BALANCE FOR BLIND ADULTS
FINANCIAL STATEMENTS
YEAR ENDED MARCH 31, 2018  
Independent Auditor's Report	Page 1
Balance Sheet	2
Statement of Revenues and Expenses	3
Statement of Changes in Net Assets	4
Statement of Cash Flows	5
Notes to the Financial Statements	6 to 9

INDEPENDENT AUDITOR'S REPORT
To the Members of
BALANCE For Blind Adults
We have audited the accompanying financial statements of BALANCE For Blind Adults, which comprise the balance sheet as at March 31, 2018, and the statements of revenues and expenses, changes in net assets and cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information.
Management's Responsibility for the 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 audit. We conducted our audit 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.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, these financial statements present fairly, in all material respects, the financial position of  BALANCE For Blind Adults as at March 31, 2018 and the results of its operations and its cash flows for the year then ended in accordance with Canadian accounting standards for not‑for‑profit organizations.
Other Matter
The balance sheet as at March 31, 2017 and the statements of revenue and expenses, changes in net assets and cash flows for the year ended March 31, 2017 were audited by another firm of chartered professional accountants who expressed an unqualified opinion on those financial statements on June 28, 2017. 

Toronto, Ontario	Chartered Professional Accountants
June 18, 2018	Licensed Public Accountants

BALANCE FOR BLIND ADULTS
BALANCE SHEET
AS AT MARCH 31, 2018

		2018			2017		

	(note 5)
ASSETS
Current assets			
	Cash	$	84,216		$	65,620		
	Investments (note 2)		250,236			246,789		
	HST receivable		3,642			4,609		
	Accounts receivable		4,240			2,700		
	Prepaid expenses and deposits		2,928			12,678		

		345,262			332,396		

LIABILITIES
Current liabilities			
	Accounts payable and accrued liabilities		22,059			17,482		
	Deferred revenue		13,323			14,698		

		35,382			32,180		
NET ASSETS
General Fund		291,473			288,283		
Colin Haines Fund 		18,407			11,933		

		309,880			300,216		

	$	345,262		$	332,396		

The accompanying notes are an integral part of these financial statements
Approved on behalf of the Board:
________________, Director          ________________, Director

BALANCE FOR BLIND ADULTS
STATEMENT OF REVENUES AND EXPENSES
YEAR ENDED MARCH 31, 2018 

		2018			2017		

	(note 5)
Revenues			
	Ministry of Health LTC ‑ LHIN ‑ Service	$	536,743		$	536,743		
	Ministry of Health LTC ‑ LHIN ‑ One‑time funding		952			-		
	Ministry of Health LTC ‑ LHIN ‑ IT systems upgrade		-			4,577		
	Donations ‑ unrestricted		4,228			1,874		
	Donation ‑ training centre upgrades		21,403			6,274		
	Geoffrey H. Wood Foundation grant		-			5,000		
	Fundraising and event sponsorship		6,026			6,025		
	Summer student and other grants		4,808			950		
	Fees for services		2,463			3,840		
	Investment income (note 2)		5,928			15,302		

		582,551			580,585		

Expenses			
	Salaries		391,564			378,885		
	Employee benefits		59,902			63,189		
	Staff travel		3,190			3,512		
	Staff training and fees		4,502			2,405		
	Memberships and accreditation		1,625			1,088		
	Supplies		4,933			4,600		
	Internet and website		3,575			10,000		
	Rent		30,094			25,081		
	Maintenance ‑ premises		6,459			5,185		
	Insurance		2,695			2,425		
	Telephone		9,991			8,396		
	Marketing and communications		485			724		
	Office expenses		5,235			1,031		
	Computer replacement and upgrades		1,382			6,340		
	Audit, accounting and professional fees		24,149			23,095		
	Bank charges		694			976		
	Fundraising		569			17		
	Training centre upgrades		21,403			6,274		
	Disbursements from Colin Haines Fund		440			660		
	Amortization: LHIN‑sponsored IT systems asset		-			4,577		
	Geoffrey H. Wood grant expenditures		-			5,000		

		572,887			553,460		

Excess of revenues over expenses for the year	$	9,664		$	27,125		

The accompanying notes are an integral part of these financial statements

BALANCE FOR BLIND ADULTS
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED MARCH 31, 2018 

