SHUSWAP NATION TRIBAL COUNCIL SOCIETY FINANCIAL …€¦ · Trade receivables $ 1,335,323 $ 671,747...

SHUSWAP NATION TRIBAL COUNCIL SOCIETY

FINANCIAL STATEMENTS

March 31, 2019

MANAGEMENT'S RESPONSIBILITY FOR FINANCIAL REPORTING

INDEPENDENT AUDITORS' REPORT

STATEMENT OF FINANCIAL POSITION

STATEMENT OF CHANGES IN NET ASSETS

STATEMENT OF OPERATIONS

STATEMENT OF CASH FLOWS

NOTES TO FINANCIAL STATEMENTS

SUPPLEMENTARY FINANCIAL INFORMATION:INDEPENDENT PRACTITIONER'S REVIEW ENGAGEMENT REPORT SCHEDULE OF REMUNERATION AND EXPENSES - CHIEF AND COUNCILLORS

EXHIBIT G EXHIBIT G1



March 31, 2019

maria.banks

Rectangle

200-206 Seymour Street Kamloops, BC V2C 6P5

p. 250.374.5577 f. 250.374.5573 toll free. 1.877.374.5577

email. [email protected]

Norman Daley, FCPA, FCA Paul Mumford, CPA, CA Michael Parker, CPA, CA Maureen McCurdy, CPA, CASandra Blair, CPA, CA Shawn Birkenhead, CPA, CAKevin Cooper, CPA, CA Incorporated Professionals

maria.banks

Rectangle

Invested inProperty and Internally Total TotalEquipment Restricted Unrestricted 2019 2018

BALANCE, beginning of year 1,710,381$ 523,760$ 2,752,256$ 4,986,397$ 4,603,727$

Excess (deficiency) of revenues over expenses - (17,000) 1,337,231 1,320,231 178,258 Repayment of long term debt 184,671 - - 184,671 67,614 Amortization expense (200,027) - - (200,027) (178,123) Loss on disposal of equipment - - - - (8,878) Purchases of property and equipment 185,919 - - 185,919 323,799

170,563 17,000- 1,337,231 1,490,794 382,670

BALANCE, end of year 1,880,944$ 506,760$ 4,089,487$ 6,477,191$ 4,986,397$

SHUSWAP NATION TRIBAL COUNCIL SOCIETYSTATEMENT OF CHANGES IN NET ASSETS

Year ended March 31, 2019

See accompanying notes to financial statements.

Budget 2019 2018

REVENUES:Service Canada 6,503,973$ 5,153,638$ 5,395,945$ Department of Fisheries and Oceans/ISC - 500,000 500,000 Department of Fisheries and Oceans 1,690,000 1,483,252 1,251,000 Province of B.C. 608,169 727,703 209,947 Indigenous Services Canada 2,073,000 2,152,592 1,812,722 First Nations Health Authority 1,397,751 1,396,351 740,614 Interior Health Authority 27,500 95,109 - Administrative revenue 283,666 - - Fish sales 2,450,088 2,489,584 184,583 Investment income 13,500 88,819 46,086 Unrealized gain on investments - 6,475 1,464 Miscellaneous revenue 263,515 458,234 152,855 Cost recoveries 327,184 136,891 215,755 Deferred revenue - current year 456,485 (1,436,159) (495,855) Deferred revenue - prior year 12,329 495,855 193,172

16,107,160$ 13,748,344 10,208,288

EXPENSES:Administration 264,581$ 28,064 20,996 Advertising 156,100 85,964 41,997 Bank charges 17,810 9,333 11,950 Capital purchases 187,160 185,919 323,799 Cold storage fees 10,000 4,123 1,073 Fishing and processing costs 1,280,515 1,274,183 158,777 Honoraria 328,400 230,754 182,613 Insurance 30,720 20,882 20,812 Interest on long term debt - 3,324 7,039 Loan payments 68,874 184,671 67,614 Meeting expenses 556,670 480,372 364,911 Miscellaneous expenses 68,028 33,876 41,546 Office expenses 227,147 137,821 145,368 Professional fees 1,898,510 1,569,897 951,873 Program costs 4,085,747 3,916,013 4,053,373 Property taxes 27,000 12,537 12,726 Rent 279,789 137,470 125,223 Repairs and maintenance 78,740 96,605 65,277 Salaries and benefits 3,275,804 2,835,234 2,540,616 Supplies and materials 173,973 257,551 189,185 Telephone 65,745 44,407 39,308 Training 62,036 32,750 20,117 Travel 716,171 616,787 391,544 Utilities 29,000 26,348 29,082 Vehicle expenses 128,785 203,228 180,300 Wildfire expenses - - 42,911

