December 2002 Treasurer’s Report:

This year has been a decent year for NCF.  Member donations and fund raising revenues for the year were right on budget, however some of the projects were under. Overall cash flow from operations for the year was positive, and total annual surplus exceeded budget.  Significant variances from the budget are highlighted below:

1) Segregated cash of $83,462 is directly offset by the liability called “Unearned revenues”.  This represents money received in December from HRDC.  This money was received in advance, and is to be used to fund the project during 2003.

2) Accounts receivable is comprised almost entirely of monies owing from Smart Capital, for November and December claims. The claims were submitted in January, and are expected to be collected shortly.  We should endeavor to bill our project partners immediately after each month end, as this will better manage our cash flow.

3) Capital assets are significantly above budget due to donations received at the very end of last fiscal year, which were not originally anticipated in the budget. The donated assets are offset by a liability called Deferred Contributions.  The liability is amortized to income on the same basis as the assets.  The donated assets also explain why revenue from deferred contributions and depreciation expense are both higher than budget.

4) Accounts payable and accrued liabilities comprise mainly of invoices from project contractors for the month of December, accrual for audit fees, and accrued telephone costs.  The payables are high mainly because the contractors’ invoices were not received until early January.  The accrued vacation balance has been drawn down to $509, as most employees had used up their vacation by the end of the year. 

5) Revenue from community projects is under budget mainly because of the timing of when the work is done.  However this has no net impact on the bottom line, as the expenses are also less than what was budgeted.