dartmouth general hospital foundation (mar 2021)fs6

DARTMOUTH GENERAL HOSPITAL CHARITABLEFOUNDATION

FINANCIAL STATEMENTS

MARCH 31, 2021

DARTMOUTH GENERAL HOSPITAL CHARITABLE FOUNDATIONINDEX

MARCH 31, 2021

Page

INDEPENDENT AUDITORS' REPORT 1

STATEMENT OF OPERATIONS 4

STATEMENT OF OPERATIONS BY FUND AND CHANGES INFUND BALANCES 5

STATEMENT OF FINANCIAL POSITION 6

STATEMENT OF CASH FLOWS 7

NOTES TO THE FINANCIAL STATEMENTS 8 - 13

SCHEDULES OF REVENUES AND EXPENSES 14 - 16

Baker Tilly Nova Scotia is a member of Baker Tilly Canada Cooperative, which is a member of the global network of Baker Tilly International Limited. All Members of Baker Tilly Canada Cooperative and Baker Tilly International Limited are separate and independent legal entities.

1

INDEPENDENT AUDITORS' REPORT

To the Directors of:Dartmouth General Hospital Charitable Foundation

Qualified Opinion

We have audited the financial statements of Dartmouth General Hospital CharitableFoundation ("the Foundation"), which comprise the statement of financial position as atMarch 31, 2021 and the statements of operations, operations by fund and changes infund balances and cash flows for the year then ended, and notes to the financialstatements, including a summary of significant accounting policies.

In our opinion, except for the effects of the matter described in the Basis for QualifiedOpinion section of our report, the accompanying financial statements present fairly, inall material respects, the financial position of the Foundation as at March 31, 2021, andresults of its operations and its cash flows for the year then ended in accordance withCanadian accounting standards for not-for-profit organizations.

Basis for Qualified Opinion

In common with many not-for-profit organizations, the Foundation derives revenuesfrom fundraising activities, the completeness of which is not susceptible to satisfactoryaudit verification. Accordingly, our verification of these revenues was limited to theamounts recorded in the records of the Foundation and we were not able to determinewhether any adjustments might be necessary to revenues, excess of revenues overexpenses, assets and fund balances.

We conducted our audit in accordance with Canadian generally accepted auditingstandards. Our responsibilities under those standards are further described inthe Auditors' Responsibilities for the Audit of the Financial Statements section of ourreport. We are independent of the Foundation in accordance with the ethicalrequirements that are relevant to our audit of the financial statements in Canada, andwe have fulfilled our other ethical responsibilities in accordance with theserequirements. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our opinion.

Responsibilities of Management and Those Charged with Governance for the FinancialStatements

Management is responsible for the preparation and fair presentation of the financialstatements in accordance with Canadian accounting standards for not-for-profitorganizations, and for such internal control as management determines is necessary toenable the preparation of financial statements that are free from material misstatement,whether due to fraud or error.

In preparing the financial statements, management is responsible for assessing theFoundation's ability to continue as a going concern, disclosing, as applicable, mattersrelated to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Foundation or to cease operations, or has norealistic alternative but to do so.

Those charged with governance are responsible for overseeing the Foundation'sfinancial reporting process.

Auditors' Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement, whether due to fraud orerror, and to issue an auditors' report that includes our opinion. Reasonable assuranceis a high level of assurance, but is not a guarantee that an audit conducted in accordancewith Canadian generally accepted auditing standards will always detect a materialmisstatement when it exists. Misstatements can arise from fraud or error and areconsidered material if, individually or in the aggregate, they could reasonably beexpected to influence the economic decisions of users taken on the basis of thesefinancial statements.

As part of an audit in accordance with Canadian generally accepted auditing standards,we exercise professional judgment and maintain professional skepticism throughout theaudit. We also:

• Identify and assess the risks of material misstatement of the financial statements,whether due to fraud or error, design and perform audit procedures responsive tothose risks, and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resultingfrom fraud is higher than for one resulting from error, as fraud may involvecollusion, forgery, intentional omissions, misrepresentations, or the override ofinternal control.

