METIS NATION OF ALBERTA ASSOCIATION

FORT MCMURRAY LOCAL COUNCIL 1935

Financial Statements
Year Ended March 31, 2015

METIS NATION OF ALBERTA ASSOCIATION FORT MCMURRAY

LOCAL COUNCIL 1935
Index to Financial Statements
Year Ended March 31, 2015

INDEPENDENT AUDITORS' REPORT

Page
1-2

FINANCIAL STATEMENTS

Statement of Financial Position

Statement of Operations

Statement of Changes in Net Assets

Statement of Cash Flows

Notes to Financial Statements

7 - 11

Collins Barrow Edmonton LLP

2380 Commerce Place
10155 102 Street N.W.
Edmonton, Alberta
T5J 4G8 Canada
T. 780.428.1522
F. 780.425.8189
www.collinsbarrow.com

INDEPENDENT AUDITORS' REPORT

To the Members of Metis Nation of Alberta Association Fort McMurray Local Council 1935
We have audited the accompanying financial statements of Metis Nation of Alberta Association Fort
McMurray Local Council 1935, which comprise the statement of financial position as at March 31, 2015
and the statements of operations, changes in net assets and cash flows for the 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.
Auditors' 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 audit opinion.

(continues)

This office is independently owned and operated by Collins Barrow Edmonton LLP
The Collins Barrow trademarks are used under License.

Independent Auditors' Report to the Members of Metis Nation of Alberta Association Fort McMurray Local
Council 1935 (continued)
Opinion
In our opinion, the financial statements present fairly, in all material respects, the financial position of
Metis Nation of Alberta Association Fort McMurray Local Council 1935 as at March 31, 2015 and the
results of its operations and its cash flows for the year then ended in accordance with Canadian
Accounting Standards for Not-for-Profit Organizations.
Other Matter
The financial statements for the prior year were audited by another firm of chartered accountants who
expressed a modified opinion dated June 10, 2014, which was modified for the completeness of revenue
from fundraising and donations.
The financial statements for the year ended December 31, 2013 were compiled on a Notice to Reader
basis by another firm of chartered accountants and were unaudited.

Edmonton, Alberta
June 24, 2015

Chartered Accountants

METIS NATION OF ALBERTA ASSOCIATION FORT MCMURRAY LOCAL COUNCIL 1935

Statement of Financial Position
March 31, 2015
2015

2014

2013

(unaudited)

ASSETS
CURRENT
Cash and short-term investments (Note 3)
Accounts receivable
Prepaid expenses
Advance to related party (Note 4)

1,614,792
438,250
1,000
29,812

1,637,967
257,580
1,000
-

673,875
6,513
1,000
-

2,083,854

1,896,547

681,388

RESTRICTED CASH (Note 5)

156,374

125,277

91,580

PROPERTY AND EQUIPMENT (Note 6)

182,881

45,300

45,470

3,450

3,450

3,450

LONG-TERM INVESTMENTS
$

2,426,559

2,070,574

821,888

LIABILITIES AND NET ASSETS

CURRENT
Accounts payable and accrued liabilities (Note 7)
Deferred contributions (Note 8)

NET ASSETS
Unrestricted
Invested in property and equipment

APPROVED BY THE BOARD

_____________________________ Director
_____________________________ Director

See notes to financial statements

3

131,445
156,374

51,161
125,277

24,015
91,580

287,819

176,438

115,595

1,955,859
182,881

1,848,836
45,300

660,823
45,470

2,138,740

1,894,136

706,293

2,426,559

2,070,574

821,888

METIS NATION OF ALBERTA ASSOCIATION FORT MCMURRAY LOCAL COUNCIL 1935

Statement of Operations
Year Ended March 31, 2015
2014

2015

REVENUES
General operations
Casino
In-kind donation
Interest

2,918,638
25,684
15,000
5,586

2,964,908

EXPENSES
Cultural projects and events
Salaries and benefits
Bursaries
Goods and services tax (Note 9)
Professional fees
Honorarium
Building and occupancy costs
Amortization
Vehicle
Advertising and promotion
Conferences and meetings
Travel
Interest
Office
Bad debts
Equipment rental
Consulting and casual labour

1,560,378
724,921
119,953
112,450
90,222
47,672
23,643
22,367
6,588
6,189
5,190
534
197
-

See notes to financial statements

4

244,604

(unaudited)

2,943,287

2,720,304

REVENUES OVER EXPENSES

2,909,325
29,374
4,588

2013

990,129
466,685
146,371
40,729
27,032
26,345
12,952
17,665
8,098
5,825
5,849
1,534
2,644
1,725
1,861
-

1,641,366

1,755,444

1,187,843

1,636,978
4,388

351,826
494,010
106,097
63,671
42,700
80,402
8,935
15,095
15,783
2,695
2,664
1,115
13,085
5,129
700
1,203,907

437,459

METIS NATION OF ALBERTA ASSOCIATION FORT MCMURRAY LOCAL COUNCIL 1935

Statement of Changes in Net Assets
Year Ended March 31, 2015
Invested in
Property and
Equipment

