,341,580 (12,675) (16,645) - - (190,773) 431,881 2,253,706 1,341,580 53,565 49,377 2,116,498 1,822,838 Marketable securities (Note 3) 9,300,470 8,114,767 - - - - 9,300,470 8,114,767 Tangible capital assets (Note 4) - - 7,554,810 7,992,292 - - 7,554,810 7,992,292 9,109,697 8,546,648 9,808,516 9,333,872 53,565 49,377 18,971,778 17,929,897 Liabilities Current liabilities Accounts payable and accrued liabilities (Note 2) 328,515 510,347 - - - - 328,515 510,347 Deferred revenue (Note 5) 68,437 51,476 - - - - 68,437 51,476 396,952 561,823 - - - - 396,952 561,823 Fund balances Unrestricted (Note 6) 1,845,880 1,098,816 - - - - 1,845,880 1,098,816 Restricted for endowment purposes (Note 7) - - - - 45,000 45,000 45,000 45,000 Invested in tangible capital assets - - 7,554,810 7,992,292 - - 7,554,810 7,992,292 Externally restricted (Note 8a) 6,362 21,671 - - 8,565 4,377 14,927 26,048 Internally restricted (Note 8b) 6,860,503 6,864,338 2,253,706 1,341,580 - - 9,114,209 8,205,918 8,712,745 7,984,825 9,808,516 9,333,872 53,565 49,377 18,574,826 17,368,074 9,109,697 8,546,648 9,808,516 9,333,872 53,565 49,377 18,971,778 17,929,897 Approved by the Board ________________________________ Director _____________________________ Director The accompanying notes to the financial statements are an integral part of this financial statement. Deloitte LLP 700 Bankers Court 850 Second Street S.W. Calgary AB T2P 0R8 Canada Tel: 403-267-1700 Fax: 403-213-5791 www.deloitte.ca Independent Auditor’s Report To the Members of Calgary Humane Society for Prevention of Cruelty to Animals We have audited the accompanying financial statements of Calgary Humane Society for Prevention of Cruelty to Animals, which comprise the statement of financial position as at December 31, 2013, the statements of revenue and expenses and changes in fund balances and cash flows for 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. Auditor’s 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 of Qualified Opinion In common with many not-for-profit organizations, Calgary Humane Society for Prevention of Cruelty to Animals derives a significant portion of its revenue from donations and fundraising, the completeness of which is not susceptible to satisfactory audit verification. Accordingly, our verification of these revenues was limited to the amounts recorded in the records of Calgary Humane Society for Prevention of Cruelty to Animals and we were not able to determine whether any adjustments might be necessary to revenue, excess of revenue over expenses, assets and fund balances. Qualified Opinion In our opinion, except for the possible effects of matters described in the basis of qualified opinion paragraph, the financial statements present fairly, in all material respects, the financial position of Calgary Humane Society for Prevention of Cruelty to Animals as at December 31, 2013 and the results of its operations, changes in fund balances and its cash flows for the year then ended in accordance with Canadian accounting standards for not-for-profit organizations. Other Matters The prior year’s financial statements were audited by another firm of Chartered Accountants. Chartered Accountants March 26, 2014 Calgary Humane Society for Prevention of Cruelty to Animals Statement of cash flows year ended December 31, 2013 2013 2012 $ $ Operating activities Excess of revenue over expenses 1,206,752 418,750 Items not affecting cash (Gain) loss on sale of marketable securities (31,802) 55,084 Unrealized gain on marketable securities (857,903) (180,762) Gain on sale of tangible capital assets - (500) Amortization 601,588 617,982 918,635 910,554 Changes in non-cash working capital Accounts receivable (226,755) 260,600 Inventory 11,320 (5,419) Prepaid expenses (69,535) 28,620 Accounts payable and accrued liabilities (181,832) 112,048 Deferred revenue 16,961 (6,287) 468,794 1,300,116 Investing activities Purchase of tangible capital assets (164,106) (119,404) Proceeds on sale of tangible capital assets - 500 Proceeds on sale of marketable securities 6,412,807 3,400,912 Purchase of marketable securities (6,708,805) (4,060,900) (460,104) (778,892) Net increase in cash 8,690 521,224 Cash, beginning of year 1,629,256 1,108,032 Cash, end of year 1,637,946 1,629,256 Calgary Humane Society for Prevention of Cruelty to Animals Notes to the financial statements December 31, 2013 1. Nature of operations Calgary Humane Society for Prevention of Cruelty to Animals (the “Society”) is a not-for-profit organization that was incorporated under the Alberta Societies Act in 1922. The Society is a registered charity as defined under paragraph 149(1)(f) of the Income Tax Act, and therefore is not subject to income tax. The mandate of the Society is to improve the welfare of animals through programs and services in sheltering, education, protection and advocacy. 2. Significant accounting policies The financial statements have been prepared in accordance with Canadian accounting standards for not-for-profit organizations (“ASNFPO”), and include the following significant accounting policies: Fund accounting The Society follows the restricted fund method of accounting. Activities of the Society are segregated in the following funds: i) The General Operating Fund accounts for the Society’s program delivery and administrative activities. This fund reports unrestricted resources, restricted operating grants and other internally restricted amounts. ii) The Capital Fund accounts for the assets, liabilities, revenues and expenses related to the Society’s tangible capital assets. This fund reports both internally and externally restricted funds. iii) The Restricted Fund accounts for the assets, liabilities, revenue and expenses of the Society’s endowment funds, and its internally and externally restricted funds. Cash Cash that is subject to restrictions, thereby preventing its use for current purposes, is included in restricted cash. Pledges receivable Pledges receivable are not recorded in the Society’s financial statements as there is no assurance that they will ultimately be collected. Pledges are recorded in the financial statements when they are received. Inventory Goods for resale are recorded as inventory and are recorded at the lower of cost and net realizable value. Cost is determined using the average-cost method, and net realizable value is determined using the current estimated selling price less the selling cost. The estimated selling price takes into account management’s best estimate of the most probable set of economic conditions. The cost of inventory recognized as an operating expense amounted to $141,601 (2012 - $150,038). Due from (to) other funds Due from (to) other funds represents amounts owed between certain funds. These interfund balances are non-interest bearing and have no fixed terms of repayment. 