4. General Ledger (GL): is an account or record used to sort
and store balance sheet and income statement transactions
over the life of a company (TIFF).
Chart of Accounts (COA): A listing of all the accounts to be
found in the company’s (TIFF) General Ledger
GL /Account Code: A unique identifying code in the GL
which is used for a category of transactions.
The Language [1]
5. Project Code: A unique identifying code (either alpha or
numeric) used to categorize a batch of transactions which
are all related to one particular activity.
Department Code: A unique identifying code used to
identify all transactions for a particular department (at
TIFF).
Accounts Receivable [AR]: A list of all the amounts due (to
TIFF) by other companies or individuals for services
provided to them.
Accounts Payable [AP]: Amount due to another individual
for a service or item provided (to TIFF).
The Language [2]
6. Debit: Under the double entry system transactions are
either debited or credited in the GL. A debit transaction
increases an expense or an asset.
Credit: A credit transaction increases a revenue or a liability
(or reduces an expense).
Purchase Order (PO): A document authorizing an individual
from the organization (TIFF) to make a purchase from
another company or individual (Vendor).
A PO is numbered and MUST be approved before being sent to vendor
The Language [3]
7. Cost Centre: A department which costs the organization money to
operate because it provides essential services. Measured by their
ability to contain costs.
Revenue Centre: A department that directly generates revenue for
the organization. Measured by their ability to generate revenues.
Profit Centre: A department that is responsible for both revenue
and costs. Measured by their ‘bottom line’ results.
Budget Holder: Any person who is responsible for the Department’s
budget. Responsible for approving spends and/or generating
revenues.
The Language [4]
8. Balance Sheet: A Summary statement showing all the
Assets and Liabilities that an organization (TIFF) has at a
particular period in time.
Assets: Something of value which the organization (TIFF) owns and
which will be used over a number of fiscal years (ie Capital Assets).
On the COA for TIFF all Assets have GL codes in the 10000 series
Capital Expenditures are physical assets that are amortized over a # of years
Eg: Computer Purchases, Furniture & Equipment Purchases
Balance Sheet [Assets]
9. Assets – Current & Capital: Current Assets can be
converted to cash within 1 year:
Bank/Cash
Prepaid: Expense paid for in a period before it is actually
incurred
AR: Clients billed for services/prod who have not yet paid
Inventory :Items held for Resale (Concessions & Retail store)
Capital Assets are all the Capital Expenditures less their
accumulated amortization
Balance Sheet [Asset Types]
10. Liabilities : The Value of something that the organization
(TIFF) owes to someone else.
On the COA for TIFF all Liabilities have GL codes in the 20000
series Eg:
Customer Deposit
Gift Cards (unredeemed)
Payroll Taxes deducted
Deferred Revenue Items
Balance Sheet [Liabilities]
11. Liabilities- Short & Long Term:
Short Term (Current) Liabilities are those becoming due
within 1 year:
Deferred Revenue: Funds received before it is recognized
Accrued Expenses: Incurred but not yet paid for
Current Portion of Long Term Liabilities (due within 1 Year)
Long Term Liabilities are those becoming due longer than
1 year
Balance Sheet [Liability Types]
12. BALANCE SHEET As At Dec 31, 2014
ASSETS:
Current Assets:
Cash
Accounts Receivable
Inventory
Prepaid Expenses
Investments (Restricted for BF)
Investments (Restricted for EF)
Capital Investments
TOTAL ASSETS
LIABILITIES & FUND BALANCES
Current Liabilities:
Current portion of Long Term Deb
Accounts Payable & Accrued Liab.
Deferred Revenue
Long Term Debentures:
Fund Balances: Operating
Building
Endowment Fund
TOTAL LIABILITIES & FUND BAL
2014
5,453,088
3,333,725
176,486
359,695
3,691,307
1,818,345
113,539,877
128,372,523
3,790,711
3,593,155
1,851,638
35,863,977
(3,912,216)
85,365,970
1,819,288
128,372,523
2013
2,370,374
3,179,126
149,347
505,834
6,560,717
1,628,943
116,985,442
131,379,783
3,755,112
3,791,999
2,295,998
38,425,441
(6,132,340)
87,387,296
1,856,277
131,379,783
13. Income Statement: A Summary showing all the
revenues received and all the expenses paid out for a
particular period for the company (TIFF).
