Greater Saint John Community Foundation, finances 2003

February 1, 2007

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, 2006 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, 2006 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, 2006

	2006 $	2005 $

Assets

Cash	3,714	45,269
Accounts receivable	5,218	6,488

	8,932	51,757

Investments (note 3)	8,655,309	7,704,784

	8,664,241	7,756,541

Liabilities

Accounts payable and accrued liabilities	20,250	19,993


General fund	6,181,212	5,717,398

Restricted funds	2,462,779	2,019,150

Total funds	8,643,991	7,736,548

	8,664,241	7,756,541

Statement of Revenue, Expenditures and Changes in Fund Balances

For the year ended October 31, 2006


	General Fund		Restricted Fund		Combined
	2006 $	2005 $	2006 $	2005 $	2006 $	2005 $

Revenue
Donations	91,924	106,381	268,049	103,326	359,973	209,707
Realized capital gains	12,563	31,031	4,784	10,444	17,347	41,475
Investment income - net	211,026	161,982	80,349	55,662	291,375	217,644
Unrealized capital gains	486,830	323,591	185,363	108,918	672,193	432,509

	802,343	622,985	538,545	278,350	1,340,888	901,335

Expenditures
Grants awarded	254,869	249,664	68,300	55,365	323,169	305,029
Community events	6,257	4,286	-	-	6,257	4,286
Administrative expenses	77,403	70,009	26,616	22,426	104,019	92,435

	338,529	323,959	94,916	77,791	433,445	401,750

Excess revenue for the year	463,814	299,026	443,629	200,559	907,443	499,585

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


Fund balance - End of year	6,181,212	5,717,398	2,462,779	2,019,150	8,643,991	7,736,548

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.

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 and Lawrence Earl Fund

Judge John A. and Julia P. Barry Fund

Paul Grannan Fund

MacDonald Family Fund

Thomas L. McGloan, Q.C. Fund

C.N. Wilson Fund

Anonymous Fund

Anniversary Fund

2 Accounting policies (continued)

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

Gladys and Samuel Davis 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

3 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.

4 Financial instruments

The foundation’s financial instruments consist of cash, accounts receivable, investments, and accounts payable and accrued liabilities. As at October 31, 2006 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.

5 Cash flow statement

A cash flow statement has not been prepared because it would not provide any additional useful information in understanding the cash flows for the year.