NEADS Membership Report 2010-2012

Audited Financial Statements

NOTES TO FINANCIAL STATEMENTS

MARCH 31, 2012

1. NATURE OF ORGANIZATION

   The National Educational Association of Disabled Students/Association nationale des étudiant(e) s handicapé(e)s au niveau post-secondaire is a consumer organization with a mandate to encourage self-empowerment of post-secondary students with disabilities. The Association advocates for increased accessibility at all levels so that students with disabilities may gain access to a college or university education, which is the right of everyone. The Association provides extensive information on services at the National level for students with disabilities, publishes a newsletter, and conducts research on issues of importance to its membership.

   The Association is incorporated under the Canada Corporations Act as a not-for-profit organization and is a registered charity under the Income Tax Act.

2. SIGNIFICANT ACCOUNTING POLICIES

   1. Basis of Accounting

      Revenue and expenditure are recorded on the accrual basis, whereby they are reflected in the accounts in the period in which they have been earned and incurred respectively, whether or not such transactions have been finally settled by the receipt or payment of money.

   2. Revenue Recognition

      The Association follows the deferral method of accounting for contributions. Restricted contributions are recognized as revenue in the year in which related expenses are incurred. Unrestricted contributions are recognized as revenue when received or receivable if the amount can be reasonably estimated and collection is reasonably assured.

   3. Short-Term Deposits

      Short-term deposits are classified as held for trading and are recorded at fair value. Fair values are determined by reference to published quotations in an active market at year end.

   4. Capital Assets

      The Association’s investment in capital assets is nominal, and accordingly, capital assets are expensed in the year in which they are acquired.

   5. Use of Estimates

      The preparation of financial statements in conformity with Canadian generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenditure and disclosure of contingent assets and liabilities. Actual results could differ from those estimates.

   6. Volunteer Services

      The Association receives the services of many volunteers, the value of which cannot be reasonably estimated. Therefore, no representation of this expenditure has been included in these financial statements.

3. FINANCIAL INSTRUMENTS

   The Association’s financial instruments consist of cash, accounts receivable, short-term deposits, and accounts payable and accrued liabilities. The fair values of these financial instruments approximate their carrying values, unless otherwise stated. It is management’s opinion that the Association is not exposed to significant interest rate, currency or credit risk arising from these financial instruments.

4. CAPITAL MANAGEMENT

   The Association considers its capital to be the balance maintained in its Members’ Surplus. The primary objective of the Association is to invest its capital in a manner that will allow it to continue as a going concern and comply with its stated objectives. Capital is invested under the direction of the Board of Directors of the Association with the objective of providing a reasonable rate of return, minimizing risk and ensuring adequate liquid investments are on hand for current cash flow requirements. The Association is not subject to any externally imposed requirements of its capital.

5. STATEMENT OF CASH FLOWS

   This statement has not been prepared as all of the relevant information is apparent from the other financial statements.

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