2. Significant accounting policies (continued) Tangible capital assets Tangible capital assets are recorded at cost. Donated capital assets are recorded at fair market value at the date of contribution. Amortization is reported in the Capital Fund and is recorded using the straight-line method at the following annual rates, intended to recognize the cost of the assets over their expected useful lives. In the year of acquisition, amortization is taken at one half the standard rates: Buildings and landscaping 5%-10% Equipment and furniture 20% Automotive equipment 15% Impairment of long-lived assets Tangible capital assets are tested for impairment whenever events or changes in circumstances indicate that an asset can no longer be used as originally expected and its carrying amount may not be fully recoverable. An impairment loss is recognized when and to the extent that management assesses the future useful life of the asset to be less than originally estimated. Financial instruments The Society recognizes its financial instruments when the Society becomes party to the contractual provisions of the financial instrument. Financial instruments are recorded at fair value on initial recognition. Freestanding derivative instruments that are not in a qualifying hedging relationship and equity instruments that are quoted in an active market (i.e. marketable securities) are subsequently recorded at fair value. All other financial instruments are recorded at cost or amortized cost, unless management has elected to record at fair value. The Society has not elected to carry any such financial instruments at fair value. Transaction costs related to financial instruments measured at fair value are expensed as incurred. For all other financial instruments, the transaction costs are added to the carrying value of the asset or netted against the carrying value of the liability and are then recognized over the expected life of the instrument using the straight-line method. Any premium or discount related to an instrument measured at amortized cost is amortized over the expected life of the item using the straight-line method and recognized in the statement of revenue and expenses and changes in fund balances. With respect to financial assets measured at cost or amortized cost, the Society recognizes in the statement of revenue and expenses and changes in fund balances an impairment loss, if any, when it determines that a significant adverse change has occurred during the period in the expected timing or amount of future cash flows. When the extent of impairment of a previously written down asset decreases and the decrease can be related to an event occurring after the impairment was recognized, the previously recognized impairment loss is reversed in the statement of revenue and expenses and changes in fund balances in the period the reversal occurs. Revenue recognition Restricted contributions related to general operations are recognized as revenue of the General Operating Fund in the year in which the related expenses are incurred. All other restricted contributions are recognized as revenue of the appropriate restricted fund, or if no restricted fund exists, they are recognized in the General Operating Fund using the deferral method of accounting. Unrestricted contributions are recognized as revenue of the General Operating Fund in the year received or receivable if the amount to be received can be reasonably estimated and collection is reasonably assured. Programs and services and fee for service revenue are recognized when the related service is provided. Investment income includes dividends and interest income, and realized investment gains and losses, which is recognized as revenue of the General Operating Fund when earned. Donated services and materials Donated services and materials are recorded in the financial statements at fair market value when fair market value can be reasonably estimated and when these items would have otherwise been purchased. The Society’s programs benefit from substantial services in the form of volunteer time, which is not recorded in the Society’s financial statements because of the difficulty in determining their fair value. Foreign exchange Transaction amounts denominated in foreign currencies are translated into their Canadian dollar equivalents at exchange rates prevailing at the transaction dates. Carrying values of monetary assets and liabilities reflect the exchange rates at the statement of financial position date. Gains and losses on translation or settlement are included in the determination of excess of revenue over expenses in the statement of revenue and expenses and changes in fund balances for the current period. Income taxes The Society is registered as a charitable organization under the Income Tax Act (the “Act”) and as such is exempt from income taxes and is able to issue donation receipts for income tax purposes. In order to maintain its status as a registered charity under the Act, the Society must meet certain requirements within the Act. In the opinion of management, these requirements have been met. Use of estimates The preparation of financial statements in conformity with ASNFPO 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 revenue and expenses during the reporting period. The most significant of these estimates are related to the recoverable amount of the Society’s accounts receivable, the amortization period for and potential impairment of tangible capital assets, accrued liabilities and potential contingencies. Actual results could differ significantly from the estimates. Management reviews these estimates on a periodic basis and, if required, makes adjustments prospectively. Government remittances At December 31, 2013, the Society had government remittances recoverable of $12,119 (2012 - $10,531) and government remittances payable of $Nil (2012 - $10,040). 