The Greater Saint John Community Foundation

Financial Statements

October 31, 2004

Auditors’ Report

To the Board of Directors of

The Greater Saint John Community Foundation

We have audited the statement of financial position of The Greater Saint John Community Foundation as at October 31, 2004 and the statement of revenue, expenditures and changes in fund balances for the year then ended. These financial statements are the responsibility of the Foundation’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

Except as explained in the following paragraph, we conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we plan and perform an audit to obtain reasonable assurance whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.

In common with many charitable organizations, the Foundation derives revenue from donations and bequests, 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 Foundation and we were not able to determine whether any adjustments might be necessary to revenues, excess revenue for the year, assets and fund balances.

In our opinion, except for the effect of adjustments, if any, which we might have determined to be necessary had we been able to satisfy ourselves concerning the completeness of donations and bequests referred to in the preceding paragraph, these financial statements present fairly, in all material respects, the financial position of the Foundation as at October 31, 2004 and the results of its operations for the year then ended in accordance with Canadian generally accepted accounting principles.

Chartered Accountants

Statement of Financial Position

		2004 $		2003 $
Assets
Cash		47,243		38,075
HST receivable		5,280		5,040
		52,523		43,115
Investments (note 2)		7,360,514		7,162,490
		7,413,037		7,205,605
Liabilities
Accounts payable and accrued liabilities		176,074		106,617
General fund		5,418,372		5,372,312
Restricted funds		1,818,591		1,726,676
Total funds		7,236,963		7,098,988
		7,413,037		7,205,605

Statement of Revenue, Expenditures and Changes in Fund Balances

		General Fund				Restricted Fund				Combined
		2004 $		2003 $		2004 $		2003 $		2004 $		2003 $
Revenue
Donations		70,627		366,312		70,675		31,500		141,302		397,812
Realized capital gain (loss)		4,444		(6,109)		1,460		(1,400)		5,904		(7,509)
Investment income - net		122,496		123,642		40,234		41,187		162,730		164,829
Unrealized capital gain		193,931		454,193		63,697		149,596		257,628		603,789
		391,498		938,038		176,066		220,883		567,564		1,158,921
Expenditures
Grants awarded		259,269		180,039		60,700		70,750		319,969		250,789
Community events		11,510		6,750		-		-		11,510		6,750
Administrative expenses		74,659		69,374		23,451		23,625		98,110		92,999
		343,438		256,163		84,151		94,375		429,589		350,538
Excess revenue for the year		46,060		681,875		91,915		126,508		137,975		808,383
Fund balance - Beginning of year		5,372,312		4,690,437		1,726,676		1,600,168		7,098,988		6,290,605
Fund balance - End of year		5,418,372		5,372,312		1,818,591		1,726,676		7,236,963		7,098,988

1 Nature of organization

The Greater Saint John Community Foundation was established in 1976 by an Act of the New Brunswick legislature to serve as a trustee of the investments, which are held for charitable, educational and cultural purposes. The Greater Saint John Community Foundation is a registered charity under the Income Tax Act.

On December 20, 2000 the New Brunswick Legislature amended The Saint John Foundation Act to change the name of The Foundation to The Greater Saint John Community Foundation.

2 Accounting policies

Fund accounting

To observe limitations and restrictions placed on the use of resources, the accounts of The Greater Saint John Community Foundation are maintained in accordance with “fund accounting” principles. Under this procedure, the revenue and resources and their related expenditures for specific uses are summarized in a separate group of accounts. Accordingly, the financial statements are presented by fund category.

Restricted fund

The restricted fund reports amounts, including donations and investment income, to be used to support charitable grants and administration. The donors have specified the charitable purposes for which the various funds’ income is to be used. The restricted fund is comprised of the following funds:

Jane and David Barry Administrative Fund

Cook Family Fund

Harbour Passage Fund

Jervis Bay – Ross Memorial Park Fund

Jack, Lois and Cindy Kidd Bursaries Fund

Jack Kidd Family – Saint John Boys and Girls Fund

Rita McCarthy Fund

Old Ladies Home of Saint John

Saint John Human Development Council Fund

Saint John Law Society Fund

Dr. Malcolm M. Somerville Bursary Fund

Super Steel Band Fund

Marie Murphy Walsh Clock Fund

Margaret Willis Awards Fund

General fund

The general fund reports amounts, including donations and investment income, to be used to support charitable grants and administration. The donors have placed no restrictions on the use of the funds. The distribution of grants is determined by the Board of Directors. The following funds are included in the general fund:

Children’s Aid Fund

Common Fund

Jane Armstrong Earl Fund

Paul Grannan Fund

C.N. Wilson Fund

Investments

Investments are pooled investment funds and are recorded at market value. Changes in market values are recorded as unrealized gains and losses.

Investment income

Investment income is recorded net of investment management fees.