79 ANNUAL TH GENERAL MEETING · Hot Wax Mobile Music Event Sponsor Upright Decor Event Sponsor Minuteman Press Tri-Cities Prize Sponsor Seasons in the Park Restaurant Recycling Council

www.mbc.bbb.org

*Trade-mark of the Council of Better Business Bureaus, used under Licence

ANNUAL GENERAL MEETING

79TH


Better Business Bureauserving Mainland British Columbia

Minutes of the 77th Annual General MeetingIndependent Auditors’ ReportStatement of Operations and Members’ SurplusStatement of Financial Position

1939 - 2018

TABLE OF CONTENTS

AS ATTACHMENTS


Message from the Board Chair

Message from the President

BBB at a Glance

BBB in the Community

Torch Awards

Savvy Consumer Program

Top 10 Scams

Trade Shows & Events

BBB Senior Management Team

Build Trust

Advertise Honestly

Tell The Truth

Be Transparent

Honour Promises

Be Responsive

Safeguard Privacy

Embody Integrity

OurStandardsofTrust

This last year was filled with big goals and many milestones. I am proud of the accomplishments the team celebrated and grateful for the leadership and support the board provided.

The Accredited Business Community grew to 4,388 strong, and our consumers continued to rely on BBB for information and assistance. In 2018, our website received over 1.7 million visits, which was just one of our many record-breaking achievements during the year.

Working within the guidelines of the 2017 - 2021 Strategic Plan, the key priorities in focus are to:Maintain and grow a community of excellence;Grow top of mind awareness; andDrive use of BBB while ensuring our capacity to support growth.

Our public engagement efforts, including almost 300 media interviews and attendance to over 80 events across BC, have led to greater consumer awareness of the BBB brand. Last year, we received over 2 million Business Profile inquiries, and over 14,000 followers combined on all our social media platforms. We also focused on making lasting connections with community groups, law enforcement, financial institutions, organizations within the business community and media outlets, to increase public awareness about our consumer tools and to also strengthen our allies that see the value we offer to this province.

We continue to see growing awareness of BBB, as we provided services to over 13,500 consumers who engaged with us and shared their customer experiences through their submissions of online reviews or seeking our help to resolve a dispute.

Technology continues to be a priority and we are currently upgrading our hardware, redesigning our website and updating our content in order to increase organic website traffic and improve user experience. Look out for enhancements to our business and consumer products in the next year.

Thank you to our Accredited Businesses who helped to maintain a community of excellence and continue to support our mandate for trust and an ethical marketplace. With growing AB engagement rates in our educational webinars, networking mixers and marketing programs, we continue to push for our biggest supporters to receive maximum value for their investment in BBB and their commitment to our standards. Display your Accreditation Seal proudly!

As we approach 80 years of Advancing Trust locally, we not only celebrate our growth and development, but also continue to evaluate our presence and relevance in the marketplace. Team BBB confidently looks ahead, knowing we have the growing support of our Accredited Businesses and the public. It was a pleasure connecting with many of you over the last year to celebrate your accreditation journey, whether as long standing members or newcomers. Thank you for your active participation and continued commitment to BBB’s Standards for Trust.

MESSAGE FROM THE PRESIDENT & CEO

As Better Business Bureau enters our 80th year advancing marketplace trust in British Columbia, it has been my honour to serve as your Board Chair. We have created a highly talented and very dynamic group of Directors and we all should be appreciative of the time and talent they have donated to us. Without doubt, the Leadership and Sta� of our BBB is top notch, as is reflected in our numbers. We are the number 1 growing BBB in the country, with almost 4400 Accredited Businesses and a record 86% retention rate.

In an age of dubious peer to peer online review, we are pleased that consumers are trusting our platform to do consumer research on “trusted” businesses. More and more consumers are using our website to leave customer reviews (7407 in the past year) and research businesses, with over 2 million business profile views last year alone. We have high targets set for continuing to maximize this tool in the coming year.

