DocumentsAppendixJul 20, 2026Pages 6–19
Financial Statements — Construction Foundation of BC (2012) Society — September 30, 2025
Draft audited financial statements for the Construction Foundation of BC (2012) Society for the year ended September 30, 2025, including the auditor’s report, financial statements, and notes. The auditor’s report gives a fair-presentation opinion under Canadian accounting standards for private enterprises.
Key facts
- Year ended September 30, 2025
- Revenues: $6,473,875
- Excess of revenues over expenses: $80,696
- Total assets: $7,535,099
- Deferred contributions: $5,184,068
Financial Statements
Construction Foundation of BC (2012) Society
September 30, 2025
Contents
| Page | |
|---|---|
| Independent Auditor's Report | 1–2 |
| Statement of Operations | 3 |
| Statement of Changes in Net Assets | 4 |
| Statement of Financial Position | 5 |
| Statement of Cash Flows | 6 |
| Notes to the Financial Statements | 7–12 |
Independent Auditor's Report
To the Members of
Construction Foundation of BC (2012) Society
Opinion
We have audited the financial statements of Construction Foundation of BC (2012) Society, which comprise the statement of financial position as at September 30, 2025, and the statements of operations, changes in net assets and cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies.
In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Organization as at September 30, 2025, and the results of its operations and its cash flows for the year then ended in accordance with Canadian accounting standards for private enterprises.
Basis for opinion
We conducted our audit in accordance with Canadian generally accepted auditing standards. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Organization 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 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 private enterprises, 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 Organization'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 Organization or to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Organization's financial reporting process.
Auditor's 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 auditor's 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 Organization's internal control.
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
- 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 Organization's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's 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 auditor's report. However, future events or conditions may cause the Organization 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.
Report on other legal and regulatory requirements
As required by the Societies Act of British Columbia, we report that, in our opinion, the account principles in the Canadian accounting standards for not-for-profit organizations have been applied on a consistent basis.
Victoria, Canada
Date to be determined
Chartered Professional Accountants
Statement of Operations
Year ended September 30
| 2025 | 2024 | |
|---|---|---|
| Revenues | ||
| Contributions | $6,263,311 | $6,273,056 |
| Donations | 75,302 | 140,533 |
| Interest income | 125,262 | 67,725 |
| Rental | 10,000 | - |
| Total revenues | 6,473,875 | 6,481,314 |
| Expenditures | ||
| Amortization | 16,267 | 22,017 |
| Board expenses | 27,487 | 17,886 |
| Community expenses | 254,724 | 805,531 |
| Consulting fees | 1,219,044 | 1,187,810 |
| Donations | 147,790 | 112,276 |
| Events and activities | 138,688 | 113,412 |
| Gifts and honorariums | 26,713 | 27,154 |
| Marketing and promotion | 60,236 | 55,053 |
| Occupancy costs | 145,903 | 151,141 |
| Office and sundry | 109,472 | 82,721 |
| Participation costs | 1,289,384 | 513,556 |
| Professional fees | 43,535 | 43,638 |
| Telephone and internet | 27,075 | 21,936 |
| Travel and accommodation | 291,210 | 187,190 |
| Wages and benefits | 2,550,312 | 2,272,902 |
| Website and computer maintenance | 45,339 | 39,687 |
| Total expenditures | 6,393,179 | 5,653,910 |
| Excess of revenues over expenses | $80,696 | $827,404 |
See accompanying notes to the financial statements.
Statement of Changes in Net Assets
Year ended September 30
| Unrestricted | Internally restricted | Total 2025 | Total 2024 | |
|---|---|---|---|---|
| Balance, beginning of year | $1,357,377 | $897,256 | $2,254,633 | $1,427,229 |
| Excess (deficiency) of revenues over expenses | 225,392 | (144,696) | 80,696 | 827,404 |
| Interfund transfers | 100,000 | (100,000) | - | - |
| Balance, end of year | $1,682,769 | $652,560 | $2,335,329 | $2,254,633 |
See accompanying notes to the financial statements.
