# Royal Canadian Legion Prince Edward Branch - Financial Statements (Year Ended December 31, 2023)

Meeting: Advisory Committee — September 29, 2025

Canonical HTML: [Open Langford](<https://openlangford.ca/meetings/2025-09-29-advisory-committee/documents/4567>)

Meeting record updated: 2026-10-19T15:41:47.416618+00:00

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Source: [Agenda](<https://pub-langford.escribemeetings.com/FileStream.ashx?DocumentId=15292>)

Source pages: 35–52

## AI-processed summary

Audited financial statements and auditor's report for the Royal Canadian Legion Prince Edward Branch for the year ended December 31, 2023, including statement of financial position, operations, cash flows, schedules and notes.

## Extracted text

### Royal Canadian Legion Prince Edward (British Columbia No. 91) Branch - Financial Statements

Source pages: 35–52

## Royal Canadian Legion Prince Edward (British Columbia No. 91) Branch - Financial Statements

For the Year Ended December 31, 2023

[Image 1: Cover / title page]

---

### Independent Auditors' Report - Part 1 of 2

Source pages: 35–52

## Independent Auditors' Report

[Image 2: Report cover / table of contents]

[Image 3: Independent Auditors' Report - page 1]

Baker Tilly Victoria Ltd  
Chartered Professional Accountants

INDEPENDENT AUDITORS' REPORT

To the Members of  
Royal Canadian Legion Prince Edward (British Columbia No.91) Branch

Qualified Opinion  
We have audited the financial statements of Royal Canadian Legion Prince Edward (British  
Columbia No.91) Branch (the "Branch"), which comprise the statement of financial position as at  
December 31, 2023, and the statements of changes in net assets, operations and cash flows and  
related schedules for the year then ended, and a summary of significant accounting policies and  
other explanatory information.  
In our opinion, except for the effects of the matter described in the Basis for Qualified Opinion  
section of our report, the accompanying financial statements present fairly, in all material respects,  
the financial position of the Branch as at December 31, 2023, and results of its operations and its  
cash flows for the year then ended in accordance with Canadian Accounting Standards for Not-For-  
Profit Organizations.

Basis for Qualified Opinion  
In common with many non-profit organizations, the Branch derives revenue from donations and  
other similar sources, the completeness of which is not susceptible to satisfactory audit verification.  
Accordingly, our verification of these revenues was limited to the amounts recorded in the records  
of the Branch. Therefore, we were not able to determine whether any adjustments might be  
necessary to donation revenue, net deficit, and cash flows from operations for the year ended  
December 31, 2023, and assets and net assets as at December 31, 2023.  
We were not able to observe the counting of physical inventories as at December 31, 2023, or  
satisfy ourselves concerning those inventory quantities by alternative means. Accordingly,  
verification of the year end inventory balance and amounts expensed as cost of sales were limited  
to the amounts recorded in the records of the Branch. Therefore, we were not able to determine  
whether any adjustments might be necessary to cost of sales, net deficit, and cash flows from  
operations for the year ended December 31, 2023, and assets and net assets as at December 31,  
2023.

Baker Tilly Victoria Ltd. is a member of Baker Tilly Canada  
Cooperative, which is a member of Baker Tilly International  
Limited. All members are separate and independent legal entities.

[Image 4: Independent Auditors' Report - page 2]

We conducted our audit in accordance with Canadian generally accepted auditing standards. Our  
responsibilities under those standards are further described in the Auditors' Responsibilities for  
the Audit of the Financial Statements section of our report. We are independent of the Branch in  
accordance with the ethical requirements that are relevant to our audit of the financial statements  
in Canada, and we have fulfilled our other ethical responsibilities in accordance with these  
requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to  
provide a basis for our qualified opinion.

Responsibilities of Management and Those Charged with Governance for the Financial Statements  
Management is responsible for the preparation and fair presentation of the financial statements in  
accordance with Canadian Accounting Standards for Not-For-Profit Organizations, and for such  
internal control as management determines is necessary to enable the preparation of financial  
statements that are free from material misstatement, whether due to fraud or error.  
In preparing the financial statements, management is responsible for assessing the Branch's ability  
to continue as a going concern, disclosing, as applicable, matters related to going concern and using  
the going concern basis of accounting unless management either intends to liquidate the Branch or  
to cease operations, or has no realistic alternative but to do so.  
Those charged with governance are responsible for overseeing the Branch's financial reporting  
process.

