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March 4, 2011

List of Enclosures
to my letter to
Mayor and Council
4 March 2011

A. West Vancouver Memorial Library (WVML) Expenditures

Details of my response to the letter to WV Mayor and Council “Summary of Findings for
Council regarding Library Expenditures” from the WV Memorial Library and WV
Memorial Library Foundation, 24 Jan 2011. The letter itself is Enclosure B.

B. “Summary of Findings for Council regarding Library

Expenditures”

The letter to WV Mayor and Council from the WV Memorial Library and WV Memorial
Library Foundation, 24 Jan 2011

C. Fundraising Efficiency of the WVML Foundation 2009

My detailed analysis of the fundraising efficiency of the WVML Foundation in 2009

D. WVML Foundation Detailed Financial Information for 2009 from

the Canada Revenue Agency

E. WVML Foundation Auditors’ Report, Financial Statements,

December 31, 2009

F. Comparative Analysis of Canadian Library Foundations 2009

G. WVM Library Foundation Board Minutes, 2000 Oct 18

H. WVM Library Foundation Board Minutes, 2001 July 18

1 of 1
March 4, 2011

West Vancouver Memorial

Library Expenditures
George Pajari

A detailed analysis of the letter to WV Mayor and Council

“Summary of Findings for Council regarding Library Expenditures”
from the WV Memorial Library and WV Memorial Library Foundation, 24 Jan
2011

1.0 Introduction

This is a detailed response to the letter dated “January 24, 2011” to “Mayor Goldsmith-
Jones and Council” from the Chair of the West Vancouver Memorial Library Board and
the Chair of the West Vancouver Memorial Library Foundation Board. All quotations
below are from this letter unless otherwise identified.

2.0 Ability to Contact George Pajari

1. I am in the phone book, and as the only George Pajari in any phone book in Canada,
one merely need type my name into 411.ca or superpages.ca (no city or province
needed) to obtain my mailing address and phone number.
2. My name and address were accurately reported by the Municipal Clerk in the minutes
for the two Council meetings at which I spoke.
3. Several people, previously unknown to me, have called and written to congratulate me.
Global TV called me for an interview which was broadcast on February 18th. Amaz-
ing that they all could reach me and the Library, with all its research resources, could
not.

1 of 4
 Analysis of WVM Library Foundation Fiscal Efficiency

3.0 Analysis of WVM Library Foundation Fiscal

Efficiency

Given the complexity of this matter, I have prepared a separate analysis of the WVMLF
efficiency (attached) that addresses the above claims. In summary, regardless of whether
one uses my original analysis (based on the figures from the Canada Revenue Agency) or
one uses the figures from the audited financial statements, the performance of the
WVMLF in 2009 was abysmal and far below the minimum expected by the CRA of
charitable organizations. Furthermore, when compared with other Library Foundations in
Canada on an apples-to-apples basis, the WVMLF ranked 16 out of 17.

I did not suggest the Foundation operated at a loss. What I said, exactly, was that in 2009
they “raised $127,000 but spent $134,000 on overhead” and “the WV Library Foundation
spent $7,000 more on overhead than they raised”. “Raised” means fundraised (through
donations; as opposed to earned from investments or from sales). As the attached analysis
shows, my statements are correct whether one takes the numbers from the CRA or the
Foundation's own audited financial reports.

Fabricating claims, and then showing the fabricated claims to be false, does not reflect
well upon the Library.

4.0 When is Custom-Made Custom-Made?

custom-made1
adjective ( also custom-built etc. )

made to an individual customer's order or specifications.

On January 6th, I spoke with the manufacturer of the furniture and emailed him a photo of
the study carrels. He confirmed that the furniture was built to the customer's specifications
(from a combination of standard and custom-made components), with a design that was
cut2 into the custom-shaped end-panels also according to the customer's specifications. He
followed up with an email confirming that the units were custom

I stand by my assertion: the furniture was custom (i.e. not a standard catalogue item) with
a design (both the shape of the end panels and the pattern on them) specified to match the
pattern in the carpet. As if to illustrate the folly of such customization, the carpet the
panels were designed to match was replaced during a recent renovation with a different
design and so the carrels no longer match the floor covering.

1. From The Canadian Oxford Dictionary. Katherine Barber. Oxford University Press 2004.
Oxford Reference Online. Oxford University Press. <http://0-www.oxfordreference.com.cata-
logue.westvanlibrary.ca/views/ENTRY.html?subview=Main&entry=t150.e17098>
2. for clarity, the Canadian Oxford Dictionary, cited above, defines “engrave” as “inscribe, cut, or
carve”

West Vancouver Memorial Library Expenditures 2 of 4

 Custom Carpet and Matching Furniture or Shakespeare? That is the Question!

5.0 Custom Carpet and Matching Furniture or

Shakespeare? That is the Question!
Carpet: $ 7,700 The thing that galled me even more at the board meeting that approved this purchase (and
Furniture: 43,561 which I attended as a citizen observer) was that at the same meeting a recommendation to
purchase the complete works of Shakespeare by the BBC on DVD was considered and
Shakespeare DVDs: rejected. The DVDs would have cost less than $5,000. The furniture cost more than
< $ 5,000 $43,000. The borders and decorative inserts in the carpet cost an additional $7,700.