I am also proud to report that your BBB is financially stable, and as a result, we are able to engage in new campaigns this year to protect consumers in our marketplace and promote BC businesses who operate at high ethical and service standards.

We thank you for your support of the BBB. We ask that you spread the word and be an advocate for the great things the BBB is doing to establish Trust in the Mainland BC marketplace.

Sincerely,

MESSAGE FROM THE BOARD CHAIR

Todd Coupal, Owner, Pop-A-Lock Mobile LocksmithsBBB Chair

Danielle PrimroseSenior Managers President & CEO

BBB AT A GLANCE

Better Business Bureau serving Mainland BCStart with Trust

2,025,795BBB Business Profile Views

211Reports on BBB Scam

Tracker

37Press

Releases

296

83

Media Coverage

Events

6177Complaints Closed

71.3%Complaint

Resolution Rate

191Advertising

Reviews

41BBB

Investigations

2159Requests for

Quotes

7407Submitted

Customer Reviews

1,710,789Website Visits

4388Number of

ABs

86%Retention

Rate

768Number for New ABs Acquired

2,037,264Total Instances

of Service

TORCH AWARDSThe Torch Awards is an annual ceremony to highlight the members of our Accredited Business community that have given ethics, integrity, corporate excellence and customer service the starring role. Our awards focus on

recognizing organizations that best demonstrate a commitment to advancing marketplace trust through ethical business practices and e�ectively meeting the Standards for Trust.

BBB IN THE COMMUNITY Thank you to our sponsors:

We would also like to recognize our panel of esteem judges:

The 11th annual BBB Torch Awards was

held on June 7, 2018 at Trev Deeley’s

Motorcycle Museum in Vancouver and

was attended by over 90 members of the

business community and our BBB sta�.

Title SponsorMike’s Computer Shop

Gold SponsorPark N’ Fly

Gold SponsorClarke’s Recognition Products

Gold SponsorMarwick Internet Marketing

Event SponsorHot Wax Mobile Music

Event SponsorUpright Decor

Event SponsorMinuteman Press Tri-Cities

Prize SponsorSeasons in the Park

Restaurant

Recycling Council of BCHarvinder Aujala

Foresight CACKatty Wang

Margot Holmes

Ladder Up MarketingAngela Rodenburgh

BIVChris Wilson

BCIT Professor, businessPeter Seidl

Women’s Collaborative HubTrish Mandewo

SHAREJodie Wickens

ZorroaBeth Loughney

People’s Pick Award

st

rdnd

Congratulations to the following winners:

The 12th Annual staging of the Torch Awards will be held on Thursday, June 6, 2019 at Element Vancouver Metrotown. We look forward to recognizing this year’s

most ethical businesses in BC.

School is Easy

Blue Crest Electric Ethical

Flooring

Community Excellence Award Maple Ridge Funeral Chapel & Crematorium

Green AwardGreen Coast Rubbish Inc.

Innovative Business Practices AwardBlue Pearl Mortgage Group

Marketplace Excellence Award (Small)School is Easy Tutoring

Marketplace Excellence Award (Large) Mira Floors & Interiors

March 2017 marked the 13th anniversary of the Canada-wide Fraud Prevention Month campaign. The National List of Top 10 Scams for 2017 was created using information from BBB Scam Tracker reports from the 10 BBBs across Canada, Canadian Anti-Fraud Centre reporting, and concerns from our community partners and sponsors.

Competition Bureau of CanadaGlobal Payments CanadaConsumer Debtor Protection CanadaBC Securities CommissionBank of Canada

With this financial assistance, we were able to subsidize our printing and social media costs to promote awareness. We also employed a national news service to disseminate our press releases in order to reach almost every newsroom in the country. The press releases were linked with every Canadian BBB media contact.

