BALANCE FOR BLIND ADULTS
FINANCIAL STATEMENTS
YEAR ENDED MARCH 31, 2019  
Independent Auditor's Report	Page 1
Balance Sheet	3
Statement of Revenues and Expenses	4
Statement of Changes in Net Assets	5
Statement of Cash Flows	6
Notes to the Financial Statements	7

INDEPENDENT AUDITOR'S REPORT
To the Members of BALANCE For Blind Adults
Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of BALANCE For Blind Adults ("BALANCE"), which comprise the balance sheet as at March 31, 2019, and the statements of revenues and expenses, changes in net assets and cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies.
In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of BALANCE as at March 31, 2019, 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.
Basis for Opinion
We conducted our audit in accordance with Canadian generally accepted auditing standards. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of BALANCE in accordance with the ethical requirements that are relevant to our audit of the financial statements in Canada, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Responsibilities of Management and Those Charged with Governance for the Financial Statements
Management is responsible for the preparation and fair presentation of the 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.
In preparing the financial statements, management is responsible for assessing the ability of BALANCE to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate Balance or to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the financial reporting process of BALANCE.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Canadian generally accepted auditing standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements. 

INDEPENDENT AUDITOR'S REPORT (continued)
Auditor's Responsibilities for the Audit of the Financial Statements (continued)
As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
•	Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. 
•	Obtain an understanding of internal control relevant to the audit 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 internal control of BALANCE.
•	Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
•	Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the ability of BALANCE to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our  report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause Balance to cease to continue as a going concern.
•	Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

Toronto, Ontario	Chartered Professional Accountants
June 14, 2019	Licensed Public Accountants

BALANCE FOR BLIND ADULTS
BALANCE SHEET
AS AT MARCH 31, 2019

		2019			2018		

ASSETS
Current assets			
	Cash	$	77,449		$	84,216		
	Investments (note 3)		290,989			250,236		
	HST receivable		3,362			3,642		
	Accounts receivable		3,140			4,240		
	Prepaid expenses and deposits		2,928			2,928		

		377,868			345,262		

LIABILITIES
Current liabilities			
	Accounts payable and accrued liabilities		41,358			22,059		
	Due to Ministry of Health LTC 		1,869			-		
	Deferred revenue		10,931			13,323		

		54,158			35,382		
NET ASSETS
General Fund		307,749			291,473		
Colin Haines Fund 		15,961			18,407		

		323,710			309,880		

	$	377,868		$	345,262		

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, 2019 

		2019			2018		

	
Revenues			
	Ministry of Health LTC ‑ LHIN ‑ Service	$	534,904		$	536,743		
	Ministry of Health LTC ‑ LHIN ‑ One‑time funding			952		
	Donations ‑ unrestricted		18,727			4,228		
	Donation ‑ training centre upgrades		9,143			21,403		
	Fundraising and event sponsorship		7,500			6,026		
	Summer student and other grants		5,040			4,808		
	Fees for services		3,263			2,463		
	Investment income (note 3)		711			5,928		

		579,288			582,551		

Expenses			
	Salaries		384,337			391,564		
	Employee benefits		58,756			59,902		
	Staff travel		1,690			3,190		
	Staff training and fees		4,832			4,502		
	Memberships and accreditation		3,868			1,625		
	Supplies		4,742			4,933		
	Internet and website		7,069			3,575		
	Rent		32,393			30,094		
	Maintenance ‑ premises		3,826			6,459		
	Insurance		2,743			2,695		
	Telephone		7,952			9,991		
	Marketing and communications		2,649			485		
	Office expenses		4,266			5,235		
	Audit, accounting and professional fees		19,844			24,149		
	Bank charges		978			694		
	Fundraising		705			569		
	Training centre upgrades		9,143			21,403		
	IT Procurement		1,868			-		
	Fund Development Fees		11,953			-		
	Computer replacement and upgrades		-			1,382		
	Disbursements from Colin Haines Fund		1,844			440		

		565,458			572,887		

Excess of revenues over expenses for the year	$	13,830		$	9,664		

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, 2019 

2019	General
Fund	Colin Haines Fund	Total	

Balance at beginning of year	$	291,473		$	18,407		$	309,880		
Excess of revenues over expenses		13,830			-			13,830		
Allocation of investment income				
	Income distribution		(360)			360			-		
	Realized gains (losses)		962			(962)			-		
	Unrealized gains (losses)		-			-			-		
Fund disbursements		1,844			(1,844)			-		

		307,749			15,961			323,710		

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				
	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		