6.0 Comparative Costs of Library Carrels: Custom vs

Standard
Custom library carrels: It is also informative to compare the cost of these units with the cost of “off-the-rack”
$2,600 per seat. study carrels from a catalogue of library furniture. The cost of the custom units (with 14
seats) was $43,561.03. If we remove GST, PST, and $1,800 for shipping and installation,
we end up with a cost of roughly $2,600 per seat.
Standard steel/ The cost of an off-the-rack multi-unit library study carrel from a commercial furniture
laminated wood carrels: manufacturer specializing in heavy-duty products for schools and libraries, made of steel
$450 per seat. and laminated wood (which the Library states is how their carrels are built), is roughly
$450 per seat (including electrical outlets). For solid wood, approx. $1,075 per seat
(including electrical outlets).
Standard solid wood
carrels:
$1,075 per seat.

7.0 Analysis of Library Foundation Expenses

I did not say that the investment management fees were a fundraising expense. I did use a
figure from the Canada Revenue Agency (CRA) that included all expenses for several
reasons:
1. the allocation of expenses for fundraising is typically not accurately reported so to
fairly compare the performance of different library foundations, I compared total funds
raised through donations to total overhead since those numbers are consistently and
accurately reported.
2. I could not compare the CRA figures to the Library Foundation's financials as the
Library Foundation did not respond to a written request for a copy of their annual
report and financials. And unlike some other foundations, they do not make this infor-
mation available on the web.
3. Even if one excludes investment fees, the Library Foundation's expenses (according to
their audited financial statements, not the CRA) were 93% of the total donations
(excluding investment income and profits from the Murchie coffee kiosk, which are
hardly donations).

West Vancouver Memorial Library Expenditures 3 of 4

 2009 Was a Difficult Year

Most guidelines for charities1 recommend that expenses ought not to exceed 35% of
donations. So even using the Library Foundation's own figures, their fundraising
efficiency in 2009 was abysmal.

As mentioned earlier, a more detailed analysis is attached.

8.0 2009 Was a Difficult Year

No doubt. But there are 17 active library foundations in Canada and all would have had
the same challenges in 2009 yet if we compare how the other 16 performed, all but one
had a better ratio of total expenses to total donations that the WVML Foundation (see
attached).

Even if we think the problems in 2009 were localized to West Vancouver, the West
Vancouver Community Foundation's 2009 financials show they fundraised roughly seven
times more money that the Library while spending about half the amount on total
overhead than the Library.

9.0 Summary

When in a hole, stop digging. It would probably be prudent for the Library to stop trying
to defend the indefensible, especially by resorting to falsehoods, misrepresentations, and
twisting words out of shape (e.g. custom is not custom). The issue has received more
attention than it deserves and the handling of the matter does not reflect well on either the
Library or the Library Foundation. Admit that there have been problems and mistakes,
commit to doing better, and move on.

What a waste and how much more damage this has done to the Library and the Library
Foundation, damage that could have been avoided with a more measured and truthful
response by all to my original and subsequent comments.

That said, I have many more examples from the years when I was an observer at Library
Board meetings on behalf of a local ratepayer association and if the Library and
Foundation continue to bring up this matter, I should be only too pleased to go back into
my files.

It was gracious of the Mayor to apologize to me when it was shown her comments were
based on false information provided to her by the Library. I have not received an apology
from any of those associated with the Library who misinformed the Mayor or who have
made false statements to the public and the media.

1. See, for example, http://www.cra-arc.gc.ca/chrts-gvng/chrts/plcy/cps/cps-028-eng.html#h9

West Vancouver Memorial Library Expenditures 4 of 4

March 4, 2011

Fundraising Efficiency of
the West Vancouver
Memorial Library
Foundation 2009
George Pajari

A detailed analysis of the fundraising efficiency of the WV Memorial Library

Foundation in 2009, along with a general background on the issues related
to analysing fundraising foundations.

1.0 Introduction

Questions have been raised about the fundraising efficiency of the West Vancouver
Memorial Library Foundation. In response to my original claim that the Foundation's total
overhead expenses were more than the total donations, the Foundation has said that the
analysis “misrepresented the Foundation's financial performance substantially”, that “the
foundation did not operate at a loss…as suggested”, and that “Mr. Pajari's numbers …
were incorrect”.

This paper details the issues surrounding an analysis of a fundraising foundation such as
the West Vancouver Memorial Library Foundation, explains how the different analyses
have been derived, and how the performance of the Foundation compares on an absolute
as well as a relative basis.

It will show, in excruciating detail, that my numbers are correct, that they are derived from
those provided by the Foundation itself, and that they show that total overhead expenses
were more than total donations, which is what was my original claim.

After reviewing the details below, it is left to the reader to assess the truthfulness of the
statements made by the Library Foundation spokespersons quoted above.

2.0 History

In response to the West Vancouver Mayor’s denial of the truth of my comments related to
a questionable expenditure by the Library (during which she made reference to the
WVMLF), I brought up the issue of the Foundation's poor performance in 2009. Please
note, I did not bring up the Library Foundation, that was done by the Mayor when she was

1 of 6
 The Problems of Analyzing a Fundraising Foundation

trying to discredit my original presentation. Once she raised the matter, however, I felt it
appropriate to put it into context.

