WCRI 2007 Annual General Meeting Notice and Financial Statements

8/14/2019 WCRI 2007 Annual General Meeting Notice and Financial Statements

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WATERLOO CO-OPERATIVE

RESIDENCE INC.

Sunday, November 25th, 2007

7pm, Weavers' Arms

Come out to get th e latest news on WeRl!

Vote for your Board of Directors!

Enjoy refreshments!

Win prizes!

Members + Involvement = WCRI

See www.wcri.coop/generalmeeting forAGM reports and more info.

FALL 2007 ANNUAL GENERAL MEETING AGENDAWATERLOO CO-oPERA TIVE RESIDENCE

INCORPORATEDSunday, November 25 th , 2007, 7:00 PM,Weavers' Arms

1. ADOPTIONOF AGENDAKris Vervoort

2. NEW BUSINESSa) Financials ta tement

3. READING AND APPROVALOF MINUTESLeahEvans

4. ELECTION OF DIRECTORSa) Close of nominationsb) Speeches bycandidatesc) Voting by secret ballot

5. REPORTS OF OFFICERS AND COUNCILSa) Presidentb) General Managerc) Interdivisional Councild) InterdivisionalSocialCouncil

6. NEW BUSINESS: OtherKris Vervoort

7. OPEN F ORUM

IMPORTANT NOTES

Several PRIZES will be drawnthrough out the meeting. A main prize ofaNintendo Wiiwillbe drawn at the end of the meeting. You must be inattendance to win,FREE FOOD willbe provided to all attendees.Members INTERESTEDIN RUNNING FOR THE POSITION OF DIRECTORshould contact the President ([email protected]). There willbe four oneyear positions available. More informationcan be obtained from the generalmanager in the office or from any director.Members must present VALID PHOTO IDENTIFICATION (drivers'license,student card, passport, etc.) in order to vote in the election ofdirectors.New business NOT MENTIONEDIN THIS AGENDAmust be submitted to thepresident by November 19 th To protect those members who do not attend themeeting, only unimportantbusiness willbe added to the agenda in thismanner.


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Waterloo Co-operative ResidenceIncorporatedFinancial StatementsFor th e year ended April 30, 2007

Contents

Auditors' Report

Financial.Statements

Statement of Rnancial Position

Statement of Operations and Changes in Fund Balances

Statement of Cash Flows

Summary of Significant Accounting Policies

Notes to Financial Statements

Auditors' Comments on SupplementaryFinancia l Informat ion

Supplementary Financial Information

Schedule of Division Expenses

Scheduie of Administrative Expenses

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Waterloo Co-operative Residence IncorporatedNotes to Financial Statements

April 30, 2007

6. Long-term Debt (continued)

Principal repayments are as follows:

Year

20082009201020112012

Thereafter

Amount

$ 409,701425,772450,664477,004504,125

5,716,404

$ 7,983,670

7. Contingency

In the ordinary course of business, a lawsuit has been filed against the Co-operative. In theopinion of management and legal counsel, the outcome of the lawsuit, now pending, willinvolve amounts that would not have a material adverse effect on the position of t h e Coperative. Should any loss result from the resolution of these claims, such loss would becharged against income in the period in which the claim is settled.

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April 30, 2007

8. Schedule of Other Funds

RedevelopmentReserve

Fund

EmergencyReserve

Fund

CapitalReplacement

Fund

2007Total

2006Total

Invesbnents $ 153,588 $ 423,263 $ 37,500 $ 614,351 $ 441,127

Fund balance,beginning of year $ 110,281 $ 330,846 $ - $ 441,127 $ 359,042

Interest income 5,807 17,417 23,224 7,085

Interfundtransfer (Note 9) 37,500 75,000 37,500 150,000 75,000

Fund balance,end of year $ 153,588 $ 423,263 $ 37,500 $ 614,351 $ 441,127

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April 30, 2007

9. Interfund Transfers

Capital Fund

Purchase of capital assets with unrestricted fundsRepayment of long-term debt with unrestricted fundsInterest on long-term debt paid with unrestricted fundsNet change in accounts payable .Proceeds of long-term debt

Redevelopment Reserve FundTransfer of temporary investments from General Fund

Emergency Reserve FundTransfer of temporary investments from General Fund

Capital Replacement Reserve FundTransfer of temporary investments from General Fund

10. Statutory Note - Non-Member Revenue

$ 185,5463,058,359

533,053(12,538)

(2,850,000)

$ 914,420

$ 37,500

75,000

37,500

$ 150,000

The revenue for business transacted with non-members did not amount to 20% of the total

revenue earned as defined in the Co-operative Corporations Act.