3. Marketable securities Marketable securities are recorded at market value. At December 31, 2013, the cost of the investments was $7,903,311 (2012 - $7,575,511). Page 9 4. Tangible capital assets 2013 Accumulated Net book Cost amortization value $ $ $ Buildings and landscaping 9,260,798 3,531,339 5,729,459 Land 1,550,000 - 1,550,000 Equipment and furniture 754,049 488,053 265,996 Automotive equipment 96,318 86,963 9,355 11,661,165 4,106,355 7,554,810 2012 Accumulated Net book Cost amortization value $ $ $ Buildings and landscaping 9,260,798 3,062,139 6,198,659 Land 1,550,000 - 1,550,000 Equipment and furniture 1,185,820 965,990 219,830 Automotive equipment 163,838 140,035 23,803 12,160,456 4,168,164 7,992,292 5. Deferred revenue 2013 2012 $ $ Enmax Education fund 43,702 46,791 Humane Education Tours and Lectures 8,735 1,060 Behavior seminar 16,000 3,625 68,437 51,476 6. Unrestricted fund balances 2013 2012 $ $ Balance, beginning of year 1,098,816 667,110 Excess of revenue over expenses 1,763,340 1,036,232 Transfer from Restricted Fund 812 - Transfer from (to) Emergency Fund 3,835 (10,165) Transfer to Capital Fund (1,036,232) (645,085) Transfer from externally restricted fund 15,309 50,724 1,845,880 1,098,816 7. Restricted for endowment purposes The amount restricted for endowment purposes is a bequest from Gordon Wright, which has externally imposed restrictions that the resources be maintained in perpetuity. 8. Restricted funds (a) Externally restricted funds Expenses from the restricted funds are restricted by the terms of the respective bequests and are required to be used as follows: Alberta Liquor and Gaming funds - Restricted for use as per gaming licences. ARC Resources Fund - Restricted for use to subsidize tuition fees for children to attend Humane Education summer and winter day camps. Benny’s Fund - Restricted for use to subsidize the cost of fostering and training for animals requiring long-term care and socialization. 2013 2012 $ $ Alberta Liquor and Gaming 6,362 21,671 P. & J. Snyder Humane Education Fund - 117 ARC Resources Fund 3,565 4,260 Benny’s Fund 5,000 - 14,927 26,048 During the year, $16,121 was transferred from externally restricted funds to unrestricted funds, (2012 - $50,724). (b) Internally restricted funds These amounts are internally restricted by the board of directors to be held for the following purposes: 2013 2012 $ $ Emergency Fund 1,428,500 1,432,335 Estate of Dr. Robert Lundberg 5,432,003 5,432,003 Capital Fund 2,253,706 1,341,580 9,114,209 8,205,918 In 2013, the board of directors transferred $3,835 from the Emergency Fund. In 2012, the board transferred $10,165 to the Emergency Fund. The Emergency Fund is intended to finance the Society for three months of operations. In 2013, the board of directors transferred the unrestricted operating surplus from 2012 to the Capital Fund to be used for future capital projects. This amounted to $1,036,232 (2012 - $645,085). In March 2008, the board of directors approved a motion to internally restrict all funds received and expected to be received from the Estate of Dr. Robert Lundberg for the purpose of achieving the strategic goals for the Society. 9. Fundraising expenses As required under the Charitable Fund-raising Act of Alberta, the Society reports that approximately $261,033 was paid as remuneration to employees primarily responsible for fundraising in the year ended December 31, 2013 (2012 - $239,027). 10. Financial instruments The Society, as part of its operations, carries a number of financial instruments. It is management’s opinion that the Society is not exposed to significant interest rate, currency or credit risks arising from these financial instruments except as otherwise disclosed. Interest rate risk Interest rate risk is the risk that the fair value of a financial instrument might be adversely affected by a change in the interest rates. Changes in market interest rates may have an effect on the cash flows associated with certain financial assets, known as cash flow risk, and on the fair value of certain financial assets, known as price risk. Foreign currency risk The Society enters into investment transactions denominated in United States currency for which the related revenue, expenses, cash and marketable securities balances are subject to exchange rate fluctuations. As at December 31, 2013, foreign denominated cash and marketable securities were as follows: 2013 2012 $ $ Cash 207,070 130,884 Marketable securities 1,123,872 1,646,135 1,330,942 1,777,019 Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. In seeking to manage the risks for foreign exchange rate fluctuations, the Society closely follows exchange rates and management monitors investment performance monthly. CALGARY HUMANE SOCIETY 2013 SUMMARY OF REVENUE AND EXPENSE BY PROGRAM ACTIVITY Summary of Revenue By Program: Summary of Expenses by Program: Animal Care & Comfort 676,153 9.0% Animal Care & Comfort 2,120,362 36.9% Animal Adoptions 752,582 10.0% Animal Adoptions 669,461 11.7% Community Outreach 422,272 5.6% Animal Investigation & Protection 389,757 6.8% Community Grants 264,980 3.5% Community Outreach 811,348 14.1% Investment Income 1,157,794 15.3% Fundraising 743,951 13.0% Resource Development programs and events 2,986,354 39.6% Administrative 624,276 10.9% Bequest and Legacy Gifts 1,288,339 17.1% Facility 380,979 6.6% 7,548,474 100.0% 5,740,134 100.0% Amortization 601,588.00 6,341,722 9% 10% 6% 3% 15% 40% 17% Animal Care & Comfort Animal Adoptions Community Outreach Community Grants Investment Income Resource Development programs and events Bequest and Legacy Gifts 37% 12% 7% 14% 13% 11% 6% Animal Care & Comfort Animal Adoptions Animal Investigation & Protection Community Outreach Fundraising Administrative Facility FOOD BANK
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Infographic profiling the great accomplishments our organization made in 2013. Includes our annual financial report.
Transcript of Calgary Humane Society Annual General Report 2013
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2013A YEAR FOR THEHISTORY BOOKS
ANIMAL HEALTH & CARE
RESOURCE USECaring for thousands of animals a year uses a lot of resources. Here is an idea of what animal care uses in the course of one year.
40Dogs professionally
groomed
KITTYLITTER
62,375 lbs.of cat littter used
87Pet food bank
recipients
BLEACH
764 litersof disinfectant used
to clean
58animals socilized since Sept. 2013
HEALTH CARE Some animals that arrive at the shelter are not ready to strut their stuff on the adotions floor. Animal Health
carries out thousands of procedures every year to aid animals who have been neglected or abused.
