WinSport Annual Report Annual Report.pdf · 2015-08-26 · WinSport 2014/2015 Annual Report 5 Message From The Chair For more than 27 years, WinSport has evolved into one of the top

WinSportTM

Annual ReportFor the year ending March 31, 2015

Our MissiOn To provide excellence in winter sports

facilities and training for Canadian athletes to discover, develop and

excel, through a sustainable business model.

Our VisiOn To be the World’s Leading

Winter Sport Institute.

Winsport is anot-for-profit organization

that introduces new athletesto sport, with a focus on wintersport, and enables Canada’s

best athletes to strive for podiumperformances. We receive no

funding from any level of government to support

our day-to-dayoperations.

Contents

5 Message From The Chair

6 Message From The President and CEO 9 Corporate Information Accountability

10 Standing Board Committees Stakeholder Accountability

11 Code of Business Conduct and Ethics Governance Practices

12 Independent Auditors’ Report To The Directors

13 Financial Statements and Notes to Financial Statements

Noah Bowman during training for FIS Freestyle World Cup at WinSport Canada Olympic Park.

Winsport is home to more than

two dozen national and provincial sport organizations, including Hockey Canada and the Canadian sport institute

Calgary, along with the Winsport Academy, that help

Canadian athletes reach the world stage.

WinSport 2014/2015 Annual Report4

WinSport 2014/2015 Annual Report 5

Message From The ChairFor more than 27 years, WinSport has evolved into one of the top sport organizations in the world. While there is still plenty to accomplish, the ultimate goal is to become the World’s Leading Winter Sport Institute and set the bar on the global stage. In reality, that bar will likely continue to be raised, so continuous innovation and improvement is paramount, and over time, WinSport will be the organization that sets the benchmark for all others to aspire to.

Building on a foundation of world-class facilities, WinSport has taken huge strides in the past couple of years building the team that will help it reach its goals. In order to flourish, an environment with a great corporate culture is needed, as well as a strong vision. As we continue to march forward, I feel confident that we will attain that goal under the leadership of WinSport President and CEO Barry Heck and the rest of the senior leadership team.

Under Barry’s direction, the organization has made tremendous headway in executing four main goals that were identified last year as key initiates to help WinSport become world-class. These four goals include: safety and security for all WinSport visitors, staff, athletes, volunteers and tenants; increased communication and collaboration; brand recognition and profile in the community, within corporate Calgary and nationally; and leveraging the opportunity to provide outstanding guest experience.

From a financial standpoint, the Board is pleased with the results of 2014-15 and that the Executive Leadership Team is on track to guide the organization to sustainability. WinSport’s endowment funds also performed well in fiscal 2015 (14.5% total return). Our diversified investment portfolio was uniquely underweight in energy, and benefited from favourable foreign currency translation on its global equity investments due to a weakening Canadian dollar in the latter half of the fiscal year. Due to this strong performance, WinSport has been able to segregate a reserve fund to help provide some stability in the uncertainty of the current economy.

As WinSport continues down the road to promote healthy and active families and to help athletes win medals, I would like

to thank the Board for their time, commitment and continued contribution to the organization. I would like to welcome Kevin Benson, the former President of Trizec, Canadian Airlines and Laidlaw International, to the Board, along with the anticipated additions at the September Annual General Meeting of Board nominees Jim Riddell, the President and CEO of Paramount Resources Ltd.; and Cheryl Bernard, the Canadian curling great who captured a silver medal at the 2010 Olympics. Jim and Kevin are well-respected members of the Calgary corporate community and bring strong business acumen and experience to our organization. Cheryl believes in giving back to the community through her charitable activities, and her background as an elite athlete, a successful business woman and sports commentator will bring key perspective to the Board.

To the WinSport staff and the hundreds of volunteers, we would not be where we are today without your dedication and commitment to a spectacular organization, and I want to thank you for your continued support.

