BREAST CANCER SUPPORTIVE CARE FOUNDATION Financial Statements December 31, 2012

Breast Cancer Supportive Care Foundation

Index to the Financial Statements For the Years Ended December 31, 2011 and 2012

Page INDEPENDENT AUDITOR'S REPORT

1-2

FINANCIAL STATEMENTS Statements of Financial Position

3

Statements of Operations

4

Statements of Changes in Net Assets

5

Statements of Cash Flows

6

Notes to the Financial Statements

7 - 10

INDEPENDENT AUDITOR'S REPORT To the Members of Breast Cancer Supportive Care Foundation: Report on the financial statements We have audited the accompanying financial statements of Breast Cancer Supportive Care Foundation, which comprise the statements of financial position as at December 31, 2012, December 31, 2011 and January 1, 2011 and the statements of operations, changes in net assets and cash flows for the years ended December 31, 2012 and December 31, 2011, and a summary of significant accounting policies and other explanatory information. Management's responsibility for 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. Auditor's responsibility Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits 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 auditor's 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 auditor considers 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. Basis for Qualified Opinion In common with many charitable organizations, the Foundation derives revenue from donations and fundraising, 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 Foundation and we were not able to determine whether any adjustments might be necessary to contributions, excess of revenues over expenses, current assets and net assets. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

(Continued on next page)

1

INDEPENDENT AUDITOR'S REPORT (continued) 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 Breast Cancer Supportive Care Foundation as at December 31, 2012, December 31, 2011 and January 1, 2011 and the results of its operations and its cash flows for the years ended December 31, 2012 and December 31, 2011 in accordance with Canadian accounting standards for not-for-profit organizations.

April 10, 2013 Calgary, Alberta, Canada

2

Certified General Accountants

Breast Cancer Supportive Care Foundation

Statements of Financial Position As at December 31, 2012 and 2011 and January 1, 2011 2012

January 1, 2011

2011

ASSETS Current Cash and cash equivalents Short term investment (note 4) Goods and services taxes recoverable Accounts receivable Prepaid expenses

$

197,777 $ 5,055 5,978 7,794 30,747

91,735 $ 102,684 8,381 20,139 33,129

346,604 9,315 16,623 29,334 22,935

247,351

256,068

424,811

Non-current investment (note 4)

-

129,975

100,456

Property and equipment (note 5)

26,385

40,464

57,689

$

273,736 $

426,507 $

582,956

$

9,977 $

23,686 $

83,321

LIABILITIES AND NET ASSETS Current liabilities Accounts payable and accrued liabilities Deferred contributions related to operations (note 5)

Net assets Invested in property and equipment Unrestricted

$

Out of balance Approved on behalf of the Board:

-

2,614

77,840

9,977

26,300

161,161

26,385 237,374

40,464 359,743

57,689 364,106

263,759

400,207

421,795

273,736 $

426,507 $

582,956

-

Director: ____________________________________ Director: ____________________________________

3

The accompanying notes form an integral part of the financial statements.

0.00 January 0, 1900

Breast Cancer Supportive Care Foundation

Statements of Operations For the Years Ended December 31, 2011 and 2012

2012 Revenue Fundraising Donations Fees for services Grants Other revenue Interest

$

Expenses Salaries and wages Program delivery costs Office Professional fees Amortization Travelling Insurance Interest and bank charges Telephone Advertising and promotion Education and training Miscellaneous Bad debt Moving expenses

Deficiency of revenue over expenses

4

$

The accompanying notes form an integral part of the financial statements.

2011

347,410 $ 192,541 74,790 57,576 1,924 1,091

249,735 376,722 111,826 172,680 6,614 5,970

675,332

923,547

373,080 222,840 126,314 25,721 14,079 10,086 9,299 7,888 6,019 5,907 5,619 4,778 150 -

408,414 222,545 128,506 21,871 22,575 10,681 5,067 4,097 8,989 8,801 73,332 10,703 16,171 3,383

811,780

945,135

(136,448) $

(21,588)

Breast Cancer Supportive Care Foundation

Statements of Changes in Net Assets For the Years Ended December 31, 2011 and 2012

Invested in property and equipment

Unrestricted

2012

2011

Net assets, beginning of year Deficiency of revenue over expenses

$

40,464 $ (14,079)

359,743 $ (122,369)

400,207 $ (136,448)

421,795 (21,588)

Net assets, end of year

$

26,385 $

237,374 $

263,759 $

400,207

5

The accompanying notes form an integral part of the financial statements.

