2020-06-30-jcfc-fs

DocuSign Envelope ID: 25766F57-4E52-41ED-B3C8-3ABB7964D6CA

Financial Statements of

JEWISH COMMUNITY FOUNDATION OF CALGARY And Independent Auditor’s Report thereon Year ended June 30, 2020

DocuSign Envelope ID: 25766F57-4E52-41ED-B3C8-3ABB7964D6CA

KPMG LLP 205 5th Avenue SW Suite 3100 Calgary AB T2P 4B9 Telephone (403) 691-8000 Fax (403) 691-8008 www.kpmg.ca

INDEPENDENT AUDITORS' REPORT To the Members of the Jewish Community Foundation of Calgary

Opinion We have audited the financial statements of the Jewish Community Foundation of Calgary (the Entity), which comprise: 

the statement of financial position as at June 30, 2020



the statement of operations and changes in foundation funds for the year then ended



the statement of cash flows for the year then ended



and notes to the financial statements, including significant accounting policies

(Hereinafter referred to as the “financial statements”).

In our opinion, the accompanying financial statements, present fairly, in all material respects, the financial position of the Entity as at June 30, 2020, and its results of operations 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 ''Auditors' Responsibilities for the Audit of the Financial Statements'' section of our auditors' report.

We are independent of the Entity 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.

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.

DocuSign Envelope ID: 25766F57-4E52-41ED-B3C8-3ABB7964D6CA

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

Responsibilities of Management and Those Charged with Governance for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with 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 Entity'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 Entity or to cease operations, or has no realistic alternative but to do so.

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

Auditors' 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 auditors' 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 the 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.

DocuSign Envelope ID: 25766F57-4E52-41ED-B3C8-3ABB7964D6CA

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 Entity's internal control.



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 Entity's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ 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 auditors’ report. However, future events or conditions may cause the Entity 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.



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.

Chartered Professional Accountants Calgary, Canada September 30, 2020

DocuSign Envelope ID: 25766F57-4E52-41ED-B3C8-3ABB7964D6CA

JEWISH COMMUNITY FOUNDATION OF CALGARY Statement of Financial Position June 30, 2020, with comparative information for 2019 2020

2019

Assets Current assets: Cash and cash equivalents Accounts receivable

$ 2,057,099 1,672 2,058,771

Investments, at fair value (note 2)

$

747,776 2,084 749,860

16,903,101

16,355,094

State of Israel bonds, at amortized cost (note 3)

809,310

774,363

Cash surrender value of life insurance (note 4)

495,191

415,084

$20,266,373

$18,294,401

$

$

Liabilities and Fund Balances Current liabilities: Accounts payable Deferred flow-through grants (note 5)

Custodial funds (note 6)

Foundation fund balances (note 7): Unrestricted Directed endowment Donor advised endowment

See accompanying notes to financial statements.

Approved on behalf of the Board: Director Director

98,789 2,263,445 2,362,234

31,766 1,156,373 1,188,139

10,699,377 13,061,611

10,474,992 11,663,131

109,779 2,883,517 4,211,466 7,204,762

63,750 2,749,754 3,817,766 6,631,270

$20,266,373

$ 18,294,401

DocuSign Envelope ID: 25766F57-4E52-41ED-B3C8-3ABB7964D6CA

JEWISH COMMUNITY FOUNDATION OF CALGARY Statement of Operations and Changes in Foundation Funds Year ended June 30, 2020, with comparative information for 2019 June 30, 2020 Unrestricted Revenue: Contributions (note 8) Investment income (note 9) Sponsorships

$

Total revenue Expenditures: Grants Disbursements Insurance premiums (note 4) Administrative costs Marketing & advertising Audit & legal Investment management charges Total expenditures Excess of revenue over expenditures Funds transferred Increase in deferred flow-through grants

43,651 3,477 155

$

Directed

Donor advised

endowment

endowment

287,864 116,365 5,224

$

247,728 168,308 7,303

Flow-through

$

1,690,796 127,963 5,718

Total

$

2,270,039 416,113 18,400

47,283

409,453

423,339

1,824,477

2,704,552

– – – 461 41 125 627

73,338 3,126 9,511 12,565 2,052 3,659 18,294

84,193 – 41,494 20,109 1,890 5,850 29,248

454,249 80,139 157,026 9,567 839 2,598 12,987

611,780 83,265 208,031 42,702 4,822 12,232 61,156

1,254

122,545

182,784

717,405

1,023,988

46,029 –

286,908 (153,145)