Animal Health carried out 3,296surgeries in 2013
Other 24.2% (798)
Dogs 14.9% (490)
Rabbits 4.7% (154)
Cats 56.2% (1,854)
4,488 vaccines were administered in the year 2013.
Dogs 22.5% (791)
Cats 77.5% (2,585)
EXOTIC ANIMAL CARECalgary Humane Society (CHS) cares for more than just dogs and cats. Sometimes exotic species are placed in our care and it is our job to cater to these animals and meet their unique care requirements.
ANIMAL ADMISSIONS
THE GATEWAY TO REFUGEOur Animal Admission team takes in thousands of animals a year whether it be lost pets, owner surrenders, seizures or emergency boarding. In 2013 CHS admitted 5,327 animals.
Admission by species
Cats 3,348
Dogs1,139
Exotics379
Birds238
Rabbits223
Admission by method
Strays2,213
Owner surrender2,197
Seized314
EB/Safekeeping240
Transfers233
Returned Adoption124
Wildlife6
HUMANE EDUCATION
ANIMAL BEHAVIOUR
Our education team promotes responsible pet ownership, empathy and violence prevention with quality programs offered in schools, at events and in shelter. In 2013, our humane education programs reached 8,745 individuals
BUILDING THE FUTURE
122460
129 HB 20
9
Birthday Parties Hosted
CampRegistrations
Television MediaSegements
Presentationsdelivered
650 LESSONS FOR LIFEOur world-class behaviour department has continued to offer comprehensive classes & seminars throughout 2013. There were 856 registrations, 171 consults and 973 assessments in 2013.
103Behaviour modifications to increase adoptability
Behaviourhotline calls answered
PROTECTION & INVESTIGATIONS
856547People attended
our seminarsDogs attended our
training classes
FLOOD 2013
SERVING THE ANIMALS CHS Protection & Investigations has one of the most challenging jobs in the shelter. With the aid of the call centre we have investigated a total of 1,290 calls in 2013.
Type # of casesAbandonment 174
Abuse 190
Inspections 13
Neglect 757
Other 55Our Peace Officers
made 314 seizures in 2013.
A FLOOD OF SUPPORTThis past summer brought record amounts of flooding to Southern Alberta. Residents in High
River, Calgary, Canmore and the surrounding areas battled resiliant flood waters. The arrival of evacuated animals began on Thursday evening and over the next couple of days we saw a flood of need. Evacuated pets needed housing, frantic owners were looking for lost pets and families who had lost everything needed basic supplies for their animals. As the need grew, we saw another flood. We saw flood of generosity and compassion.
Turtle (1)
Bird (29)
Cat (47)
Dog (21)
Ferret (2)
Fish (2)
GuineaPig (2)
Lizard(6)
Snake (4)
Flood Intakeby Species
69Families supported during the flood
Number of new volunteers on site
2041,562.75
Number of hours our flood volunteers
contributed
121
2
3
45
67
8
9
1011
COMMUNICATION
A VOICE FOR CHSThe Communication department is mainly concerned with connecting lives in interactive and innovative ways. 2013 presented challenges like the flood but also profiled beautiful stories of generosity, service and love.
12,954 Likes37,812 weekly impressions
2,759 Followers
36,868 blog visits55,000 website visits/mo.
178,274 views
859 media hits440 flood related hits
A MESSAGE FROM OUR BOARD OF DIRECTORS
Welcome to CHS’s 2013 Annual Report! We were privileged to enjoy another very successful year, working toward our mission of helping as many animals as we can. As I find myself saying every year (because it’s always true!), none of it would be possible without the tremendous efforts of our dedicated group of staff and volunteers, or without the generous support of our donors. Their response to the June 2013 flood was but one example of their extraordinary care and commitment.
I was truly gratified and humbled to see the efforts made during those trying times by everyone who holds CHS near and dear to their hearts. Though the flood was a disas-ter for many in our city and surrounding area, the response demonstrated everything that can be accomplished when our community comes together to care for each other, whether human or otherwise. Our ongoing goal is always to continue that good work of compassion, empathy, and support.
On behalf of the Board of Directors, my sincere thanks to all of those who helped make 2013 such a great one for our organization. We look forward to the same in 2014!
No matter how long it takes.
Sure, we could tell you about the thousands of matches you made possible last year. We could show you statistics and graphs about our adoptions, breed rescue and stray-return rates… but this year, we wanted to do something just a little different. We wanted to show you what it means to never give up… because in 2013, you showed us that Calgarians will never give up.
Meet Tova.
Tova is a beautiful, 7 year old German Shepherd mix who arrived at our door in 2012.. Tova came to the shelter after she was abandoned. Tova’s previous owner had moved to Ontario and never returned for her. As admissions staff researched Tova’s past, they discovered she had a rough start. In just seven years Tova had been through at least five homes. Five families. Five separations.
This time, we vowed, Tova would find her forever family.
Our staff worked exhaustively with Tova in those first days. Tova had issues with other dogs, but was sweet and affectionate to people. We knew her perfect home was out there. Once Tova had cleared her behavior and medical exams it was time to move to adoptions. She had her photo taken, a biography written and she moved into Pooch Pad 5, ready for her adoring public. There, she waited.
Days stretched into weeks. Weeks stretched into months. 2012 turned into 2013.
Tova waited.
