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HomeMy WebLinkAboutCSD-11-160 - Arts & Culture Sustainability Fund 2012 complete.p~~~..~L 1~~ ~un~~ G~~f~~~~~~ ~f L~n~ ~.Il~i~~~~~r.~~ REPORT T0: Community and Infrastructure Services Committee DATE OF MEETING: November 28, 2011 SUBMITTED BY: Mark Hildebrand, Director, Community Programs and Services, 741-2687 PREPARED BY: Cheryl York, Arts Co-ordinator, 741-3400 Ext 3381; Mark Hildebrand, Director, Community Programs and Services, 741-2687 WARD(S) INVOLVED: All DATE OF REPORT: November 16, 2011 REPORT NO.: CSD-11-160 SUBJECT: ARTS AND CULTURE SUSTAINABILITY FUND 2012 RECOMMENDATION: That aone-time allocation of the listed investment amounts for 2012, from the Arts and Culture Sustainability Fund, be approved subject to finalization through 2012 budget deliberations. THEMUSEUM $120,000 Kitchener-Waterloo Art Gallery $ 40,000 Kitchener Waterloo Symphony $ 40,000 Allocation to be leveraged for new torrid-career organizations $ 31,000 BACKGROUND: Origin of the Arts and Culture Sustainability Fund The Arts and Culture Sustainability Fund was developed in 2010 as a result of a call to action from the community for the municipalities (local and regional) to help fund, in part, an estimated $2.5 to $5.0 million shortfall for community arts organizations. Headed by the Prosperity Council, 2008 research had shown a funding shortfall of $3.0 million, based on data collected from a survey of 27 arts and 18 funding organizations. The shortfall was estimated using figures from the accumulated debt reported by organizations. Anecdotal information also indicated that about $2 million in additional funding would be needed to put these organizations' operating budgets on a sustainable footing. Further supporting the findings above, the gap suggested by the `Earned Revenue Analysis for the Performing Arts' showed that municipal and senior government funding in the area should be increased by about $4 million, with additional increases for museums, galleries and festivals. Taking the expanded cultural sector into consideration, the general magnitude of the gap in financial resources for arts, culture and heritage operating budgets was estimated between $2.5 million and $5 million. The Prosperity Council of Waterloo, through its Task Force On Creative Enterprise, proposed the following to help stabilize arts and culture in the community: 9-1 1 Staff Report Krr~:~~ivER CommunityServicesDepartment ~w.k~~~~~r~erca 1. That there be a commitment to increase funding to arts and culture by annually in orderto address the sustainability shortfall to be funded as follows a. $1 million from increased private sector contributions, b. $1 million from increased municipal support, and c. $ 1 million increased support from provincial and federal programs the municipal and private sector support). $3 million (leveraging 2. That an "Enabling Organization" be created to support creative enterprises, the budget to be funded as follows: a. 25% by regional government b. 25% by local governments (pro-rated based on population) and c. 50% other sources (grant applications and private sector) They further suggested that the $1 million of increased municipal support could be realized by each of the municipalities, local and regional, by increasing their annual funding by $1 per capita. At the time, the City of Kitchener had in place the Arts and Culture Capacity-Building Fund. $267,000 originally earmarked for Cultural Capitals of Canada was transferred to this fund to be used for: i) supporting funding partnerships; ii) leveraging funding from other sources at a rate of 10 to 1; and, iii) supporting sustainability strategies. In response to the community's call to action and the Prosperity Council's proposal (above), $220,000 was allocated from this fund to the Arts and Culture sustainability Fund, to support the $1 per resident for arts and culture; and $47,000 was committed to the newly developed Enabling Organization as the City of Kitchener's contribution to operating costs. 2010/2011 Arts and Culture sustainability Fund Allocations The Prosperity Council's research in 2008 had concluded that a significant shortfall in funding contributed to chronic de-stabilization of the arts sector. Based on this research, the City's 2010 and 2011 allocations were meant to assist with the stabilization of 3 anchor arts organizations: THEMUSEUM, Kitchener-Waterloo Art Gallery and Kitchener Waterloo Symphony. In 2010, $20,000 of the sustainability funds was also held by the City of Kitchener in the case that there was other significant need in the arts community. In 2011, $20,000 was ear-marked to assist new to mid-career creative enterprises. These funds were held by the Creative Enterprise Enabling Organization (CEEO), who leveraged additional funding and invested in 12 separate recipients (Appendix D}. The sustainability Fund was allocated in 2010 and 2011 as follows: Organization 2010 Allocation 2011 Allocation Notes THEMUSEUM $120,000 $120,000 Financial information attached as Appendix A Kitchener-Waterloo Art Gallery 40,000 40,000 Financial information attached as Appendix B Kitchener Waterloo Symphony 40,000 40,000 Financial information attached as Appendix C Held for new tomid-career 0 20,000 To leverage funds from Creative enterprise orgs. other sources. See Appendix D Held by City of Kitchener 20,000 0 TOTAL $220, 000 $220, 000 9-2 1 Staff Report Krr~.~-~~,i~iER CommunityServicesDepartment www.kitthenerta REPORT: This report specifically addresses the 2012 allocation of the Arts and Culture Sustainability Fund and Council's continued commitment to support the arts and culture sector at the level of $1 per capita. Strafe_gv for Disfribufion of Funds 2010 to 2012 In 2010, with the input from the Board Chair of the CEEO, it was agreed by City of Kitchener, as well as the neighboring municipalities, that the strategy for the sustainability funds should be to stabilize the 3 major cultural organizations. It was decided that the formal recommendation to Council, for the distribution of the funds, would come from City staff until such time that the CEEO was in a better position to advise and potentially participate in the distribution of these investment funds. In 2011, since the CEEO had not yet fully come together as a functioning organization (the organization's Chief Executive Officer was hired March 2011 } the Board Chair met again with area municipalities to discuss the sustainability funds. Similar to 2010, the strategy was to continue to stabilize the 3 major cultural organizations. However, discussions began which addressed ways to better align the distribution of stability funds across the Region, build capacity and strengthen the creative sector. The 3 major cultural organizations received funding again in 2011, however $20,000 was earmarked to assist new to mid-career organizations. These funds were held by the CEEO, who leveraged an additional $30,000 of private sector investment to initiate a program of investing in cultural and creative organizations along with organic and emerging creative activity. Applications were received by the CEEO and considered against a number of filters including the following: • The application makes good business sense, enables longer term success of the individual or organization; • The approach leads to sustainable revenues versus short term revenues; • Across section of arts disciplines are represented; • There is a regional cross-section of individuals represented; Small, mid and large entities are represented; • It enables the overall creative value of the region in terms of talent attraction and retention; • The application moves the organization, product etc. to a tourism ready organization, product etc. They are saleable to external audiences; andlor • There is collaboration. Staff has recently met with the Chair and Chief Executive Officer of the CEEO to discuss the allocation of the sustainability funds for 2012 and to consider a strategy for 2013 and beyond. For 2012 decisions on distributing funds will remain with the City of Kitchener; staff, in consultation with the CEEO, are making recommendations for Council's consideration and approval. It has been suggested that the responsibility for the allocation and distribution of funds after 2012 could possibly migrate to the CEEO, in consultation with the municipalities, to aid in CEEO's efforts to leverage funding from the private sector and senior levels of government, and to emphasize their role in strengthening the arts and culture sector. Such a change would be subject to further discussion and the approval of Council. For 2012, staff is proposing to increase the Arts and Culture Sustainability Fund from $220,000 to $231,000. This increase reflects the population growth in the community and keeps with Council's commitment to provide $1 per capita for arts and culture. Similar to 2010 and 2011, 9-3 1 T+H~~ On~n~un~~ ~"~Y~~~S ~~ ~~~n~~n~ rk~~~~~r~er.