The accompanying notes are an integral part of these financial statements

BALANCE FOR BLIND ADULTS
STATEMENT OF CASH FLOWS
YEAR ENDED MARCH 31, 2019 

		2019			2018		

	
Cash flows from operating activities			
	Excess of revenues over expenses 	$	13,830		$	9,664		
	Adjustments to reconcile excess of revenues over expenses to net cash provided by operating activities			
			Realized and unrealized (gains) losses 		7,422			3,771		

		21,252			13,435		

Changes in non‑cash working capital balances from operations:			
		(Increase) decrease in accounts receivable		1,100			(1,540)		
		(Increase) decrease in HST receivable		280			967		
		(Increase) decrease in prepaid expenses and deposits		-			9,750		
		Increase (decrease) in accounts payable		21,168			4,577		
		Increase (decrease) in deferred revenue		(2,392)			(1,375)		

		20,156			12,379		

Cash flows from investing activity			
	Proceeds on disposal of mutual funds and redemption of GIC		250,102			8,346		
	Cost of purchases and reinvestments in mutual funds and GIC		(298,277)			(15,564)		

		(48,175)			(7,218)		

Change in cash during the year		(6,767)			18,596		

Cash ‑ at beginning of year		84,216			65,620		

Cash ‑ at end of year	$	77,449		$	84,216		

The accompanying notes are an integral part of these financial statements

BALANCE FOR BLIND ADULTS
NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED MARCH 31, 2019 

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 are in accordance with Canadian generally accepted accounting principles. These financial statements have been prepared within the framework of the significant accounting policies summarized below:
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, 2018 with the LHIN. 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 Assets and Liabilities
The Organization initially measures financial assets and liabilities at fair value. The Organization subsequently measures all financial assets and financial 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, accounts payable and accrued liabilities and due to Ministry of Health LTC .
Amortized cost is the amount at which a financial asset or financial liability is measured at initial recognition minus principal repayments, plus or minus the cumulative amortization of any difference between that initial amount and the maturity amount, and minus any reduction for impairment. 
At the end of each year, the Organization assesses whether there are any indications that a financial asset measured at amortized cost may be impaired. Objective evidence of impairment includes observable data that comes to the attention of the Organization, including but not limited to the following events: significant financial difficulty of the issuer; a breach of contract, such as a default or delinquency in interest or principal payments; and bankruptcy or other financial reorganization proceedings.
When there is an indication of impairment, the Organization determines whether a significant adverse change has occurred during the year in the expected timing or amount of future cash flows from the financial asset. 
When the Organization identifies a significant adverse change in the expected timing or amount of future cash flows from a financial asset, it reduces the carrying amount of the financial asset to the greater of the following:
‑ the present value of the cash flows expected to be generated by holding the financial asset discounted using a current market rate of interest appropriate to the financial asset, and
‑ the amount that could be realized by selling the financial asset at the statement of financial position date.
Any impairment of the financial asset is recognized in income in the year in which the impairment occurs.

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Financial Assets and Liabilities (continued)
When the extent of impairment of a previously written‑down financial asset decreases and the decrease can be related to an event occurring after the impairment was recognized, the previously recognized impairment loss is reversed to the extent of the improvement, but not in excess of the impairment loss. The amount of the reversal is recognized in income in the year the reversal occurs.
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. 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. Financial instruments subject to credit risk include cash, accounts receivable and investments in GIC. Credit risk with respect to cash and investments in GIC is minimized 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 the Organization will encounter difficulty in meeting obligations associated with financial liabilities. The Organization is exposed to this risk mainly in respect of its accounts payable and accrued liabilities, due to Ministry of Health LTC 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.
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. 

2. FINANCIAL INSTRUMENTS AND RISK EXPOSURE (continued)
	Interest rate risk
	Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Organization is exposed to interest rate risk with respect to its interest bearing financial instruments being cash held in the bank and investments in interest bearing financial instruments. The Organization holds investments in GIC. Details of the investments are disclosed in note 3. 
	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 3.
Changes in Risk
	There have been no significant changes in the risk profile of the financial instruments of the Organization from that of the prior year. 
3. INVESTMENTS AND INVESTMENT INCOME
Details of investments held at year end are as follows:

	2019	2018	

Cash at broker	$	1,086		$	-		
Bank GICs at amortized cost, 1.50% to 1.85% per annum, due November 8, 2019 and December 8, 2019 (0.45% per annum, December 8, 2018 ‑ 2018)		55,675			5,675		
Mutual funds at fair value		234,228			244,561		

	$	290,989		$	250,236		

Details of investment income are as follows:

	2019	2018	

Distributions from mutual fund and interest income	$	8,133		$	9,699		
Realized losses 		(7,422)			(55)		
Unrealized losses		-			(3,716)		

	$	711		$	5,928		

4. 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			
	2020	$	34,287		
	2021		34,937		
	2022		8,775