11. Commitments

The Co-operative leases equipment under operating leases expiring in October 2011 andOctober 2013. Future minimum lease payments are as follows:

Year Amount

2008 $ 19,5092009 20,949

2010 20,9492011 20,9492012 13,354

Thereafter 4,318

$ 100,028

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IBDOBD O Dunwoody LLPChartered Accountantsand Advisors

305 King Street West Suite 401Kitchener Ontario canada' N2G 189Telephone, (519) 5765220Fa " (519) 576-5471www.bdo.ca

Auditors ' Comments on Supplementary Financial Information

To the Members ofWaterloo co-operative Residence Incorporated

The audited financial statements of the Co-operative as at April 30, 2007 and our report thereondated July 13, 2007 are presented in the preceding section of this annual report. The financialinformation presented hereinafter was derived from the accounting records tested by us as part ofthe auditing procedures followed in our examination of the financial statements and, in our opinion,it is fairly presented in all materiai respects in relation to the financial statements taken as a whole.

Chartered Accountants, Licensed Public Accountants

Kitchener, OntarioJuly 13, 2007

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BDO Dunwoody LLP is a Limited Liability Partnersflip registered in Ontario


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Waterloo Co-operative Residence IncorporatedSchedule of Division Expenses

Fo r th e year ended April 30 2007 2006

2007 Budget General Capital(Unaudited) Fund Fund Total TotalVariable

KitchenFood $ 162,000 $ . $ - $ - $ 198,682Supplies 11,335 9,693Wages and benefits 68,218 13,832 13,832 135,511

241,553 13,832 13,832 343,886

OperatingCleaning, laundry, supplies

and waste disposal 117,982 84,969 84,969 60,398Wages and benefits 53,110 48,494 48,494 53,283

171,092 133,463 133,463 113,681

MaintenanceGeneral 59,250 39,561 39,561 41,225Wages and benefits 140,765 143,749 143,749 161,745

200,015 183,310 183,310 202,970

Utilities 473,600 485,071 485,071 470,361

$ 1,086,260 $ 815,676 $ - $ 815,676 $ 1,130,898Fixed

Amortization-buildings $ 345,000 $ - $ 503;916 $ 503,916 $ .348,276Amortization-building

improvements 228,000 226,496 226,496 223,015Amortization-equipment,

furniture and appliances 174,000 127,851 127,851 171,412Municipal taxes 252,000 195,027 195,027 274,439

$ 999,000 $ 195,027 $ 858,263 $ 1,053,290 $ 1,017,142

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Waterloo Co-operative Residence IncorporatedSchedule of Administrative Expenses

Fo r the year ended April 30 2007 2006

2007 Budget General Capital(Unaudited) Fund Fund Total Total

Variable

Bad debt $ 14,000 $ 2,550 $ . $ 2,550 $ 4,474Bank charges and interest 30,000 36,543 36,543 29,549Conferences 6,000 5,899 5,899 4,677Employee benefits 58,657 50,998 50,998 55,535Equipment leasing 30,380 26,655 26,655 28,993Hiring expense 3,000 504 504 5,915Office expenses 23,090 15,572 15,572 15,848Professional services 60,660 59,107 . 59,107 64,941

Staff training .4,000 2,083 2,083 822Telephone 13,230 12,576 12,576 16,397Wages 248,217 227,175 227,175 281,396

$ 491,234 $ 439,662 $ - $ 439,662 $ 508,547Fixed

Insurance $ 31,200 $ 28,679 $ - $ 28,679 $ 31,578Interest on long-term debt 466,200 533,053 533,053 325,235

