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2013 - 2014 Annual Report COMMUNITY OWNED | COMMUNITY SUPPORTED

CALGARYFOOD BANK

Check out our new food bank mural by local artist Wil Yee

Pg. 5

For more than 30 years the Calgary Food Bank has met the demand for emergency food; and we are staying the course.

The Calgary Food Bank experiences success by sharing food with individuals, families and agencies. Our programs are developed to adapt to the changing needs of our community.

We continue to focus on the health of the family by seeking higher nutritional standards for food. Supporting people through crisis has demonstrated the importance of food in maintaining health and building strength across our city.

Volunteers are our lifeblood. We are experiencing community change with more groups of volunteers. Episodic volunteerism is growing where groups of people join together to experience the difference their efforts make. More youth are making community engagement a priority and asking senior volunteers to help them to build resilience and understand the benefits they bring. We would not be able to meet the increased demand for our services without this engagement. Positive outcomes result from volunteer leadership.Agencies and partnerships are critical to ensuring our entire community benefits from food. By connecting individuals and families in crisis with our partners who have the services to address root causes is like EMS taking injured

people to hospitals. Our partners help us ensure crises are stopped with root cause supports knowing that the food resources are well in hand.The capacity of the Calgary Food Bank also goes beyond our city to assist as first responders to communities in crisis. Our experience continues to grow, but we know without food many situations become worse. We work hard to prevent that from happening; often independently. Engaging others to partner ensures that the Calgary Food Bank stays true to its Vision of working together to create a hunger-free community.

The Calgary Food Bank understands Calgary. The Calgary Food Bank understands people.We can prove that our impact prevents chronic dependency, resolves crises sooner and reflects Calgarians belief in a hand up not a hand out.Thanks to Calgarians, we will continue to ensure that others have enough to eat.Chief Executive Officer (CEO)

JAMES MCARA

Our community has been tested by many things, most recently by natural and man-made events.

Recent events have caused many families to experience loss for the first time. People are now adjusting to greater uncertainty in their communities. Many have not recovered from past crisis and are now having to adjust to a new reality of meal to meal and month to month

while working full time with insufficient means to get ahead.

Let’s hope the attitude of Calgarians will always be ‘let’s work together and get through this’.

Around everyone, Calgary has continued to grow but economic growth is not community growth. People still brim with hope, but now rather than sending out scouts first to see if a new opportunity is possible, people are abandoning their old securities and just seeking better opportunities.

In Calgary and across Alberta, housing and community infrastructure continues to be deferred. Our actions of the past have left us with deficits that public policies are unable or unwilling to change. We continue to experience relatively low wages in parts of our community that prevent families from civic engagement beyond basic survival.

We know that many people have been left behind over the past fifty years and that it continues. This is the legacy that Food Banks have been created to address. A hand up to a community that cares and provides hope.

Families seeking help from the Food Bank have jobs, homes and resiliency, just not enough.

Throughout our city we hear and experience the opinions of people who have difficulty in understanding why we have a Food Bank.

Extraordinary costs for housing, the lack of housing, increased prices for basic food needs, and the reductions in so many other family supports are eroding our wellbeing. We have heard report after report demonstrating key areas that are lacking. A more recent discussion is that affordable transportation, homes and where homes are located are linked. These areas of concerns are not adequately reflected in the changing locations of employment, services and neighbourhood. More people are choosing not to work downtown. Our city is open more than 8 am to 4 pm, Monday to Friday. Our city is changing globally but the impact is local.

We are concerned that a growing number of Calgarians need emergency food to recover from crisis. Previously, 85% of families who needed a hand up from the Food Bank historically required three or fewer emergency food hampers. In the past couple of years however the number of people needing two hampers instead of just one is growing. What was once just short term crises are now becoming longer term crises. This shift parallels migration, immigration, employment and other indicators that all is not as well as it could be in our city. People should only need help for a moment in time then not again. They should know that they will achieve success in recovery and a community that values prevention not dependency.

