PT Treasurer Report for 2009-10

8/7/2019 PT Treasurer Report for 2009-10

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Treasurer Report

Prepared for Members of Pride Toronto

January 25, 2011

Dear Members:

Pride Toronto faced many challenges over the past year. During a year planned for growth of our organization

and expansion of the festival, a confluence of issues compelled us to scale back plans for 2010 and make some

difficult organizational changes.

At the end of the fiscal year, Pride Toronto had a budget deficit of $431,808. This is noted in the financial

statements as excess of expenditures over revenue , including capital fund adjustments [see Financial

Statements, pg. 3].

Since Pride Toronto began the 2009/10 fiscal year with a fund balance of $322,407, the fund balance at the end of 2009/10 was $109,401 (with the inclusion of the aforementioned deficit). Stated another way, Pride Toronto began 2009/10 with retained earnings of $322,407, and ended 2009/10 with an accumulated deficit of

$109,401.

For the 2010/11 fiscal year, the board has approved a balanced budget. This balanced budget includes a

provision to replace $40,000 of the $109,401 deficit, representing the first year of a three year plan to

eliminate the shortfall.

There is no question that Pride Toronto had financial difficulties in 2009/10. However, we must commend the staff and volunteers of Pride Toronto for exercising prudence to ensure the financial situation did not end up

worse than

the

current

result.

New

accounting

systems

and

procedures

have

been

implemented

over

the

past

year with positive effect, and we continue to work with our funders and credit providers to maintain financial stability and positive cash flow.

In the attached pages I offer some answers to questions you may have about the Audited Financial Statements.

This report will be delivered at the General Meeting on January 27, 2011, and there will be an opportunity for

additional questions.

Should you have any specific, urgent concerns please contact me at [email protected] .

Respectfully,

Daniel Knox Treasurer


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Treasurer Report


APPENDIX Q&A

Why werent the Audited Financial Statements available for the Annual General Meeting in September?

Pride Torontos current bylaws require an AGM to be held no later than four months after the organizations annual event i.e. by the end of October

Unfortunately, it was not possible to prepare and approve audited financials in the time between our fiscal year end and the time the AGM must be held (as proscribed in the bylaws). Further, our fiscal year end is July 31 st, and the month of August is usually spent preparing for the audit which then takes place in September / October. This means the earliest audited financials could possibly be available would be November, which is too late for the four months requirement noted above. For the last several years, audited financial statements have been completed and ready for board approval in December or early January.

The bylaws also require that a financial report is presented at the AGM, but not that it needs to be an audited statement. This is why we presented a financial report based on the trial balance that had been submitted to the auditors. Please note that as per the Corporations Act, the audited financials are required to be made available to the members within six months of the end of the fiscal year, i.e. end January.

Why is there a difference between the numbers in the Interim Financial Report (released at the AGM) and those in the Audited Financial Statements?

The difference between the trial balance deficit of $393,218 listed in the annual report, and the final deficit of

$431,808 is about $38,000. This is accounted for by the following: Our lease agreement for Pride Torontos new offices included two months free rent, which had been

included as a $20,000 savings in the financial report. However, the auditors advised that this amount should be amortized over the full period of the lease instead of applying the entire amount to the 2009/10 fiscal year. This adjustment resulted in a difference of about $16,000 for the 2009/10 fiscal year, contributing to almost half of the discrepancy.

The interim financial report included the deferral of approximately $14,000 to the 2010/11 fiscal year, representing legal expenses incurred in preparing the charitable status application. However, the auditors advised that the amount should remain in the 2009/10 fiscal year. This adjustment resulted in a difference of about $14,000 for the 2009/10 fiscal year, contributing to a large portion of the discrepancy.

A number of year end adjustments were not included in the interim financial report, such as prepaid adjustments, miscellaneous expense reclassifications, and minor adjustments by the auditors. These adjustments also impacted the discrepancy between the reported deficit amounts.


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Why are some of the revenue and expenditure numbers so high? Did you really spend $1,159,040 on media and promotion?

Under our accounting system, we report cash received and spent. However, we also report on products or services given inkind. This would include both donations and sponsorship agreements (where in exchange for a particular service, PT provides recognition to the sponsor).

For example, if a media sponsor agreed to provide Pride Toronto with $500,000 worth of free media coverage in exchange for sponsorship recognition and benefits, this amount would be recorded under both revenue (for inkind value received) and expenditures (for media used in carrying out our work).

I have questions about specific lines or notes in the Audited Financial Statements. What can I do?

There will be time allotted at the General Meeting on January 27, 2011 for questions following the Treasurers Report and presentation of the Audited Financial Statements.

You can also contact the Treasurer at [email protected] should you have urgent concerns or are unable to attend the January General Meeting.

Documents

PT Treasurer Report for 2009-10