Unrestricted

NET ASSETS - BEGINNING

OF YEAR

Revenues over (under)

expenses
Invested in property and
equipment
NET ASSETS - END OF YEAR

1,848,836

2015

45,300 $

2014

1,894,136 $

2013

(unaudited)

706,293 $

268,834

266,971

(22,367)

244,604

1,187,843

437,459

(159,948)

159,948

1,955,859

182,881

See notes to financial statements

5

$ 2,138,740

$ 1,894,136

706,293

METIS NATION OF ALBERTA ASSOCIATION FORT MCMURRAY LOCAL COUNCIL 1935

Statement of Cash Flows
Year Ended March 31, 2015
2015
OPERATING ACTIVITIES
Revenues over expenses
Items not affecting cash:
Amortization
In-kind donation

Changes in non-cash working capital:

Accounts receivable
Prepaid expenses
Accounts payable and accrued liabilities
Deferred contributions

INVESTING ACTIVITIES
Restricted cash (increase) decrease
Purchase of property and equipment
Increase in long-term investments

FINANCING ACTIVITY
Advances to related party

(DECREASE) INCREASE IN CASH AND SHORT-TERM

INVESTMENTS
Cash and short-term investments - beginning of year
CASH AND SHORT-TERM INVESTMENTS - END OF
YEAR

See notes to financial statements

6

244,604

2014

1,187,843

2013

(unaudited)

437,459

22,367
(15,000)

12,952
-

8,935
-

251,971

1,200,795

446,394

(180,670)
80,284
31,097

(251,067)
27,146
33,697

12,988
314
(2,359)
(592,210)

(69,289)

(190,224)

(581,267)

182,682

1,010,571

(134,873)

(31,097)
(144,948)
-

(33,697)
(12,782)
-

18,505
(32,428)
(2,500)

(176,045)

(46,479)

(16,423)

(29,812)

(29,812)

(23,175)

964,092

(151,296)

1,637,967

673,875

825,171

1,614,792

1,637,967

673,875

METIS NATION OF ALBERTA ASSOCIATION FORT MCMURRAY LOCAL COUNCIL 1935

Notes to Financial Statements
Year Ended March 31, 2015

1.

NATURE OF OPERATIONS
Metis Nation of Alberta Association Fort McMurray Local Council 1935 (the "Association") is a not-for-profit
organization incorporated provincially under the Societies Act (Alberta). As a not-for-profit organization under
the Income Tax Act (Canada), the Association is exempt from income taxes.
The Association's mandate is to pursue the advancement of the Mtis people of Fort McMurray and the
Regional Municipality of Wood Buffalo.

2.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a) Basis of Presentation
The financial statements were prepared in accordance with Canadian Accounting Standards for Not-for-Profit
Organizations ("ASNPO").
(b) Cash and Short -Term Investments
Cash is defined as cash on hand and cash on deposit, net of cheques issued and outstanding at the reporting
date.
Short-term investments consists of a cashable guaranteed investment certificate with a maturity of less than 90
days.
(c) Property and Equipment
Property and equipment are stated at cost less accumulated amortization. Property and equipment are
amortized over their estimated useful lives on a declining balance basis at the following rates:
Buildings
Furniture and fixtures
Motor vehicles
Equipment
Computer equipment
Computer software

10%
20%
30%
30%
45 - 100%
100%

The Association regularly reviews its property and equipment to eliminate obsolete items. Government grants
are treated as a reduction of property and equipment cost.
Property and equipment acquired during the year are not amortized until they are placed into use.
(d) Impairment of Long Lived Assets
The Association tests for impairment whenever events or changes in circumstances indicate that the carrying
amount of the assets may not be recoverable. Recoverability is assessed by comparing the carrying amount to
the projected future net cash flows the long-lived assets are expected to generate through their direct use and
eventual disposition. When a test for impairment indicates that the carrying amount of an asset is not
recoverable, an impairment loss is recognized to the extent the carrying value exceeds its fair value.

(continues)

METIS NATION OF ALBERTA ASSOCIATION FORT MCMURRAY LOCAL COUNCIL 1935

Notes to Financial Statements
Year Ended March 31, 2015
2.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

(e) Long-Term Investments
Long-term investments are recorded at fair value and are comprised of art work.
(f)

Revenue Recognition

Revenue derived from service contracts is initially recorded as deferred service revenue and is subsequently
recognized as income on a straight-line basis over the term of the contracts.
The Association follows the deferral method of accounting for contributions. Restricted contributions such as
casino revenue are recognized as revenue in the year in which the related expenses are incurred. Unrestricted
contributions such as donations and fees from fundraising events are recognized as revenue when received or
receivable if the amount to be received can be reasonably estimated and collection is reasonably assured.
(g) Contributed Services
The work of the Association is dependent on volunteer services contributed by many members. The services
are not normally purchased by the Association and because of the difficulty of determining their fair value,
contributed services are not recognized in the financial statements.
(h) Use of Estimates
The preparation of financial statements in conformity with Canadian Accounting Standards for Not-for-Profit
Organizations requires management to make estimates and assumptions that affect the reported amount of
assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the period. Significant estimates used in the
preparation of the financial statements include the useful lives of property and equipment in order to calculate
amortization, accrued liabilities and deferred contributions. Such estimates are periodically reviewed and any
adjustments necessary are reported in earnings in the period in which they become known. Actual results could
differ from these estimates.
(i)

