To the Board of
Catholic World Youth Days
2002 Council/Le Conseil
des Journées Mondiales de la Jeunesse de l'Église
Catholique 2002 Inc.
We
have audited the balance sheet of Catholic World Youth Days 2002 Council/Le
Conseil des Journées Mondiales de la Jeunesse de l'Église Catholique 2002 Inc.
as at December 31, 2002 and the statements of operations and deficit and
changes in net deficit for the year then ended. These financial statements are
the responsibility of the Council'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 non-profit organizations, the Council derives revenue from
donations, the completeness of which is not susceptible of satisfactory audit
verification. Accordingly, we were unable to determine whether any adjustments
for unrecorded revenue might be necessary to donations, excess (deficiency) of
revenue over expenses for the year and accumulated deficit.
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 revenue referred to in the preceding paragraph, these financial statements present fairly, in all material respects, the financial position of the Council as at December 31, 2002 and the results of its operations and its cash flows for the year then ended in accordance with Canadian generally accepted accounting principles.
Chartered Accountants
Toronto, Canada,
February 28, 2003.
Catholic
World Youth Days 2002 Council
|
|
2002 $ |
2001 $ |
ASSETS
|
|
|
|
Current |
|
|
|
Cash |
1,339,238 |
1,046,698 |
|
Accounts
receivable |
1,556,115 |
33,092 |
|
Inventory |
--- |
115,000 |
|
Prepaid expenses |
--- |
802,516 |
|
Total current assets |
2,895,353 |
1,997,306 |
|
Capital assets, net [note 3] |
--- |
40,530 |
|
|
2,895,353 |
2,037,836 |
LIABILITIES
AND NET DEFICIT
|
|
|
Liabilities |
|
|
|
Accounts payable |
582,005 |
160,112 |
|
Due to Canadian episcopal corporations |
43,100 |
--- |
|
Due to Concacan Inc. [note 4] |
2,270,248 |
394,644 |
|
Deferred grant revenue [note 5] |
--- |
177,400 |
|
Deferred sponsorships |
--- |
365,257 |
|
Deferred registration revenue |
--- |
1,753,557 |
|
Deferred solidarity revenue |
--- |
126,411 |
|
Loan payable [note 6] |
--- |
375,000 |
|
Total liabilities |
2,895,353 |
3,352,381 |
|
Commitments and contingencies [note 7] |
|
|
Net deficit |
|
|
|
Accumulated deficit |
--- |
(1,355,075) |
|
Invested in capital assets |
--- |
40,530 |
|
Total net deficit |
--- |
(1,314,545) |
|
|
2,895,353 |
2,037,836 |
See accompanying notes
Catholic
World Youth Days 2002 Council
|
2002 $ |
2001 |
|
REVENUE
|
|
|
|
Grants [note 5] |
3,078,711 |
1,369,789 |
|
5,288,331 |
384,033 |
|
|
Corporate sponsorship |
722,320 |
--- |
|
Registration fees |
32,029,195 |
--- |
|
Solidarity |
1,139,086 |
--- |
|
Event revenues |
2,110,343 |
--- |
|
Promotions |
13,500 |
154,000 |
|
Interest |
167,042 |
2,421 |
|
|
44,548,528 |
1,910,243 |
EXPENSES
|
|
|
|
Wages and salaries |
4,947,186 |
1,474,701 |
|
General and administrative [schedule 1] |
6,919,734 |
1,668,007 |
|
Event expenses [schedule 2] |
66,749,154 |
--- |
|
40,530 |
44,991 |
|
|
|
78,656,604 |
3,187,699 |
Deficiency of revenue over expenses for the year
|
(34,108,076) |
(1,277,456) |
|
Contributions from Canadian episcopal corporations |
35,422,621 |
--- |
|
|
1,314,545 |
(1,277,456) |
|
Deficit, beginning of year |
(1,314,545) |
(37,089) |
Deficit, end of year
|
--- |
(1,314,545) |
Catholic
World Youth Days 2002 Council
|
|
2002 |
||
|
|
Invested in capital assets $ |
Accumulated deficit $ |
Total
$ |
|
40,530 |
(1,355,075) |
(1,314,545) |
|
|
--- |
1,314,545 |
1,314,545 |
|
|
Change in net assets invested in capital assets [note 3] |
(40,530) |
40,530 |
--- |
Net deficit; end of year
|
--- |
--- |
--- |
|
|
|
|
|
|
|
2001 |
||
|
|
Invested in capital assets $ |
Accumulated
deficit $ |
Total $ |
Net deficit, beginning of year
|
22,312 |
(59,401) |
(37,089) |
|
--- |
(1,277,456) |
(1,277,456) |
|
|
Change in net assets invested in capital assets [note 3] |
18,218 |
(18,218) |
--- |
Net deficit, end of year
|
40,530 |
(1,355,075) |
(1,314,545) |
|
2002 $ |
2001 $ |
|
|
Professional services Engineering Project management IT consulting Other |
239,816 144,100 498,680 406,148 |
--- 87,420 99,567 22,165 |
|
|
1,288,744 |
209,152 |
|
Accommodations and guarantees to hotels Legal Rent Advertising and promotions Insurance Travel Communications Interest Other |
693,054 586,438 495,759 939,913 838,099 433,014 592,809 278,322 196,162 577,420 |
101,903 7,380 65,633 282,836 406,009 91,955 248,416 59,715 --- 195,008 |
|
|
6,919,734 |
1,668,007 |
|
|
$ |
EVENT
Power Stages and towers Sound and lighting Road, fences and barricades Equipment, machinery and tools Utilities Tents Vestments |
3,506,366 5,281,828 4,786,874 2,137,377 855,013 550,505 534,929 407,213 |
|
|
18,060,105 |
|
Meal plan Pilgrim transportation Communications, two way radios and cell phones Pilgrim bags and contents Sanitation services Accommodations Design expenses Exhibition Place infrastructure GST net of rebate Security Liturgical Pilgrim health plan Media centers Volunteer training and coordination Registration Way of the Cross Other |