Almost every newsroom in the Lower Mainland of BC was present at our news conference. We received reports of the broadcast being shown in areas outside of BC. BBB serving Vancouver Island joined the Top 10 campaign for the first time, which helped to increase our visibility and resulted in full participation across the country. BBB serving Manitoba employed a dedicated Public Relations expert and managed to make several live appearances on local news programming. We also developed a robust radio campaign in support of Password Day. Over 4 million listeners tuned in through nine popular stations in six provinces. All media and social media tracking was gathered and sent to BBB serving Mainland BC. Over 115 Top Scams and Password Day stories made it into local media. 181 Tweets and 159 Facebook posts relating to both campaigns reached at least 260,000 users. Over 44,000 Top 10 Scams brochures were printed, with over 25% of those printed by BBB Manitoba. The campaign also resulted in over a dozen public presentation requests for BBB serving Mainland BC.

Top 10 Scams for 2017

Our Top 10 Scams campaign received financial support from:

BIT.LY/TOP10SCAMS#BBBTOP10SCAMS BETTER BUSINESS BUREAU

131,284FACEBOOK

IMPRESSIONS

136,458TWITTER

IMPRESSIONS

44,000BROCHURESDELIVERED

4,105,983RADIO

IMPRESSIONS

115MEDIA

HITS

Savvy Consumer Program

BBB’s Savvy Consumer Education Program provides free presentations and information to BC’s consumers. Funded by our Accredi ted Businesses, the program is tailored for consumers across the various demographics and provides the knowledge and tools they need to protect themselves from scams and frauds, as well as tips to ensure they maximize consumer benefits and understand their rights in business transactions. The program covers a range of comprehensive presentations and seminars on a wide variety of topics and are available right throughout the year. In 2018, we met with 600 consumers across the province. As part of our strategic plan to drive top of mind awareness of BBB and our resources, we expect to increase this number in 2019, through an aggressive community engagement campaign.

BBB attended and organized a total of 83 events that drove our consumer and Accredited Business interactions throughout the year. Some of the highlights included our participation in both the Home and Garden Expo and Home and Design Trade Show, where BBB sponsored the Help Desk at the event. We also hosted several networking mixers across BC for our Accredited Businesses. They have been receiving positive feedback and an increasing number of guests at each staging. We look forward to engaging with you at our future events.

Trade Shows & Events

BBB SENIOR MANAGEMENT TEAM

Manager, Accreditation SalesFrank Firtana

Senior Managers President & CEODanielle Primrose

Vice PresidentSimone Lis

Director, Communications & StrategyJeanette Jackson

Manager, Public ServicesAmado Avancena

BETTER BUSINESS BUREAU OF MAINLAND B.C.

FINANCIAL STATEMENTS

FOR THE YEAR ENDED DECEMBER 31, 2018

17th floor, 1030 West Georgia St., Vancouver, BC, Canada V6E 2Y3

Tel: 604. 714. 3600 Fax: 604. 714. 3669 Web: manningelliott.com

INDEPENDENT AUDITORS' REPORT

To the Members of Better Business Bureau of Mainland B.C.

Report on the Financial Statements

Opinion

We have audited the financial statements of Better Business Bureau of Mainland B.C. (the Bureau),which comprise the statement of financial position as at December 31, 2018, and the statements ofoperations and members' surplus and cash flows for the year then ended, and notes to the financialstatements, including a summary of significant accounting policies.

In our opinion, the accompanying financial statements present fairly, in all material respects, the financialposition of the Bureau as at December 31, 2018, and the results of its operations and its cash flows forthe 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. Ourresponsibilities under those standards are further described in the Auditors' Responsibilities for the Auditof the Financial Statements section of our report. We are independent of the Bureau in accordance withthe ethical requirements that are relevant to our audit of the financial statements in Canada, and wehave fulfilled our other ethical responsibilities in accordance with those requirements. We believe thatthe 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 the financial statements inaccordance with Canadian accounting standards for not-for-profit organizations, and for such internalcontrol as management determines is necessary to enable the preparation of financial statements thatare free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is responsible for assessing the Bureau's ability tocontinue as a going concern, disclosing, as applicable, matters relating to going concern and using thegoing concern basis of accounting unless management either intends to liquidate the Bureau or to ceaseoperations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Bureau's financial reporting process.

