TECHNICAL TRAINING GROUP(STRATFORD & AREA)

FINANCIAL STATEMENTS

MARCH 3I,2AI2

Famme & Co.P r of e s s i o n a I Corpora t io tt CHARTERED ACCOUNTANTS

KEITH A. NEEB. B.Math.. C..{.

DA\ID v. BEAN. B.Math.. C.A.

BERNARD \1 LINSEMAN. B.Math.. C.A.

]EFFREY R SKUBOWTUS.8.A.. C.A.

FR.ANKLIN H. FAMME. B.B.A . C-I.M", FCIM.C-ABRADLEY J. w McNEIL.8.A.. M Acc . C.A

STEPHEN \AN DEN HENGEL. B,Acc .C A.

PETER D. BRICKMAN.8.A.. C.A.

STEPHEN I WARD. B.A.. M.Acc.. C A.

L\'NN BAST. B,B A.. C.A.

]\,IICHAEL P B, JAREMCHENKO. 8.A.. CFP. C A.

I25 ONTARIO STREETSTRATFORD. ONTARIO N5A 3HI

STRATFORD 5I9.2?I-758IFAX 519-27 t-2'137LONDON 519-432-1663FAX 5t9-432-7662ST.MARYS 519-284-1030FAX 519-284-4391

E-MAIL: office@fammeandco.on.caWEBSITE: www.fammeandco.on.ca

INDEPENDENT AUDITORS' REPORT

To the Members ofTechnical Training Group (Stratford & Area)

Stratford, Ontario

Report on the Financial Statements

we have audited the accompanying financial statements of Technical Training Group

(Stratford & Area), which comprise ihe statlment of financial position as at March 3l' 2012 and the

statement of operations, statement of surplus and statement of cash flows for the year then ended and a

,r**".y of significant accounting poticies 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 g"n",uily accepted accounting principles.and for such internal

control as management determines is necessary to enabli the preparation of frnancial statements that are

free from materi-al 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 ethiciii"q"i*ti*ts and plan-and perform-the audit to obtain

reasonable assurance about *h"ther the financial siatements are free from material misstatement'

An audit involves performing procedures to obtain audit evidence about the amounts and

disclosures in the financial statementt. rn" p-cedures selected.depend on the auditors' judgment'

including the assessment of the risks of materi'al misstatement of the hnancial statements' whether due

to fraud or error. In making those risk assessments, the auditor considers internal contol relevant to the

entity,s preparation and fair presentation of the firrancial statements in order to design audit procedures

that are appropriate in the tircumstances' but not for the purpose of expressing an opinion on the

effectiveness of the entity's internal connol. L audit also includes evaluiting the appropriateness of

accounting policies used'and the reasonableness of accounting estimates made by management' as well

asevaluatingtheoverallpresentationofthefinancialstatements.

we believe that th€ audit evidence we have obtained is sufficient and appropriate to provide a

basis for our audit oPinion.

INDEPENDENT AUDITORS' REPORT - continued

Basis for Qualified Opinion

In common with many not-for-profit organizations, the organization derives cash revenue, thecompleteness of which is not susceptible to satisfactory audit verification. Accordingly, ourverihcation of these revenues was limited to the amounts recorded in the records of the organizationand we were not able to determine whether any adjustrnents might be necessary to revenue, excess ofrevenue over expenses, assets and net assets.

Qualified Opinion

In our opinion, except for the possible effects of the matter described in the Basis for QualifiedOpinion paragraph, the financial statements present fairly, in all material respects, the financialposition of Technical Training Group (Stratford & Area) as at March 31,2012 and the results ofits operations and its cash flows for the year then ended in accordance with Canadian generally

accepted accounting principles.

f*,-'r L.

Professional CorporationChartered AccountantsAuthorized to practise public accounling by

The Institute of Chartered Accountants of Ontario

Stratford, OntarioMay 30,2012

Technical Training Group (Stratford & Area)Statement of Financial Position

As at March 3I,20I2

ASSETS

2012 20tt

$ 36,65228, I 5610,072I1,4818.842

$ 95.203

Current AssetsCashInvestment savings accounlAccounts receivableHST receivablePrepaid expenses

$ 34,63028,50828,24418,0782.948

s r12.408

LIABILITIES

Current LiabilitiesAccounts payable and accrued liabilitiesDeferred revenue

33,60728.743

22,51232.s0055.01262,350

SURPLUS

Unrestricted Surplus

Approved on Behalf of the Board:

50.058

$ 112.408:

40.191

$ 95.203'@

(See Accompanying Notes to the Financial Statements)

Technical Training Group (Stratford & Area)Statement of Surplus

For the year ended March 31,2012

2012 201 I

Balance - beginning ofyear $ 40'191 $ 40'177

Excess ofrevenues over expenditures for the year 9.867

Balance - end of year $-5ro.58 $-40,,!-9-L

(See Accompanying Notes to the Financial Statements)

Technical Training Group (Stratford & Area)Statement of Operations

For the year ended March 3I,2012

20t2

RevenuesWelding apprenticeship revenues (Schedule 1)

Pre-apprenticeship trainingApprenticeship enhancement fu ndingProgram revenueTuition revenueBooks and supplies revenueED tundingPerth Community Futures grant