2018	General
Fund	Colin Haines Fund	Total	

Balance at beginning of year	$	288,283		$	11,933		$	300,216		
Excess of revenues over expenses		9,664			-			9,664		
Allocation of investment income				
	Realized gains and income distribution		(422)			422			-		
	Unrealized gains/losses		(212)			212			-		
Fund disbursements		440			(440)			-		
Recovery of cost on Dialogue in the Dark		(6,280)			6,280			-		

		291,473			18,407			309,880		

2017	General
Fund	Colin Haines Fund	Total	

	(note 5)	(note 5)	(note 5)
Balance at beginning of year		260,493			12,598			273,091		
Excess of revenues over expenses		27,125			-			27,125		
Allocation of investment income				
	Realized gains and income distribution		(493)			493			-		
	Unrealized gains/losses		498			(498)			-		
Fund disbursements		660			(660)			-		

	$	288,283		$	11,933		$	300,216		

The accompanying notes are an integral part of these financial statements

BALANCE FOR BLIND ADULTS
STATEMENT OF CASH FLOWS
YEAR ENDED MARCH 31, 2018 

		2018			2017		

	(note 5)
Cash flows from operating activities			
	Excess of revenues over expenses 	$	9,664		$	27,125		
	‑  Realized and unrealized losses (gains)		3,771			(6,950)		
	‑  Amortization ‑ LHIN‑sponsored IT systems asset		-			4,577		

		13,435			24,752		

Changes in non‑cash working capital balances from operations:			
	(Increase) decrease in accounts receivable		(1,540)			(3,359)		
	(Increase) decrease in HST receivable		967			14,280		
	(Increase) decrease in prepaid expenses and deposits		9,750			(3,635)		
	Increase (decrease) in accounts payable		4,577			(1,741)		
	Increase (decrease) in deferred revenue		(1,375)			5,121		

		12,379			10,666		

Cash flows from investing activity			
	Proceeds on disposal of mutual funds and redemption of GIC		8,346			5,667		
	Cost of purchases and reinvestments in mutual funds and GIC		(15,564)			(14,019)		

Change in cash during the year		18,596			27,066		

Cash ‑ at beginning of year		65,620			38,554		

Cash ‑ at end of year	$	84,216		$	65,620		

The accompanying notes are an integral part of these financial statements

BALANCE FOR BLIND ADULTS
NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED MARCH 31, 2018 

NATURE OF OPERATIONS
BALANCE For Blind Adults (the "Organization" or "BALANCE") is a non‑profit organization incorporated under the Registered Charities Act of Ontario and is generally exempt from corporate income taxes. BALANCE offers learning opportunities for independent living, community access and employment opportunities for individuals with visual impairment.
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
These financial statements have been prepared using Canadian accounting standards for not‑for‑profit organizations and include the following significant accounting policies: 
Toronto Central Local Health Integration Network ("LHIN") ‑ Financial Support
The major portion of the Organization's funding is provided under the terms of the service accountability agreement dated April 1, 2014 with the LHIN. This agreement extends to March 31, 2018. This financial support is provided on the basis of an approved detailed operating budget for the year. These financial statements reflect approved funding arrangements with the LHIN, together with estimated adjustments, if any, on year end settlement.
General Fund
The general fund is an unrestricted fund and reflects the day to day operations of the Organization. 
Colin Haines Fund
Colin Haines Fund is an internally restricted fund and established to enable the Organization to provide its client with a small amount of financial assistance to support them in participating in community activities or purchasing items they otherwise could not afford. This fund is administered and overseen by the Executive Director of BALANCE.  The monies restricted for the Colin Haines Fund are invested in mutual funds in a segregated investment account.
Revenue Recognition
The Organization follows the deferral method of accounting for contributions which include government grants, donations and other contributions.
Operating grants are recorded in the year to which they relate. Grants subject to externally imposed restrictions are initially recorded as deferred revenue and are subsequently recognized as revenue in the period in which the related expenses are incurred or other grant requirements are satisfied. Grants approved but not received at the end of an accounting period are accrued. 
Unrestricted contributions are recorded when received or receivable if the amount can be reasonably estimated and collection is reasonably assured.
Revenues from general fundraising events are recognized in the period in which the event takes place. Funds received from the fundraising events for specific purposes are recognized as revenue when the funds are used for the purposes specified during the fundraising event.
Fees for services are recognized as revenue when the services are performed and collection of the fees is reasonably assured. 

