Response to Letter to DWV Mayor and Council by the Chairs of the WV Memorial Library Board and Library Foundation Board

8/7/2019 Response to Letter to DWV Mayor and Council by the Chairs of the WV Memorial Library Board and Library Foundat

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March 4, 2011

1 of 1

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 WVMemorial Library Foundation, 24 Jan 2011. The letter itself is Enclosure B.

B. Summary of Findings for Council regarding LibraryExpenditures

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 fromthe 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


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March 4, 2011

1 of 4

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.


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Analysis of WVM Library Foundation Fiscal Efficiency

West Vancouver Memorial Library Expenditures 2 of 4

3.0 Analysis of WVM Library Foundation FiscalEfficiency

Given the complexity of this matter, I have prepared a separate analysis of the WVMLFefficiency (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 analysisshows, 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 differentdesign 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.

2. for clarity, the Canadian Oxford Dictionary, cited above, defines engrave as inscribe, cut, orcarve


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


5.0 Custom Carpet and Matching Furniture orShakespeare? That is the Question!

Carpet: $ 7,700Furniture: 43,561

Shakespeare DVDs:< $ 5,000

The thing that galled me even more at the board meeting that approved this purchase (and

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

rejected. The DVDs would have cost less than $5,000. The furniture cost more than

$43,000. The borders and decorative inserts in the carpet cost an additional $7,700.

6.0 Comparative Costs of Library Carrels: Custom vsStandard

Custom library carrels:$2,600 per seat.

It is also informative to compare the cost of these units with the cost of off-the-rack

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/laminated wood carrels:

$450 per seat.

The cost of an off-the-rack multi-unit library study carrel from a commercial furniture

manufacturer specializing in heavy-duty products for schools and libraries, made of steel

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 woodcarrels:

$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).


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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 totaloverhead 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


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March 4, 2011

1 of 6

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 lossas 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 Mayors 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


12/33


13/33

Analysis Using CRA Data

Fundraising Efficiency of the WVML Foundation 2009 3 of 6

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. Soobviously 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 ownwebsite, 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 organizations 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 forseveral 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.


14/33

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 compensationhave been allocated to fundraising.

The complete 2009 Financial information from the CRA is attached but the salient

numbers are as follows:

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 RevenueAgency (http://www.cra-arc.gc.ca/chrts-gvng/chrts/plcy/cps/cps-028-eng.html)

TABLE 1. WVMLF 2009 CRA Filing

Category

CRA T3010LineNumber Amount

Total eligible amount of all gifts for which the charity

issued tax receipts

4500 $ 59,414

Total non tax-receipted revenue from fundraising 4630 67,439

TOTAL FUNDRAISING 126,853

Total expenditures before gifts to qualified donees 4950 133,553


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Alternate Analysis Using Audited Financial Information


5.0 Alternate Analysis Using Audited FinancialInformation

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

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 Murchies 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 Foundations 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 Foundations 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).

TABLE 2. WVMLF 2009 Audited Financial Results

Financial Item Amount

Donations (General Fund + Croquet) $ 126,853

Murchies Coffee Sales and Art Sales 13,918

Fundraising Expenses (General Fund + Croquet) 65,966

Administrative Expenses 45,884Investment Management Expenses 21,703


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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%), excludeinvestment expenses (ratio: 93%), or also include revenue from Murchies 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 ShoreNews, 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)


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Charities and

Giving

Registered Charity

Information Return

Amendment

New search

Franais Home Contact Us Help Search canada.gc.ca

Charities and Giving > Charities Listings > Search

Schedule 6: Detailed Financial Information - WESTVANCOUVER MEMORIAL LIBRARY FOUNDATION

Was the financial information reported below prepared on an

accrual or cash basis?