We have continued to make great strides as a team, working toward our common goal. While there is still a tremendous amount of work to be done to become the World’s Leading Winter Sport Institute, I am confident that the groundwork has been laid to assure that we will be successful in achieving that goal.

Robert HamiltonChairJuly 31, 2015


Message From The President and CEO

This year marked the first full year that the entire Executive Leadership Team has been together, providing stable leadership from the top down. To sustain the growth and advancement of the organization, investing in our talent has been an important priority. For nearly six months, WinSport partnered with the Haskayne School of Business to provide leadership training for more than 70 staff members, from directors to front-line staff. The $150,000 investment helped build our leadership capacity for the future and provided our great employees the opportunity to build better relationships as a team. In addition, Dale Tinevez was brought in as the director of guest experience, bringing with him years of valuable experience in this area from his previous roles at WestJet. John Francis, formerly of Molson Coors Canada and Western Financial Group, was hired as the director of marketing, which is already paying dividends in the area of brand building and our overall marketing thrust.

This past year served up several highlights from a sport perspective, with WinSport hosting World Cup events in luge, bobsleigh, skeleton and moguls skiing. It also marked the first year the national freestyle team used WinSport as a national training centre for its halfpipe and slopestyle skiers, thanks in large part to a partnership between WinSport, Own

The Podium and the Canadian Freestyle Ski Association. The agreement helped bring Nevada-based Snowpark Technologies to WinSport to build and maintain the Under Armour Superpipe as the best in North America. The quality of the pipe drew American star snowboarder Shaun White to WinSport for several days of training in early January, and was considered instrumental in the success of Canadian halfpipe skiers throughout the season. We look forward to the same benefits in the coming year.

WinSport continued its commitment to the Sarah Burke Performance Awards, handing out awards of $5,000 each to 11 Canadian athletes who won medals at senior World Cup events held at WinSport Canada Olympic Park. The 2014-15 successes brings WinSport’s total commitment to the awards to $140,000 over four years.

From a developmental standpoint, WinSport’s club programs have nearly doubled since 2012-13 to more than 1,000 skiers, snowboarders and mountain bikers, including 94 members of the WinSport Academy A and B teams. A true measure of the success of this program is evidenced by the fact that since 2010, 12 athletes have graduated from the WinSport Academy

The 2014-15 fiscal year was an important 12 months for WinSport. The organization has taken significant steps toward reaching its goals and fulfilling its vision of becoming the World’s Leading Winter Sport Institute. It was a year of important leadership training and key additions to WinSport’s management team. Advancements were made in improving guest experience and the building of the WinSport brand marched forward. Safety and security of staff, tenants and guests remained a priority this season, while communication and collaboration has greatly improved.


to senior or junior national teams in snowboarding, halfpipe skiing, slopestyle skiing and cross-country skiing. Joining national teams from the Academy this year are halfpipe skiers Brendan MacKay and Megan Warrener, while cross-country skier Peter Hicks is joining the national junior team. Cassie Sharpe, a 2014 graduate of the program, was a member of the Canadian Freestyle Ski Association’s halfpipe ski B team last year. She was named the CFSA’s rookie of the year and promoted to the A team after she had her first career World Cup victory in March in Tignes, France, and a silver medal at the FIS world championships.

This year, WinSport once again introduced more than 30,000 people to sport through ski and snowboard lessons, summer camps, mountain bike camps and hockey, ringette and learn to skate camps. In addition, the past year included visits by more than 20,000 school kids from 150 different schools. We also continued to be a key driver for physical literacy in the sport community through our Active Lives department.

The new fiscal year has started on an exciting note, as WinSport was able to secure one of the top chefs in Western Canada, with the addition of Liana Robberecht as the organization’s new executive chef. Liana comes to WinSport after spending nearly 19 years as the prestigious Calgary Petroleum Club and provides us with prominence within the food and beverage and catering industries moving forward.

