Statement of Financial Information (SOFI) 2017

Statement of Financial Information Year ended December 31, 2017 In compliance with the Public Bodies Financial Information Act Statutes of British Columbia, Chapter 140

2017 1

TABLE OF CONTENTS Financial Information Act - Statement of Financial Information Library Name: Fiscal Year Ended:

Greater Victoria Public Library December 31, 2017

Documents are arranged in the following order:

1. Table of Contents 2. Financial Information Act Submission Checklist 3. Board Approval Form 4. Management Report 5. Financial Statements 6. Schedule of Debt 7. Schedule of Guarantee and Indemnity Agreements 8. Schedule of Remuneration and Expenses



Reconcile or explain if different from Financial Statements

9. Statement of Severance Agreements 10. Statement of Changes in Financial Position 11. Schedule of Payments for the Provision of Goods and Services including:



Reconcile or explain if different from Financial Statements

SOFI 2017 – Table of Contents

Submission Checklist Financial Information Act - Statement of Financial Information Library Name: Fiscal Year Ended:

Greater Victoria Public Library December 31, 2017 Due Date: May 15th, 2018

a) b)

1

 

Approval of Statement of Financial Information A Management Report signed and dated by the Library Board and Library Director

c)



An operational statement including: i) Statement of Income ii) Statement of Changes in Financial Position, or, if omitted, an explanation in the Notes to the Financial Statements (audited1 financial statements)

d)



Statement of assets and liabilities (audited1 financial statements)

e)



f)



g)

      

h)



Schedule of debts (audited1 financial statements) If there is no debt, or if the information is found elsewhere in the SOFI, an explanation must be provided in the Schedule.

Schedule of guarantee and indemnity agreements including the names of the entities involved and the amount of money involved. If no agreements, or if the information is found elsewhere in the SOFI, an explanation must be provided in the Schedule.

Schedule of Remuneration and Expenses, including: i) An alphabetical list of employees (first and last names) earning over $75,000 ii) Total amount of expenses paid to or on behalf of each employee under $75,000 iii) If the total wages and expenses differs from the audited financial statements, an explanation is required iv) A list, by name and position, of Library Board Members with the amount of any remuneration paid to or on behalf of the member. v) The number of severance agreements started during the fiscal year and the range of months` pay covered by the agreement, in respect of excluded employees. If there are no agreements to report, an explanation is required.

Schedule of Payments for the Provision of Goods and Services including: An alphabetical list of suppliers receiving over $25,000 and a consolidated total for those suppliers receiving less than $25,000. If the total differs from the Audited Financial Statements, an explanation is required.

Municipal Libraries and Regional Library Districts must provide audited financial statements as per the Libraries Act section

11(2) and 26(2) (a). Audited statements are not required for the SOFI but if available, please include them.

As per the Libraries Act section 40(3)(a) Public Library Associations must prepare annual financial statements in accordance with generally accepted accounting principles. This also applies to Library Federations.

SOFI 2017 – Financial Information Act Submission Checklist

Board Approval Form Financial Information Act - Statement of Financial Information

NAME OF LIBRARY

FISCAL YEAR END (YYYY)

Greater Victoria Public Library

2017

LIBRARY ADDRESS

TELEPHONE NUMBER

735 Broughton Street

(250) 413-0355

CITY

PROVINCE

POSTAL CODE

Victoria

BC

V8W 3H2

NAME OF THE CHAIRPERSON OF THE LIBRARY BOARD

TELEPHONE NUMBER

Mr. Rob Martin

(250) 478-5999

NAME OF THE LIBRARY DIRECTOR

TELEPHONE NUMBER

Ms. Maureen Sawa

(250) 413-0356

DECLARATION AND SIGNATURES We, the undersigned, certify that the attached is a correct and true copy of the Statement of Financial Information of the year ended 2017 for Greater Victoria Public Library as required under Section 2 of the Financial Information Act. SIGNATURE OF THE CHAIRPERSON OF THE LIBRARY BOARD*

DATE SIGNED (DD-MM-YYYY) 22-08-2018

SIGNATURE OF THE LIBRARY DIRECTOR

DATE SIGNED (DD-MM-YYYY) 22-08-2018

SOFI 2017 – Board Approval Form

Financial Statements of

GREATER VICTORIA PUBLIC LIBRARY BOARD Year ended December 31, 2017

GREATER VICTORIA PUBLIC LIBRARY BOARD Table of Contents Year ended December 31, 2017

Management's Responsibility for the Financial Statements

1

Independent Auditors' Report

2

Financial Statements Statement of Financial Position

4

Statement of Operations

5

Statement of Change in Net Financial Assets

6

Statement of Cash Flows

7

Notes to Financial Statements

8

MANAGEMENT'S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS The accompanying financial statements of the Greater Victoria Public Library Board (the "Board") are the responsibility of the Board's management and have been prepared in compliance with legislation, and in accordance with generally accepted accounting principles established by the Public Sector Accounting Board of The Chartered Professional Accountants of Canada. A summary of the significant accounting policies are described in note 1 to the financial statements. The preparation of financial statements necessarily involves the use of estimates based on management’s judgment, particularly when transactions affecting the current accounting period cannot be finalized with certainty until future periods.