Baker Tilly Victoria Ltd. is a member of Baker Tilly Canada  
Cooperative, which is a member of Baker Tilly International  
Limited. All members are separate and independent legal entities.

[Image 5: Independent Auditors' Report - page 3]

Auditors' Responsibilities for the Audit of the Financial Statements  
Our objectives are to obtain reasonable assurance about whether the financial statements as a  
whole are free from material misstatement, whether due to fraud or error, and to issue an  
auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is  
not a guarantee that an audit conducted in accordance with Canadian generally accepted auditing  
standards will always detect a material misstatement when it exists. Misstatements can arise from  
fraud or error and are considered material if, individually or in the aggregate, they could reasonably  
be expected to influence the economic decisions of users taken on the basis of these financial  
statements.

As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise  
professional judgment and maintain professional skepticism throughout the audit. We also:  
- Identify and assess the risks of material misstatement of the financial statements, whether due  
  to fraud or error, design and perform audit procedures responsive to those risks, and obtain  
  audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of  
  not detecting a material misstatement resulting from fraud is higher than for one resulting  
  from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations,  
  or the override of internal control.  
- Obtain an understanding of internal control relevant to the audit in order to design audit  
  procedures that are appropriate in the circumstances, but not for the purpose of expressing an  
  opinion on the effectiveness of the Branch's internal control.  
- Evaluate the appropriateness of accounting policies used and the reasonableness of  
  accounting estimates and related disclosures made by management.

Baker Tilly Victoria Ltd. is a member of Baker Tilly Canada  
Cooperative, which is a member of Baker Tilly International  
Limited. All members are separate and independent legal entities.

[Image 6: Independent Auditors' Report - page 4]

- Conclude on the appropriateness of management's use of the going concern basis of  
  accounting and, based on the audit evidence obtained, whether a material uncertainty exists  
  related to events or conditions that may cast significant doubt on the Branch's ability to  
  continue as a going concern. If we conclude that a material uncertainty exists, we are required  
  to draw attention in our auditors' report to the related disclosures in the financial statements  
  or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the  
  audit evidence obtained up to the date of our auditors' report. However, future events or  
  conditions may cause the branch to cease to continue as a going concern.  
- Evaluate the overall presentation, structure and content of the financial statements, including  
  the disclosures, and whether the financial statements represent the underlying transactions  
  and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the  
planned scope and timing of the audit and significant audit findings, including any significant  
deficiencies in internal control that we identify during our audit.

CHARTERED PROFESSIONAL ACCOUNTANTS  
Victoria, B.C.  
May 27, 2024

### Independent Auditors' Report - Part 2 of 2

Source pages: 35–52

Baker Tilly Victoria Ltd. is a member of Baker Tilly Canada Cooperative, which is a member of Baker Tilly International Limited. All members are separate and independent legal entities.

---

### Statement of Financial Position

Source pages: 35–52

## Statement of Financial Position

As at December 31, 2023

[Image 7: Statement of Financial Position page]

| Assets | 2023 | 2022 |
|---|---:|---:|
| Current Assets - | | |
| Cash (note 3) | 387,881 | 339,833 |
| Investments - term deposits (note 4) | 105,123 | 52,251 |
| Accounts receivable | 27,198 | 100,487 |
| Inventory (note 5) | 31,510 | 23,338 |
| Prepaid expenses | 26,249 | 12,679 |
|  | **577,961** | **528,588** |
| Investments - Portfolio Securities (note 4) | 561,123 |  |
| Capital Assets (note 6) | 6,830,836 | 2,755,999 |
|  | **7,408,797** | **3,845,710** |

| Liabilities | 2023 | 2022 |
|---|---:|---:|
| Current Liabilities - | | |
| Accounts payable and accrued liabilities (note 7) | 196,374 | 431,653 |
| Deferred revenues | 64,450 | 41,002 |
| Government remittances payable | 215 | 97 |
| Demand loan (note 9) | 3,700,000 | 3,961,039 |
|  | 3,961,039 | 472,752 |
| Deferred Grants (note 8) | 38,207 | 19,634 |
|  | **3,999,246** | **492,386** |

| Net Assets | 2023 | 2022 |
|---|---:|---:|
| Unrestricted | 3,377,551 | 3,321,324 |
| Internally Restricted - Operating Contingency (note 11) | 32,000 | 32,000 |
|  | **3,409,551** | **3,353,324** |