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Revenue Recognition (continued)
Investment income includes distributions from mutual funds, interest and realized and unrealized gains and losses from investments. Mutual fund distributions are recognized when declared. Interest is recognized as earned. Realized gains and losses on disposals of investments are recognized when the transactions occur. Unrealized gains and losses which reflect the changes in fair value during the period are recognized at each reporting date and are included in the statement of revenues and expenses in the current year. 
Investments
Investments comprise of guaranteed investment certificates ("GIC"), which are measured at amortized cost, and mutual funds, which are measured at fair value.
Financial Instruments
The Organization initially measures its financial assets and financial liabilities at fair value. It subsequently measures all its assets and liabilities at amortized cost except for investments in mutual funds, which are measured at fair value. 
Financial assets and liabilities measured at amortized cost include cash, investments in GIC, accounts receivable and accounts payable and accrued liabilities.
Contributed Goods and Services
Donated goods and services are not recorded in the accounts of the Organization, except when fair value of such goods and services can reasonably be estimated and when the goods and services would otherwise have been purchased by the Organization.
Use of Estimates
The preparation of financial statements in conformity 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, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the year. Actual results could differ from these and other estimates, the impact of which could be recorded in future affected periods.

2. INVESTMENTS AND INVESTMENT INCOME
Details of investments held at year end are as follows:

	2018	2017	

Cash at broker	$	-		$	9		
Bank GIC at amortized cost, 0.45% per annum, due December 8, 2018 (0.10% per annum, December 7, 2017 ‑ 2017)		5,675			5,667		
Mutual funds at fair value		244,561			241,113		

	$	250,236		$	246,789		

Details of investment income are as follows:

	2018	2017	

Distributions from mutual fund and interest income	$	9,699		$	8,352		
Realized losses 		(55)			-		
Unrealized gains (losses)		(3,716)			6,950		

	$	5,928		$	15,302		

3. LEASE COMMITMENTS
The organization has signed a premise lease agreement which expires June 30, 2021. The annual lease payments, which include basic rent and operating costs, over the remaining lease term are as follows:
Fiscal year	2019	$	33,638		
	2020		34,287		
	2021		34,937		
	2022		8,775		

4. FINANCIAL INSTRUMENTS AND RISK EXPOSURE
The organization is exposed to various risks through its financial instruments. The following analysis provides a measure of the Organization's risk exposure at the balance sheet date.
Credit Risk
	Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. The Organization's main credit risks relate to cash, accounts receivable and investments in GIC. 
	The Organization mitigates its exposure to credit risk of cash and investments in GIC by maintaining its cash accounts and investments in GIC with a Canadian chartered bank. Accounts receivable are primarily property tax rebate and grants receivable. The Organization is not exposed to significant credit risk on its accounts receivable. 
Liquidity Risk
	Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities. The organization is exposed to liquidity rate risk mainly in respect of its accounts payable and accrued liabilities and lease commitments. The Organization expects to meet these obligations as they come due using the operating grants it receives from LHIN and other funders and from cash flows from operations.

4. FINANCIAL INSTRUMENTS AND RISK EXPOSURE (continued)
Market Risk
	Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk:  currency risk, interest rate risk and other price risk. The Organization is not exposed to currency risk.  The Organization is exposed to interest rate risk and other price risk. 
	Interest rate risk
	Interest rate risk is the risk that changes in market interest rates will cause fluctuations to the fair values and cash flows of the Organization's investments in interest bearing financial instruments. The Organization holds investments in GIC. Details of the investments are disclosed in note 2. 
	Other price risk
	Other price risk is the risk that changes in market prices of equity securities will cause fluctuations to the fair values and cash flows of the Organization's financial instrument holdings. The Organization invests in mutual funds. Details of the investments are disclosed in note 2.
5. COMPARATIVE FIGURES
Certain comparative figures in the balance sheet and the statements of revenue and expenses, changes in net assets and cash flows are reclassified in conformity with the presentation adopted during the year.