The Yukon Foundation
Financial Statements
April 23, 2008
Auditors'
Report
To the Directors of
The Yukon Foundation
We have audited the statement of financial
position of The Yukon Foundation as at December 31, 2006 and the statements of
operations and changes in net assets for the year then ended. These financial statements are the
responsibility of the Foundation's management. 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 plan and perform an audit to obtain reasonable assurance whether the
financial statements are free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation.
In common with many charitable
organizations, the Foundation derives fund balances from donations, 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 the organization and we were not able to determine whether any
adjustments might be necessary to fund balances and distributable income.
In our opinion, except for the
effect of adjustments, if any, which we might have determined to be necessary
had we been able to satisfy ourselves concerning the completeness of the
donations referred to in the preceding paragraph, these financial statements
present fairly, in all material respects, the financial position of the
Foundation as at December 31, 2006 and the results of its operations for the
year then ended in accordance with Canadian generally accepted accounting
principles.
Whitehorse, Yukon
April 23, 2008 |
Chartered
Accountants |
The Yukon
Foundation
Statement of Operations
| For the year ended
December 31, |
2007 |
2006 |
Revenue
Investment |
$179,879 |
$147,688 |
| Administrative |
18,652 |
27,220 |
|
| |
198,531 |
174,908 |
| |
|
|
Expenditures
Advertising |
1,091 |
972 |
| Annual general meeting |
1,925 |
1,572 |
| Communications |
985 |
1,494 |
| Contracts |
27,521 |
23,485 |
| Office |
3,028 |
1,975 |
| Professional fees |
4,915 |
4,198 |
|
| |
39,465 |
33,696 |
| |
|
|
| Excess of revenue over expenditures |
$159,066 |
$141,212 |
The Yukon
Foundation
Notes to Financial Statements
December
31, 2007
1. Nature
of Organization
The Yukon Foundation was incorporated under the
Societies Ordinance of the Yukon and continued under the Yukon Foundation Act
on May 3, 1995. The objects of the
foundation are to promote educational advancement and scientific or medical
research for the enhancement of human knowledge in the Yukon; to promote the
cultural heritage of the Yukon; and to provide support intended to contribute
to the mental, cultural and physical well being of the residents of the
Yukon. The following is a summary of the
significant accounting policies used by management in the preparation of these
financial statements.
(a) Revenue
recognition
The Foundation follows the deferral
method of accounting for contributions. Restricted contributions are recognized
as revenue in the year in which related expenses are incurred. Unrestricted
contributions are recognized as revenue when received or receivable if the
amount to be received can be reasonable estimated and collection is reasonable
assured. Contributed principal fund contributions are recognized as direct
increases in net assets.
(b) Bequests
and grants
Bequests are recorded upon
receipt. Grants are recorded when
approved by the Foundation.
(c) Investment income
Interest income is accrued as
earned.
(d) Investments
The Foundation follows the cost
method of accounting for its investments, written down for any permanent
impairment in value.
(e) Premiums and discounts on bonds
Premiums and discounts on bonds
purchased by the Foundation are amortized on a straight-line basis over the
remaining months until the maturity of the investment.
(f) Contributed services
Volunteers
contribute significant time to assist in the Foundation in carrying out its
objectives. Because of the difficulty of determining the fair value of this
time, contributed services are not recognized in these financial statements.
(g) Financial instruments
All significant financial assets,
financial liabilities and equity instruments of the Foundation are either
recognized or disclosed in the financial statements together with available
information for a reasonable assessment of future cash flows, interest rate
risk and credit risk.
2. Future Impact of Recently Issued Standards
Accounting Changes
Effective January 1, 2007, the Society implemented the new CICA Handbook Section 1506 "accounting changes". Under these new recommendations, voluntary changes in accounting
policy are permitted only when they result in the financial statements providing reliable and more
relevant information. This section requires changes in accounting policy to be applied
retrospectively unless doing so is impracticable, requires prior period errors to be corrected
retrospectively and requires enhanced disclosures about the effects of change in accounting
policies, estimates and error on the financial statements. These recommendations also require the disclosure of new primary sources of generally accepted
accounting principles that have been issued that the Society has not adopted because they are not
yet effective.
The impact of the adoption of this Section will have on the Society's financial statements will
depend on the nature of future accounting changes.
Capital Disclosures
In December 2006, the CICA issued Handbook section 1535 "Capital disclosures" which is
effective for years beginning on or after October 1, 2007. The section specifies the disclosure of
(i) an entity's objectives, policies, and processes for managing capital; (ii) quantitative data about
what the entity regards as capital; (iii) whether the entity has complied with any capital
requirements; and (iv) if it has not complied, the consequences of such non-compliance. This new
Section relates to disclosures and did not have an impact on the Society's financial results.
Financial Instruments
In January 2005, the CICA issued Handbook Section 3855, "Financial instruments - Recognition
and Measurement" and Section 3861, "Financial Instruments - Disclosure and Presentation." Both
sections apply to interim and annual financial statements for fiscal periods beginning on or after
October 1, 2007 for non-publicly accountable enterprises. In addition in December 2006, the CICA
issued Handbook Section 3862, "Financial Instruments - Disclosures" and Section 3863,"Financial Instruments - Presentation" to replace Section 3861. These sections apply to interim
and annual financial statements for fiscal periods beginning on or after October 1,2007. The
Society will not adopt Section 3861 and will adopt Sections 3862 and 3863.
Section 3855 prescribes when a financial asset, financial liability or non-financial derivative is to be
recognized on the balance sheet and at what amount, requiring fair value or cost-based measures
under different circumstances. Section 3862 establishes standards for disclosures about financial
instruments and non-financial derivatives and identifies the information that should be disclosed
about them. Section 3863 establishes standards for presentation of financial instruments and nonfinancial
derivatives. These sections apply to interim and annual financial statements for fiscal
periods beginning on or after October 1, 2007 for non-publicly accountable enterprises and will be
adopted by the Society on January 1, 2008. Transitional provisions are complex and vary based on
the type of financial instruments under the consideration. The effect on the Society's financial
statements is not expected to be material.
3. Consolidated Trust Fund
The Consolidated Trust Fund comprises those assets over which the Foundation exercises
discretionary investment control within the guidelines established by the Board of Directors. Once
the funds are allocated, the income on the dedicated funds is restricted to the purpose of the fund.
4. Investments
| |
2007 |
2006 |
| Common shares |
$12,554 |
$24,896 |
| Cash and mutual funds |
545,314 |
813,912 |
| Fixed
Income |
2,962,928 |
2,425,063 |
|
| |
$3,520,796 |
$3,263,871 |
| |
|
|
| Consolidated trust fund assets |
$3,421,518 |
$3,168,850 |
| Cash
and short-term investments |
99,278 |
95,021 |
|
| |
$3,520,769 |
$3,263,871 |
The market value of the investments at December 31,
2007 is $3,509,087 (2006 - $3,182,698)
5. Life Insurance
Five donors pay monthly premiums for life insurance policies where the Yukon Foundation is the
beneficiary. Total benefits payable to the Foundation upon death of a donor, based on the current
policies, would be $56,354, $68,079, $15,000, $25,000 and $18,445 respectively. In addition there
is one life insurance policy on which no premiums are being paid which has a benefit payable to
the foundation of $24,392. The donors are issued charitable donation receipts in the amount of the
premium they pay for their policy in the given year. The total cost to the donors of $6,768 is not
recorded in the accompanying financial statements.
6. Statement of Cash Flows
A statement of cash flows has not been presented as management does not consider it meaningful
in the circumstances.