• Obtain an understanding of internal control relevant to the audit in order to designaudit procedures that are appropriate in the circumstances, but not for the purposeof expressing an opinion on the effectiveness of the Foundation's internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management's use of the going concern basis ofaccounting and, based on the audit evidence obtained, whether a materialuncertainty exists related to events or conditions that may cast significant doubt onthe Foundation's ability to continue as a going concern. If we conclude that amaterial uncertainty exists, we are required to draw attention in our auditor'sreport to the related disclosures in the financial statements or, if such disclosuresare inadequate, to modify our opinion. Our conclusions are based on the auditevidence obtained up to the date of our auditors' report. However, future events orconditions may cause the Foundation to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the financial statements,including the disclosures, and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters,the planned scope and timing of the audit and significant audit findings, including anysignificant deficiencies in internal control that we identify during our audit.

Dartmouth, Nova ScotiaSeptember 9, 2021 Chartered Professional Accountants

DARTMOUTH GENERAL HOSPITAL CHARITABLE FOUNDATION 4STATEMENT OF OPERATIONS

FOR THE YEAR ENDED MARCH 31, 2021

2021 2020

$ $

REVENUESDonations (Schedule 1) 2,492,440 2,724,202Investments (Schedule 2) 526,468 788,301Other (Note 8) 95,443 4,228Parking, net (Schedule 3) (Note 9) 234,900 538,920Special events, net (Schedule 4) 154,102 259,474

3,503,353 4,315,125

EXPENSESAccounting fees 9,200 11,040Fundraising and office (Schedule 5) 153,447 116,476Insurance 3,200 2,783Interest and bank charges 10,608 17,607Investment management fees 141,065 102,508Professional fees 19,014 13,017Redevelopment campaign 374,579 858,994Salaries and wages 604,616 290,733

1,315,729 1,413,158

EXCESS OF REVENUES OVER EXPENSES FROMOPERATIONS 2,187,624 2,901,967

DISTRIBUTIONS (Note 10) ( )2,762,288 ( )1,032,053

UNREALIZED GAIN (LOSS) DUE TO CHANGE INMARKET VALUE OF INVESTMENTS 2,602,501 ( )875,118

EXCESS OF REVENUES OVER EXPENSES 2,027,837 994,796

DARTMOUTH GENERAL HOSPITAL CHARITABLE FOUNDATION 5STATEMENT OF OPERATIONS BY FUND AND CHANGES IN FUND BALANCES

AS AT MARCH 31, 2021

Externally Restricted

Internally Restricted

Capital Fund

Capital Campaign

Fund (Note 11)

PalliativeCare Fund

CardiologyEducation

Fund Unrestricted 2021 2020

$ $ $ $ $ $ $ Balance -

beginning ofyear - 1,866,271 57,051 5,803 17,184,602 19,113,727 18,118,931

Revenues ( )54,923 1,496,855 590 - 2,060,831 3,503,353 4,315,125

Expenses - ( )374,579 - - ( )941,150 ( )1,315,729 ( )1,413,158

Distributions - ( )1,603,500 - - ( )1,158,788 ( )2,762,288 ( )1,032,053

Unrealized gain(loss) due tochange inmarket valueofinvestments - - - - 2,602,501 2,602,501 ( )875,118

Excess(deficiency) ofrevenues overexpenses ( )54,923 ( )481,224 590 - 2,563,394 2,027,837 994,796

Interfundtransfers 54,923 - 1,100 - ( )56,023 - -

Balance - end ofyear - 1,385,047 58,741 5,803 19,691,973 21,141,564 19,113,727

DARTMOUTH GENERAL HOSPITAL CHARITABLE FOUNDATION 7STATEMENT OF CASH FLOWS


2021 2020

$ $CASH PROVIDED BY (USED FOR):

OPERATINGExcess of revenues over expenses 2,027,837 994,796Items not affecting cash

Amortization 54,923 18,550Unrealized loss (gain) due to change in market value

of investments ( )2,602,501 875,118Gain on sale of investments ( )143,475 ( )329,359

( )663,216 1,559,105Changes in non-cash working capital items

Accounts receivable 18,818 ( )78,187Prepaids ( )18,996 10,100Accounts payable and accrued liabilities 189,557 ( )16,136Deferred revenue ( )10,898 23,698Due to Nova Scotia Health Authority 1,057,351 ( )2,445,640

