Page 83 - Vancouver Art Gallery 2014
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Interior_Annual Report 14-10-24 4:52 PM Page 81


Year ended June 30, 2014

June 30, 2014 (2013– $69,204). The Foundation also receives forecasts to ensure it has sufficient funds to fulfill its obligations.
income on endowment funds, which are permanently held and There has been no change to the risk exposures from 2013.
administered by the Vancouver Foundation. The market value of (b) Interest rate risk
these funds at June 30, 2014 is $10,439,422 (2013–$9,275,074).
The Company’s bank indebtedness has a variable interest rate
(b) Friends of Vancouver Art Gallery
based on prime plus a margin. As a result, the Association is
Friends of Vancouver Art Gallery (“Friends”) is a non-profit exposed to interest rate risk related to the amount of bank in-
organization incorporated in the United States in March 2003 debtedness outstanding (note 4).
and is independent of the Association.
(c) Credit risk
Its purpose is to receive donations, gifts, funds, and property
from residents of the United States for the benefit of the Asso- The Association is exposed to credit risk related to its accounts
ciation. During fiscal 2014 and 2013, Friends did not make any and pledges receivable. It is management’s opinion the related
donations to the Association. risk is not significant due to the nature and credit worthiness
of the counterparties and that the amounts are only recorded
(c) Other when ultimate collection is reasonably assured.
During the year, the Association received approximately $2.21 (d) Industry
million (2013 - $1.66 million) in contributions by members of the The Association operates in the cultural industry environment
Board of Trustees or organizations affiliated with these members
comprising donations, sponsorships and special event support. and can be affected by general economic trends. A decline in
economic conditions, public consumer-spending levels or other
adverse conditions could lead to reduced revenues and profit-
The Association is not subject to any significant currency risks.
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- 14. COMMITMENTS
graphy, prints and other visual art materials. The Association
incurred $400,263 (2013– $195,277) in expenditures acquiring The Association is committed to minimum lease payments on
new works for the collection during the year. There were no dis- operating leases for the years ending June 30 as follows:
posals of any collection items during the year. The collection is
held by the Gallery for the benefit of the citizens of Vancouver. 2015 $ 11,416
Neither the cost nor market value of the collection is included 2016 8,562
in the statement of financial position of the Association.
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 readily deter-
mined and is not recorded in these financial statements.
(a) Liquidity risk
Liquidity risk is the risk that the Association will be unable to 15. COMPARATIVE INFORMATION
fulfill its obligations on a timely basis or at a reasonable cost. The
Association manages its liquidity risk by monitoring its oper- Certain comparative figures have been reclassified with the
ating requirements. The Association prepares budget and cash financial statement presentation adopted for the current year.

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