$ 497,400 $ 28,679 $ 533,053 $ 561,732 $ 356,B13

Co-operative Development

Board retreat $ 7,500 $ 4,767 $ - $ 4,767 $ 5,992Double room referral 9,000 5,550 5,550 3,900DRIP purchases 7,500 5,795 5,795 3,544Education and orientation 17,670 8,649 8,649 10,546External Co-op Affairs 1,200 898 898 552Fees, dues and

memberships 11,400 7,149 7,149 9,143Marketing 38,200 17,489 17,489 19,956Meetings 14,025 10,135 10,135 11,843Social and event expense 10,500 7,967 7,967 7,971

Toadlane 4,800 4,022 4,022 2,152$ 121,795 $ 72,421 $ - $ 72,421 $ 75,599

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IBDOBOO Dunwoody UPChartered Accountantsand Advisors

305 King Street West Suite 401

Kitchener Ontar io Canada N2G 189Telephone, {5191 576-5220Fax, (519)576-5471WlVW.bdo.al

Auditors' Report

To the Members ofWaterloo Co-operative Residence Incorporated

We have audited the statement of financial position of Waterloo Co-operative ResidenceIncorporated- as at April 30, 2007 and the statements of operations and changes in fund balancesand cash flows for the year then ended. These financial statements are the responsibility of the cooperative's management Our responsibility is to express an opinion on these financial statementsbased on our audit.

We conducted our audit in accordance with Canadian generally accepted auditing standards. Thosestandards require that we plan and perform an audit to obtain reasonable assurance whether the

financial statements are free of material misstatement. An audit includes examining, on a test basis,evidence supporting the amounts and disclosures in the financial statements. An audit also includesassessing the accounting principles used and significant estimates made by management, as wellas evaluating the overall financial statement presentation.

In our opinion, these financial s ta tements present fairly, in all materia l respects, the financialposition of the co-operative as at April 30, 2007 and the results of its operations and its cash flowsfo r the year then ended in accordance with Canadian generally accepted accounting principles. Asrequired by the Co-operative Corporations Act, we report t h a ~in ou r opinion, these principles havebeen applied on a basis consistent with that of the preceding year.

Chartered Accountants, Licensed Public Accountants

Kitchener, OntarioJuly 13, 2007

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BOO Dunwoody LLP is a Limited Liability Partner'ihip registered in Ontario


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Waterloo Co-operative Residence IncorporatedStatement of Financial Position

April 30 2007 2006

General Capital OtherFund Fund Funds Total Total

Assets (Note 8)

CurrentCash (Note 1) $ 1,174,410 $ $ $ 1,174,410 $ 567,558Temporary investments (Note 2) 394,924 614,351 1,009,275 483,806Accounts receivable (Note 3) 40,692 40,692 81,253Prepaid expenses 34,104 34,104 23,986

1,644,130 614,351 2,258,481 1,156,603

Capital (Note 4) 10,519,930 10,519,930 11,192,646Investments 7,250 7,250 7,250

$ 1,651,380 $ 10,519,930 $ 614,351 $ 12,785,661 $ 12,356.499

Liabilities and Fund Balances

CurrentAccounts payable and accrued liabilities (Note 5) $ 73,874 $ 44,702 $ $ 118,576 $ 72,806Deposits and unearned fees 863,039 863,039 705,065Current portion of long-term debt (Note 6) 409,701 409,701 3,055,743

936,913 454,403 1,391,316 3,833,614Long-term debt (Note 6) 7,573,969 7,573,969 5,136,286

936,913 8,028,372 8,965,285 8,969,900

Contingency (Note 7)

Fund balancesinvested in capital assets 2,491,558 2,491,558 2,968,454Internally restricted 614,351 614,351 441,127Unrestricted 714,467 714,467 (22,982)

714,467 2,491,558 614,351 3,820,376 3,386,599

$ 1,651,380 $ 10,519,930 $ 614,351 $ 12,785,661 $ 12,356.499

Approved by the Board: Director Director

The accompanying summary of significant accounting policies and notes are an Integral part of these flnanclal statements. 3


