Issuu on Google+

Annual Report 2006


Annual Report 2006

VISION A world where everyone has a safe and decent place to live.

MISSION To mobilize volunteers and community partners in building affordable housing and promoting homeownership as a means to breaking the cycle of poverty.

VALUES HOUSING FOR ALL: We believe that access to safe, decent and affordable housing is a basic human right that should be available to all.

HUMAN DIGNITY: We believe in the worth and dignity of every human being. We respect the people we serve and those that help us in this effort and recognize them as our greatest resource.

PARTNERSHIP: We believe we can best achieve our mission through meaningful and mutually beneficial partnerships with others.

FAITH IN ACTION: We believe that faith is lived through action. Building on our Christian foundation, we serve and work with people of all faiths and beliefs in a spirit of justice and compassion.

DIVERSITY & INCLUSIVENESS: We believe there is a role for everyone committed to our vision, mission and values and we seek to enrich our organization through diversity.

2


Annual Report 2006 Message from the Chair In 2006 Habitat for Humanity Greater Vancouver continued to reorganize and develop infrastructure for the growth we are capable of and to meet our community needs. Our policies and procedures were updated. Policies and Procedure manuals do not sound exciting but they are the mundane necessity that keeps us focused and consistent. Our Board of Directors has been enhanced with new people eager to make a difference. Existing members provide the thread that keeps us on our mission statement while new members help us get there sooner. All can be proud of the work done in this year. To all‌..thank you. Our committees continued to do their work and we will be turning over the keys to four more units shortly because of that effort. The staff of Habitat for Humanity Greater Vancouver is continuing to make our affiliate work as it should. We have set up our second Re-Store to open in early 2007. Re-Store income continues to support a significant portion of our work and those responsible for this resource are to be commended again. The work goes on and the need grows faster than our ability to meet it. We could not even try without all the volunteers, staff and Board Members. 2006 built on 2005. 2007 is stretched out ahead of us.

Jim Lippert CRSP

Longtime volunteer Roger Boychuck at the Burnaby ReStore

J.N. Burnett Secondary School, Richmond fundraised for HFHGV 3


Annual Report 2006 Message from the Executive Director 2006 was another exciting year for HFHGV. The Habitat for Humanity Burnaby ReStore was recognized in April with the prestigious Volunteer Vancouver Award for Innovation as a “vanguard for an innovative and multifaceted community service philosophy” and a “model for current and future not-for-profit organizations to achieve broader success”. Early in the year, Habitat for Humanity International was invited to participate in the World Urban Forum (WUF3), hosted by the Government of Canada in partnership with United Nations-HABITAT. Prior to the Forum in June, Jonathan Reckford (HFHI CEO) and Dr Anna Kajumulo Tibaijuka, the Under-Secretary-General of the United Nations and Executive Director of the United Nations Human Settlements Programme (UN-HABITAT), along with other dignitaries, visited the Burnaby Build to acknowledge our work in the Greater Vancouver area. HFHGV volunteers and sponsors participated by framing a house outside the Vancouver Convention Centre. This event was a highlight of the conference and was officially opened by the Mayor of Vancouver, Sam Sullivan. At the end of the week, the house was dismantled and shipped to Louisiana to become a home for a Hurricane Katrina family through Habitat for Humanity’s program “Operation Home Delivery”. In addition to this contribution, we continue to tithe funds to Habitat’s international work in developing countries. A major focus of activity in 2006 was finding a location for a second ReStore. In October, after much searching and submitting a development application to the City of Vancouver, we signed a lease on a 20,000 sq foot building in South Vancouver. The offices moved from the Burnaby ReStore to the Vancouver location in late November and preparations began for the opening of the Vancouver ReStore in early 2007. Two full-time volunteers from the federal Katimavik program came to help the staff at the Burnaby ReStore in September. We hope to keep working with this program through 2007 and beyond. Recognized as leaders in the affordable housing field, we were also invited to sit at the table as stakeholders for the City of Vancouver Ecodensity initiative and the City of Richmond Affordable Housing Strategy meetings. In addition, we gave presentations to organizations and faith groups throughout the year, and contributed on a panel at the BC Non Profit Housing Conference in November. Last but not least, we held a dedication ceremony for four more Habitat families to celebrate their new homes. Congratulations go to all those who made that day a special one for many reasons, and thanks to all our Habitat families, volunteers, partners and staff who helped make 2006 another year to remember!

