APPENDIX 1
The Statement of Financial Position
1. Assets: the resources of the organization which are used to provide service and generate
value
2. Current assets: assets which can be converted to cash or used to pay current liabilities
within one year (e.g. cash & cash equivalents, short-term investments, supplies, prepaid
expenses)
3. Non-current assets: assets which which cannot easily be converted into cash (e.g. longterm investments, property & equipment less amortization)
4. Liabilities and Net Assets: calculated as ‘Assets = Liabilities + Net Assets’
5. Liabilities: the financial obligations of an organization
6. Current liabilities: financial obligations which must be settled in one year (e.g. current
portion of long-term debt, accounts payable)
7. Non-current liabilities: financial obligations which must be paid over a time period longer
than one year (e.g. long-term debt)
8. Net assets (also known as ‘Fund Balance’, or ‘Shareholders’ Equity’ in investor-owned
organizations): = Assets – Liabilities; assets with varying degrees of donor restriction
The following financial statement was modelled after a Statement of Financial Position from the
University Health Network Annual Report (2011).
Section
Title
Elements
Name of Organization
The Statement of Financial Position
Date
Body
1. Assets
2. Current Assets
Cash & cash equivalents
Accounts Receivable
Inventory
Prepaid expenses
Total Current Assets
3. Non-current Assets
Capital assets, net
Long-term investments
Total Assets
4. Liabilities & Net Assets
5. Liabilities
6. Current Liabilities
Accounts payable
Current portion of long-term debt
Total Current Liabilities
7. Non-current Liabilities
Deferred research contributions
Long-term debt
Deferred capital contributions
Total Liabilities
Notes
8. Net Assets
Total Liabilities & Net Assets
• Accounting Policies
• Information on Key Numbers
Example
100
75
50
10
235
800
200
1235
250
5
255
100
200
300
855
380
1235
APPENDIX 2
The Statement of Operations
1. Revenue: income of the organization derived from providing patient services, sale of
assets, contributions
2. Expenses: measure of the resources used to generate revenue (operating expenses
include salaries, supplies, insurance, lease, etc.)
3. Excess of Revenue over Expenses for year: also known as operating income, or ‘surplus’
4. Net assets, beginning of year: taken from previous year Statement of Operations
5. Net assets, end of year: sum of Net Assets, beginning of year and excess of revenue
over expenses for year
The following financial statement was modelled after a Statement of Operations from the
Alexandra Hospital Foundation in Ingersoll annual report (2011).
Section
Elements
Title
Name of Organization
Example
The Statement of Operations and Changes in Net Assets
Date
Body
1. Revenue
Ontario Ministry of Long-Term Care / LHIN
Hospital Programs
800
Specially funded programs
50
Other Patient Services
100
Grants & donations for research / other purposes
200
Ancillary services and other
175
Amortization of deferred capital contributions
50
Total Revenue
1375
2. Expenses
Notes
Compensation
850
Medical, surgical supplies and drugs
150
Specially funded programs
50
Plant operations and equipment maintenance
40
Depreciation
100
Interest on long-term debt
10
Supplies and other
150
Total Expenses
1350
3. Excess of Revenue over Expenses for year
25
4. Net Assets, beginning of year
250
5. Net Assets, end of year
275
•
Accounting Policies
•
Information on Key Numbers
APPENDIX 3
The Statement of Cash Flows
1. Cash from Operating Activities: The changes in cash resulting from normal operating
activities of the organization
2. Excess of revenue over expenses for year: taken directly from Statement of Operations
3. Cash Used from Investing Activities: Cash inflows and outflows resulting from investments
4. Cash from Financing Activities: Cash inflows and outflows resulting from financing
activities (e.g. obtaining grants, borrowing or paying back long-term debt)
5. Net Increase in Cash and Equivalents during the year: Total cash flows from operating,
investing, and financing activities
6. Cash and Equivalents, Beginning of Year: taken from previous year’s statement
7. Cash and Equivalents, End of Year: Total of net change in cash and cash equivalents plus
last year’s final amount; same number that appears in the ‘cash’ section of balance sheet
The following financial statement was modelled after a Statement of Cash Flows from the
London Health Sciences Centre Annual Report (2011).
Section
Elements
Title
Name of Organization
The Statement of Cash Flows
Example
Date
Body
1. Cash from Operating Activities
2. Excess of revenue over expenses for year
Add (deduct) items not involving cash
Depreciation
Amortization of deferred capital contributions
Provisions for doubful accounts
25
75
-50
2
52
Net change in non-cash working capital balances
Net increase (decrease) in deferred research contributions
Notes
10
-2
Total Cash Provided by Operating Activities
3. Cash Used from Investing Activities
Purchase of capital assets
Net decrease in loans receivable
Increase in long-term investments
Total Cash Used in Investing Activities
4. Cash from Financing Activities
Contributions received for capital purposes
Repayment of long-term debt
Cash Provided by Financing Activities
60
5. Net Increase in Cash and Cash Equivalents during the year
6. Cash and cash equivalents,
beginning of year
7. Cash and cash equivalents, end of year
50
•
•
Accounting Policies
Information on Key Numbers
-50
3
-5
-52
50
-8
42
50
100