Financial Instruments

Measurement of Financial Instruments

The Association initially measures its financial assets and financial liabilities at fair value.
The Association subsequently measures its financial assets and financial liabilities at amortized cost.
Financial assets measured at amortized cost include cash, accounts receivable, restricted cash and long-term
investments.
Financial liabilities measured at amortized cost include accounts payable and accrued liabilities.
Impairment
Financial assets measured at cost are tested for impairment when there are indicators of impairment. The
amount of the write-down is recognized in operations. A previously recognized impairment loss may be
reversed to the extent of the improvement, directly or by adjusting the allowance account, provided it is no
greater than the amount that would have been reported at the date of the reversal had the impairment not been
recognized previously. The amount of the reversal is recognized in operations.

METIS NATION OF ALBERTA ASSOCIATION FORT MCMURRAY LOCAL COUNCIL 1935

Notes to Financial Statements
Year Ended March 31, 2015

3.

CASH AND SHORT-TERM INVESTMENTS

2015
$

Cash
Short-term investments

2014

1,594,792
20,000
1,614,792

2013

1,061,699
576,268

302,195
371,680

1,637,967

673,875

Short-term investments consists of a guaranteed investment certificate bearing interest at 0.65% per annum,
maturing March 2016.

4.

ADVANCES TO RELATED PARTY

The Association paid various expenses on behalf of Infinity Metis Corporation, a wholly own subsidiary of the
Association. As at March 31, 2015, a receivable of $29,812 (2013 - $Nil; 2012 - $Nil) was due from Infinity
Metis Corporation and is due on demand. The Association is expecting to receive payment within the next fiscal
year.
All transactions with related parties have occurred in the normal course of business and are measured at the
exchange amount, which is the amount of consideration established and agreed to by the related parties.

5.

RESTRICTED CASH
Restricted cash is comprised of $156,374 (2013 - $125,277; 2012 - $91,580) in proceeds from casinos, which
can only be used in accordance with the licensing agreements of the Alberta Gaming & Liquor Commission.

6.

PROPERTY AND EQUIPMENT

Cost
Buildings
Furniture and fixtures
Motor vehicles
Equipment
Computer equipment
Computer software

Accumulated
amortization

2015
Net book
value

2014
Net book
value

2013
Net book
value

117,839 $
62,115
33,354
15,000
25,080
1,544

9,387 $
21,729
13,589
2,250
23,552
1,544

108,452 $
40,386
19,765
12,750
1,528
-

12,931
17,210
11,784
3,375
-

254,932 $

72,051 $

182,881 $

45,300 $

10,431
12,368
16,835
5,836
45,470

METIS NATION OF ALBERTA ASSOCIATION FORT MCMURRAY LOCAL COUNCIL 1935

Notes to Financial Statements
Year Ended March 31, 2015

7.

ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

Included in accounts payable and accrued liabilities is the following government remittance payable:
2015
$

Source deductions
Goods and services tax

8.

2014

18,603
-

2013

5,737

DEFERRED CONTRIBUTIONS
Deferred contributions represent amounts received for specific purposes which have not been expended at
year-end.
Balance,
beginning of
year
Casino

9.

Contributions
received

125,277 $

Recognized
as Revenue

56,781 $

(25,684) $

2015

2014

156,374 $

125,277 $

2013
91,580

GOODS AND SERVICES TAX

A Goods and Services Tax (GST) audit was conducted by the Canada Revenue Agency, resulting in the
Association owing $67,858 in GST remittances. The Association paid the amount in full in January 2015 and
closed their GST account. The GST expense consists of the remittances paid on the audit as well as
accumulated GST paid on taxable supplies for all periods up to the cancellation date of the GST account.

10

METIS NATION OF ALBERTA ASSOCIATION FORT MCMURRAY LOCAL COUNCIL 1935

Notes to Financial Statements
Year Ended March 31, 2015

10. FINANCIAL INSTRUMENTS

The Associations financial instruments consist of cash and short-term investments, accounts receivable,
restricted cash, long-term investments and accounts payable and accrued liabilities.
The Association is exposed to the following risks through its financial instruments:
Credit risk
Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by
failing to discharge an obligation. Accounts receivable are generally amounts due from sponsors. The
Association does not believe it is subject to any significant credit risk.
Liquidity risk
Liquidity risk arises from the possibility that the Association might encounter difficulty in settling its debts or in
meeting its obligations related to financial liabilities. It is the Association's opinion that there is no significant
liquidity risk as of March 31, 2015.
Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because
of changes in market interest rates. The Association is exposed to interest rate risk arising on its interest
bearing assets.

11. COMPARATIVE FIGURES

Some of the 2013 and 2014 comparative figures have been reclassified to conform to the current year's
presentation.

11