HomeMy WebLinkAboutCAO-15-038 - Creative Enterprise Initiative 2016 Funding Staff Report
K jT HF,_Ni-, CA0 Office www.kitchener ca
REPORT TO: Finance and Corporate Services
DATE OF MEETING: December 7, 2015
SUBMITTED BY: Rod Regier, Executive Director, Economic Development
519-741-2200 x 7506
PREPARED BY: Silvia DiDonato, Manager, Arts & Culture, Economic Development
519-741-2200 x 7392
WARD (S) INVOLVED: All
DATE OF REPORT: November 25, 2015
REPORT NO.: CAO-15-038
SUBJECT: Creative Enterprise Initiative 2016 Funding
RECOMMENDATION:
That $44,000 of the former `Arts Sustainability' funding for emerging small or mid-sized
organizations, be allocated through the Tier 2 Grant process in 2016, subject to budget
approval; and
That a $46,805 Operating Grant be allocated to Creative Enterprise Initiative for 2016 as
a final year of funding from the City of Kitchener; subject to budget approval, and as per
the conditions described in Option A outlined in Report CAO-15-038;
And that the Waterloo Region Small Business Centre explore the possibility of
providing grant writing assistance for arts organizations as a potential fit for their
services.
BACKGROUND:
The purpose of this report is to review and recommend action regarding the 2016 funding
request from Creative Enterprise Initiative, following the Arts Sustainability Fund Review and
the CEI strategy update presented to Region of Waterloo All-Council Meeting on Friday
November 13, 2015.
CEI 2010-2015
The origins of CEI are founded in the Prosperity Council of Waterloo Region, through its Task
Force On Creative Enterprise, which proposed a stabilizing commitment to:
1. Increase funding to arts and culture by $3 million annually in order to address the
sustainability shortfall to be funded as follows:
a. $ 1 million from increased private sector contributions,
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b. $ 1 million from increased municipal support, and
c. $ 1 million increased support from provincial and federal programs (leveraging
the municipal and private sector support)
2. And 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)
The City of Kitchener extended its annual support for the arts by an additional dollar per capita
and also provided an operating grant directly to CEI. Throughout 2010-2015 CEI reported
using these funds to support regional small and emerging arts organizations services such as
grant-writing assistance and industry workshops; and also to develop region-wide audience
and arts endeavors such as www.grandsocial.ca, developed to meet these regional needs by
promoting cultural events and connecting the arts community.
In 2015 the total allocation to CEI was $85,400, distributed as follows: $46,805 as the CEI
Operating Grant and $39,400 for small and emerging arts organizations from the Arts
Sustainability Fund (from the total $239,400 in 2015.). Below is a table of past allocations
beginning in 2010.
TABLE 1
CITY OF KITCHENER ALLOCATIONS TO CEI 2010-2015
CEI
Small & Emerging
YEAR OPERATING Orgs.(TO CE )** TOTAL
GRANT* ANNUAL
2010 47,000 477000
2011 50,000 20,000 707000
2012 56,000 31,000 877000
2013 56,000 27,357 837357
2014 46,000 36,000 827000
2015 46,805 39,400 857400
2010-2015 TOTAL ALLOCATIONS TO CEI $454,757
*Funding Source: Economic Development Grants
**Funding Source:Arts Sustainability/Per Capita Fund
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REPORT:
This report is focused on the allocation for Creative Enterprise Initiative in 2016, in response to
the Arts Sustainability Funding Review, and the CEI Strategy update and funding request for
2016.
Arts Sustainability Funding Review
On October 19, 2015, Report CAO-15-030, Arts Sustainability Funding Review (ASF) was
presented to Finance and Corporate Services Committee, resulting in the following resolution
of council:
"That the remaining (projected) $44,000 of the former `Arts Sustainability' funding for emerging
small or mid-sized organizations, be allocated through the Tier 2 Grant process, or otherwise
held in reserve for arts and cultural investment, with staff to report back to the December 7,
2015 Finance and Corporate Services Committee meeting on the completed strategy update
for the Creative Enterprise Initiative (CEI);
and that staff be directed to work with municipal partner organizations to review future funding
for CEI based on its refreshed mandate."
