Skate Canada Annual Budget and Finance Report Analysis

2019/20 Skate Canada Budget Finance Report May 24 2019 Ice Summit Ottawa Mary Ellen McDonald, Senior Director Operations

Annual Budget Agenda Process Key Assumptions Income Statement Revenue Expenses 2018/19 Audited Financial Statements Questions

Annual Budget Process Timeline Budget developed with department leads in October 2018 Strategic Plan imperatives, deliverables and key metrics were used in development of assumptions, parameters and programs. Management forecast for the year ended 2018/19 was also executed at this time and used in development of assumptions and parameters. Budget assumptions and parameters provided to FERM in November 2018 Budget revisions based on additional information in January 2019 and the 2019/20 MD&A (draft budget) was prepared and presented to FERM and Board Budget recommended for approval by FERM March 14 2019 Budget approved by Skate Canada Board of Directors April 23 2019

Annual Budget Key Assumptions - Revenue Registrant and Member Increase of 1.0% or 1,500 registrants Increase of 1.0% or 55 coaches No change in Skating Schools and Clubs Increase from $32.00 to $40.00 for registrant fee Test Revenue No change to fees

Annual Budget Key Assumptions - Revenue Government Funding Own The Podium (OTP) unchanged from 2018/19 Core funding remained unchanged from 2018/19 Sponsorship Consistent sponsors from prior year Change in CTC contract terms results in decrease of $350K Events Skate Canada hosted the GP Final event and Junior Grand Prix in 2018 Revenue from Skate Canada hosted events remains unchanged in 2019/20

Annual Budget Key Assumptions - Expenses Staff Costs Fully staffed as at April 1 Annual average wage adjustment of 2.5% Events Skate Canada hosted the GP Final event and Junior Grand Prix in 2018 Expenses from Skate Canada hosted events remains unchanged in 2019/20

Revenue Account 2019/2020 Budget 2018/2019Actuals Change Membership 8,182 6,763 1,419 Test Fees 1,094 1,204 90 Government 3,003 2,937 66 Sponsorship 1,166 1,482 (316) Events 3,309 7,052 (3,743) Safe Sport 574 581 (7) Value in Kind 18 176 (158) Merchandising 135 121 14 Other 516 695 (179) TOTAL 17,997 21,011 (3,014)

Expenses Account 2019/2020 Budget 2018/2019 Actuals Change G&A 1,619 1,816 (197) HR 4,542 4,360 182 Professional Fees 1,024 715 309 Travel & Living 801 763 38 Events 3,482 6,732 (3,250) HP Comp Expense 1,168 1,023 145 Stakeholder Training 379 302 77 Advertising 242 248 (6) Grants 5,104 4,313 129 791 Other 175 46 Total 18,536 20,402 (1,866)

Annual Budget Risks and Opportunities Risks Enrolment of youth in sports is provided by disposal family income so any weakening of economy could have a negative impact on growth

2018/2019 Budget to Actuals Actual Budget Variance Revenue 22 203 506 20 563 010 1 640 496 160 613 Expense 20 401 514 20 562 127 883 Profit 1 801 992 1 801 109

Finance Report: Audited Financial Statements, For the year ended March 31, 2019

Auditors April 23rd - 26th : On-Site audit work May 15th : FERM Committee reviews audited financial statements May 23rd: Board reviews audited financial statements

Auditors Report Opinion In our opinion, the financial statements present fairly, in all material respects, the financial position of Skate Canada as at March 31, 2019 and the results of its operations and its cash flows for the year then ended in accordance with Canadian accounting standards for not- for-profit organizations.

Statement of Financial Position 2019 $ 2018 $ ASSETS Current assets Cash Accounts receivable Unbilled contract revenue Prepaid expenses Skate Canada Skater Trust Fund 1,208,699 1,225,389 480,119 857,350 152,060 3,923,617 948,623 1,179,641 646,911 426,429 179,905 3,381,509 Note 3 Investments Note 4 21,536,556 20,489,799 Capital assets Note 5 613,565 529,376 26,073,738 24,400,684

Statement of Financial Position LIABILITIES AND NET ASSETS Current liabilities Accounts payable and accrued liabilities Deferred revenue Skate Canada Skater Trust Fund Note 6 1,149,959 333,586 152,060 1,635,605 1,193,564 391,073 179,905 1,764,542 Note 3 Net assets Unrestricted Internally Restricted Externally restricted Endowment 24,143,443 12,413,908 9,927,544 115,829 178,861 22,636,142 - 115,829 178,861 24,438,133 26,073,738 24,400,684 Commitments Note 10

Statement of Operations - Revenue 2019 2018 $ $ Revenue Membership Test fees Events Merchandising Government and other grants Sponsorship Investment income (note 4) Safe Sport Other Strategic planning (note 8) 22,203,505 6,763,016 1,203,936 7,052,458 120,597 2,937,437 1,628,272 1,200,037 581,469 716,283 6,610,971 1,170,802 3,751,460 130,293 2,878,623 1,349,247 631,346 566,814 651,391 79,308 17,820,255 -

Statement of Operations - Expenses Expense Section grants Athlete grants Events Agent fees and advertising Investment fees and bank charges Salaries, benefits and professional development Professional fees and contracted services Facilities Travel and living Technology and subscriptions Office General Amortization Strategic planning (note 8) 3,611,034 702,005 6,732,013 247,938 195,087 4,359,644 941,883 775,817 2,047,374 373,148 59,595 226,836 129,140 3,528,230 1,046,914 3,508,505 267,245 182,496 4,084,797 979,524 791,026 1,944,809 302,930 52,270 306,607 150,400 79,308 - 20,401,514 17,225,061 Net revenue for the year 1,801,991 595,194

2018/19 Event Statements Revenue Expense Profit ACI 247,582 242,114 5,468 SCI 1,600,863 1,186,236 414,628 Challenge 348,836 368,763 (19,928) Nationals 562,668 858,569 (295,901) Synchro Nationals 153,430 258,254 (104,824) Domestic Events 2,913,379 2,913,935 (556) Worlds 585,149 585,149 - JRGP4 342,685 364,486 (21,801) GP Final 3,044,114 2,578,683 465,430 Other Events 3,971,948 3,528,319 443,629 Total Event Spend 6,885,327 6,442,254 443,073

Final Comments Copies available online of: Audited Financial Statements Financial Statement Presentation Questions?: mmcdonald@skatecanada.ca