572,616 ( )947,060INVESTING

Purchases of investments ( )224,167 ( )18,919,280Proceeds on sale of investments 2,610,458 17,130,229Acquisition of capital assets ( )69,369 ( )222,587

2,316,922 ( )2,011,638

CHANGE IN CASH 2,889,538 ( )2,958,698

CASH - beginning of year 4,830,716 7,789,414

CASH - end of year 7,720,254 4,830,716

CASH CONSISTS OF:Cash 2,177,292 2,338,427Restricted cash 5,542,962 2,492,289

7,720,254 4,830,716

DARTMOUTH GENERAL HOSPITAL CHARITABLE FOUNDATION 8 NOTES TO THE FINANCIAL STATEMENTS


1. OPERATIONS

Dartmouth General Hospital Charitable Foundation ("the Foundation") works inpartnership with individuals, corporations, foundations, service organizations andgovernments to secure funding to support the patient care capital improvementrequirements of the Dartmouth General Hospital, a site of the Nova Scotia HealthAuthority ("NSHA").

The foundation is a not-for-profit organization and as such, is not subject to incometaxes.

2. SIGNIFICANT ACCOUNTING POLICIES

Basis of accounting

The financial statements were prepared in accordance with Canadian accountingstandards for not-for-profit organizations and include the following significantaccounting policies:

Fund accounting

Unrestricted fund

The Unrestricted Fund is used for the Foundation's day-to-day ongoing activitiesincluding fundraising activities, unrestricted contributions, television, parking andinvestment income. This fund includes the assets, liabilities, revenues and expensesother than those related to the Externally Restricted Funds or Capital Fund.

Externally restricted funds

The purpose of the Externally Restricted Funds is to account for contributionswhich have been restricted for a specified purpose by the contributor. Thecontributions are recorded in the appropriate fund based on the externalrestrictions associated with them.

Capital fund

The purpose of the Capital Fund is to account for capital assets, including theiracquisition, amortization and disposal. Contributions to the Capital Fund areinternally restricted.

Cash

Cash consists of cash on hand and bank balances that fluctuate held with a financialinstitution.



2. SIGNIFICANT ACCOUNTING POLICIES (Continued)

Capital assets

Capital assets are recorded at cost. Amortization is provided for using the followingrate and method over their estimated useful lives as follows:

Equipment and software 5 Year Straight line

One half year's amortization is taken in the year of acquisition.

Impairment of long-lived assets

Long-lived assets are tested for impairment whenever events or changes incircumstances indicate that their carrying value may not be recoverable. Animpairment loss is recognized when the carrying amount of the asset exceeds thesum of the undiscounted cash flows resulting from its use and eventual disposition.The impairment loss is measured as the amount by which the carrying amount ofthe long-lived asset exceeds its fair value.

Revenue recognition

The Foundation follows the restricted fund method of accounting for itscontributions.

Donation revenue recognized by the Foundation consists of unrestricted, externallyrestricted and internally restricted contributions. Unrestricted contributions arerecognized as revenue of the Unrestricted Fund when received or receivable if theamount is fixed or determinable and collection is reasonably assured. Externallyrestricted contributions are recognized as revenue in the appropriate restrictedfunds when received or receivable if the amount is fixed or determinable andcollection is reasonably assured. If externally restricted contributions are receivedfor a purpose for which no restricted fund has been established, the contributionsare deferred and recognized in the unrestricted fund when the related expense isincurred. Internally restricted contributions are recognized as revenue in theCapital Fund when received or receivable if the amount is fixed or determinableand collection is reasonably assured.

Net investment income that is not externally restricted is recognized as it is earnedin the statement of operations. Net investment income that is externally restricted isrecognized as direct increases or decreases in fund balances in the appropriateRestricted Fund.

Parking and special events revenue are recognized as the related service isprovided and collection is reasonably assured. Amounts received in advance of theservice being provided are recorded as deferred revenues.




Revenue recognition (Continued)

All other revenues are recognized when the risk and rewards of ownership transferto the Foundation, the amount is fixed or determinable and collection is reasonablyassured.