~~ the strategy to stabilize the 3 major cultural organizations remains. Staff is recommending to fund THEMUSEUM, The Kitchener Waterloo Symphony and Kitchener-Waterloo Art Gallery to the same level as in 2011. This will be revisited in the coming year as staff and the CEEO develop a strategy for Council's consideration in 2013. Recognizing the success of the CEEO in leveraging an additional $30,000 from the City of Kitchener's 2011 investment of $20,000 for small to mid-career arts organizations, and because Council has indicated that allocations reaching small and mid-size organizations be considered a continued priority from this fund, additional dollars are being recommended in 2012 to be leveraged again by the CEEO and directed to these organizations. In summary the following allocations are being recommended. THEMUSEUM $120,000 Kitchener-Waterloo Art Gallery 40,000 Kitchener Waterloo Symphony 40,000 Allocation to be leveraged for new torrid-career organizations 31,000 TOTAL $231, 000 Benefits of 2010, 2011 Fundin_g The following benefits, as reported by the 3 anchor organizations and CEEO, have been realized. THEMUSEUM • Present high quality exhibits to almost 100,000 visitors including Titanic: The Artifact Exhibition; Searching for Tom ~ Tom Thomson -Man, Myth and Masterworks; and RAM - Rethinking Art & Machine; • Host 34,000 school children and teachers and provide them with educational opportunities forfield trips; • Give a boost to Downtown Kitchener by bringing tens of thousands of visitors to the core; • Improve tourism to Downtown Kitchener and increase business for restaurants, hotels and shops (12,000 came from outside of the Region for Titanic); • Provide access passes to low income families and newcomers to the community; • Focus more on programming and exhibits with a percentage of financial stability achieved; and • Provide an improved quality of life for the residents of Kitchener through improved economy, arts and culture and expansion of programming offered. Kitchener-Waterloo Art Gallery Benefits of past sustainability funding to the Kitchener-Waterloo Art Gallery (KWAG) are attached to this report as Appendix B. To summarize, more of the permanent collection was able to be conserved and exhibited; the quality of exhibitions was maintained or increased; quality educational programming and community outreach were designed and implemented; and progress was made towards strengthening the funding base in a time of great economic uncertainty. Plans to launch a "Major Gifts and Endowment Campaign" are imminent. KWAG's most recent audited financial statements are also attached as Appendix B. Kitchener Waterloo Symphony The Kitchener Waterloo Symphony reports significant benefits from the 2011 sustainability investment in its ability to decrease an accumulated deficit, manage shortfalls in revenue in an 9-4 1 Staff Report Krr~.~-~~,i~iER CommunityServicesDepartment www.kitthenerta economically difficult environment, and leverage provincial grants (Ontario Arts Council Investment Fund). A more detailed report and financial statements are attached as Appendix C. The Creative Enterprise Enabling Organization The CEEO launched a successful "Investment Program" project in 2011. Using the $20,000 allocation from Kitchener's sustainability fund as leverage, an additional $30,000 was raised. This supported investment in twelve small to mid-size organizations. All recipients are required to report results back to the CEEO in order to allow ongoing fine-tuning of the program and to demonstrate measureable benefits. Organizations that were invested in are listed in Appendix D. For information purposes, Appendix E shows the total funding received by all municipalities for the 3 anchor organizations for 2011. ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN: Arts and culture make important contributions to "Quality of Life" through creativity, heritage and diversity. The economic impact of arts and culture activities contributes to the economic viability of the entire community. Support for arts and culture activities helps to develop Kitchener's distinct identity as a desirable place to live and to visit. "Development" goals are also served through arts and culture adding to urban vitality and downtown development. FINANCIAL IMPLICATIONS: $220,000 will be transferred to the Arts and Culture sustainability Fund from the Economic Development Investment Fund for 2012. Ongoing support for the Arts and Culture sustainability Fund will be addressed during 2013 operating budget discussions. Staff suggests that the additional $11,000, necessary to meet the $1 per capita for arts and culture funding considering population growth, be funded using the current balance in the Arts and Culture sustainability Fund for 2012. COMMUNITY ENGAGEMENT: The Arts and Culture Advisory Committee supported the Arts and Culture sustainability Fund at a meeting held January 19, 2010. ACKNOWLEDGED BY: Jeff Willmer, Deputy CAO, Community Services Department 9-5 CSD-11-160 Arts and Culture Sustainability Funds 2012 Appendix A: THEMUSEUM financial statements for the year ended June 30, 2011 15 pages 9-6 THEMUSEUM of Ideas Transcending Objects Financial Statements For the year ended June 30, 2Q11 Contents Independent Auditor's Report Financial Statements 2 Balance Sheet 3 Statement of Fund Balances 4 Statement of Operations 5 Statement of Cash Flows fi Summary of Significant Accounting Policies 1 Notes to Financial Statements 1 ~ 9-7 ~e~: 51 ~ 5i~6 5~~0 BQ~ C~na~ ~,1.~ fax: 519 57~ 571 Tire Bauer Buildin~~ vvw.bdo,ca 150 Cart~line 5t S ~u~te 201 ~`a~erl~~ CAN NFL 0~5 Canada Independent Auditor's Report To the Board of Directors of THEMUSEUM of Ideas Transcending Objects We have audited the accompanying financial statements of THEMUSEUM of Ideas Transcending Objects, which comprise the balance sheet as at June 30, 2011 and the statements of operations, fund balances 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 generally accepted accounting principles, 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. Auditor's 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. Opinion In our opinion, the financial statements present fairly, in all material respects, the financial position of THEMUSEUM of Ideas Transcending Objects as at June 30, 2011 and the results of its operations and its cash flows for the year then ended in accordance with Canadian generally accepted accounting principles. 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Cash flows from operating activities Del"iciency of revenues over expenses for the year Items not involving cash Amortization of capital assets Amar~zation of deferred contributions -capital Increase in fair market value of endowment fund s {sz,2ss~ $ css,sss> 579,575 535,084 X508,034} (472,059) X73,076} 488,7, 87) 483,823 (95,328) Changes in non-cash working capital balances Accounts receivable Inventory Prepaid expenses Accounts payable and accrued liabilities Deferred contributions -operating Cash flows from investing activities Purchase of capital assets Proceeds from endowment fund Proceeds ondisposal ofshort-term investments Decrease in cash during the year Cash, beginning of year (5,328) (3,731) (4,7Q1} (7,546) (89,886] 29,222 19,525 {28,383) 139,040) 78,855 (203,253} (24,911 } (70,026 (248,825) - 15fi,722 200,000 34 129,974 (92,Ofi9} (73,279) (716,980) 81,621 198,601 Cash, end of year $ 8,342 $ 81,621 The acca~a~ymg summary of s~ni~cant acaaunti~g palms artd Hates aye an in~gral pa~# of these ~nanaal statement, 96- 12 THEMUSEUM of Ideas Transcending Objects Summary of Significant Accounting Policies June 30, 2011 Nature of operations THEMUSEUM of Ideas Transcending Objects ("THEMUSEUM"~ works to scan the globe for fresh, cultural content to offer the community of Waterloo Region and beyond. THEMUSEUM provides engaging experiences through programs and exhibitions that intersect art, science and technology for audiences of all ages and interests. THEMUSEUM was incorporated without share capital under the laws of the Province of Ontario on December 3, 1998, began operations during 1999 and is a registered charitable organization. Consequently, it is exempt from income tax. Revenue Recognition THEMUSEUM follows the deferral method of accounting for contributions, Unrestricted donations are recognized as revenue when received. Grants and other fundraising income are recognized as revenue when received or when they become receivable, if the amount to be received can be reasonably estimated and collection is reasonable assured. Donations in kind are recorded at their fair value as received with the exception of donated time and expertise. Famed revenue from admissions, memberships and gift shop are recognized as revenue when services are rendered or goods are delivered. Capital contributions are deferred and recognized as revenue in the year in which the amortization expense is recognized Endowment contributions are recognized as direct increases in the Endowment Fund. Distributions from the Endowment Fund are recognized as revenue in the Endowment Fund when received. 9T13 THEMUSEUM of Ideas Transcending Objects Summary of Significant Accounting Policies June 30, 2011 Fund Accounting The organization uses the principles of fund accounting. 4 eratin Fund ,_... The operating fund accounts for administrative and operational costs and is financed by earned income, fundraising and sponsorships, gifts in kind, government funding, grants and other miscellaneous income. It also records the current assets, liabilities and deficit relating to ongoing programs and administrative operations. Endowment Fund The endowment fund reports an endowment received for restricted purposes. Net assets held in the endowment fund are invested in a variety of investment vehicles. Cagitai Fund The capital fund reports the assets, liabilities, revenues and expenses related to the organization's capital assets. Capital Assets Capital assets are stated at cost less accumulated amortization. Contributed property plant and equipment are recorded at fair value, when fair value can be reasonably estimated, at the date of contribution. Amortization based on the estimated useful life of the asset is calculated as follows; Computer equipment - 2.25 years straight-line basis Computer software - 1 year straight-line basis Equipment - 5 years straight-line basis Exhibits - 5 years straight-line basis Leasehold improvements -10 to 15 years straight-line basis Website design - 5 years straight-line basis Amortization is provided at 50% in the year of acquisition and no amortization is provided in the year of disposition. Contributed Services Volunteers contribute many hours per year to assist the organization in carrying out its activities. Because of the difficulty of determining their fair value, contributed services are not recognized in the financial statements. Contributed materials are not recognized in the financial statements unless they wou~ normally be purchased by the organization and their fair market value can be ascertained. 