NCC-AR-EN-DIgital-v3
32 ANNUAL REPORT 2018–2019 SUMMARY STATEMENT OF OPERATIONS AND CHANGES IN OPERATING SURPLUS YEAR ENDED MAY 31 2019 $ 2018 $ Revenue Donations of conservation lands and agreements Other donations and grants Proceeds from sale of conservation lands Other Expenses Conservation lands and agreements acquired Purchased Donated Loan repayments for prior year acquisitions Contributions to properties acquired and property-related expenses incurred by others Property-related Support Excess (deficiency) of revenue over expenses for the year Net transfer from (to) internally restricted net assets Net transfer from (to) internally endowed net assets Net increase in operating surplus Operating surplus, beginning of year Operating surplus, end of year 11,006,687 69,698,313 — 8,286,460 88,991,460 27,737,314 11,006,687 219,842 5,735,931 44,699,774 21,601,225 23,343,663 89,644,662 (653,202) 335,431 1,229,264 911,493 835,845 1,747,338 12,655,801 71,162,814 28,657 7,858,610 91,705,882 17,500,387 12,655,801 191,448 13,511,755 43,859,391 20,041,181 21,102,445 85,003,017 6,702,865 (2,720,448) (3,593,075) 389,342 446,503 835,845 See accompanying notes
33 NOTES TO SUMMARY FINANCIAL STATEMENTS MAY 31, 2019 1. Summary financial statements The summary financial statements are derived from the complete audited financial statements, prepared in accordance with Canadian accounting standards for not-for-profit organizations as at May 31, 2019, and for the year then ended. The preparation of these summary financial statements requires management to determine the information that needs to be reflected in the summary financial statements so that they are consistent, in all material respects, with or represent a fair summary of the audited financial statements. These summary financial statements have been prepared by management using the following criteria: [a] whether information in the summary financial statements is in agreement with the related information in the complete audited financial statements; and [b] whether, in all material respects, the summary financial statements contain the information necessary to avoid distorting or obscuring matters disclosed in the related complete audited financial statements, including the notes thereto. Management determined that the statements of changes in net assets and cash flows do not provide additional useful information and, as such, has not included them as part of the summary financial statements. The complete audited financial statements of The Nature Conservancy of Canada [the “Conservancy”] are available upon request by contacting the Conservancy. 2. Revenue recognition The Conservancy follows the deferral method of accounting for contributions. Revenue related to the sale of carbon offset credits is recognized when the Conservancy has transferred to the buyer the significant risks and rewards of the ownership of the carbon credits, the amount is fixed and determinable and collectability is reasonably assured. 3. Conservation lands and agreements Purchased conservation lands and agreements are recorded at cost when title is transferred. The purchases are recorded as an expense to the extent that the purchase is internally financed. Repayments of debt related to property acquisitions are expensed when made. An amount equal to the expense related to purchases and debt repayments is added to net assets invested in conservation lands and agreements. When a loan is obtained in a subsequent year related to an internally financed purchase, an amount equal to the debt is transferred from net assets invested in conservation lands and agreements to operating surplus. Contributed conservation lands and agreements are recorded at fair market value when title is transferred. When purchased conservation lands and agreements are acquired substantially below fair market value, the difference between consideration paid and fair value is reported as contributed conservation lands and agreements. The contributions are recorded as revenue and expenses and also as an asset offset by net assets invested in conservation lands and agreements. Properties transferred to others are recorded as a reduction of conservation lands and agreements and net assets invested in conservation lands and agreements. Conservation lands and agreements, either purchased or donated, are assets held as part of the Conservancy’s collection. Conservation agreements are legal agreements entered into by the Conservancy under which a landowner voluntarily restricts or limits the type and amount of development that may take place on his or her land to conserve its natural features. Once registered on title, that agreement runs with the title and binds all future owners. 