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Auditors' Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole arefree from material misstatement, whether due to fraud or error, and to issue an auditor’s report thatincludes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that anaudit conducted in accordance with Canadian generally accepted auditing standards will always detect amaterial misstatement when it exists. Misstatements can arise from fraud or error and are consideredmaterial if, individually or in the aggregate, they could reasonably be expected to influence the economicdecisions of users taken on the basis of these financial statements. As part of an audit in accordancewith Canadian generally accepted auditing standards, we exercise professional judgment and maintainprofessional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the financial statements, whether due tofraud or error, design and perform audit procedures responsive to those risks, and obtain auditevidence that is sufficient and appropriate to provide a basis for our opinion. The risk of notdetecting a material misstatement resulting from fraud is higher than for one resulting from error, asfraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override ofinternal control.Obtain an understanding of internal control relevant to the audit in order to design audit proceduresthat are appropriate in the circumstances, but not for the purpose of expressing an opinion on theeffectiveness of the Bureau’s internal control.Evaluate the appropriateness of accounting policies used and the reasonableness of accountingestimates and related disclosures made by management.Conclude on the appropriateness of management’s use of the going concern basis of accountingand, based on the audit evidence obtained, whether a material uncertainty exists related to eventsor conditions that may cast significant doubt on the Bureau’s ability to continue as a going concern.If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’sreport to the related disclosures in the financial statements or, if such disclosures are inadequate, tomodify our opinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor’s report. However, future events or conditions may cause the Bureau to cease to continue asa going concern.Evaluate the overall presentation, structure and content of the financial statements, including thedisclosures, and whether the financial statements represent the underlying transactions and eventsin a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the plannedscope and timing of the audit and significant audit findings, including any significant deficiencies ininternal control that we identify during our audit.

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Report on Other Legal and Regulatory Requirements

As required by the British Columbia Societies Act, we report that, in our opinion, the Bureau's financialstatements have been prepared following Canadian accounting standards for not-for-profit organizationsapplied on a basis consistent with that of the prior year.

Chartered Professional AccountantsVancouver, British ColumbiaMarch 27, 2019

3

BETTER BUSINESS BUREAU OF MAINLAND B.C.STATEMENT OF FINANCIAL POSITIONAS AT DECEMBER 31, 2018

2018 2017

ASSETSCURRENT ASSETS

Cash $ 480,679 $ 368,987Term deposits (Note 4) 203,516 216,116Accounts receivable 64,582 63,401Prepaid expenses and deposits 17,851 16,784

766,628 665,288

TERM DEPOSITS (Note 4) 100,000 100,000

PROPERTY AND EQUIPMENT (Note 5) 80,902 91,969

$ 947,530 $ 857,257

LIABILITIES AND MEMBERS' SURPLUSCURRENT LIABILITIES

Accounts payable and accrued liabilities $ 150,852 $ 138,974Goods and services tax payable 31,588 25,380Deferred revenue 72,949 37,832Current portion of capital lease obligation (Note 6) 5,266 4,787

260,655 206,973

CAPITAL LEASE OBLIGATION (Note 6) 12,174 17,440

272,829 224,413

CONTRACTUAL OBLIGATIONS (Note 7)

MEMBERS' SURPLUS 674,701 632,844

$ 947,530 $ 857,257

Approved by the Board

_____________________________ Director

_____________________________ Director

4

BETTER BUSINESS BUREAU OF MAINLAND B.C.STATEMENT OF OPERATIONS AND MEMBERS' SURPLUSFOR THE YEAR ENDED DECEMBER 31, 2018

2018 2017

REVENUEMembership dues $ 2,267,674 $ 2,073,297Premium listing and other revenues 315,367 311,272Cooperative advertisement 269,476 481,288Search engine solutions fees 190,060 197,423Data processing fees 60,480 63,480Canadian Motor Vehicle Arbitration Plan (CAMVAP) 46,746 49,302Torch awards 7,592 7,034

3,157,395 3,183,096

EXPENSESPublic services (Schedule 1) 2,120,358 2,134,612Member services (Schedule 2) 621,436 676,897Support services (Schedule 3) 373,744 365,067