9814 THEMUSEUM of Ideas Transcending Objects Summary of Significant Accounting Policies I~~nn 30.2011 Financial Instruments It is managements opinion that the organization is not exposed to significant interest, currency or credit risks arising from its financial instruments. All transacfions related to financial instruments are recorded on a trade-date basis. The fair values of financial instruments are determined using published price quotations, where applicable. Transaction costs relating to all financial instruments are expensed as incurred. The organization classifies its financial instruments into one of the following categories based on the purpose for which the asset was acquired. The organization's accounting policy for each category is as follows: Held-for-trading This category is comprised of cash, short-term investments and long term investments. They are carried on the balance sheet at fair value with changes in fair value recognized in the Statement of Operations. Loans and receivables ~_______ This category includes accounts receivable. They are initially recognized at fair value and subsequently carried at amortized cost, using the effective interest rate method, less any provision for impairment. Other financial liabilities Other financial liabilities includes accounts payable and accrued liabilities. These liabilities are initially recognized at fair value and subsequently carried at amortized cost using the effective interest rate method. Inventory Inventory is stated at the lower of cost and net realizable value. Cost is generally determined on the first-in, first-out basis. Use of Estimates The preparation of financial statements in accordance with Canadian generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from managements best estimates as additional information becomes available in the future. 9~s15 THEMUSEUM of Ideas Transcending Objects Summary of Significant Accounting Policies June 34.2011 New Accounting Rronouncements Recent accounting pronouncements that have been issued but are not yet effective, and have a potential implication for the company, are as follows: Accounting Standards for Not-for-Profit Organizations The Accounting Standards Board has recently approved generally accepted accounting principles ~GAAP~ for Not-for- Profit Organizations. Not-for-Profit Organizations will have the choice of adopting either International Financial Reporting Standards ~IFRS} or GAAP for Not-for-Profit Organizations for year ends beginning on or after January 1, 2412. For Organizations choosing to adapt GAAP for Not-for-Profit Organizations they would be allowed to early adopt for years ending on or after Qecember 31, 2014. Until GAAP for Not-for- Profit Organizations is adopted, Not-for-Profit Organizatons will continue to follow the current Canadian Institute of Chartered Accountants Handbook -Accounting, 9 +~ 16 THEMUSEUM of Ideas Transcending Objects Notes to Financial Statements Jun®30, 2011 1, Cash The organization's bank accounts are held at one chartered bank. The bank accounts earn nominal interest. The organization has an operating facility available to a maximum of $250,000 in January to April and $154,000 in May to December each year at the Bank's prime rate plus 0.5°/a. At June 30, 2011, the organization had not used this facility. The operating facility is secured by a general security agreement. 2. Long Term Investments During fiscal 2007, THEMUSEUM established the THEMUSEUM of Ideas Transcending Objects Endowment Fund ("Endowment Fund"}, Since its establishment, a total of $2,383,000 has been deposited with the Kitchener and Waterloo Community Foundation ("the Foundation"~ under a formal agreement whereby the Foundation will manage funds for a monthly fee. The management agreement runs until December 15, 2011. Market value, beginning of year Reinvested income Fees Distributions 2011 2010 $ 2,355,717 $ 2,2fi6,930 83,833 110, 7fi5 (58,882) (fi5,255) (190,220 (51,052 Unrealized gain during the year 2,191,248 2,2fi1,388 237,545 94,329 $ 2,428,793 $ 2,355,717 9„ 17 THEMUSEUM of Ideas Transcending Objects Notes to Financial Statements June 30, 2011 3. Capital Assets 2011 Computer equipment Computer software Equipment Exhibits leasehold improvements Website design 2010 Accumulated Cost Amortization $ 96,046 $ 75,910 $ 35,445 35,445 362,482 291,726 1,861,525 1,638,795 6,333,034 3,047,492 174,026 167,098 Accumulated Cost Amortization 73,306 $ 65,298 35,445 33,969 351,598 271,077 1,830,385 1,532,402 6,327,772 2,610,104 174,026 164,041 $ 8,862,558 $ 5,256,466 $ 8,792,532 $ 4,676,891 Net book value $ 3,606,092 $ 4,115,641 4. Accounts Payable and Accrued Liabilities Included in accounts payable is $17,802 denominated in US dollars. 5. Qeferred Contributions -Operating 2011 2010 Balance, beginning of year Contributions received Recognized during the year Balance, end of year $ 505,571 $ 426,716 466,531 505,571 X505,571 ~ ~42fi, 71 fi~ $ 466,531 $ 505, 571 912 18 THEMUSEUM of Ideas Transcending Objects Notes to Financial Statements June 30, 2011 .. 6. Deferred Capital Contributions Balance, beginning of year Contributions received for capital purposes Amortization of deferred capital contributions Current portion 2011 2010 $ 3,890,303 $ 4,205,639 - 158,723 5~ 08,034 X472,059} 3,382,2G9 3,890,303 ~505,558~ (508,034 Balance, end of year $ 2,875,711. _ $_ 3,382,269 T. Commitments THEMUSEUM leases their premises for a nominal charge from the City of Kitchener under a lease agreement entered into on December 13, 1999. The term of the lease is 49 years commencing upon the substantial completion of the leasehold improvements. The lease is to commence upon receipt of written notice of substantial completion from the consultant hired to oversee the construction. As at June 30, 2011, no formal notice had been received. THEMUSEUM has also entered into a contract for $82,500 to be paid for an exhibit taking place in the 2012 fiscal year. 8. Inter-fund Transfers During the year, the Board of Directors approved an inter-fund transfer of investment income from the Endowment Fund to the Capital Fund to cover the cost of capital acquisitions and to the Operating Fund to cover operating expenses. 9„ 19 THEMUSEUM of Ideas Transcending Objects Notes to Financial Statements June 30, 2011 9. Gifts in Kind 2011 2010 Building maintenance services Other services Exhibits Miscellaneous $ 33,185 $ 49,871 24,429 27,128 2,980 - 8,475 - $ 69,669 _$ 7fi,999 Building maintenance and other services were provided by the City of Kitchener, owner of the premises. 10. Goverr~men# Funding The Regional Municipality of Waterloo The City of Kitchener The City of Waterloo The Ci#y of Cambridge Government of Canada Province of Ontario 2011 2010 330,000 $ 307,500 129,581 85,000 39,375 3fi,875 3,500 fi,750 ?5,000 37,22fi 36,261 - ~ 613,717 $ 473, 351 9„ 20 THEMUSEUM of Ideas Transcending Objects Notes to Financial Statements June 30, 2011 11. Capital Risk Management The Organizafion's objectives when managing capital are to safeguard the Organ¢ation's ability to continue as a going concern. Capital is defined by the Organization as all general and externally restricted funds. The Operating Fund's objective is to provide working capital for the Organization's operating expenses. Deposits and withdrawals to this fund are administered by management and are authorized by Board passage of the annual operating budget. The Endowment Fund is determined by the Board and it's objective is to set aside funds for future use. The Capital Fund's objective is to provide funding for large capital asset purchases or repairs of existing capital assets. The Board determines what the adequate levels of funding in this fund are on the basis of cost-projection forecasts prepared by management as part of the annual budget. The Organization is in compliance with its externally imposed capital requirements and the Organization's overall strategy with respect to capital risk management remains unchanged from the year ended June 30, 2010. 12. Comparative Amounts The comparative information was reported on by another auditor. Certain comparative amounts presented in the financial statements have been reclassified to conform to the current yeas presentation. 9,s 21 CSD-11-160 Arts and Culture Sustainability Funds 2012 Appendix B: November 2011 Report from Kitchener-Waterloo Art Gallery: Arts and Culture Sustainability Fund 2 pages Kitchener-Waterloo Art Gallery financial statements for the year ended December 31, 2010 12 pages, including cover and table of contents 9-22 Arts and Culture Sustainability Fund November 2011 Report from Kitchener-Waterloo Art Gallery APPENDIX B The grants allocated to the Kitchener-Waterloo Art Gallery from the City of Kitchener's Arts and Culture Sustainability Fund had the following effects on our organization's efforts to achieve more fiscal stability. Within the parameters of KWAG's new Strategic Plan of which the priorities included Sustainability and Partnerships, Expanded Reach and Engagement and Community Profile and Leadership, the Sustainability Fund enabled us to do the following in 2010 and 2011: 1. Provide care for and access to our permanent collection. With these funds, the KWAG was able to put on exhibit significant works of art from the permanent collection on an ongoing basis over 2010 and 2011. We were also able to allow public access to our vaults and therefore bepro-active in engaging the community in this shared community resource. We now have an ongoing list ofcollection- basedexhibitions in our corridor space curated by community members in consultation with KWAG staff. The public can also access visuals of the permanent collection on our website. This puts us on par with our sister institutions across the country as well as internationally. Our next objective in this area will be positioning the collection for outreach in the community and Region through touring collection projects. We will also need to investigate the~nancial means of conserving more of these significant works from the collection. 