Thank you for allowing me to be your cooperative treasurer for the past year and a half. I have truly enjoyed working with the rest of the executive board and the committee members. It gives me great satisfaction knowing that we have now put a complete year behind us and are still moving forward with conviction.
As members, I hope you have taken a few minutes to go over the financial statements for the year ending September 30, 2006. I believe everyone has received a copy either electronically or by regular post. A copy, along with the treasurer’s report and president’s report, will be posted on the cooperative website within the next few weeks.
Our financial activities during the first year to september 30, 2006 consisted primarily of payments for start up services such as architectural design, engineering, preliminary feasibility studies, survey, and project management and payments for the purchase of land. Besides the member application fees and interest earned on deposits, the co-op has had no real income. Therefore, you will notice that all the payments identifiable as land development costs are capitalized under property and equipment.
Accounting practices require that income and expenses be matched in the same accounting period. Therefore, as life leases are sold and the residential lots are sold, land development costs attributable to that income will be recorded at that time. This may happen within this fiscal year, however, it is more likely to happen within our 2007/2008 fiscal year.
The membership application fees previously recorded as income are reclassified as share capital. The public accountant raised some issues in this regard for the board of directors to clarify. The board recognizes the need to do this. We will bring these issues to our lawyer, John O’Fee for a ruling and then report to the membership in this regard.
The cooperative recorded a loss of five thousand four hundred and twenty dollars ($5,420). There is no taxes payable. The loss consists mostly of administrative operating expenses that included costs pertaining to meetings, advertising and promotion, office supplies and printing, insurance and other miscellaneous expenses.
Our project is beginning to move forward very quickly and finally, very visibly. I understand that the site looks amazing. I am very excited about my role in the coming year. The financial commitments the cooperative has made to purchase more land and to start the infrastructure will require close monitoring of our bank accounts. A lot of creative brainstorming will take place as well. The monitoring of the budget figures to the cash flow projections will be required. The challenge will be to make sure that what we expect to happen does happen in reality.
If anyone has any questions or concerns, please do not hesitate to ask. Sometimes the questions one person has are the same ones others have. There are no stupid, dumb or less than smart questions. This is our cooperative and I would like everyone to be confident that they understand the financial process.
This is exciting.
Regards,
Dorothy Dergousoff, CGA
CASH FLOW STATEMENT, 18-Mar-07
| SOURCES OF CASH | 2005/2006 | 2006/2007 | TOTAL |
|---|---|---|---|
| Ending 9/30/06 | Ending 9/30/07 | ||
| Cash received from Memberships (126) | 24,500.00 | 7,000.00 | 31,500.00 |
| Cash received from Execution of Type I Loans | 825,000.00 | 280,000.00 | 1,105,000.00 |
| Cash received from Execution of Type II Loans | 25,000.00 | 70,000.00 | 95,000.00 |
| Cash received GST refund claimed | 3,182.73 | 3,182.73 | |
| Net change in Accounts Receivable | (25,000.00) | (25,000.00) | |
| Net change in Accounts Payable | 2,250.00 | 2,250.00 | |
| Donations | 580.00 | 580.00 | |
| Income received on Term Deposits | 2,006.17 | 6,785.10 | 8,791.27 |
| Total Revenues | 878,756.17 | 342,547.83 | 1,221,304.00 |
| USES OF CASH | |||
| Cash paid to purchase Land | 406,000.00 | 1,000.00 | 407,000.00 |
| Cash paid to City of Castlegar for property taxes | 1,048.52 | 1,048.52 | |
| Cash paid to Morelli, Chertkow for Incorporation | 1,250.00 | 1,250.00 | |
| Cash paid to Morelli, Chertkow for Legal fees | 1,166.58 | 1,166.58 | |
| Cash paid to Craig Gutwald, CA for yearend | 1,475.00 | 1,475.00 | |
| Cash paid for Feasibility Studies | 15,779.94 | 15,779.94 | |
| Cash paid for Architectural Design | 25,000.00 | 16,000.00 | 41,000.00 |
| Cash paid for Engineering Services | 4,821.95 | 26,617.50 | 31,439.45 |
| Cash paid to City of Castlegar as deposit on PLA | 1,950.00 | 3,390.00 | 5,340.00 |
| Cash paid for Project Management | 5,000.00 | 22,000.00 | 27,000.00 |
| Cash paid for Grandview Heights Sign | 833.19 | 833.19 | |
| Cash paid for Web Design & Hosting | 2,222.40 | 562.50 | 2,784.90 |
| Cash paid for Site Office | 688.88 | 688.88 | |
| Cash paid for General Advertising | 135.60 | 1,481.07 | 1,616.67 |
| Cash paid for Liability Insurance | 800.00 | 146.00 | 946.00 |
| Cash paid for Office Equipment | 1,070.00 | 1,070.00 | |
| Cash paid for General Office Supplies | 2,386.39 | 825.48 | 3,211.87 |
| Cash paid for Hall Rentals & Supplies for General Meetings | 1,051.75 | 444.94 | 1,496.69 |
| Cash paid for Business Travel | 633.47 | 633.47 | |
| Cash paid to Heritage CU for service charges | 11.19 | 5.00 | 16.19 |
| GST paid on purchases | 2,660.05 | 1,435.88 | 4,095.93 |
| Total Expenses | 472,117.56 | 77,775.72 | 549,893.28 |
| Excess of revenue over expenses | 406,638.61 | 264,772.11 | 671,410.72 |
| Cash balances, beginning of year | 406,638.61 | ||
| CASH BALANCES, END OF PERIOD | 406,638.61 | 671,410.72 | 671,410.72 |