Contrary to the allegations of the Chairs of the Library Board and the Foundation Board, I
did not say that the Foundation operated at a loss. Also, I was not commenting on “the
Foundation's [overall] financial performance”.

What I said, exactly, was that the Foundation “raised $127,000 but spent $134,000 on
overhead” and “the WV Library Foundation spent $7,000 more on overhead than they
raised”.

There have been many comments from those associated with the Library, both misquoting
me as well as contesting the accuracy and fairness of my numbers.

Of course, misquoting me or attributing to me false statements I did not make, makes

trying to discredit me just that much easier. Just not successful for the careful reader who
recognizes the ruse.

The word “raised” in this context means fundraised through donations, not generated
through investments (which did provide income so that the Foundation did not have an
overall loss for the year) or derived from art and coffee sales (which are not donations).

3.0 The Problems of Analyzing a Fundraising

Foundation

Broadly speaking, there are three types of charities (speaking from a fiscal perspective):
1. purely fundraising charities (e.g. The Canadian Cancer Society) that actively raise
money in support of charitable activities with the goal of spending all or substantially
all funds in the year they are received;
2. purely endowed foundations (e.g. the Canadian Beaverbrook Foundation) which is
created with a substantial endowment (usually from a philanthropic individual, family,
or corporation), possibly with subsequent additions from the same sources as origi-
nally funded the foundation. These charities do not do any fundraising and typically
receive no donations (other, as had been mentioned, from the founders). All revenue is
derived either from investment income from the endowment fund or from selling
assets bequeathed to the foundation and some of this revenue is spent on charitable
activities and some add to the value of the investment portfolio.
3. hybrid charities that perform both functions: actively raising funds as well as investing
an endowment fund. Revenue is therefore derived from both donations and from
investment income. In some years more money can be spent on overhead and charita-
ble activities than has been received in donations by using investment income and/or
depleting the endowment fund. The overhead expenses of such hybrid charities simi-
larly fall into two categories: those related to the operation of the foundation (i.e. man-
aging the investment portfolio) and those related to fundraising and ancillary expenses.

The ability to analyze the efficiency of each of these three types of charity (i.e. the amount
of money spent to raise a given amount of donations) varies:

Fundraising Efficiency of the WVML Foundation 2009 2 of 6

 Analysis Using CRA Data

1. Pure fundraising charities are very easy to analyze: one merely compares the costs
incurred by the charity not directly related to charitable activities with the amount of
money received in donations.
2. Pure endowed foundations need not be analyzed -- they do no fundraising.
3. Hybrid charities are difficult to analyze because these organizations rarely categorize
their costs into the two categories accurately (and, in fairness, it is very difficult to do
so accurately). This difficulty is often compounded by two complicating factors:
• The only source of financial information on all charities is from the Canada
Revenue Agency (CRA) and the information they collect from charities (the
T3010 return) does not provide line items to separate the costs associated
with managing the investment portfolio from other overhead items.
• Furthermore, although the CRA asks charities to break out their direct fund-
raising costs, many appear to ignore this requirement and report that 0% of
their overhead was attributable to fundraising costs when clearly this cannot
be the case. Indeed, the West Vancouver Library Foundation itself reported
to the CRA that in 2008 they spent $0 on fundraising yet raised $353,178. So
obviously the Foundations themselves do not report accurate information
showing the division of expenses between their investment side and their
fundraising side. So we are forced to compare foundations simply by com-
paring all expenses (which are much more likely to be accurate and compa-
rable) to all donations (which are accurately reported to the CRA).

4.0 Analysis Using CRA Data

When I approached the task of trying to analyze the fundraising performance of the
WVMLF I was faced with several challenges:
1. the WVMLF does not make its financial information public (it does not have its own
website, and unlike some other foundations such as the West Vancouver Community
Foundation and the Toronto Library Foundation, does not put its annual report or
financial report on the web);
2. the WVMLF did not respond to my written request for a copy of its financial report
(the copy which is appended and analyzed in the next section was leaked to me by
someone not affiliated with the WVMLF after I made my original comments);
3. the WVMLF does not accurately report its fundraising costs to the CRA (as mentioned
above) so the only accurate measure of the organization’s overhead available to me at
the time was the total amount spent on non-charitable activities as reported to the
CRA;

I did use a figure from the Canada Revenue Agency (CRA) that included all expenses for
several reasons:
1. the allocation of expenses for fundraising is typically not accurately reported so to
fairly compare the performance of different library foundations, I compared total funds
raised through donations to total overhead since these numbers are consistently and
accurately reported.

Fundraising Efficiency of the WVML Foundation 2009 3 of 6

 Analysis Using CRA Data

2. I could not compare the CRA figures to the Library Foundation's financials as the
Library Foundation did not respond to a written request for a copy of their annual
report and financials. And unlike some other foundations, they do not make this infor-
mation available on their website.
3. Even if one excludes investment fees, the Library Foundation's expenses (according to
their audited financial statements, not the CRA) were 93% of the total donations
(excluding investment income and profits from the Murchie coffee kiosk, which are
hardly a donation).

Most guidelines for charities recommend their expenses ought not to exceed 35% of their
donations1. So even using the Library Foundation's own figures, their fundraising
efficiency in 2009 was abysmal.