Anneke Rees, Executive Director 4


Annual Report 2006

Jonathan Reckford (HFHI CEO) and Dr Anna Kajumulo Tibaijuka, the Under-Secretary-General of the United Nations and Executive Director of the United Nations Human Settlements Programme (UNHABITAT), at the Burnaby build site.

Vancouver Mayor Sam Sullivan, Anneke Rees, David Hughes (CEO Habitat Canada) and Mark Crozet (Senior Vice President Development HFH International) at the World Urban Forum. 5


Annual Report 2006

Phase 3 Sponsors in 2006 “HALF-HOUSE” $50,000+ MCAP Mortgage Corporation (and their partners)

Genworth Financial Mortgage Insurance Company of Canada & Invis

eBay Habitat for Humanity Greater Vancouver Burnaby ReStore

“ROOM BUILDER” $10,000+ Architectural Woodwork Manufacturers Association — Borden Ladner Gervais — Commonwealth Insurance — Great-West Life (GWL Realty) (and their partners) Omicron, Fujitec and Gateway Property Management — TD Canada Trust — Teekay Shipping

“BUILDER” $5,000+ Macdonald Realty — Tonko Realty Advisors Ltd

Special Thanks to CMHC and Roofing Contractors Association of BC for their ongoing support And to the Chris Spencer Foundation for their support of the Habitat for Humanity ReStore 6


HABITAT FOR HUMANITY SOCIETY OF GREATER VANCOUVER Financial Statements Year Ended December 31, 2006 and Auditors’ Report


Hay & Watson CHARTERED ACCOUNTANTS AUDITORS' REPORT To the Members of Habitat for Humanity Socie ty of Greater Vancouver We have audited the statement of net assets of Habitat for Humanity Society of Greater Vancouver as at December 31, 2006 and the statements of revenue, expenditures and net assets and of cash flows for the year then ended. These financial statements are the responsibility of the Society's management. Our responsibility is to express an opinion on these financial statements based on our audit. Except as explained in the following paragraph, we conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we plan and perform an audit to obtain reasonable assurance whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. In common with many organizations, the Society derives revenues from sources, the completeness of which is not susceptible to satisfactory audit verification. Accordingly, our verification of these revenues was limited to the amounts recorded in the records of the Society and we were not able to determine whether any adjustments might be necessary to such revenues, excess of revenue over expenditure, assets and net assets. In our opinion, except for the effect of adjustments, if any, which we might have determined to be necessary had we been able to satisfy ourselves concerning the completeness of the revenues referred to in the preceding paragraph, these financial statements present fairly, in all material respects, the financial position of the Society as at December 31, 2006 and the results of its operations and its cash flows for the year then ended in accordance with Canadian generally accepted accounting principles. As required by the Society Act, British Columbia we report that, in our opinion, these principles have been applied on a consistent basis.

Chartered Accountants Vancouver, B. C. May 30, 2007

1822 West 2nd Avenue, Vancouver, B.C. V6J 1H9 Tel: (604) 732-1466 Fax: (604) 732-3133


HABITAT FOR HUMANITY SOCIETY OF GREATER VANCOUVER Statement of Net Assets December 31, 2006

2006 ASSETS Cash $ Term deposit Accounts receivable Prepaid expenses and deposit Property under construction (Note 2) Equipment, less accumulated depreciation of $58,082 (2005 - $39,513) Mortgages receivable (Note 4)

LIABILITIES Accounts payable and accrued liabilities Mortgages payable (Note 5)

$

NET ASSETS

APPROVED BY THE BOARD Director Director

138,864 5,714 29,873 28,593 1,394,626 45,300 446,062

2005 $

93,075 105,714 12,571 11,146 1,525,972 50,550 218,611

2,089,032

2,017,639

38,526 150,375

42,209 186,893

188,901

229,102

1,900,131

$

1,788,537


HABITAT FOR HUMANITY SOCIETY OF GREATER VANCOUVER Statement of Revenue, Expenditures and Net Assets Year Ended December 31, 2006