4020 ACCRUAL

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

4170 not used in charitable programs

4250

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

|Skip to content Skip to institutional links

Canada Revenue Agency

www.cra.gc.ca


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Statement of operations

Revenue:

Total eligible amount of all gifts for which the charity issued

tax receipts4500 $ 59,414

For all tax-receipted gifts received during the fiscal periodplease 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

(excluding specified gifts and enduring property)

4510

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

was notissued by the charity

4530

Total revenue received from federal government 4540

Total revenue received from provincial/territorialgovernments 4550

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

amount with brackets)

4600

Gross income received from rental of land and/or buildings 4610

Non tax-receipted revenues received for memberships, dues,

and association fees4620

Total non tax-receipted revenue from fundraising 4630 $ 67,439Total revenue from sale of goods and services (except to

government)

4640

Other revenue not already included in the amounts above 4650

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

at 4650 (e.g., dividends)

4655

Total revenue (add line 4500, 4510 to 4580, and 4600

to 4650)

4700 $ 608,061

Expenditures:

Advertising and promotion 4800

Travel and vehicle expenses 4810Interest 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


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Education and training for staff and volunteers 4870

Total expenditure on all compensation (enter the amount

reported at line 390 in Schedule 3 if applicable)

4880 $ 21,540

Fair market value of all donated good used in charitable

programs4890

Total cost of all purchased supplies and assets 4891

Amortization of capitalized assets 4900 $ 4,824

Total expenditure for research grants and scholarships as

part of charitable programs

4910

Other expenditures not included in the amounts above 4920 $ 47,725

Specify type(s) of expenditures included in the amount

reported at 4920

4930 postage,stationery

Total expenditures before gifts to qualified donees (add

lines 4800 to 4920)

4950 $ 133,553

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

Canada

5030

Total other expenditures included in line 4950 5040

Total amount of gifts (excluding enduring property and

specified gifts) made to all qualified donees

5050 $ 800,857

Total amount of enduring property transferred to qualified

donees (excluding specified gifts of enduring property)

5060

Total amount of specified gifts made to qualified donees

(including specified gifts of enduring property)5070

Total expenditures (add amount from line 4950 and the

amounts from lines 5050, 5060 and 5070)

5100 $ 934,410

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,

including income earned on accumulated funds

5500

Enter the amount disbursed for the fiscal period for thespecified purpose we have permitted 5510

Enter the amount deemed to be a tax-receipted gift for

the fiscal period

5520

Enduring property and the capital gains pool

From the amount reported at line 4950, what is the fair 5710


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Date Modified: 2008-11-10

Top of Page

Important Notices

market value of all enduring property spent during the fiscal

period?

Enter the capital gains from the disposition of enduring

property in the fiscal period. Do not enter an amount

reflecting a capital loss or a negative amount in this field.

5720

Is the charity claiming an amount that is less than themaximum capital gains reduction?

5730

If yes, enter the amount from line 11 of Form T1259,Capital

Gains and Disbursement Quota Worksheet

5740

If the charity has received approval from the Charities

Directorate to make a special reduction to its disbursement

quota, enter the amount for the fiscal period.

5750

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

period

5900

The 24 months before the end of the fiscal period 5910

Contact us


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WESTVANCOUVERMEMORIAL LIBRARYFOUNDATION

AUDITORSREPORT

FINANCIAL STATEMENTS

DECEMBER31,2009


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AUDITORS'REPORT

TO THEMEMBERS OF THEWESTVANCOUVERMEMORIAL LIBRARYFOUNDATION

WE HAVE AUDITED THE STATEMENT OF FINANCIAL POSITION OF THE WEST VANCOUVER MEMORIAL LIBRARYFOUNDATION AS AT DECEMBER 31, 2009 AND THE STATEMENTS OF OPERATIONS AND CHANGES IN NETASSETS FOR THE YEAR THEN ENDED. THESE FINANCIAL STATEMENTS ARE THE RESPONSIBILITY OF THEFOUNDATIONS MANAGEMENT. OUR RESPONSIBILITY IS TO EXPRESS AN OPINION ON THESE FINANCIALSTATEMENTS BASED ON OUR AUDIT.

EXCEPT AS EXPLAINED IN THE FOLLOWING PARAGRAPH, WE CONDUCTED OUR AUDIT IN ACCORDANCE WITHCANADIAN GENERALLY ACCEPTED AUDITING STANDARDS. THOSE STANDARDS REQUIRE THAT WE PLAN ANDPERFORM 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, EVIDENCESUPPORTING THE AMOUNTS AND DISCLOSURES IN THE FINANCIAL STATEMENTS . AN AUDIT ALSO INCLUDESASSESSING THE ACCOUNTING PRINCIPLES USED AND SIGNIFICANT ESTIMATES MADE BY MANAGEMENT , ASWELL AS EVALUATING THE OVERALL FINANCIAL STATEMENT PRESENTATION.