After recent years’ expansion activities, WinSport’s management team used fiscal 2015 to focus largely on foundation building and playing catch-up on certain projects. Maximizing the utility of the recently opened Markin MacPhail Centre was a major priority. During the year, WinSport saw steady growth in corporate and recreational events, food court traffic, catering, arenas and public performance training centre use. Sport-based programming continues to perform well, most notably in the Active Lives business unit catering to younger participants. Winter on-hill activity was not as strong as in past years, due to unseasonably warmer temperatures and price competition. However, in the face of such challenges, and despite a negatively trending local economy in the latter half of

the year, WinSport’s operating results still achieved budget.

Many of the capital projects that were undertaken over the past year were to replace aging equipment or to help streamline snowmaking operations. One of the largest investments was more than $500,000 during the first phase of snowmaking automation, which will help provide consistent snow across the hill with a computerized system. Additional pipeline and a hydrant were added at a cost of $100,000 to provide better snowmaking on the new vertical, while a new snow cat, trucks and snowmobile replacements at cost of $250,000 were long overdue. The next fiscal year also includes numerous key capital expenditures, all of which are important investments in our future.

Financial stability under my leadership remains a top priority while working towards becoming the World’s Leading Winter Sport Institute and reaching that goal with the organization’s strategic plan in place.

I would like to thank Board Chair Bob Hamilton and the rest of the Board of Directors for their continued support of my leadership and for helping to make WinSport the tremendous organization it is. WinSport has an extremely strong and committed Board and their contribution is greatly valued and respected. I am excited to work with new Board member Kevin Benson, and the anticipated additions of Jim Riddell and Cheryl Bernard to the Board in September.

In addition, I would like to thank the entire WinSport team, including our more than 800 volunteers, for their continued passion and dedication to the organization. Innovation and hard work are critical for WinSport to remain on the road to becoming the world’s best. I am confident that all the pieces are in place for that to occur and one day soon we will be the benchmark by which all sport institutes are measured.

Barry M. HeckPresident and CEOJuly 31, 2015

Under Armour Halfpipe at WinSport Canada Olympic Park.


Winsport introduces thousands

of Calgarians of all ages to sport each year,

including 20,000 school children and 5,000 summer camp kids.

Sport & Adventure Summer Camp at WinSport Canada Olympic Park.


(As of July 31, 2015)Corporate Information Board of Directors

Robert (Bob) HamiltonBoard Chair

Don ArchibaldKevin BensonLloyd BentzPeter Cohos Lesley ConwayKelly Dearborn Barry HeckScott HutchesonDru MarshallJim PeplinskiPerry SpitznagelGregory SteinrathsDeborah YedlinPaul Zonneveld

Executive TeamBarry M. Heck President and CEO

Stephen NorrisExecutive Vice President and Chief Sport Officer

Cal WilsonChief Financial Officer

John SutherlandChief Operating Officer

Kim JonesVice President and General Counsel

Service ProvidersRoyal Bank of CanadaCorporate Bank

KPMGAuditors

Accountability The governance process of the Calgary Olympic Development Association, operating as WinSport, is structured to promote the purposes and business of the organization as set forth in its governing documents. There are a maximum of twenty Directors that serve on the Board. Up to thirteen Board Members are elected to the Board, the President and CEO is appointed to the Board, and six Directors may be appointed by the following organizations:

• The Government of Canada• The Government of Alberta• The City of Calgary

• The University of Calgary• The Booster Club (No longer appointing a representative)

• The Town of Canmore (No longer appointing a representative)

WinSport 2014/2015 Annual Report10 WinSport 2014/2015 Annual Report10

Standing Board Committees WinSport’s Board of Directors has standing committees tasked with general oversight in specific areas. The stand-ing committees and their respective chairs and members are:

Finance and Audit Committee – Don Archibald, Chair Directors: Scott Hutcheson, Jim Peplinski, Paul Zonneveld Outside Appointees: Dave Guebert, Drew Fitch Governance & Compensation Committee – Lesley Conway, Chair Directors: Bob Hamilton, Perry Spitznagel, Deborah Yedlin

Investment Trustee Committee – Deborah Yedlin, Chair Directors: Peter Cohos, Bob Hamilton, Jim Peplinski Outside Appointees: John Evans, Dave Guebert, Doug Hunter, Les Johannesen

OEF Oversight Committee – Kelly Dearborn, Chair (Government of Canada Appointee) WinSport Appointees: Lesley Conway, Barry Heck, Dr. Stephen Norris, University of Calgary Appointees: Yves Hamelin, Dr. Dru Marshall, Dr. Penny Werthner

Environmental, Health and Safety Committee – Paul Zonneveld, Chair Directors: Don Archibald, Bob Hamilton, Perry Spitznagel,

Land and Facility Strategic Planning Committee – Scott Hutcheson, Chair Directors: Peter Cohos, Lesley Conway Outside Appointees: Harold Perrin, Stefan Savelli

Stakeholder AccountabilityWinSport strives to achieve an optimal level of stakeholder accountability. The processes involved in achieving this level of accountability include:

• An Annual General Meeting of the membership attended by the Board of Directors and senior management;• A published Annual Report including audited financial statements;• Compliance with Alberta’s Societies Act;• Meetings with key stakeholders, including sport partners and national winter sport organizations;• Meetings with civic officials and community organizations; and• Distribution of notices and information, and creation and maintenance of a website.

Canadian Open badminton tournament, Markin MacPhail Centre


Code of Business Conduct and EthicsWinSport’s Board of Directors has adopted a Code of Business Conduct and Ethics. All Directors sign an attestationon an annual basis indicating knowledge of and compliance with this Code.

Governance Practices The WinSport Board of Directors has implemented governance policies and practices that are in alignment with best practices for effective governance of a non-profit organization. We monitor best practices and are continuously developing and improving our own governance framework accordingly. The following information summarizes some of the current governance practices of WinSport:

1 The Board has responsibility for the stewardship of the organization with the aim of fulfilling the stated purposes as set forth in the documents that govern the organization.

2 The Board develops and approves strategic plans that include long-term facility development and financial requirements. These plans are reviewed by the Board on an annual basis in conjunction with the establishment of annual budgets.

3 The Board appoints the President and CEO. Succession planning, including the appointment and evaluation of the executives, is monitored by the Governance Committee.

4 The Board is composed exclusively of independent, non-management Directors with the exception of the President and CEO. Each Director must sign WinSport’s Code of Business Conduct and Ethics on an annual basis and follow the procedures prescribed therein with respect to disclosure of any conflict of interest. When a potential conflict of interest arises, the Director does not participate in any Board activities related to such potential conflict.

5 WinSport utilizes a screening questionnaire to ensure no “ineligible individual” is appointed to the Board and all Directors are required to sign an annual declaration confirming he/she is not an “ineligible individual”, as defined in section 149.1(1) of the Income Tax Act (Canada).

6 The independent members of the Board of Directors meet regularly without the presence of Management.

7 The Board undertakes an annual self-evaluation to review the performance of the Board and Board Committees.

8 The Board has six standing Committees. Four of the Committees (Finance and Audit Committee, Investment Trustee Committee, OEF Oversight Committee, and Land and Facility Strategic Planning Committee) include in its members a number of non-Directors. These individuals have been appointed for their various areas of expertise. Each Committee has a Terms of Reference and the Committee Chair reports directly to the Board on the Committee’s activities.