The Board’s management maintains a system of internal controls designed to provide reasonable assurance that assets are safeguarded, transactions are properly authorized and recorded in compliance with legislative and regulatory requirements, and reliable financial information is available on a timely basis for preparation of the financial statements. These systems are monitored and evaluated by management.

The Board's Finance Committee meets with management and the external auditors to review the financial statements and discuss any significant financial reporting or internal control matters prior to their approval of the financial statements.

The financial statements have been audited by KPMG LLP, independent external auditors appointed by the Board. The accompanying Independent Auditors’ Report outlines their responsibilities, the scope of their examination and their opinion on the Board’s financial statements.

Chief Executive Officer

Director of Finance

1

KPMG LLP St. Andrew's Square II 800-730 View Street Victoria BC V8W 3Y7 Canada Telephone (250) 480-3500 Fax (250) 480-3539

INDEPENDENT AUDITORS' REPORT To the Members of Greater Victoria Public Library Board We have audited the accompanying financial statements of the Greater Victoria Public Library Board (the "Board"), which comprise the statement of financial position as at December 31, 2017, the statements of operations, change in net financial assets and cash flows for the year then ended, and notes, comprising a summary of significant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with Canadian public sector accounting standards, 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.

Auditors' Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we comply with ethical requirements and plan and perform an audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on our judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the Board’s preparation and fair presentation of the financial statements 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 Board’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

KPMG LLP is a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity.

KPMG Canada provides services to KPMG LLP.

2

Greater Victoria Public Library Board Page 2

Opinion In our opinion, the financial statements present fairly, in all material respects, the financial position of the Greater Victoria Public Library Board as at December 31, 2017, and its results of operations, its changes in net financial assets and its cash flows for the year then ended in accordance with Canadian public sector accounting standards.

Chartered Professional Accountants Victoria, Canada May 22, 2018

3

GREATER VICTORIA PUBLIC LIBRARY BOARD Statement of Financial Position December 31, 2017, with comparative information for 2016 2017 Financial assets: Cash and cash equivalents Accounts receivable Other receivable Investments (note 2)

$

Financial liabilities: Accounts payable and accrued liabilities Accrued payroll, vacation and sick leave benefits Deferred revenue (note 3) Debt (note 4) Obligations under capital leases Employee future benefit obligation (note 5) Net financial assets Non-financial assets: Tangible capital assets (note 6) Prepaid expenses and deposits

2,322,605 615,556 8,409 2,962,109 5,908,679

2016

$

1,243,257 176,628 3,192 2,997,566 4,420,643

962,371 583,647 615,418 12,087 409,413 2,582,936

910,208 323,665 351,047 29,758 4,353 406,575 2,025,606

3,325,743

2,395,037

7,474,618 271,285 7,745,903

7,226,688 143,843 7,370,531

Commitments (note 12) Accumulated surplus (note 7)

$

11,071,646

$

9,765,568

The accompanying notes are an integral part of these financial statements.

On behalf of the Library Board:

Trustee

Trustee

4

GREATER VICTORIA PUBLIC LIBRARY BOARD Statement of Operations Year ended December 31, 2017, with comparative information for 2016 Budget (note 10)

Revenue: Municipal contributions (note 8) Fines, fees and printing Government transfers: Provincial Federal Investment income Contracts for service Donations (note 9) Gain on currency exchange Total revenue

$

17,236,399 503,800

Expenses: Salaries and benefits Library materials Supplies and services Building occupancy Other Amortization Transfer to the Victoria Foundation Loss on disposal of tangible capital assets Loss on currency exchange Total expenses Annual surplus Accumulated surplus, beginning of year Accumulated surplus, end of year

$

2017

$

16,952,922 530,502

$

16,802,384 542,734

642,339 5,534 74,000 28,111 72,943 18,563,126

655,475 14,118 55,426 28,560 91,848 1,038 18,329,889

642,339 7,379 73,660 27,450 214,922 18,310,868

13,127,210 865,492 1,074,382 783,144 362,341 1,764,700 17,977,269

12,376,989 889,710 939,898 651,096 291,488 1,874,630 17,023,811

12,487,352 861,691 916,861 760,591 309,560 1,803,547 2,788 10,405 9,957 17,162,752

585,857

1,306,078

1,148,116

9,765,568

9,765,568

8,617,452

10,351,425

$

11,071,646

The accompanying notes are an integral part of these financial statements.

5

2016

$

9,765,568

GREATER VICTORIA PUBLIC LIBRARY BOARD Statement of Change in Net Financial Assets Year ended December 31, 2017, with comparative information for 2016 Budget (note 10) Annual surplus $ Acquisition of tangible capital assets in cash and financed by capital lease Amortization of tangible capital assets Proceeds on sale of tangible capital assets Loss (gain) on disposal of tangible capital assets

2017

585,857

$

(2,350,777) 1,764,700 (220)

Use of prepaid expenses

2,395,037 $

2,394,817

$

(127,442)

(29,066)

930,706

461,146

2,395,037

1,933,891

3,325,743

The accompanying notes are an integral part of these financial statements.

