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2010
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11 FINANCIAL STATEMENTS
XI
at June 30, 2011 (2010 – $57,566). The Foundation also main-
tains and receives income on endowment funds, which are per-
manently held and administered by the Vancouver Foundation.
The market value of these funds at June 30, 2011 is $9,063,008
(2010 – $8,223,278).
(b) Friends of Vancouver Art Gallery
Friends of Vancouver Art Gallery (“Friends”) is a non-profit
organization incorporated in the United States in March 2003
and is independent of the Association.
Its purpose is to receive donations, gifts, funds, and property
from residents of the United States for the benefit of the Asso-
ciation. During fiscal 2011, the Friends donated cash donations
of nil (2009–$16,500) and works of art with an estimated market
value of nil (2010 – $15,600) to the Association.
(c) Associates of the Vancouver Art Gallery
The Associates of the Vancouver Art Gallery (the “Associates”),
an organization independent of the Association, is devoted to
raising funds for the Association through social, educational
and service enterprises. During the year ended June 30, 2011,
the Associates donated $110,923 (2010 – $101,748) to the Asso-
ciation.
(d) Other
During the year, the Association received approximately $1.22
million in contributions from members of the Board of Trustees
comprising of sponsorships and special event support.
12. COLLECTION
The Association is responsible for the management of the
Vancouver Art Gallery collection and fine arts reference library.
The collection comprises paintings, drawings, sculptures, photo-
graphy, prints and other visual art materials. The Association
incurred $938,295 (2010 – $2,670,920) in expenditures acquiring
new works for the collection during the year (note 7(c)). There
were no disposal of any collection items during the year. Owner-
ship of the collection is vested in the City of Vancouver.
13. FINANCIAL INSTRUMENTS
(a) Fair values
Financial instruments of the Association are comprised of cash
and cash equivalents, grants, pledges, interest and accounts
receivable, bank indebtedness, outstanding cheques, accounts
payable and accrued liabilities and obligations under capital lease.
The carrying values of the Association’s financial instruments
measured at amortized cost approximate their fair values due
to their ability for prompt liquidation or settlement in the near
term. The carrying values of obligations under capital lease
approximate their fair values as they bear interest at the current
market rates.
(b) Interest, credit risks and foreign exchange risks
The Association is subject to interest rate risk related to its bank
indebtedness as it bears a floating rate of interest.
It is management’s opinion that the Association is not subject
to significant credit risks related to its grants, pledges, interest
and accounts receivable due to the nature and credit worthiness
of the counterparties and that the amounts are only recorded
when ultimate collection is reasonably assured.
The Association is not subject to any significant foreign exchange
risks.
14. COMMITMENTS
The Association is committed to minimum lease payments on
operating leases and contractual payments for future program-
ming costs for the years ending June 30 as follows:
2012
$ 375,078
2013
25,734
2014
18,202
2015
10,670
2016
8,002
In addition, the Association leases its current premises from the
City of Vancouver for a period of 99 years ending 2079 for annual
payments of $1. The fair value of the rent cannot be reasonably
determined and is not recorded in these financial statements.
15. CAPITAL MANAGEMENT
The Association receives its principal source of capital through
admissions, memberships, store sales, sponsorships, grants
and gifts. The Association defines capital to be net assets, which
includes amounts held in the unrestricted fund and the internally
restricted fund.
The Association is not subject to any other external capital
requirements or restrictions.
16. COMPARATIVE FIGURES
Certain comparative figures have been reclassified to conform with
the financial statement presentation adopted in the current year.
VANCOUVER ART GALLERY ASSOCIATION
NOTES TO FINANCIAL STATEMENTS
Year ended June 30, 2011