240,555 153,145

1,107,072 –

1,680,564 –

(1,107,072)

(1,107,072)

–

–

–

Change in Foundation funds in the year

46,029

133,763

393,700

–

573,492

Balance, beginning of year

63,750

2,749,754

3,817,766

–

6,631,270

Balance, end of year

$

109,779

$

June 30, 2019 Unrestricted Revenue: Contributions (note 8) Investment income (note 9) Sponsorships

$

Total revenue

2,891 2,937 33

$

2,883,517

$

4,211,466

Directed

Donor advised

endowment

endowment

323,982 131,344 1,510

$

254,165 216,315 2,526

$

–

$

Flow-through

$

627,647 125,137 1,551

7,204,762

Total

$

1,228,685 475,733 5,620

5,861

456,836

473,006

774,335

1,710,038

– – – 538 31 105 439

98,552 23,126 9,511 21,129 2,095 4,126 17,307

111,296 – 40,146 27,854 1,811 6,103 25,999

651,037 41,150 153,877 9,778 565 1,905 7,991

860,885 64,276 203,534 59,299 4,502 12,239 51,336

1,113

175,846

212,809

866,303

1,256,071

Excess of revenue over expenditures Funds transferred Decrease in deferred flow-through grants

4,748 18,215

280,990 (18,215)

260,197 –

(91,968) –

–

–

–

91,968

91,968

Change in Foundation funds in the year

22,963

262,775

260,197

–

545,935

Balance, beginning of year

40,787

2,486,979

3,557,569

–

6,085,335

Expenditures: Grants Disbursements Insurance premiums (note 4) Administrative costs Marketing & advertising Audit & legal Investment management charges Total expenditures

Balance, end of year

$

63,750

$

See accompanying notes to financial statements.

2,749,754

$

3,817,766

$

–

453,967 –

$

6,631,270

DocuSign Envelope ID: 25766F57-4E52-41ED-B3C8-3ABB7964D6CA

JEWISH COMMUNITY FOUNDATION OF CALGARY Statement of Cash Flows Year ended June 30, 2020, with comparative information for 2019 2020

2019

Cash provided from (used in): Operating activities: Excess of revenue over expenses Items not involving cash and cash equivalents: Realized gain on investments Change in unrealized gain on investments Increase in cash surrender value of life insurance Change in non-cash working capital (note 13) Investing activities: Purchases of investments Proceeds on sale of investments Financing activities: Increase in custodial funds Increase in cash and cash equivalents Cash and cash equivalents, beginning of year Cash and cash equivalents, end of year

See accompanying notes to financial statements.

$ 1,680,564

$

453,967

(89,490) (73,034) (80,107) 67,435 1,505,368

(56,458) (83,514) (134,328) 12,430 192,097

(5,632,731) 5,420,181 (212,550)

(7,893,490) 4,571,033 (3,322,457)

16,505

3,147,912

1,309,323

17,552

747,776

730,224

$ 2,057,099

$

747,776

DocuSign Envelope ID: 25766F57-4E52-41ED-B3C8-3ABB7964D6CA

JEWISH COMMUNITY FOUNDATION OF CALGARY Notes to Financial Statements Year ended June 30, 2020, with comparative information for 2019

Nature of operations: Jewish Community Foundation of Calgary (the "Foundation") was incorporated under the Societies Act of Alberta on January 25, 1990. The Foundation is a registered charity classified as a public foundation under the Income Tax Act (Canada) and, accordingly, is exempt from income taxes and can issue donation receipts for income tax purposes.

The purpose of the Foundation is to further the religious and educational needs of the Calgary Jewish Community, the Calgary Community at large and Canadian Jewry.

Custodial funds are owned by other charitable organizations and pooled with Foundation assets for investment purposes.

1. Significant accounting policies: (a) Basis of presentation: These financial statements have been prepared in accordance with Canadian accounting standards for not-for-profit organizations. These financial statements have, in management’s opinion, been properly prepared within the framework of the accounting policies summarized as follows: (b) Financial instruments: Financial instruments are recorded at fair value on initial recognition. Freestanding derivative instruments that are not in a qualifying hedging relationship and equity instruments that are quoted in an active market are subsequently measured at fair value. All other financial instruments are subsequently recorded at cost or amortized cost, unless management has elected to carry the instruments at fair value. The Foundation carries its investments at fair value.