6

1,148,116 (2,474,028) 1,803,547 2,172 10,405 490,212

(220)

Net financial assets, beginning of year

$

(2,122,991) 1,874,630 431 1,058,148

-

Change in net financial assets

Net financial assets, end of year

1,306,078

2016

$

2,395,037

GREATER VICTORIA PUBLIC LIBRARY BOARD Statement of Cash Flows Year ended December 31, 2017, with comparative information for 2016 2017

2016

Cash provided by (used in): Operating activities: Annual surplus Item not involving cash: Amortization of tangible capital assets Loss on disposal of tangible capital assets Change in non-cash operating assets and liabilities: Accounts receivable Other receivable Accounts payable and accrued liabilities Accrued payroll, vacation and sick leave benefits Employee future benefit obligation Deferred revenue Prepaid expenses and deposits Net change in cash from operating activities

$

Capital activities: Acquisition of tangible capital assets Proceeds on sale of tangible capital assets Net change in cash from capital activities Investing activities: Increase in investments Financing activities: Debt repaid Principal payments on obligations under capital leases Net change in cash from financing activities

1,306,078

1,803,547 10,405

(438,928) (5,217) 52,163 259,982 2,838 264,371 (127,442) 3,188,475

(54,884) (193) (618,949) 6,081 (13,032) (2,391) (29,066) 2,249,634

(2,122,991) 431 (2,122,560)

(2,474,028) 2,172 (2,471,856)

35,457

(110,268)

(17,671) (4,353) (22,024)

(17,456) (7,010) (24,466)

1,079,348

Cash and cash equivalents, beginning of year

1,243,257 $

2,322,605

The accompanying notes are an integral part of these financial statements.

7

1,148,116

1,874,630 -

Increase (decrease) in cash and cash equivalents

Cash and cash equivalents, end of year

$

(356,956) 1,600,213 $

1,243,257

GREATER VICTORIA PUBLIC LIBRARY BOARD Notes to Financial Statements Year ended December 31, 2017

Greater Victoria Public Library Board (the "Board") was established under the Library Act of British Columbia. Its principal activity is the operation of the public libraries serving residents of the Cities of Victoria, Colwood and Langford, the Town of View Royal, the Township of Esquimalt and the Districts of Central Saanich, Highlands, Metchosin, Oak Bay and Saanich.

The Board also provides service to residents of the communities of Willis Point, Durrance, Malahat, and of the Esquimalt, Songhees, Tsawout, Tsartlip and Becher Bay Reserves.

The Board is a registered charity and is exempt from income tax.

1.

Significant accounting policies: The financial statements of Greater Victoria Public Library Board are prepared by management in accordance with Canadian public sector accounting standards. Significant accounting policies adopted by the Board are as follows: (a) Reporting entity: The financial statements include the combination of all the assets, liabilities, revenues, expenses, and changes in net financial assets of the Board. The Board does not control any external entities and accordingly, no entities have been consolidated with the financial statements. Inter-fund balances and transactions have been eliminated. (b) Basis of accounting: The Board follows the accrual method of accounting for revenues and expenses. Revenues are normally recognized in the year in which they are earned and measurable. Expenses are recognized as they are incurred and measurable as a result of receipt of goods or services and/or the creation of a legal obligation to pay. (c) Revenue recognition: Fines are recorded when received as a result of the difficulty in determining collectability.

Receipts that are restricted by legislation or by agreement with external parties are deferred and reported as deferred revenue. When qualifying expenses are incurred, deferred revenue are brought into revenue in equal amounts. (d) Government transfers: Government transfers are recognized in the financial statements as revenues in the period in which events giving rise to the transfer occur, providing the transfers are authorized, any eligibility criteria have been met, and reasonable estimates of the amounts can be made.

Government transfers with stipulations are recognized as revenue when authorized and eligibility criteria have been met, except when and to the extent the transfer gives rise to an obligation that meets the definition of a liability.

8

GREATER VICTORIA PUBLIC LIBRARY BOARD Notes to Financial Statements (continued) Year ended December 31, 2017

1.

Significant accounting policies (continued): (e) Cash equivalents: Cash equivalents include short-term highly liquid investments with a term to maturity of 90 days or less at acquisition or redeemable without penalty. (f)

Investments: Investments are recorded at cost plus accrued interest. Investment income is reported as revenue in the period earned. When there has been a loss in value that is other than a temporary decline in value, the respective investment is written down to recognize the loss.

(g) Non-financial assets: Non-financial assets are not available to discharge existing liabilities and are held for use in the provision of services. They have useful lives extending beyond the current year and are not intended for sale in the ordinary course of operations. (i)

Tangible capital assets Tangible capital assets are recorded at cost which includes amounts that are directly attributable to acquisition, construction, development or betterment of the asset. The cost, less residual value, of the tangible capital assets are amortized on a declining balance basis, except for library materials collection which is amortized on a straight line basis, over their estimated useful lives as follows: Asset

Rate

Library materials collection Building improvements Shelving Computer equipment Furniture and equipment Software Automotive

7 years 10% 5% 20% 10% 10 - 100% 30%

Amortization is charged in the year of acquisition and in the year of disposal. Assets under construction are not amortized until the asset is available for productive use.

When a tangible capital asset no longer contributes to the Board's ability to provide services, its carrying amount is written down to its residual value.