ChairRICHARD ALEXANDER

Food is the stuff of life. It nourishes our bodies and connects us to others. Good quality food should not be out of reach for anyone.

- James McAra, CEO

MESSAGE FROM JAMES AND RICK

“ ”

WHO USED THE CALGARY FOOD BANK?

132,469 Calgarians accessed the Food Bank this past year

WHERE DID THE FOOD GO?

16 MILLION LBS donated from the food industry and generous Calgarians

We fed over 132,469 people from every quadrant in the city

Gave food to 110 local agencies such as the

Drop-In Centre through Food Link

486,080 meals and snacks were provided in

one month to our Food Link partners

Shared across Alberta and Canada to 63 food banks to help with emergencies

BECAUSE OF YOUR THOUGHTFUL DONATION:

“”

I couldn’t believe how hard it was to find work. We moved here from

out east and the cost of everything ate up our savings. So, we came to the

Food Bank. I was amazed at how much food I was given. I can’t wait to pay

it forward when my family and I are back on our feet. Thank you.

29% SINGLE-PARENT HOUSEHOLDS

38% OF CLIENTS

HAVE AT LEAST 1 EMPLOYED PERSON IN

HOUSEHOLD6% more than the

national average of 37%

1 in 5 Canadian parents say they have skipped meals so their

children could eat

Over 56,000 kids will go to bed with a full stomach

Better nutrition will help a family deal with the stress of an unexpected crisis that led

to their food insecurity

An individual didn’t have to choose between keeping a

roof over his head or buying food for the week

CHILDREN MAKE UP

43% OF PEOPLE

WHO COME TO US FOR HELP

Most of our clients visit 3 times or fewer**Based on our 15-year study

3

CALGARY FOOD BANK FAST FACTS

VOLUNTEERS ARE OUR LIFEBLOOD

90% of critical tasks at the food bank are done by volunteers.

6,000 volunteers gave over 106,000 hours in 2014.

The food bank welcomes 111 volunteers per day, for an average total of 407 hours per day

A LIVING WAGEWith one of the lowest minimum

wages in Canada, Calgarians struggle between paying bills, buying food

and living a comfortable and dignified standard of living.

A Living Wage is a wage that is high enough to maintain a standard of living and participate as active citizens

in the community.

Calgary’s Living Wage Action Team has determined that an individual

working full time (35 hours per week, 52 weeks a year) needs to make a

minimum of $17.29/hour without benefits, or $16.14/hour with benefits to earn a

Living Wage in Calgary.

HARVEST THIS!Over 40,000 lbs of fresh produce

was donated by community gardens. Some of these gardens,

such as the BP Chevron Garden of Eat’n and the Transalta Power

Garden, have been around for over 20 years. Newer gardens like

Grow Calgary, have raised awareness that the Calgary Food

Bank accepts fresh produce.

All of our emergency food hampers meet or exceed Canada’s Food Guide. Fresh produce that is donated helps us provide the best nutritional quality for our clients.

STRETCHING A DOLLAR

$1 = $5Every dollar donated allows us to distribute $5 worth of food

and on average, it costs us $65 to feed a family of four for a week.

1 in 8 Canadian households struggle to feed their families

Families and individuals with food insecurity have to make tough financial decisions. Our clients gave up a meal to pay for things like:

• Rent• Utilities• Phone• Transportation

• Childcare • Medical needs• Education• Vehicle repairs

4

A NEW MURAL: BY WIL YEE

BEFORE: COLD AND STERILE

The glass doors open on the neutral colored warehouse to a flurry of activity: warm smiles and greetings welcome clients to the Calgary Food Bank. Care, compassion and empathy are the cornerstones to helping our clients, whatever their circumstance. The volunteers and staff work hard to make the client’s experience calm and pleasant, but the walls of the facility were cold and sterile.