In fact, Tova waited ten months to find her perfect home. 299 days. It was April 15, 2013 when Tova finally met her perfect family. If we showed you a graph, Tova would be just one of thousands of happy endings in 2013. But we want to show you what you really did for Tova…
299 Days of Tova299 Days of Tova299 Days of TovaEach and every year at Calgary Humane Society we see thousands of happy endings, thanks to your support. You made 2013 a historic year, and we could not be more thankful for that. In 2013 you helped to shatter boundaries that once seemed like an impossible dream. Your support helped us connect thousands of animals to new loving families. Your generosity brought several high-profile animal cruelty cases to justice. Most importantly, you helped us reach a dream that only 10 years ago was unattainable:
In 2013, there were no “hard decisions” for time or for space. In 2013, every single healthy and adoptable animal was able to stay at Calgary Humane Society until we found the perfect family.
That’s right. In 2013, you made this commitment possible:
At Calgary Humane Society, we never give up. We find the best match...
You provided Tova with loving care for:Ten Months… That’s 299 Days....
7176 Hours... 430,560 Minutes... 25,833,600 Seconds.
Thanks to you, during her stay Tova received:
Take two (2) tw
ice daily
Dr. H
oward
C.H.S.
TovaPooch Pad #5N
o Re�lls
1,046.5 cupsof food
897 walks and play sessions
36 vet appointments
28 days of medsfor health issue
57 toys toplay with
4 news “pet of the week” features
Calgary Humane’s
pawspatient
48 in-shelter behaviour sessions
2,392 delicious treats
598 “room service”visits from care staff
1 reduced adoption fee
Endlessamounts of love
1 perfectmatch
In total, Tova received approximately $7,475 worth of care at Calgary Humane Society. Care that was only possible because of generous people like you… but we think you’ll agree that Tova was worth every penny. One dog + Ten months + Perfect match = Priceless!
YOU MADE
2 0 1 3 A YEAR TO REMEMBER
THANKYOU...
Deanna Steblyk, PresidentCalgary Humane Society Board of Directors
FINANCIAL STATEMENTS OF
CALGARY HUMANE SOCIETY FOR PREVENTION OF CRUELTY TO ANIMALS
Calgary Humane Society for Prevention ofCruelty to AnimalsStatement of revenue and expenses and changes in fund balancesyear ended December 31, 2013
General Operating Fund Capital Fund Restricted Fund Total2013 2012 2013 2012 2013 2012 2013 2012
$ $ $ $ $ $ $ $
RevenueDonations and fundraising 2,941,354 2,431,428 40,000 - 5,000 - 2,986,354 2,431,428 Programs and services 1,851,006 1,851,493 - - - - 1,851,006 1,851,493 Bequests 1,288,339 1,922,332 - - - - 1,288,339 1,922,332 City of Calgary contribution 264,980 259,784 - - - - 264,980 259,784 Investment income 299,892 207,390 - - - - 299,892 207,390 Unrealized gain on marketable securities 857,903 180,762 - - - - 857,903 180,762 Gain on sale of tangible capital assets - - - 500 - - - 500
7,503,474 6,853,189 40,000 500 5,000 - 7,548,474 6,853,689
ExpensesWages and employee benefits 3,712,662 3,934,175 - - - - 3,712,662 3,934,175 Operating 916,619 972,965 - - - - 916,619 972,965 Fundraising 399,678 356,564 - - - - 399,678 356,564 General and administrative 711,175 553,253 - - - - 711,175 553,253 Amortization - - 601,588 617,982 - - 601,588 617,982
5,740,134 5,816,957 601,588 617,982 - - 6,341,722 6,434,939
Excess (deficiency) of revenue over expenses 1,763,340 1,036,232 (561,588) (617,482) 5,000 - 1,206,752 418,750 Fund balances, beginning of year 7,984,825 7,593,678 9,333,872 9,306,269 49,377 49,377 17,368,074 16,949,324Interfund transfers (Note 8b) (1,035,420) (645,085) 1,036,232 645,085 (812) - - - Fund balances, end of year 8,712,745 7,984,825 9,808,516 9,333,872 53,565 49,377 18,574,826 17,368,074
The accompanying notes to the financial statements are an integral part of this financial statement.Page 3
Calgary Humane Society for Prevention ofCruelty to AnimalsStatement of financial positionas at December 31, 2013
General Operating Fund Capital Fund Restricted Fund Total2013 2012 2013 2012 2013 2012 2013 2012
$ $ $ $ $ $ $ $
AssetsCurrent assets
Cash 1,571,706 1,563,234 - - 66,240 66,022 1,637,946 1,629,256Accounts receivable (Note 2) 323,990 97,235 - - - - 323,990 97,235Inventory (Note 2) 53,265 64,585 - - - - 53,265 64,585Prepaid expenses 101,297 31,762 - - - - 101,297 31,762Due from (to) other funds (2,241,031) (1,324,935) 2,253,706 1,341,580 (12,675) (16,645) - -
(190,773) 431,881 2,253,706 1,341,580 53,565 49,377 2,116,498 1,822,838
Marketable securities (Note 3) 9,300,470 8,114,767 - - - - 9,300,470 8,114,767Tangible capital assets (Note 4) - - 7,554,810 7,992,292 - - 7,554,810 7,992,292
9,109,697 8,546,648 9,808,516 9,333,872 53,565 49,377 18,971,778 17,929,897
LiabilitiesCurrent liabilities
Accounts payable and accruedliabilities (Note 2) 328,515 510,347 - - - - 328,515 510,347
Deferred revenue (Note 5) 68,437 51,476 - - - - 68,437 51,476396,952 561,823 - - - - 396,952 561,823
Fund balancesUnrestricted (Note 6) 1,845,880 1,098,816 - - - - 1,845,880 1,098,816Restricted for endowment purposes (Note 7) - - - - 45,000 45,000 45,000 45,000Invested in tangible capital assets - - 7,554,810 7,992,292 - - 7,554,810 7,992,292Externally restricted (Note 8a) 6,362 21,671 - - 8,565 4,377 14,927 26,048Internally restricted (Note 8b) 6,860,503 6,864,338 2,253,706 1,341,580 - - 9,114,209 8,205,918
8,712,745 7,984,825 9,808,516 9,333,872 53,565 49,377 18,574,826 17,368,0749,109,697 8,546,648 9,808,516 9,333,872 53,565 49,377 18,971,778 17,929,897
Approved by the Board
________________________________ Director _____________________________ Director
The accompanying notes to the financial statements are an integral part of this financial statement.Page 4
Deloitte LLP 700 Bankers Court 850 Second Street S.W. Calgary AB T2P 0R8 Canada
Tel: 403-267-1700 Fax: 403-213-5791 www.deloitte.ca
Independent Auditor’s Report
To the Members of Calgary Humane Society for Prevention of Cruelty to Animals
We have audited the accompanying financial statements of Calgary Humane Society for Prevention of Cruelty to Animals, which comprise the statement of financial position as at December 31, 2013, the statements of revenue and expenses and changes in fund balances and cash flows for 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.