9

GREATER VICTORIA PUBLIC LIBRARY BOARD Notes to Financial Statements (continued) Year ended December 31, 2017

1.

Significant accounting policies (continued): (g) Non-financial assets (continued): (ii)

Contributions of tangible capital assets Tangible capital assets received as contributions are recorded at their fair value at the date of receipt and also are recorded as revenue.

(iii) Leased tangible capital assets Leases which transfer substantially all of the benefits and risks incidental to ownership of property are accounted for as leased tangible capital assets. All other leases are accounted for as operating leases and the related payments are charged to expenses as incurred. (iv) Works of art and cultural and historic assets Works of art and cultural and historic assets are not recorded as assets in these financial statements. (h) Contaminated sites: Contaminated sites are defined as the result of contamination being introduced in air, soil, water or sediment of a chemical, organic, or radioactive material or live organism that exceeds an environmental standard. A liability for remediation of contaminated sites is recognized, net of any expected recoveries, when all of the following criteria are met: (i) (ii) (iii) (iv) (v) (i)

an environmental standard exists contamination exceeds the environmental standard the Board is directly responsible or accepts responsibility for the liability future economic benefits will be given up, and a reasonable estimate of the liability can be made

Employee future benefits: (i)

The Board pays a retirement gratuity directly to employees upon retirement. The cost of this benefit is actuarially determined based on periods of service and best estimates of retirement ages and expected future salary increases. The obligation under this benefit is accrued based on projected benefits as the employees render services necessary to earn the future benefit. Actuarial gains and losses are recognized immediately in the statement of operations.

(ii) The Board and its employees make contributions to the Municipal Pension Plan, which provides benefits directly to employees upon retirement. These contributions are expensed as incurred.

10

GREATER VICTORIA PUBLIC LIBRARY BOARD Notes to Financial Statements (continued) Year ended December 31, 2017

1.

Significant accounting policies (continued): (j)

Use of estimates: The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements, and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the period.

Significant estimates and assumptions include obligations related to employee future benefits and accrued liabilities. Actual results could differ from these estimates.

2.

Investments: Investments include Municipal Finance Authority pooled investment funds which are recorded at cost plus earnings reinvested in the funds, and investments in guaranteed investment certificates.

Investments held in the year earn interest at rates varying from 1.50% to 2.40%, and mature at varying dates to 2020.

3.

Deferred revenue: Deferred revenue, reported on the statement of financial position, is made up of the following: 2017

Deferred municipal contributions and government grants Restricted donations

11

2016

$

313,754 301,664

$

152,504 198,543

$

615,418

$

351,047

GREATER VICTORIA PUBLIC LIBRARY BOARD Notes to Financial Statements (continued) Year ended December 31, 2017

4. Debt: During 2015, the Board entered into an Equipment Financing Loan Agreement with the Municipal Finance Authority of BC. The Board received proceeds of $57,300 to finance the purchase of tangible capital assets.

The loan is to be repaid in blended monthly payments of $1,500 with a maturity date of September 30, 2018. Estimated payments on the loan for the duration of the term are as follows:

2018

$

12,087

Total

$

12,087

Interest is charged on a daily floating rate basis and compounded monthly. At year end, the current floating rate was 1.94% per annum. Interest paid during the year was $298 (2016 - $537) and has been included in expenses on the statement of operations. As a condition of borrowing, the Board has issued a promissory note in the value of $57,300 to the MFA.

12

GREATER VICTORIA PUBLIC LIBRARY BOARD Notes to Financial Statements (continued) Year ended December 31, 2017

5.

Employee future benefit obligation: The Board provides one month salary as benefit on retirement to its employees. The estimated amounts due are as follows: 2017 Obligations for retirement gratuity

$

409,413

2016 $

406,575

Information about the Board's obligation is as follows: 2017

2016

Balance, beginning of year Current benefit cost and interest Benefits paid

$

406,575 $ 26,612 (23,774)

419,607 31,726 (44,758)

Balance, end of year

$

409,413

406,575

$

Included in the statement of operations is $26,612 (2016 - $31,726) in expense related to future benefit obligations.

The significant actuarial assumptions used in estimating employee future benefit obligations are as follows:

Discount rate for present value of future benefits Rate of annual salary increases, including inflation

13

2017

2016

3.0 % 2.0 %

2.4 % 2.0 %

GREATER VICTORIA PUBLIC LIBRARY BOARD Notes to Financial Statements (continued) Year ended December 31, 2017

5.

Employee future benefit obligation (continued): Pension plan The Board and its employees contribute to the Municipal Pension Plan (the "Plan"), a jointly trusteed pension plan. The Board of Trustees, representing plan members and employers, is responsible for overseeing the management of the Plan, including investment of the assets and administration of benefits. The Plan is a multi-employer contributory pension plan. Basic pension benefits provided are based on a formula. The Plan has about 189,000 active members and approximately 90,000 retired members. Active members include approximately 38,000 contributors from local government.

Every three years an actuarial valuation is performed to assess the financial position of the Plan and adequacy of Plan funding. The most recent actuarial valuation as at December 31, 2015 indicated a $2,224 million funding surplus for basic pension benefits. The next valuation will be as at December 31, 2018, with results available later in 2019. The actuary does not attribute portions of the surplus or unfunded liability to individual employers.