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Waterloo Co-operative Residence IncorporatedStatement of Operations and Changes in Fund Balances

For the year ended April 30 2007 2006

2007 Budget General Capital other Funds(Unaudited) Fund Fund (Note 8) Total Total

RevenueAccommodation, meals $ 3,321,783 $ 3,201,513 $ $ $ 3,201,513 $ 3,200,564UtilitiesParking, laundry and

miscellaneous 55,000 96,966 96,966 83,160

Other Income 30,000 54,855 23,224 78,079 ,107,014Total revenue' 3,406,783 3,353,334 23,224 3,376,558 3,390,738Division expenses

Variable 1,086,260 815,676 815;676 1,130,898Fixed 999,000 195,027 858,263 1,053,290 1,017,142

2,085,260 1,010,703 858,263 1,868,966 2,148,040Administrative expenses

Variable 491,234 439,662 439,662 508,547Fixed 49,7,400 28,679 533,053 561,732 356,813Co-operative development 121,795 72,421 72,421 75,599

1,110,429 540,762 533,053 1,073,815 940,959

Total expenses 3,195,689 1,551,465 1,391,316 2,942,781 3,088,999

Operating surplus (deficit) 211,094 1,801,869 (1,391,316) 23,224 433,777 301,739

other ItemGain on disposal of capital assets 6,926

E xc e ss o f revenue overexpenses for the year $ 211,094 1,801,869 (1,391,316) 23,224 433,777 308,665

Fund balance, beginnin9 of year (22,982) 2,968,454 441,127 3,386,599 3,077,934Interfund transfers (Note 9) (1,064,420) 914,420 150,000

Fund balance, end ofyear $ 714,467 $ 2,491,558 $ 614,351 $ 3,820,376 $ 3,386,599

The accompanying summary of significant accounting policies and notes arean

integral part of these financial statements. 4


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Waterloo Co-operative Residence IncorporatedStatement of Cash Flows

Fo r the year ended April 30 2007 2006

Cash flows from operating activitiesExcess of revenue over expenses for the year $ . 433,777 $ 308,665Item not involving cash

Amortization 858,263 742,703Gain on disposal of capital assets (6,926)

1,292,040 1,044,442

Changes in non-eash working capital balancesAccounts receivable 40,561 (62,612)Prepaid expenses (10,118) 4,465Accounts payable and accrued liabilities 45,770 (253,744)Deposits and unearned fees 157,974 7,734

1,526,227 740,285

Cash flows from investing activitiesPurchase of capital assets (185,547) (2,727,698)Proceeds on sale of capital assets 9,100Purchase of temporary investments (525,469) (297,153)Proceeds on sale of temporary investments 581,139

(711,016) (2,434,612)

Cash f lows from financing activitiesRepayment of long-term debt (3,058,359) (666,742)Proceeds of long-term debt 2,850,000 2,850,000Member loans donated to organization (45,267)

(208,359) 2,137,991

Increase in cash dur ing the year 606,852 443,664

Cash, beginning of year 567,558 123,894

Cash, end of year $ 1,174,410 $ 567,558

The accompanying summary of significant accounting policies and notes are an integral part of these financial statements

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Waterloo Co-operative Residence IncorporatedSummary of Significant Accounting Policies

April 3D, 2007

Nature of Business

Fund Accounting

Waterloo Co-operative Residence Incorporated is incorporatedwithout share capital and qualifies for tax purposes as a tax exempt,non-profit organization according to section 149(1)(1) of the IncomeTax Act. The organization provides student housing in Waterloo,Ontario.

The General Fund accounts for the co-operative's ongoing operations.

The Capital Fund reports the assets, liabilities, revenues andexpenses related to the co-operative's capital assets.

The Redevelopment Reserve Fund is used solely for the funding of amajor redevelopment of existing properties or the construction of newproperties.

The Emergency Reserve Fund is used solely in circumstances thatrequire immediate use of cash to prevent insolvency or the riskthereof.

The Capital Replacement Fund is used solely for the funding of repairand replacement of existing capital assets as necessary.

