WoodGreenRedDoorFamilyShelter
March31,2025
IndependentAuditor'sReport
DoaneGrantThorntonLLP 11thFloor 200KingStreetWest, Toronto,ON M5H3T4
T+14163660100 F+14163604949
TotheMembersof WoodGreenRedDoorFamilyShelter
Qualifiedopinion
WehaveauditedthefinancialstatementsofWoodGreenRedDoorFamilyShelter("RedDoor"),which comprisethestatementoffinancialpositionasatMarch31,2025,andthestatementsofoperations, changesinnetassets,andcashflowsfortheyearthenended,andnotestothefinancialstatements, includingasummaryofsignificantaccountingpolicies.
Inouropinion,exceptfortheeffectsofthematterdescribedintheBasisforqualifiedopinionsectionof ourreport,theaccompanyingfinancialstatementspresentfairly,inallmaterialrespects,thefinancial positionofRedDoorasatMarch31,2025,anditsresultsofoperationsanditscashflowsfortheyear thenendedinaccordancewithCanadianaccountingstandardsfornot-for-profitorganizations.
Basisforqualifiedopinion
Incommonwithmanynot-for-profitorganizations,RedDoorderivesrevenuefromfundraisingactivities thecompletenessofwhichisnotsusceptibletosatisfactoryauditverification.Accordingly,verificationof theserevenueswaslimitedtotheamountsrecordedintherecordsofRedDoor.Therefore,wewerenot abletodeterminewhetheranyadjustmentsmightbenecessarytofundraisingrevenue,excessof revenuesoverexpenses,andcashflowsfromoperationsfortheyearsendedMarch31,2025and 2024,currentassetsasatMarch31,2025and2024,andnetassetsasatApril1andMarch31forboth the2025and2024years.OurauditopiniononthefinancialstatementsfortheyearendedMarch31, 2024wasmodifiedaccordinglybecauseofthepossibleeffectsofthislimitationinscope.
WeconductedourauditinaccordancewithCanadiangenerallyacceptedauditingstandards.Our responsibilitiesunderthosestandardsarefurtherdescribedintheAuditor'sresponsibilitiesfortheaudit ofthefinancialstatementssectionofourreport.WeareindependentofRedDoorinaccordancewith theethicalrequirementsthatarerelevanttoourauditofthefinancialstatementsinCanada,andwe havefulfilledourotherethicalresponsibilitiesinaccordancewiththeserequirements.Webelievethat theauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourqualified opinion.
Emphasisofmatter
OurauditwasconductedforthepurposeofforminganopinionofthefinancialstatementsofRedDoor takenasawhole.Thesupplementaryinformationincludedonpage12ispresentedforthepurposesof additionalinformationandisnotarequiredpartofthefinancialstatements.Suchsupplementary informationhasbeensubjectedtotheauditingproceduresapplied,onlytotheextentnecessaryto expressanopinionontheauditofthefinancialstatementstakenasawhole.
Responsibilitiesofmanagementandthosechargedwithgovernanceforthefinancialstatements Managementisresponsibleforthepreparationandfairpresentationofthefinancialstatementsin accordancewithCanadianaccountingstandardsfornot-for-profitorganizations,andforsuchinternal controlasmanagementdeterminesisnecessarytoenablethepreparationoffinancialstatementsthat arefreefrommaterialmisstatement,whetherduetofraudorerror.
Inpreparingthefinancialstatements,managementisresponsibleforassessingRedDoor'sabilityto continueasagoingconcern,disclosing,asapplicable,mattersrelatedtogoingconcernandusingthe goingconcernbasisofaccountingunlessmanagementeitherintendstoliquidateRedDoorortocease operations,orhasnorealisticalternativebuttodoso.
ThosechargedwithgovernanceareresponsibleforoverseeingRedDoor'sfinancialreportingprocess.