Wil Yee writes, “The mural was initially influenced through some shared experiences about how food affected people and the multiple experiences it brought. My intentions were to capture and convey the positive relationship between the service provided by the staff and volunteers, and the clients.”

“Direct interaction with clients and staff were spontaneously incorporated into the mural. For example, a child would be still for five minutes, posing his shoes for me while his brother teasingly dangled candy just out of his reach. Along the way, something wonderful occurred and the mural seemed to develop on its own, alongside with my relationship with the staff, volunteers and clients.”

We nourish people and wanted an atmosphere in our client area that reflects how important our clients are. In the end, local artist Wil Yee created an interesting, warm and inviting environment.

AFTER: WARM, WELCOMING, BEAUTIFUL

5

BOYLE: 6,225 lbs

REGIONAL DISTRIBUTIONRepresenting the Calgary Food Bank’s previous fiscal year

(Sept. 1, 2013 — Aug. 31, 2014)

AIRDRIE:2,520 lbs

ATHABASCA: 304,095 lbs

CROWSNEST: 41,920 lbs

DRUMHELLER: 1,175 lbs

HIGH RIVER: 8,690 lbs

BROOKS: 178,550 lbs

COCHRANE: 300 lbs

EDMONTON: 0 lbs

MORLEY:308,820 lbs

MEDICINE HAT: 13,370 lbsMEDICINE HAT DC: 282,960 lbs

OLDS: 48,230 lbs

PEACE RIVER: 36,120 lbs

PINCHER CREEK: 83,365 lbs

RED DEER: 616,800 lbs

ROCKY MOUNTAIN HOUSE: 178,355 lbs

ST. PAUL:72,620 lbs

STRATHMORE: 64,525 lbs

TABER: 304,895 lbs

THREE HILLS: 195,380 lbs

VULCAN: 2,405 lbs

SIKSIKA: 125,555 lbs

ALBERTA

C

*

TOTAL: 3,966,775 lbs

CHESTERMERE: 2,990 lbs

PIIKANI: 17,280 lbs

WETASKIWIN:7,470 lbs

CARLOLINE:2,480 lbs

LETHBRIDGE:257,550 lbs

LETHBRIDGE IF: 209,815 lbs

OKOTOKS: 21,245 lbs

CLARESHOLM: 100,870 lbs

NANTON: 2,470 lbs

STANDOFF: 444,065 lbs

6

NATIONAL DISTRIBUTIONRepresenting the Calgary Food Bank’s previous fiscal year (Sept. 1, 2013 — Aug. 31, 2014)

100 MILE HOUSE: 125,540 lbs

VICTORIA: 112,790 lbs CRANBROOK:

77,900 lbs

GOLDEN: 61,125 lbs

KELOWNA: 37,930 lbs

VANCOUVER: 20,950 lbs

BRITISH COLUMBIATOTAL: 758,260 lbs

CRESTON:92,820 lbs

SASKATCHEWAN

PRINCE ALBERT: 60,210 lbs

REGINA: 52,945 lbs

TOTAL: 113,155 lbs

CHILLIWACK: 33,875 lbs

KAMLOOPS:180,900 lbs

NELSON: 14,430 lbs

MANITOBA

BRANDON: 52,315 lbs

TOTAL: 176,465 lbs

WINNIPEG: 85,265 lbs

STEINBACH: 38,885 lbs

WHITEHORSE: 30,035 lbs

YUKONTOTAL: 30,035 lbs

ONTARIOTOTAL: 387,140 lbs

NEW BRUNSWICK

TOTAL: 199,060 lbs

NBAFB: 141,135 lbs

MONCTON: 57,925 lbs

QUEBECTOTAL: 179,215 lbs

N.W.T.TOTAL: 11,280 lbs

YELLOWKNIFE: 11,280 lbs

MONTREAL: 92,005 lbs

LONGUEUIL: 87,210 lbs

OTTAWA: 57,000 lbs

TORONTO: 25,030 lbs

HAMILTON: 93,145 lbs

SARNIA: 27,845 lbs

WINDSOR: 77,910 lbs

PETERBOROUGH: 56,100 lbs

LONDON: 50,110 lbs

BRANDON SERVICES BOISSEVAIN, BIRTLE, DELORAINE, HAMIOTA, KILLARNEY, MINNEDOSA, NEEPAWA, RIVER, RUSSELL, SHOAL LAKE, SOURIS, VIRDEN