9 WinSport’s Governance Committee is responsible for the monitoring of governance issues.

10 The members of WinSport’s Finance and Audit Committee are independent Directors and two outside appointees, all of whom are financially literate. The Committee’s responsibilities include: a) Review the operating and capital budgets for the organization, recommend approval to the Board and monitor the adherence to the approved budgets; b) Review the organization’s annual audited financial statements and recommend approval to the Board; and c) Review WinSport’s internal control procedures and monitor compliance thereto in order to mitigate significant risks and exposure that may have a material adverse impact on the organization’s financial statements.

11 The members of WinSport’s Investment Trustee Committee are independent Directors and four outside appointees. The Committee’s responsibilities include: a) Carry out the objectives and policies of WinSport as they pertain to the investment of the Endowment Funds and in accordance with the Endowment agreements; b) Monitor the performance of fund custodians quarterly and recommend changes to the WinSport Board if required; and c) Review WinSport’s Investment Policy on an annual basis.

12 The Board and the various Committees have the authority to retain advisors and consultants as they deem necessary to discharge their responsibilities.


Independent Auditors’ Report

To the Board of Directors of WinSport

We have audited the accompanying financial statements of WinSportTM (operating name for the Calgary Olympic Development Association), which comprise the state-ments of financial position as at March 31, 2015 and 2014, the statements of opera-tions, changes in fund balances and cash flows for the years ended March 31, 2015 and 2014, and notes, comprising a summary of significant accounting policies and other explanatory information.

Management’s Responsibility for the Financial StatementsManagement 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.

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

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on our judgment, including the assessment of the risks of material misstatement of financial statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of account-ing policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained in our audits is sufficient and appropriate to provide a basis for our audit opinion. OpinionIn our opinion, the financial statements present fairly, in all material respects, the financial position of WinSport as at March 31, 2015 and 2014, and its results of operations, changes in fund balances and its cash flows for the years then ended in accordance with Canadian accounting standards for not-for-profit organizations.

Chartered AccountantsJune 22, 2015Calgary, Canada


WINSPORTStatements of Financial Position As at March 31, 2015 and 2014

Operating Restricted Endowment March 31, March 31, ($000’s) Fund Fund Fund 2015 2014

AssetsCurrent assets

Cash 238 1,158 - 1,396 1,011

Accounts receivable 1,373 23 - 1,396 1,981

Promissory note receivable - 20,000 - 20,000 -

Investments (Note 3) 6,118 30 2,472 8,620 7,900

Inventories 500 - - 500 276

Prepaid expenses and deposits 380 - - 380 311

8,609 21,211 2,472 32,292 11,479

Non-current assets

Promissory note receivable - - - - 20,000

Investments (Note 3) 4,502 756 127,625 132,883 127,313

Property, plant and equipment (Note 4) - 242,207 - 242,207 250,564

Total Assets 13,111 264,174 130,097 407,382 409,356

Liabilities and Fund BalancesCurrent liabilities

Cheques issued in excess of operating cash on hand 944 - - 944 1,377

Bank indebtedness (Note 5) 1,690 - - 1,690 -

Account payable (Note 6) 4,477 933 152 5,562 5,826

Deferred revenue and deposits 3,460 228 - 3,688 3,997

Current portion of obligation under capital leases (Note 7(b)) - 636 - 636 858

Demand term loan (Note 7(a)) - 19,250 - 19,250 20,250

10,571 21,047 152 31,770 32,308

Non-current liabilities

Obligations under capital lease (Note 7(b)) - 3,942 - 3,942 4,052

Deferred capital asset contributions (Note 8) - 115,811 - 115,811 121,632

Deferred revenue and deposits 525 - - 525 601

Total liabilities 11,096 140,800 152 152,048 158,593

Fund balances

Unrestricted (Note 9) 2,015 - - 2,015 (1,311)

Internally restricted (Note 10(a)) - 879 - 879 765

Externally restricted (Note 10(b)) - 751 - 751 714

Invested in property, plant and equipment - 121,744 - 121,744 123,392

Endowment (Note 11) - - 129,945 129,945 127,203

2,015 123,374 129,945 255,334 250,763

Total Liabilities and Fund Balances 13,111 264,174 130,097 407,382 409,356

Commitments and Contingencies (Note 12) Subsequent events (Note 18)