Statement of Financial Position
September 30
| 2025 | 2024 | |
|---|---|---|
| Assets | ||
| Current | ||
| Cash | $2,877,335 | $2,032,996 |
| Short term investments (Note 3) | 2,729,693 | 3,641,600 |
| GST receivable | 52,808 | 14,768 |
| Accounts receivable (Note 4) | 604,464 | 321,779 |
| Prepaid expenses | 38,192 | 38,423 |
| Total current assets | 6,302,492 | 6,049,566 |
| Long-term | ||
| Long-term investments (Note 3) | 55,404 | 53,324 |
| Tangible capital assets (Note 5) | 1,177,203 | 38,070 |
| Total long-term assets | 1,232,607 | 91,394 |
| Total assets | $7,535,099 | $6,140,960 |
| Liabilities | ||
| Current | ||
| Accounts payable and accrued liabilities | $8,865 | $15,894 |
| Deferred contributions (Note 6) | 5,184,068 | 3,870,433 |
| Total current liabilities | 5,192,933 | 3,886,327 |
| Long-term | ||
| Deferred capital contributions (Note 7) | 6,837 | - |
| Total liabilities | 5,199,770 | 3,886,327 |
| Net Assets | ||
| Unrestricted | 1,682,769 | 1,357,377 |
| Internally restricted | 652,560 | 897,256 |
| Total net assets | 2,335,329 | 2,254,633 |
| Total liabilities and net assets | $7,535,099 | $6,140,960 |
Commitments (Note 9)
Approved by the Directors
Director
Director
See accompanying notes to the financial statements.
Statement of Cash Flows
Year ended September 30
| 2025 | 2024 | |
|---|---|---|
| Increase (decrease) in cash | ||
| Operating | ||
| Excess of revenues over expenses | $80,696 | $827,404 |
| Item not affecting cash | ||
| Amortization | 16,267 | 22,017 |
| 96,963 | 849,421 | |
| Change in non-cash working capital items | ||
| GST receivable | (38,040) | 7,065 |
| Accounts receivable | (282,685) | 722,408 |
| Prepaid expenses | 231 | (15,777) |
| Accounts payable and accrued liabilities | (7,029) | 14,982 |
| Deferred contributions | 1,313,635 | 60,898 |
| 1,083,075 | 1,638,997 | |
| Financing | ||
| Deferred capital contributions | 6,837 | - |
| Investing | ||
| Purchase of long-term investments (note 3) | - | (3,489,689) |
| Purchase of tangible capital assets | (1,155,400) | (24,524) |
| Investments converted to cash on maturity | 909,827 | - |
| (245,573) | (3,514,213) | |
| Increase (decrease) in cash | 844,339 | (1,875,216) |
| Cash | ||
| Beginning of year | 2,032,996 | 3,908,212 |
| End of year | $2,877,335 | $2,032,996 |
See accompanying notes to the financial statements.
Notes to the Financial Statements
Construction Foundation of BC (2012) Society
September 30, 2025
1. Purpose of the Society
Construction Foundation of BC (2012) Society (the "Society") is a not-for-profit organization incorporated under the Societies Act of British Columbia. As a registered charity the society is exempt from the payment of income tax under Section 149(1) of the Income Tax Act.
The Society operates to provide scholarships, bursaries and prizes for scholastic achievement to students pursuing construction trades and apprenticeship programs.
2. Significant accounting policies
The Society follows accounting principles generally accepted in Canada in preparing its financial statements. The significant accounting policies used are as follows:
Revenue recognition
The Society follows the deferral method of accounting for contributions and records its activities in the following funds:
Unrestricted contributions are recognized as revenue when received or receivable if the amount to be received can be reasonably estimated and collection is reasonably assured.
Restricted contributions are recognized as revenues in the year in which the related expenses are incurred. Contributions restricted for the purpose of acquiring capital assets are recorded as deferred capital contributions and are amortized into revenue over the useful lives of the corresponding assets acquired.
Interest income generated by term deposits is recognized as revenue when earned.
Rental income is recognized on a straight-line basis over the term of the lease. Any differences between recognized revenue and the total rental receivable under the rental agreement to date, is included in accounts receivable as a rent receivable.
Use of estimates
Management reviews the carrying amounts of items in the financial statements at each balance sheet date to assess the need for revision or any possibility of impairment. Many items in the preparation of these financial statements require management’s best estimate. Management determines these estimates based on assumptions that reflect the most probable set of economic conditions and planned courses of action.
These estimates are reviewed periodically and adjustments are made to net income as appropriate in the year they become known.
Items subject to significant management estimates include the recoverability of accounts receivable, useful life of property and equipment, amount of accrued liabilities, and deferred contributions.
2. Significant accounting policies (continued)
Tangible capital assets
Tangible capital assets are initially measured at cost and subsequently measured at cost less accumulated amortization. Amortization is provided on a straight-line basis over the estimated useful life of the asset.