KELOWNA SERVICES LAKE COUNTY, WESTSIDE RFDA SERVICES ATIKOKAN, CURRENT RIVER, DRYDEN, IGNACE, NIPIGON, NORTH SHORE, RED-WOOD OPPORTUNITIES, RURAL CUPBOARD, ST. THOMAS, MARATHON, THUNDER BAY

RFDA: 295,495 lbs

7

”“

CALGARY FOOD BANK

When you are on a strict budget, anything little can put you over. If there is a school field trip, you might give up buying

food so you can afford to let them go. But, if there is no food for their lunch, they’ll stand out even more...

August 31, 2014

FINANCIAL STATEMENTS

INDEPENDENT AUDITORS’ REPORT

To the Members of Calgary Inter-Faith Food Bank SocietyWe have audited the accompanying financial statements of Calgary Inter-Faith Food Bank Society [the “Society”], which comprise the statements of financial position as at August 31, 2014, 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. 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 qualified audit opinion.

Basis for Qualified Opinion The Society derives revenue from food donations in-kind, the completeness of which is not susceptible to satisfactory audit verification. Accordingly, our verification of these revenues was limited to the amounts recorded in the records of the Society and we were not able to determine whether any adjustments for unrecorded food donations in-kind revenue might be necessary to revenues.

Qualified Opinion In our opinion, except for the possible effects of the matter described in the Basis for Qualified Opinion paragraph, the financial statements present fairly, in all material respects, the financial position of the Society as at August 31, 2014 and the results of its operations and its cash flows for the year then ended in accordance with Canadian accounting standards for not-for-profit organizations.

Calgary, Canada, October 28, 2014.

INDEPENDENT AUDITORS’ REPORT

Chartered Accountants

9

ASSETSCurrentCash and cash equivalentsShort-term investments [note 3]Accounts receivable [note 12]Prepaid expenses and other assetsTotal current assetsInvestments [note 3]Property, plant and equipment, net [note 4]

LIABILITIES AND NET ASSETSCurrentAccounts payable and accrued liabilitiesCurrent portion of loan facility [note 7]Deferred operating donations [note 5]Total current liabilitiesDeferred capital contribution [note 6]Loan facility [note 7]Total liabilities

Net assetsUnrestrictedInternally restricted [note 8]Total net assets

See accompanying notes

714,277934,257

63,719167,992

1,880,2451,350,3095,721,3078,951,861

329,673–

15,368345,041167,754

–512,795

1,509,8636,929,2038,439,0668,951,861

2,844,3401,298,228

27,36776,408

4,246,343816,175

5,685,65810,748,176

206,62485,000

134,721426,345232,110

1,219,8821,878,337

2,130,8166,739,0238,869,839

10,748,176

2014$

2013$

As of August 31, 2014

STATEMENTS OF FINANCIAL POSITION

10

STATEMENTS OF CHANGES IN NET ASSETS

Net assets, beginning of yearDeficiency of revenue less than expensesContributions to Legacy FundInvestment in property, plant and equipmentNet assets, end of year


2,130, 816(430,773)

(19,852)(170, 328)1,509,863

6,739,023–

19,852170,328

6,929,203

8,869,839(430,773)

––

8,439,006

Unrestricted

$

InternallyRestricted

$2014

$


Net assets, beginning of yearDeficiency of revenue less than expensesContributions to Legacy FundInvestment in property, plant and equipmentNet assets, end of year