Approved by the Board of Directors:

___________________________ ___________________________Robert Hamilton Don Archibald


WINSPORTStatements of OperationsYears ended March 31, 2015 and 2014

Operating Restricted Endowment March 31, March 31, ($000’s) Fund Fund Fund 2015 2014 Revenues

Investments: Interest, dividends, realized gains and losses 557 96 15,991 16,644 7,057 Change in unrealized gains and losses 39 7 1,073 1,119 16,016

Realized deferred capital contributions (Note 8) - 6,642 - 6,642 6,412

Instructional and lift tickets 9,207 - - 9,207 8,697

Facility rental and tours 7,746 - - 7,746 6,475

Food and beverage 5,432 - - 5,432 4,452

Expense recovery and other revenue 2,539 416 - 2,955 3,965

Retail 960 - - 960 865

Competition and training 826 - - 826 783

Equipment rental 818 - - 818 737

Sponsorships and donations 956 27 - 983 499

Tourist rides 548 - - 548 537

Saddledome Foundation 575 - - 575 597

Gain on land sale (Note 4) - - - - 6,931

Total Revenues 30,203 7,188 17,064 54,455 64,023

Expenses

Wages and benefits 17,996 22 - 18,018 14,249

Depreciation 12,914 - - 12,914 11,854

Supplies and services 4,465 266 - 4,731 4,499

Utilities 2,806 - - 2,806 2,981

Repairs and maintenance 2,406 - - 2,406 2,718

Interest and bank charges 1,203 13 - 1,216 1,369

Cost of goods sold: Food and beverage 1,789 - - 1,789 1,475 Retail 527 - - 527 456

Investment fees - 4 630 634 599

Advertising and exhibits 715 - - 715 535

Professional fees 486 - - 486 377

Insurance, licenses and property tax 578 - - 578 916

Travel and meetings 204 - - 204 157

Bad debt expense (recovery) 136 2 - 138 (14)

Total Expenses 46,225 307 630 47,162 42,171

Sports Development

Olympic Oval (Note 11(a)) Operating Expenses 2,567 - - 2,567 2,529

Sport grants 89 - - 89 77

Scholarships and bursaries - 66 - 66 51

Total Distributions 2,656 66 - 2,722 2,657

Excess (Deficiency) of Revenues Less Expenses and Distributions (18,678) 6,815 16,434 4,571 19,195

See accompanying notes to financial statements.


WINSPORTStatements of Changes in Fund BalancesYears ended March 31, 2015 and 2014

Operating Restricted Endowment March 31, March 31, ($000’s) Fund Fund Fund 2015 2014 Balance – Beginning of Year (1,311) 124,871 127,203 250,763 231,568

Excess (Deficiency) of Revenues Less Expenses and Distributions (18,678) 6,815 16,434 4,571 19,195

Inter-fund transfers:

Transfer from Endowment Fund to Operating Fund (Note 11) 13,692 - (13,692) - -

Transfer from Deferred Capital Contributions to Operating Fund 869 (869) - - -

Investment in Property, Plant & Equipment 7,443 (7,443) - - -

Balance - End of Year 2,015 123,374 129,945 255,334 250,763


Hard Knocks MMA, Markin MacPhail Centre.