Responding to that resolution, this report outlines options for consideration, including a
preferred option regarding the former"Arts Sustainability Fund" allocation for 2016 in context of
Creative Enterprise Initiative. Further, staff consulted with municipal partner organizations to
`review future funding for CEI based on its refreshed mandate.'
CEI Strategic Review
On November 13, 20157 CEI presented a strategy update to the Region of Waterloo All-
Council Meeting with focus on two strategic priorities in 2016.
STRATEGIC PRIORITY 1: "Help our customers, the residents of Waterloo Region, find
incredible things to do in our community that are engaging and entertaining" and,
STRATEGIC PRIORITY 2: "Facilitate creative projects that tie the Region together with
innovative programming that promotes collaboration across our sectors and encourages
interaction among our community residents."
Two CEI Funding Options for 2016
Two funding options were evaluated based on revised strategic direction provided by Creative
Enterprise Initiative. The summary document in Appendix 1 provides additional details and
commitments outlined by CEI. Appendix 2 provides CEI's most recent financial statements.
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Option A: 2016 Operating Grant
$44,000 allocated to support arts and culture through Kitchener TIER 2 grants
$46,805 allocated to CEI in support of its two Strategic Priorities
Option A represents support for the two strategic priorities with some conditions required for a
final year agreement for 2016 for the amount of$46,805 (CEI "operating grant.")
I m pacts:
• Provides support funding for exploring both CEI strategic priorities
• Is consistent with investing in small/emerging arts organizations, which were the
intended recipients of the former Arts Sustainability Fund ($44,000, projected)
• Is consistent with ASF Review that recommends using City of Kitchener Tier 2 Grant
application process for small and emerging arts organizations
Conditions:
• That CEI enter into a memorandum of understanding with municipal partners (Region of
Waterloo, City of Waterloo, City of Kitchener) as per October 19, 2015, Report CAO-15-
030 recommendation to "work with municipal partner organizations to review future
funding for CEI based on its refreshed mandate."
• That the above MOU would represent funding for 2016 as a transition year that could
result in partnership with organizations such as, but not limited to, Waterloo Region
Tourism Corporation or Waterloo Regional Economic Development Corporation.
• This planning would also include service delivery objectives for CEI that are consistent
with Kitchener's municipal objectives and strategies.
Option B: Funding Redirected
$44,000 allocated to support arts and culture through Kitchener TIER 2 grants
$46,805 retained by the City, held in reserve for arts allocation to be determined in 2016
Option B represents no continuation in funding to support either of the strategic priorities. Both
priorities would be considered by staff during early 2016 to explore opportunities for investment
of the remaining $46,805, such as discussion with community partners for possible
redevelopment of an event calendar. For the second strategic priority, Economic Development
staff would review place-making options parallel to City's current vitality agenda.
I m pacts:
• Does not provide support funding for exploring both CEI strategic priorities
• Is consistent with investing in small/emerging arts organizations, which were the
intended recipients of the former Arts Sustainability Fund ($44,000, projected)
• Is consistent with ASF Review that recommends using City of Kitchener Tier 2 Grant
application process for small and emerging arts organizations
• Risks that online service is not provided to the community by any partner
• Risks inadequate transition with gaps in service to the community
Conditions:
• n/a
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Recommended Option
Option A is recommended as the preferred option, investing $44,000 in City of Kitchener Tier 2
grants in 2016. $46,805 is recommended as the operating grant allocation to CEI, conditional
on MOU development that includes a plan for service delivery objectives for CEI that are
consistent with Kitchener's municipal objectives and strategies.
In addition to the funding option, and in recognition of the value of grant-writing services,
Waterloo Region Small Business Centre may be positioned to explore the possibility of
providing grant writing assistance for arts organizations as a potential fit for their services.
ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN:
Investment in arts and culture is fundamentally aligned with Kitchener's Strategic Plan 2015-
2018, stating that Kitchener "inspires and cultivates a vibrant social, economic and cultural
city," and further that Kitchener: "2.4 Develop and nurture a high quality of life and a powerful
identity for the City of Kitchener to attract investment and a talented creative workforce."
