financial statements - canadian counselling and ... · purchase of capital assets (157,926)...

Financial Statements

CANADIAN COUNSELLING AND PSYCHOTHERAPY ASSOCIATION/ASSOCIATION CANADIENNE DE COUNSELING ET DE PSYCHOTHERAPIE

January 31, 2019

FINANCIAL STATEMENTS


January 31, 2019

Independent Auditor's Report 1

Statement of Financial Position 3

Statement of Changes in Net Assets 4

Statement of Revenues and Expenses 5

Statement of Cash Flows 6

Notes to Financial Statements 7

Schedule of Expenses 13

Schedule of Expenses by Category 14

Appendix to Independent Auditor's Report

As part of an audit In accordance with the Canadian Auditing Standards, I exercise professionaljudgment and maintain professional skepticism throughout the audit. I also:

• Identify and assess the risks of material misstatement of the financial statements, whether due tofraud or error, design and perform audit procedures responsive to those risks, and obtain auditevidence that Is sufficient and appropriate to provide a basis for my opinion. The risk of not detectinga material misstatement resulting from fraud Is higher than for one resulting from error, as fraud mayInvolve collusion, forgery. Intentional omissions, misrepresentations, or the override of Internalcontrol.

• Obtain an understanding of Internal control relevant to the audit In order to design auditprocedures that are appropriate In the circumstances, but not for the purpose of expressing an opinionon the effectiveness of the Association's Internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accountingestimates and related disclosures made by management.

• Conclude on the appropriateness of management's use of the going concern basis of accountingand, based on the audit evidence obtained, whether a material uncertainty exists related to events orconditions that may cast significant doubt on the Association's ability to continue as a going concern.If I conclude that a material uncertainty exists, I am required to draw attention In my auditor's reportto the related disclosures In the financial statements or. If such disclosures are Inadequate, to modifymy opinion. My conclusions are based on the audit evidence obtained up to the date of my auditor'sreport. However, future events or conditions may cause the Association to cease to continue as agoing concern.

I communicate with those charged with governance regarding, among other matters, the plannedscope and timing of the audit and significant audit findings. Including any significant deficiencies InInternal control that I Identify during my audit.

STATEMENT OF FINANCIAL POSITION


January 312019 2018

ASSETS

CURRENT ASSETS

Cash $ 143,222 $ 150,104Accounts receivable 12,691 10,022Prepaid expenses 86,545 62,215Inventory 53,950 61,959Loan receivable—Note C - 32.105

296,408 316,405

CAPITAL ASSETS-NOTE D 201,169 75,564

INVESTMENTS-NOTE E 1,035,985 1,107,295

RESTRICTED INVESTMENT-NOTE F 6.818 6.716

$1,540,380 $1,505,980

LIABILITIES AND NET ASSETS

CURRENT LIABILITIES

Accounts payable and accrued liabilities—Note H $ 291,525 $ 172,779Deferred revenue—Note I 633,181 584,051Current portion of deferred lease Inducements 8.883 -

933,589 756,830

DEFERRED LEASE INDUCEMENTS 72.543 -

1.006.132 756.830

NET ASSETS

Unrestricted 444,825 641,663Internally restricted - Regional Development Fund 82,605 100,771Externally restricted - Chris Campbell Memorial

Bursary Fund 6.818 6.716

534.248 749.150

$1,540,380 $1.505.980

COMMITMENTS-NOTE L

SUBSEQUENT EVENT-NOTE M

APPROVED ON BEHALF OF THE BOARD;

Director

Director

See notes to financial statements

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STATEMENT OF CHANGES IN NET ASSETS


Chris

CampbellRegional Memorial

Development Bursary Year Ended January 31Unrestricted Fund Fund 2019 2018

Balance,beginning of year $ 641,663 $ 100,771 $ 6,716 $ 749,150 $ 761,883

(Deficiency) excess ofrevenues over expenses (138,922) - - (138,922) 26,002

Interfund transfers-Note J (57,916) 57,916 _ . .