For example, look at 2008 -- Line 5020 “Fundraising Expenditures” $0! So they raised
over $350K but spent 0 -- norhing! -- doing so. I don't think so. In 2009 it appears that the
only costs they have included in “Total expenditures on fundraising” are the direct costs of
their direct-mail campaign -- none of the general office overhead or staff compensation
have been allocated to fundraising.

The complete 2009 Financial information from the CRA is attached but the salient
numbers are as follows:

TABLE 1. WVMLF 2009 CRA Filing

CRA T3010
Line
Category Number Amount
Total eligible amount of all gifts for which the charity 4500 $ 59,414
issued tax receipts
Total non tax-receipted revenue from fundraising 4630 67,439
TOTAL FUNDRAISING 126,853
Total expenditures before gifts to qualified donees 4950 133,553

As you can see, the CRA figures are the basis for my claim:

total amount raised by donations: $ 126,853

total overhead: $ 133,553

FUNDRAISING OVERHEAD RATIO 105%

1. See, for example, “Guidance on Fundraising by Registered Charities” by the Canada Revenue
Agency (http://www.cra-arc.gc.ca/chrts-gvng/chrts/plcy/cps/cps-028-eng.html)

Fundraising Efficiency of the WVML Foundation 2009 4 of 6

 Alternate Analysis Using Audited Financial Information

5.0 Alternate Analysis Using Audited Financial

Information

The complete 2009 Audited Financial information from the Library Board is attached but
the salient numbers are as follows:

TABLE 2. WVMLF 2009 Audited Financial Results

Financial Item Amount

Donations (General Fund + Croquet) $ 126,853
Murchie’s Coffee Sales and Art Sales 13,918
Fundraising Expenses (General Fund + Croquet) 65,966
Administrative Expenses 45,884
Investment Management Expenses 21,703

Analysis using WVMLF Financial Statements:

total amount raised by donations: $ 126,853

total overhead: $ 111,850

FUNDRAISING OVERHEAD RATIO 93%

In one article, a member of the WVMLF board includes the Murchie’s Coffee sales and
proceeds from art sales to arrive at a revenue figure of 140,771 which results in a ratio of
79%.

6.0 Summary

It has been claimed by the WVML Foundation that the analysis based on the CRA figures
misrepresented the Foundation’s performance because it included the expenses associated
with their investments. As explained above, that is because the CRA does not break out
investment expenses separately.

The relevance of this point, however, is marginal: Even if we exclude investment expenses
(now that that information has been leaked to me), the fundraising ratio is still a dismal
93%.

The Foundation also claims that 2009 was “a difficult year in which to fundraise”. Yet, if
we compare the WVML Foundation’s performance using the 2009 CRA figures with the
17 other Library Foundations in Canada that are actively fundraising (attached), we find
the WVML Foundation ranks 16 out of 17 (only Bowen Island, with its $4,000 in
expenses but only $3,700 in donations performed worse).

Fundraising Efficiency of the WVML Foundation 2009 5 of 6

 Should this be news to the Library or Foundation?

Also, if we look at another West Vancouver charitable foundation (the WV Community

Foundation), we find its total overhead (including investment management fees) was
$67,994 yet it raised $894,069 for a fundraising efficiency ration of 13%!

So in summary, it matters little if you lump in investment expenses (ratio:105%), exclude

investment expenses (ratio: 93%), or also include revenue from Murchie’s Coffee sales
and art sales (ratio: 79%), the amount the Foundation spent relative to the amount it
managed to raise was unacceptably high. Higher than the 35% recommended by the CRA.
And much higher than the 13% achieved by the West Vancouver Community Foundation.

7.0 Should this be news to the Library or Foundation?

Given that the Foundation has had its 2009 financial report since March of 2010 so the
dismal performance of the Foundation (spending 79% - 105%, depending on whose
analysis you use) of donations on overhead (when the benchmark set by the Canada
Revenue Agency is less than 35%) should not be a total surprise.
First time this has been raised? Hardly! As the attached extract from the WVML Board
minutes from 2000 show: “There were concerns expressed on growing expenses of the
Foundation operations.”3

1. Nicole Brown, Chair, West Vancouver Memorial Library Foundation, quoted in the North Shore
News, January 26, 2011 (http://www.nsnews.com/Library+foundation+numbers+black/
4170269/story.html)
2. Marcia Bergen, Chair, West Vancouver Memorial Library, quoted in Ibid.
3. Minutes of the West Vancouver Memorial Library Board, October 18, 2000, page. 6, item 7 (b)
(WVML Call Number R 027.4 WES v.4)

Fundraising Efficiency of the WVML Foundation 2009 6 of 6

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Charities and Schedule 6: Detailed Financial Information - WEST

Giving
Registered Charity
VANCOUVER MEMORIAL LIBRARY FOUNDATION
Information Return
Was the financial information reported below prepared on an 4020 ACCRUAL
Amendment accrual or cash basis?
New search
Statement of financial position

Please show figures to the nearest single dollar. See the Key Terms and
Definitions for a definition of the terms used.