2. Present original exhibitions of high quality. It is critical for a public art gallery to organize in-house exhibitions of high quality, exhibitions that set the bar and a high standard in curating by addressing topics in historical and contemporary art that will have relevance in the field of visual arts. This kind of activity ensures that the KWAG keeps its position as a leading Canadian cultural institution. Such original research will provide future generations with important information on artists working in the Region and contextualizing their practice on a national level. We were able to upgrade our exhibition status in this regard and provide our audiences with important original exhibitions curated in-house such as the KWAG Biennial, The Limits, Althea Thauberger, John Sasaki (which is touring), among others. For future programming and sustainability, we plan to implement the addition of one mini-blockbuster exhibition annually with the objective of attracting tourists as well as our local audiences. 1 of 2 9 - 23 3. Design and present meaningful education and public programming for all ages. It is this area that is witnessing the greatest growth and demand. We continue to offer school programming by offering curriculum based programming to the Public and Catholic schools as well as Family Sundays, March Break, Summer Camp, artist talks, curator tours, etc. With the additional funds we were able to expand our public and education programming providing more free events and activities that connect people to visual arts through social interaction. Such programs included Walk the Talk (Thursday evening tours through exhibitions that introduce people to the world of visual art and its language) and integrated programming with other arts organizations. We have been able to increase our programming dynamic through partnerships with Kitchener-Waterloo Symphony with an After Party at the KWAG as well as participation in CAFKA's biennial and Regional programming such as Get Off on Art with Cambridge Galleries, Clay and Glass Gallery and KWAG. Depending on future sustainability funding and to increase our programming revenues, based on the responses to our programs we will be working with multi-cultural partners such as MT Space and various multi-cultural centers on joint programming, the Kitchener Public Library on literacy and visual literacy workshops, creative thinking workshops with medical students, corporate executives and health organizations, and the development of a Youth Council. 4. Financial sustainability. We continue to work diligently on increasing our membership base, raising funds through our successful Black and Gold gala, and attract sponsorships such as that from Sun-Life Financial for Free Admission. Nevertheless the economic climate continues to be challenging and in reality the Gallery still does not have a sustainable base of funding in the current economy. During the transition between Executive Directors, although we were able to begin plans on a Maj or Gifts and Endowment Campaign, we were not able to launch it. As we currently are working on Business Plans for the next year, the Major Gift and Endowment Plan will be positioned within it as part of our usiness revenue strategy. On behalf of the Board and Staff at KWAG, we thank the City of Kitchener's support through the Arts sustainability Fund for without it, we would not have been able to accomplish what we did over the past two years. 2 of 2 9 - 24 AcPP~NDIX S THE KITCHENER-~VATERLaO ART GALLERY FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2010 9-25 THE KITCHENER-WATERLOO ART GALLERY DECEMBER 31, 2010 CONTENTS Management Responsibility for Financial Reporting Independent Auditors' Report Financial Statements Statement of Revenue and Expenditure Statement of Changes in Net Assets Financial Position Statement of Cash Flows Explanatory Financial Notes Schedule Revenue Page l 2 3 3 4 5 6-9 10 9-26 THE HITCHENER-WATERLOO ART GALLERY MANAGEMENT RESPONSIBILITY FOR FINANCIAL REPORTING DECEMBER 31, ZO10 The accompanying financial statements and all other information contained in this annual report are the responsibility of the management of The Kitchener-waterloo Art Gallery. The financial statements have been prepared by management in accordance with Canadian generally accepted accounting principles and have been approved by the Board of Directors. Preparation of financial information is an integral part of management's broader responsibilities for the ongoing operations of The Kitchener-Waterloo Art Gallery. Management maintains a system of internal accounting .and administration controls which are designed to provide reasonable assurance that transactions are accurately recorded on a timely basis, are properly approved and result in reliable financial information. Such information also includes data based on management's best estimates and judgments. Management has determined that the enclosed financial statements are presented fairly and on a consistent basis with prior years, in all material respects. The Finance Committee meets with the Director General and Manager of Finance and Administration of The Kitchener-Waterloo Art Gallery on a monthly basis and reports to the Board of Directors thereon. In addition, the Finance Committee and Board of Directors review and approve the annual financial statements. The financial statements -have. been audited by the external auditors, Graham Mathew Professional Corporation, Chartered Accountants authorized to practice public accounting by The Institute of Chartered Accountants of Ontario, in accordance with Canadian generally accepted auditing standards. The external auditors ,have full and free access to management, the Finance Committee and Board of Directors. The Independent Auditors' Report, dated March 10, 2011, expresses their opinion on the 2010 financial statements. F ogu Director' Ge»eral Shelly Mit~l~iell Manager cif F finance and Adm~ir~istratior~ 9-27 r ~~yy py it r A `}i3 {psi ~f ii iit 3f11_ar'~ ~~~4 t+tr '~+~i~1 ~ ~r'i1~f,~t'+.~it:e~ i ~~<~?~,r~ ~ ~`r~ sr '~~ j. ~~M~~~ INDEPENDENT AUDITORS' REPORT To the Members of The Kitchener-Waterloo Art Gallery We have audited the accompanying financial statements of The Kitchener-Waterloo Art Gallery (the "Gallery"), which comprise the statement of financial position as at December 31, 2010, and the statements of revenue and expenditure, changes in net asset 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 generally accepted accounting. principles, and for such internal control as management determines i~s 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 auditors' 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 qualified audit opinion. Basis for Qualified Opinion In common with many non-profit organizations, the Gallery derived revenue from fundraising and other sources, 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 Gallery and we were not able to determine whether any adjustments might be necessary to fundraising revenues, excess of revenue over expenditure and net assets. Qualified Opinion In our opinion, except for the possible effects of the matter described in the Basis for Qualified Opinion paragraph, the financial statements present fairly, in all material respects, the financial position of the Gallery as at December 31, 2010, and the results of its operations and its cash flows for the year then ended in accordance with Canadian generally accepted accounting principles. r r Cambridge, Ontario March 10, 2011 CHARTERED ACCOUNTANTS, authorized to practice public accounting by The Institute of Chartered Accountants of Ontario THE KITCHENER-WATERLOO ART GALLERY STATEMENT OF REVENUE AND EXPENDITURE YEAR ENDED DECEMBER 31, 2010 2010 2009 ~ ~ Revenue (page 10} Government grants 35,551 295,553 Arts agencies 21. ~ 74 ~ 208,000 Project grants .b9,596 155,633 Exhibitions 132794 135,565 Education 9,140 92,966 Public support ~.93,3C9 206,116 Foundations ~~,09~ 60,729 Investments note 8 . --- ,~fl ~1 15 745 .~ ~ X99 ~57 1 170 307 Expenditure Curatorial and exhibition 2~~,401 311,426 Education rograms p 172,58' 129,600 Marketing and communications 1~3,1~6 122,405 Development and fundraising 14,732 150,810 Administration ~ ~ 243,82b ~. 232,988 Depreciation and amortization 14,943 ~ 12,406 Building and occupancy ~ 12,441 109,767 33 Special projects S1,2a5 ~ 155,6 ~,_ 110 3~~ 1,225,035 Deficiency of revenue over expenditure before undernoted item 31,094 ( 54,728) ~. ,~,, Be uest income 3 88t; 153,087 ,~_ ' Excess (deficiency) of revenue over expenditure for year (= {~7,2Q~8) 98,359_ STATEMENT OF CHANGES IN NET ASSETS YEAR ENDED DECEMBER 31, 2010 Invested in Capital Internally Endowment Assets Restricted Funds Unrestricted 2010 2009 $ $ ~ ~ $ Net assets (deficiency), beginning of year 1bb3~ ~ 11,31 ~84,13~ ~ :101,'180} 30,49 208,362 Excess (deficiency) - n of revenue over ._ ,; ex enditure p ( 7,441} ( 19,70?