Greater Saint John Community Foundation, finances 2003

December 17, 2005

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, 2005 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, 2005 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

As at October 31, 2005

	2005 $	2004 $

Assets

Cash	45,269	47,243
Accounts receivable	6,488	5,280

	51,757	52,523

Investments (note 2)	7,704,784	7,360,514

	7,756,541	7,413,037

Liabilities

Accounts payable and accrued liabilities	19,993	176,074


General fund	5,717,398	5,418,372

Restricted funds	2,019,150	1,818,591

Total funds	7,736,548	7,236,963

	7,756,541	7,413,037

Statement of Revenue, Expenditures and Changes in Fund Balances

For the year ended October 31, 2005


	General Fund		Restricted Fund		Combined
	2005 $	2004 $	2005 $	2004 $	2005 $	2004 $

Revenue
Donations	106,381	70,627	103,326	70,675	209,707	141,302
Realized capital gain	31,031	4,444	10,444	1,460	41,475	5,904
Investment income - net	161,982	122,496	55,662	40,234	217,644	162,730
Unrealized capital gain	323,591	193,931	108,918	63,697	432,509	257,628

	622,985	391,498	278,350	176,066	901,335	567,564

Expenditures
Grants awarded	249,664	259,269	55,365	60,700	305,029	319,969
Community events	4,286	11,510	-	-	4,286	11,510
Administrative expenses	70,009	74,659	22,426	23,451	92,435	98,110

	323,959	343,438	77,791	84,151	401,750	429,589

Excess revenue for the year	299,026	46,060	200,559	91,915	499,585	137,975

Fund balance - Beginning of year	5,418,372	5,372,312	1,818,591	1,726,676	7,236,963	7,098,988



Fund balance - End of year	5,717,398	5,418,372	2,019,150	1,818,591	7,736,548	7,236,963

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.

Use of estimates

The preparation of financial statements in conformity with general accepted accounting principles requires management to make estimates and assumptions that affect the reported amount of assets, liabilities, revenues and expenses. Estimates are used for, but not limited to accrued liabilities. Actual results could vary from those estimates.

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

Dr. J. P. and Anita McInerney Family Fund

Old Ladies Home of Saint John Fund

Professional Visual Artists Fund

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

2 Accounting policies (continued)

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:

Common Fund

Children’s Aid Fund

Jane Armstrong Earl Fund

Paul Grannan Fund

C.N. Wilson Fund

Anonymous 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.

3 Financial instruments

The foundation’s financial instruments consist of cash, accounts receivable, investments, and accounts payable and accrued liabilities. As at October 31, 2005 the fair market value of the foundation’s financial instruments approximates their carrying value due to the short term nature and/or payment terms of these instruments.