WORLD BLIND UNION
REPORT AND
FINANCIAL STATEMENTS
DECEMBER 31, 2012
Tel: (905) 602 8009
Fax: (905) 602 8011
Website: www.gilmoreandco.com
2600 Skymark Avenue, Building 9, Suite 201, Mississauga, ON L4W 5B2
AUDITORS’ REPORT
To the Board of Directors of World Blind Union
We have audited the accompanying financial statements of the World Blind
Union, which comprise the statement of financial position as at December
31, 2012, and the statements of operations, changes in net assets and
cash flows for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of
these financial statements in accordance with Canadian accounting
standards for not-for-profit organizations, and for such internal control as
management determines is necessary to enable the preparation of financial
statements that are free from material misstatement, whether due to fraud
or error.
Auditors’ Responsibility
Our responsibility is to express an opinion on these financial statements
based on our audit. We conducted our audit in accordance with Canadian
generally accepted auditing standards. Those standards require that we
comply with ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free from
material misstatement. An audit involves performing procedures to obtain
audit evidence about the amounts and disclosures in the financial
statements. The procedures selected depend on the auditors’ judgment,
including the assessment of the risks of material misstatement of the
financial statements, whether due to fraud or error. In making those risk
assessments, the auditors consider internal control relevant to the entity's
preparation and fair presentation of the financial statements in order to
design audit procedures that are appropriate in the circumstances, but not
for the purpose of expressing an opinion on the effectiveness of the entity's
internal control.
Auditors’ Responsibility (continued)
An audit also includes evaluating the appropriateness of accounting
policies used and the reasonableness of accounting estimates made by
management, as well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the financial statements present fairly, in all material
respects, the financial position of the World Blind Union as at December
31, 2012, and the results of its operations and cash flows for the year then
ended in accordance with Canadian accounting standards for not-for-profit
organizations.
Gilmore & Company LLP
Mississauga, Canada
May 7, 2013
Chartered Accountants
Licensed Public Accountants
WORLD BLIND UNION
Statement of Financial Position
As at December 31,
(in U.S. dollars)
2012
2011
Assets
Current assets:
Cash
Accounts receivable (Note 2)
Prepaid expenses
$485,347 $651,838
123,746
93,024
19,417
23,585
628,510
Capital Assets (Note 3)
-
768,447
762
$628,510 $769,209
Liability, Deferred Contributions and Net Assets
Current liability:
Accounts payable and accrued liabilities
Deferred contributions (Note 4)
Net Assets:
Invested in capital assets (Note 5)
Endowment (Note 6)
Internally restricted (Note 7)
Unrestricted
$164,016 $ 61,924
143,163
143,218
307,179
205,142
35,000
38,282
248,049
762
35,000
191,615
336,690
321,331
564,067
$628,510 $769,209
See accompanying notes to financial statements
On behalf of the Board of Directors:
Director
Director
Page 1
WORLD BLIND UNION
Statement of Operations
For the Year Ended December 31,
(in U.S. dollars)
2012
2011
(Note 11)
Revenue
Donations and grants (Note 8)
Membership dues
Interest income
$ 422,315
298,050
720,365
$ 282,222
298,570
17
580,809
510,570
121,503
87,540
57,077
26,612
803,302
185,292
98,320
70,979
63,606
24,140
442,337
159,799
54,971
963,101
497,308
Expenditures (Schedule A)
Capacity development activities
Mission representation activities
Information and education activities
Membership related activities
Fund development activities
Administration, finance and
governance costs
(Deficiency) excess of revenue over
expenditures
$ (242,736)
$
83,501
See accompanying notes to financial statements
Page 2
WORLD BLIND UNION
Statement of Changes in Net Assets
For the Year Ended December 31,
(in U.S. dollars)
Invested in
Capital Assets
(Note 5)
Balance, beginning of year
$
762
(Deficiency) excess of revenue over
expenditures
Invested in capital assets (Note 5)
$
$
35,000
-
-
(762)
-
-
-
Interfund transfers (Note 7)
Balance, end of year
Endowment
(Note 6)
-
$
35,000
Internally
Restricted
(Note 7)
$ 191,615
(198,414)
-
$
Unrestricted