} - . ( ~7,2~8} 98,359 Invested in capital assets 17 ~ ~ '. ~~ Contributions 2~9. . 20~ 3,729 Net assets (deficiency), end of year 9,21 ~ 11,59Q 384,13 ~ 121.~48~} 28~,4.5~ .` 310,449 The explanatory financial notes form an integral part of these financial statements. THE KITCHENER-WATERLOO ART GALLERY FINANCIAL POSITION DECEMBER 31, 2010 2010 ~ 2009 $ $ ASSETS Cash 9,$3.1 169,560 Accounts receivable tS,~~9. 2,274 Prepaid expenses 3,9~~ . 31,332 Current assets -' 1~3,~'$9 ~, 203,166 Investments Allan MacKay Curatorial Fund (note 6) , ~00,~' .Endowment ~~5,~~~ 430,543 Capital assets. (note 4) .1,000 22,982 $~~,~$G :- 656,691 LIABILITIES Accounts payable and accrued liabilities ~ ~. ~$,~5~ , ~~; 68,176 Deferred revenue ~~II ~~~ ~~~,.5~3~ .1_4~M~~.I..I~III..I.~III I.II.AI.MI.~h ' 225,309 Current liabilities :.5 ;.: ~5~~~$ 293,485 Deferred revenue, Endowment ~, ~!~,~~~ 46,409 Deferred capital contributions (note S) ~,~`~0 6,348 Deferred revenue, Allan MacKay Curatorial Fund ~~Q ~ ,,~^„_ . ,.._~. t . 5~0~~~~ ~ 346.242 NET ASSETS Invested in capital assets (note 7) "9,~21~ ~ 16,634 Internally restricted , 1~~~~ 11,381 Endowment funds - ~$4,1~~ 384,134 Unrestricted (: ~~1,~$4) ( 101,700) r ~~3,~5~ 310,449 $03,~8b 656.691 APPROVED BY THE BOARD ~. Pr~sd~r~t ~ Trrt'~SUr~~' The explanatory financial notes form an integral part of these financial statements. THE KITCHENER-WATERLOO ART GALLERY STATEMENT OF CASH FLOWS YEAR ENDED DECE MBER 31, 2010 2010 2009 ~ $ Cash flows from operating activities: Excess (deficiency) of revenue over expenditure for year ( Z7,Z4$) 98,359 Items not involving cash: Amortization of capital assets ~~,9~~ ~, 12,406 Amortization of deferred capital contributions ( 3,02) ( 4,787) ~~ r~~~ rw.rr ~~ri ~.~~irr~rr irrir.~ r (; 1~,'~G7) 105,978 Net change in non-cash working capital balances relating to operations: :, Accounts receivable ( 1~,~'fi) 8,561 Prepaid expenses ;7,41. ( 11,395) Accounts payable and accrued liabilities ( ~,a23) . 15,445 Deferred revenue 1~Q,4$~ ~ ~ ( 44,583) i~r~~~ i r~wi, rri ~r ~25.1~44 74.006 Cash flows from investment activities: Change in investments ( . 2~S,G5~) ( 51,616) Change in deferred revenue, investments ~~,$$~ ~. = ~ 51,616 Purchase of capital assets (~ I. 1.,~ ( rl .Y I i Mr1 4,149). I t`'_ . .~l . . n . ( Z~Z,'1~~) ( 4,149) Cash flows from financing activities: r Capital contributions received ~1,9~4 1,359 Internally restricted contributions ..r~wr ~~9 : ~irdrq ..rr~Nrn.nr. 3,729 ~~r.r.~i.. . ~ . ....~~3 . ~ 5~~ _I ..~ Net increase decrease in cash ~ ( ) ( '4 "~~~ ~ ,; ~ 74 945 Cash, beginning of year 1~,~b~ ~ .ir.w~r~rr 94,615 i r. r. Cash, end of year ~~,$31 169,560 Supplemental cash flow information: Interest uaid The explanatory financial notes form an integral part of these financial statements. . 23 .: 295 9-31 THE HITCHENER-WATERLOO ART GALLERY EXPLANATORY FINANCIAL NUTES YEAR ENDED DECEMBER 31, 2010 ~^i~~l~Irll~~ll ^ 1. Basis of Presentation. of Financial Statements These financial statements have been prepared by management on a going concern basis, which presumes that The Kitchener-Waterloo Art Gallery (the "Gallery") will be able to realize its assets and discharge its liabilities in the normal course of business for the foreseeable future. The Gallery has a working capital deficiency at the end of the year and a deficiency in its unrestricted fund. 2. Nature of Business The Gallery enhances interest and builds understanding of the visual arts among the public, gallery members and the' arts community in the surrounding area. This is accomplished by providing accessible public exhibitions, sustaining a significant permanent collection of artworks, delivering intriguing special events and tours and stimulating creativity in generations of children and adults, through studio workshops, lectures and seminars. The Gallery is incorporated as anon-profit organization without share capital. It is a registered .charity within the meaning of the Income Tax Act (Canada) and is exempt from income taxes. 3. Summary of Significant Accounting Policies This summary of the major accounting policies is presented to assist the reader in evaluating the financial statements contained herein. These policies are in accordance with Canadian generally accepted accounting principles and have been followed consistently in all material respects for the periods covered: (a) Amortization of capital assets The Gallery amortizes capital assets on a straight-line basis over their estimated useful lives: Computer equipment 5 years Computer software Z years Furniture, f xtures and equipment 5 years Collection management equipment S years Building improvements 20 years (b) Works of art Acquisitions of works of art and related costs are reflected through unrestricted net assets in the year they are incurred. Donations of works of art are not recorded in the accounts. The permanent art collection is presently insured for $6,904,000. (c) Financial instruments The Gallery's financial instruments are comprised of cash, accounts receivable, investments and accounts payable and accrued liabilities excluding statutory obligations. Financial instruments classified as loans and receivables and other financial liabilities are carried at amortized cost using the effective interest method. Interest income or expense is included in the statement of revenue and expenditure over the expected life of the instrument. Transaction costs are expensed when incurred. All financial instruments described as investments were designated as held-for-trading ("HFT") securities. HFT securities are carried at fair value and .the unrealized gains and losses are deferred as are realized gains and losses on sale. The fair value of all HFT securities are determined from quoted market prices. Unless otherwise noted, it is management's opinion that the organization is not subject to significant credit risk, market risk (including currency, interest rate and equity risks) or liquidity risks. Liquidity risk is the risk that the Gallery will not be able to meet all cash outflow obligations as they come due. The Gallery mitigates this risk by monitoring cash activities and expected outflows. The Gallery does not have material liabilities that can be called at the demand of a lender nor does it have material commitments for capital expenditures and there is no need for such expenditures in the near future. 2 THE HITCHENER-WATERLOO ART GALLERY EXPLANATORY FINANCIAL NOTES YEAR ENDED DECEMBER 31, 2010 .__ 3. Summary of Significant Accounting Policies (Continued) (d) Deferred revenue Deferred revenue represents revenue received for which the related expenditures have not been made. (e) Deferred capital contributions Capital contributions for the purposes of acquiring amortizable capital assets or reducing debt applicable to capital assets are deferred and amortized on the same basis as the related capital assets. (f) Endowment funds Endowment fund contributions are excluded from revenue and recognized as direct increases in net assets in the statement of changes in net assets. ,Income earned on resources held for endowment and realized and unrealized gains are deferred and recognized as income of the operating fund when used in accordance with the restrictions of the endowment fund, (g) Revenue recognition The Gallery follows the deferral method. of accounting for contributions. Restricted contributions are recognized as revenue in the year in which the related expenses are incurred. Unrestricted contributions are recognized as revenue when received or receivable, if the amount to be received can be reasonably estimated and collection is reasonably assured. Accumulated amortization Computer equipment 4Q,79'~ 35,434 Computer software _ 12,~~+~ 12,436 Furniture, fixtures and equipment : ~~,b~~ . ~ 49,113 Collection management equipment. ~1,~.2~ 41,122. Building improvements , 4~,Q~S :: 416,085 ~~~,13~, M~P.1~11~1~1 554,190, ~ I~I~~~1 Net Book Value 1 .~,U~~ ~ 22,982 5. Deferred Capital Contributions Balance, beginning of year +6,38 9,776 Grant received for purchase of equipment __ _ 1,944 1,359 11,29 ~ 11,135 Amortization ~:~ ~ X50) ~ ( ...4,787} 79!D 6 348 THE KITCHENER-WATERLOO ART GALLERY EXPLANATORY FINANCIAL NOTES YEAR ENDED DECEMBER 31, 2010 6. Allan MacKay Curatorial Fund During fiscal 2010, the Gallery received a grant in the amount of $200,000 from the City of Kitchener Musagetes Arts & Culture Fund established in the name of Allan MacKay to cover the cost of special exhibits to be held at the Gallery. Beginning in 2011, the Allan MacKay Curatorial Fund will be disbursed at a rate not to exceed $10,000 per year plus any income earned on the invested funds. Any amount not spent in a given year may be spent in any subsequent year. Income earned on the the grant monies invested by the Gallery are deferred. Purchase of capital assets, net of disposals I,9~I 4,149 Amounts funded by contributions (: 1,9~4~ . ( 1,359) ._ ~~ ~ , 2,790 Chan a in net assets invested in ca ital assets ~ ~~~ 4,829 8. Investment Income Investment income earned is reported as follows: ~ Unrestricted resources ~~ ~~2 471 Ontario Arts Council Endowment (note 10) 2,!