Projects-Note J - (76,082) - (76,082) (38,828)

Interest on restricted fund - - 102 102 93

Balance, end of year $ 444.825 $ 82.605 $ 6.818 $ 534.248 i 749.150


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STATEMENT OF REVENUES AND EXPENSES


Year Ended January 312019 2018

REVENUES

Membership feesCertification fees

Subscriptions, sale of books and royaltiesAdvertisingConferences

Continuing educationLegal services - Certified membersCACEP

Supervisor ProjectInvestment income

Other

954,100315,10897,32727,690151,61668,07738,8004,286

22,3208.918

1.688.242

$ 865,535300,00287,37329,472183,964

51,66330,0435,1762,429

31,2283.452

1.590.337

EXPENSES

Administration and operations - schedulePublications - schedule

Advocacy and promotionConferences

Continuing educationLegal services - Certified membersCACEP

Supervisor Project

EXCESS OF REVENUES OVER

EXPENSES FROM OPERATIONS

1,322,89352,23763,363174,62015,27830,7303,783

Other expenses - schedule

25,338

(164.260J

1,125,11141,24180,234183,07115,06433,5402,9942.105

1.662.904 1.483.360

106,977

(80.975J

(DEFICIENCY) EXCESS OFREVENUES OVER EXPENSES i fl38.922J $ 26.002


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STATEMENT OF CASH FLOWS



CASH PROVIDED BY (USED FOR):

OPERATING

(Deficiency) excess of revenues over expenses $ (138,922) $ 26,002Items not involving cash

Amortization of capital assets 32,321 25,302

Unrealized loss (gain) on investments 1,402 (9,263)Amortization of lease inducements (5,473) -

Change in non-cash operating working capital:Accounts receivable (2,669) 5,104Prepaid expenses (24,330) (18,180)Inventory 8,009 3,451Accounts payable and accrued liabilities 118,746 10,935Deferred revenue 49.130 40.276

38.214 83.627

FINANCING

Lease inducements 86.899 -

INVESTING

Repayment of loan advances 32,105 50,000Purchase of capital assets (157,926) (28,066)Purchase of investments - (262,310)Proceeds on sale of Investments 69,908 124,907Regional Development Fund projects f76.082I f38.828I

fl31.995I fl54.297I

DECREASE IN CASH AND

CASH EQUIVALENTS (6,882) (70,670)

Cash and cash equivalents at beginning of year 150.104 220.774

CASH AND CASH EQUIVALENTSAT END OF YEAR 143.222 $ 150.104


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NOTES TO FINANCIAL STATEMENTS


January 31, 2019

NOTE A-NATURE OF ORGANIZATION

The Canadian Counselling and Psychotherapy Assoclatlon/L'Assoclatlon canadlennede counseling et de psychotheraple (CCPA/ACCP) Is a national and bilingualorganization dedicated to the enhancement of the counselling and psychotherapyprofession In Canada. The Association was Incorporated under the CanadaCorporations Act and continued under the Canada Not-For-Profit Corporations Act.The Association Is a not-for-profit organization under the Canadian Income Tax Actand Is exempt from Income taxes.

There are sixteen Chapters, which represent either regional groups or specialInterest groups, supported by the Association. The accounts and operations ofthese chapters are not Included In the Association's financial statements.

NOTE B-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

These financial statements were prepared In accordance with Canadian accountingstandards for not-for-profit organizations. The Association's significant accountingpolicies are as follows:

Cash and Cash Equivalents: Cash and cash equivalents consist of unrestricted cashand Investments with an Initial maturity of three months or less at the time ofacquisition.

Inventory: Inventory Is recorded at the lower of cost and net realizable value.

Caoltal Assets: Capital assets are stated at cost. Amortization Is based on theestimated useful lives of the assets and Is calculated using the following methodsand annual rates:

Method Rate

Computer hardware Declining balance 30%Computer software Declining balance 100%Membership database Declining balance 20%Furniture and equipment Declining balance 20%

The Association capitalizes development costs when management believes they willgenerate future economic benefits and that all the criteria for capitalization are met.

Deferred Lease Inducements: Lease Inducements received by the Association aredeferred and amortized as an adjustment to rent expense over the term of thelease on a straight-line basis.

Reolonal Development Fund: The Regional Development Fund (RDF) wasestablished by the Association to provide funding that encourages and supports thedevelopment of the counselling and psychotherapy profession across Canada. Thegoal of the RDF Is to Increase the regional capacity and professional development ofthe counselling and psychotherapy profession In Canada by augmenting andexpanding our members' competencies, networks and resources.