The 2015 Kitchener Economic Development Strategy (Make It Kitchener) recognizes arts,
cultural workers and content creators as a vibrant economic cluster and in significant labour
force numbers. Creative industries leverage innovation throughout businesses as diverse as
digital media and advanced manufacturing design. A critical component to talent attraction,
retention and development, support for these activities develop Kitchener's distinct identity as
a desirable place in which to live and visit.
FINANCIAL IMPLICATIONS:
The current draft budget contains the two allocations: $44,000 to Tier 2 Grants and $46,805 for
CEI Operating Grant funding. The allocations are proposed to be confirmed as part of the
2016 Operating Budget process where Option A invests $44,000 in Tier 2 for 2016, while
allocating $46,805 for CEI to redevelop the online services and facilitate creative region-wide
projects, based on memorandum of understanding to be developed in collaboration with
regional municipal partners.
COMMUNITY ENGAGEMENT:
This project included stakeholder consultation throughout both the Arts Sustainability Fund
Review and the CEI Strategic Review. Arts and Culture Advisory Committee, November 17,
2015 also reviewed and provided feedback on the CEI strategic priorities including input on the
impacts or suggestions for the two new strategic priorities put forward by CEI. This report has
been posted to the City's website with the agenda in advance of the committee meeting.
ACKNOWLEDGED BY: Jeff Willmer, CAO
APPENDIX 1 CEI Executive Summary of Strategic Priorities with Background
APPENDIX 2 CEI Financial Statements
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APPENDIX 1
CEI Executive Summary of Strategic Priorities with Background
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REATME
NTERPHSE
INITIATIVE
EXECUTIVE SUMMARY of STRATEGIC PRIORITIES with Background Information—as approved on October 28,2015
BACKGROUND
• 2009 Prosperity Council Vision Task Force on Creative Enterprise recommended a multi-faceted vision to create a
world leading environment that: Transforms the human experience - Makes Waterloo Region one of the most
attractive and compelling places on the planet - Fosters artistic creativity - Supports constant innovation in
commerce and technology - Fosters cultural understanding
• It was a big, ambitious vision, and imagined an ideal landscape for our community, especially for those looking to
attract/retain business investment and employees who could choose to live/work anywhere.
• At the time of this work, the majority of our key cultural institutions were under-funded
• The Creative Enterprise Task Force, recognizing that an attractive and compelling community needed sustained arts
organizations who could thrive, recommended that the near term focus of their work be leveraged towards the arts
sector, and recommended the establishment of a Creative Enterprise "enabling organization"
• Task Force research showed that our municipal, private sector and federal/provincial support of arts and culture was
lagging, and called for an increase at all levels
• The Municipalities and Region agreed, and annually invest an increased $1M directly in the 5 key cultural institutions
-the Birdsall Report shows that this has effectively made a difference in their operations
• While the Creative Enterprise Task Force lobbied for the increased funding, it does not handle the money for the 5
cultural institutions-any questions around how the 5 cultural institutions use it to leverage private
sector/Provincial/Federal funding should be directed to them
• Creative Enterprise Initiative, which eventually launched in 2011, was directed to focus on supporting small to mid-
sized arts initiatives across the Region
• CEI was also tasked with using the funds that they received from the Municipalities and Region to leverage private
sector support and federal/provincial funding
• First three years of operation resulted in approx. $900k contributions from Municipalities/Region and $855k from
Private Sector and approx. $357k from Provincial/Federal agencies
• Also recommended, was a strategic review of conditions on a regular basis which led the board's call for an
assessment of CEI 's work last June 2014
ORGANIZATIONAL REVIEW
• After making a leadership change in June 2014, and drafting a new strategic agenda to test assumptions, the CEI
board contracted Overlap Associates to interview community leaders in arts, business and at the municipalities, as
well as survey employees/employers to better understand community engagement challenges
• What we heard:
- The concept of CEI must continue to exist but can't continue to be all things to all people.
- CEI must focus their attention, and finances, on a smaller list of priorities
- The founding vision to make Waterloo Region one of the most attractive and compelling places on the
planet is still relevant to our community but must be delivered differently.
- Artists and arts organizations in Waterloo Region want to identify their own career and organizational
development needs, and want access to more opportunities to earn revenue
- It's hard to find out what's going on in Waterloo Region.