IN COMMON WITH MANY CHARITABLE ORGANIZATIONS, THE FOUNDATION DERIVES REVENUE FROM

FUNDRAISING, THE COMPLETENESS OF WHICH IS NOT SUSCEPTIBLE TO SATISFACTORY AUDIT VERIFICATION .ACCORDINGLY, OUR VERIFICATION OF THESE REVENUES WAS LIMITED TO THE AMOUNTS RECORDED IN THERECORDS OF THE FOUNDATION AND WE WERE NOT ABLE TO DETERMINE WHETHER ANY ADJUSTMENTS MIGHTBE NECESSARY TO FUNDRAISING REVENUE, EXCESS OF REVENUE OVER EXPENDITURES, ASSETS, AND EQUITY.

IN OUROPINION, EXCEPT FOR THE EFFECT OF ADJUSTMENTS, IF ANY, WHICH WEMIGHT HAVE DETERMINED TOBE NECESSARY HAD WE BEEN ABLE TO SATISFY OURSELVES CONCERNING THE COMPLETENESS OF THE

FUNDRAISING REVENUE REFERRED TO IN THE PRECEDING PARAGRAPH, THESE FINANCIAL STATEMENTSPRESENT FAIRLY, IN ALL MATERIAL RESPECTS, THE FINANCIAL POSITION OF THE FOUNDATION AS ATDECEMBER 31,2009, AND THE RESULTS OF ITS OPERATIONS AND THE CHANGES IN ITS NET ASSETS FOR THEYEAR THEN ENDED IN ACCORDANCE WITH CANADIAN GENERALLY ACCEPTED ACCOUNTING PRINCIPLESAPPLIED ON A BASIS CONSISTENT WITH THAT OF THE PRECEDING YEAR .

WESTVANCOUVER,B.C.

MARCH16,2010 CHARTEREDACCOUNTANTS


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WESTVANCOUVERMEMORIAL LIBRARYFOUNDATIONSTATEMENT OFFINANCIAL POSITION

DECEMBER31,2009

NOTE 2009 2008ASSETS

CURRENTCASH $ 23,988 206,300ACCOUNTS RECEIVABLE - 23,699PREPAID EXPENSES - 4,278GST 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

CURRENTACCOUNTS PAYABLE $ 3,385 2,866

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

2,978,866 3,291,296

$ 2,982,251 3,294,162

APPROVED ON BEHALF OF THEBOARD:

CHAIRPERSON,NICOLEBROWN TREASURER,IANPETRIE


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STATEMENT OFOPERATIONS ANDFUNDBALANCESFOR THEYEARENDEDDECEMBER31,2009

NOTEUNRESTRICTED RESTRICTED

GENERAL ESTATES AND LIBRARY TOTAL TOTALFUND CROQUET ENDOWMENTS FUND 2009 2008

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

EXPENSESFUNDRAISING 19,220 46,746 - - 65,966 62,440

ADMINISTRATIVE:OFFICE & GENERAL 34,610 - - - 34,610 21,752PROFESSIONAL FEES 5,092 - - - 5,092 3,513INSURANCE 1,358 - - - 1,358 1,359AMORTIZATION 4,824 - - - 4,824 4,730

45,884 46,746 - - 45,884 31,35465,104 46,746 - - 111,850 93,794

NETREVENUE FROMOPERATIONS (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

NETREVENUE(LOSS)FROM INVESTMENTS 39,201 - 420,304 - 459,505 (577,875)

NETREVENUE(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 THELIBRARY 6 (388,752) - (405,010) (7,095) (800,857) (65,665)

EXCESS(DEFICIENCY)OFREVENUES OVEREXPENSES FOR THEYEAR $ (334,548) - 15,294 6,823 (312,431) (384,156)


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STATEMENT OFCHANGES INNETASSETS

FOR THEYEARENDEDDECEMBER31,2009

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:

WATT ESTATE BEQUEST $ 1,133 - 1,133 - - - 1,133

CRONK ESTATE 40,000 - 40,000 - - - 40,000

GREER ESTATE 10,000 - 10,000 - - - 10,000PERSIAN LANGUAGEFUND 19,729 - 19,729 (1,888) 17,841

WELSH 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

WELSH 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


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WESTVANCOUVERMEMORIAL LIBRARYFOUNDATIONNOTES TOFINANCIAL STATEMENTS


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 PUBLICLIBRARY IN THE MUNICIPALITY OF WEST VANCOUVER; AND,

(b) TO RECEIVE, INVEST, AND ADMINISTER BEQUESTS, ENDOWMENTS, TRUSTS, AND OTHER FINANCIALPROGRAMS AND INVESTMENTS, THE PURPOSE OF WHICH IS TO FUND THE ACTIVITIES OF THE WESTVANCOUVER 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 FORDONATIONS, WHICH ARE RECORDED WHEN RECEIVED.