WINSPORTStatements of Cash FlowsYears ended March 31, 2015 and 2014

($000’s) 2015 2014

Cash provided by (used in) Operating activities

Excess of revenues less expenses and distributions 4,571 19,195

Items not affecting cash: Depreciation and amortization 12,914 11,854

Interest, dividends, realized gains and losses re-invested (16,644) (7,057)

Unrealized gains (1,119) (16,016)

Scholarship expense paid by Restricted Funds 66 41

Investment fees 634 599

Gain on disposal of property, plant and equipment (21) (6,853)

Deferred capital asset contributions recognized (6,642) (6,412)

Withdrawals from investment portfolio 13,690 10,740

7,449 6,091

Changes in non-cash working capital items (Note 17) (14) 1,702

7,435 7,793

Investing activities

Additions of property, plant and equipment (4,565) (9,530)

Proceeds from Government assistance related to capital expenditures 820 867

Proceeds on disposal of property, plant and equipment 29 9

Proceeds on disposal of land (net of transaction costs) (Note 4) - 19,626

Changes in Restricted Fund accounts payable 419 (1,088)

(3,297) 9,884

Financing activities

Advances on (repayments of) term loans (1,000) (17,464)

Increase (decrease) in bank overdraft 1,257 (223)

Advances on (repayments of) capital leases, net (332) (605)

(Increase) decrease in OCO Reserve investments (3,678) -

(3,753) (18,292)

Increase (decrease) in Cash 385 (615) Cash Balances – Beginning of Year 1,011 1,626

Cash Balances - End of Year 1,396 1,011



WINSPORT

Notes to Financial Statements Years ended March 31, 2015 and 2014

In conjunction with the adoption of WinSport, a new vision and mission statement were developed. WinSport’s vision is to be the World’s Leading Winter Sport Institute. Its mission is to provide excellence in winter sports facilities and training for Canadian athletes to discover, develop and excel, through a sustainable business model.

In fulfilling its mission, the Organization maintains and operates the facilities located at Canada Olympic Park (“COP”) in Calgary, the Bill Warren Training Centre (“BWTC”) in Canmore and the high altitude training facility at the Beckie Scott High Performance Training Centre on Haig Glacier. Subject to the conditions of the Amended and Restated Olympic Endowment Fund trust agreement, the Organization provides funding to the University of Calgary towards the operating and capital expenditures of the Olympic Oval.

In addition, the Organization is trustee of the Endowment Funds established under the terms of the Olympic En-dowment Fund and the OCO Trust Fund as outlined in Note 11. These funds, in addition to certain Operating and Restricted Funds, are professionally managed in accordance with the Organization’s Investment Policy as outlined in Note 3.

1 Nature of Organization

The Calgary Olympic Development Association (“CODA”, “the Organization”) was incorporated on April 4, 1979 under the Societies Act of the Province of Alberta as a non-profit organization and is registered as a tax-exempt Canadian Amateur Athletic Association under the Income Tax Act. During fiscal 2009, CODA adopted the trade name Canadian Winter Sport Institute and now conducts its business under the trade name of WinSportTM while continuing to use its formal legal name for contracts and other legal matters.


(a) Fund Accounting:The Organization follows the restricted fund method of accounting. The Operating Fund includes the assets (except for the property, plant and equipment) and liabilities related to the operations of the Organization while the Restrict-ed Fund includes the assets and liabilities of the National Sport School Fund, the Sustainability Fund, government capital and business operations, other restricted funds with specific purposes and all property, plant and equipment of COP, Canmore facilities and the Beckie Scott High Performance Training Centre on Haig Glacier. The Endowment Fund includes the assets and liabilities of the Olympic Endowment Fund (“OEF”), the Oval Capital Reserve Fund and the OCO Trust Fund.

(b) Investments:Investments are recorded at fair value based on closing prices at the end of the reporting period. Investment income includes interest and dividends earned in each period, and realized and unrealized gains and losses on the invest-ments. The amount recorded for unrealized gains and losses each period is the change in the difference between the cost and the fair value of investments held at the beginning and the end of each period. Accordingly, this amount is dependent on the changes in the fair value of the investments held, as well as the timing of the sale of the invest-ments. At the time of the sale of an investment, any amounts previously recorded for unrealized gains or losses are then included in realized gains and losses calculated on an average cost basis.