- We need projects and spaces that inspire and engage the public to participate "on the street"
throughout the region.
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CREATIVE
E u E P MS
N I ATIV
PROPOSED STRATEGIC PRIORITIES:
VISION: To contribute toward making Waterloo Region one of the most attractive and compelling places on the planet.
WE ARE DOING THIS FOR:The residents of Waterloo Region, both current and future.
TWO STRATEGIC PRIORITIES:
1) Help our customers,the residents of Waterloo Region,find incredible things to do in our community that are
engaging and entertaining.
To achieve this we recommend developing an engagement platform that is not only THE "what's-on" website in the Region,
but also a portal for our creative stories.
This calls for highly engaged content managers to actively participate in the community to understand and collect creative
and entertaining information from across the region, and importantly, tell these local creative stories in a meaningful way.
It will require experts to curate this information specifically to the tastes of subscribers, and should be delivered directly to
subscribers' inboxes, enticing them to participate and support our creative sector and other service providers.
The anticipated results; increased and genuine audiences for our creative individuals, institutions and event organizers;
residents who are aware of, and engaged in entertaining and interesting activities; compelling stories to showcase our
region, helping us attract talent and global recognition; collateral benefit for employers, business owners, municipal facilities
such as libraries and auditoriums hosting these activities.
2) Facilitate creative projects that tie the Region together with innovative programming that promotes collaboration
across our sectors and encourages interaction among our community residents.
To achieve this we recommend the first objective be focused on a digital art strategy(working name) that reflects the
Region's strengths, creativity and unique flavour. It will complement and enhance existing digital installations, activities and
art initiatives that are currently offered in each of the municipalities, and introduce new projects modeled after those that
are presented successfully in other creative cities.
Curated artistic content is needed for such a project—something the municipalities could benefit from. The content will
represent the distinct character and quality of our region, as well as interpretations from external influences. Our arts
community can provide this content, and be inspired by, and learn from external content providers, enlivening spaces and
inspiring the public to participate "on the street".
A Region-wide creative digital art strategy will call for a collaborative approach, including working with partners such as
artists, arts organizations and creative facilities, municipalities, businesses and BIAS, post-secondary institutions and other
anchor organizations. It would provide paid opportunities for our arts community. It will showcase the products and services
of our local businesses and tech sector. It will engage our employees to stay in town on "Friday nights". It will provide us
with more compelling storytelling opportunities to share globally.
For more information contact:
Roger Farwell Deborah Currie
Acting CEO Director, Operations &Strategic Initiatives
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Mobile 519 658-7230 Office 519 954-7777
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APPENDIX 2
CEI Financial Statements
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CREATIVE WATERLOO REGION SERVICES
ORGANIZATION / CREATIVE
ENTERPRISE INITIATIVE
19 financial statements
In >DECEMBER 31, 2014
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CREATIVE WATERLOO REGION SERVICES ORGANIZATION
O/A CREATIVE ENTERPRISE INITIATIVE
fionancigaL statements
N >DECEMBER 31, 2014
..............
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Independent auditor's ...... 1 2
Statement of financial ..........
Staten-irnt of changes in riet
Statement of operations ...... ....... ............. ...... ------ ---5
Statement of cash flaws......-.............. .........
Notes to firiancial staternents............. ....... —.7 - 9
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INDEPENDENT AUDITOR'S REPORT
To the Members of Creative Waterloo Region Services Organization o/a Creative Enterprise Initiative:
Report on the Financial Statements
We have audited the accompanying financial statements of Creative Waterloo Region Services Organization o/a
Creative Enterprise Initiative, which comprise the statement of financial position as at December 31, 2014, and the
statement of operations, the statement of changes in net assets and the statement of cash flows for the year then
ended,and a summary of significant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance With
Canadian accounting standards for not-for-profit organizations, and for such internal control as management
deterrru'nes is necessary to enable the preparation of financial statements that are free from material rilisstaterricrit,
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 cornph
with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial
statements are free from material misstatemenL
An audit involves perforinling 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 crinq's preparation and fair presentation of the financial
staternents in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion oil 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
wcH as evaluating the overall presentation of the financial statements.
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We believe that the audit evidence we have obtained 15 SUffiCient and appropriate to provide a basis for our audit
opinion.