Breast Cancer Supportive Care Foundation

Statements of Cash Flows For the Years Ended December 31, 2011 and 2012

2012 OPERATING ACTIVITIES Cash receipts from contributors and customers Payments to suppliers and employees Interest received

$

INVESTING ACTIVITIES Proceeds from sale of investments, net of purchases Purchase of property and equipment

Increase (decrease) in cash Cash and cash equivalents, beginning of year Cash and cash equivalents, end of year

$

771,659 $ (796,683) 1,091

2011 757,224 (983,194) 5,970

(23,933)

(220,000)

129,975 -

(29,519) (5,350)

129,975

(34,869)

106,042

(254,869)

91,735

346,604

197,777 $

91,735

197,777 -

86,735 5,000

197,777 $

91,735

Cash and cash equivalents consists of: Cash Term deposits $

6

The accompanying notes form an integral part of the financial statements.

Breast Cancer Supportive Care Foundation

Notes to the Financial Statements For the Years Ended December 31, 2011 and 2012 1.

PURPOSE OF THE ORGANIZATION Breast Cancer Supportive Care Foundation (the Foundation) is a not-for-profit organization dedicated to supporting breast cancer patients. The Foundation was incorporated under the Companies Act of Alberta on October 19, 2005 and commenced operations in March of 2006. The Foundation is a registered charity and under section 149 of the Income Tax Act (Canada) is exempt from the payment of income tax.

2.

IMPACT OF THE CHANGES IN THE BASIS OF ACCOUNTING Effective January 1, 2012, the Foundation adopted the requirements of the Canadian Institute of Chartered Accountants (CICA) Handbook – Accounting, electing to adopt the new accounting framework: Canadian accounting standards for notfor-profit organizations. These are the Foundation’s first financial statements prepared in accordance with these accounting standards, which has been applied retrospectively. The accounting policies set out in the following significant accounting policy note have been applied in preparing the financial statements for the year ended December 31, 2012, the comparative information presented in these financial statements for the year ended December 31, 2011 and in the preparation of an opening statement of financial position as at January 1, 2011 (the Foundation’s date of transition). The Foundation issued financial statements for the year ended December 31, 2011 using generally accepted accounting principles prescribed by the CICA Handbook – Accounting XFI. The adoption of Canadian accounting standards for not-forprofit organizations had no impact on the Foundation's excess of revenues over expenses for the year ended December 31, 2011 or on the net assets as at January 1, 2011, the date of transition. Certain of the Foundation’s disclosures included in these financial statements reflect the new disclosure requirements of Canadian accounting standards for not-for-profit organizations. Note that the Foundation’s 2012 statement of financial position is three columns: December 31, 2012, December 31, 2011 and January 1, 2011. The balances for the January 1, 2011 statement of financial position are the same as those shown for December 31, 2010 because there were no transitional adjustments to these balances.

3.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES These financial statements have been prepared in accordance with Canadian accounting standards for not-for-profit organizations in Part III of the CICA Handbook, and in management's opinion, have been properly prepared within reasonable limits of materiality and within the framework of the significant accounting policies summarized below: a) Revenue recognition The Foundation follows the deferral method of accounting for contributions. Operating grants are recognized as revenue, either in the period received, or, when a portion of the grant relates to a future period, deferred and recognized in the subsequent period. Unrestricted contributions are recognized as revenue when received or receivable if the amount to be received can be reasonably estimated and collection is reasonably assured. Amounts pledged as future donations are not recognized in the accounts. Restricted contributions are recognized as revenue in the year in which the related expenses are incurred. (Continues...)

7

Breast Cancer Supportive Care Foundation

Notes to the Financial Statements For the Years Ended December 31, 2011 and 2012

3.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (...Continued) b) Cash and cash equivalents Cash and cash equivalents consist of cash on hand, amounts held with financial institutions that can be readily converted to cash, and term deposits with original maturities of three months or less. c) Property and equipment Property and equipment are stated at cost less accumulated amortization. Property and equipment are amortized over their estimated useful lives at the following rates and methods: Computer equipment Equipment Furniture and fixtures Leasehold improvements Library and resource materials Software

20% 20% 20% 20% 20% 20%

Straight line Straight line Straight line Straight line Straight line Straight line