14,017,305$ 12,428,113 10,030,030

EXCESS OF REVENUES OVER EXPENSES 1,320,231$ 178,258$

SHUSWAP NATION TRIBAL COUNCIL SOCIETYSTATEMENT OF OPERATIONS



2019 2018CASH FLOWS FROM OPERATING ACTIVITIES:

Excess of revenues over expenses 1,320,231$ 178,258$ Adjustment for capital transactions included in operations

Capital purchases 185,919 323,799 Loan payments 184,671 67,614

(Increase) decrease in:Grants and accounts receivable (674,169) 400,754 Inventory (67,016) 113,870 Prepaid expenses (17,225) (2,969)

Increase (decrease) in:Deferred revenue 396,977 1,138,713 Accounts payable and accruals (434,689) 361,123 Cash flows from operations 894,699 2,581,162

CASH FLOWS FROM FINANCING ACTIVITIES:Repayment of long term debt (184,671) (67,614)

Cash flows used in financing (184,671) (67,614)

CASH FLOWS FROM INVESTING ACTIVITIES:Marketable securities (32,172) (15,498)

Cash flows used in financing (32,172) (15,498)

CASH FLOWS FROM CAPITAL ACTIVITIES:Purchase of property and equipment (185,919) (323,799)

Cash flows used in capital (185,919) (323,799)

INCREASE IN CASH 491,937 2,174,251

CASH, beginning of year 5,215,657 3,041,406

CASH, end of year 5,707,594$ 5,215,657$

SHUSWAP NATION TRIBAL COUNCIL SOCIETYSTATEMENT OF CASH FLOWS



SHUSWAP NATION TRIBAL COUNCIL SOCIETYNOTES TO FINANCIAL STATEMENTS


NOTE 1. NATURE OF BUSINESS:

NOTE 2. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES:

Fund Accounting

- The Operating Fund which reports the general activities of the Society.- The Capital Fund which reports the capital assets of the Society, together with any related financing.-

-

Marketable SecuritiesMarketable securities, which consist of mutual funds, are carried at fair value.

Inventory

Property and Equipment

Secwepemc Fisheries Commission Fund which reports the activities for the fisheries resource management program.

The Shuswap Nation Tribal Council Society (the "Society") was incorporated under the BC Societies Act in theProvince of British Columbia. A tribal council is an organization established by a number of First Nations withcommon interests who voluntarily join together to provide advisory and / or program services to member FirstNations. The Society is exempt from income tax under section 149(1)(L) of the Income Tax Act .

These financial statements are prepared in accordance with Canadian accounting standards for not-for-profitorganizations. The significant accounting policies are summarized as follows:

The Society records accounting transactions using the fund accounting method generally in use for not-for-profitorganizations. The Society follows the deferral method of accounting for contributions. A fund is determined for thepurpose of carrying on specific activities or attaining certain objectives in accordance with special regulations,restrictions, or limitations. Each fund has its own statement of operations which presents the results of operationsfor the fund. The various funds have been amalgamated for the purpose of presentation in the financial statements.Details of the operations of each fund are set out in the supplementary schedules. The Society maintains thefollowing funds:

Fish inventory is recorded at the lower of cost and net realizable value. Cost is determined using the first in, first outbasis.