Opinion
In our opinion, the financial statements present fairly, in all material respects, the financial position of Creative
Waterloo Region Services Organization o/a Creative Enterprise Initiative as at Deccrnber 31, 2014, and its
financial perfori-nance and its cash flows for dic year diem ended in accordance with Canadian accounting standards
for not-for-profit organizations.
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Waterloo, Ontario LICENSED PLAILIC ACCOUNTANTS
May 21, 2015 CHAR'"FERED PROFE'SSIONAL ACCOUNTANTS
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CREATIVE WATERLOO REGION SERVICES ORGANIZATION
O/A CREATIVE ENTERPRISE INITIATIVE
statement of
IM financial position
>DECEMBER 31, 2014
assets 2014 2013
current
Cash $ 38,887 $ 93,062
Accounts receivable 192,316 123,583
Prepaid expenses 3,541 3,620
Goverrunent remittances recoverable 12,016 — 20,836
246,760 241,101
capital assets (Note 3) 13,9 37,155
$. 260744 $ 278256
liabilities
current
Accounts payablc and accrued liabilities $ 109,90 S, 1312,979
commitments (Note 5)
net assets
unrestricted net assets 150, I 145,277
$..260j744 $ 278 256
Approved on behatf of the board:
.... .................... .......................
Director Director
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CREATIVE WATERLOO REGION SERVICES ORGANIZATION
O/A CREATIVE ENTERPRISE INITIATIVE
statement of
changes in net assets
>DECEMBER 31, 2014
2014 2013
balance, beginning of year $ 145,277 S 74,570
Excess of revenue over expenses fear •car 5 7(2L7(7
,554
balance, end of year $_.ISO 83 1 $ 145277
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CREATIVE WATERLOO REGION SERVICES ORGANIZATION
O/A CREATIVE ENTERPRISE INITIATIVE
statement of operations
>DECEMBER 31, 2014
2014 2013
revenue
Government grants $ 412,422 $ 404,120
Individual donations 860 4,235
Corporate contributions 305,000 404,850
Private and paid service revenue 17,344 14,215
Interest income 64 742
_735,690 328 162
expenses
Administrative wages and benefits 214,813 235,145
Conference and meeting 10,226 31,479
Corporate communications 30,122 77,026
Program costs 346,222 283,734
Professional fees 58,748 35,171
Occupancy 70,005 94,900
730.136 757,455
excess of revenue
over expenses for year 5,554 $ 70707
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CREATIVE WATERLOO REGION SERVICES ORGANIZATION
O/A CREATIVE ENTERPRISE INITIATIVE
statement of cash f Lows
>DECEMBER 31, 2014
2014 2013
operating activities
Excess of revenue over expenses for year $ 5,554 $ 70,707
Adjustments for:
Amortization ---25,386
28,724 96,093
Changes in non-.cash working capital:
Increase in accounts receivable (68,733) (123,583)
Decrease in prepaids 79 8,670
Decrease in government remittances recoverable 8,820 5,061
Decrease in accounts payable and accrued liabilities --413.,065) 23.376
(54.175) 9,617
investing activities
Purchase of capital assets
Net change in cash for the year (54,175) (3,540)
Cash balance, beginning of year 93,062 96,602
cash balance, end of year $...38
.j.887 $ 93.062
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CREATIVE WATERLOO REGION SERVICES ORGANIZATION
O/A CREATIVE ENTERPRISE INITIATIVE
notes to financial statements
> C 6E 31, 2014
1 . nature of organization
Creative Waterloo Region Services Organization o/a Creative Enterprise Initiative, the
"Organization", is incorporated Linder the Ontario Corporations Act without share capital. I-lie
organization is exempt frorn income taxes as a non-profit organization Linder section 149(1)(L) of the
Income Tax' Act. The Organization was established to encourage innovative thinking and foster
entrepreneurial business development in the Waterloo region.
2® significant accounting poticies
Basis of Accounting - These financial statements have been prepared in accordance with Canadian
accounting standards for non-profit organizations,
Revenue Recognition - The Organization follows the deferral method of accounting. Restricted
contributions are recognized as revenue in the year in which the related expenses are incurred.