Transaction costs incurred on the acquisition of financial instruments measured subsequently at fair value are expensed as incurred. All other financial instruments are adjusted by transaction costs incurred on acquisition and financing costs, which are amortized using the straight-line method.

Financial assets are assessed for impairment on an annual basis at the end of the fiscal year if there are indicators of impairment. If there is an indicator of impairment, the Foundation determines if there is a significant adverse change in the expected amount or timing of future cash flows from the financial asset. If there is a significant adverse change in the expected cash flows, the carrying value of the financial asset is reduced to the highest of the present value of the expected cash flows, the amount that could be realized from selling the financial asset or the amount the Foundation expects to realize by exercising its right to any collateral.

If events and circumstances reverse in a future period, the impairment loss will be reversed to the extent of the improvement, not exceeding the initial carrying value.

DocuSign Envelope ID: 25766F57-4E52-41ED-B3C8-3ABB7964D6CA

JEWISH COMMUNITY FOUNDATION OF CALGARY Notes to Financial Statements, page 2 Year ended June 30, 2020, with comparative information for 2019

1. Significant accounting policies (continued): (c) Investment income: The Foundation recognizes interest income that is not externally restricted as part of investment income, in the general (unrestricted) fund. Externally restricted investment income is recognized as part of interest income in the appropriate restricted fund. (d) Donated securities: Donated securities are recorded at their market value on date of donation. (e) Donated services: A number of people donate significant time and expertise to the Foundation across its operations. However, since no objective basis exists for recording and assigning fair values to donated services, the value of this time has not been reflected in these financial statements. (f) Contributions: The Foundation follows the restricted fund method of accounting. Contributions are recognized as revenue in the appropriate fund in the year received. The Foundation manages amounts from donors in several funds with various conditions. These funds are classified as follows: (i) Flow-through: Flow-through contributions are distributed within the terms of the contract, with the advice of the donors. Flow-through contributions not distributed in the year of receipt are established as a liability until the grants are made. (ii) Directed Endowment: These are funds that are restricted by donors for specified charitable causes. (iii) Donor Advised Endowment: These are permanent funds through which donors recommend support for specified charitable causes. (iv) Unrestricted: Contributions are utilized at the discretion of the Board. (g) Allocation of service and other costs The Foundation allocates service and other costs to Foundation funds on an annual basis based on the average annual market value of each fund. Service and other costs are allocated to custodial funds at the lesser of the rate in the agreement and the Foundation’s Administration Fee policy. Expenses incurred for a specific fund are charged to that fund.

DocuSign Envelope ID: 25766F57-4E52-41ED-B3C8-3ABB7964D6CA

JEWISH COMMUNITY FOUNDATION OF CALGARY Notes to Financial Statements, page 3 Year ended June 30, 2020, with comparative information for 2019

1. Significant accounting policies (continued): (h) Management estimates: The preparation of financial statements in conformity with Canadian accounting standards for not-for-profit organizations requires management to make estimates and assumptions that affect the amounts and disclosures reported in financial statements and accompanying notes.

Significant estimates include the fair market value of investments. Management believes that the estimates utilized in preparing these financial statements are reasonable and prudent.

However actual results could differ from these estimates.

The COVID-19 outbreak and the resulting economic disruption may negatively impact the Foundation’s granting streams. While the disruption is currently expected to be temporary, there is considerable uncertainty around its duration. The financial impacts of the COVID-19 pandemic and its impact on the Foundation’s revenue is recognized on the financial statements as at June 30, 2020. The related financial impact and duration on future periods cannot be reasonably estimated at this time. These estimates and assumptions are reviewed periodically and, as adjustments become necessary, they are reported in earnings in the periods in which they become known. Consequently, actual results could differ from those estimates. (i) Cash and cash equivalents: The Foundation considers deposits in banks and short-term investments with original maturities of three months or less as cash and cash equivalents. Cash and cash equivalents consist of cash and investments in money market funds. (j) Custodial Funds: The Foundation manages funds for other not for profit organizations as detailed in note 6 under agreements wherein the funds earn a pro-rata share of revenue and are charged an administration fee as set out in note 1(g) above. These revenues and expenses are not reflected in the Statement of Operations and are credited/charged directly to the Custodial funds.