10,075,651 7,300,791 5,388,511 5,182,354 3,947,017 2,870,598 2,465,221 2,205,377 2,246,998 2,033,035 783,927 950,731 916,779 824,779 586,050 575,449 335,781 |
|
|
66,749,154 |
See accompanying notes
Catholic
World Youth Days 2002 Council
Catholic World Youth Days 2002 Council/Le Conseil des Journées Mondiales de la Jeunesse de l'Église Catholique 2002 Inc. [the "Council"] was formed on May 10, 1999 and commenced active operations in early 2000. The Council administers funds and delegate registration fees which have been donated to the Council for the benefit of World Youth Day 2002. Every two or three years, World Youth Day becomes an international gathering held in a different country. The event has previously been held in various cities throughout the world including Rome, Paris, Manila and Denver. In July of 2002, the event was held in Toronto. Youth from around the world experienced Canadian culture and heritage as part of the event. The Council was established specifically for the planning and implementation of the event.
The Council is a charitable organization registered under the Income Tax Act (Canada) and, as
such, is exempt from income taxes and is able to issue donation receipts for income tax purposes.
The accompanying financial statements include the assets and liabilities arising from the general operations of the Council and have been prepared in accordance with Canadian generally accepted accounting principles applied within the framework of the significant accounting policies summarized below:
Purchased capital assets are recorded at cost. The Council records amortization on a straight-line basis over the remaining period of the Council's existence.
The Council follows the deferral method of accounting for revenue. Externally restricted donations are deferred and recognized as revenue in the year in which the related expenses are incurred. Unrestricted donations are recognized as revenue when received. Pledges are not recorded as revenue since they are not legally enforceable claims.
Grants for restricted purposes are recognized as revenue in the year in which the related expenses are incurred. Grants for unrestricted purposes are recognized as revenue when received or receivable if the amount to be received can be reasonably estimated and collection is reasonably assured.
Restricted sponsorships are deferred and recognized as revenue in the year in which the related
expenses are incurred.
Registration and solidarity, revenue which was previously deferred was recognized as revenue in 2002 when the event was held.
Volunteers contributed an indeterminable number of hours per year. In addition, government agencies, corporations, individuals and other agencies donated various goods and services. Because of the difficulty in determining their fair value, contributed goods and services are not recognized in these financial statements.
Catholic
World Youth Days 2002 Council
|
|
2002 |
|
2001 |
||
|
|
Cost $ |
Accumulated amortization $ |
|
Cost $ |
Accumulated amortization $ |
|
Furniture and equipment |
89,983 |
89,983 |
|
89,983 |
49,453 |
|
Net book value |
--- |
|
40,530 |
||
The change in the net book value of capital assets is due to the following:
|
|
2002 $ |
2001 $ |
|
Purchase of capital assets |
--- |
63,209 |
|
Amortization of capital assets |
(40,530) |
(44,991) |
|
Change in net assets invested in capital assets |
(40,530) |
18,218 |
Concacan Inc., an independent organization, has had certain transactions with the Council during 2002. A majority of the directors of the Council are associated in the activities of Concacan Inc. As at December 31, 2002, the amounts due to Concacan Inc. are non-interest bearing and have no fixed terms of repayment. The transactions are recorded at fair market value according to the agreements signed between the parties.
Grants consist of the following:
|
$ |
2001 $ |
|
|
Federal Government |
1,333,333 |
731,667 |
|
Government of Ontario |
1,245,378 |
802,022 |
|
The Ontario Trillium Foundation |
500,000 |
--- |
|
City of Toronto |
--- |
13,500 |
|
|
3,078,711 |
1,547,189 |
|
Less deferred grant revenue |
--- |
177,400 |
|
|
3,078,711 |
1,369,789 |
Catholic
World Youth Days 2002 Council
The City of Toronto provided a non-interest bearing loan of $375,000 to the Council, which was fully repaid during 2002.
The Council is a defendant or a potential defendant in certain legal claims in relation to the event. It is not presently possible to predict with a reasonable degree of assurance the results of these claims and the ultimate amount, if any, net of the insurance coverage, the Council may have to pay. Therefore, no loss or liability has been provided for in these financial statements regarding these claims.
The Council intends to vigorously defend its position in these matters.
A separate statement of cash flows has not been presented since cash flows from operating, investing and financing activities are readily apparent from the other financial statements.