~~7 Income earned on resources held for endowment: Unrestricted ce ~7,~~ . ~ 15,274 i . w Total investment income recognized as revenue :~~,3~ :: 15,745 9. Endowment Funds Contributions restricted for endowment funds consist of restricted donations received by the Gallery. From the time of its receipt, the endowment principal is to be maintained for not less than 10 years. All donations to the endowment fund shall be pooled in a separate account held by a third party. The Board of Directors may make a distribution in each calendar year to the operating account of the Gallery not exceeding 4% of the market value of the assets of the endowment fund on December 31 of the preceding year. No distribution is allowed in a calendar year when the market value of the assets of the endowment fund at the previous December 31 is less than 104% of the sum of all donations to the. endowment fund. However, the Board of Directors may continue distributions for two calendar years regardless of the market value of the assets in the endowment fund. After making two such distributions, there shall be no further distribution until the year after, when the market value of assets in the endowment fund exceeds 104% of the sum of all donations to the endowment fund. 9-34 THE KITCHENER-V~ATERL00 ART GALLERY __ - EXPLANATORY FINANCIAL NOTES YEAR ENDED DECEMBER 31, 2010 10. Ontario Arts Council Endowment Fund The Gallery has entered into an agreement to establish a permanent endowment fund with the Ontario Arts Council Foundation. Under the terms of the agreement, the invested capital cannot be withdrawn and only the related income can be paid to the Gallery. Accordingly, this endowment fund is not presented in these financial statements. The estimated market value of the endowment fund as at December 31, 2010 is $92,950 ($88,553 in 2009). During the year the Gallery received $2,657 from the endowment fund. 11. Commitments and Contingencies The Gallery has agreed with The Centre in the Square Inc. to occupy the Art Gallery premises fora twenty- . year period, which commenced on completion of the Art Gallery building in 1980, with successive automatic renewal periods of ten years. The Gallery has agreed to make an annual contribution to the costs related to the premises. In 2010 this amount was $87,479 ($87,251 in 2009). 12. Bank Indebtedness The Gallery has available a revolving line of credit to a maximum of $100,000. The line of credit bears interest at a rate of prime plus 1.5% and is unsecured.. 13. Restrictions on Net Assets During the prior year, the Gallery received donations towards the Art Angels fund, which. is an internally restricted fund. The donation proceeds can be used for operational purposes throughout the year under the restriction that the year ending balance in a separate bank account for the Art Angels fund must equal or exceed the amount of the donation received. At December 31, 2010 the separate bank account for the Art Angels fund had a balance of $11,588 ($11,589 in 2009). 14. Capital Management Capital is comprised of the Gallery's fund balances which includes the Endowment fund, internally restricted and unrestricted funds and the amount Invested in Capital Assets. At December 31, 2010, the Gallery's fund balances totalled $283,450 ($310,449 in 2009). The Gallery's objective with respect to capital management is to ensure the long term strength and stability of the organization. The Board of Directors and management develops the capital strategy and oversees the capital management of the Gallery. 15. Future Changes in Accounting Standards The Accounting Standards Board of The Canadian Institute of Chartered Accountants (CICA) and the Public Sector Accounting Board (PSAB) have worked together to formulate a new basis of financial reporting standards that will apply to not-for-profit organizations. These standards which were released in December 2010 are contained in Part III of the CICA Accounting Handbook and are referred to as Canadian accounting standards for not-for-profit organizations. The existing accounting standards used by not-for-profit organizations will continue to apply until these new accounting standards are adopted. The new standards are mandatory to 6e adopted for the fiscal year ending December 31, 2012. 16. Comparative Figures Comparative figures have, in some instances, been restated to conform with current year presentation. 9-35 THE KITCHENER-WATERLOO ART GALLERY SCHEDULE OF REVENUE YEAR ENDED DECEMBER 31, 2010 2410 2009 $ $ Government grants City of Kitchener -Arts Culture Sustainability Fund 41},t~0 City of Kitchener ~ ~~#~,QbS 237,069 City of Waterloo -~8,~$Cr 58,484 ___ City of Waterloo -Sustainability Funding ~8,~00 ~, 3~6,~5 ~ 295,553_„ Arts agencies Ontario Arts Council ~,~.~,~~0 128,000 Canada Council for the Arts 11,00 80,000 Arts Investment Fund ,. ~.9,~~'~ . . ,. -.~, w.w.~.~.__ ~ .: ~1,3'~A~ r;~l 208,000 Project grants Canadian Heritage ~8,53~ 61,454 City of Kitchener ~~ x,000 5,000 ArtsAccess 45,063 The Ontario Trillium Foundation ~ 3~i,0~~ ~ 39,116 Ontario Arts Council -Compass Grant ~wrl ~ ~w ~~~A~ ~~ 5 000 _I~r•~. F ~6~,5~G 155,633 .~_ Exhibitions Corporate sponsorships . ' ~1~',1~~ '~ 114,054 Exhibition fees ~{lll0n 20,300 Sale of catalogues and books _ . ^ ~^M.ww ~ S ~ ~. = ~.ww+r.w-~ w..wir~ 1,211 ~~~Ihrwy+w ~~ ~~~,'~~~ ~Yrw.NMllww~M~(~il~w~l 135,565 Education Waterloo Catholic District School Board ~,~'~0 21,750 Waterloo Region District School Board ~0,110~ 20,000 Summer employment grants '~,~~.~8 4,640 Workshop fees ~ ~~;4~' ; ~ 45,851 Tours -other groups ~ S .._ 725 .... ~wwwl~~w~1-I I Y C x ~,~~ ~~w~~ 92,966 Public support Corporate donations ~,~Q~ 8,846 Individual donations ~ 1~Q4~~ 119,408 Voluntary admissions ~ , ~,~~4~ ~ 2,177 Fundraising ~,6~3 64,435 Amortization of deferred contributions ~,~02 ~ 4,787 Other ' ~,~~' 6,463 _ , ~ ~9~.~ ~=; r l 206,116 ~Mi w ww Foundations Kitchener and Waterloo Community Foundation F ~-lli~~ 22,200 The Frank Cowan Foundation l~,ts~~' ~ 25,000 Brush with Art 5,000 Arts Education Partnerships Initiative 3,500 Other Foundations 4~~ ~ 5,029 O,~I~ ~ 60,729 Investment income 0,~4~ 15,745 Total revenue ~.,Il~,~' 1,170,307 ~-36 CSD-11-160 Arts and Culture Sustainability Funds 2012 Appendix C: November 2011 Report from Kitchener-Waterloo Symphony: Arts and Culture Sustainability Fund 1 page Kitchener-Waterloo Symphony financial statements for the year ended July 31, 2011 16 pages, including cover page 9-37 .tTC~~~.®TE.I~00 E~uv~~ ~urw~~~~ • Music ~~~~~~-~ City of Kitchener Sustainability Support: The Kitchener-Waterloo Symphony has been fortunate to receive a $40,000 Sustainability Grant from the City of Kitchener in both 2010 and 2011. This support has been in addition to our annual operating grant, and we are incredibly honoured and grateful for this support. In the 2010/11 Season, budgeted ticket sales were unrealistic given the continuing sluggish economy and the transition from GST to HST. We were very pleased with the subscription campaign, which achieved 914 more concert subscriptions than the prior season and $112,332 more in subscription revenue. Single ticket sales were flat in comparison with the prior year and below budgeted expectations by ($170,000). Overall earned revenue missed goal by ($200,000). This was offset by nearly an additional $200,000 received in government grants: $60,000 from the Region, $40,000 from the City of Kitchener, $10,000 from the City of Waterloo and $84,000 from the Ontario Arts Council Arts Investment Fund. The Annual Fund was a tough push with a mail strike and foundation giving coming in at lower than expected levels. Fortunately, we received a very generous matching grant from an individual donor. This created the momentum necessary to meet the budgeted annual fund campaign goal. With the endowment draw coming in $78,000 higher than budgeted and solid cost control across the organization, we were able to achieve a year end surplus of $102,000. As delighted as we al I are with th is year end resu It, we need to remember that the KWS still has an accumulated deficit of $530,601. We will need 6 more years of managing financial results at 2011 levels to eliminate this deficit and to sustain this incredible organization over the longer term...a challenge, but one that I know is well within our grasp. Our strategic plan and our multi-year operating plan has been built with deficit reduction as a key priority for our continued success in the future. With the 2011/12 Season underway we are only too aware of tensions within the economy right now. While we have hit some sales targets, we have also missed others. We know that our goal to reduce our accumulated deficit further, thereby strengthening this foundational cultural organization in the City of Kitchener will be a significant challenge. Given the opportunity we will request and make the case for sustainability support from the City of Kitchener for 2012. The KWS supports the Creative Enterprise Initiative and believes that the sustainability funding allocated by the City of Kitchener should be maintained as part of the strategy to ensure that arts and culture organizations can be sustainable. * Note: In reviewing the 2011 FS please note single ticket sales in 2010 included three specials that increased revenue but did not net any profit to the bottom line. 9-38 KITCHENER-WATERLOO SYMPHONY ORCHESTRA ASSOCIATION INC. 9-39 ~s ~_: . , .~~ ~d ~~ ~ ~ ~~ ~L. ~t~~rter~~ critaarrts 11~ on tr~~t ~i~t~h ~~ FI~~~ llat~rl~n 01~ ,J T~I~~~t~r~~ ~~1M ~~7~~ dn3~~~ ~+,rv~r.k~prvt~.