The Foundation regularly reviews its property and equipment to eliminate obsolete items. d) Goods and Services Tax Goods and services tax is recoverable at 50% as a rebate. The unrecoverable 50% is recorded as part of the expense with the rebate treated as a receivable. e) Financial instruments The Foundation initially measures its financial assets and financial liabilities at fair value. It subsequently measures all of its financial assets and financial liabilities at amortized cost. The financial assets measured at amortized cost include cash, guaranteed investment certificates, accounts receivable and goods and services taxes recoverable. The financial liabilities measured at amortized cost include accounts payable and accrued liabilities. f) Contributed goods and services Volunteers contribute many hours per year to assist the Foundation in carrying out its programs. Due to the difficulty in determining the fair value, contributed services are not recognized in the financial statements. Contributed goods are recognized where the fair value is readily determinable and the goods would have been purchased had they not been contributed. g) Management Estimates The preparation of financial statements in accordance with Canadian accounting standards for not-for-profit organizations requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingencies at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

8

Breast Cancer Supportive Care Foundation

Notes to the Financial Statements For the Years Ended December 31, 2011 and 2012

4.

INVESTMENTS Guaranteed investment certificate, bearing interest of 1.0%, maturing March 2013 Guaranteed investment certificate, bearing interest of 1.1%, redeemed in March 2012 Guaranteed investment certificate, bearing interest of 1.25%, matured in December 2012

5.

PROPERTY AND EQUIPMENT Cost Computer equipment Equipment Furniture and fixtures Leasehold improvements Software

6.

$

2012 Accumulated Amortization

2012 5,055 5,055

$ $

2011

102,684 129,975 232,659

2011 Net Book Value

Net Book Value

$

17,543 $ 5,818 35,700 33,963 18,460

13,922 $ 5,696 35,700 11,321 18,460

3,621 $ 122 22,642 -

7,130 1,286 256 28,303 3,489

$

118,576 $

92,191 $

26,385 $

40,464

DEFERRED CONTRIBUTIONS

2012

Deferred contributions related to operations: Beginning balance Contributions received during the year Amounts recognized as revenue

$

Ending balance

7.

$

$

2011

2,614 $ 54,463 (57,077) -

$

77,840 97,454 (172,680) 2,614

RELATED PARTY TRANSACTION AND COMMITMENT $5,354.50 was paid to the vice president for contracted work to support the transition to the new organization's structure and new Executive director. These transactions were in the normal course of operations and have been measured at the agreed upon exchange amount. The consideration amounts established and agreed upon by Breast Cancer Supportive Care Foundation are similar to those negotiated with third parties. In 2010, a corporation controlled by a director of the Foundation entered into a lease for premises occupied by the Foundation. The Foundation has indemnified the corporation for all costs associated with this lease, and as the beneficial lessee and occupant the Foundation has the following commitments: 2013 2014 2015 2016

9

41,005 44,250 44,250 40,563

Breast Cancer Supportive Care Foundation

Notes to the Financial Statements For the Years Ended December 31, 2011 and 2012

8.

ADDITIONAL INFORMATION TO COMPLY WITH DISCLOSURE REQUIREMENTS OF THE CHARITABLE FUND RAISING ACT OF ALBERTA AND REGULATIONS Gross fundraising contributions received in the current year were $347,410 (2011 - $249,735). All monies received from fundraising were used for program expenses, operating expenses and administrative expenses. No specific item was purchased which accounted for over 10% of the contributions received. All expenses incurred for fundraising were $167,241 (2011 - $122,167) and for the purposes of solicitating contributions were $5,907 (2011 - $8,801). No funds were paid as remuneration to fund-raising businesses, including any expenses, fees or reimbursements paid to fundraising businesses. No amounts were paid to employees for fundraising activities.

9.

FINANCIAL INSTRUMENTS The Foundation is required to report financial instruments under the new accounting framework of Accounting Standards for Not-for-Profit Organizations as described in CICA Handbook Section 3856. The Foundation's financial instruments consist of cash and cash equivalents, short-term investment, accounts receivable, goods and services tax recoverable, accounts payable and accrued liabilities. Unless otherwise noted, it is management's opinion that due to the nature of these financial instruments, the Foundaiton is not exposed to significant market, interest rate, or credit risk. The carrying value of these financial instruments approximates their fair value, unless otherwise noted.

10. COMPARATIVE FIGURES Certain comparative figures have been reclassified to conform with the current year's financial statement presentation.

10