The ICF is a privately registered foundation which reports to its member regional districts and First Nations. The ICF was incorporated under the laws of the Government of Canada on January 1, 2004 and is a registered charity under the Income Tax Act and, as such, is exempt from income taxes and able to issue donation receipts for income tax purposes. In order to maintain the status of a charitable organization under the Act, the Foundation must meet certain requirements within the Act. In the opinion of management, these requirements have been met. The Foundation’s purpose is to preserve and use the corridor in perpetuity, as one continuous corridor to connect and benefit all Island and First Nations communities along the corridor.
The Board is made up of 12 directors appointed by the member bodies. The Chief Executive Officer oversees the daily operations and works through policy and authority as mandated by the Board.
The Board has contracted with Granneke Management and Consulting Services to provide the Chief Executive Officer services and the daily management functions.
A Financial Officer and First Nation Liaison are employed by the ICF.
Meyers Norris Penny LLP presents a yearly review to the ICF Board of Directors.
The financial statements are prepared on a going concern basis which contemplates the realization of assets and the payment of liabilities in the ordinary course of business.
The Foundation has had significant operating cash flow issues in previous years, and as a result did not have sufficient resources to pay the note payable, long term debt, and related accrued interest payable when they became due. These past due amounts have been classified as current liabilities.
The Foundation’s ability to continue as a going concern is dependent on its ability to finalize debt repayment renegotiations with Southern Railway (a first draft of such agreement is in review), and improve general operating revenues from third parties sufficient to meet current and future obligations. To help manage its liquidity, management has reduced operating spending and continues to monitor additional funding opportunities.
Subsequent to the fiscal year end, a lease was signed with a tenant for the Nanaimo train station. This lease will improve funds generated from third parties. The lease is contingent upon completion of construction of the station. A loan approval for up to $1,100,000 has been given by CIBC for the project.
Management believes that the going concern assumption is appropriate for the financial statements because the Foundation is currently in final negotiation with its lenders to have the terms and conditions of the outstanding debts altered, and they have been actively signing leases with businesses that use or cross ICF property during their business activities. If the Foundation were unable to continue its operations, adjustments to the carrying amounts and classification of assets and liabilities would be necessary.
The Foundation follows the restricted fund method of accounting for contributions and maintains two funds – Operating Fund and Capital Fund.
The Operating Fund accounts for the assets, liabilities, revenues and expenses related to the Foundation’s activities in the preservation of the Corridor and its administrative activities. Restricted contributions for which there are no corresponding restricted funds are deferred and recognized as revenue in the same period or periods as the related expenses are recognized.
The Foundation recognizes donations when received. Municipal grant revenue is recognized over the period specified by the grantor. Interest revenue is recognized when earned. Revenue from crossing agreements and lease agreements are recognized over the term of the agreement. Fundraising revenue is recognized when received.
The Capital Fund accounts for all capital assets of the organization and presents the flow of funds related to their acquisition and disposal, unexpended capital resources and debt commitments.
In the current year, unrestricted donations in the amount of $306,356 ($302,249 – 2009) were received and recognized as revenue in the operating fund, of this amount $301, 249 was from Canadian Pacific Railway, ($301,249 – 2009). The remaining funds were received from individuals and corporations. The Foundation also received $228,899 ($12,700 – 2009) of restricted donations to be used to restore the Nanaimo Train Station. These funds were recognized as revenue in the capital fund.
Restricted grants to be used to restore the Nanaimo Train Station in the amount of $406,527 ($502,544 – 2009) were received in 2010 and were recognized as revenue in the capital fund. Of this amount $356,527 ($502,544 – 2009) was received from VIA Rail. The remaining restricted grants were received from corporations.
The 2011 operating budget listed revenues of $625,000 comprised of $250,000 brought forward and projected revenues of $375,000.
Planned expenditures total $520,000 including $129,000 loan repayment to Canadian Pacific.
Recent Comments