Auditor’s 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.
Deloitte LLP 700 Bankers Court 850 Second Street S.W. Calgary AB T2P 0R8 Canada
Tel: 403-267-1700 Fax: 403-213-5791 www.deloitte.ca
Independent Auditor’s Report
To the Members of Calgary Humane Society for Prevention of Cruelty to Animals
We have audited the accompanying financial statements of Calgary Humane Society for Prevention of Cruelty to Animals, which comprise the statement of financial position as at December 31, 2013, the statements of revenue and expenses and changes in fund balances and cash flows for 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.
Auditor’s 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.
Page 2
Basis of Qualified Opinion
In common with many not-for-profit organizations, Calgary Humane Society for Prevention of Cruelty to Animals derives a significant portion of its revenue from donations and fundraising, the completeness of which is not susceptible to satisfactory audit verification. Accordingly, our verification of these revenues was limited to the amounts recorded in the records of Calgary Humane Society for Prevention of Cruelty to Animals and we were not able to determine whether any adjustments might be necessary to revenue, excess of revenue over expenses, assets and fund balances.
Qualified Opinion
In our opinion, except for the possible effects of matters described in the basis of qualified opinion paragraph, the financial statements present fairly, in all material respects, the financial position of Calgary Humane Society for Prevention of Cruelty to Animals as at December 31, 2013 and the results of its operations, changes in fund balances and its cash flows for the year then ended in accordance with Canadian accounting standards for not-for-profit organizations.
Other Matters
The prior year’s financial statements were audited by another firm of Chartered Accountants.
Chartered Accountants March 26, 2014
Calgary Humane Society for Prevention ofCruelty to AnimalsStatement of cash flowsyear ended December 31, 2013
2013 2012$ $
Operating activitiesExcess of revenue over expenses 1,206,752 418,750Items not affecting cash
(Gain) loss on sale of marketable securities (31,802) 55,084Unrealized gain on marketable securities (857,903) (180,762)Gain on sale of tangible capital assets - (500) Amortization 601,588 617,982
918,635 910,554
Changes in non-cash working capitalAccounts receivable (226,755) 260,600Inventory 11,320 (5,419)Prepaid expenses (69,535) 28,620Accounts payable and accrued liabilities (181,832) 112,048Deferred revenue 16,961 (6,287)
468,794 1,300,116
Investing activitiesPurchase of tangible capital assets (164,106) (119,404)Proceeds on sale of tangible capital assets - 500 Proceeds on sale of marketable securities 6,412,807 3,400,912Purchase of marketable securities (6,708,805) (4,060,900)
(460,104) (778,892)
Net increase in cash 8,690 521,224Cash, beginning of year 1,629,256 1,108,032Cash, end of year 1,637,946 1,629,256
The accompanying notes to the financial statements are an integral part of this financial statement.Page 5
Calgary Humane Society for Prevention ofCruelty to Animals Notes to the financial statements December 31, 2013
Page 6
1. Nature of operations
Calgary Humane Society for Prevention of Cruelty to Animals (the “Society”) is a not-for-profit organization that was incorporated under the Alberta Societies Act in 1922. The Society is a registered charity as defined under paragraph 149(1)(f) of the Income Tax Act, and therefore is not subject to income tax. The mandate of the Society is to improve the welfare of animals through programs and services in sheltering, education, protection and advocacy.
2. Significant accounting policies
The financial statements have been prepared in accordance with Canadian accounting standards for not-for-profit organizations (“ASNFPO”), and include the following significant accounting policies:
Fund accounting
The Society follows the restricted fund method of accounting. Activities of the Society are segregated in the following funds:
i) The General Operating Fund accounts for the Society’s program delivery and administrative activities. This fund reports unrestricted resources, restricted operating grants and other internally restricted amounts.
ii) The Capital Fund accounts for the assets, liabilities, revenues and expenses related to the Society’s tangible capital assets. This fund reports both internally and externally restricted funds.
iii) The Restricted Fund accounts for the assets, liabilities, revenue and expenses of the Society’s endowment funds, and its internally and externally restricted funds.
Cash
Cash that is subject to restrictions, thereby preventing its use for current purposes, is included in restricted cash.
Pledges receivable
Pledges receivable are not recorded in the Society’s financial statements as there is no assurance that they will ultimately be collected. Pledges are recorded in the financial statements when they are received.