Contributed goods and services

Contributed materials and services are recognized in the financial statements whentheir fair value can be reasonably determined and they are used in the normalcourse of the Foundation's operations and would otherwise have been purchased.

The Foundation benefits from donated services in the form of volunteer time forvarious programs and objectives of the Foundation. Due to the difficulty ofdetermining their fair value, these contributed services are not recognized in thesefinancial statements.

Government assistance

Government assistance is recorded as revenue when received.

Income taxes

The Foundation is a registered charity under section 149.1(1) of the Income Tax Act,and, as such, is exempt from income taxes. Accordingly, no provision has beenmade in the accounts for income taxes.

Financial instruments

Measurement of financial instruments

The Foundation initially measures its financial assets and financial liabilities at fairvalue.

The Foundation subsequently measures all its financial assets and financialliabilities at amortized cost, except for investments in equity instruments that arequoted in an active market, which are measured at fair value. Changes in fair valueare recognized in excess of revenues over expenses.

Financial assets measured at amortized cost include cash, short term investmentsand accounts receivable.

Financial assets measured at fair value include investments.

Financial liabilities measured at amortized cost include accounts payable andaccrued liabilities and amount due to Nova Scotia Health Authority.




Financial instruments (Continued)

Impairment

Financial assets measured at amortized cost are tested for impairment when thereare indicators of impairment. The amount of any write down is recognized in excessof revenues over expenses. Any previously recognized impairment loss may bereversed to the extent of the improvement, directly or by adjusting the allowanceaccount, provided it is no greater than the amount that would have been reportedat the date of the reversal had the impairment not been recognized previously. Theamount of a reversal is recognized in excess of revenues over expenses.

Use of estimates

The preparation of financial statements in accordance with Canadian accountingstandards for not-for-profit organizations requires management to make estimatesand assumptions that affect the reported amounts of assets and liabilities anddisclosure of contingencies at the date of the financial statements and the reportedamounts of revenue and expenses during the reporting period. Estimates are usedwhen accounting for items and matters such as useful lives of capital assets andcertain accrued liabilities. Actual results could differ from those estimates.

3. ACCOUNTS RECEIVABLE2021

$2020

$

Trade receivables 81,572 67,813Government remittances recoverable - 32,577

81,572 100,390

4. INVESTMENTS

Fair value 2021

$

Fair value 2020 $

Pooled Funds 17,095,558 14,167,284GICs 68,540 2,637,129

17,164,098 16,804,413

Less: short term investments 70,224 2,570,078

17,093,874 14,234,335



5. CAPITAL ASSETSCost

$Amortization

$

Net2021

$

Net2020

$

Equipment and software 294,806 73,473 221,333 206,887

6. INTERNALLY IMPOSED RESTRICTIONS

The Foundation has committed to funding certain equipment for the DartmouthGeneral Hospital, a site of NSHA. Donations made for specific purposes arerestricted towards their specified use. The Foundation funds any shortfall forcommitments made from unrestricted fund balances.

7. COMMITMENT

As of April 2017, the Foundation has committed to contribute $11,000,000 to theNSHA, a related entity, which will be used towards the Dartmouth GeneralHospital Redevelopment project. To date, $5,232,511 (2020 - $3,732,511) has beendistributed from the Foundation to NSHA.

8. GOVERNMENT ASSISTANCE

During the year, the Foundation received $93,763 (2020 - $NIL) under the CanadaEmergency Wage Subsidy. This amount has been recognized in the current year asother revenue.

9. HST ADJUSTMENT

In the current year, it was determined that a change to HST regulations in 2014meant that HST in relation to monthly parking revenues should have beenremitted. The Foundation has assessed the HST payable on these revenues from2014 onwards. The HST adjustment on revenues recognized in previous years hasbeen recorded in the current year excess of revenues over expenses.

10. DISTRIBUTIONS

Distributions are amounts that have been committed by the Board of Directors tothe Dartmouth General Hospital, a site of NSHA, towards equipment purchasesand other related capital expenditures.