The Board paid $898,810 (2016 - $955,923) for employer contributions while employees contributed $763,577 (2016 - $795,948) to the Plan in fiscal 2017.

14

GREATER VICTORIA PUBLIC LIBRARY BOARD Notes to Financial Statements (continued) Year ended December 31, 2017

6.

Tangible capital assets: Library materials collection

2017 Cost: Balance, beginning Additions Disposals

$ 21,918,188 1,697,595 -

Balance, ending

Building improvements

$

855,327 225,386 -

Computer equipment

Shelving

$

Furniture and equipment

Automotive

1,275,397 $ (700)

1,236,865 $ 140,394 (20,350)

3,582,269 $ 59,616 (64,579)

148,672 -

1,274,697

1,356,909

3,577,306

Software

$

Total

196,330 -

$ 29,213,048 2,122,991 (85,629)

148,672

196,330

31,250,410

23,615,783

1,080,713

Accumulated amortization: Balance, beginning 17,229,622 Disposals Amortization 1,517,796

353,340 84,007

965,462 (269) 15,448

878,825 (20,350) 105,586

2,329,449 (64,579) 121,309

88,375 24,980

141,287 5,504

21,986,360 (85,198) 1,874,630

Balance, ending

437,347

980,641

964,061

2,386,179

113,355

146,791

23,775,792

Net book value, end of year

18,747,418

$

4,868,365

$

643,366

$

294,056

15

$

392,848

$

1,191,127

$

35,317

$

49,539

$

7,474,618

GREATER VICTORIA PUBLIC LIBRARY BOARD Notes to Financial Statements (continued) Year ended December 31, 2017

6.

Tangible capital assets (continued): Library materials collection

2016 Cost: Balance, beginning Additions Disposals

$ 20,054,698 1,863,490 -

Balance, ending

Building improvements

$

810,491 44,836 -

$

106,997 41,675 -

1,275,397

1,236,865

3,582,269

2,035,628 (1,246,313) 89,510

Accumulated amortization: Balance, beginning 15,761,354 Disposals Amortization 1,468,268

297,564 55,776

949,419 (269) 16,312

Balance, ending

353,340

965,462

$

4,688,566

$

501,987

$

Automotive

3,184,864 $ 418,008 (20,603)

855,327

Net book value, end of year

Furniture and equipment

1,276,064 $ 2,391,347 $ 103,498 (667) (1,257,980)

21,918,188

17,229,622

Computer equipment

Shelving

309,935

878,825

$

358,040

$

Software

193,809 2,521 -

$ 28,018,270 2,474,028 (1,279,250)

148,672

196,330

29,213,048

2,210,338 (20,091) 139,202

62,533 25,842

132,650 8,637

21,449,486 (1,266,673) 1,803,547

2,329,449

88,375

141,287

21,986,360

1,252,820

$

60,297

$

Total

$

55,043

$

7,226,688

Included in tangible capital assets are leased assets with cost and accumulated amortization of $575,528 and $486,794 (2016 - $575,528 and $473,044) respectively. Amortization expense of $13,750 (2016 - $16,421) is included in the statement of operations related to leased tangible capital assets.

16

GREATER VICTORIA PUBLIC LIBRARY BOARD Notes to Financial Statements (continued) Year ended December 31, 2017

6.

Tangible capital assets (continued): (a) Contributed tangible capital assets: No furniture and equipment was contributed during the years presented. (b) Write-down of tangible capital assets: No write-down of capital assets occurred during the years presented. (c) Work of art and historical treasures: The Board manages and controls various works of art and non-operational historical cultural assets including artifacts, paintings and sculptures located at branch sites and public display areas. These assets are not recorded as tangible capital assets and are not amortized. (d)

Ownership of premises: Land and buildings for the eleven library branches are owned or leased by the respective municipalities in which the branches are located or in accordance with title registration. The Central Branch building, located at 735 Broughton Street, Victoria, is jointly owned by the City of Victoria, Township of Esquimalt, Districts of Saanich and Oak Bay and the Town of View Royal. Shared Services BC, a division of the BC Ministry of Citizens' Services has an option to purchase the premises of the Central Branch if it ceases to be used for library purposes.

The fair value of the cost to lease the premises has not been recognized in the statement of operations.

17

GREATER VICTORIA PUBLIC LIBRARY BOARD Notes to Financial Statements (continued) Year ended December 31, 2017

7.

Accumulated surplus: Accumulated surplus consists of: 2017 Surplus: Invested in tangible capital assets Unfunded employee future benefit obligation Total surplus Reserves: Capital improvement reserve Operating reserve Contingency reserve Replacement reserve Total reserves

$

7,462,531 $ (163,697) 7,298,834

7,192,577 (158,492) 7,034,085

1,439,148 1,774,989 482,622 76,053 3,772,812

1,408,334 1,098,579 161,264 63,306 2,731,483

$ 11,071,646

18

2016

$

9,765,568

GREATER VICTORIA PUBLIC LIBRARY BOARD Notes to Financial Statements (continued) Year ended December 31, 2017

8.