Revenue Recognition Waterloo Co-operative Residence Incorporated follows the deferralmethod of accounting for revenue. . Revenue is recognized in theappropriate fund When received or receivable if the amount to bereceived can be reasonably estimated and collection is reasonablyassured. Investment income is recognized as revenue of theapproprlate fund when earned.

Financial Instruments Unless otherwise noted, it is management's opinion that theorganization is not exposed to significant interest, currency or creditrisks arising from its financial instruments. The 'fair values of thesefinancial instruments approximate their carrying values, unlessotherwise noted.

Temporary Investments Temporary investments are recorded at cost plus accrued interest.

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April 3D, 2007

Capital Assets

Waterloo Co-operative Residence IncorporatedSummary of Significant Accounting Policies

Capital assets are recorded at cost.

The buildings are amortized as follows:

268 Phillip Street

280 Phillip Street139 University Avenue

30 years using the annuity methodwhich provides that the totalamortization and related mortgageinterest expense be equallyapportioned over the life of thebuildings.50 years annuity method20 years straight line

Amortization of other capital assets is based on the estimated usefullife of the asset as follows:

Fumiture, equipment andappliances

Exterior building improvementsInterior building improvementsVehiclePaving

- 2, 5, 7 and 10 years straight line- straight line to 2012- 20 years straight line- 5 years straight line- 20 years straight line

Investments

Contributed Services

Use of Estimates

For all capital assets, amortization commences the year following theyear of acquisition.

Investments are recorded at cost.

Volunteers contribute hours to assist the co-operative in carrying outits services. Because of the difficUlty of determining their fair value,contributed services are not recognized in the financial statements.

The preparation of financial statements in accordance with Canadiangenerally accepted accounting principles requires management tomake estimates and assumptions that affect the reported amounts ofassets and liabilitie,s at the date of the financial statements, and thereported amounts of revenues and expenses during the reportingperiod. Actual results could differ from management's best estimatesas additional information becomes available in the future.

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April 30, 2007

1. Cash

The organization's bank accounts are held at two chartered banks. The accounts are non-interest bearing. .

The organization is authorized to borrow a maximum of $100,000 under an operating loanagreement. The loan bears interest at prime plus 1.75% and is due on demand. At April 30,2007, the unused credit capacity was $100,000.

2. Temporary Investments

The temporary investments consist of money market funds earning interest at market rates.

3. Accounts Receivable2007 2006

Trade $ 47,692 $ 92,353Less: Allowance for doubtful accounts (7,000) (11,100)

$ 40,692 $ 81,253

Amortization expense totalled $858,263 (2006 - $742,703) and was charged to the capitalfund.

Included in furniture, equipment and appliances is $102,284 of' kitchen equipment withaccumulated amortization of $91,756 that is no longer being used by the organization. Theorganization is holding the assets as kitchen facilities may re-open in the future.

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April 3D, 2007

5. Accounts Payable and Accrued Liabilities2007 2006

Trade accounts payableAccrued liabilities

$

$

72,973 $45,603

118,576 $

49,79423,012

72,806

6. Long-term Debt2007 2006

6-3/8% mortgage, payable in semi-annual instalmentsof $73,403 principal and interest, secured by the 280Phillip Street property, maturing March 2019 $ 1,218,380 $ 1,284,345

5.45% mortgage, payable in monthly instalments of$40,929 principal and interest, secured by a first mortgageon the 268 Phillip Street property, a collateral mortgage onthe 139 University Avenue property and an assignment ofrents, maturing September 2015 3,907,859 4,180,354

0% loan, payable $743 per month, secured by vehicle,maturing February 2008 7,431 16,349

Prime piUS 1.5% construction loan, repaid during the year 2,710,981

6.257% mortgage, payable in monthly instalments of$18,672 principal and interest, secured by a first mortgageon 139 University Avenue property and assignment of rents;maturing April 2012 2,850,000

7,983,670 8,192,029

Less current portion 409,701 3,055,743

$ 7,573,969 S 5: 136,286

Interest expense on the above debt totalled $533,053 (2006 - $417,292).

WCRI 2007 Annual General Meeting Notice and Financial Statements

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