Total Assets: 7,408,797 (2023) and 3,845,710 (2022)

SIGNED ON BEHALF OF THE BOARD:  
Director

---

### Statement of Changes in Net Assets

Source pages: 35–52

## Statement of Changes in Net Assets

For the Year Ended December 31, 2023

[Image 8: Statement of Changes in Net Assets page]

|  | 2023 | 2022 |
|---|---:|---:|
| Net Assets - Beginning of Year | 3,353,324 | 3,270,284 |
| Net surplus (deficit) for the year | 56,227 | 83,040 |
| Net Assets - End of Year | 3,409,551 | 3,353,324 |

---

### Statement of Operations

Source pages: 35–52

## Statement of Operations

For the Year Ended December 31, 2023

[Image 9: Statement of Operations page]

### Revenue

|  | 2023 | 2022 |
|---|---:|---:|
| Licensed Premises (Schedule 1) | 77,642 | 54,933 |
| Events, Rentals, Catering, Kitchen (Schedule 3) | 113,603 | 63,175 |
| Meat Draw (Schedule 4) | 4,161 | 9,946 |
| Pull Tab and Lottery (Schedule 5) | 8,886 | 10,816 |
| Donations | 74,736 | 34,682 |
| Grants (note 8) | 6,426 | 4,908 |
| Membership dues, net of Per Capita Tax | 15,804 | 16,372 |
| Regalia sales | 4,051 | 3,738 |
| Other | 20,141 | 23,169 |
| **Total Revenue** | **325,450** | **221,739** |

### Expenses

|  | 2023 | 2022 |
|---|---:|---:|
| Administration wages and benefits | 22,729 | 20,298 |
| Building repairs and maintenance | 34,613 | 58,280 |
| General administration | 134,652 | 129,516 |
| Regalia | 3,796 | 3,965 |
| Utilities | 28,906 | 44,481 |
| **Total Expenses** | **224,696** | **256,540** |

Net Surplus (Deficit) from Operations: 100,754 (2023) and (34,801) (2022)

### Other Income (Loss)

|  | 2023 | 2022 |
|---|---:|---:|
| Mackie Lodge rent | 204,000 | 204,000 |
| Investment interest | 4,151 | 10,692 |
| Investment dividends | 2,445 | 8,116 |
| Investment realized gains (losses) on disposition | 21,756 | (6,080) |
| Investment unrealized losses | (62,242) |  |
| Investment management fees | (1,358) | (6,006) |
| Interest on long-term debt | (144,007) |  |
| Amortization of capital assets | (131,514) | (30,639) |
| Other (net) | (44,527) | 117,841 |
| **Net Surplus for the Year** | **56,227** | **83,040** |

---

### Statement of Cash Flows

Source pages: 35–52

## Statement of Cash Flows

For the Year Ended December 31, 2023

[Image 10: Statement of Cash Flows page]

|  | 2023 | 2022 |
|---|---:|---:|
| Cash Provided from (Used for): |  |  |
| Operating Activities |  |  |
| Excess of Revenues Over Expenditures | 56,227 | 83,040 |
| Items not affecting cash: |  |  |
| Amortization of capital assets | 131,514 | 30,639 |
| Investment (gains) losses on disposition | (21,756) | 6,080 |
| Investment unrealized losses | 62,242 |  |
| Changes in non-cash working capital: |  |  |
| Accounts receivable | 73,289 | (89,863) |
| Inventory | (8,172) | 7,328 |
| Prepaid expenses | (13,570) | 9,234 |
| Accounts payable and accrued liabilities | (235,279) | 348,344 |
| Government remittances payable | 118 | 97 |
| Deferred revenues | 23,448 | (11,152) |
| Deferred grants | 18,573 | (4,908) |
| Net cash from operating activities | 24,392 | 441,081 |