...continued

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January 31, 2019

NOTE B-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Chris Campbell Memorial Bursary Fund: The Chris Campbell Memorial Bursary Fundwas established with restricted funds received upon the dissolution of the AtlanticChapter. Bursaries are to be awarded to residents of Atlantic Canada who meet theestablished criteria.

Financial Instruments: The Association initially measures its financial assets andfinancial liabilities at fair value. Certain financial assets and financial liabilities are

subsequently measured at amortized cost. Changes in fair value are recognized inthe statement of revenues and expenses.

Financial assets measured at amortized cost include cash, accounts receivable, andfixed income investments. Mutual fund investments are measured at fair value.

Financial liabilities measured at amortized cost consist of accounts payable andaccrued liabilities.

Revenue Recoonition: Membership fees are recognized as revenue proportionatelyover the period to which they relate. Fees received in advance of the membershipperiod are deferred. Certification fees are recognized as revenue once thecertification has been completed. Revenues from events are recognized when theevents occur.

The Association follows the deferral method in accounting for contributions.Restricted contributions are recognized as revenue in the year in which the relatedexpenses are incurred. Unrestricted contributions are recognized as revenue whenthey are received or receivable if the amount receivable can be reasonablyestimated and its collection is reasonably assured.

Allocation of Expenses: The Association allocates certain of its general supportexpenses by identifying the appropriate basis of allocating each component expenseand applying that basis consistently each year.

Use of Estimates: Management is required to make estimates and assumptions thataffect the reported amount of assets, liabilities, revenues and expenses. Significantitems subject to such estimates and assumptions include the estimated useful livesof capital assets and the valuation of allowances for accounts receivable. Actualresults could differ from those estimated.

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January 31, 2019

NOTE C-LOAN RECEIVABLE

The COMPASS Centre for Examination Deveiopment is an organization with amandate to service the needs of trained psychotherapists and counsellors. In aprior year, the Association provided funding to COMPASS to assist with its creationand initial operations. During the current year, COMPASS repaid the remainingbalance owing from the funds advanced.

NOTE D-CAPITAL ASSETS

Computer hardwareComputer softwareLeasehold improvementsMembership databaseFurniture and equipment

NOTE E-INVESTMENTS

Measured at amortized cost:

Fixed Income Investments

Measured at fair value;

Mutual Funds

$

Cost

92,65310,81265,676105,87173.286

Accumulated

Amortization

Net Book Value

$ 69,19710,8125,473

39,90721.740

$

2019

23,456

60,20365,96451.546

$

2018

19,883220

48,6296.832

$ 348.298 $ 147.129 $ 201.169 $ 75.564

$

2019

961,099

74.886

2018

$1,030,905

76.390

$1.035.985 $1.107.295

The fixed income investments have maturity dates from July 15, 2019 toDecember, 27, 2023 (2018 - from June 6, 2018 to October 11, 2022) and annualinterest rates from 1.80% to 3.47% (2018 - from 1.80% to 2.75%).

NOTE F-RESTRICTED INVESTMENT

The restricted investment consists of funds to be used for the Chris CampbeliMemorial Bursary and consists of a fixed income investment (GIC).

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January 31, 2019

NOTE G-CORPORATE CREDIT CARDS

The Association has corporate credit cards with a total credit limit of $50,000. As atyear-end, the balance outstanding on the corporate credit cards was $5,105 (2018- $10,621), which was paid, when due, subsequent to the year-end.

NOTE H-ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

Included in accounts payable and accrued liabilities as at January 31, 2019 aregovernment remittances payable of $15,897 (2018 - $16,210) relating toHarmonized Sales Tax, which was paid, when due, subsequent to the year-end.

NOTE I--DEFERRED REVENUE

2019 2018

Balance at beginning of year $ 584,051 $ 543,775

Less: amounts recognized as revenue in the year (584,051) (543,775)Plus: amounts received/receivable for future years 633.181 584.051

Balance at end of year $_^33^1^ i 584.051

Membership fees received in advance $ 542,985 $ 506,665Conferences 90.196 77.386

$ 633.181 <£ 584.051

NOTE J-REGIONAL DEVELOPMENT FUND

During the year, $57,916 (2018 - $52,217) was transferred from Unrestricted NetAssets to the internally restricted Regional Development Fund. The followingprojects were carried out during the year:

2019 2018

Supervisor Symposium $ 35,531 $Ethics complaints support 12,250Ethics task group 9,400Research conference 8,817Leaders of Tomorrow - 28,828Third party billing - 10,000Other 10.084 -

i 76.082 $ 38.828

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January 31, 2019

NOTE K-FINANCIAL INSTRUMENTS

The Association is exposed to various risks through its financial instruments. Thefollowing analysis provides a measure of the Association's risk exposure as atJanuary 31, 2019. There has been no change in risk exposures from the prior year.