3,115,538 3,176,576

EXCESS OF REVENUE OVER EXPENSES FOR THE YEAR 41,857 6,520

MEMBERS' SURPLUS, BEGINNING OF YEAR 632,844 626,324

MEMBERS' SURPLUS, END OF YEAR $ 674,701 $ 632,844

5

BETTER BUSINESS BUREAU OF MAINLAND B.C.STATEMENT OF CASH FLOWSFOR THE YEAR ENDED DECEMBER 31, 2018

2018 2017

OPERATING ACTIVITIESExcess of revenue over expenses for the year $ 41,857 $ 6,520Item not involving cash:

Amortization 30,922 23,586

72,779 30,106

Changes in non-cash working capital:Accounts receivable (1,181) (49,738)Prepaid expenses and deposits (1,067) 535Accounts payable and accrued liabilities 11,878 7,454Goods and services tax payable 6,208 (3,147)Deferred revenue 35,117 (27,303)

50,955 (72,199)

123,734 (42,093)

INVESTING ACTIVITIESPurchase of property and equipment (19,855) (77,709)Purchase of investments 316,116 -Proceeds from disposal of investments (303,516) -Reinvestment of interest income - 305

(7,255) (77,404)

FINANCING ACTIVITIESProceeds from capital lease obligation, net of repayment - 22,227Repayment of capital lease obligation (4,787) -

(4,787) 22,227

INCREASE (DECREASE) IN CASH DURING THE YEAR 111,692 (97,270)

CASH, BEGINNING OF YEAR 368,987 466,257

CASH, END OF YEAR $ 480,679 $ 368,987

6

BETTER BUSINESS BUREAU OF MAINLAND B.C.NOTES TO FINANCIAL STATEMENTSFOR THE YEAR ENDED DECEMBER 31, 2018

1. PURPOSE OF THE BUREAU

Better Business Bureau of Mainland B.C. (the "Bureau") is a not-for-profit organization incorporatedprovincially under the Societies Act of British Columbia. The Bureau transitioned to the BritishColumbia Societies Act in May 2018. The Bureau serves all of British Columbia, except VancouverIsland, Peace River, and the Columbia Valley. It is dedicated to promoting fairness and honesty inthe marketplace.

The Bureau is a not-for-profit organization registered under the Income Tax Act and, as such, isexempt from income tax.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The financial statements were prepared in accordance with Canadian accounting standards fornot-for-profit organizations (ASNPO) and, in management's opinion, with consideration ofmateriality and within the framework of the following accounting policies:

(a) Cash

Cash consists of cash on hand and on deposit, net of cheque issued and outstanding at thereporting date.

(b) Financial instruments

i) Measurement

The Bureau's financial instruments consist of cash, term deposits, accounts receivable andaccounts payable.

The Bureau initially measures all of its financial assets and liabilities at fair value, except forcertain non-arm's length transactions. The Bureau subsequently measures all of its financialassets and liabilities at amortized cost.

ii) Impairment

Financial assets measured at cost are tested for impairment when there are indicators ofimpairment. The amount of any write-down that is determined is recognized in the statementof operations. A previously recognized impairment loss may be reversed to the extent of anyimprovement, provided it is no greater than the amount that would have been reported at thedate of the reversal had the impairment not been recognized previously. The amount of thereversal is recognized in the statement of operations in the period in which it is determined.

(c) Amortization

Property and equipment is stated at cost or deemed cost less accumulated amortization and isamortized over its estimated useful life on a straight-line basis at the following rates:

Computer equipment 5 yearsFurniture and equipment 5 yearsTelephone equipment 7 - 10 yearsLeasehold improvements Term of lease

(continues)

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2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

(d) Revenue recognition

Membership dues are recorded as revenue when received, as they are considered to becontributions to support the purposes and activities of the Bureau rather than fees for service tomembers. The Bureau recognizes the entire amount of membership dues received as revenuewithout regard to the period covered by the amounts received.