829,9901,518,801

(75,596)(142,379)2,130,816

6,521,048–

75,596142,379

6,739,023

7,351,0381,518,801

––

8,869,839

Unrestricted

$

InternallyRestricted

$2013

$

11

STATEMENTS OF OPERATIONS

REVENUEContributionsFood donations-in-kind [note 10]Non-food donations-in-kindCity of Calgary grantInvestment incomeOther

EXPENSESFood donation-in-kind [note 10]Non-food donations-in-kindFood purchasesAdministration and financeOperating costs [note 9]Client servicesDevelopment and fundraisingCommunications and resource developmentInterest on long-term [note 7]

Excess (deficiency) of revenue over expenses before the followingAmortization of deferred contributions [note 6]Amortization

Excess (deficiency) of revenue over (less than) expenses


6,230,76331,229,434

325,53236,121

118,171203,563

38,143,584

31,229,434325,532

1,122,668966,614

3,988,022505,694

39,99298,39524,050

38,300,401

(156,817)75,154

(349,110)(273,956)(430,773)

7,111,38129,288,117

133,05172,24388,37948,123

36,741,294

29,288,117133,051907,162829,081

3,297,536381,23853,41869,21640.190

34,999,009

1,742,28588,526

(312,010)(223,484)1,518,801

2014$

2013$


12

STATEMENTS OF CASH FLOWS

OPERATING ACTIVITIESExcess (deficiency) of revenues over (less than) expensesAdd (deduct) items not involving cash Amortization of deffered capital contributions Amortization

Net change in non-cash working capital balances related to operations [note 11]Cash provided by (used in) operating activities

INVESTING ACTIVITIESNet increase in investmentsProperty, plant and equipment acquiredCash used in investing activities

FINANCING ACTIVITIESContributions restricted for purchase of property, plant and equipmentRepayment of loan facilityCash used in financing activities

Net increase (decrease) in cash during the yearCash and cash equivalents, beginning of yearCash and cash equivalents, end of year


(430,773)

(75,154)349,110

(156,817)

(124,240)(281,057)

(170,163)(384,759)(554,922)

10,798(1,304,882)(1,294,084)

(2,130,063)2,844,340

714,277

1,518,801

(88,526)312,010

1,742,285

170,8661,913,151

(128,991)(416,643)(545,634)

16,780(247,261)(230,481)

1,137,0361,707,3042,844,340

2014$

2013$


13

NOTES TO FINANCIAL STATEMENTSAugust 31, 2014

1. OPERATIONSThe Calgary Inter-Faith Food Bank Society [the “Society”] is registered under the Societies Act of the Province of Alberta and is a registered charity and as such is exempt from income tax and may issue tax deductible receipts to donors. The Society’s function is the gathering and distribution of quality emergency food to those in need.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

[a] Basis of PresentationThe financial statements have been prepared in accordance with Part III of the Chartered Professional Accountants of Canada [“CPA Canada”] Handbook – Accounting, which sets out generally accepted accounting principles [“GAAP”] for not-for-profit organizations in Canada. These financial statements have been prepared in accordance with GAAP and reflect the following significant accounting policies.

[b] Revenue RecognitionThe Society follows the deferral method of accounting for contributions, which includes grants and donations. Unrestricted contributions are recognized as revenue when they are received or receivable if the amount can be reasonably estimated and collection is reasonably assured. Externally restricted contributions are initially deferred and then recognized as revenue in the year the related expenses are incurred. Donated property, plant and equipment and contributions received for the purchase of Property, plant and equipment is initially deferred and recognized as revenue on the same basis as the related amortization expense.Donations received in kind are recorded at estimated fair market value at the date the donation is made. Food and non-food in-kind donations without a fair value assigned by the donor are recorded at $2.00 and $1.00 per pound, respectively based on average historical cost.

The work of the Society is dependent on the voluntary services of many members and others. Since these services are not normally purchased by the Society and because of the difficulty of determining their fair value, these voluntary services are not recognized in these financial statements.Investment income (loss), which consists of interest, dividends, realized and unrealized gains and losses, are recognized in the statement of operations.