Assets:

Cash, bank accounts, and short-term investments 4100 $ 23,988

Amounts receivable from non-arm's length parties 4110

Amounts receivable from all others 4120 $ 1,739

Investments in non-arm's length parties 4130 $ 2,955,924

Long-term investments 4140

Inventories 4150

Land and buildings in Canada 4155

Other capital assets in Canada 4160 $ 600

Capital assets outside Canada 4165

Accumulated amortization of capital assets 4166

Other assets 4170

Total assets (add lines 4100 to 4170) 4200 $ 2,982,251

Amount included in lines 4150, 4155, 4160, 4165 and 4250

4170 not used in charitable programs

Liabilities:

Accounts payable and accrued liabilities 4300 $ 3,385

Deferred revenue 4310

Amounts owing to non-arm's length parties 4320
Other liabilities 4330

Total liabilities (add lines 4300 to 4330) 4350 $ 3,385

Statement of operations
Revenue:
Total eligible amount of all gifts for which the charity issued 4500 $ 59,414
tax receipts
For all tax-receipted gifts received during the fiscal period
please provide:

Total eligible amount of tax-receipted tuition fees 5610

Total eligible amount of tax-receipted enduring property 5640
Total amount received from other registered charities 4510
(excluding specified gifts and enduring property)

Total specified gifts from other registered charities 4520

Total enduring property from other registered charities 4525

Total other gifts received for which a tax receipt 4530

was notissued by the charity
Total revenue received from federal government 4540

Total revenue received from provincial/territorial 4550

governments
Total revenue received from municipal/regional governments 4560

Total revenue received from all sources outside Canada 4575

Total interest and investment income received or earned 4580 $ 481,208
Gross proceeds from disposition of assets 4590

Net proceeds from disposition of assets (show a negative 4600

amount with brackets)
Gross income received from rental of land and/or buildings 4610

Non tax-receipted revenues received for memberships, dues, 4620

and association fees
Total non tax-receipted revenue from fundraising 4630 $ 67,439

Total revenue from sale of goods and services (except to 4640

government)
Other revenue not already included in the amounts above 4650

Specify type(s) of revenue included in the amount reported 4655

at 4650 (e.g., dividends)

Total revenue (add line 4500, 4510 to 4580, and 4600 4700 $ 608,061
to 4650)

Expenditures:
Advertising and promotion 4800
Travel and vehicle expenses 4810
Interest and bank charges 4820 $ 1,865
Licenses, memberships, and dues 4830

Office supplies and expenses 4840 $ 11,205

Occupancy costs 4850
Professional and consulting fees 4860 $ 46,394
Education and training for staff and volunteers 4870

Total expenditure on all compensation (enter the amount 4880 $ 21,540

reported at line 390 in Schedule 3 if applicable)
Fair market value of all donated good used in charitable 4890
programs
Total cost of all purchased supplies and assets 4891
Amortization of capitalized assets 4900 $ 4,824
Total expenditure for research grants and scholarships as 4910
part of charitable programs
Other expenditures not included in the amounts above 4920 $ 47,725
Specify type(s) of expenditures included in the amount 4930 postage,stationery
reported at 4920
Total expenditures before gifts to qualified donees (add 4950 $ 133,553
lines 4800 to 4920)

Lines 5000 to 5030 represent a breakdown of the expenditures on lines 4800

to 4920. The total of lines 5000 to 5030 should equal line 4950.

Total expenditures on charitable programs 5000

Total expenditures on management and administration 5010 $ 86,807
Total expenditures on fundraising 5020 $ 46,746
Total expenditures on political activities, inside or outside 5030
Canada
Total other expenditures included in line 4950 5040
Total amount of gifts (excluding enduring property and 5050 $ 800,857
specified gifts) made to all qualified donees
Total amount of enduring property transferred to qualified 5060
donees (excluding specified gifts of enduring property)
Total amount of specified gifts made to qualified donees 5070
(including specified gifts of enduring property)

Total expenditures (add amount from line 4950 and the 5100 $ 934,410
amounts from lines 5050, 5060 and 5070)

Other financial information

Permission to accumulate property: Only registered
charities that have written permission to accumulate should
complete this question.
• Enter the amount accumulated for the fiscal period, 5500
including income earned on accumulated funds
• Enter the amount disbursed for the fiscal period for the 5510
specified purpose we have permitted
• Enter the amount deemed to be a tax-receipted gift for 5520
the fiscal period

Enduring property and the capital gains pool

From the amount reported at line 4950, what is the fair 5710
 market value of all enduring property spent during the fiscal
period?
Enter the capital gains from the disposition of enduring 5720
property in the fiscal period. Do not enter an amount
reflecting a capital loss or a negative amount in this field.

Is the charity claiming an amount that is less than the 5730

maximum capital gains reduction?
If yes, enter the amount from line 11 of Form T1259,Capital 5740
Gains and Disbursement Quota Worksheet
If the charity has received approval from the Charities 5750
Directorate to make a special reduction to its disbursement
quota, enter the amount for the fiscal period.