Property and equipment are charged directly to the appropriate fund when the expenditure is made. The cost ofproperty and equipment purchased is recorded as an increase in the property and equipment account and therelated equity account. Proceeds from disposals of property and equipment are recorded as revenue in theappropriate fund. The costs are recorded as reductions in the property and equipment account and the relatedequity account. Grants received for the purpose of property and equipment are recorded as a deferred capitalcontribution and amortized over the estimated useful life of the asset. Amortization is provided over the estimateduseful life of the assets using the straight line basis over 5 years for equipment and over the term of the lease forleasehold improvements. In addition, the office building is located on leased land and the building is amortized overthe remaining 46 year term of the land lease. No amortization is recorded in the year of acquisition and a full year'samortization is recorded in the year of disposal.

Aboriginal Skills and Employment Training Services Fund which reports the activities of training, counselling, andproviding work experience for the First Nations people.



NOTE 2. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (continued):

Property and Equipment (continued)

Revenue Recognition

Interest revenue is recorded on the accrual basis and is recognized when earned.

Miscellaneous revenue which is not related to a funding agreement is recognized when earned.

Expense Allocations

Use of Estimates

Financial Instruments

NOTE 3. FINANCIAL INSTRUMENTS:

Credit risk

Grant and contract revenue is recognized as it becomes receivable under the terms of the applicable fundingagreements. Funding received under the funding arrangements which relate to a subsequent fiscal period isreflected as deferred revenue in the year of receipt and classified as such on the Statement of Financial Position.

Administrative and building expenditures incurred during the normal course of operations are allocated to otherfunctions of the Society as set out in the contractual agreements.

The preparation of financial statements in accordance with Canadian accounting standards for not-for-profitorganizations requires management to make assumptions and estimates that have an effect on the reportedamounts of assets and liabilities and disclosure of assets and liabilities at the date of the financial statements andthe reported amounts of revenue and expenses during the year. Actual results could be different from thoseestimates.

Financial instruments are recorded at fair value when acquired or issued. In subsequent periods, financial assetswith actively traded markets are reported at fair value, with any unrealized gains and losses reported in income.Transaction costs on the acquisition, sale, or issue of these financial instruments are expensed when incurred. Allother financial instruments are subsequently reported at amortized cost adjusted by transaction costs, which areamortized over the expected life of the instrument. These instruments are tested for impairment at each reportingdate.

The Society is exposed to various risks through its financial instruments and has a comprehensive risk managementframework to monitor, evaluate and manage these risks. The following analysis provides information about theSociety's risk exposure and concentration as of March 31, 2019.

The Society is exposed to credit risk by its providers. However, because the majority of the Society's providers aregovernment agencies, credit risk concentration is low.

The Society reviews the useful lives and the carrying values of its property and equipment if events or changes incircumstances indicate that the assets might be impaired, by reference to the assets' contribution to theorganization’s ability to provide services. When assets no longer have any long-term service potential to theorganization, the assets are considered to be impaired. An impairment loss is measured at the amount by which thecarrying amount of the assets exceeds their fair value, which is estimated as the expected service potential of theassets.

Fish sales revenue is recognized when the requirements as to performance for transactions involving the sale of goods are met and ultimate collection is reasonably assured at the time of performance.



NOTE 3. FINANCIAL INSTRUMENTS (continued):

Interest rate risk

NOTE 4. ECONOMIC DEPENDENCE:

NOTE 5. MARKETABLE SECURITIES:

NOTE 6. ACCOUNTS RECEIVABLE: 2019 2018

Trade receivables 1,335,323$ 671,747$ GST rebates receivable 25,402 14,809

1,360,725$ 686,556$

NOTE 7. INVENTORY:

Included in expenditures are inventory expenses in the amount of $1,274,183 (2018 - $158,777).

NOTE 8. PROPERTY AND EQUIPMENT:Accumulated 2019 Accumulated 2018

Cost Amortization Net Cost Amortization Net

Buildings 1,457,792$ 180,303$ 1,277,489$ 1,428,048$ 150,025$ 1,278,023$ Equipment 2,420,666 1,907,260 513,406 2,277,557 1,752,100 525,457 Paving 33,556 3,495 30,061 33,556 2,796 30,760 Leasehold improvements 120,595 60,607 59,988 120,595 59,783 60,812

4,032,609$ 2,151,665$ 1,880,944$ 3,859,756$ 1,964,704$ 1,895,052$

Interest rate risk is the risk that the value of a financial instrument might be adversely affected by a change in theinterest rates. In seeking to minimize the risks from interest rate fluctuations, the Society manages exposurethrough its normal operating and financing activities. The Society is exposed to interest rate risk primarily through itsfloating interest rate bank indebtedness and credit facilities.