2. Investments: June 30, 2020 Equity securities: Canada United States and International Short term bond fund units:

Cost

Fair value

$ 4,639,685 5,669,836 5,750,019

$ 4,619,325 6,278,870 6,004,906

$ 16,059,540

$ 16,903,101

DocuSign Envelope ID: 25766F57-4E52-41ED-B3C8-3ABB7964D6CA

JEWISH COMMUNITY FOUNDATION OF CALGARY Notes to Financial Statements, page 4 Year ended June 30, 2020, with comparative information for 2019

2. Investments (continued): June 30, 2019 Equity securities: Canada United States and International Short term bond fund units:

Cost

Fair value

$ 4,915,482 5,042,000 5,878,614

$ 5,111,586 5,320,162 5,923,346

$ 15,836,096

$ 16,355,094

2020

2019

3. State of Israel bonds:

State of Israel bonds held to maturity with interest between 1.98% and 4.00%, maturing between 2020 and 2025, at amortized cost (2019 - interest between 2.15% and 4.00%, maturing between 2019 and 2024)

$

809,310

$

774,363

4. Cash surrender value of life insurance: The Foundation is the beneficiary named under whole and term life insurance policies. The cash surrender value (CSV) is recorded as an asset. As the realizable amount in excess to the cash value is not certain, the Foundation will record the proceeds when they can be reasonably determined. The details of the policies are as follows: Premiums paid

2020 Whole life policies Term life policies

Face value

$

174,765 33,266

$

448,435 46,756

$ 3,493,420 605,967

$

208,031

$

495,191

$ 4,099,387

CSV

Face value

Premiums paid

2019 Whole life policies Term life policies

CSV

$

170,269 33,265

$

372,516 45,586

$ 3,323,343 605,592

$

203,534

$

415,084

$ 3,928,935

Insurance premiums paid are recovered through contributions from the policy donors.

DocuSign Envelope ID: 25766F57-4E52-41ED-B3C8-3ABB7964D6CA

JEWISH COMMUNITY FOUNDATION OF CALGARY Notes to Financial Statements, page 5 Year ended June 30, 2020, with comparative information for 2019

5. Deferred flow-through grants:

Balance, beginning of year

2020

2019

$ 1,156,373

$ 1,248,341

Contributions Investment gains Grants administered in year Insurance premiums Service costs Investment management charges Balance, end of year

1,690,796 133,681 (534,388) (157,026) (13,004) (12,987)

647,647 126,688 (692,187) (153,877) (12,248) (7,991)

$ 2,263,445

$ 1,156,373

2020

2019

547,947 452,565 1,000,512

$ 3,285,631 469,067 3,754,698

642,068 55,964 78,095 776,127

197,850 57,895 69,390 325,135

224,385

3,429,563

10,474,992

7,045,429

$ 10,699,377

$10,474,992

6. Custodial funds:

Increases: Deposits Investment gains Decreases: Grants Service costs Investment management charges

Change during the year Balance, beginning of year Balance, end of year

$

The JCFC has agreements in place with the Calgary Beth Tzedec Congregation Society, the Jewish Historical Society of Southern Alberta, the Stephen Blitz Charitable Trust and the Friends of the Calgary Jewish Academy Trust “Custodial Funds� whereby the JCFC will manage these funds on behalf of the organizations. JCFC earns a fee for providing management services.

DocuSign Envelope ID: 25766F57-4E52-41ED-B3C8-3ABB7964D6CA

JEWISH COMMUNITY FOUNDATION OF CALGARY Notes to Financial Statements, page 6 Year ended June 30, 2020, with comparative information for 2019

7. Foundation fund balances: June 30, 2020

Net current assets Investments Cash surrender value of life insurance

Unrestricted

Directed endowment

$

$

109,779 –

$

– 4,081,234

Total $

388,409 6,452,252

–

233,869

129,330

364,101

109,779

$ 2,883,517

$ 4,211,466

$ 7,204,762

Unrestricted

Directed endowment

Donor advised endowment

Total

$

$

$

June 30, 2019

Net current assets Investments Cash surrender value of life insurance

278,630 2,371,018

Donor advised endowment

$

63,750 –

107,620 2,427,800

$

– 3,689,687

$

171,370 6,117,487

–

214,334

128,079

342,413

63,750

$ 2,749,754

$ 3,817,766

$ 6,631,270

8. Contributions: Included in contribution amounts are gifts-in-kind of the shares of publicly traded companies with a fair market value of $1,212,222 (2019 - $685,356) at the time of contribution. These shares were sold at fair value upon receipt in accordance with the Foundation’s policies.