Property not used in charitable activities

Enter the value of property not used for charitable activities
or administration during:
• The 24 months before the beginning of the fiscal 5900
period
• The 24 months before the end of the fiscal period 5910

Contact us

Date Modified: 2008-11-10 Important Notices

Top of Page
WEST VANCOUVER MEMORIAL LIBRARY FOUNDATION

AUDITORS’ REPORT

FINANCIAL STATEMENTS

DECEMBER 31, 2009

 AUDITORS' REPORT

TO THE MEMBERS OF THE

WEST VANCOUVER MEMORIAL LIBRARY FOUNDATION

W E HAVE AUDITED THE STATEMENT OF FINANCIAL POSITION OF THE W EST VANCOUVER MEMORIAL LIBRARY
FOUNDATION AS AT DECEMBER 31, 2009 AND THE STATEMENTS OF OPERATIONS AND CHANGES IN NET
ASSETS FOR THE YEAR THEN ENDED. THESE FINANCIAL STATEMENTS ARE THE RESPONSIBILITY OF THE
FOUNDATION’S MANAGEMENT. OUR RESPONSIBILITY IS TO EXPRESS AN OPINION ON THESE FINANCIAL
STATEMENTS BASED ON OUR AUDIT .

EXCEPT AS EXPLAINED IN THE FOLLOWING PARAGRAPH, WE CONDUCTED OUR AUDIT IN ACCORDANCE WITH
CANADIAN GENERALLY ACCEPTED AUDITING STANDARDS. THOSE STANDARDS REQUIRE THAT WE PLAN AND
PERFORM AN AUDIT TO OBTAIN REASONABLE ASSURANCE AS TO WHETHER THE FINANCIAL STATEMENTS ARE
FREE FROM MATERIAL MISSTATEMENT . AN AUDIT INCLUDES EXAMINING, ON A TEST BASIS, EVIDENCE
SUPPORTING THE AMOUNTS AND DISCLOSURES IN THE FINANCIAL STATEMENTS. AN AUDIT ALSO INCLUDES
ASSESSING THE ACCOUNTING PRINCIPLES USED AND SIGNIFICANT ESTIMATES MADE BY MANAGEMENT, AS
WELL AS EVALUATING THE OVERALL FINANCIAL STATEMENT PRESENTATION.

IN COMMON WITH MANY CHARITABLE ORGANIZATIONS, THE F OUNDATION DERIVES REVENUE FROM
FUNDRAISING , THE COMPLETENESS OF WHICH IS NOT SUSCEPTIBLE TO SATISFACTORY AUDIT VERIFICATION.
ACCORDINGLY, OUR VERIFICATION OF THESE REVENUES W AS LIMITED TO THE AMOUNTS RECORDED IN THE
RECORDS OF THE FOUNDATION AND WE WERE NOT ABLE TO DETERMINE WHETHER ANY ADJUSTMENTS MIGHT
BE NECESSARY TO FUNDRAISING REVENUE, EXCESS OF REVENUE OVER EXPENDITURES, ASSETS, AND EQUITY.

IN OUR OPINION, EXCEPT FOR THE EFFECT OF ADJUSTMENTS, IF ANY, WHICH WE MIGHT HAVE DETERMINED TO
BE NECESSARY HAD WE BEEN ABLE TO SATISFY OURSELVES CONCERNING THE COMPLETENESS OF THE
FUNDRAISING REVENUE REFERRED TO IN THE PRECEDING PARAGRAPH, THESE FINANCIAL STATEMENTS
PRESENT FAIRLY, IN ALL MATERIAL RESPECTS, THE FINANCIAL POSITION OF THE FOUNDATION AS AT
DECEMBER 31, 2009, AND THE RESULTS OF ITS OPERATIONS AND THE CHANGES IN ITS NET ASSETS FOR THE
YEAR THEN ENDED IN ACCORDANCE WITH CANADIAN GENERALLY ACCEPTED ACCOUNTING PRINCIPLES
APPLIED ON A BASIS CONSISTENT WITH THAT OF THE PRECEDING YEAR.

WEST VANCOUVER, B.C.

MARCH 16, 2010 CHARTERED ACCOUNTANTS

WEST VANCOUVER MEMORIAL LIBRARY FOUNDATION
STATEMENT OF FINANCIAL POSITION
DECEMBER 31, 2009
NOTE 2009 2008
ASSETS

CURRENT
CASH $ 23,988 206,300
ACCOUNTS RECEIVABLE - 23,699
PREPAID EXPENSES - 4,278
GST RECOVERABLE 1,739 6,797
25,727 241,074

INVESTMENTS 3 2,955,924 3,047,663

PROPERTY AND EQUIPMENT, NET OF AMORTIZATION 4 600 5,425

$ 2,982,251 3,294,162

LIABILITIES

CURRENT
ACCOUNTS PAYABLE $ 3,385 2,866

NET ASSETS
NET ASSETS RESTRICTED BY SPECIFIC BEQUESTS 5 1,705,271 1,879,683
NET ASSETS RESTRICTED FOR ENDOWMENT PURPOSES 5 1,138,179 1,024,369
LIBRARY FUNDS 5, 8 65,937 59,114
UNRESTRICTED NET ASSETS 5 69,479 328,130
2,978,866 3,291,296

$ 2,982,251 3,294,162

APPROVED ON BEHALF OF THE BOARD:

CHAIRPERSON, NICOLE BROWN TREASURER, IAN PETRIE

WEST VANCOUVER MEMORIAL LIBRARY FOUNDATION
STATEMENT OF OPERATIONS AND FUND BALANCES
FOR THE YEAR ENDED DECEMBER 31, 2009
NOTE
UNRESTRICTED RESTRICTED
GENERAL ESTATES AND LIBRARY TOTAL TOTAL
FUND CROQUET ENDOWMENTS FUND 2009 2008

