Statement of Financial Position
Liabilities increased by $1,000,000 from $7.1 to $8.1 million.
These included a $400,000 increase in bank indebtedness and an increase in Accounts payable and accrued liabilities of $240,000
One result is another decrease in the net assets to $15.5 million.
Statement of Changes in Net Assets
There was a deficiency of $1,827,670 in revenues over expenses. I.e. this is what went out over what came in!
The overall decrease shown in the year end balance of net assets is $1.6 million.
Statement of Operations
Revenue
Donations and fundraising decreased by $600,000.
Don’t they get this message that demonstrates that donors are not willing to contribute to the Society’s current set up and direction?
Income from bylaw enforcement services (pound contracts) deceased by $555,000
Program expenses
Total Decrease in Revenue - $1.2 million
Sheltering & Bylaw enforcement decreased by $2.8 million.
There is nothing to show how much is for each part of this which makes it impossible to distinguish between shelter services & bylaw enforcement! Although if there was at least a cost breakeven of the income (a decrease of $555,000, above) and the cost of the bylaw enforcement, this would mean that the reduction in sheltering was $2.3 million. Once again isn’t this expected to be one of the most important roles of the BCSPCA? This level of decrease in services cannot do anything else but reflect badly on the public perception of the Society!
Veterinary Care and spay and neuter decreased by $503,000.
Isn’t this one of the most important areas that should be increasing not decreasing?
Cruelty Investigations increased by $550,000, which is an increase of more that 70% over the previous year.
This appears to show that cruelty investigations, whether they are effective or not is a separate question, take priority over the previous item, veterinary care and spay and neuter!
Humane education, Advocacy and volunteer development, Hospital, decreased by a total of $260,000
The Total Deficiency of revenues over expenses is $1,827,670
The amortization of property, buildings and equipment is $1.1 million.
The conclusion of all this is that unless the Society changes this around the result will be that there is no Society. These Deficits have been every year since the consolidation!
Notes to Financial Statements ( By Auditors)
2. Going concern and economic dependence.
The Society has incurred operating losses over the past four years and has a significant working capital deficiency. These financial statements have been prepared on a ongoing concern basis, which assumes that the Society will be able to meet its obligations as they become due and maintain its current level of operations and services.
What happens if the Society doesn’t improve in these areas? Well, there will be no Society is the answer!
6. Bank indebtedness
At December 31, 2004, the Society had a $2,000,000 operating line of credit bearing interest at the bank’s prime rate. The Society had provided the following as security fro the credit line: a general assignment of book debts over all present and future personal property with appropriate insurance coverage, loss if any, payable to the bank; a collateral mortgage in the amount of $1,300,000 providing a first fixed charge against the hospital and shelter at 1205 East 7th Avenue, Vancouver.
So, in effect the shelter and hospital are mortgaged (secured) against the operating line of credit.
8. Mortgages payable
The Duncan Shelter is mortgaged - $96,980 at Dec 31, 2004
The Grand Forks shelter is mortgaged - $53,628 at Dec 31, 2004
and Provincial Office at $631,865 at Dec 31, 2004
As has been suggested before, get rid of the Provincial Office and move into the Vancouver Shelter Offices with a significantly reduced Head Office staff. A real cost saving could be achieved.
There is also a note which states "In 2005, the Society mortgaged the shelter in Victoria, B.C. to finance major renovations of that property and to finance the establishment of a spay and neuter clinic in Prince George, B.C." The mortgage bears interest at 8%.
This takes the Society yet deeper in debt! And of course, there already was a spay and neuter clinic at the Victoria Shelter, which was closed!