Unrestricted contributions are recognized as revenue when received. Grants are recognized when
received.Service revenue is recognized when the service is performed. Donations and contributions are
recognized when persuasive evidence of an arrangement exists and there is reasonable assurance of
collection. Other revenue is recognized as earned.
Financial Instruments
Measurement- The Organization initially measures its financial assets and liabilities at fair value. The
Organization subsequently measures all its financial assets and financial liabilities at amortized cost.
Financial assets measured at amortized cost include cash and accounts receivable,
Financial liabilities measured at amortized cost include accounts payable and accrued liabilities.
The Organization has not designated any financial asset or liabdity to be measured at fair value,
Impai'm2ent-Financial assets measured at cost are tested for impaintient when there are indicators of
impairment, The amount of the write-down is recognized as operating cost. The previously recognized
impairment loss may be reversed to the extent of the improvement, di rectly or by adjusting the
allowance account, provided it is not greater than the amount that would have been reported at the
date of the reversal had the impairment not been recognized previously. The amount of the reversal is
recognized as income from operations.
Capital Assets and Amortization - Capital assets are recorded at acquisition cost, Amortization is
provided in the accounts using the following methods and annual rates:
Asset Mcthod Rate
Computer equipment Straight line 55 %
Office furniture& equipment Straight line 20 %
Leasehold improvements Straight line 40 %
Capital assets acquired during the year are amortized at one half the above annual rates.
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CREATIVE WATERLOO REGION SERVICES ORGANIZATION
O/A CREATIVE ENTERPRISE INITIATIVE
notes to financial statements
>DECEMBER 318 2014
Allocation of expenses - The Organization records its expenses by function: corporate
communications, professional services and program costs. Personnel costs are allocated based on hours
worked on each function.
Contributed Services - The Organization is dependent upon man), hours contributed by volunteers,
Because of the difficulty of determining their fair value, contributed services are not recognized in
these financial statements.
Disclosure and Use of Estimates - The preparation of financial statements in accordance with
Canadian accounting standards for non-profit organizations requires management to make estimates
and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent
assets and liabilities at the date of the financial statements and reported amounts of revenues and
expenses during the year. These estimates are revicived periodically, and as adjustments become
necessary, they are reported in earnings in the period in which they become known.
Estimates are used when accounting for certain items such as revenues, useful lives of capital assets and
asset impairments,
® capitat assets
accumulated net net
cost amortization 2014 2013
Computer equipment $ 21,204 $ 20,224 $ 980 5,662
Office furniture& equipment 23827 108324 2® 17,429
Leasehold improvements 34x656 34,455 201 14.064
$ 7898
2 7 $ 65003 $ 13.984 5 37 I55
During the year, the Organization recognized amortization expense of$23,170(2013- $25,386/�.
4. bank indebtedness
The Organization has a $100,000 line of credit bearing interest at prime plus 1.50%. The line of
credit is secured by a general security agreement over assets of the Organization with a carrying value
of$13,984'20 13 - $3 7,155).
8
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CREATIVE WATERLOO REGION SERVICES ORGANIZATION
O/A CREATIVE ENTERPRISE INITIATIVE
notes to financial statements
>DECEMBER 31, 2014
5. commitments
The Organization is obligated Linder lease agreement for office equipment. The future corninitment
under these contracts are as follows:
2015 $ L273
6. related party transaction
The Organization receives contributions from it's charitable arm. During the year these receipts
amounted to $305,000 (2013 - $404,850). These transactions are in the normal course of business
and are measured at exchange amounts. As at December 31, 2014, accounts receivable from its
charitable arm was $142,485 (2013 - $109,633).
7. employee benefits
During the),car the Organization paid termination benefits of$53,077.
® financial instruments
Risk Management-The significant risk to which the Organization is exposed to is liquidity risk.
Liquidity Risk- Liquidity risk is the risk that the Organization will not be able to meet its obligations
associated with financial liabilities. Cash flow from operations provides a substantial portion of the
Organization's cash requirements. Additional cash requirements are met with the use of the available
operating line of credit. The available operating line of credit provides flexibility in the short term to
meet operational needs and bridge long term financing.
9. comparative figures
The comparative figures have been restated to conform to the presentation adopted for the current
),car.
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