ONTARIO JESTERS
TREASURER’S REPORT
Annual meeting November 28 2018
Attached are the financial statements for the 10+ months to November 11 2018.
I have estimated the revenues and expenses for the remainder of the year and don’t anticipate any major changes. By note I have indicated those expected.
During the year the executive discussed the CRA reporting implications of accumulating assets in excess of $200,000, on a cost-basis of accounting for our investments. By reverting to a cost-basis, we are well below that threshold.
If we do surpass that threshold, we would have to file an information return. This would not result in the payment of taxes nor alter our status as a Not for Profit (NOP), however it would result in the requirement to file an information return with CRA in perpetuity.
By increasing our support to the Junior and University programs we are likely to run operating deficits for the next few years thus increasing the buffer between our cumulative assets and the $200K threshold.
This also gives us the opportunity to aggressively fundraise.
Squash Ontario has become more hands-on administering the University program and expanding Junior development, so the Ontario Jesters executive has increased the grants for these programs to $15,000 for the University programs and $12,500 for juniors programs. (In the past, the Canadian Jesters have also contributed 50% for the expenditures for the University program but I understand that this is likely to be reduced going forward).
Ontario Jesters did not have a fundraising campaign in 2018 so we were well short of budgeted donations. The new policy of not recognizing unrealized capital gains reduced income by $13,000. This combined with increasing Junior development grant by $3,300 and the University program grant by $6,000 resulted in a deficit of approximately $21,600. In the absence of fundraising, similar deficits will be experienced in the coming years. It is important that we reactivate the fundraising.
The Development fund is at $151,519 and going forward we will have to use these funds to cover deficits. The market value of this fund is at approximately $234,000 (see Schedule A)
Over the last few years we have been providing a reserve for visiting Jester tours to spread costs evenly each year. As of now we have a reserve $7950. See details. (See Schedule B)
The good news is that after many years as your treasurer I am retiring from that position and members will be happy not to put up with my harassment. Even better news is that Bob Ferguson is allowing that his name be put forward to join the executive and assume my portfolio. Bob is a CPA, very dedicated and knowledgeable in financial accounting so I highly endorse him for this role.
Many thanks to all members for your cooperation and allowing me to serve.
Respectfully submitted
Ed Bracht CPA CA.