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AUDAIN ART MUSEUM
Notes to Financial Statements (continued)
Year ended September 30, 2022
10. Canada Recovery Hiring Program and Canada Emergency Business Account Loan:
(a) Due to the COVID-19 pandemic, the Canadian government introduced the Canada Emergency Wage Subsidy (“CEWS”) and the Canada Recovery Hiring Program (“CRHP”) to assist organizations who had lost a certain percentage of their eligible revenue. During the year ended September 30, 2022, eligible claims totaled $70,017 (2021 - $279,918) and was recognized as government subsidies revenue in the statement of operations. As at September 30, 2022, $12,693 (2021 - $15,663) is included in accounts receivable with respect to claims related to the fiscal year that have not yet been filed.
(b) The Canadian government introduced the Canada Emergency Business Account (“CEBA”) loan to assist organizations during the COVID-19 pandemic with non-deferrable expenses. During the year ended September 30, 2021, the Museum received the full $60,000 loan.
Up to $20,000 of the CEBA loan will be forgiven provided the outstanding balance is paid on or before December 31, 2023. As the Museum intends to repay the loan before December 31, 2023 the amount that will be forgiven was deemed to be government assistance and was recognized in grants revenue during the year ended September 30, 2021.
During the year ended September 30, 2022, $5,000 of the loan was repaid. The remaining $35,000 of the CEBA loan carries 0% interest and no minimum monthly principal payments are required. This portion of the CEBA loan should be initially measured at fair value, discounted at a market interest rate, and subsequently measured at amortized cost. However, as the benefit of the CEBA loan at below-market interest rate is immaterial, the loan has not been discounted for financial reporting purposes and is recorded in the statement of financial position at the face value of the loan, being $35,000 as at September 30, 2022 (2021 - $40,000)