$ 336,690
(44,322)
Total
2012
Total
2011
$ 564,067
$ 480,566
(242,736)
762
-
45,081
(45,081)
-
38,282
$ 248,049
$ 321,331
83,501
-
-
$ 564,067
See accompanying notes to financial statements
Page 3
WORLD BLIND UNION
Statement of Cash Flows
For the Year Ended December 31,
(in U.S. dollars)
2012
2011
Cash provided by (used in):
Operating activities:
(Deficiency) excess of revenue over
expenditures
Add item not affecting cash:
Amortization
Net changes in non-cash net assets:
Short-term investments
Accounts receivable
Prepaid expenses
Accounts payable and accrued liabilities
$
$ (242,736)
$ 83,501
762
(241,974)
1,564
85,065
(30,722)
4,168
102,092
120,000
(27,136)
( 4,168)
(922)
172,839
(166,436)
Financing activity
Deferred contributions
(Decrease) increase in cash during the
year
Cash, beginning of year
Cash, end of year
(55)
31,442
(166,491)
204,281
651,838
447,557
$ 485,347 $ 651,838
See accompanying notes to financial statements
Page 4
WORLD BLIND UNION
Notes to Financial Statements
December 31, 2012
Nature of the organization
The World Blind Union (“WBU”) is an international not-for-profit
organization representing some 285 million people globally who are
blind or have low vision. Its mission is achieved with and through its
members – organizations of blind and partially sighted persons, and
organizations providing services to blind and partially sighted persons
– in some 190 countries and six regional unions.
WBU’s long term vision is “A community where people who are blind or
partially sighted are empowered to participate on an equal basis in any
aspect of life they choose”. This vision is actualized through WBU’s
three Strategic Priorities of:
Representation: Promoting full participation and equal
opportunities for blind and partially sighted persons in all
aspects of social, economic, political and cultural life;
Capacity building: Strengthening the capabilities and capacity
of the WBU regional structures and member organizations; and
Information sharing: Serving as an international information
and resource centre on matters in respect of blind and partially
sighted persons.
The World Blind Union was incorporated in Canada on March 16, 2007
by Letters Patent under the Canada Corporations Act. This followed a
General Assembly decision to set up a permanent office for the WBU
and the Officer’s Committee decision to situate that office in Toronto,
Canada. Prior to this, WBU’s treasurer and accounting books rotated
on a quadrennial basis, the last treasurer being in New York.
Effective September 26, 2008, WBU obtained recognition as a
registered charity under the Income Tax Act of Canada (the “Act”) and,
as such, is exempt from income taxes and is able to issue donation
receipts for income tax purposes. In order to maintain its status as a
registered charity under the Act, WBU must meet certain requirements
under the Act. In the opinion of management, these requirements have
been met.
Page 5
WORLD BLIND UNION
Notes to Financial Statements
December 31, 2012
1. Significant accounting policies
The financial statements have been prepared in accordance with Canadian
accounting standards for not-for-profit organizations and include the
following significant accounting policies:
Foreign currency translation
WBU records all accounting transactions in U.S. dollars, which is its official
currency. Monetary assets and liabilities in foreign currencies have been
translated into U.S. dollars at the exchange rates prevailing at the balance
sheet date. Non-monetary assets and liabilities are converted at the rate of
exchange in effect at the date of the transaction. Revenues and
expenditures arising from foreign currency transactions have been
translated at the exchange rate prevailing at the date of the transactions.
Gains and losses arising from these translation policies are included in
income.
Capital assets
Purchased capital assets are recorded at cost. Contributed capital assets
are recorded at fair value at the date of contribution. Assets are amortized
over their expected useful life. If a capital asset no longer contributes to
WBU’s operations, its carrying amount is written down to its residual value.
Repairs and maintenance costs are charged to expense.
Capital assets are amortized on a straight-line basis using the following
annual rates:
Computer equipment
3 years
Page 6
WORLD BLIND UNION
Notes to Financial Statements
December 31, 2012
1.