Municipal contributions: The following municipal contributions have been included in revenue: 2017 District of Saanich City of Victoria City of Victoria - new branch City of Langford City of Langford - new branch District of Oak Bay Township of Esquimalt District of Central Saanich City of Colwood Town of View Royal District of Metchosin District of Highlands

$

5,487,794 4,768,973 407,684 1,825,747 6,839 1,058,442 895,495 859,172 793,604 484,061 250,070 115,041

$ 16,952,922

2016 $

5,395,089 4,653,424 1,649,194 736,936 1,029,769 873,093 846,232 762,988 491,186 254,316 110,157

$ 16,802,384

During 2016, the Board approved the opening of a new branch in Victoria in 2018. Municipal contributions from the City of Victoria were approved up to $698,000 for acquisition of tangible capital assets and moving expenses by the Board, of which $407,684 has been incurred and recognized as revenue in 2017.

During 2015, the Board approved the opening of a new branch in Langford in 2016. Municipal contributions from the City of Langford were approved up to $765,000 for acquisition of tangible capital assets and moving expenses by the Board, of which $736,936 has been incurred and recognized as revenue in 2016.

9.

Donations: Included in donation revenue are distributions from the following endowment funds held at the Victoria Foundation. These funds are shown below in their endowed amounts.

2017 General endowment T. Harry Wilson

19

2016

$

343,952 74,596

$

331,063 71,831

$

418,548

$

402,894

GREATER VICTORIA PUBLIC LIBRARY BOARD Notes to Financial Statements (continued) Year ended December 31, 2017

9.

Donations (continued): Included in donations is $24,695 (2016 - $20,330) of unrestricted donations which have not been dedicated to any specific projects or programs and have not been spent. As no external restrictions were placed on the use of the funds, the amounts have been recognized as revenue when received.

10. Budget data: The budget data presented in these financial statements is based upon the operating budget approved by the Board on February 14, 2017. The chart below reconciles the approved financial plan to figures reported in these financial statements.

Budget amount Revenues: Operating budget Less: Transfers from other funds Total revenue

$ 18,701,326 (138,200) 18,563,126

Expenses: Operating budget Amortization expense Less: Transfers to other funds Capital expenditures Lease principal payments Total expenses

18,701,326 1,764,700 (116,000) (2,350,777) (21,980) 17,977,269

Annual surplus

$

585,857

11. Economic dependency: Approximately 93% (2016 - 92%) of the Board's revenues are derived from contributions from municipalities participating under the Library Operating Agreement (the "Agreement"). Should this Agreement be cancelled or not renewed, management is of the opinion that continued viability of operations would not be assured.

20

GREATER VICTORIA PUBLIC LIBRARY BOARD Notes to Financial Statements (continued) Year ended December 31, 2017

12. Commitments: The Board has entered into operating leases for premises and equipment, and has a contractual obligation for janitorial services. Estimated commitments for the duration of the lease terms are as follows:

2018 2019

$

234,590 40,256

$

274,846

13. Trust funds: Trust funds administered by the Board for the Juan de Fuca Branch Reserve Fund amount to $277,150 (2016 - $202,186) and have not been included in the statement of financial position nor have their activities been included in the statement of operations and accumulated surplus.

The trust was established to hold and administer reserves to fund major building maintenance and renewals.

21

GREATER VICTORIA PUBLIC LIBRARY BOARD Statement of Financial Position by Fund December 31, 2017, with comparative information for 2016

Schedule 1

Operating fund Financial assets: Cash and cash equivalents Accounts receivable Other receivable Investments

$

Financial liabilities: Accounts payable and accrued liabilities Accrued payroll, vacation and sick leave benefits Deferred revenue Debt Obligations under capital leases Employee future benefit obligation

2,301,343 615,556 8,409 421,196 3,346,504

Non-financial assets: Tangible capital assets Prepaid expenses and deposits

1,046,940

1,101,765 1,101,765

-

-

12,087 271,285 283,372 $

Reserve fund

$

962,371 583,647 615,418 12,087 409,413 2,582,936 763,568

Net financial assets (net debt)

Accumulated surplus

Capital fund

Capital improvement fund

Endowment fund

21,262

1,101,765

21,262

$ 1,243,257 176,628 3,192 2,997,566 4,420,643

1,439,148

962,371 583,647 615,418 12,087 409,413 2,582,936 3,325,743

910,208 323,665 351,047 29,758 4,353 406,575 2,025,606 2,395,037

-

7,474,618 271,285 7,745,903

7,226,688 143,843 7,370,531

1,439,148

$ 11,071,646

$ 9,765,568

7,462,531 7,462,531 $

7,462,531

$

1,101,765

$

21,262

$

$ $ $ $

2016

2,322,605 615,556 8,409 2,962,109 5,908,679

1,439,148 1,439,148

21,262

2017

GREATER VICTORIA PUBLIC LIBRARY BOARD Statement of Operations and Accumulated Surplus by Fund Year ended December 31, 2017, with comparative information for 2016

Operating fund Revenue: Municipal contributions Fines, fees, photocopying Government transfers: Provincial Federal Investment income Contracts for service Donations Contributed tangible capital assets Gain on Currency Exchange Total revenue