Credit Risk: Credit risk refers to the risk that a counterparty may default on itscontractual obligations resulting in a financial loss. The Association's accountsreceivables include small balances from a few members. Credit risk is assessed as

low.

The Association maintains its cash and deposits with a single federally regulatedCanadian financial institution, representing no change from the prior year.

Liquidity Risk: Liquidity risk is the risk that the Association will encounter difficultyin meeting obligations associated with financial liabilities. The Association is notexposed to significant liquidity risk.

Market Risk: Market risk is the risk that the fair value or future cash flows of a

financial instrument will fluctuate because of changes in market prices. Market riskcomprises three types of risk: currency risk, interest rate risk and other price risk.

• Currency risk is the risk that the fair value or future cash flows of a financialinstrument will fluctuate because of changes in foreign exchange rates. TheAssociation is not exposed to significant currency risk.

• Interest rate risk is the risk that the fair value or future cash flows of a

financial instrument will fluctuate because of changes in market interestrates. The Association manages its investments based on its cash flow needswith a view of optimizing its interest income. The effective interest rates onits investments are between 1.80% and 3.47% (2018 - 1.80% and 2.75%).There has been no change to the risk exposures from 2018.

• Other price risk is the risk that the fair value or future cash flows of afinancial instrument will fluctuate because of changes in market prices (otherthan those arising from interest rate risk or currency risk), whether thosechanges are caused by factors specific to the individual financial instrumentor its issuer, or factors affecting all similar financial instruments traded in themarket. The Association is not exposed to significant other price risk.

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January 31, 2019

NOTE L-COMMITMENTS

The Association has leased office premises and equipment for terms expiring invarious years to 2028. Future minimum lease payments, including share ofoperating costs, are as follows;

2020 $ 94,8642021 99,5552022 93,1742023 94,7102024 94,710

Thereafter 407.675

$ 884.688

NOTE M-SUBSEQUENT EVENT

Subsequent to the year-end, the Board approved a $100,000 loan to TheAssociation of Counselling Therapy of Alberta. The loan is to be repaid three yearsafter the date of the loan agreement and is non-interest bearing, except afterdefault, at which time the outstanding principal shall bear interest at the prime rateplus 1% per annum.

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SCHEDULE OF EXPENSES



Administration and OperationsAmortization of capital assets $ 32,321 $ 25,302Bank and credit card charges 49,824 43,420Committees 14,495 15,761Executive and board expenses 89,098 108,526Insurance 15,413 11,679Office equipment and maintenance 49,881 52,237Office supplies 18,815 16,869Postage 21,515 18,705Professional fees 33,250 23,411Rent 79,723 42,158Salaries, benefits and contracted services 889,428 740,523Telephone, internet and fax 15,076 15,446Translation 14.054 11.074

i 1.322.893 $1.125.111

Publications

Canadian Journal of Counselling and Psychotherapy $ 31,880 $ 24,473Cognica 6,385 9,120Publications 13.972 7.648

$ 52.237 $ 41.241

Other

Advocacy Special Projects $ 24,553 $ 8,797CACEP renewal/consultations 34,931 13,160Chapter Support 2,371 5,050Legislative Support 10,160 22,353Office relocation 37,184 23,130Supervisor competency project 2,696 8,485Third party billing 52.365 -

$ 164.260 $ 80.975

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SCHEDULE OF EXPENSES BY CATEGORY



Advocacy and promotion $ 63,363 $ 80,234Amortization of capital assets 32,321 25,302

Bank and credit card charges 49,824 43,420

Committees 18,278 18,755

Communications 15,076 15,445Conferences and meetings 120,567 124,743

Contracted services 210,818 133,432

Executive, board and travel 89,098 111,216

Insurance 15,413 11,679

Office equipment and maintenance 29,222 35,034

Office supplies 18,815 17,242

Postage 21,515 20,400

Professional fees 33,250 56,950

Rent 79,723 42,158

Salaries and benefits 843,685 724,471

Translation 21.936 22.879

$1,662,904 $1,483,360

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