Significant accounting policies (continued)
Use of estimates
The preparation of financial statements in accordance with Canadian
accounting standards for not-for-profit organizations requires management
to make estimates and assumptions that affect the reported amount of
assets and liabilities, the disclosure of contingent assets and liabilities at
the date of the financial statements and the reported amounts of revenues
and expenses during the reported period. Such estimates include the useful
lives of capital assets and allowances for doubtful accounts receivable.
Actual results could differ from those estimates. On an ongoing basis,
management reviews its estimates, and, as adjustments become
necessary, they are reported in the statement of operations in the period in
which they become known.
Revenue recognition
WBU follows the deferral method of accounting for contributions, which
include donations, grants, and membership dues. Membership dues do not
represent payment for any service rendered to members and are, therefore,
in the nature of voluntary contributions received by WBU.
Externally restricted contributions, other than endowments, are recognized
as revenue in the year in which the related expenses are incurred.
Endowment contributions are recognized as direct increases in net assets
in the year in which they are received.
Unrestricted contributions are recognized as revenue when received or
receivable if the amount to be received can be reasonably estimated and
collection is reasonably assured.
Interest income attributable to endowments and deferred contributions is
deferred and recognized as revenue in the year in which the related
expenses are incurred. All other interest and investment income is
recognized as revenue when earned.
Page 7
WORLD BLIND UNION
Notes to Financial Statements
December 31, 2012
1.
Significant accounting policies (continued)
Financial instruments
WBU initially measures its financial assets and liabilities at fair value. WBU
subsequently measures all its financial assets and financial liabilities at
amortized cost. WBU has not designated any financial asset or financial
liability to be measured at fair value.
2.
Accounts receivable
2012
Memberships receivable
Allowance for doubtful accounts
Miscellaneous receivable
HST rebate receivable
Interest and other receivable
2011
$ 79,312 $ 98,782
(17,961) (14,965)
42,202
18,706
7,720
1,487
1,487
$ 123,746 $ 93,024
3.
Capital assets
Cost
Computer equipment $ 4,692
2012
2011
Accumulated
Amortization
Net
Carrying
Value
Net
Carrying
Value
$ 4,692
$
$ 762
-
Page 8
WORLD BLIND UNION
Notes to Financial Statements
December 31, 2012
4. Deferred contributions
Deferred contributions related to expenses of future periods represent
unspent, externally restricted amounts.
2012
Balance, beginning of year
2011
$ 143,218 $ 111,776
Add: amounts received
392,566
Less: amounts recognized as
revenue during the year
(392,621) (280,527)
Balance, end of year
311,969
$ 143,163 $ 143,218
5. Invested in capital assets
The amount represents the cost of capital assets purchased out of
unrestricted resources less the accumulated amortization thereon.
Balance, beginning of year
$
Less: amounts amortized
Balance, end of year
$
2012
2011
762
$ 2,326
(762)
( 1,564)
-
$
762
Page 9
WORLD BLIND UNION
Notes to Financial Statements
December 31, 2012
6. Endowment
The endowment is known as the “Hermoine Grant Calhoun Scholarship
Fund”. The income earned on this fund is to be used to award annual
scholarships to blind female students attending college in their own country.
7. Internally restricted net assets
The Board of Directors has designated certain net assets as internally
restricted for General Assembly, Arne Husveg development fund and Pedro
Zurita scholarship fund purposes. In 2012 WBU held its 8th general
assembly. In prior years the Board of Directors had internally restricted
$150,000 of net assets to cover the expected cost of the general assembly
having allocated $50,000 in each of the preceding three years to internally
restricted assets. In 2012, the Board of Directors transferred $43,912 to
cover the remaining cost of the general assembly.