2006 REVENUE Contributions, grants and donations Contributions to Operation Home Delivery Sale of constructed properties (Note 4) ReStore revenue (Notes 1 and 3) ReStore yard rental Rents Interest

$

EXPENDITURES Administration Fund raising expenses Cost of constructed properties Mortgage interest ReStore operations Operation Home Delivery Depreciation

EXCESS OF REVENUE OVER EXPENDITURES NET ASSETS, Beginning of Year NET ASSETS, End of Year

$

324,012 64,817 263,800 589,311 18,850

2005 $

243,946 565,524 12,000 5,380 13,800

1,260,790

840,650

236,695 13,198 438,879 6,682 333,112 102,062 18,568

199,250 2,982 6,377 291,646 17,191

1,149,196

517,446

111,594

323,204

1,788,537

1,465,333

1,900,131

$

1,788,537


HABITAT FOR HUMANITY SOCIETY OF GREATER VANCOUVER Statement of Cash Flows Year Ended December 31, 2006

2006 CASH FLOWS FROM OPERATING ACTIVITIES Cash receipts Cash payments for supplies and services Interest received

$

2005

960,827 $ (717,033) 21,416

829,982 (500,727) 13,800

265,210

343,055

(285,467) (13,318)

(298,728) (41,819)

(298,785)

(340,547)

(36,518) 22,564 (6,682)

(68,023) 16,693 (6,377)

(20,636)

(57,707)

DECREASE IN CASH

(54,211)

(55,199)

Cash and term deposit, Beginning of Year

198,789

253,988

CASH FLOWS USED FOR INVESTING ACTIVITIES Property under construction Purchase of equipment

CASH FLOWS USED FOR FINANCING ACTIVITIES Mortgage repayment Mortgage payments received Mortgage interest paid

Cash and term deposit, End of Year

$

144,578

$

198,789


HABITAT FOR HUMANITY SOCIETY OF GREATER VANCOUVER Notes to Financial Statements December 31, 2006

1.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES These financial statements have been prepared in accordance with Canadian generally accepted accounting principles, which include the following significant policies: Organization Habitat for Humanity Society of Greater Vancouver (the “Society”) was incorporated under the Society Act, British Columbia for the principal purpose of building and selling homes in partnership with low-income families by means of volunteer labour and donations. The Society is a registered charity and, as such, is exempt from income taxes. Contributions, Grants and Donations Grants and donations are recorded when received. Grants and donations received to fund future period expenditures are recorded as deferred revenue until that later period. In-kind donations are recorded at the estimated fair value of the donated goods, when estimated fair value is determinable. In-kind donations of used building materials for resale are recorded, as “ReStore revenue”, at the time when identifiable goods are sold, as there is no certainty that all items of this nature which are received as donations will be sold (Note 3). The activities of the Society are largely conducted by unpaid volunteers. The fair value of these services is difficult to determine and therefore not included in the financial statements. Equipment Computers and equipment are recorded at cost and depreciated on a straight-line basis over their service lives. Trucks are recorded at cost and depreciated using the declining balance method at the annual rate of 30%. Financial Instruments In April 2005, the Canadian Institute of Chartered Accounts (“CICA”) issued Section 3855 of the Handbook entitled Financial Instruments - Recognition and Measurement and Section 1530 entitled Comprehensive Income. These sections build upon Handbook Section 3861, Financial Instruments - Disclosure and Presentation, by prescribing when a financial instrument is to be recognized on the balance sheet and at what amount. It also specifies how gains and losses on financial instruments are to be presented in financial statements.


