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VANCOUVER ART GALLERY ASSOCIATION
8. OBLIGATION UNDER CAPITAL LEASE
The following is a schedule of minimum lease payments under
fixed-rate capital leases, together with the balance of the obligation:
Year ending June 30
2012
$ 73,040
2013
7,444
2014
4,224
2015
4,224
2016
4,224
Total minimum lease payments
93,156
Less amount representing interest
at an average rate of 8.75%
8,411
Present value of capital lease payments
84,745
Less current portion
67,695
Long-term portion of capital lease payments $ 17,050
9. SPECIAL EVENTS
The Association performs certain fundraising activities considered
to be ancillary to its ongoing operations. These activities, which
generated an excess of revenue over expenses for the year ended
June 30, 2011 of $1,082,715 (2010 – $164,713), have been pre-
sented in the statement of operations on a gross basis. The gross
revenue and expenses related to these activities are as follows:
2011
2010
Revenue
$ 1,487,686 $ 297,073
Expenses
404,971
132,360
Excess of revenue over expenses $ 1,082,715 $ 164,713
10. GALLERY STORE AND ARTIST EDITIONS
2011
2010
Sales:
Gallery Store
$ 1,587,841 $ 2,087,563
Artist Editions
20,464
17,517
1,608,305
2,105,080
Expenses:
Cost of goods sold
875,345
1,090,259
Salaries and employee benefits 410,554
419,392
Administration
149,915
152,861
1,435,814
1,662,512
Excess of revenue over
expenses from operations $ 172,491 $ 442,568
Cost of goods sold consists of inventory costs expensed during
the year and $30,000 (2010 – nil) for the writedown of inventory
to its net realizable value. There were no reversals of amounts
previously written down in the current or prior years.
11. RELATED AND OTHER PARTIES
OF ECONOMIC INTEREST
(a) Vancouver Art Gallery Foundation
The Foundation was incorporated in March 1998 under the
Society Act (British Columbia) and is a registered charity under
the Income Tax Act. Its purpose is to receive, hold and invest
bequests, donations, gifts, funds and property, the income from
which supports the programs, operations and activities of the
Association. The Foundation’s Board of Trustees is elected by
the membership of the Foundation which consists of the Asso-
ciation’s Trustees and the elected Foundation’s trustees who
are not Association’s Trustees. The Foundation has not been
consolidated in the Association’s financial statements.
The financial position and operating results as at and for the year
ended December 31, 2010 and the latest fiscal year financial
statements of the Vancouver Art Gallery Foundation available
are as follows.
FINANCIAL POSITION
2010
2009
Assets
$ 2,791,321 $ 1,629,636
Liabilities
93,545
123,381
Net assets
$ 2,697,776 $ 1,506,255
RESULTS OF OPERATIONS
2010
2009
Revenue
$ 1,572,636 $ 1,825,235
Administrative expenses
(21,471)
(7,389)
Donation to the Association
(359,644)
(246,576)
Transfer to the Vancouver
Foundation
(60,000)
Excess of revenue
over expenses
$ 1,191,521 $ 1,511,270
CASH FLOWS
2010
2009
Cash from operations being
net increase in cash and
cash equivalents
$(1,495,849) $ 1,349,465
For the year ended June 30, 2011, the Foundation’s donation to
the Association amounts to $289,199 (2010 –$273,426), of which
$59,533 is included in accounts receivable of the Association
VANCOUVER ART GALLERY ASSOCIATION
NOTES TO FINANCIAL STATEMENTS
Year ended June 30, 2011