REVENUES
DONATIONS $ 58,814 68,039 - 13,918 140,771 353,178

EXPENSES
FUNDRAISING 19,220 46,746 - - 65,966 62,440

ADMINISTRATIVE:
OFFICE & GENERAL 34,610 - - - 34,610 21,752
PROFESSIONAL FEES 5,092 - - - 5,092 3,513
INSURANCE 1,358 - - - 1,358 1,359
AMORTIZATION 4,824 - - - 4,824 4,730
45,884 46,746 - - 45,884 31,354
65,104 46,746 - - 111,850 93,794
NET REVENUE FROM OPERATIONS (6,290) 21,293 - 13,918 28,921 259,384

INVESTMENT INCOME (LOSS) 41,014 - 440,194 - 481,208 (567,824)

LESS: INVESTMENT MANAGEMENT FEES 1,813 - 19,890 - 21,703 10,051
NET REVENUE (LOSS) FROM INVESTMENTS 39,201 - 420,304 - 459,505 (577,875)

NET REVENUE (LOSS) 32,911 21,293 420,304 13,918 488,426 (318,491)

21,293 (21,293) - - - -
54,204 - 420,304 13,918 488,426 (318,491)
DISTRIBUTION TO THE LIBRARY 6 (388,752) - (405,010) (7,095) (800,857) (65,665)

EXCESS (DEFICIENCY) OF REVENUES OVER

EXPENSES FOR THE YEAR $ (334,548) - 15,294 6,823 (312,431) (384,156)
WEST VANCOUVER MEMORIAL LIBRARY FOUNDATION
STATEMENT OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2009
REVISED
BALANCE BALANCE REVENUE EXPENDITURES BALANCE
BEGINNING (NOTE 9) BEGINNING AND MANAGEMENT AND END
OF YEAR ADJUSTMENT OF YEAR INCREASES FEES DECREASES OF YEAR

NET ASSETS RESTRICTED BY SPECIFIC BEQUESTS:

W ATT ESTATE BEQUEST $ 1,133 - 1,133 - - - 1,133

CRONK ESTATE 40,000 - 40,000 - - - 40,000
GREER ESTATE 10,000 - 10,000 - - - 10,000
PERSIAN LANGUAGE
FUND 19,729 - 19,729 (1,888) 17,841

W ELSH ESTATE 1,370,469 (46,878) 1,323,591 211,393 (9,551) (372,436) 1,152,997

OPTHOLT ESTATE 2,000 - 2,000 - - - 2,000
PATRICK ESTATE 436,352 (18,826) 417,526 66,792 (3,018) - 481,300
1,879,683 - 1,813,979 278,185 (12,569) (374,324) 1,705,271

NET ASSETS INTERNALLY RESTRICTED FOR ENDOWMENT PURPOSES:

FOUNDATION ENDOWMENT 95,316 - 95,316 15,045 (680) - 109,681

W ELSH ESTATE 460,636 13,939 474,575 75,891 (3,429) (19,540) 527,497
PATRICK ESTATE 468,417 (24,132) 444,285 71,073 (3,211) (11,146) 501,001
1,024,369 - 1,014,176 162,009 (7,320) (30,686) 1,138,179

LIBRARY FUNDS: 59,114 - 59,114 13,918 - (7,095) 65,937

NET ASSETS UNRESTRICTED: 328,130 75,897 404,027 56,017 (1,813) (388,752) 69,479

TOTAL NET ASSETS: 3,291,296 - 3,291,296 510,129 (21,702) (800,857) 2,978,866

WEST VANCOUVER MEMORIAL LIBRARY FOUNDATION
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2009

1. NATURE OF OPERATIONS

THE FOUNDATION WAS CONSTITUTED UNDER THE SOCIETY ACT OF BRITISH COLUMBIA ON JULY 24,
1986. THE PURPOSES OF THE FOUNDATION ARE GENERALLY:

(a) TO FACILITATE AND FUND THE PROVISION OF MATERIALS AND SERVICES SUITABLE FOR A PUBLIC
LIBRARY IN THE MUNICIPALITY OF W EST VANCOUVER; AND,

(b) TO RECEIVE, INVEST , AND ADMINISTER BEQUESTS, ENDOWMENTS, TRUSTS, AND OTHER FINANCIAL
PROGRAMS AND INVESTMENTS, THE PURPOSE OF W HICH IS TO FUND THE ACTIVITIES OF THE W EST
VANCOUVER MEMORIAL LIBRARY.

(c) THE FOUNDATION IS NOT SUBJECT TO INCOME TAX PURSUANT TO THE INCOME TAX ACT (CANADA).

2. SIGNIFICANT ACCOUNTING POLICIES

(a) REVENUES AND EXPENDITURES

REVENUES AND EXPENDITURES ARE ACCOUNTED FOR ON THE ACCRUAL BASIS EXCEPT FOR
DONATIONS, WHICH ARE RECORDED WHEN RECEIVED.

(b) DONATED SERVICES

THE MEMORIAL LIBRARY FOUNDATION OF W EST VANCOUVER BENEFITS FROM DONATED SERVICES
RECEIVED IN THE FORM OF VOLUNTEER TIME FOR VARIOUS COMMITTEES AND CERTAIN OTHER
SERVICES. THE VALUE OF DONATED SERVICES IS NOT RECOGNIZED IN THESE FINANCIAL
STATEMENTS.

