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VANCOUVER ART GALLERY ASSOCIATION
NOTES TO FINANCIAL STATEMENTS

Year ended June 30, 2014

3. CAPITAL ASSETS 7. DEFERRED CONTRIBUTIONS

(a) General Fund:
2014 2013
Accumulated Net book Net book 2014 2013
Cost amortization value value
Contributions:
Computers $ 682,836 $ 668,766 $ 14,070 $ 26,464 • City of Vancouver $ 254,988 $ 35,956
Equipment 926,853 684,904 241,949 345,389 • Corporate sponsors
Furniture and • Other 451,000 131,075
building fixtures 734,298 467,127 267,171 321,403 357,628 230,678
Equipment under $ 1,063,616 $ 397,709
capital lease 636,083 286,182 349,901 357,117
$ 2,980,070 $2,106,979 $ 873,091 $1,050,373 (b) Acquisitions Fund:
During 2010, the Association received a bequest of $2,852,477
4. BANK INDEBTEDNESS 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
The Association has an available operating line of credit of $2 purchase original works of art from the original artists of the‘Group
million which bears interest at the bank’s prime rate plus 0.50% of Seven’ and the Association is reimbursed from the bequeathed
and is secured by a general security agreement representing a funds at the time of purchase. During the year, the Association
first charge on the Association’s assets excluding: did not purchase any such work of art (2013–nil). Amounts are
(a) gifts, bequests and donations received by the Association with recorded as bequest revenue and art acquisition expenses under
instructions for the specific use not forming part of the general the Acquisitions Fund in the year the purchase occursoccurs. The
operating expenses of the Association; and market value of the unspent funds at June 30, 2014 is $916,421
(b) any funds, including interest accumulated thereon received (2013 -$894,744).
with respect to the relocation related capital campaign, includ-
ing without limitation the $50 million funding received from the (c) Building Fund:
Province of British Columbia (note 7(c)).
2014 2013
5. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES Balance, beginning of year $51,319,499 $51,393,616
Contributions:
Included in accounts payable and accrued liabilities are govern- • Donations and grants — 206,519
ment remittances payable of $34,280 (2013– $31,596), which • Disbursements (1,065,836) (280,636)
includes amounts payable for PST, and payroll related taxes.
Balance, end of year $50,253,663 $51,319,499
6. OBLIGATIONS UNDER CAPITAL LEASE
On March 31, 2008, the Province of British Columbia made a
The following is a schedule of minimum lease payments under grant to the Association in the amount of $50,000,000, with a
fixed-rate capital leases, together with the balance of the obligation: restriction that the funds be used for the general purpose of
planning, developing and building of a new Vancouver Art Gallery.
Year ending June 30 2014 2013 Disbursements during the year in the amount of $1,065,836
(2013–$280,636) from the Building Fund have been recognized
2014 $ —$69,312 as fundraising revenue in the statement of operations.
2015 89,935 69,312 Funds are invested in accordance with the Association’s organization-
2016 89,935 69,312
2017 46,754 26,131 wide investment policy and in consideration with the Society Act,
2018 19,258 4,116 the Trustee Act and the Association’s bylaws. Additionally, in-
vestments must be in Canadian dollars and no investment shall
Total minimum lease payments 245,882 238,183 have a term in excess of 180 days as at the date of acquisition
Less amount representing interest at unless a 90-day redeemable option exists. During the year ended
rates ranging from 2.68% to 11.30% 18,366 23,644 June 30, 2014, unrestricted investment income earned on these
Present value of capital lease payments 227,516 214,539 investments and recorded under the General Fund was $886,976
Less current portion 79,796 58,562 (2013–$948,641). The Board of Trustees approved the interfund
transfer of the investment income earned during the year ended
$ 147,720 $ 155,977
June 30, 2014 to the Building Fund.




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