| Investing Activities |  |  |
| Purchase of capital assets | (4,206,351) | (2,249,513) |
| Proceeds from disposition of investments - term deposits | 52,251 | 1,103,475 |
| Proceeds from disposition of investments - portfolio securities | 582,879 | 6,604 |
| Purchase of investments - term deposits | (105,123) | (52,251) |
| Net cash used in investing activities | (3,676,344) | (1,191,685) |

| Financing Activity |  |  |
| Proceeds from demand loan | 3,700,000 |  |
| Net Increase (Decrease) in Cash | 48,048 | (750,604) |
| Cash - Beginning of Year | 339,833 | 1,090,437 |
| Cash - End of Year | 387,881 | 339,833 |

---

### Schedule 1 — Schedule of Licensed Premises

Source pages: 35–52

## Schedule 1 — Schedule of Licensed Premises

For the Year Ended December 31, 2023

[Image 11: Schedule 1 Licensed Premises page]

### Licensed Premises Revenue

|  | 2023 | 2022 |
|---|---:|---:|
| Draught | 87,010 | 51,748 |
| Beer and Cider | 33,725 | 34,937 |
| Liquor | 36,781 | 19,472 |
| Wine | 15,357 | 14,237 |
| **Total Liquor Sales** | **172,873** | **120,394** |
| Soft Bar (non alcoholic) | 17,997 | 13,514 |
| Coffee | 1,922 | 1,732 |
| **Total Beverage Sales** | **192,792** | **135,640** |
| Canteen | 1,017 | 1,669 |
| Bar Tending Services | 5,826 | 2,865 |
| **Total Licensed Premises Revenue** | **199,635** | **140,174** |

### Licensed Premises Expenses

|  | 2023 | 2022 |
|---|---:|---:|
| Draught | 29,668 | 17,329 |
| Beer and Cider | 16,549 | 11,066 |
| Liquor | 6,986 | 3,080 |
| Wine | 6,115 | 3,595 |
| **Total Liquor Expenses** | **59,318** | **35,070** |
| Soft Bar (non alcoholic) | 3,296 | 984 |
| Coffee | 1,145 | 987 |
| **Total Beverage Expenses** | **63,759** | **37,041** |
| Canteen | 821 | 872 |
| Miscellaneous (recovery) | 2,259 | (611) |
| Bar Supplies | 3,387 | 1,272 |
| Entertainment | 5,598 | 8,490 |
| Inventory Audit | 2,100 | 2,125 |
| Repair and Maintenance | 1,009 | 852 |
| Other (subtotal) | 78,933 | 50,041 |
| Bar Wages and Benefits | 43,060 | 35,200 |
| **Total Licensed Premises Expenses** | **121,993** | **85,241** |

Licensed Premises Surplus for the Year: 77,642 (2023) and 54,933 (2022)

---

### Schedule 2 — Licensed Premises Gross Margin on Sales

Source pages: 35–52

## Schedule 2 — Licensed Premises Gross Margin on Sales

For the Year Ended December 31, 2023

[Image 12: Schedule 2 Gross Margin page]

### 2023

| Category | Draught | Beer and Cider | Liquor | Wine | Total |
|---|---:|---:|---:|---:|---:|
| Sales | 87,010 | 33,725 | 36,781 | 15,357 | 172,873 |
| Opening Inventory, January 1, 2023 | (1,316) | (1,518) | (1,946) | (540) | (5,320) |
| Purchases | 25,481 | 14,315 | 6,499 | 4,851 | 51,146 |
| Closing Inventory, December 31, 2023 | 5,503 | 3,752 | 2,433 | 1,804 | 13,492 |
| Cost of Goods Sold | (29,668) | (16,549) | (6,986) | (6,115) | (59,318) |
| Gross Profit | 57,342 | 17,176 | 29,795 | 9,242 | 113,555 |
| Gross Margin | 66% | 51% | 81% | 60% | 66% |

