Retired Teachers Association of Manitoba Inc. - 2025 draft Financial Statement

RETIRED TEACHERS’ ASSOCIATION OF MANITOBA INC.

FINANCIAL STATEMENTS

JUNE 30, 2025

CHARTERED PROFESSIONAL ACCOUNTANTS

INDEPENDENT AUDITOR'S REPORT

To the Directors of Retired Teachers’ Association of Manitoba Inc.:

Opinion

We have audited the financial statements of Retired Teachers’ Association of Manitoba Inc.(the Organization), which comprise the statement of financial position as at June 30, 2025, and the statement of operations and changes in net assets and statement of cash flows the year then ended, and a summary of significant accounting policies and other explanatory information.

In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Organization as at June 30, 2025, and its financial performance and its cash flows for the year then ended in accordance with Canadian accounting standards for not-for-profit organizations.

Basis for Opinion

We conducted our audit in accordance with Canadian generally accepted auditing standards. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Organization in accordance with the ethical requirements that are relevant to our audit of the financial statements in Canada, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Emphasis of Matter - Restated Comparative Information

We draw attention to Note 7 to the financial statements, which explains that certain comparative information for the year ended June 30, 2024 has been restated. Our opinion is not modified in respect of this matter.

The financial statements for the year ended June 30, 2024 excluding the adjustments that were applied to restate certain comparative information were audited by another auditor who expressed an unmodified opinion on those financial statements on October 17, 2024.

As part of our audit of the financial statements for the year ended June 30, 2025, we also audited the adjustments applied to restate certain comparative information presented. In our opinion, such adjustments are appropriate and have been properly applied.

Other than with respect to the adjustments that were applied to restate certain comparative information, we were not engaged to audit, review, or apply any procedures to the financial statements for the year ended June 30, 2024. Accordingly, we do no express an opinion or any other form of assurance on those financial statements as a whole.

Responsibilities of Management and Those Charged with Governance for the Financial Statements

Management is responsible for the preparation and fair presentation of the financial statements in accordance with the Canadian accounting standards for not-for-profit organizations, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is responsible for assessing the Organization’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Organization or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Organization’s financial reporting process.

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Canadian generally accepted auditing standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Organization’s internal controls.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Organization’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Organization to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

DRAFT

Chartered Professional Accountants

November 19, 2025 Winnipeg, Canada

For this communication, together with the work done to prepare this communication and for the opinions we have formed, if any, we accept and assume responsibility only to the addressee of this communication, as specified in our letter of engagement.

RETIRED TEACHERS' ASSOCIATION OF MANITOBA INC.

RETIRED TEACHERS' ASSOCIATION OF MANITOBA INC. STATEMENT OF CASH FLOWS FOR THE YEAR ENDED JUNE 30

20252024

Cash flow from operating activities: Cash received from members and others$528,491 $482,778 Cash paid to suppliers and employees(525,805)(520,531) 2,686 (37,753) Cash flow from investing activities:

NOTES TO FINANCIAL STATEMENTS

FOR THE YEAR ENDED JUNE 30, 2025

1. Purpose of organization:

Retired Teachers’ Association of Manitoba Inc. was incorporated on October 24, 1989 under the laws of Manitoba Corporations Act to promote the economic and social interest of its members and other retired teachers in Manitoba. Under the Income Tax Act, the corporation qualifies as a not-for-profit organization and is exempt from income tax under Section 149 (1).

2. Significant accounting policies:

The financial statements have been prepared in accordance with Canadian accounting standards for notfor-profit organizations. Outlined below are those policies considered particularly significant for the organization.

a) Accounting estimates-

The preparation of financial statements in accordance with Canadian accounting standards for notfor-profit organizations requires management to make estimates and judgments that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reported period.

Accounting estimates are included in financial statements to approximate the effect of past transactions or events, or to approximate the present status of an asset or liability. It is possible that changes in future economic conditions could require changes in the recognized amounts for accounting estimates. These estimates are reviewed periodically, and, as adjustments become necessary, they are reported in the period in which they became known.

Significant areas of estimation by management include the impairment of non-financial assets, the useful lives of capital assets and the fair value of financial instruments.

Management bases their judgments, estimates and assumptions on factors they believe to be reasonable in the circumstances, but which may be inherently uncertain and unpredictable.

b) Financial instruments-

Financial instruments are measured at fair value on initial recognition adjusted by, in the case of a financial instrument that will not be measured subsequently at fair value, financing fees and transaction costs that are directly attributable to its origination, acquisition, issuance or assumption. Transaction costs related to financial instruments that will be measured subsequently at fair value are recognized in difference between revenue and expenses for the period incurred.

In subsequent periods, investments in equity instruments that are quoted in an active market and certain derivative contracts are measured at fair value without any adjustment for transaction costs that may incur on sale or other disposal. The Organization may elect to measure any financial instrument at fair value when the asset or liability is first recognized or for equity instruments previously measured at fair value when the equity instrument ceases to be quoted in an active market. Other investments in equity instruments are measured at cost less any reduction for impairments. All other financial instruments are measured at amortized cost. Amortized cost is the amount at which the financial instrument is measured at initial recognition less principal repayments, plus or minus the cumulative effect of any difference between that initial amount and the maturity amount, and minus any reduction for impairment.