HABITAT FOR HUMANITY SOCIETY OF GREATER VANCOUVER Notes to Financial Statements December 31, 2006

1.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Financial Instruments (continued) Financial instruments are classified into various categories. Held to maturity investments, loans and receivables are measured at amortized cost, with amortization of premium or discounts, losses and impairment included in current period interest income or expense. Held for trading financial assets and liabilities are measured at fair market value with all gains and losses included in operations in the period in which they arise. Available for sale financial assets are measured at fair market value with revaluation gains and losses included in other comprehensive income until the asset is removed from the balance sheet, and losses due to impairment are included in operations. All other financial liabilities are to be carried at amortized cost. The Society has adopted these standards in its fiscal year ended December 31, 2006, with no restatement of prior year amounts. At present, the Society’s most significant financial instruments are cash and cash equivalents, accounts receivable, mortgages receivable, accounts payable and mortgages payable. The Society considers its mortgages receivable and mortgages payable to be loans and receivables; accordingly, the carrying amounts have been recorded at amortized cost with amortization of premium and discounts, losses and impairment has been included in current period interest income, interest expense or mortgage discount expense. There are no material differences in the accounting for the Society’s remaining financial instruments from previous standards. Mortgages Receivable The Society provides the purchasers of homes it has built with an interest-free mortgage. In accordance with generally accepted accounting principles, these mortgages are recorded at a discount based on an imputed rate of interest equivalent to the Society’s estimated cost of borrowing. This interest is recognized as income as payments, which are considered to be blended payments of principal and interest, are received on the mortgages. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions about future events that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from these estimates. Significant estimates used in these financial statements include, amongst other things, the recoverability of accounts receivable and mortgages receivable, and the estimated future operating results and net cash flows from property under construction and other capital assets.


HABITAT FOR HUMANITY SOCIETY OF GREATER VANCOUVER Notes to Financial Statements December 31, 2006

2.

PROGRAM ACTIVITIES During 2000 the Society commenced construction of a multiple unit housing project at 8745 Government Street, Burnaby, B.C. The Society incurred design and construction costs on this project of $285,467 during the year (2005 - $298,728). The Society had purchased the land for $194,250 in 2000. The Society intends to construct a total of 27 units in this project, and completed and sold 4 units in June 2002 and additional 4 units in April 2006. The Society is expecting to complete construction and the sale of 4 additional units during 2007.

3.

RESTORE The Society opened ReStore, a retail outlet that accepts donation of new and used building materials and resells those goods to the public, on October 5, 2002. A second Restore outlet opened in January 2007. All proceeds from the sales through the ReStores are used to support the activities of the Society.

4.

MORTGAGES RECEIVABLE The Society sold four strata lot units during 2002 and another four during 2006 for total proceeds, respectively, of $375,200 and $462,560. On the sale, the Society assumed interest-free first and second mortgages, secured by the strata title lots located at 8745 Government Street, Burnaby, B.C., for the same amount. Since these mortgages are interest-free and the total payments on the mortgages will equal the original principal amount, the Society has, in accordance with generally accepted accounting principles, recorded them at an imputed annual interest rate of 4.5%. The Society may forgive part or all of the second mortgages if the purchasers of the homes do not sell the homes prior to the last payment being made on the first mortgage. The Society’s expectation is that the purchasers will occupy the homes until the first mortgages are fully paid and that it will forgive the full amount of the second mortgages and therefore does not record the second mortgages as receivable. The first mortgages receivable at December 31, 2006 are:


HABITAT FOR HUMANITY SOCIETY OF GREATER VANCOUVER Notes to Financial Statements December 31, 2006

4.

MORTGAGES RECEIVABLE (continued) 2006 #1 $98,000 mortgage, net of estimated interest of $31,165, due in August 2011, receivable in monthly amounts of $976

$

48,455 $

43,221

#2 $98,000 mortgage, net of estimated interest of $28,789, due in June 2021, receivable in monthly amounts of $415

52,793

57,858

#3 $98,000 mortgage, net of estimated interest of $32,634, due in March 2027, receivable in monthly amounts of $338

53,793

60,935

#4 $99,620 mortgage, net of estimated interest of $27,509, due in June 2017, receivable in monthly amounts of $524

52,236

56,597

#5 $114,880 mortgage, net of estimated interest of $36,867, due in December 2024, receivable in monthly amounts of $479

70,657

-

#6 $114,880 mortgage, net of estimated interest of $60,151, due in April 2050, receivable in monthly amounts of $210

48,069

-

#7 $114,880 mortgage, net of estimated interest of $60,151, due in May 2050, receivable in monthly amounts of $210

48,022

-

#8 $117,920 mortgage, net of estimated interest of $41,591, due in February 2029, receivable in monthly amounts of $429

72,037

-

$

5.

