VICTORIA FREENET ASSOCIATION Financial Statements 1995/6

VICTORIA FREENET ASSOCIATION

FINANCIAL STATEMENTS OCTOBER 31,1996

(Unaudited)

NOTICE TO READER

We have compiled the balance sheet of Victoria Freenet Association as at October 31, 1996 and the statements of revenue and expense and changes in cash for the year then ended, from information provided by management.

We have not audited, reviewed or otherwise attempted to verify the accuracy or completeness of such information. Readers are cautioned that these statements may not be appropriate for their purposes.

Victoria, British Columbia (signed) MacPherson Brown Flanagan & Fletcher
January 2, 1997 CHARTERED ACCOUNTANTS

VICTORIA FREENET ASSOCIATION

BALANCE SHEET

AS AT OCTOBER 31, 1996

	1996	1995
		(Note 4)
ASSETS
Current Cash and term deposits	$ 19,565	$ 20,862
Accounts receivable	13,126	-
Inventory	-	1,866
Prepaid expenses	788	4,725
	33,479	27,453
Capital, at net carrying amount (Note 5)	25,156	14,652
	$ 58,635	$ 42,105
LIABILITIES
Current Accounts payable	$ 16,553	$ 7,018
MEMBERS' EQUITY
Association balance, beginning of year	35,087	32,971
Excess of revenue over expense for the year	6,995	2,116
Association balance, end of year	42,082	35,087
	$ 58,635	$ 42,105

VICTORIA FREENET ASSOCIATION

STATEMENT OF REVENUE AND EXPENSE

FOR THE YEAR ENDED OCTOBER 31, 1996

1996 1995
(Note 4)
Revenue
Casino and fund raising $ 11,559 $ 34,353
Donations 21,793 27,094
Government funded contracts 64,882 5,000
Member dues 12,575 525
Sales 1,924 3,012

112,733

69,984

Expense
Operations
Amortization 6,830 7,837
Computer 1,252 3,211
Conferences - 5,251
Goods and services tax 4,503 2,907
Rent 10,062 6,057
Telephone 36,900 18,807

59,547

44,070

Contract services
B.C.C.N.A. contract 27,220 -
Youth employment wages 9,233 -

36,453

-

Fund raising
Casino 5,142 18,121
Sundry 134 -

5,276

18,121

Administration
Advertising and promotion 1,782 372
Bad debts 90 309
Bank charges 327 229
Dues and subscriptions 327 75
Honorarium and management fees - 2,000
Insurance 425 425
Office and postage 1,011 1,506
Professional fees 500 761

4,462

5,677

Total expenses 105,738 67,868
Excess of revenue over expense for the year
$ 6,995

$ 2,116

VICTORIA FREENET ASSOCIATION

STATEMENT OF CHANGES IN CASH

FOR THE YEAR ENDED OCTOBER 31, 1996

1996 1995
(Note 4)
Operating activities
Excess of revenue over expense for the year
$ 6,995 $ 2,116
Add: Item not affecting cash
Amortization
6,830
7,837

13,825 9,953
Cash provided (consumed) by changes in
non-cash working capital items
2,212
(159)

16,037
9,794

Investing activity
Purchase of capital assets
(17,334)
(8,494)

Increase (decrease) in cash and term deposits during the year (1,297) 1,300
Cash and term deposits, beginning of year 20,862 19,562
Cash and term deposits, end of year
$ 19,565

$ 20,862

	1996	1995
		(Note 4)
Operating activities
Excess of revenue over expense for the year	$ 6,995	$ 2,116
Add: Item not affecting cash Amortization	6,830	7,837
	13,825	9,953
Cash provided (consumed) by changes in non-cash working capital items	2,212	(159)
	16,037	9,794
Investing activity
Purchase of capital assets	(17,334)	(8,494)
Increase (decrease) in cash and term deposits during the year	(1,297)	1,300
Cash and term deposits, beginning of year	20,862	19,562
Cash and term deposits, end of year	$ 19,565	$ 20,862

VICTORIA FREENET ASSOCIATION

NOTES TO FINANCIAL STATEMENTS

OCTOBER 31,1996

Purpose
The purpose of the Association is to provide computer-based telecommunication services at no charge to the community, and promote electronic data exchange locally and on an international basis. The Association is registered under the provisions of the Society Act of British Columbia and provides its services on a not-for-profit basis.
Summary of significant accounting policies
- Capital assets
  Capital assets are recorded at cost, net of any Government funding. Amortization is provided for using the following rates and methods:
  One-half of the normal amortization is taken on assets acquired during a particular year.
- Revenue recognition
  Revenue is recorded when earned. Government grants related to the acquisition of equipment are applied to reduce the cost of the equipment as described in Note 2(a) above.
- Donated services
  The Association receives the benefit of a significant amount of donated services, the value of which is not recorded in the accounts.
Income taxes
The Association is exempt from income taxes under provisions of the Income Tax Act.
Comparative figures
The comparative figures have been compiled by another public accountant.

Capital assets

	Cost	Accumulated Amortization	1996 Net Carrying Amount	1995 Net Carrying Amount (Note 4)
Computer equipment	$ 74,380	$ 49,394	$ 24,986	$ 14,312
Software licenses	850	680	170	340
	$ 75,230	$ 50,074	$ 25,156	$ 14,652

Victoria, British Columbia	(signed) MacPherson Brown Flanagan & Fletcher
January 2, 1997	CHARTERED ACCOUNTANTS

	1996	1995
		(Note 4)
Revenue
Casino and fund raising	$ 11,559	$ 34,353
Donations	21,793	27,094
Government funded contracts	64,882	5,000
Member dues	12,575	525
Sales	1,924	3,012
	112,733	69,984
Expense
Operations
Amortization	6,830	7,837
Computer	1,252	3,211
Conferences	-	5,251
Goods and services tax	4,503	2,907
Rent	10,062	6,057
Telephone	36,900	18,807
	59,547	44,070
Contract services
B.C.C.N.A. contract	27,220	-
Youth employment wages	9,233	-
	36,453	-
Fund raising
Casino	5,142	18,121
Sundry	134	-
	5,276	18,121
Administration
Advertising and promotion	1,782	372
Bad debts	90	309
Bank charges	327	229
Dues and subscriptions	327	75
Honorarium and management fees	-	2,000
Insurance	425	425
Office and postage	1,011	1,506
Professional fees	500	761
	4,462	5,677
Total expenses	105,738	67,868
Excess of revenue over expense for the year	$ 6,995	$ 2,116