Auditor’sresponsibilitiesfortheauditofthefinancialstatements
Ourobjectivesaretoobtainreasonableassuranceaboutwhetherthefinancialstatementsasawhole arefreefrommaterialmisstatement,whetherduetofraudorerror,andtoissueanauditor'sreportthat includesouropinion.Reasonableassuranceisahighlevelofassurancebutisnotaguaranteethatan auditconductedinaccordancewithCanadiangenerallyacceptedauditingstandardswillalwaysdetect amaterialmisstatementwhenitexists.Misstatementscanarisefromfraudorerrorandareconsidered materialif,individuallyorintheaggregate,theycouldreasonablybeexpectedtoinfluencethe economicdecisionsofuserstakenonthebasisofthesefinancialstatements.Aspartofanauditin accordancewithCanadiangenerallyacceptedauditingstandards,weexerciseprofessionaljudgment andmaintainprofessionalskepticismthroughouttheaudit.Wealso:
Identifyandassesstherisksofmaterialmisstatementofthefinancialstatements,whetherdueto fraudorerror,designandperformauditproceduresresponsivetothoserisks,andobtainaudit evidencethatissufficientandappropriatetoprovideabasisforouropinion.Theriskofnot detectingamaterialmisstatementresultingfromfraudishigherthanforoneresultingfromerror,as fraudmayinvolvecollusion,forgery,intentionalomissions,misrepresentations,ortheoverrideof internalcontrol.
Obtainanunderstandingofinternalcontrolrelevanttotheauditinordertodesignauditprocedures thatareappropriateinthecircumstances,butnotforthepurposeofexpressinganopinionon theeffectivenessofRedDoor'sinternalcontrol.
Evaluatetheappropriatenessofaccountingpoliciesusedandthereasonablenessofaccounting estimatesandrelateddisclosuresmadebymanagement.
Concludeontheappropriatenessofmanagement'suseofthegoingconcernbasisofaccounting and,basedontheauditevidenceobtained,whetheramaterialuncertaintyexistsrelatedtoevents orconditionsthatmaycastsignificantdoubtonRedDoor'sabilitytocontinueasagoingconcern.If weconcludethatamaterialuncertaintyexists,wearerequiredtodrawattentioninourauditor's reporttotherelateddisclosuresinthefinancialstatementsor,ifsuchdisclosuresareinadequate, tomodifyouropinion.Ourconclusionsarebasedontheauditevidenceobtaineduptothedateof ourauditor'sreport.However,futureeventsorconditionsmaycauseRedDoortoceaseto continueasagoingconcern.
Evaluatetheoverallpresentation,structureandcontentofthefinancialstatements,includingthe disclosures,andwhetherthefinancialstatementsrepresenttheunderlyingtransactionsand eventsinamannerthatachievesfairpresentation.
Wecommunicatewiththosechargedwithgovernanceregarding,amongothermatters,theplanned scopeandtimingoftheauditandsignificantauditfindings,includinganysignificantdeficienciesin internalcontrolthatweidentifyduringouraudit.
Toronto,CanadaCharteredProfessionalAccountants June19,2025LicensedPublicAccountants
WoodGreenRedDoorFamilyShelter
WoodGreenRedDoorFamilyShelter StatementofOperations
YearendedMarch31
WoodGreen
WoodGreenRedDoorFamilyShelter StatementofCashFlows
WoodGreenRedDoorFamilyShelter NotestotheFinancialStatements
March31,2025
1.Natureofoperations
WoodGreenRedDoorFamilyShelter("RedDoor")isanorganizationincorporatedunderthelawsof OntariowithoutsharecapitalandisregisteredwiththeCanadaRevenueAgencyasacharitable organizationwithinthemeaningoftheIncometaxActandisthereforeexemptfromincometaxes. ThepurposeofRedDooristoprovideemergencyshelterandothersupportservicestoabused womenandfamiliesincrisis.
TheoperationsofRedDooraredependentonthefundingitreceivesfromtheCityofTorontoand theMinistryofChildren,CommunityandSocialServices(MCCSS).
2.Significantaccountingpolicies
RedDoorfollowsAccountingStandardsforNot-for-ProfitOrganizations("ASNPO")inpreparingits financialstatements.Thesignificantaccountingpoliciesusedareasfollows:
Internallyrestrictednetassets
Fromtimetotime,theBoardofDirectorsmayinternallyrestrictnetassetsforthespecificpurposes asdescribedbelow.Theseinternallyrestrictednetassetsarenotavailableforotherpurposeswithout theapprovaloftheBoardofDirectors.