The amortization rates used for each class of property, plant and equipment are:
| Class | Useful life |
|---|---|
| Furniture and fixtures | 3 years |
| Buildings | 32 years |
| Computer equipment | 3 years |
| Leasehold improvements | 3 years |
Impairment of long-lived assets
The Society tests long-lived assets for impairment whenever events or changes in circumstances indicate that its carrying amount may not be recoverable. An impairment loss is recognized when the carrying amount of the asset exceeds the sum of the undiscounted cash flows resulting from its use and eventual disposition. The impairment loss is measured as the amount by which the carrying amount of the long-lived asset exceeds its fair value.
Financial instruments
The Society considers any contract creating a financial asset, liability or equity instrument as a financial instrument, except in certain limited circumstances. The Society accounts for the following as financial instruments:
- cash and cash equivalents
- accounts receivable
- short term investments
- accounts payable and accrued liabilities
Financial instruments in arm's length transactions
Initial measurement
The Society initially measures financial assets and financial liabilities originating, acquired, issued or assumed in arm’s length transactions at fair value.
Subsequent measurement
The Society subsequently measures these financial assets and financial liabilities at amortized cost, except for investments in equity instruments that are quoted in an active market, which are measured at fair value. Changes in financial instruments measured at fair value are recognized in net income.
Derecognition
The Society removes financial liabilities, or a portion of, when the obligation is discharged, cancelled or expires.
2. Significant accounting policies (continued)
Financial instruments (continued)
Impairment
Financial assets measured at cost or amortized cost are tested for impairment when indicators of impairment exist at the end of the reporting period. Previously recognized impairment losses are reversed to the extent of the improvement provided the financial asset is not carried at an amount, at the date of the reversal, greater than the amount that would have been the carrying amount had no impairment loss been recognized previously. The amounts of any write-downs or reversals are recognized in net income.
Contributed services
The operations of the Society depend on the contribution of time and services by various volunteers. The fair value of donated services cannot be reasonably determined and are therefore not reflected in these financial statements.
3. Investments
As at September 30, 2025, $2,785,097 was invested in Guaranteed Investment Certificates (GICs) at a rate of 2.95%-3.25% (2024: $3,694,924; 3.95%-4.95%), and mature between October, 2025, and November, 2025.
4. Accounts receivable
| 2025 | 2024 | |
|---|---|---|
| Program funding receivable | $569,550 | $280,817 |
| Accrued interest receivable | 34,914 | 40,962 |
| Total | $604,464 | $321,779 |
5. Tangible capital assets
| Cost | Accumulated Amortization | Net Book Value 2025 | Net Book Value 2024 | |
|---|---|---|---|---|
| Land | $1,131,749 | $- | $1,131,749 | $- |
| Furniture and fixtures | 58,075 | 40,400 | 17,675 | 17,675 |
| Buildings | 11,512 | - | 11,512 | - |
| Computer equipment | 77,112 | 66,824 | 10,288 | 8,437 |
| Leasehold improvements | 17,938 | 11,959 | 5,979 | 11,958 |
| Total | $1,296,386 | $119,183 | $1,177,203 | $38,070 |
6. Deferred contributions
| Balance, beginning of year | Contributions received | Recognized as revenue | Balance, end of year | |
|---|---|---|---|---|
| PACT | $898,136 | $1,466,000 | $(990,579) | $1,373,557 |
| WOLF | - | 1,781,000 | (686,486) | 1,094,514 |
| Wired/R2RS | - | 650,000 | (51,431) | 598,569 |
| Green Health | 367,616 | 200,000 | (87,100) | 480,516 |
| Indigenous Housing | 131,509 | 645,000 | (317,310) | 459,199 |
| Deferred donations | 416,733 | 92,129 | (110,202) | 398,660 |
| HFN 2 | - | 401,200 | (134,105) | 267,095 |
| R2RS Services | 98,449 | - | - | 98,449 |
| KCFN | 303,103 | - | (213,861) | 89,242 |
| WIRED | 188,914 | - | (111,202) | 77,712 |
| VLS | 124,863 | 175,000 | (238,498) | 61,365 |
| Ind Housing - IMP | - | 60,000 | - | 60,000 |
| WE FCR | - | 207,745 | (161,144) | 46,601 |
| ReFrame | 43,895 | 436,395 | (447,012) | 33,278 |
| FII | 49,984 | 82,258 | (102,388) | 29,853 |
| Trail Makers | - | 309,260 | (298,054) | 11,206 |
| All Roads Services | 4,995 | 33,335 | (34,255) | 4,074 |
| CLAC | - | 269,209 | (269,030) | 178 |
| LWN | 50,620 | - | (50,620) | - |
| AMP | 220,328 | - | (220,328) | - |
| FNFN | 121,374 | - | (121,374) | - |
| Build Green | 214,997 | - | (214,997) | - |
| HFN | 210,290 | - | (210,290) | - |
| SFN | 116,134 | - | (116,134) | - |
| LYNX 3 | 228,028 | - | (228,028) | - |
| PRFN | 72,273 | - | (72,273) | - |
| KELP | 8,192 | - | (8,192) | - |
| Total | $3,870,433 | $6,808,531 | $(5,494,893) | $5,184,068 |
Contributions received relate to funding from industry and Government sources which has been restricted for the use in specific programs. Restricted contributions are recognized as revenue in the period in which the restrictions on the funding have been met. The balance of deferred contributions at year end represents funding received for programs above the amount that has been spent on those programs to September 30, 2025.