~~ INDEPENDENT AUDITORS' REPORT T~ the 1er~~r ~ t,l~ Ii~l~r~~-lak~~l~~ yr~~i~~~ r~~r ~~i~ti~r~ la~~, 1~e 1~~ ~udi~d ~h~ ~~n~r~}~r~ ~r~~n•~l t~ra~t ~~ it~~r'~~r_ 1~u'~tr~~~ yr~~~c~r~ rh~~ ~ta~ti~n fn.p rl~ih rr~~ri ~h~ ~ta~rrtrot ~ ~r~~r~i~l p~i~i~~, •~ ~~ July 1, (~ ~ ~ the ~~~r~en~ of ~p~at.l~np df~wt ~r~d ~~~ fl~~v fir t~l ~ ~I~~ ~r~ddp end r~~~ ~rn~r~~n ~ ~~~~r ~~ ~n~f~~r~~ ~~~u~~ir~ ~~ofi~i ~~~ ~h~~ ~~~~~tvey Nn~~rrr~~~a~n. I"kr~~r~~nt is ~~p~ns~b~l~ fir ~h~e pr~~ar~~i~r~ ~ar~d fir ~~+~~a~in ~~ ~~ ~n~ni~l ~a~r~r~t in ~~ordr~c~ Frith ~r~~di~n c~~n~rlly ~c~cptd acc~un~ir~ ~rin~l, ~in~ fir t~cl~ ir~trnal r~~r~l ~n~~r~t d~r.rr~in~ i r~r t~ n~~1 the p~r~~rakiar~ ~~ fir~~r~i~~ ~~~r~~t that ,art ~ frar~ r~t~rial imj~trnen~, ~~~~ dui #~ feud o~ ~rr~or. u~ rp~nibility i to ~pr'~ ~n opini~r~ ~r~ th ~ir~r~il takmnt ha~ed on cur audit. ''~ ~ndu~d o~rr ~u~it ire ~~r~~r~ i#~ ~~~i~n ~~r~~r~ll ~cc~pt~d audi~ir~ ~r~~~rd. Th~~ ~andard r~e~uire That ~v ~r~pa with ~hic~l r~~q~aira~~r~~ r~~i ~In ~~ prf~rr~ tea audit ~ ~~b~ir~ r~~r~~~ urn! b~u~ r~a~l~er ~h~ fir~ar~ial t~~na are fry fr~ra m,at~rial rni~~~~rnn~. r~ ~~~i~ ir~~l~+~~ prf~rmrr~ ~r~dur t~ abtain audit ~ri~~ ~~~~t ~f~ ~mol~n~ ar~d dilo~~re inn the fin~rai~l t~trnat, ~h ~r~~~d~ar~~ std d~p~~d ~r~ ~~r Iurant, in~l~dir~ the ~~~~ the Pik ~f r~a~~rr~J r~it~~r~nt ~f ~~ fir~a~ial ~~t~[~~~, h~thr dui ~ gaud or rr~f.. ~r~ m~irrg ~~ r"i~C ~rar~t~p ~ ~r~~dr ink~rr~~ n~~~l rl~rnk tc~ the entity's pr~rtivr~ ~n~ fair pr~r~~a~i~n c~~ the f~n~r~i~l st~tr~~t~ in ~rdr tc~ din audit pr~~du~ tl~~t r ap~r~priat~ ~n tl~e i~curr~s~~r~~s, lout n~ ~ ~~ ~ur~~s ~ ~c~r~ssr~~ r~ ~~ini~r~ on the effe~#ivrr~ss ~~ t ntit~+'" ir~~ernal con~r~l. n auudit I~ ~r~lude e~raluat~n~ the ap~~~ri~r~~s ~f a~~untr~g p~liis ~d n~ ~~ ra~r~ablenes ~~ ~u~Cir~~ ~s~i~~~~ ~~ ~ ~m~r~~r~~r~t, ~vll pis ~r~lu~~ir~~ the ~vera I preer~~ti~~l ~f X11 fr~~r~i~l ~a~ernntsy e helie~re tl~a~ the au~d~ erde~ce ~ have ~btair~~d i s~affirei~# and a~pr~priat+~ ~ pr~~ri~e a tai fir cur ~qualifi~d audit apir~ion. ~~'~ C`~~ os b ~~ I,maa~d I"~Ir,~ p~~tner~,~ ~an~ ~ m~mtr~r f"rr~, 4f q1`y~ ~~~~ ~ y~.+ y,i~ qj. F°FiI Y~~ ~1 .aij j'~~~:r.~, p" ~j. ~.,, 'tlF ~itejr° ~4w°mk ~~ Ar~tl~nd~ent Im~r frrati, ~f~il q~l~F~~+'~~ Int~fr~y~t~o~al'k. ~ Sys cif ~~~ ~,~r°,;~~lo~~ ~:rt5~r 58~r~~5 to KPhd°v k~a +~ana ~~~ fir ~~~~~fr~ +,~i~x~~r~ fry ~m~~r~ -i~h many ch~rita~le oreni~~tior~, Iitohr~~-~trl~o r~phor~ ~`o~~etr~ ~oieti~r~ in.o. dr~~r~ rvr~u~ fr~r~ ~u~l~o dorw~ior~ er~~ fundrai,~ir~~, fh ~m~i~~ns of r~hioh i n~~ sus~~e~ptihie ~~ ~tifao~o edit rrerifioition. c~r~in~~~r, our v~ritrfign ~ ~~~ r~rrr~~ +~ ~r~i~ ~~ ~h ~r~~uni~ reo~rdd in the r~e~~r~;~ of the e~tit ~~ ~v v~r nit ~I tc~ ~t~errni~n~ v~h~l~r ~r~ ~~ijutrrb~r~~ r~ii~ r~eoer t~ rev~r~~e, ~o~ ~~ re~~en~~ ~+r r~~if~r urr~t e~et~ ~n~ ~~fii~. ~~a~ie ~i~~~r~ Ire cur ~~nir~, ~~~k fir kh pib~~ ffi~eot ~~ the r~~ft~ ~~r~h~~ ire the ~~i fir ~~lifi~ ~ini~n ~~r~rapl~, the f-~~~oiel tt~r~r~t ~r~~f f~irl~r, i~ all r~~teri~q ~~~t, tk~~ f~r~~r~~c~el position of ithnor-~~terioo ~rr~,ho~ rhtr ~i~t~on Ino. a ~t July 1j ~~1, and the resets of its ~~er~~i+~~s and its c~:sh flows for the ~~ ~hr~ r~~~ ire ~oc~c~r~a~noe v~i~~i ~nadi~n enor~l~ ~ooep~te ountir~ ri~r~i. /lP~/G «v h~r~r ~~n~~r~t,s, Lrcer~ed f'~bl'r ~u~n~~r~t '~~11~~~r~~o~ ride 9-41 KITCHE[~ER-INATERL~(] SYMPHC)NY ~RCHESTF~A ASS+aCIAT14N [NC. Sta4ement of Financial Position July 31, 2011, with camparati~e figures far 21710 Assets urrnt t: Pry yid r~~ati~n ~~ts ~4 t~1~ ,~ 1,~,~1 Liabilities and Deficit ~r~r~~ I~~~ilti: ~~ur~~ ~~f~ n crud ~i~~ilGti~~ ~p, ~~ ~mr~i~r~n~ ~note~ ~ ~ ~ a~rn~r~~rira~ n~t~ t~ f n~i~l t~tm+r~~. ir~t~r ~r~ctar 9-42 ~ ~I~~I~ ~f ~~~ ~~~r~: KITCHENER-WATERLOO SYMPHONY ORCHESTRA ASSOCIATION INC. ~~~n~ ~f per~t~~~ ~~~ n~~~ ~lu~ 1, 1 ~~~ with ~rn~r~kir~~ ~rur~ ~~r ~ ~~~ ~ 1 R~ev~r~~: Era~~ed r~r~en~~. T~~~C~~ ~n~i s~~i~e ~~~~: ~i~k~t gales ~ st~b~ri;~~~~~ 7a.~~~ ~~,'~ ~icke~ ~fes - ~ar~l~ ~i~kt ~.1~1 ~~,1 al~~ ~f ~~roce 1 ,1 ~ ~~, ~7U~~i C~r~~~S~f~ ~,~~ ~,~1 g ~ 91 ~V9~~ ~ ~... *lb ~,.~4F 1Yf 1y~1 +r ~11 +T ~}rSr Yy~'{IR~'ppl 1l IM1 }ARr ~a(~~~fIl7UYV~ ~~Il§e11M4ee ~flt~IVlc~ii~~~ G~~fi1~~I~G1$ 1,~47'p 1,~~5,71~ ~ ~r ~~ p~r~~r~~~'d~r~~~e~~ ~t ~ 4~ 7 ,~ Q ~~ ~ '9 n 4l5~aa 1 +~ J V! I~iAi ~.~V'i ~~ l r cP ~ f j P ~ ~ V ~ { ~f 1 ~~ i ~~ i + .4 q +!4 /~, R A ~i'1 ^ ~ f J I ~ PA~I FIY~ ~fl~NV ~Y~ ~ 4 i ~ }~ S I ~ ~f LI ~ ~ ~ V l Vif~ `1 ~i 4+~p1 e.4I +T 5,! ~~ y+ ~i ~{ ~4.x YpY1 ~~+ee^1 i9. l + /~ I ~L.u 4~~ I y .y ~v41' ~~CJfl~~~r ~(~f11f3'li ~r1Q~ ~ ~ - ~~.l,~j ~~ ~ .(~(~ grants; Re~i~~t ~~ ~t~t~~~ ~n~9 i~~~s of ~~~~eae~; UVaterlc~c~ end mt~~i~i~ ~~~ ~a~~:~31 ~flada ~ua~il ~, ~E~,~~~b C~r~~~ri~ ~5 ~~rr~~ill 44,4 ~~~ i,~1~,6~ "C ~~,~1 l~xp~efl~it~f~5: ~![G11~~~f~ ~rl~ ~~I$~~I~: r N-ICS ~rd' ~ ~~ ~'~ fll ~~ ~ ~'f~~' ~G~'~ ~~F~'~ ~~ ~, -_-~ / J y ~' ~ ' ^ ^ 4 J U ~1, ~iS~~ ~r~d ~.+ti1YI~k+N tir~4~F a7 ~ ~ ,~~ ~ ~y "T~ ~ pSd~ ~ 1/ e LLr~7#~ +Y M111 V!~ , y ~ } ~ 1 YI~ f ~ sfa~ s ~ ~ eSJIFtI~ ~ ~! + i~~a~+~p~4d py~~III i1pp++ iilI~~xr~~,,~~y9 y~II ~~FF r~y~ ~k~kd4r~ll Wl1 ~~~ ' 4l kllr~C7l~~. 1 ' + U4~5~1 '4II~~Br~741~ '" ~y ~ ~AVa~f " '1s+~J~ ~~~I~~$p~7f~~~ ~}f~}~f~f~1S ~~ ~~;$~ ~ti+'~~ ~ V~1/~t~ M' ~L7 Cher: f~e~el~p~~~~ ~r,ndr~~~.n~ 1 , ~ ~1 ~~5.~7 l~ri~~~ir'i~ ~~,~i~ D~.~S ~Idrr~l~esrrat~c~r~ 4~!~y~4~ ~~,4~ r~chestr~ ~~~ ~~il~Rr~g ~~r~~rvfl~ ~11:~~4 ~?~ ~~fb Ifltr~5t ~~ '~,~~ ,~,~ ~,~, ~~~al ~expan.~ikures S~~C},~~? ,1 X81 ~€~~ (~efrei~~~~~ of re~r~er~~~ ~~~ xp~n~~k~~r~ 1~,8 ~4~,7~} ~e ~~~m,~~r~ir~g r~~~~ k~ fir~~r~9 ~t~~~t. 9-43 KITCHENER-WATERLOO SYMPHONY ORCHESTRA ASSOCIATION INC. Statemem of Deficit "~'`~r ~en~d~d .~ul ~, 11, ~vi~h ~~arr~~~r~ti~re i'i~r~ fir ~~ ~~~ri~, beiinr~in ~ ~e~r ~d~fici~~~ ~f re~r~nu ~~r~r ~c~~i~~r h~~r~ ire ~nr~~ii~~ec~ in ~~ int~~~ ~I~ifi~~ ~ v~il~~~-r-al ~~ ~~p~ 1 ~,~ ~~ ~~~ ~rui~t~ unr~ali~~ed ire ~n ir~~r~~~rnnt ~~r~pr~ir~~ n~~ ~ ~ir~~rail t~~~~n~. 3 9-44 KITCHENER-WATERLOO SYMPHONY ORCHESTRA ASSOCIATION INC. Statement of Cash Flows 'r ~r~~e~ ~~I ~ , ~~ ~ , its c~a~~~r~v fi~ur~ ~~r 0 ~ ~ ~1~ ~~ a~ r~rid~ ~~r used ink: !~i~~t~r~~ ~!'S ~~~~~'~r~'~~lr~ VI ~Y~kJ 41W~ l'~~~r1~1444~~ '" I~k1~ t ~1~~ ++ ILG.III,'4~4 ~~V~JI#~~~ ~+~I~. rnarlkN~~t~r~ of ~~ita1 ~~ ~~D ~, r~~r~ItV~r~ ~~ ~~err~+d ~~~~fC r~trf~u~~~r~ {~1~t~ 8~ ~Il~ F~ ~I~V~Iu~ f~~rti ~~~~ ~d~u$~lf~t ~, ~~~q~ ~~r~~~ I~1 rl~}r~-C~~ ~+~~~III {~~rfl ~~It~~: o~4C~(}~r1~S r~~~a~~~l ~~~~ ~, Pr~pai~ ~~ra ~n~ r~~~ ~r~du~~i~n ~~~ ~,~ ,~ ~c~aunfi~ paa~~ ~n~ ~~~~~ ~~~~i~i~i ~1,~` I lf~s~I~Ls ~4..r~~~Y'4.+ 4i1 ~7~~~ e~ tidk~F"4+~ 4J~~f I~~I ~SF ~~~~FI~~IV~ 411~~ V~ ~ T ~yV~ ~nustrr~~~t. ~~~h Hof ~~~t~l ~~ ~~''1~°} ~!~ ~~,~ ~~ ~r~rea c~r~s~ ire sh ~~d ~~rt-term ~r~v~r~r~t ~~~~~} ~~ ~~ ~r~~i s~~rt-~~rm ~~n~r~r~nti ~~inr~in ~~~~r ~' ,~ ~h ~r~~ h~r~-t+~rm ir~v~r~n~, end f ~r ~ ~ 1 ~e ~m~~r~~n ~~t t~ ~innil ~~~erner~t. 4 9-45 KITCHENER-WATERLOO SYMPHONY ORCHESTRA ASSOCIATION INC. Notes to Financial Statements ~~~` r~~~ ~Gll~l ~ r ~~ 1 T~ Iitl~~r-er-"~atrl~a~ r~ h~r~ rch~r~ ~i~io~n ~nco ~~ ~~~~iati~n~ rith~~ut har ~~~it~l ur~~r the ~~ ~~ ~~ari~ ~r~~i its ~rin~i~al ti~rit~' i ~r~vi~iir~g ~l~~an p~erf~rm~r~ 1~-vr~~u~ i ~er~~er~t~ prrir=~~ril fr~~ tice~ alb, ~ tees, ir~n~, ~~r~~ri~ip and dnati~r~. ~~ i~nif~a~t a~c~~ur~tir~ p~~iie: ~a ~h ~r~d I~~rt-term in~v~~~ir~t; ah ~~ shirt-tern ir~v~~rr~ent nl~,de in~estrner~~t it6~ ~r~inal rn~turiti~ ~f tl~~e rn~r~~h or ~~ and are a~unted ~~r ~~ r~aret value. ~~~ veil un~ nvestr~e~nt; vial ~ur~~ investrr~en~s ~r ~~r~ted ~~~ at rr~arl~e~ v~~lue. Fair r~are~ ~rJues ire ~e ~~ ~~~t~ed r~~rket ripe ~ the se~uri~ies. ~reai~ ~~~uti~n costs l~re~ai~ pr+a~u~i~n ~o~sts ~r cat ir~~rr~ed ~~r tt-e yet seesan. ~ aa~a~ Bets: ~~ital assets are r~~~ded ~at f~it~rial ccs~. r~rtiti ~ ~r~vi~ied usir~~ the fll~ir~ mtf~~~ end ar~r~ual rates., t ~a~i~ Rite ~ar~r~er triht~lin~e 1 uppr~rte~ office software t~aiht~lin~e ~~ om~uter ~r~~i ~ur~e~t ~clrnir~ I~r~e ~~ t<aeh~i~~ irr~~r~~rer~er~ts trai~~-lire ~1 ~~~ Tle~hne tern tr~iht-lire ~~~~ l'uil instrumnt tr~i I~t-ling ~ ~~~. 5 9-46 KITCHENER-WATERLOO SYMPHONY ORCHESTRA ASSOCIATION INC. Notes to Financial Statements, continued '~nd~ Sul ~, ~~ 1. r~if~~n~ ac~~u~tin ~~li~i ~c~~fiinu~~d~: vr~~ r~+~~r~iti~r~ Thee o~i~ti~r~ f~~i~~v ~h ~f~rr~l mtf~~c~ ~~ ~~~r~ti~n four a~tri~u~~n ~rl~i~ r~lu~ ~~nti~~~ ~~~ r~a~t~. k~it~~ ~~trib~tian ~r r~~ni~ed rev~nu ~~ ~h~ ~~ ire rhih the relate ~~~ ~r~ ir~~~rr~~. ~Jnr~r#~ ~r~~ri~u~i~r~ ~n~J ~I~~~ ~ir~ r~~on~~e~d ~ r~~r~~u ~~~ received oar r~ei~r~i, wf the ar~~~~~ k ~ r!~d r~ ~~ r~n~l e~tirnked and ~~Il~~i~r~ a r~~r~a~l au~+~d. v~u fr~rr~ tit end er~~+ic~ ~I i r~~nied hers t~ ~r~e r provided. en~~~ rvr~~ i r~r~~d aver ~~~ rt~tP ~~ri~d. ~ef~rred r~ev~~u: ~rr~ue feci~+~ in ~advar~c, d~~i ~ in r~~ta , repr~~~r~~ r~~u r~i~rd fcr rail tie relfd civic h~~r n~ den ~rcvd~d or ~~~ r~l~td ~err~itures dare r~~~ +t ~~n r~~d, ~~ ~frrd ~pitl ~ar~tri~~ti~r~. tri~~ti~n restricted fir ~~~ p~,r~~ ~r t d~nati~r~ c~ affil ~t ~ ~f~erre~d ~n ~rti~l ir~t~ rv~nu~ on ~raih~-ling ~iP ~t rats ~rre~ndir~ v~ri~l~ tie ar~~rti~ati~n ~~~ ~ tie related coital ~~. ~~ L~~r~ate~d ~errrices. ~~~~t~~l ~vi~ r r~cc~r~i~~ ~~ t~ir fair ~rl~~t v~ ~~ fir is ri ~~r tie fair ~~rt ~rlu i ~iter~x~ir~~le. ~i~ peraticr~: ~~~ ~chet~,a earn i ~~nidre~ ~ ~eri~d ter ~~r~i rv~~ ~r~~ ~~cp~~r~~~~~r ~ recniz~. ~1~ ~ ~~~: the ~cciati~n i~ ~ rei~ter~ charit~r ~nd~er the li~c~r~~ T~~c t anal, ~ ~ucl~, is ~rpt ~rrr~~ ir~c~me taxes. 