Inventory
Goods for resale are recorded as inventory and are recorded at the lower of cost and net realizable value. Cost is determined using the average-cost method, and net realizable value is determined using the current estimated selling price less the selling cost. The estimated selling price takes into account management’s best estimate of the most probable set of economic conditions.
The cost of inventory recognized as an operating expense amounted to $141,601 (2012 - $150,038).
Due from (to) other funds
Due from (to) other funds represents amounts owed between certain funds. These interfund balances are non-interest bearing and have no fixed terms of repayment.
Calgary Humane Society for Prevention ofCruelty to Animals Notes to the financial statements December 31, 2013
Page 7
2. Significant accounting policies (continued)
Tangible capital assets
Tangible capital assets are recorded at cost. Donated capital assets are recorded at fair market value at the date of contribution. Amortization is reported in the Capital Fund and is recorded using the straight-line method at the following annual rates, intended to recognize the cost of the assets over their expected useful lives. In the year of acquisition, amortization is taken at one half the standard rates:
Buildings and landscaping 5%-10% Equipment and furniture 20% Automotive equipment 15%
Impairment of long-lived assets
Tangible capital assets are tested for impairment whenever events or changes in circumstances indicate that an asset can no longer be used as originally expected and its carrying amount may not be fully recoverable. An impairment loss is recognized when and to the extent that management assesses the future useful life of the asset to be less than originally estimated.
Financial instruments
The Society recognizes its financial instruments when the Society becomes party to the contractual provisions of the financial instrument. Financial instruments are recorded at fair value on initial recognition. Freestanding derivative instruments that are not in a qualifying hedging relationship and equity instruments that are quoted in an active market (i.e. marketable securities) are subsequently recorded at fair value. All other financial instruments are recorded at cost or amortized cost, unless management has elected to record at fair value. The Society has not elected to carry any such financial instruments at fair value.
Transaction costs related to financial instruments measured at fair value are expensed as incurred. For all other financial instruments, the transaction costs are added to the carrying value of the asset or netted against the carrying value of the liability and are then recognized over the expected life of the instrument using the straight-line method. Any premium or discount related to an instrument measured at amortized cost is amortized over the expected life of the item using the straight-line method and recognized in the statement of revenue and expenses and changes in fund balances.
With respect to financial assets measured at cost or amortized cost, the Society recognizes in the statement of revenue and expenses and changes in fund balances an impairment loss, if any, when it determines that a significant adverse change has occurred during the period in the expected timing or amount of future cash flows. When the extent of impairment of a previously written down asset decreases and the decrease can be related to an event occurring after the impairment was recognized, the previously recognized impairment loss is reversed in the statement of revenue and expenses and changes in fund balances in the period the reversal occurs.
Revenue recognition
Restricted contributions related to general operations are recognized as revenue of the General Operating Fund in the year in which the related expenses are incurred. All other restricted contributions are recognized as revenue of the appropriate restricted fund, or if no restricted fund exists, they are recognized in the General Operating Fund using the deferral method of accounting.
Unrestricted contributions are recognized as revenue of the General Operating Fund in the year received or receivable if the amount to be received can be reasonably estimated and collection is reasonably assured.
Programs and services and fee for service revenue are recognized when the related service is provided.
Investment income includes dividends and interest income, and realized investment gains and losses, which is recognized as revenue of the General Operating Fund when earned.
Calgary Humane Society for Prevention ofCruelty to Animals Notes to the financial statements December 31, 2013
Page 8
2. Significant accounting policies (continued)
Donated services and materials
Donated services and materials are recorded in the financial statements at fair market value when fair market value can be reasonably estimated and when these items would have otherwise been purchased. The Society’s programs benefit from substantial services in the form of volunteer time, which is not recorded in the Society’s financial statements because of the difficulty in determining their fair value.
Foreign exchange
Transaction amounts denominated in foreign currencies are translated into their Canadian dollar equivalents at exchange rates prevailing at the transaction dates. Carrying values of monetary assets and liabilities reflect the exchange rates at the statement of financial position date. Gains and losses on translation or settlement are included in the determination of excess of revenue over expenses in the statement of revenue and expenses and changes in fund balances for the current period.
Income taxes
The Society is registered as a charitable organization under the Income Tax Act (the “Act”) and as such is exempt from income taxes and is able to issue donation receipts for income tax purposes. In order to maintain its status as a registered charity under the Act, the Society must meet certain requirements within the Act. In the opinion of management, these requirements have been met.
Use of estimates
The preparation of financial statements in conformity with ASNFPO 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 revenue and expenses during the reporting period. The most significant of these estimates are related to the recoverable amount of the Society’s accounts receivable, the amortization period for and potential impairment of tangible capital assets, accrued liabilities and potential contingencies. Actual results could differ significantly from the estimates. Management reviews these estimates on a periodic basis and, if required, makes adjustments prospectively.
Government remittances
At December 31, 2013, the Society had government remittances recoverable of $12,119 (2012 - $10,531) and government remittances payable of $Nil (2012 - $10,040).
3. Marketable securities
Marketable securities are recorded at market value. At December 31, 2013, the cost of the investments was $7,903,311 (2012 - $7,575,511).