$

Reserve fund

-

-

12,341,309 889,710

Supplies and services

651,096 280,394 1,874,630 (67,988) 16,875,390

Annual surplus (deficiency) Transfer to replacement reserve Transfer from replacement reserve Transfer from contingency reserve Transfer from library materials reserve Investment in tangible capital assets Amortization of tangible capital assets Capital lease and debt payments Transfer Prior Year to Reserve TCA Disposal Net Accumulated surplus, beginning of year

1,378,744 (80,000) (39,265) 36,000 5,117 (2,122,991) 1,874,630 (22,024) (429,965) 431 446,263 $

1,046,940

38

27,142

23,864

24,711

23,902

51,853

14,641

2017 16,952,922 530,502 655,475 14,118 55,426 28,560 91,848 1,038 18,329,889

21,039

906,239

Building occupancy Other Amortization Transfer to the Victoria Foundation Loss on disposal of tangible capital assets Loss on currency exchange Total expenses

Accumulated surplus, end of year

Capital fund

Capital improvement fund

Endowment fund

16,952,922 530,502 655,475 14,118 28,246 28,560 43,273 1,038 18,254,134

Expenses: Salaries and benefits Library materials

Schedule 2

33,659 11,094 67,988

916,861 760,591 309,560 1,803,547 2,788 10,405 9,957 17,162,752

17,023,811

-

(93,723) 80,000 39,265 (36,000) (5,117)

(9,757)

30,814

1,306,078 9,765,568

$ 7,462,531

$

1,101,765

31,019 $

21,262

1,408,334 $

1,439,148

$

18,310,868

939,898

21,039

687,375

642,339 7,379 73,660 27,450 214,922 -

651,096 291,488 1,874,630 33,659

429,965

16,802,384 542,734

12,487,352 861,691

93,723

(431) 7,192,577

$

12,376,989 889,710

-

2,122,991 (1,874,630) 22,024

2016

11,071,646

1,148,116 -

8,617,452 $

9,765,568

Schedule of Debt Financial Information Act - Statement of Financial Information Library Name: Fiscal Year Ended:

Greater Victoria Public Library December 31, 2017

Information on all long term debt is included in the Audited Financial Statemets.

Prepared as required by Financial Information Regulation, Schedule 1, section 4 SOFI 2017 – Schedule of Debt

Schedule of Guarantee and Indemnity Financial Information Act - Statement of Financial Information Library Name: Fiscal Year Ended:

Greater Victoria Public Library December 31, 2017

Library (Greater Victoria Public Library) has not given any guarantee or indemnity under the Guarantees and Indemnities Regulation.

Prepared as required by Financial Information Regulation, Schedule 1, section 5 SOFI 2017 – Schedule of Guarantee and Indemnity

Schedule of Remuneration and Expenses Financial Information Act - Statement of Financial Information Library Name: Fiscal Year Ended:

Greater Victoria Public Library December 31, 2017

Board Members Andy MacKinnon Beth Burton-Krahn David Alexander Dean Murdock Deborah Begoray Donna Curtis Gabrielle Goudy Jeff Young John Rogers Joy Davis Karen Burns Kathy Santini Kevin Murdoch Matthew Boyd Matthew Sahlstrom Rob Martin Roberta Burris Susan Laidlaw Zeb King Total Board Members Detailed Employees Exceeding $75,000 Ms. Olivia Anderson Mr. John Au Ms. Ursula Benoit Mr. Matthew Bingham Ms. Andrea Brimmell Ms. Phillippa Brown

Position Trustee Trustee Trustee Trustee Vice-Chair Trustee Trustee Trustee Trustee Trustee Trustee Trustee Trustee Trustee Trustee Chair Trustee Trustee Trustee

Total Remuneration

Total Expenses

$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

-

$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

289 594 310 559 167 289 100 2,307

$ $ $ $ $ $

89,657 77,097 80,062 80,963 90,093 84,788

$ $ $ $ $ $

1,733 720 733 -

Prepared as required by Financial Information Regulation, Schedule 1, section 6 SOFI 2017 – Schedule of Remuneration and Expenses

Schedule of Remuneration and Expenses Financial Information Act - Statement of Financial Information Library Name: Fiscal Year Ended:

Greater Victoria Public Library December 31, 2017 Total Remuneration

Total Expenses

Detailed Employees Exceeding $75,000 (continued) Ms. Bonnie Fraser Ms. Rina Hadziev Ms. Lynne Jordon Ms. Tracy Kendrick Mr. Philippe Lajoie Ms. Debbie Main Mr. Daniel Phillips Ms. Kate Pollock Ms. Lara Riecken Ms. Jennifer Rowan Ms. Maureen Sawa Mr. Daniel Sinclair Ms. Jennifer Windecker Ms. Daphne Wood

$ $ $ $ $ $ $ $ $ $ $ $ $ $

$ $ $ $ $ $ $ $ $ $ $ $ $ $

Total Detailed Employees Exceeding $75,000 Total Employees Equal to or Less Than $75,000 Consolidated Total

$ 1,898,230 $ 8,161,891 $ 10,060,121

Receiver General of Canada - Employer portion of EI & CPP Employer portion of other employment benefit contributions Total Salaries and Benefits per Statement of Revenue and Expenditure

$ 588,541 $ 1,728,327

75,996 89,331 131,396 84,265 76,718 107,748 113,696 85,320 80,710 85,356 165,865 79,151 108,573 111,444

2,262 2,257 5,334 794 720 1,691 4,253 340 459 1,327 6,658 854 2,639 4,452

$ 37,227 $ 41,979 $ 79,206

$ 12,376,989

* Must reconcile to the financial statements. If not, explanation must be provided. *The Total Remuneration column and the Total Expenses Column MUST REMAIN SEPARATE throughout the form.