Contract payments received for future fiscal years are recorded as deferred contract revenueand are recognized over the term of the contract.

Contributions of materials or services are recognized when the fair value can be reasonablyestimated and when the materials or services are used in the normal course of the Bureau'soperations and would have otherwise been purchased.

Other revenue items are recognized as revenue when earned.

(e) Commission expense

Commissions incurred in respect to membership dues are expensed when the relatedmembership dues are recorded.

(f) Use of estimates

The preparation of financial statements in conformity with Canadian accounting standards fornot-for-profit organizations requires management to make estimates and assumptions thataffect the reported amount of assets and liabilities, disclosure of contingent assets and liabilitiesat the date of the financial statements and the reported amounts of revenues and expensesduring the period. Such estimates are periodically reviewed and any adjustments necessary arereported in earnings in the period in which they become known. Actual results could differ fromthese estimates.

3. FINANCIAL INSTRUMENTS RISKS

The Bureau is exposed to various risks through its financial instruments and has a comprehensiverisk management framework to monitor, evaluate and manage these risks. The following analysisprovides information about the Bureau's risk exposure and concentration as of December 31, 2018.There has been no change in the risk exposure from the prior year.

(a) Credit risk

Credit risk is the risk that one party to a financial instrument will cause a financial loss for theother party by failing to discharge an obligation.

The Bureau's financial assets that are exposed to credit risk are cash, accounts receivable andinvestments. The risk associated with cash and investments is minimized to the extent that theyare placed with a major Canadian financial institution.

The Bureau is exposed to credit risk from customers. In order to reduce its credit risk, the Bureauhas proactive credit management policies and regular monitoring of customer's payment historyand performance. The Bureau has a significant number of customers which minimizesconcentration of credit risk.

(continues)

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3. FINANCIAL INSTRUMENTS RISKS (continued)

(b) Liquidity risk

Liquidity risk is the risk that the Bureau will encounter difficulty in meeting obligations associatedwith financial liabilities. The Bureau is exposed to this risk mainly in respect of its accountspayable. However, cash flow from operations is budgeted to provide for the Bureau's cashrequirements.

(c) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument willfluctuate due to changes in market interest rates. The Bureau is not exposed to significant interestrate risk due to the short-term maturity of its financial assets and liabilities.

(d) Other price risk

Other price risk is the risk that the fair value or future cash flows of a financial instrument willfluctuate because of changes in market prices (other than those arising from interest rate risk orcurrency risk), whether those changes are caused by factors specific to the individual financialinstrument or its issuer, or factors affecting all similar financial instruments traded in the market.The Bureau is exposed to other price risk through its investment in term deposits.

Unless otherwise noted, it is management’s opinion that the Bureau is not exposed to significantother price risks arising from these financial instruments.

4. TERM DEPOSITS

Term deposits carry interest at rates ranging from 0.90% to 2.65% (2017: 0.90% to 2.4%).

5. PROPERTY AND EQUIPMENT

2018 2017Accumulated Net book Net book

Cost amortization value value

Computer equipment $ 148,190 $ 107,655 $ 40,535 $ 33,940Furniture and equipment 100,840 83,651 17,189 22,925Leasehold improvements 54,872 32,110 22,762 33,634Telephone equipment 34,446 34,030 416 1,470

$ 338,348 $ 257,446 $ 80,902 $ 91,969

Included in furniture and equipment are assets under capital lease with a cost of $27,113 (2017 -$27,113) and accumulated amortization of $11,297 (2017 - $5,423).

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6. CAPITAL LEASE OBLIGATION2018 2017

Atticus Financial capital lease payable in monthly blendedinstalments of $584 secured by specific equipment due onDecember 31, 2021. $ 17,440 $ 22,227Less: Current portion of capital lease obligation (5,266) (4,787)

$ 12,174 $ 17,440

In January 2017 the Bureau entered into a lease agreement to acquire office furnishings. Theliability recorded under the capital lease represents the minimum lease payments payable net ofimputed interest.