7. Deferred capital contributions
Deferred capital contributions represent unamortized contributions which have been used for the purchase or development of capital assets. These contributions will be recognized as revenue in future periods as the related capital assets are amortized. The balance at September 30, 2025 represents amounts received for the ongoing development of the Spencer Road property.
| 2025 | 2024 | |
|---|---|---|
| Balance, beginning of year | $- | $- |
| Current year additions | 6,837 | - |
| Balance, end of year | $6,837 | $- |
8. Internally restricted
On January 23, 2025, the Board of Directors authorized the transfer of $800,000 from the Unrestricted Fund to the Internally Restricted Fund to support specific program activities. The allocation was designated as follows: $200,000 for the Indigenous Services Program, $500,000 for the Skills Ready Program, and $100,000 for the Peer to Peer Program.
Subsequently, on September 25, 2025, the Board approved a transfer of $900,000 from the Internally Restricted Fund back to the Unrestricted Fund to facilitate the acquisition of land for organizational purposes.
During the year, in alignment with the intended purposes of the restrictions, the Organization expended the following amounts: $59,047 from the Peer to Peer Fund, $1,860 from the Indigenous Services Fund, $9,594 from the Skills Ready Fund, and $74,194 from Donor Advised Funds. Total expenditures from restricted sources amounted to $144,696.
9. Commitments
The Society's leases office space to support its operations. Future minimum lease payments are as follows:
| Amount | |
|---|---|
| 2026 | $96,231 |
| 2027 | 48,587 |
| Total | $144,818 |
In addition to the above noted minimum lease payments the Society is also obligated to pay their share of operating costs, which fluctuate year to year.
10. Remuneration
Under the British Columbia Societies Act there is a requirement to disclose the remuneration paid to all directors, and certain employees and contractors who are paid at least $75,000 annually. During the year, there were nineteen (2024: seventeen) employees and contractors who met this criterion, and the total amount of remuneration paid to these persons was $2,090,737 (2024: $1,904,286), this includes salary, and benefits paid to the employees and contractors.
11. Financial instruments
The Society exposed to the following risks through its financial instruments:
(a) Credit risk
Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. The Society's main credit risks relate to its accounts receivable and cash. Receivables are generally the result of amounts due from government agencies and other credible organizations. Accordingly, it is management's opinion that the credit risk associated with these amounts are minimal. The Society strives to mitigate the risk associated with cash by maintaining balances in highly liquid accounts or deposits with major Canadian financial institutions. It is management's opinion that there is no significant credit risk as of September 30, 2025.
(b) Liquidity risk
Liquidity risk arises from the possibility that the Society might encounter difficulty in settling its debts or in meeting its obligations related to financial liabilities. In the normal course of business, the Society is exposed to liquidity risk. The Society's primary risk management objective is to protect earnings and cash flow in order to support its operations. Risks are managed within limits ultimately established by the Society's Board of Directors and implemented by management.
(c) Market risk
Market risk is the risk that the fair value or expected future cash flows of a financial instrument will fluctuate because of changes in market prices. The carrying value of cash, short-term investments, receivables, and payables and accruals approximates fair value due to the relatively short-term maturity of these financial instruments. Unless otherwise noted, it is management's opinion that the Society is not exposed to significant interest, currency or credit risk arising from these financial instruments.
12. Comparative figures
Comparative figures have been adjusted to conform to changes in the current year presentation.