2012
General assembly
Balance, beginning of year
External contributions
Internal transfer – contributions allocated
Expenditures
Balance, end of year
Arne Husveg development fund
Balance, beginning of year
Expenditures
Balance, end of year
Pedro Zurita scholarship fund
Balance, beginning of year
Internal transfer – contributions allocated
Expenditures
Balance, end of year
$ 150,000
44,928
43,912
(238,840)
-
2011
$ 100,000
50,000
150,000
3,850
3,850
8,830
(4,980)
3,850
37,765
1,169
(4,502)
34,432
40,962
1,203
(4,400)
37,765
$ 38,282
$ 191,615
Page 10
WORLD BLIND UNION
Notes to Financial Statements
December 31, 2012
8. Donations and grants
The following represent donations and grants revenue:
2012
Externally restricted:
Permanent office setup
H.G. Calhoun scholarship fund
World Braille Council project
Haiti recovery efforts
Soros CRPD project
General Assembly sponsorship
CBM Advocacy
Trillium project
Internally restricted:
Pedro Zurita scholarship fund
Unrestricted donations
$ 120,805
2,698
44,928
60,000
162,515
2011
$
216,652
3,250
3,276
11,833
25,000
18,840
1,169
1,203
30,200
2,168
$ 422,315
$
282,222
9. Expenditures by type and area of activity
The costs of carrying out the various activities have been summarized and
shown on Schedule A attached to the financial statements. Costs which
cannot be specifically identified with a particular activity and which benefit
more than one activity have been allocated on the basis of estimates of the
portion of time expended by staff on the various activities and by other
bases of cost allocation considered reasonable and applied consistently.
Page 11
WORLD BLIND UNION
Notes to Financial Statements
December 31, 2012
10.
Financial instruments
The significant financial risks to which WBU is exposed are as follows:
Credit risk
WBU is exposed to credit risk in the event of non-performance by
members, as well as non-performance by other entities which have
pledged donations and grants to WBU, but WBU does not anticipate such
non-performance. WBU’s maximum credit risk is the fair value of its
accounts receivable.
Currency risk
Currency risk is the risk to WBU’s operating results that arise from
fluctuations of foreign exchange rates and the degree of volatility of these
rates. WBU is exposed to foreign currency exchange risk on cash and
accounts payable held in foreign currencies. WBU does not use derivative
instruments to reduce its exposure to foreign currency risk. As at
December 31, 2012 Canadian denominated cash amounted to $124,038
(2011 - $24,482) and Canadian denominated accounts payable and
accrued liabilities amounted to $164,016 (2011 - $58,924).
11.
Comparative figures
Certain comparative figures have been reclassified to conform with the
current year's presentation.
Page 12
WORLD BLIND UNION
Schedule A
Statement of Expenditures by Type and Area of Activity
For the Year Ended December 31,
(in U.S. dollars)
Type of expenditure
Accounting
Assistance and
donations
Audit
Bank charges
General Assembly
I.T. service
Legal
Member dues waived
Office costs and supplies
Committee and project
costs
Other costs
Postage and courier
Capacity
development
$
6,704
41,403
Mission
representation
Information
and
education
Membership
related
$
$
$
6,704
21,219
6,090
Fund
development
3,793 $
-
2,77
555
15,036
686
555
12,034
$
3,419
1,960
293
203,014
5,857
Administration,
finance and
governance
623
388
504
7,618
314
8,485
5,284
9,222
4,189
35,826
350
1,469
Total
2012
$
26,710
Total
2011
$
21,697
64,582
9,222
4,482
44,843
9,618
2,521
9,408
27,142
3,537
28,657
13,547
360
23
477
238,840
7,904
1,469
7,618
2,428
(5,240)
4,634
14,406
215
4,634
50,005
215
Page 13
WORLD BLIND UNION
Schedule A
Statement of Expenditures by Type and Area of Activity (Continued)
For the Year Ended December 31,
(in U.S. dollars)
Type of expenditure
Capacity
development
Salaries and benefits
164,269
Scholarships awarded
7,200
2,198
17,434
1,641
Telephone
Translation
Travel – staff
Travel – officers
and executive
Website and newsletter
Mission
representation
7,200
38,059
$
510,570 $
Information
and
education
66,234
Membership
related
60,164
1,950
1,952
6,714
1,771
4,761
633
3,455
103
2,446
121,503 $
87,540
Fund
development
37,471
Administration,
finance and
governance
31,485
33,777
1,103
1,106
57,077
$
26,612
$
Total
2011
393,400
246,019
18,874
7,200
8,016
25,253
27,913
12,630
3,174
9,507
23,210
26,091
5,856
36,849
46,361
40,456
982
994
51
$
Total
2012
159,799
$
963,101 $
497,308
Page 14