1.
| Financial Statement Presentation
In some instances, comparative figures have been reclassified in order to comply with current year's presentation. |
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| 2. | Cash
The organization's bank accounts are held at one chartered bank.
Bank balances include $110,917 denominated in U.S. dollars.
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| 3. | Accounts Receivable
| 2009 | 2008 | | Fabrication cost sharing | $ 175,627
| $ 109,741
| | Other | 94 | 4,920 | | | $ 175,721
| $ 144,661
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| 4. | Capital Assets
| | 2009
| 2008
|
| Cost | Accumulated
Amortization
| Cost | Accumulated
Amortization
| Equipment
| $ 2,494,685
| $ 2,086,340
| $ 2,436,257
| $ 1,952,126
| | Other furniture and fixtures | 158,831 | 22,104
| 34,560
| 3,456
| | | 208,976
| 101,469
| 208,975
| 74,592
| | | 193,285
| 35,303
| 198,257
| 50,033
| | | 138,638
| 105,727
| 269,283
| 249,964
| | | $ 3,194,415
| $ 2,350,943
| $ 3,147,332
| $ 2,330,171
| Net book value
| | $ 843,472
| | $ 817,161 | |
| | During the year, capital assets were acquired at an aggregate cost of $397,463 for cash.
During the year, the organization wrote off $99,199 of unamortized capital assets. The bulk of this amount was $84,328 of leasehold improvements in Carruthers Hall, on premises vacated by the organization in December 2008. To compensate for this and other moving expenses, CMC negotiated a credit from Queen's University at Kingston of $125,000 against renovations at the new premises.
Capital assets are composed of capital assets owned and used by the organization at its Kingston, Ontario headquarters.
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| 5. | Natural Sciences and Engineering Research Council of Canada (NSERC)
Private sector contributors and other revenues to the organization are matched by funding from NSERC to a maximum of $48.5 million in the 2005 2010 period. Private sector contributions in kind are documented by the organization, audited by and submitted to NSERC for review.
At March 31, 2009, CMC has $37.9 million of in kind contributions received from the private sector, relating to the 2005 2010 funding period. A framework for valuing in kind contributions to the National Design Network was developed by the organization and approved by NSERC. These are currently being audited. |
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6.
| Economic Dependence
The organization is economically dependent on continued support from NSERC. In 2007, the organization formalized the agreement with NSERC covering 2005 2010 to provide a maximum contribution of $48.5 million over five years, subject to the organization receiving other cash and matching private sector contributions in kind of $48.5 million as approved by NSERC.
The current funding agreement expires March 31, 2010 and renewal is subject to ongoing negotiation. Pending the outcome of renewal discussions, management has established a prudent cash balance to cover contingent wind up costs, however, no amount has been recorded in the Statement of Revenue and Expenditures in respect of expenses which might be incurred should funding not be renewed. Further cash balances are maintained to complete current expenditure commitments incurred under the organization's mandate.
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| 7. | Commitments
(a) The organization rented facilities under an operating lease agreement with Queen's University at Kingston. The base annual rent was $51,684 for the year ended March 31, 2009 and CMC vacated these premises on November 30, 2008. An additional $40,000 is charged annually to cover support services provided by Queen's University.
(b) The organization rents facilities under an operating lease agreement with Queen’s University at Kingston, covering the period of November 1, 2008 to March 31, 2015. The base rent is $9,167 per month.
(c) The organization rents facilities under an operating lease agreement with Queen's University at Kingston, covering the period of July 1, 2008 to March 31, 2015. The base rent is currently $7,416 per month, increasing to $8,644 per month on April 1, 2013.
(d) In January 2006, the organization entered into a five year operating lease for a photocopier. The photocopier is leased at $290 monthly under a lease expiring in January 2011.
(e) In August 2006, the organization entered into a five year operating lease for a photocopier. The photocopier is leased at $3,660 annually under a lease expiring in August 2011.
(f) In October 2006, the organization entered into a five year operating lease for a photocopier. The photocopier is leased at $3,840 annually under a lease expiring in September 2011.
(g) The organization has outstanding purchase orders issued at March 31, 2009 totalling $415,900. These amounts are not reflected in the financial statements.
The minimum annual lease payments for the six elements (a to f) above for the next five years are as follows:
2010 $ 259,225
2011 $ 258,355
2012 $ 248,245
2013 $ 262,981
2014 $ 262,981 |
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| 8. | Investment in DMT Microsystems Corporation
For the year ended March 31
| 2009 | 2008 | | Total Assets, liabilities and shareholder's equity | $ 6,252 | $ 6,362
| | Expenses and net loss | $ 110
| $ 3,648
| | Cash flows from operating activities | $ (110)
| $ 6,362
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DMT Microsystems Corporation is a wholly owned profit oriented subsidiary that is reported using the equity method. |