(c) FINANCIAL INSTRUMENTS

THE FOUNDATION’S FINANCIAL INSTRUMENTS CONSIST OF CASH, ACCOUNTS RECEIVABLE,

INVESTMENTS, AND ACCOUNTS PAYABLE. READILY MARKETABLE INVESTMENTS ARE RECORDED AT
FAIR MARKET VALUE. T HE FOUNDATION IS NOT EXPOSED TO SIGNIFICANT INTEREST, CURRENCY OR
CREDIT RISKS ARISING FROM THESE FINANCIAL INSTRUMENTS.

(d) PROPERTY AND EQUIPMENT

CAPITAL ASSETS ARE RECORDED AT COST . THE FOUNDATION PROVIDES FOR AMORTIZATION USING
THE FOLLOWING METHOD AND RATE.

BUSINESS EQUIPMENT : 30% DECLINING BALANCE

COMPUTER HARDWARE 55% DECLINING BALANCE
COMPUTER SOFTWARE 100% DECLINING BALANCE

CONTINUED…
WEST VANCOUVER MEMORIAL LIBRARY FOUNDATION
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 2009

3. INVESTMENTS
2009 2008
INVESTMENTS CONSIST OF THE FOLLOWING:

CASH AND SHORT -TERM DEPOSITS $ - 4,635

MUTUAL AND POOLED FUNDS:
LEITH W HEELER FIXED INCOME FUND 1,304,615 1,426,064
LEITH W HEELER INTERNATIONAL FUND 332,126 331,776
LEITH W HEELER MONEY MARKET FUND 13,055 30,324
LEITH W HEELER U.S. EQUITY FUND 315,652 332,622
LEITH W HEELER CANADIAN EQUITY FUND SERIES B 990,476 922,242
$ 2,955,924 3,047,663

4. PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT ARE COMPRISED OF THE FOLLOWNG:

ACCUMULATED NET BOOK
COST AMORTIZATION VALUE

OFFICE EQUIPMENT $ 1,422 1,183 239

COMPUTER HARDWARE 1,109 748 361
COMPUTER SOFTWARE 8,558 8,558 -
$11,089 10,489 600
5. RESTRICTIONS ON NET ASSETS

THE FOUNDATION HAS RESTRICTIONS IN RESPECT OF THE FOLLOWING SPECIFIC BEQUESTS FOR THE
PURPOSES STATED:

THE W ATT ESTATE BEQUEST REPRESENTS FUNDS TO BE USED FOR THE PURCHASE OF LARGE PRINT
BOOKS FOR THOSE LIBRARY PATRONS WHOSE EYESIGHT IS IMPAIRED.

THE CRONK ESTATE REPRESENTS A PERMANENT ENDOWMENT TO THE FOUNDATION THE INTEREST
OF WHICH IS AVAILABLE TO THE BOARD OF THE F OUNDATION TO UTILIZE AT THEIR DISCRETION.

THE GREER ESTATE REPRESENTS FUNDS TO BE USED FOR THE AUDIO BOOKS SERVICE FOR THE
VISUALLY IMPAIRED.

THE ROBERT L. W ELSH ESTATE FUNDS REPRESENT FUNDS TO BE USED TOWARDS THE
ENHANCEMENT OF MUSIC RESOURCES AND PROGRAMS IN THE W EST VANCOUVER MEMORIAL
LIBRARY

THE ANNA C.E. PATRICK ESTATE FUNDS REPRESENT FUNDS RECEIVED BY THE FOUNDATION TO BE
HELD AND INVESTED.

THE PERSIAN LANGUAGE FUND REPRESENTS DONATIONS RECEIVED FOR THE PURCHASE OF
PERSIAN MATERIALS FOR THE LIBRARY.

CONTINUED…
 WEST VANCOUVER MEMORIAL LIBRARY FOUNDATION
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 2009

6. DISTRIBUTION TO THE LIBRARY

2009 2008

W ELSH HALL $ 360,850 -

SPACE REORGANIZATION 354,578 2,453
W ELSH MUSIC PROGRAMMING 31,126 -
LARGE PRINT , TAPED BOOKS, BESTSELLERS,
AND OTHER BOOKS 25,658 24,877
EQUIPMENT AND FURNISHINGS 11,146 -
BOOKTOPIA 7,121 7,981
GENERAL LIBRARY MATERIAL 7,095 10,671
PERSIAN BOOKS 1,888 2,155
OTHER - 993
799,462 49,130
CAPITAL ASSET GIFTS
DONOR BOARDS 1,395 1,876
ELECTRONIC DIRECTORY - 14,659
TOTAL DISTRIBUTION TO THE LIBRARY $ 800,857 65,665

7. STATEMENT OF CASH FLOWS

A STATEMENT OF CASH FLOWS HAS NOT BEEN PREPARED AS THEY ARE READILY APPARENT .

8. LIBRARY FUNDS

LIBRARY FUNDS CONSIST OF FUNDS DERIVED FROM THE COFFEE SERVICE AS WELL AS THE SALE OF
ART.

9. ADJUSTMENTS TO FUND BALANCES

ADJUSTMENTS HAVE BEEN MADE TO CERTAIN ESTATE BALANCES.





 

 
  
 


  




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