[c] Cash and cash equivalentsCash and cash equivalents consist of cash on deposit and short-term investments with a short term to maturity of approximately three months or less from the date of purchase unless they are held for investment rather than maturity purposes, in which case they are classed as investments.

[d] Property, plant and equipmentProperty, plant and equipment are recorded at cost with amortization calculated on the straight-line method over the assets’ estimated useful lives as follows:

TangibleCoin machineAutomotiveComputer equipmentForkliftsTelephone systemOther equipmentBuildingAir conditionerBatteriesFreezers and coolersMazzanineHVACCarpet

IntangibleComputer SoftwareNetwork upgradeCommunication PortalNew Network Security

5 years6 years3 years10 years10 years5 years25 years5 years5 years10 years10 years10 years5 years

3 years5 years3 years5 years

14

[e] Financial instrumentsShort-term investments in pooled funds are carried at the latest reported values. Equities and fixed income securities are valued at the latest traded prices. Transactions are recorded on a trade date basis and transaction costs are expensed as incurred.

Other financial instruments, including accounts receivable, other assets and accounts payable and accrued liabilities, are initially recorded at their fair value and are subsequently measured at cost or amortized cost, net of any provisions for impairment.

NOTES TO FINANCIAL STATEMENTS

3. INVESTMENTS

Investments, all of which are recorded at fair value, are allocated as follows:

Cash held by investment managersFixed income investmentsMutual Fund investmentsCanadian equitiesUS equitiesTotal short-term investments

Total long-term fixed income investments

8,198127,765659,563

89,16249,569

934,257

1,350,309

299,667664,650311,44621,467

9981,298,228

816,175

August 31, 2014

$

August 31, 2013

$

Investments in pooled funds have been allocated among the asset classes based on the underlying investments held in the pooled funds. The fixed income investments had effective interest rates that ranged from 2.05 – 2.95% in 2014 [2013 – 2.40 – 2.90%]

15

4. PROPERTY, PLANT AND EQUIPMENT

TangibleLandBuildingBatteriesAutomotiveCoin machineComputer equipmentForkliftsFreezers and coolersOther equipmentTelephone systemAir conditionerMezzanineHVACCarpet

IntangibleComputer softwareNetwork upgradeCommunications PortalNew Network Security

1,974,0003,297,586

61,424822,748

5,810323,499410,435292,675217,203133,59610,24396,85544,54626,038

7,716,658

306,908289,443

7,148

22,493625,992

8,342,650

–386,88439,513

681,8025,230

314,309324,590272,596174,61669,5255,1258,2384,6622,604

2,289,690

271,24756,965

1,192

2,249331,653

2,621,343

1,974,0002,910,702

21,911140,946

5809,190

85,84520,07942,58764,0715,122

88,61739,88423,434

5,426,968

35,661232,478

5,956

20,244294,339

5,721,307

1,974,0003,043,587

33,271196,488

1,74425,31798,496

–18,04456,3757,170

32,254–

5,486,746

72,821126,091

–

–198,912

5,685,658

August 31, 2014

August 31, 2013


Cost$

Accumulatedamortization

$

Net book value$

Net book value$

16

5. DEFFERED CONTRIBUTIONS

Balance, beginning of yearDonations received for food purchasesDonations received for flood reliefAmount recognized as revenue during the yearBalance, end of year

134,721199,777

–(319,130)

15,368

50,000244,490959,461

(1,119,230)134,721


Deffered operating contributions represent unspent externally restricted donations and grants. The changes in deferred operating contributions balance are as follows:

August 312014

$

August 312013

$

6. DEFERRED CAPITAL CONTRIBUTIONS

Balance, beginning of yearContributions externally restricted for purchase of property, plant and equipmentAmortization of deferred capital contributionsBalance, end of year

232,110

10,798(75,154)167,754

303,856

16,780(88,526)232,110

Deferred capital contributions represent the unamortized amount of contributions received for the purchase of property, plant and equipment. The amortization of deferred capital contributions begins when the associated property, plant and equipment are put into use, and is recorded as revenue in the statement of operations. The total unspent externally restricted capital contributions is $36,323 at August 31, 2014 [2013 – $25,525].