Libro grantTown of St. MarysInterestMiscellaneous income

ExpendituresWelding apprenticeship expenditures (Schedule I )AdministrativeAdvertisingBookkeeping fees

Capital purchases

Co-ordinator feesProfessional feesInstructor feesInsuranceMeetingsOfficeFacilitySupplies, materials, toolsTravelWeb designProject supportInterestMiscellaneousBad debt (recovery)

Excess of revenues over expendituresfor the year

$ 126,965t634330,20743s0

102,6602,6606,ooo

10,0002,000

5687-997

119,47523,42E

3,0124,677

30"3192,6192,325

71,7791,8021,3525,0093,840

10,7032,938

16616,500

90

(r11)

$ 309,730

299.863

$ 9.867

201 i

$ 124,810

4,27069,9123,006

50,1 35

3,500

2,000454

--

258.087

109,84024,778

5,2337,112

5896,6153,750

39,6884,69',7

1,0437,9975,4109,8781,981

1,20326,000

691,840

900258.073

$_!4

(See Accompanying Notes to the Financial Statements)

Technical Training Group (Stratford & Area)Statement of Cash Flows

For the year ended March 31,2012

2012 201 1

Cash Provided By (Used In):Operating Activities

Excess ofrevenues over expenditures for the year

Net changes in non-cash current operating accountsDecrease (increase) in accounts receivableDecrease (increase) in HST receivableDecrease (increase) in prepaid expenses

Increase (decrease) in defened grants

Increase (decrease) in accounts payable

and accrued liabilities

@ecrease) in cash and cash equivalents

Cash and cash equivalents - beginning ofyear

$ 9,867 $ 14

(18,172) (3,007)(6,597) (7,505)

5,894 (6,623)(3,751) 2,500

11.09s (1.196)

$ (1,670) (1s,817)

64.808 80.625

Cash and cash equivalents - end of year $--63J38 5-64808

Cash and cash equivalents consist of cash on hand and balances with bank. Cash and cash

equivalents comprise the following balance sheet amounts:

CashInvestment savings account

34,630 36,65228.50E 28.156

$___63.138 $_64909

(See Accompanying Notes to the Financial Statements)

1.

2.

Technical Training Group (Stratford & Area)Notes to the Financial StatementsFor the year ended March 31,2012

Purpose

The Technical Training Group was incorporated by letters patent under the Ontario

Corporations Act on April 5,20b7 as a not-for-profit organization. The purpose of the organization

is to facilitate the delivery of local market-driven training to Stratford and area businesses.

Summary of Significant Accounting Policies

These financial statements have been prepared from information available within the

guidelines of Canadian generally accepted accounting principles summarized below'

(a) Capital ExpendituresUnder Canadian generally accepted accounting principles, purchases of a capital nature

are recorded ",

prop"tty, plant and-equipment and amortized over the useful lives of the

assets. Howevei "n """"pt"tte

alternitive for non-profit and charitable organizations with

revenues under $ 500,000, is to show the purchases of properfy, plant and equipment as

expenses in the year in which they are incurred. The organization follows this alternative

method of accounting for purchases of a capital nature.

In the year ended March 31,2012, the organization purchased and charged to expense

items of a capital nature totaling $ 30,3 l9 (201 I - $ 589).

(b) Revenue RecognitionThe defenal method of accounting is used for conffibutions. Restricted contributions

are recognized in the year in which the related expenses are incurred. Unrestricted

contributions "r"

,..ogoired as revenue when received or receivable if the amount can be

reasonably estimated and collection is reasonably assured.

(c) Use of Estimatespreparation of financial statements in conformity with Canadian generally accepted

accounting principles requires management to make estimates and assumptions that could

affect amounts reported as assets, liabilities, revenues and expenses. Due to measurement

uncertainty, results could differ from those estimates.

(d) Financial InstrumentsFinancial instruments are items which are cash, rights to receive cash or obligations to

pay cash at a future date. Unless otherwise noted, it is management's opinion that the

organization is not exposed to significant interest, curency or credit risks arising from

fin,ancial instruments. The fair value of these instruments approximate their carrying value.

Comparative Figures

Certain of the 2011 figures on the statement of financial position and the statement ofoperations have been reclassified to conform to the 2012 financial statement Presentation.

3.

(Schedule l)Technical Training Group (Stratford & Area)

Schedule of Operations for Welding Appreticeship ProgramsFor the year ended March 31,2012

2012 20r1

RevenuesMTCU grants

Tuition revenueBooks and supplies revenue

ExpendituresAdministrativeAdvertisingBookkeeping fees

Co-ordinator feesProfessional feesInstructor feesInsuranceMeetingsOfficeFacilitySupplies, materials, toolsTravelInterest

Excess of revenues over expendituresfor the year

$ 100,16515,70011.100

13,6441,1823,1249,4081,573

32,6321,220ttz

5,64421,43227,3522,152

$ 100,53015,6308-650

$ 126,965 12!.810

I 1,507443

9,380

zl,lgl

2084,443

22,01122,899

1,142

ll9i475 109.840

$-z4q 5-l-4.e70