Usually done Monthly; Quarterly or Annually
Usually done for each Department or Subgroup
Income Statement
14. Revenue: Funds flowing into TIFF for goods or services
provided to others
All Revenue GL Accounts at TIFF begins with a 4 (40000 series) in
the COA
Most Companies will have different types of revenues
For TIFF: Earned vs Contributed Revenue
Income Statement [Revenues]
15. INCOME STATEMENT For period ending Dec 31, 2014
REVENUE:
Earned Revenue:
Ticket Sales
Rentals
Membership
Retail & Concessions
Service Fees & Commissions
Investments
Total Earned Revenue
Contributed Revenue:
Sponsorships
Grants:
Federal
Provincial
Municipal
Other
Philanthropic Donations
TOTAL REVENUES
2014
13,628,010
1,851,310
1,168,809
1,266,295
1,117,221
606,385
19,638,030
14,256,113
1,484,543
2,224,700
1,059,500
95,860
4,864,603
6,299,929
45,058,675
2013
11,615,245
1,668,754
1,108,559
1,074,380
867,160
639,086
16,973,184
14,610,229
1,964,227
2,740,404
957,500
127,316
5,789,447
6,825,925
44,198,785
16. Expenses: Funds paid by TIFF for Goods/Services received
from others
All Expense GL Accounts at TIFF begins with a 5 (50000 series) in
the COA
Expenses are usually combined into different categories
For TIFF: Staff Exp; Admin Exp; Operating Exp; Travel & Ent etc
Income Statement [Expenses]
17. Profits/Loss: The balance remaining after revenues are
received and expenses are deducted
TIFF is a Not for Profit and as such should run a balanced budget
(zero profits)
Income Statement [Profit/(Loss)]
18. INCOME STATEMENT For period ending Dec 31, 2014 cont’nd
EXPENSES:
Staff Expenses
Travel & Ent (Staff + Guest)
Administrative Expenses
Operating Expenses
Fees (Audit, Legal & Other)
Interest Expenses
Amortization
Donations transf to Foundations
TOTAL EXPENSES
NET INCOME/(EXPENSES)
2014
21,024,607
2,739,641
2,596,102
11,095,682
817,118
1,798,875
4,824,842
-
44,896,866
161,809
2013
20,671,265
2,747,159
2,037,137
12,846,291
765,472
1,906,943
4,533,420
22,393
45,530,080
(1,331,295)
20. Some Revenues are collected for immediately and entered
directly to the GL:
Box Office – Film/Exhibitions/Workshop Tickets
Retail – Sale from TIFF Shop
Concessions – Sale of snacks from Concessions Stands
Industry Passes
Memberships
TIFF’s AR (Revenue) Process [1]
21. Any revenue not collected for immediately must be
invoiced by submitting an Invoice Request Schedule to AR:
Sponsorship
Event Space Rentals
Government Grants
P&M Pledges & Donations (some)
TIFF’s AR (Revenue) Process [2]
22. Once the AR invoice is created it is credited to the Revenue
GL and debited to the Customer’s account in the AR Sub-
ledger
An Accounts Receivable Schedule is created for each period
When it is paid the AR Balance is credited and bank account
debited clearing the customer from the AR schedule
At the end of the month and the year all revenues for each
Department are collated to form the Income Statement.
TIFF’s AR (Revenue) Process [3]
23. Most expenses are submitted on an approved Purchase
Order before incurred
The GL Expense Code; Dept and Project Codes must be
ascertained
At TIFF any expense over $50 should be on a PO
At TIFF any expense under $50 should be via Petty Cash or can be
combined and submitted on an Expense Report
When the item or service is received the PO must be updated to
confirm this
TIFF’s AP (Expense) Process [1]
24. Once the invoice is received it is debited to the expense GL
and credited to the Vendor account in the AP Sub-ledger
An Accounts Payable Schedule is prepared for each period
When it is paid the Vendors AP Balance is debited and bank
account credited clearing the vendor from the AP schedule
At the end of the month and the year all expenses for each
Department are collated to form the Income Statement.
TIFF’s AP (Expense) Process [2]
25. The Cash Flow Statement is the Wallet of the
Business
It focuses on the Cash Position vs the Accrual
Position (like the Income Statement)
It Accounts for cash transactions from Operations,
Financing & Investing activities
Cash is a liquid asset on the Balance Sheet
The Cash Flow Statement
26. The Cash Flow Equation is the following:
Net Cash Flow =
Beginning Cash Balance +
Cash Inflows –
Cash Outflows
This is just like operating your own cheque book!
The Cash Flow Equation
27. STATEMENT OF CASH FLOWS Dec 31, 2014
Cash provided by (used in):
Operations:
Excess/(deficiency) Rev over Exp
Charges to Ops not affecting cash:
Amortization
Loss on disposal of capital assets
Unrealized gain on Investments
Interest accrued on debentures
Changes in non-cash working cap:
Accounts Rec Inventory & Prepaids
Accounts Pay and accrued liabilities
Deferred Revenue
Financing:
Principal Repayments on deben.
Payment of Int Accrued on deben
2014
161,809
4,824,842
-
(98,481)
1,229,247
(35,599)
(198,844)
(444,360)
5,438,614
(2,447,871)
(1,307,241)
(3,755,112)
2013
(1,331,295)
4,533,420
2,708
(274,860)
1,307,241
(1,010,460)
(1,144,777)
(448,403)
1,633,574
(1,792,257)
(985,398)
(2,777,655)
28. STATEMENT OF CASH FLOWS Dec 31, 2014[2]
Cash provided by (used in):
Investments:
Additions to capital assets
Red to Capital Assets due to HST
Proceeds on disposal of capital ass
Net change in investmnts (BF)
Net change in investmnts (EF)
Increase / (decrease) in cash
Cash at the Beginning of the year
Cash at the End of the year
Supplemental Cash Flow
information:
Interest paid on Debentures
2014
(1,379,277)
-
-
2,869,410
(90,921)
1,399,212
3,082,714
2,370,374
$5,453,088
$1,875,516
2013
(1,184,762)
1,438,353
2,500
(733,810)
(34,727
(512,446)
(1,656,527)
4,026,901
$2,370,374
$1,579,008
29. Key Accounting Terms Explained:
General Terms
General Documents & Reports
Different Department Types
Audited Financial Statements have been explained:
Balance Sheet – Assets & Liabilities
Income Statement – Revenues & Expenses
Cash Flow Statement – Cash Balance
The Accounts Payable & Accounts Receivable Processes explained
Personal Financial Statements
Summarizing the Key Items