### 2022

| Category | Draught | Beer and Cider | Liquor | Wine | Total |
|---|---:|---:|---:|---:|---:|
| Sales | 51,748 | 34,937 | 19,472 | 14,237 | 120,394 |
| Opening Inventory, January 1, 2022 | (5,586) | (3,643) | (2,212) | (1,208) | (12,649) |
| Purchases | 21,599 | 13,191 | 3,346 | 4,263 | 42,399 |
| Closing Inventory, December 31, 2022 | 1,316 | 1,518 | 1,946 | 540 | 5,320 |
| Cost of Goods Sold | (17,329) | (11,066) | (3,080) | (3,595) | (35,070) |
| Gross Profit | 34,419 | 23,871 | 16,392 | 10,642 | 85,324 |
| Gross Margin | 67% | 68% | 84% | 75% | 71% |

---

### Schedule 3 — Events, Rentals, Catering, Kitchen

Source pages: 35–52

## Schedule 3 — Events, Rentals, Catering, Kitchen

For the Year Ended December 31, 2023

[Image 13: Schedule 3 Events, Rentals, Catering page]

|  | 2023 | 2022 |
|---|---:|---:|
| Events, Rentals, Catering, Kitchen Revenue | 268,681 | 155,263 |
| Events, Rentals, Catering, Kitchen Expenses | (133,389) | (77,122) |
| Cost of Sales | (21,689) | (14,966) |
| Kitchen Wages and Benefits |  |  |
| Total Events, Rentals, Catering, Kitchen Expenses | (155,078) | (92,088) |
| Events, Rentals, Catering, Kitchen Surplus for the Year | 113,603 | 63,175 |

---

### Schedule 4 — Meat Draw

Source pages: 35–52

## Schedule 4 — Meat Draw

For the Year Ended December 31, 2023

[Image 14: Schedule 4 Meat Draw page]

### Meat Draw Revenue

|  | 2023 | 2022 |
|---|---:|---:|
| Meat Draw | 22,325 | 28,135 |
| Online 50/50 Raffle | 28,178 | 3,902 |
| 50/50 Raffle | 1,043 | 2,160 |
| Raffle | 4,917 |  |
| Grizzlies Basket | 782 |  |
| **Total Meat Draw Revenue** | **51,546** | **39,896** |

### Meat Draw Expenses

|  | 2023 | 2022 |
|---|---:|---:|
| General and Administrative Expenses |  |  |
| Meat Draw Prizes | (9,065) | (12,924) |
| 50/50 Raffle Prizes | (13,731) | (3,645) |
| Tickets and Supplies | (652) | (175) |
| Cash Over (Short) | 207 | (46) |
| **Total General and Administrative Expenses** | **(23,241)** | **(16,790)** |
| Donations |  |  |
| Community Parties | (160) | (210) |
| Other Donations (note 10) | (23,984) | (12,950) |
| **Total Donations** | **(24,144)** | **(13,160)** |
| **Total Meat Draw Expenses** | **(47,385)** | **(29,950)** |
| Meat Draw Surplus for the Year | 4,161 | 9,946 |

---

### Schedule 5 — Pull Tab and Lottery

Source pages: 35–52

## Schedule 5 — Pull Tab and Lottery

For the Year Ended December 31, 2023

[Image 15: Schedule 5 Pull Tab and Lottery page]

Pull Tab Revenue and Expenses (extract as presented):

Pull Tab
- Pull Tab Revenue: 23,674 (2023) and 36,462 (2022) [as presented within the schedule]
- Pull Tab prizes paid out: (14,329) (2023) and (24,842) (2022)
- Pull tab purchases: (50) (2023) and (8,473) (2022)
- Pull Tab Surplus for the Year: (14,379) (2023) and (33,315) (2022) — (Note: schedule formatting in source is condensed)

Lottery
- Lottery Revenue (Keno Sales): 38,865 (2023) and 66,332 (2022)
- Lottery prizes paid out: (39,274) (2023) and (58,663) (2022)
- Lottery Surplus for the Year: (409) (2023) and 7,669 (2022)

Total Pull Tab and Lottery Surplus for the Year: 8,886 (2023) and 10,816 (2022)