NOTES TO FINANCIAL STATEMENTS

FOR THE YEAR ENDED JUNE 30, 2025

2. Significant accounting policies (continued):

b) Financial instruments (continued)-

The Organization measures all its financial instruments measured at amortized cost.

The Organization assesses impairment of all its financial assets, except those classified at fair value. Management considers whether there has been a breach in contract, such as a default or delinquency in interest or principal payments in determining whether objective evidence of impairment exists. Impairment is measured as the difference between the asset’s carrying value and its fair value. Impairment is included in difference between revenue and expenses.

c) Revenue recognition-

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

Revenue from memberships, event hosting and entertainment, advertising, administrative service allowance and miscellaneous are recognized when there is persuasive evidence that an arrangement exists, the price is determinable and collection is reasonably assured. Interest is recognized on a time proportion basis.

d) Contributed services-

Contributed materials and services that would otherwise be paid for by the Organization are recorded at fair value at the date of contribution.

Volunteers contribute time to assist the Organization in carrying out its service delivery activities. Because of the difficulty of determining their fair value, contributed services are not recognized in the financial statements.

e) Capital assets-

Capital assets are recorded at cost and amortized over their estimated useful lives, except for contributed assets which are recorded at fair market value at the time of the contribution plus all costs directly attributable to the acquisition. This requires estimation of the useful life of the asset and its salvage and residual value. When a capital asset is impaired, the excess of its net carrying amount over the asset’s fair value or replacement cost is recognized as an expense. As is true for all accounting estimates, it is possible that changes in future conditions could require changes in the recognized amounts for accounting estimates.

Capital assets are amortized on straight-line basis at the following rates:

NOTES

TO FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30, 2025

3. Term deposits:

The Organization has term deposits bear interest between 1.65% and 4.75% (2024 - 1.65% and 4.75%) and maturing April 2026 to April 2028 (2024 - April 2026 to April 2028).

4. The Winnipeg Foundation agreement:

The Organization has entered into an agreement with the Winnipeg Foundation for the irrecoverable transfer of investments to endowment funds held in the trust at the Winnipeg Foundation. The Winnipeg Foundation will preserve the capital and will distribute income generated thereon, to the Organization in perpetuity by way of educational awards to deserving students selected by the Organization annually. The capital is not available to the Organization and as such is not reflected as an asset of the Organization. The investments with the Winnipeg Foundation are as follows: 20252024 Balance,

5. Capital assets:

6. Commitments:

The Organization has a lease agreement for the property at 1780 Wellington Avenue for the five year period ended October 31, 2026.

NOTES TO FINANCIAL STATEMENTS

FOR THE YEAR ENDED JUNE 30, 2025

7. Prior period restatement:

During the year ended June 30, 2025, it was determined that some membership fees were not recorded in the appropriate period in the prior years. The balance of net assets as at July 1, 2024 has been increased by $19 representing the cumulative amount by which the difference between revenue and expenses have been overstated.

Previously reported difference between revenue and expenses for the year ended June 30, 2024 was overstated by $19.

The following statement of financial position accounts were restated at June 30, 2024:

As originally statedAdjustment Restated amount

There was no impact on the statement of cash flows as a result of the restatement. Certain comparative information has been reclassified to conform to current period presentation.

8. Risk management:

Management’s risk management policies are typically performed as a part of the overall management of the Organization’s operations. Management is aware of risks related to these objectives through direct personal involvement with employees and outside parties. In the normal course of its business, the Organization is exposed to a number of risks that can affect its operating performance. Management’s close involvement in operations helps identify risks and variations from expectations. The Organization has not designated transactions as hedging transactions to manage risk. As a part of the overall operation of the Organization, management considers the avoidance of undue concentrations of risk. These risks include, and the actions taken to manage them, are as follows:

Liquidity risk-

Liquidity risk is the risk that the Organization cannot meet its financial obligations associated with financial liabilities in full. The Organization's main sources of liquidity are its operations and external contributions. The funds are primarily used to finance working capital and capital expenditure requirements and are adequate to meet the Organization’s financial obligations associated with financial liabilities.

NOTES TO FINANCIAL STATEMENTS

FOR THE YEAR ENDED JUNE 30, 2025

8. Risk management (continued):

Interest rate risk-

Interest rate risk is the risk that changes in market interest rates may have an effect on the cash flows associated with some financial assets and liabilities, known as interest rate cash flow risk, or on the fair value of other financial assets or liabilities, known as interest rate price risk. Investing in fixed rate marketable securities with longer durations minimizes interest rate price risk.

Credit risk-

Credit risk arises from the possibility that debtors may be unable to fulfill their commitments. For a financial asset, this is typically the gross carrying amount, net of any amounts offset and any impairment losses. The Organization has credit policies to address credit risk on accounts receivable, which may include the analysis of the financial position of the debtor and review of credit limits. The Organization also may review credit history before establishing credit and reviews credit performance. An allowance for doubtful accounts or other impairment provisions are established based upon factors surrounding credit risk, historical trends and other information. No allowance for doubtful accounts has been recorded.