6 9-47 KITCHENER-WATERLOO SYMPHONY ORCHESTRA ASSOCIATION INC. Cotes to ~ir~nii ~tr~~r~f, a~nf in~e~d '~~r r~~e~f ~~i ~, C~'C ~. ~r~ifio~n~ a~o~~~ntnc~ ~~l~ ~or~tir~ued~: ~~ Fir~anciaC instrur~~r~te Thy s~itir~ ~ C~ified its financial instrur~r~ts fr~~vw: and h~~-ter ~n~rfr~~n'~ are classified as h~l=fir-fr~din. ~~f r~~~ivable ~ assiC~ied ~ ~n r~~ ~~iv~l. ~i~C fur~~ investrr~er~ts are cl~sifi~ v~il~hle-for-sacs. cco~nt payhl ~~ ~ru~d Ii~hiCities and Loan ~~i ~ I~afi~~ ~~ ~ati~er liahiCiti~es. The eciatia~n has elects t~ a tree ~t ~cc~~~ti~ fer re~uCa~-~v~y p~u~eh~ ~n~ i ~ ~ir~~ni~~ ~~ef. Il financial insfr~ur~er~t~ ~ ir~itr~! r~rd ~n the s~atemr~f ~f '~~~r~i~l p~ific~n at fair vl~e, ~`~ ~r~e srr~seq~rentl v~lue~ at I~ir v~lu~ or ar~n~rti~ed cst ~epen~din ~n the classl~iati~n ef~t~~1 fir the financial ~strurnen~. '~a~~nil ~f ire classified e~tl~er held-fir-tra~inj hel~to-r~tu~it, ~v~il~~le-for-alek or Coar~~ and ~e~iv~hle ~~~ financial lit~ilties are classified ~ e~hr l~~l~-fir-fr~~in or ether liabilities. ~ir~ni~l gets and Iibiliti I~sified ~ l~eld~fcr-`l~~d;ir~~ ~r m~~r~d at fair value with ch~ng~ in fair value recorded ire the ~~trn~n~ ~ operatian. ~ir~~r~~ial ~~t l~ifid as held-te-turif~r ~r Con rid receivable r~~ fn~r~il li~bilifi~s ~cCassified ~ c~fC~e~ ~i~~lfi ~r~ ~t~se~~entl rr~~ure~l t ~r~`~~~ti~d cost usir~. the ff~cfiv ir~t~r~~t mth~~. vailabCe-forTsal l~~n~r~~~l t fh~t by a ducted r~ark~t ~~~ in ~ #ave marlet are r~~e~su~ed ~ f~~ ~~lu Frith tl~e cC~~r~ ire fair r~lu recorded ire the ttmnf f ~fioi~. such wins +~~ Ise ~r reclassifi~~ t~ the fteme~nt of operations when kf~ r~lt~ fin~rtcial assef i dis~cs~d ~ Shen the decline ire I~~ ~nid~red tc be otl~er~thar~ terr~pr~r}r. future ~cc~u~~i~~ f~~r~eor changes: In ~~ce~b~r ~~~, the ~~~~ntin~ standards ~~~~ ~f the n~~i,~n ln~fitut~ ~f tiered c+ur~t~nt "-cl""~ and tC~e Public fr c~~ur~tin~ loar released tl~e ~~~untin standards i.m~actir~ ~I~e f~t~are finar~ci,al re~crtin~ fir rat-fir-profit ~raniations. These star~derds sere rieased a resu t ~f a ~oinlP ~rr~rehensi+ve s'~andard settir~ roe bar h~th ~t~ar~s. The c~ is r~espc~r~sibl fir the ~cc~~antir~ standards used b rat-for-refit orar~izatio~ns that are nit ~ndr the r~tr~l f ~ government preferred t~ {'~tl~r r~+~t-fir-profit organizations"~, Thee t~~n~r~s are efetive fer years hennin a~n or efter ~er~uer ~, 1 rga~izaticr~ lave ~r~ ~~ti~r~ t earn adopt these rye tndards. 7 9-48 KITCHENER-WATERLOO SYMPHONY ORCHESTRA ASSOCIATION INC. Notes to Financial S~a~ements, continued '~ ~~~~July ~, [~~ r ~utur+~ a~~ur~tin:9 fr~a~r ~~-~rr~s ~~r~t~nu~~: Tf~~e ~~s~i,~tia~ is ~urr~en~fy ire t pr~~ cif ~~a~lu~ir~~ tl~~ ~~~~~il i~~t ~f ~ptin t~~~ ~ch~r~~ ~c~r t~ e~ ndin Sul 1, ~1 ~p~rat~~ ~~~ ~ rc~it. Thy ~~i~i~r~ ~ ~r~k ~rtin lire ~~ edit Tk~ ~~~~in ling ~~ inert ~t tl~ bail rir~~ r~t~ I~u~ ~ °l~. ~t duly °l , ~1 ~I , t~~r ra n~ r~~ur~t d~~~ ~air~t the ~~r~#ir~~ lire T~ ~ yr~p~~r~ F~un~aiti~n In~ ~r~~~ ~ ~~rr~~~~ pint tl~~ ~~i~~i~~"~ ~~tir~ ~ir~ ~~ ~~it. Youth r~~e~r~ ~~i~1 i+un~; 1~~~ un~ rp~~~er~t `~u~~i ~r~hs~r f~an~~r~iin ~f~rt~ t~ eft +~~~h rl~~t ~~~k~~~ t~~rr~c~ ~. ~~~ 1~ ~~l~r~~, b~~~n~rr~~ ~f yr, ~~ ~~~ 1~ ~ ~,~' Fundriin r~renu~ ,~' ~~Inc~r end ~f yrF t ~~ ~ 7 8 9-49 KITCHENER-WATERLOO SYMPHONY ORCHESTRA ASSOCIATION INC. Notes to Financial Statements, continued '~'~r ~r~~e .~ul ~1, ~~ 1 p~cia9 fu~~ ~~vntinu~~~F . ~ernhar~ ~ru~ ~ur~d fihi ~ur~d ~ initi~~ed b ~f~~ ~e~~h~r~t ~am~l t~ ~ra~vi~ nn~~l ~h~l~ri~ t~ c~~a~i~ rc~~e~~a mu~i~i~r~, ~ ~~en ~ ~ j~r~~ ~I~c~i~~n ~rnmitt~ ~~ ~h ~iu~r~~+~r ~mmitt~ end ~h ~~~ ~h~~tr~ ~r~initr~~r~. ~~i ~ ~1 Lf~l~~~.,r'4.r~ ~~r4~1 ll~r 5..d~ ~P ~, 1,~~ ~ ~•~~~ ~ 5.. ~~ Int~rt ir1C0~11~ h~larhip e~r~r~~d ~~~~ --- - - ~~~ ~I~r~, ~n~ ~f ar, at ~~~ ~i ~f ~ i A'l.tr4J 4J~4F~~L.~~~ 4#~~i..~i~1~.~i.1 ~~~ ~ ~ T ~ g'4:+~1 ~~l~r~F send ~f ~r~~r, ~~ rnr~ Diu ~ ~, ~ ~ ~1 , ~rl ~e ~marial h~b~rh~~ ~Ufl~. fihi ~~nd ~~~~. ~t up bar ~.n~~ir~ ~~c~~ the ~1e~r f~rnil~r ~ r~i~e ~ Burn fr~rn anr~u~l ~~~~ir~ t~ e,~~i~ d~rvir~ r~rnher ~~ ~~e ~ni~r 1'~u~h r~h~~r~, Its ~~r ~ ~iri ~ I~%~n ~mr~it~~~ ~~ the I~'~+°lur~tr ~rnrni~t~ and ~h b'V '~~h rh~~tr~ ~~r~ini~r~~i~. C~~ ~ 10 B~i~n~, b'e~r~nin ~ per„ ~~ t ~ ,~ ~ ,~ Ir~~~re~ in~~rr~e c~i~Barhi~ ~~~~de ~~ ~~I~~, n~i f +~~r, at cat ~ ~ ,~m~l~i+~ ~nrali~e~ yin ~,' ~~~ ~~f~r~e, er~~ ~f ~~r, t rr~~~t vice ~~, X7',0 9 9-50 KITCHENER-'WATERLOO SYNIPHQ[VY ORCHESTRA ASS~QCIATIQN ANC. Notes to Financial Statements, continued Year ended July 31, 2f~11 p~~iJ ~un~ ~~c~r~t~r~u~~~: 1 ~i T~~~I ~~~ ~~~~~, ~r~d ~f ~a~~ ~t ~~t ~ 1 ur~~uf~t~~ u~reaNiz~~ ~ir~ ~ ir~`u~tr~r~t~ Tta ~~ci~l fungi, ~~ ~f fir, t rat ~+~lu~ ,~~ ,~ capital as~~: C~~ ~ ~ur~~ul~t~d Jet ~~~ hJ~ ~~~k ~t ~r~~~~r~~~i~~ ~l~ v~u up~r~i ~ff~ ~r~ar ~, ,~~ 1~ ~~, ~rr~putr ~n q~i~nn~r~t ~Q,~~~ (~,~ ,~~~ ~~~1~~~~1 r~r~~r~t ~ ~ 1,~ ~ ~~,1 ltillui~l Nr~~r~r~~~t~ ~~~ 'I,~~ ~'~ ,~~ ~i I~+~'aJ ~'4a i 9 4d~p !4P' ~~ M 'k~~~Nd.1 ~,+~ pVkF }~sd L J L I ~~~~~~~~ ' f ~V~ 'P ' E f kf'^~.IVS~ ~~k.d~t C~7~~iw7 ~~~ ld"p4~4t~ ~~~ ~ W M WL~ y Are io 9-51 KITCHENER-WATERLOO SYMPHONY ORCHESTRA ASSOCIATION INC. ot~ ~~ ~n~ni~i t~trner~~, ~~tir~~~~ ~~r ~n~d ~~I~r ~, ~ ~ ~~ L~r~ ~~abN~; ~~ l~n p~~~i f r~~-i~at~re~ b~e~inc~ ~n~ tl~~ rin~i~l ~ 1 ~,~~ i die J~~r~~ , ~. ~~~ ~~ir ~I~ ~f t~~ i~r~ ~a~~l' ~t ~u~ 1, ~1'i ~ ~1~~ ~~ - ~1}, the ~~i~ ~r~l~ ~~ ~h~ ~~an ~a~r~~l ~i~ ti~~~d ~ t~ ~~~n~ ~r~u~ o the fu~~r~ c~l~ ~is~ur~~m~~~ ~di~C~unk~~ yin ~~ in~~~ ~~ avai~~bfi ~ t ~~~i~~i~n. ~rr~d c~pr~al c~r~tr~r~~c~n; ~~ ~1 ~~I~nF ~~~innar~ ear ,~ ~p6t~l ~r~t~ibuti~n r~i~r~ du~in the ~r ~~fi~i~: T~~ ~~ti~' ~~~ ~f ~iretr ~ ir~t~rnalC r~~rit~ ~~i~l n ~~ut f~n~ ~ ~~~Id ~n r~~t ~~ ~e~ int~rn~i~ r~s~~a~t~~d ~~~~n ~r ~~~ ~~aiGa~1~ ~~r ~~~~r ~~r~~ v~~~ho~t oral ~ t~ ~~ ~f rr~tr. 1 ~ ~!~~ ~n~~rn~lly~ ~~~i~ it find n~~ ~ A~~ ~~ ~I +.f f ~~~9 ~F~'~ ~~~ 9-52 KITCHENER-WATERLOO SYMPHONY ORCHESTRA ASSOCIATION INC. ~t~ ~ Fi~rancial t~t~r~,~~t, ~~nt:inu~~ e~~ r~~e~ ~~I~r ~ P ~~ ~ ~. ~~de~rr~r~t ~~ur~: ~h ~~i~n hay r~tr~ ir~~e are~r~rent to ~etahli~ t~vv ~ermnrrt ~n~~rrrer~t f~rr~ r~ith the ~t~ri~ a!un~l ~~ur~~a~err ~n~ ~~~ Iit~han~r-J~t~e~l~ ~r~~y F~~r~ti~r~. 1~rr~er the terrri ~f th~~ rr~~, ~f~ capital arrn~t ~ ~+ith~dr~v~r~ ~d ~~l~r the ~1'~t~ in~rn pan paid' to ~~~ ~~~iatiar~. 'The eti~rte~ ~rret ~r~ ~f the endemant fungi ~ t July ~, ar~~i the ia~~m rei~r~~ ~uri~r the ~ from tl~e r~~~u~r~errt Band, are felle~v ~~~ ~1D P~rr~a received ~ 17,'1 1 F ~nnrrri~r~t: Ire ~~M tl~e eciakien hay er~~ard into ~ three year nnate~ agram~er~t with ~h centre in tyre ~uara, relatir~ t~ rental of p~en~i~a f~~ ~n~art en a par e~re~rt bi, ~vhih pir July ~, ~. l~ ~~, the seiatien err#~~i into ~ trr year ~~eer~ent v~itk~ the grad ~hatr erperatierr t~ ~ tha ~nenainc~ tenant of tha nrad ~en~re icr the r~~rrrrirrg~ Arts u~ith ~ymerrt ~rmitrnr~~ until July ~~. The cciati~a~ has lease areerr~ent~ fcr effice ~uiprn~nk ~rhicf~ have ~ay~nerrt cer~rr~ritr~rrt until ~~~, ~rer the rret fire ~i~e~il aa~, tP~~ lease c~arrrr~r~itrr~ent ara ~~ I~+: (~~ ~1~M ~~ ~, C~~ ,~ C~1 ,~~ iz 9-53 KITCHENER-WATERLOO SYMPHONY ORCHESTRA ASSOCIATION INC. ~# t~ ~innci~J t~t~m~n#, ~+~n#iriu~ ~1 ~ ~~a~te~ art ~r~n~ati~n: T~ Iii#~~r-II~trC~ mpi~a~r~y r~chtra'~I~Cur~~~r r~r~i~~~; Thy i~i~n~r-'f~rl~~ rnph~r~ rh~~~~ '~I~r~~~~r mrnit~~e~ ~"'a~ur~t~eer ~mmitt"~ i ~n ir~~~~~r~~n~ ~r~~ni~~in ~rh~~~ r~~e find' ~in~ pr~~rrr~ Nuntr ~rvi~e ~~r ~h~e ~~iati~n. T'h~ ~~~u~t ~f kl~ '~lunf~r c~r~r~itt~~ ~r nit nl~~9~ ~~ ~~ f~nr~~ial ~~rnc~ t~ ~r, t~ Ol~luntr ~rr~rr~it#~ ~~ntruk~ h~ ~~~ - ~, tc~ tie ~t~i~ti~r~. ~~~ -~+'~' rnph~n F~ur~d~tc~r~ Ir~,~ fi~ -''' mp~~vr~ F~und~~~~r~ ~r~. ~`"F~r~~~ti~n~'~ is ~n ir~d~p~r~dent ar~ni~~#n ~ho~ ~ur~~ ~~ ~i~ ~~ pia#i~r~ irti t~ ~~~r~r~rnr~~ ~~ c~r~~~tr,~i mui~ ~r~d pr~d~c~rt ~f rk~~r~l ~nrf; Thy ~c~un~ ~ tf~ F~r~d~ti~n ~r~e ~n~t included in tree in~r~i~l C~urr~ tl~ yr, ~~ ~~ur~da~i~n ~r~#rabu~~d ~10,~C~~ ~~ - ,C#~~~ ~~ ~h ~~~aation v~~i i inclucf~ed in the F~ur~~it~~' ~nd~~vr~ent in~me ir~~ ~r~ t~ ~~tm~r~t of p~~~i~r~, 'I ~ apit~l man~erri~er~t Tie A~s~i~ti~rr" ~j~i~ den r~~negir~~ pit~l, is ~ ~f~u~rd its a~~lit t~ ~ntinu~ ping ~cr~rn. Tk~ r~~~ f~~ uiirtit li~~i re~~r i c~~~i~r~ in ~~ pre~~r~~r~ ~f ~r~ ~~r~u~~ ~~~~ and in tie r~~niforin ~ ~r ~I~w~ end ~#u~i ~~er~~~ar~ ~~~ul~ ~rnp~r~ t~ f~ k~u~~e~. ~~ ~iati~n i nit ~a~jet ~ ~~t~t+~r a~i~~l reuirern~r~t, ~t ~~~ a~~r~ t~ ~~it~l r~r~~r~t irn~~r~ an ~n rtr~~ fungi. ~f ~p~lr~~r~~~l ~~ ~I~ inf~rr~~ati~n; ~~~ ~~ ~~ paid fir ~r~teret end dank ~~ ~i ~, ~, n~ re~ied fir in~eref, r~ludin end~r~en# in~~r~ ~ ~ "~ 8, 13 9-54 CSD-11-160 Arts and Culture Sustainability Funds 2012 Appendix D: Creative Enterprise Enabling Organization 2011 List of Investment Program Recipients 1 page 9-55 CEEO -INVESTMENT PROGRAM REVIEW COMMITTEE MEETING WalterFedy, September 27, 2011 4:00-6:30 pm Investment Program Recipients :14 J~ t tiYif^y i. ;~~ REAT~I~E L'~i~N rF{v .~. ~ ~~~ ~~ ~~ j~11~'IAT~'~~ ..~.ti ;~ppllcant ~~~ ~ ~~~ R~qu~s~ed ~~ , ~ ~ ~~ Synopsis '' ,; A#lacated CAFKA ~ Midsize organization $10000 $10000 Move over threshold i with 10K of their own Match ng $ . budget New Quarterly ~ 4 0 $6 0 6390 $ l.~terary focus Kwartzlab 6000 $ 5955 $ Collaborative iar er membershi Attract g p Arks Education Initiative Collaborative $5000 $8000 Working on behalf of 3 organizations and potential to engage others Kitchener Blues Festival Strategic planning $5000 $10000 Capacity building i nificant illar event Sg p Shore up funding Maxwell's Music House $5000 $10000 Good business plan n ble oals Reaso a g Uptown ~laterloo Comedy Festival ~~ $3300 $10000 Attract big name talent in mentorin su ort CEEO Market g/ g pp ;Waterloo Jazz Festival $3300 $10000 Attract big name talent ~ i rk in mentorin su ort CEEO Ma et g/ g pp ;Grand River Film Festival $3000 $loooo Heather to contact re. specific use of funds Lost & Found Theatre Patron technolo license gY $2000 $1975 Pilot project -share experience with CEEO i Canadian Clay & Glass Gallery ~ $500 $10000 Software purchase '~ McDonald Art $500 $10000 For initial consultant fee 91- 56 CSD-11-160 Arts and Culture Sustainability Funds 2012 Appendix E: Cultural organizations receiving new funding resulting from $1 per capita sustainability commitment (2011 $) 1 page 9-57 .~ D W X N Q Q .~ 0 U c~ c .~ c~ U N r 0 0 ~~ ~~ nN ~ ~W/ O LL u Z 0 .~ .~ U N N 0 t~ N .~ t~ 0 ~~ U ~ ~ ~ ~ ~ 0 0 o 00 oo 00 oo ~ 0 o ~ 0 o 0 o L ~ ~ 0 00 00 ~o o o ~ o 000 00oo ~~ ~ M > M 00~ ~~ ~~ ~ c~ '/nom t1 ~/ ~//'~~ VJ ~/ ~/^~ t1 u n ~ OO M0 000 ~ c~ 0 ~ 0 00 0 0 0 ~ ~O OO C~O ~ f~0 ~0 ~0 00 U ON 00~ ~~ 00 }' ~~ ~ N O O WN '/^~ t1 ~ '/^~ t1 ~ 00 00 O X 00 00 O 00 00 O ~ ~ ~ N O_ . ~ *~ ~ ~ ~ 0 >, N O N ~ ~ ~ N O ~~ ~ ~ ~ ~ ~~ ` W ~ C~ ~ ~ ~ Q (/~ ~ ~ ~ G ~ vJ ~ ~ ~ Q ~ ~ O W > Q ~ ~, W 2 ~ }~ W ~ 1 1 U U U O ~_ ~L ~--+ ~_ O N L ~_ . ~ ~ O N ~ m ~ L ~a p N ~ ~, a ~~ o }' a o O ~ O N N u ~ M oc ~ ~ ~ ~ ~ ~ ~ z ~ }- ' N z ~ ~ ~ ~ N Q ~(~ ~ ~ U ~ ~ ~ N Z O ~ ~ ~ r L v/ O ~\ • V ~ ~ .. ~ ~~ ~ zz ~~ N c c a~ a~ ~ • ~ ~ ~ ~ o 0 Z o0