11. CAPITAL CAMPAIGN FUND

The Capital Campaign Fund includes amounts for two capital campaigns: TheAbove and Beyond Campaign which relates to funds to be used towards theDartmouth General Hospital Redevelopment Project and the Next Campaign whichrelates to funds for major capital equipment for the Dartmouth General Hospital.The current year operations and changes in fund balances attributable to each ofthese campaigns is as follows:

Above and Beyond

Campaign$

Next Campaign

$ Total

$

Balance - beginning of year 1,866,271 - 1,866,271Revenues 1,328,175 168,680 1,496,855Expenses ( )224,379 ( )150,200 ( )374,579Distributions ( )1,500,000 ( )103,500 ( )1,603,500

Balance - end of year 1,470,067 ( )85,020 1,385,047

12. FINANCIAL INSTRUMENTS

Risks and concentrations

The Foundation is exposed to various risks through its financial instruments. Thefollowing analysis provides a measure of the Foundation’s risk exposure andconcentrations at March 31, 2021.

It is management’s opinion that the Foundation is not exposed to significantliquidity, market, currency, interest rate and other price risks from its financialinstruments. The risks arising on financial instruments are limited to the following:

Credit risk

Credit risk is the risk that one party to a financial instrument will cause a financialloss for the other party by failing to discharge an obligation. Financial instrumentsthat potentially subject the Foundation to concentrations of credit risk consist ofcash, short term investments and investments. The Foundation deposits its cash,short term investments and investments in reputable financial institutions andtherefore believes the risk of loss to be remote.

13. COMPARATIVE FIGURES

Certain figures presented for comparative purposes have been reclassified toconform with the financial statement presentation adopted for the current year.

DARTMOUTH GENERAL HOSPITAL CHARITABLE FOUNDATION 14 SCHEDULES OF REVENUES AND EXPENSES


1. DONATIONS 2021$

2020 $

Bequests 10,150 25,011Direct mail and newsletter 112,092 157,424Annual giving 510,096 233,329Major gifts 335,367 165,020Memoriums 28,012 34,745Major Capital Campaign

Restricted 1,496,723 2,108,673 2,492,440 2,724,202

2. INVESTMENTS 2021$

2020 $

Dividends 109,541 105,394Gain on sale of investments 143,343 329,359Interest 273,452 353,548Capital Campaign

Gain on sale of investments - restricted 132 - 526,468 788,301

3. PARKING 2021$

2020 $

Revenue 563,477 758,822Transportation and infrastructure renewal portion ( )9,857 ( )21,441

553,620 737,381

ExpensesAmortization 54,923 18,550Bank charges 11,319 8,436HST adjustment (Note 9) 57,639 -Management fees 18,985 15,000Miscellaneous 25,595 13,484Rent - 3,750Repairs and maintenance 9,522 12,297Salaries and wages 96,715 75,926Security - 10,394Snow removal 37,833 30,669Supplies 6,189 9,955

318,720 198,461 234,900 538,920



4. SPECIAL EVENTS 2021$

2020 $

RevenuesAuction and lobster dinner 86,077 180,853Golf tournament 58,341 101,590Get Up There 29,903 73,275

174,321 355,718

ExpensesAuction and lobster dinner 9,149 52,460Golf tournament 9,538 22,545Get Up There - 21,239Other 1,532 -

20,219 96,244 154,102 259,474



5. FUNDRAISING AND OFFICE 2021$

2020 $

Advertising 9,440 3,559Annual report 2,016 5,956Board - 2,724Catering 666 1,887Conferences 503 5,476Courier 27 107Design work 254 -Direct mail 16,730 19,773Donor recognition 6,721 -Hospitality - 2,090Local travel 242 566Memberships 417 3,381Miscellaneous - 433Newsletter 11,990 12,197Photography 289 137Platform fees 4,471 -Postage 6,916 3,039Printing 4,622 2,341Prizes and gifts 3,287 -Recruitment 680 2,801Rentals 3,507 -Research tools 2,507 -Software and hardware 4,338 3,889Subscriptions and journals 3,334 597Supplies 10,480 12,120System maintenance and training 42,193 11,132Telecommunications 7,094 5,857Website and hosting 10,723 16,414

153,447 116,476

dartmouth general hospital foundation (mar 2021)fs6

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