Calgary Humane Society for Prevention ofCruelty to Animals Notes to the financial statements December 31, 2013
Page 9
4. Tangible capital assets
2013Accumulated Net book
Cost amortization value$ $ $
Buildings and landscaping 9,260,798 3,531,339 5,729,459Land 1,550,000 - 1,550,000Equipment and furniture 754,049 488,053 265,996Automotive equipment 96,318 86,963 9,355
11,661,165 4,106,355 7,554,810
2012Accumulated Net book
Cost amortization value$ $ $
Buildings and landscaping 9,260,798 3,062,139 6,198,659Land 1,550,000 - 1,550,000Equipment and furniture 1,185,820 965,990 219,830 Automotive equipment 163,838 140,035 23,803
12,160,456 4,168,164 7,992,292
5. Deferred revenue
2013 2012$ $
Enmax Education fund 43,702 46,791 Humane Education Tours and Lectures 8,735 1,060 Behavior seminar 16,000 3,625
68,437 51,476
6. Unrestricted fund balances
2013 2012$ $
Balance, beginning of year 1,098,816 667,110 Excess of revenue over expenses 1,763,340 1,036,232 Transfer from Restricted Fund 812 - Transfer from (to) Emergency Fund 3,835 (10,165) Transfer to Capital Fund (1,036,232) (645,085) Transfer from externally restricted fund 15,309 50,724
1,845,880 1,098,816
7. Restricted for endowment purposes
The amount restricted for endowment purposes is a bequest from Gordon Wright, which has externally imposed restrictions that the resources be maintained in perpetuity.
Calgary Humane Society for Prevention ofCruelty to Animals Notes to the financial statements December 31, 2013
Page 10
8. Restricted funds
(a) Externally restricted funds
Expenses from the restricted funds are restricted by the terms of the respective bequests and are required to be used as follows:
Alberta Liquor and Gaming funds - Restricted for use as per gaming licences.
ARC Resources Fund - Restricted for use to subsidize tuition fees for children to attend Humane Education summer and winter day camps.
Benny’s Fund - Restricted for use to subsidize the cost of fostering and training for animals requiring long-term care and socialization.
2013 2012$ $
Alberta Liquor and Gaming 6,362 21,671 P. & J. Snyder Humane Education Fund - 117 ARC Resources Fund 3,565 4,260 Benny’s Fund 5,000 -
14,927 26,048
During the year, $16,121 was transferred from externally restricted funds to unrestricted funds, (2012 - $50,724).
(b) Internally restricted funds
These amounts are internally restricted by the board of directors to be held for the following purposes:
2013 2012$ $
Emergency Fund 1,428,500 1,432,335Estate of Dr. Robert Lundberg 5,432,003 5,432,003Capital Fund 2,253,706 1,341,580
9,114,209 8,205,918
In 2013, the board of directors transferred $3,835 from the Emergency Fund. In 2012, the board transferred $10,165 to the Emergency Fund. The Emergency Fund is intended to finance the Society for three months of operations.
In 2013, the board of directors transferred the unrestricted operating surplus from 2012 to the Capital Fund to be used for future capital projects. This amounted to $1,036,232 (2012 - $645,085).
In March 2008, the board of directors approved a motion to internally restrict all funds received and expected to be received from the Estate of Dr. Robert Lundberg for the purpose of achieving the strategic goals for the Society.
9. Fundraising expenses
As required under the Charitable Fund-raising Act of Alberta, the Society reports that approximately $261,033 was paid as remuneration to employees primarily responsible for fundraising in the year ended December 31, 2013 (2012 - $239,027).
Calgary Humane Society for Prevention ofCruelty to Animals Notes to the financial statements December 31, 2013
Page 11
10. Financial instruments
The Society, as part of its operations, carries a number of financial instruments. It is management’s opinion that the Society is not exposed to significant interest rate, currency or credit risks arising from these financial instruments except as otherwise disclosed.
Interest rate risk
Interest rate risk is the risk that the fair value of a financial instrument might be adversely affected by a change in the interest rates. Changes in market interest rates may have an effect on the cash flows associated with certain financial assets, known as cash flow risk, and on the fair value of certain financial assets, known as price risk.
Foreign currency risk
The Society enters into investment transactions denominated in United States currency for which the related revenue, expenses, cash and marketable securities balances are subject to exchange rate fluctuations. As at December 31, 2013, foreign denominated cash and marketable securities were as follows:
2013 2012$ $
Cash 207,070 130,884Marketable securities 1,123,872 1,646,135
1,330,942 1,777,019
Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. In seeking to manage the risks for foreign exchange rate fluctuations, the Society closely follows exchange rates and management monitors investment performance monthly.
CALGARY HUMANE SOCIETY2013 SUMMARY OF REVENUE AND EXPENSE BY PROGRAM ACTIVITY
Summary of Revenue By Program: Summary of Expenses by Program:
Animal Care & Comfort 676,153 9.0% Animal Care & Comfort 2,120,362 36.9%Animal Adoptions 752,582 10.0% Animal Adoptions 669,461 11.7%Community Outreach 422,272 5.6% Animal Investigation & Protection 389,757 6.8%Community Grants 264,980 3.5% Community Outreach 811,348 14.1%Investment Income 1,157,794 15.3% Fundraising 743,951 13.0%Resource Development programs and events 2,986,354 39.6% Administrative 624,276 10.9%Bequest and Legacy Gifts 1,288,339 17.1% Facility 380,979 6.6%
7,548,474 100.0% 5,740,134 100.0%Amortization 601,588.00
6,341,722
9%
10%
6%
3%
15% 40%
17%
Animal Care & Comfort Animal Adoptions Community Outreach Community Grants Investment Income Resource Development programs and events Bequest and Legacy Gifts
37%
12% 7%
14%
13%
11% 6%
Animal Care & Comfort Animal Adoptions Animal Investigation & Protection
Community Outreach Fundraising Administrative
Facility
FOOD BANK