TheBoardofDirectorshasinternallyrestrictednetassetsforaScholarshipfundandaBoard designatedfundasfollows:
TheScholarshipfundwascreatedtocommemorateRedDoor's20-yearanniversaryandreflectsthe activitiesrelatedtotheprovisionoffinancialassistanceforeducationandtraining.
TheBoarddesignatedfundwascreatedtoprovideareserveoftwoweekstothreemonthsof operatingcostsforunanticipatedoperatingandcapitalexpensestominimizetheimpactonthe normaloperationsoftheBoothStreetlocation.During2024,theBoardapprovedanincreaseofan additionalamountofapproximatelyfourmonthsofoperatingandcapitalexpensesrepresentedby thecapital,operationalreserveandstaffingsupportfunds,anincreaseforplannedexpensesforRed Door’sstrategicplanninginitiativesforthefollowingthreetofiveyears,andanincreaseinthecapital fundforanticipatedexpensesrelatedtorenovationsattheVAWshelter.During2025,theBoard approvedatransferfromunrestrictednetassetstotheinternallyrestricted–Boarddesignatednet assetsequaltotheunrestrictedexcessofrevenueoverexpenses.
Revenuerecognition
RedDoorfollowsthedeferralmethodofaccountingforexternallyrestrictedgrantsanddonations whereby,externallyrestrictedgrantsanddonationsaredeferredandrecognizedasrevenueinthe yearinwhichtherelatedexpensesareincurred.Unrestrictedgrantsanddonationsarerecognized asrevenuewhenreceivedorreceivable,iftheamountcanbereasonablyestimatedandcollection isreasonablyassured.
Grantsanddonationsreceivedspecificallyforpropertyandequipmentaredeferredandrecognized asrevenueonthesamebasisastheamortizationrelatedtotheacquiredpropertyandequipment. Interestandotherrevenuearerecognizedasearned.
NotestotheFinancialStatements
March31,2025
2.Significantaccountingpolicies(continued)
Donatedmaterialsandservices
TheworkofRedDoorissupplementedbydonationsofusedclothingandhouseholditemsandthe voluntaryservicesofmembersandvolunteers.Sincethesedonatedgoodsandservicesarenot normallypurchasedandbecauseofthedifficultyofdeterminingtheirfairvalue,thevalueofdonated goodsandservicesarenotrecognizedinthesefinancialstatements.
Cashandcashequivalents
Cashandcashequivalentsconsistofcashonhand,cashondepositincharteredbanks,Guaranteed InvestmentCertificates(GICs)andinvestmentsinmutualfundswhicharereadilyconvertibleinto cash.TheGICearnsinterestat4.95%andmaturesJuly2025.
Propertyandequipment
PropertyandequipmentpurchasedbyRedDoorarerecordedatcost.Contributedpropertyand equipmentarerecordedatfairvalueatthedateofcontribution.Propertyandequipmentnotinuse arenotamortized.Amortizationisprovidedonastraight-linebasisovertheestimatedusefullivesof theassetsasfollows:
Building
Furnitureandfixtures
Officeequipment
20years
5years
5years
Humanresourcessoftwaresystem5years
Leaseholdimprovementsareamortizedover2-5yearsoroverthelifeoftherelatedlease.
Capitalassetsaretestedforimpairmentwheneventsorchangesincircumstancesindicatethatan assetmightbeimpaired.Theassetsaretestedforimpairmentbycomparingtheirnetcarryingvalue totheirfairvalueorreplacementcost.Iftheasset’sfairvalueorreplacementcostisdeterminedto belessthanitsnetcarryingvalue,theresultingimpairmentisreportedinthestatementofoperations. Anyimpairmentrecognizedisnotreversed.
Financialinstruments
RedDoorconsidersanycontractcreatingafinancialasset,liabilityorequityinstrumentasafinancial instrument,exceptincertainlimitedcircumstances.RedDooraccountsforthefollowingasfinancial instruments:
Cashandcashequivalents
Grantsreceivable
Otherreceivables
Accountspayable
Financialassetsorliabilitiesobtainedinarm’slengthtransactionsareinitiallymeasuredattheirfair value.Equityinstrumentsthatarequotedinanactivemarketaresubsequentlymeasuredatfair value.Allotherfinancialinstrumentsaresubsequentlymeasuredatcostoramortizedcost.