9. Investment income and expenditures: 2020 Dividend Income Increase in cash surrender value on life insurance Interest and other income Realized gain Increase in unrealized gain

2019

$

77,929 80,107 104,006 73,776 80,295

$

67,901 134,328 133,532 56,458 83,514

$

416,113

$

475,733

Investment income and expenditures are net of allocations to Custodial Funds (note 6).

DocuSign Envelope ID: 25766F57-4E52-41ED-B3C8-3ABB7964D6CA

JEWISH COMMUNITY FOUNDATION OF CALGARY Notes to Financial Statements, page 7 Year ended June 30, 2020, with comparative information for 2019

10. Alberta Charitable Fundraising Act: As required under Alberta’s Charitable Fundraising Act and Regulation, the following amounts are disclosed for fundraising activities in the province of Alberta.

Revenue Gross contributions received from non-members

$

2020

2019

960,460

$ 3,309,962

Expenses Total administrative costs Total fundraising costs

(6,912) (1,000) $

952,548

(5,122) (1,000) $ 3,308,840

11. Preservation of purchasing power and financial risk management: Preservation of purchasing power: To support the policy of preserving the purchasing power of permanent endowment funds, the Foundation limits the amount of annual grants to an amount determined in accordance with the Distribution policy applied to the opening market value of each fund.

Risk Management The Foundation has exposure to the following risks from its use of financial instruments: 

Credit risk



Liquidity risk



Market risk

(i) Credit risk: Credit risk is the risk that a counterparty to a financial instrument will fail to discharge an obligation or commitment resulting in a financial loss to the Foundation. The fair value of a financial instrument takes into account the credit rating of its issuer. The Foundation’s cash and investments are subject to credit risk. The maximum exposure to credit risk on these instruments is their carrying value. The risk is mitigated by the Foundation’s investment policies which include holding securities and cash and cash equivalents with reputable financial institutions, by carefully reviewing the credit rating of bond issuers and by hiring a professional investment manager.

DocuSign Envelope ID: 25766F57-4E52-41ED-B3C8-3ABB7964D6CA

JEWISH COMMUNITY FOUNDATION OF CALGARY Notes to Financial Statements, page 8 Year ended June 30, 2020, with comparative information for 2019

11. Preservation of purchasing power and financial risk management (continued): (ii) Liquidity risk: Liquidity risk is the risk that the Foundation will not be able to meet its liabilities as they fall due. Substantially all of the Foundation’s assets are comprised of cash and investments traded in active markets that can be readily liquidated and therefore the Foundation’s liquidity risk is considered minimal. In addition, the Foundation aims to retain a sufficient cash position to manage liquidity. (iii) Market risk: Market risk is the risk that changes in market prices, as a result of changes in foreign exchange rates, interest rates and market changes, will affect the Foundation’s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while maximizing the return. The Foundation manages this risk by hiring professional investment managers who adhere to its Investment Policy Statement. (iv) Foreign exchange risk: Investments in securities denominated in foreign currencies are exposed to currency risk due to fluctuations in foreign exchange rates. The Foundation is exposed to currency risk on its foreign denominated investments, as the prices denominated in foreign currencies are converted to Canadian dollars in determining fair value. At June 30, 2020, total foreign denominated investments represent approximately 40% (June 30, 2019 – 36%) of the market value of the Foundation’s total investments. The Foundation manages this risk by hiring professional investment managers who adhere to its Investment Policy Statement. (v) Interest rate risk: Interest rate risk arises from the possibility that changes in interest rates will affect future cash flows or the fair values of interest bearing financial instruments held by the Foundation. As June 30, 2020, the total interest bearing investments represented approximately 43% (June 30, 2019 – 39%) of the market value of the Foundation’s total investments. The Foundation manages this risk by hiring professional investment managers who adhere to its Investment Policy Statement.

The Foundation’s exposure to and management of the above risks have not changed materially since June 30, 2019 except for items noted in note 15.