4. Allocation of expenses Salaries and benefits expenses are allocated between property-related and support expenses based on the primary job responsibilities of the employee’s position. No support expenses are allocated to property-related expenses. 5. Donated materials and services Donated materials and services are not recognized in the summary financial statements. 6. Debt The Conservancy has provided a general security agreement over all of its assets, excluding conservation lands and agreements, with one financial institution. In addition, as at May 31, 2019, the Conservancy has one long-term debt facility of $1,634,500 that is secured by conservation lands and agreements with a carrying value of $1,673,275 and a promissory note payable of US$101,622 that is secured by conservation lands with a carrying value of $7,216,593. 7. Contingencies The nature of the Conservancy’s activities is such that there is often litigation pending or in progress. Where the potential liability is likely and able to be estimated, management records its best estimate of the potential liability. With respect to claims as at May 31, 2019, it is management’s position that the Conservancy has valid defences and appropriate insurance coverage to offset the cost of unfavourable settlements, if any, which may result from such claims. In other cases, the ultimate outcome of the claims cannot be determined at this time, and as such, no accruals have been made as at May 31, 2019. ANNUAL REPORT 2018–2019
- Page 1 and 2: CELEBRATING OUR CONSERVATION HEROES
- Page 3 and 4: Vision We envision a world in which
- Page 5 and 6: SNAPSHOT OF SUCCESS The Nature Cons
- Page 7 and 8: A STRONG PARTNERSHIP FOR NATURE Wor
- Page 9 and 10: 09 ANNUAL REPORT 2018-2019 In a cho
- Page 11 and 12: 11 Community-led conservation ON TH
- Page 13 and 14: 13 ANNUAL REPORT 2018-2019 Bob Mick
- Page 15 and 16: 15 PROTECTING PEI’S WETLANDS East
- Page 17 and 18: 17 ANNUAL REPORT 2018-2019 Marjorie
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- Page 21 and 22: 21 ANNUAL REPORT 2018-2019 IS Lynda
- Page 23 and 24: 23 KEEPING CONSERVATION IN THE FAMI
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- Page 27 and 28: 27 A LANDMARK YEAR Together with su
- Page 29 and 30: 29 MANAGEMENT REVIEW OF FINANCIALS
- Page 31: 31 SUMMARY STATEMENT OF FINANCIAL P
- Page 35 and 36: 35 THANK YOU! We are fortunate that
- Page 37 and 38: 37 Estate Gifts Irene Bauman Robert
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32<br />
ANNUAL REPORT 2018–2019<br />
SUMM<strong>AR</strong>Y STATEM<strong>EN</strong>T OF OPERATIONS AND CHANGES IN OPERATING SURPLUS<br />
YE<strong>AR</strong> <strong>EN</strong>DED MAY 31<br />
2019<br />
$<br />
2018<br />
$<br />
Revenue<br />
Donations of conservation lands and agreements<br />
Other donations and grants<br />
Proceeds from sale of conservation lands<br />
Other<br />
Expenses<br />
Conservation lands and agreements acquired<br />
Purchased<br />
Donated<br />
Loan repayments for prior year acquisitions<br />
Contributions to properties acquired and property-related<br />
expenses incurred by others<br />
Property-related<br />
Support<br />
Excess (deficiency) of revenue over expenses for the year<br />
Net transfer from (to) internally restricted net assets<br />
Net transfer from (to) internally endowed net assets<br />
Net increase in operating surplus<br />
Operating surplus, beginning of year<br />
Operating surplus, end of year<br />
11,006,687<br />
69,698,313<br />
—<br />
8,286,460<br />
88,991,460<br />
27,737,314<br />
11,006,687<br />
219,842<br />
5,735,931<br />
44,699,774<br />
21,601,225<br />
23,343,663<br />
89,644,662<br />
(653,202)<br />
335,431<br />
1,229,264<br />
911,493<br />
835,845<br />
1,747,338<br />
12,655,801<br />
71,162,814<br />
28,657<br />
7,858,610<br />
91,705,882<br />
17,500,387<br />
12,655,801<br />
191,448<br />
13,511,755<br />
43,859,391<br />
20,041,181<br />
21,102,445<br />
85,003,017<br />
6,702,865<br />
(2,720,448)<br />
(3,593,075)<br />
389,342<br />
446,503<br />
835,845<br />
See accompanying notes
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