Changes in the deferred capital contribution balance are as follows: 2014$

2013 $

7. LOAN FACILITY

The Society has a non-revolving reducing loan facility with Alberta Treasury Branches [“ATB”] available to a maximum amount of $3,592,750. An amount of $1,700,000 was drawn on this facility in 2012. The loan facility is repayable over a 240 month term at monthly principal payments at $7,083 and bears interest at the ATB prime lending rate plus 0.25% per annum payable monthly. A mortgage on the land and building has been provided as collateral.

During fiscal 2014, the Society repaid the entire loan facility outstanding of $1,304,882. A total of $24,050 [2013 – $40,190] an interest was recorded in the year.

17


8. INTERNALLY RESTRICTED NET ASSETS

The Board of Directors [“Board”] has established a Legacy Fund, the principal amount of which is reserved for the future benefit of the Society and may be drawn down only with the approval of the Board. Annual investment income earned on this fund, amounting to $19,852 in fiscal 2014 [2013 – $19,970] has been included in investment income in the statement of operations and transferred into the Legacy Fund.

The Capital Replacement Reserve represents management’s recognition that the future capital replacement cost of the Society’s property, plant and equipment, will exceed their historic cost recorded and amortized in these financial statements. An amount of $500,000 has been recorded.

Internally restricted net assets consist of the following:

Legacy FundCapital Replacement ReserveInvestment in property, plant and equipmentTotal internally restricted

839,326500,000

5,589,8776,929,203

819,474500,000

5,419,5496,739,023

2014$

2013 $

9. OPERATING COSTS

Salaries and benefitsOccupancyVehicle and transportationOther

2,871,491301,274471,318343,939

3,988,022

2,445,924283,651145,897422,064

3,297,536

2014$

2013$

10. FOOD-IN-KIND

The food donations are valued at an average price per pound of $1.96. In 2014, management estimates that approximately 15.9 million pounds of food were received and distributed [15.3 million pounds at $1.92 per pound in 2013].

18


11. NET CHANGE IN NON-CASH WORKING CAPITAL BALANCES

Decrease (increase) in accounts receivableDecrease (increase) in prepaid expenses and other assetsDecrease (increase) in accounts payable and accrued liabilities Increase (decrease) in deferred operating contributionsIncrease (decrease) in deferred operating contributions

(36,352)

(91,584)

123,049(119,353)(124,240)

18,127

57,777

10,24184,721

170,866

2014$

2013$

12. FINANCIAL INSTRUMENTS

The Society is exposed to various financial risks through transactions in financial instruments.

Credit Risk

The organization is exposed to credit risk in connection with its accounts receivable and its short-term investments because of the risk that one party to the financial instrument may cause a financial loss for the other party by failing to discharge an obligation. As at August 31, 2014, $41,023 of accounts receivable balance is due from Canada Revenue Agency. Due to certainty of collection, no allowance for doubtful accounts has been recorded.

Market Risk

The Society is exposed to market risk through changes in marketable security prices, other than changes arising from interest rate or currency risk, in connection with investments in equity securities and other pooled funds.

13. COMPARATIVE FIGURES

Certain reclassifications have been made to the comparative figures in order to conform the current year’s presentation.

19

CALGARYFOOD BANK

CALGARY FOOD BANK 5000 - 11 STREET SE

CALGARY, ALBERTA T2H 2Y5PHONE: 403-253-2059 | FAX: 403-259-4240

WWW.CALGARYFOODBANK.COM

CHARITABLE #: 130 167 349 RR0001

@CalgaryFoodBank Facebook.com/Calgaryfoodbank

calgary food bank · calgary food bank fast facts volunteers are our lifeblood 90% of critical...

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