Prepared as required by Financial Information Regulation, Schedule 1, section 6 SOFI 2017 – Schedule of Remuneration and Expenses

Statement of Severance Agreements Financial Information Act - Statement of Financial Information Library Name: Fiscal Year Ended:

Greater Victoria Public Library December 31, 2017

There were __0__ severance agreements made between (Greater Victoria Public) Library and its nonunionized employees during fiscal year 2017.

These agreements represent from __nil__ to __nil__ months’ compensation.

Prepared as required by Financial Information Regulation, Schedule 1, subsection 6(7) SOFI 2017 – Severance Agreement

Schedule of Changes in Financial Position Financial Information Act - Statement of Financial Information Library Name: Fiscal Year Ended:

Greater Victoria Public Library December 31, 2017

A Statement of Changes in Financial Position has not been prepared because this information is provided in the Financial Statements.

Prepared as required by Financial Information Regulation, Schedule 1, section 3 SOFI 2017 – Statement of Changes in Financial Position

Schedule of Payments Made For the Provisions of Goods and Services Financial Information Act - Statement of Financial Information Library Name: Fiscal Year Ended:

Greater Victoria Public Library December 31, 2017

Name of Individual, Firm or Corporation Amazon BC Libraries Cooperative BC Life & Casualty Company Bibliotheca Canada Inc. British Columbia Pension Corporation Canada Savings Bonds Chase Office Interiors Cupe Local 410 CVS Midwest Tape, LLC Dell Canada Inc District of Saanich Ebsco Canada Ltd GVLRA / CUPE LTD TRUST Jardine Lloyd Thompson Canada Library Bound Inc Medical Services Plan Ministry of Finance Monk Office Supply Ltd Munro's Book Store Ltd Pacific Blue Cross Pacific Coast Commercial Cleaning Inc Paladin Security Quadra Pacific Properties Corp - 747 Fort St. Trust Receiver General - Payroll Remits Ricoh Canada Inc Shaw Business Solutions SirsiDynix (Canada) Inc SoftChoice LP Unique Management Services Inc United Library Services Inc Waddington Bldg Strata Plan VIS4516 West Shore Parks and Recreation

Total Amount Paid During Fiscal Year

$ 50,266 $ 223,920 $ 59,571 $ 450,607 $ 1,662,388 $ 29,410 $ 41,549 $ 196,324 $ 524,094 $ 45,399 $ 58,628 $ 89,617 $ 273,487 $ 55,268 $ 696,855 $ 177,525 $ 39,441 $ 56,933 $ 81,631 $ 376,189 $ 252,892 $ 68,284 $ 48,855 $ 2,544,099 $ 83,134 $ 308,695 $ 105,692 $ 132,442 $ 31,126 $ 78,163 $ 179,046 $ 75,586

Prepared as required by Financial Information Regulation, Schedule 1, section 7 SOFI 2017 – Schedule of Payments for Provision of Goods and Services

Schedule of Payments Made For the Provisions of Goods and Services Financial Information Act - Statement of Financial Information Library Name: Fiscal Year Ended:

Greater Victoria Public Library December 31, 2017

Name of Individual, Firm or Corporation (continued) Whitehots Inc Work Safe BC

Total (Suppliers with payments exceeding $25,000) Total (Suppliers where payments are $25,000 or less) Consolidated Total Reconciliation of Above to Statement of Revenue and Expenditures Total of aggregate payments exceeding $25,000 paid to suppliers (A) Consolidated total of payments of $25,000 or less paid to suppliers (B) Reconciling items 1. Add Remuneration and Expenses 2. Deduct employee's portion of employment benefit contributions 3. GST rebates on expenditures 4. Capital lease principal and debt repayments 5. Amortization expense 6. Tangible capital asset additions net of contributed assets 7. Loss on disposal of assets 8. Loss on currency exchange 9. Municipal cost recovery for building maintenance 10. Decrease in employee future benefit obligation 11. Increase in non-salary prepaid expenses 12. Increase in non-salary accrued expenses Total per Statement of Revenue and Expenditure Variance

$ $ $ (A) $ (B) $ $

457,851 43,040 9,598,007 1,215,462 10,813,468

$

9,598,007

$

1,136,256

$

10,124,937

$ $ $ $ $ $ $ $ $ $ $ $

(3,143,986) (225,565) (22,024) 1,874,630 (2,122,991) (175,073) 2,838 (127,442) 104,224 17,023,811 Nil

Prepared as required by Financial Information Regulation, Schedule 1, section 7 SOFI 2017 – Schedule of Payments for Provision of Goods and Services