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2010
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11 FINANCIAL STATEMENTS
IX
these financial statements. These funds, at book and market
values, comprise:
2011
2010
The Vancouver Art Gallery
Endowment Fund for
Acquisitions of Art
$ 5,555,200 $ 5,555,200
The Vancouver Art Gallery
Endowment Fund:
General
201,164
201,164
Life Benefactors
365,000
365,000
566,164
566,164
Book value
$ 6,121,364 $ 6,121,364
Market value
$ 8,979,332 $ 8,210,849
Under the terms of these endowment funds, the Association
receives investment income earned on the capital. Income for the
year ended June 30, 2011 of $301,129 (2010 – $326,724) from
the Vancouver Art Gallery Endowment Fund for Acquisitions of
Art has been credited to the Acquisitions Fund. Income for the
year ended June 30, 2011 of $28,298 (2010 – $30,723) from the
General and Life Benefactors components of the Vancouver Art
Gallery Endowment Fund has been credited to the General Fund.
5. CAPITAL ASSETS
2011
2010
Accumulated Net book Net book
Cost amortization
value
value
Computers $ 650,783 $ 573,320 $ 77,463 $ 54,652
Equipment
948,167 358,923 589,244 586,488
Furniture and
building fixtures 579,895 291,250 288,645 335,262
Equipment under
capital lease 297,761
79,784 217,977 227,286
$ 2,476,606 $1,303,277 $1,173,329 $1,203,688
6. BANK INDEBTEDNESS
The Association has an available operating line of credit of
$2 million which bears interest at the bank’s prime rate plus 0.50%
and is secured by a general security agreement representing a
first charge on the Association’s assets excluding (a) gifts, bequests
and donations received by the Association with instructions for the
specific use not forming part of the general operating expenses
of the Association and (b) any funds, including interest accu-
mulated thereon received with respect to the relocation related
capital campaign, including without limitation the $50 million
funding received from the Province of BC (note 7(b)).
7. DEFERRED CONTRIBUTIONS
(a) General Fund:
2011
2010
Contributions:
City of Vancouver
$ 10,374 $ 45,700
Corporate sponsors
53,050
72,000
Department of Canadian Heritage —
25,572
Other
195,414
158,194
$ 258,838 $ 301,466
(b) Acquisitions Fund:
2011
2010
Contributions:
Arts Partners / B.C. Legacies
Canada Council
$ 103,000 $ 103,000
During 2010, the Association received a bequest of $2,852,477
from the Estate of Anne Eliza Winn, which is held externally with
a trustee. As a condition of the bequest, funds may only be used
to purchase original works of art from the original artists of the
‘Group of Seven’ and the Association is reimbursed from the
bequeathed funds at the time of purchase. During the year,
the Association purchased one such work at $85,176 (2010 –
$1,913,385). This amount has been recorded as bequest revenue
and art acquisition expenses under the Acquisitions Fund.
(c) Building Fund:
2011
2010
Balance, beginning of year
$51,514,799 $51,851,906
Contributions:
Private donors
62,200
Disbursements
(534,765)
(399,307)
Balance, end of year
$50,980,034 $51,514,799
On March 31, 2008, the Province of BC made a grant to the
Association in the amount of $50,000,000 restricting the use of
the funds for the general purpose of planning, developing and
building for a new Vancouver Art Gallery.
Funds are invested in accordance with the Association’s organization-
wide investment policy and in consideration with the Society Act,
the Trustee Act and the Association’s bylaws. Also, investments
must be in Canadian dollars and no investment shall have a term
in excess of 180 days as at the date of acquisition unless a 90-day
redeemable option exists. During the year ended June 30, 2011,
unrestricted investment income earned on these investments are
recorded under the General Fund was $733,580 (2010–$312,132).
The Board of Trustees approved the transfer of the investment
income earned during the year ended June 30, 2011 as an inter-
fund net asset transfer to the Building Fund.
VANCOUVER ART GALLERY ASSOCIATION
NOTES TO FINANCIAL STATEMENTS
Year ended June 30, 2011