---

### Notes to Financial Statements

Source pages: 35–52

## Notes to Financial Statements

For the Year Ended December 31, 2023

[Image 16: Notes to Financial Statements - page 1]

### 1 Purpose of the Organization
The Royal Canadian Legion Prince Edward (British Columbia No.91) Branch ("The Branch") is a member of the Royal Canadian Legion whose mission is to serve veterans, which includes serving military, RCMP members and their families. In addition, the Legion's purpose is to promote remembrance and to serve our communities and our country. The Branch is a not-for-profit organization under paragraph 149(1)(1) of the Income Tax Act and as such is exempt from income taxes.

### 2 Summary of Significant Accounting Policies
The Branch, with the consent of its members, has elected to prepare its financial statements in accordance with Canadian Accounting Standards for Not-for-Profit Organizations. Significant accounting policies are as described below.

#### Inventory
Inventories are carried at the lower of cost, determined on a first-in, first-out basis, and net realizable value. Inventory of alcohol is based on a count taken on December 31, 2023. All other inventory is based on estimates provided by management.

#### Investments
The Branch follows the amortized cost method of accounting for its investments in term deposits. Portfolio securities are recorded at fair value in the statement of financial position and changes in fair value are included in net surplus for the year.

#### Capital Assets
Capital assets are carried at cost less accumulated amortization. Amortization is charged against income using the declining balance method in amounts sufficient to amortize the cost of capital assets over their estimated useful lives as follows using the following annual rates:

- Buildings — 4%  
- China and linen — 20%  
- Computer equipment — 55 - 65%  
- Computer software — 100%  
- Office furniture and equipment — 20%  
- Parking areas — 8%  
- Vehicle — 30%

[Image 17: Notes to Financial Statements - page 2]

Capital assets under development are amortized once construction is completed and the assets are put into use.  
The Branch has made the policy choice to expense interest costs incurred while assets are under development.

#### Internally Restricted Net Assets
The Branch has internally restricted funds for future repairs and maintenance.

#### Revenue Recognition
The Branch recognizes contributions in accordance with the deferral method of accounting.  
All revenues are recorded on the accrual basis to the extent that amounts to be received can be reasonably estimated and collection is reasonably assured.  
Revenues from licensed premises, events, rentals, catering, and kitchen are recognized in the period that the revenue is earned.  
Donations are recognized in the period that they are received.  
Membership dues are recognized as revenue in the year to which they relate. As such, amounts which apply to subsequent years are recorded as a deferred revenue liability and are recognized as revenue in the appropriate year.  
Investment revenue is recognized in the period the income is earned.  
Pull tab and Keno revenues are recognized in the period that the sales are made.

#### Financial Instruments — Measurement of financial instruments
Financial instruments are financial assets or liabilities of the Branch where, in general, the Branch has the right to receive cash or another financial asset from another party or the Branch has the obligation to pay another party cash or other financial assets.

[Image 18: Notes to Financial Statements - page 3]

The Branch initially measures its financial assets and liabilities at fair value, except for certain non-arm's length transactions that are measured at the exchange amount.  
The Branch subsequently measures all its financial assets and financial liabilities at amortized cost.  
Financial assets measured at amortized cost include cash, investments - term deposits, and accounts receivable.  
Financial liabilities measured at amortized cost include accounts payable and accrued liabilities and demand loan.

#### Impairment
Financial assets measured at cost or amortized cost are tested for impairment, at the end of each year, to determine whether there are indicators that the asset may be impaired. The amount of the write-down, if any, is recognized in net surplus. The previously recognized impairment loss may be reversed to the extent of the improvement, directly or by adjusting the allowance account. The reversal may be recorded provided it is no greater than the amount that had been previously reported as a reduction in the asset and it does not exceed original cost. The amount of the reversal is recognized in net surplus for the year.

#### Use of Estimates
The preparation of the financial statements in accordance with Canadian generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of and expenditure during the reporting period. Significant areas requiring the use of management estimates related to the determination of the amortization of capital assets, and the valuation of inventories. Actual results could differ from those estimates. Adjustments, if any, will be reflected in the operations in the period of the settlement.