Minimum principal repayments over the next three years are anticipated to be as follows:

2019 $ 5,2662020 5,7922021 6,382

$ 17,440

7. CONTRACTUAL OBLIGATIONS

The Bureau has a potential liability in relation to the expiry of its leased premises to return thepremise to their original condition. Any liability will be recorded once known or in the year incurred.No liability has been recorded in these financial statements.

Commitments under leases for office premises and equipment expiring at varying dates to June 30,2024 are as follows:

2019 $ 186,5862020 222,2732021 155,4532022 5,2552023 5,255Thereafter 2,628

$ 577,450

8. MEMBERS' SURPLUS

The Bureau's capital structure consists of members' surplus. The Bureau is not subject to externalrestrictions on its surplus.

The Bureau maintains adequate cash to meet current payment obligations and planned programexpenditures. Pending actual disbursements for budgeted program expenditures, funds are investedin securities designed to maximize returns while minimizing risk and maintaining flexibility. Theinvestment objectives are subject to limitations defined by the Board of Directors and are set toprovide maximum current income within the approved risk parameters.

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9. RELATED PARTY TRANSACTIONS

Related parties are companies that are controlled by the directors. During the year, the Bureau hadthe following transactions with related parties:

2018 2017

Capital lease obligation $ 17,440 $ 22,227

Interest expense of $2,227 (2017 - $2,711) was paid during the year. These transactions are in thenormal course of operations and are measured at the exchange amount, which is the amount ofconsideration established and greed to by the related parties.

10. SALARIES AND BENEFITS

Salaries and benefits expense during the year includes two individuals that earned over $75,000, fora total of $208,170 (2017 - three individuals that each earned over $75,000, for a total of $312,622).

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BETTER BUSINESS BUREAU OF MAINLAND B.C.SCHEDULE OF EXPENSES - PUBLIC SERVICES (Schedule 1)FOR THE YEAR ENDED DECEMBER 31, 2018

2018 2017

Arbitration $ 400 $ 557Cooperative advertisement 229,092 360,966Delivery and postage 12,872 12,529Salaries and employee benefits (Note 10) 1,705,374 1,634,070Sales and marketing initiative 25,907 46,182Telephone 25,603 23,510Website and database 121,110 56,798

$ 2,120,358 $ 2,134,612

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BETTER BUSINESS BUREAU OF MAINLAND B.C.SCHEDULE OF EXPENSES - MEMBER SERVICES (Schedule 2)FOR THE YEAR ENDED DECEMBER 31, 2018

2018 2017

Annual general meeting $ 3,297 $ 1,279Board 3,506 501Council of Better Business Bureaus 148,944 132,708Decals and pamphlets 7,063 5,742Human resources member program - 1,500Inserts, VRS and banner ads 5,700 5,100Member recognition 922 464Membership development 18,475 19,232Premium listing - 5,903Salaries and commissions 287,312 346,335Sales management 672 8,402Search engine solutions 103,635 100,773Sponsorships 21,147 23,377Trade shows 10,872 16,220Torch awards 9,891 9,361

$ 621,436 $ 676,897

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BETTER BUSINESS BUREAU OF MAINLAND B.C.SCHEDULE OF EXPENSES - SUPPORT SERVICES (Schedule 3)FOR THE YEAR ENDED DECEMBER 31, 2018

2018 2017

Accounting and audit $ 17,860 $ 10,840Amortization 30,922 23,586Bank charges and interest 71,776 65,701Equipment leasing 11,885 13,914Insurance 6,489 2,547Interest on capital lease obligation 2,220 2,711Legal 5,608 6,523President - BBB events 20,876 19,027President - BBB networking 976 2,036Rent 156,875 152,424Repairs and maintenance 7,065 13,328Supplies and stationary 29,518 35,474Training 11,674 16,956

$ 373,744 $ 365,067

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Documents

79 ANNUAL TH GENERAL MEETING · Hot Wax Mobile Music Event Sponsor Upright Decor Event Sponsor Minuteman Press Tri-Cities Prize Sponsor Seasons in the Park Restaurant Recycling Council