The Society receives a major portion of its revenue pursuant to funding arrangements with various agencies of theGovernment of Canada.

Marketable securities is comprised of RBC Select Very Conservative Portfolio.



NOTE 9. ACCOUNTS PAYABLE: 2019 2018

Trade payables 1,604,648$ 2,042,177$ Source deductions payable 44,530 41,690

1,649,178$ 2,083,867$

NOTE 10. DEFERRED REVENUE: 2019 2018

Province of BC grant 569,541$ -$ Indigenous Services Canada 551,370 423,221 Service Canada 356,079 1,091,358 First Nations Health Authority 345,040 48,541 Interior Health Authority 95,109 - BC Hydro 30,000 2,527 Westcoast Environmental Law Partnership 23,000 23,000 Ktunaxa / University of Victoria 18,126 17,641 First Peoples' Heritge Language & Culture Council 15,000 - Other income/Grants - Deadman's River Fish Habitat 3,926 3,926 Thompson Rivers University 1,000 1,000

2,008,191$ 1,611,214$

NOTE 11. LONG-TERM DEBT: 2019 2018

-$ 184,671$

Principal due in one year - (184,671)

-$ -$

NOTE 12. INTERNALLY RESTRICTED: 2019 2018

Contingency - late payment from Federal authorities 250,000$ 250,000$ Aboriginal Rights and Title 256,760 273,760

$ 506,760 $ 523,760

The Council of Chiefs has internally restricted the following programs and amounts including:

Royal Bank of Canada, loan, repaid during the year



NOTE 13. COMMITMENTS:

2020 126,323$ 2021 91,054 2022 76,613 2023 20,374 2024 10,839

325,203$

NOTE 14. EMPLOYEE BENEFITS:

NOTE 15. EMPLOYEE REMUNERATION:

The Society has entered into lease agreements for office space, office equipment, vehicles and a lease agreementfor land on which the office building is located. These lease agreements have expiry dates ranging from December2019 to October 2024. Total annual lease payments, excluding GST, over the next five years are as follows:

The Society and its employees contribute to a defined contribution pension plan. There is no obligation for pastservice of periods in which the employee was not employed. Total contributions to the plan during the year were$82,942 (2018 - $79,083).

During the year, three employees were paid in excess of $75,000, for a total of $285,292.

EXHIBITSUPPLEMENTARY FINANCIAL INFORMATION:

GG1

INDEPENDENT PRACTITIONER'S REVIEW ENGAGEMENT REPORT SCHEDULE OF REMUNERATION AND EXPENSES - CHIEF

AND COUNCILLORS



March 31, 2019

200-206 Seymour Street Kamloops, BC V2C 6P5

p. 250.374.5577 f. 250.374.5573 toll free. 1.877.374.5577

email. [email protected]

Norman Daley, FCPA, FCA Paul Mumford, CPA, CA Michael Parker, CPA, CA Maureen McCurdy, CPA, CASandra Blair, CPA, CA Shawn Birkenhead, CPA, CAKevin Cooper, CPA, CA Incorporated Professionals

EXHIBIT G1

Name of Position Number Remuneration ExpensesIndividual Title of

Months

WAYNE CHRISTIAN TRIBAL CHAIR 12 48,000$ 23,349$

SHUSWAP NATION TRIBAL COUNCIL SOCIETYSCHEDULE OF REMUNERATION AND EXPENSES

CHIEF AND COUNCILLORSYear ended March 31, 2019

SHUSWAP NATION TRIBAL COUNCIL SOCIETY FINANCIAL …€¦ · Trade receivables $ 1,335,323 $ 671,747...

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