WoodGreenRedDoorFamilyShelter
March31,2025
3.Propertyandequipment
PursuanttoarenovationgrantagreementwithMCCSS,RedDoormustobtainapprovalfromMCCSS priortoadispositionofthelandandbuildinghousingtheabusedwomen'sshelterandprovide MCCSSwiththeproceedsondispositionofthepropertyinproportiontoMCCSS'sshareofthe approvedcostsfortherenovation.
4.Bankindebtedness
RedDoorhasademandoperatingfacilityof$150,000whichwasnotdrawnuponasatMarch31, 2025or2024.Thefacilitybearsinterestatprimeplus1%(2024-primeplus1%)andissecuredby ageneralsecurityagreement.
5.Deferredcontributions
March31,2025
6.Boarddesignatedfunds
TheBoarddesignatedfundsconsistof:
7.Financialinstruments
Transactionsinfinancialinstrumentsmayresultinanentityassumingortransferringtoanotherparty oneormoreofthefinancialrisksdescribedbelow.Therisksthatarisefromfinancialinstruments includecreditrisk,liquidityriskandmarketrisk.Financialinstrumentrisksareconsistentwiththe prioryear.
Creditrisk
Creditriskistheriskthatonepartytoafinancialinstrumentwillcauseafinanciallossfortheother partybyfailingtomeetitsfundingobligation.ThisriskismitigatedbyRedDoorthroughensuring revenueisderivedfromqualifiedsources.Theallowancefordoubtfulaccountsinrelationtoother receivablesandgrantsreceivableis$Nil(2024-$Nil).
Liquidityrisk
LiquidityriskistheriskthatRedDoorwillencounterdifficultyinmeetingtheobligationsassociated withitsfinancialliabilities.RedDoorisexposedtothisriskmainlyinrespectofitsaccountspayable. RedDoorreducesitsexposuretoliquidityriskbyensuringthatitdocumentswhenauthorized paymentsbecomedueandmaintainingadequatecashreservesandfinancingtorepaycreditors.
Marketrisk
Marketriskistheriskthatthefairvalueorexpectedfuturecashflowsofafinancialinstrumentwill fluctuatebecauseofchangesinmarketpricesorvariableinterestrates.Marketriskcomprises interestrateriskandotherpricerisk.
(i)Interestraterisk
Interestrateriskistheriskthatthefairvalueorfuturecashflowsofafinancialinstrumentwill fluctuatebecauseofchangesinmarketinterestrates.RedDoorisexposedtointerestrateprice riskwithrespecttoitsfixedincomeinvestments.ThisriskismitigatedbyRedDoorthrough investinginorutilizinginstrumentswhichhavealowsusceptibilitytosignificantfluctuationsin marketinterestrates.
(ii)Otherpricerisk
RedDoorisexposedtootherpriceriskonitsinvestmentinmutualfundsquotedinanactive marketsincechangesinmarketpricescouldresultinchangesinthefairvalueofthese instruments.
RedDoormanagesthisriskthroughacarefulselectionofinvestments.
WoodGreenRedDoorFamilyShelter NotestotheFinancialStatements
March31,2025
8.Commitments
RedDooriscommittedtoleasesforitspremisesasfollows: 2026
$99,188 2027 41,328 $140,516
OnAugust12,2022,RedDoorsignedaleaseextensionagreementtoextenditsleaseatCarlaw Avenuefor5years,throughtoAugust31,2026.
OnSeptember15,2020,RedDoorsignedaleasewiththeCityofTorontotoleasethepremisesat 189BBoothAvenuefor$2perannum.Theleasehasatermof5yearsendingin2025,withthe optiontoextendfor3additionaltermsof5yearseach.
9.Comparativeinformation
Certaincomparativeinformationhasbeenreclassifiedtoconformwiththeconsolidatedfinancial statementpresentationadoptedinthecurrentyear.
YearendedMarch31
ThisscheduleispreparedspecificallyfortheCityofToronto.Asaresult,expensesaregroupedas prescribedbytheCityofTorontoShelter,SupportandHousingAdministrativeDivisionguidelines.