2005

446,062 $

218,611

MORTGAGES PAYABLE A first mortgage for $194,240 was provided to the Society by the British Columbia Housing Management Commission (the “BCHMC”). Interest was charged at the BCHMC’s borrowing rate plus 1/16% (to a maximum of the Royal Bank prime rate plus 1%). The BCHMC also provided the Society with a $150,000 second mortgage for the purposes of construction at the 8745 Government Street, Burnaby, B.C. project. The $150,000 was advanced to the Society on April 9, 2002, $50,000 of which was used to repay a promissory note. Advances under the second mortgage were interest-free for six months from the date of the first advance. Interest after that was charged at the same rate as the first mortgage.


HABITAT FOR HUMANITY SOCIETY OF GREATER VANCOUVER Notes to Financial Statements December 31, 2006

5.

MORTGAGES PAYABLE (continued) Both mortgages were due on December 31, 2002. However, on February 28, 2003 the BCHMC confirmed its intent to renew and combine the first and second mortgages. Monthly payments on the combined mortgages are to be for interest only until such time as strata lots are sold. Principal payments of $12,750 are to be made for each strata lot as it is sold and subsequently payments of $450 per month are to be made for each strata lot sold. The monthly payments will first be applied to interest and the balance, if any, to principal. All unpaid principal and interest is due on the combined mortgages on December 31, 2007. The Society sold four strata lots in 2002 and four in 2006 and has made the required payment of $51,000 in each of those years to the British Columbia Housing Management Commission. Monthly mortgage payments of $3,600 are being made on the mortgage. The interest rate on this mortgage at December 31, 2006 was 4.24%.

6.

IN-KIND DONATIONS During the year ended December 31, 2006 the Society recorded in-kind contributions of $nil (2005 - $nil), representing the fair value of donated goods donated for the Society’s construction activities.

7.

CONTINGENCY The Society has granted the Province Rental Housing Corporation (“PRHC”) an option to purchase the land, and any buildings constructed to that time, at 8745 Government Street, Burnaby, B.C. PRHC has waived its right to exercise the option except if the Society fails to commence construction on the site by December 1, 2003, declares insolvency or defaults in performing the terms of an agreement with PRHC to provide affordable housing. Should PRHC become entitled to exercise its option, the purchase price will be equal to the cost of the land less stipulated amounts based on the number of months between the exercise date and December 31, 2000.

8.

COMMITMENTS The Society has the following lease commitments for premises occupied by the ReStore outlets and its office: 2007 2008 2009 2010 2011

$ 311,352 311,352 314,571 251,865 177,054


Annual Report 2006

Board of Directors (as at Dec 2006) Wayne Stewart - Imperial Paving Tom Sigurdson - Teamsters Local 213 Joint Training School Stephen Codrington - Business Objects Sandy Hill - Simon Fraser University Kara McNair - Independent Software Professional Joanne Campbell - Retired Jim Lippert - Retired Jeanette Thompson - Broadway Lodge Ivan Ing - Ernst & Young Orenda Corporate Finance Inc Derek Hodgkinson - Fraser Valley Health Authority Anneke Rees - Habitat for Humanity

Staff (as at Dec 2006) Anneke Rees - Executive Director Adrian Archambault - Volunteer Coordinator Claudia Shaw - Family Liaison Coordinator Carla Glasgow - Office Administrator & Assistant to the ED Marvin Wingett - Information Technology and Site Quartermaster/First Aid Tom Riessner - Burnaby ReStore Manager Al Tamura - Burnaby ReStore Assistant Manager

Habitat for Humanity Society of Greater Vancouver Mailing address - PO Box 60577 Granville Park PO, Vancouver, BC V6H 4B9 Office Address: 69 West 69th Avenue, Vancouver, BC V5X 2W6 Phone: 604.681.5618 Fax: 604.326.0122 Email: info@vancouverhabitat.bc.ca www.vancouverhabitat.bc.ca


Habitat for Humanity Greater Vancouver Annual Report 2006