DocuSign Envelope ID: 25766F57-4E52-41ED-B3C8-3ABB7964D6CA

JEWISH COMMUNITY FOUNDATION OF CALGARY Notes to Financial Statements, page 9 Year ended June 30, 2020, with comparative information for 2019

12. Related parties: The directors of the Foundation have established and maintain various funds with the Foundation, which had an aggregate fair value as at June 30, 3020 of $392,443 (2019 - $389,472).

13. Change in non-cash working capital: 2020 Accounts receivable Accounts payable

2019

$

412 67,023

$

292 12,138

$

67,435

$

12,430

14. Changes in accounting policies: In March 2018, the Canadian Accounting Standards Board issued “Basis for Conclusions Accounting Standards Improvements for Not-for-Profit Organizations” resulting in the introduction of three new sections in the Canadian Accounting Standards for Not-for-Profit Organizations Part III of the Handbook. The amendments are effective for financial statements for fiscal years beginning on or after January 1, 2019 and are as follows: A. Section 4433, Tangible capital assets held by not-for-profit organizations, which directs organizations to apply the accounting guidance of Section 3061, Property Plant and Equipment in Part II of the Handbook. In so doing, the new section requires that organizations annually assess for partial impairment of tangible capital assets, to be recorded where applicable, as a non-reversible impairment expense. In addition, where practical, to componentize capital assets when estimates can be made of the useful lives of the separate components.

This section is applied on a prospective basis with the exception of the transitional provision to recognize an adjustment to opening net assets for partial impairments of tangible assets that existed as at July 1, 2019.

B. Section 4434, Intangible assets held by not-for-profit organizations, which directs organizations to annually assess intangible assets, and where applicable to record an impairment expense should the net carrying value be higher than the asset’s fair value or replacement cost.

This section is applied on a prospective basis with the exception of the transitional provision to recognize an adjustment to opening net assets for partial impairment of intangible assets that existed as at July 1, 2019.

DocuSign Envelope ID: 25766F57-4E52-41ED-B3C8-3ABB7964D6CA

JEWISH COMMUNITY FOUNDATION OF CALGARY Notes to Financial Statements, page 10 Year ended June 30, 2020, with comparative information for 2019

14. Changes in accounting policies (continued): C. Section 4441, Collections held by not-for-profit organizations, which defines a collection and directs organizations to record such assets on the statement of financial position at either cost or nominal value. It is anticipated that all collections will be accounted for using the same method, with the exception of organizations that opt to account for collections at cost, whereby the cost for certain collections either held or contributed cannot be determined. Such items are to be accounted for at a nominal value. In addition, collections are written down when there is evidence that the net carrying amount exceeds fair value.

Organizations are permitted to retrospectively capitalize collections at their cost or fair value at the date of acquisition, or fair value or replacement cost as at July 1, 2019, based on the most readily determinable value. In addition, an adjustment to opening net assets is permitted to recognize any partial impairment of the value of collections that existed as at July 1, 2019.

The implementation of these changes had no impact on the financial statements.

15. COVID-19 Pandemic: On March 11, 2020, the World Health Organization declared the Novel Coronavirus (COVID-19) outbreak a pandemic. This has resulted in governments worldwide, including the Canadian and Alberta governments, enacting emergency measures to combat the spread of the virus. These measures, which include the implementation of travel bans, self-imposed quarantine periods, closures of non-essential businesses, and physical distancing, have caused material disruption to businesses in Calgary, resulting in an economic slowdown.

The ultimate duration and magnitude of the impact on the economy and the financial effect on Foundation’s future revenues, operating results and overall financial performance is not known at this time. These impacts may include challenges on Foundation’s ability to obtain funding, and disruptions to its operations, employee impacts from illness, school closures and other response measures.

As at the reporting date, the Foundation has determined that COVID-19 has had no impact on its contracts or lease agreements, the assessment of provisions and contingent liabilities, or the timing of revenue recognition. Management has assessed the financial impacts of the COVID-19 pandemic and did not identify any negative impacts on its financial statements as at June 30, 2020.

The Foundation continues to manage liquidity risk by forecasting and assessing cash flow requirements on an ongoing basis. As at June 30, 2020, the Foundation continues to meet its contractual obligations within normal payment terms and the Foundation’s exposure to credit risk remains largely unchanged.

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JEWISH COMMUNITY FOUNDATION OF CALGARY Notes to Financial Statements, page 11 Year ended June 30, 2020, with comparative information for 2019

16. Comparative information: Certain comparative information has been reclassified to conform with the financial statement presentation adopted in the current year.