(b) DONATED SERVICES

THE MEMORIAL LIBRARY FOUNDATION OF WEST VANCOUVER BENEFITS FROM DONATED SERVICES

RECEIVED IN THE FORM OF VOLUNTEER TIME FOR VARIOUS COMMITTEES AND CERTAIN OTHERSERVICES. THE VALUE OF DONATED SERVICES IS NOT RECOGNIZED IN THESE FINANCIALSTATEMENTS.

(c) FINANCIAL INSTRUMENTS

THE FOUNDATIONS FINANCIAL INSTRUMENTS CONSIST OF CASH, ACCOUNTS RECEIVABLE,INVESTMENTS, AND ACCOUNTS PAYABLE. READILY MARKETABLE INVESTMENTS ARE RECORDED ATFAIR MARKET VALUE.THE FOUNDATION IS NOT EXPOSED TO SIGNIFICANT INTEREST, CURRENCY ORCREDIT RISKS ARISING FROM THESE FINANCIAL INSTRUMENTS.

(d) PROPERTY AND EQUIPMENT

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

BUSINESS EQUIPMENT: 30%DECLINING BALANCECOMPUTER HARDWARE 55%DECLINING BALANCECOMPUTER SOFTWARE 100%DECLINING BALANCE

CONTINUED


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WESTVANCOUVERMEMORIAL LIBRARYFOUNDATIONNOTES TOFINANCIAL STATEMENTS(CONTINUED)


3.INVESTMENTS2009 2008

INVESTMENTS CONSIST OF THE FOLLOWING:

CASH AND SHORT-TERM DEPOSITS $ - 4,635MUTUAL AND POOLED FUNDS:

LEITH WHEELER FIXED INCOME FUND 1,304,615 1,426,064LEITH WHEELER INTERNATIONAL FUND 332,126 331,776LEITH WHEELER MONEY MARKET FUND 13,055 30,324LEITH WHEELER U.S.EQUITY FUND 315,652 332,622LEITH WHEELER 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 239COMPUTER HARDWARE 1,109 748 361COMPUTER SOFTWARE 8,558 8,558 -

$11,089 10,489 6005.RESTRICTIONS ON NET ASSETS

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

THE WATT ESTATE BEQUEST REPRESENTS FUNDS TO BE USED FOR THE PURCHASE OF LARGE PRINTBOOKS FOR THOSE LIBRARY PATRONS WHOSE EYESIGHT IS IMPAIRED .

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

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

THE ROBERT L.WELSH ESTATE FUNDS REPRESENT FUNDS TO BE USED TOWARDS THEENHANCEMENT OF MUSIC RESOURCES AND PROGRAMS IN THE WEST VANCOUVER MEMORIALLIBRARY

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

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

CONTINUED


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WESTVANCOUVERMEMORIAL LIBRARYFOUNDATIONNOTES TOFINANCIAL STATEMENTS(CONTINUED)


6.DISTRIBUTION TO THE LIBRARY2009 2008

WELSH HALL $ 360,850 -SPACE REORGANIZATION 354,578 2,453WELSH MUSIC PROGRAMMING 31,126 -LARGE PRINT, TAPED BOOKS, BESTSELLERS,

AND OTHER BOOKS 25,658 24,877EQUIPMENT AND FURNISHINGS 11,146 -BOOKTOPIA 7,121 7,981GENERAL LIBRARY MATERIAL 7,095 10,671

PERSIAN BOOKS 1,888 2,155OTHER - 993

799,462 49,130CAPITAL ASSET GIFTS

DONOR BOARDS 1,395 1,876ELECTRONIC 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 OFART.

9. ADJUSTMENTS TO FUND BALANCES

ADJUSTMENTS HAVE BEEN MADE TO CERTAIN ESTATE BALANCES.


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Response to Letter to DWV Mayor and Council by the Chairs of the WV Memorial Library Board and Library Foundation Board

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