(c) Donated Services:The Organization relies on certain services provided by volunteers. Due to the difficulty of determining the fair value of these services, they have not been recognized in the financial statements.

(d) Revenue Recognition:Contributions restricted by third parties related to general operations are recognized as revenue of the Operating Fund in the year in which the related expenses are incurred. Contributions restricted for the purchase of capital as-sets are recorded as receivable when the amount can be reasonably estimated and collection is reasonably assured, recorded as deferred capital asset contributions and recognized as revenue of the restricted fund on the same basis and at the same time that the corresponding capital asset is depreciated. All other restricted contributions are recognized as revenue of the appropriate restricted fund when received. Unrestricted contributions are recognized as revenue of the Operating Fund in the year received or receivable if the amount to be received can be reasonably estimated and collection is reasonably assured. Contributions for endowment are recognized as revenue in the Endowment Fund. Investment income earned on endowment is recognized as revenue of the Endowment Fund. Investments in funds have been internally pooled and net investment income is allocated proportionately to the net assets of the funds.

Revenue from fees, contracts and sale of goods and services is recognized when the services are provided or the goods are sold.

The Organization recognizes rent from leases such that where leases provide for increases in rent during their term, the rents are recognized on a straight-line basis over the terms of the respective leases. Recoveries from tenants are recognized as revenues in the period the applicable costs are incurred.

(e) Inventories:Inventories are recorded at the lower of cost and net realizable value. Cost is determined on a first in, first out basis.Inventory consists primarily of retail, and food and beverage items. The cost of inventories recognized as an ex-pense during the year was $2.3 million (2014 - $1.9 million). No reversals of previously recorded inventory write-downs were recorded.

2 Significant Accounting Policies


2. Significant Accounting Policies (continued):

(f) Property, Plant and Equipment (“PP&E”):Property, plant and equipment purchased by the Organization are recorded at historical cost while property, plant and equipment donated to the Organization are recorded at estimated fair value at the date of contribution where such value can be reasonably estimated; otherwise the assets are recorded at nominal value. Assets acquired under capital leases are depreciated over the estimated life of the assets or over the lease term, as appropriate.

Property under development is recorded at cost. Cost includes all expenditures incurred with the acquisition, development and construction of the property under development. These expenditures include all direct costs, development fees, leasing fees, utility costs and salary costs of certain employees. Capitalization continues until the property achieves a satisfactory level of occupancy, subject to a reasonable period of time. Interest costs associated with construction or purchase of an asset are not capitalized but expensed as incurred.

All land held for development is recorded at the lower of cost or net realizable value. The Organization capitalizes all direct costs on land held for development and land held for sale. Any deposits received in advance of closing a sale are recorded as a liability until the sale is complete.

Property, plant and equipment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable and exceeds its fair value. When a capital asset no longer contributes to the Organization’s ability to provide services, its carrying amount is written down to its residual value. The cost of property, plant and equipment is amortized over the estimated useful life of the asset using the methods and rates shown below. Tenant improvements are capitalized and amortized over the initial lease term.

Facilities 5% - 20% declining balance and straight-line

Buildings 5% declining balance and straight-line

Equipment 5% - 20% declining balance and straight-line

Equipment under capital lease 5% - 20% declining balance and straight-line

Vehicles 20% declining balance and straight-line

Other:

Rental equipment Straight-line over 2-3 years

Furniture and fixtures 20% declining balance and straight-line

Computers Straight-line over 3 years

Signage and pageantry 20% declining balance and straight-line

Building improvements Straight-line over 5 years

Tenant improvements, real estate commissions Straight-line over the initial lease term

(g) Tenant Improvements:Payments to tenants under lease obligations are characterized as either tenant improvements owned by the landlord or tenant incentives. When the obligation is determined to be a tenant improvement owned by the Organization, the Organization is considered to have acquired an asset. If the Organization determines that for accounting purposes it is not the owner of the tenant improvement then the obligations under lease are treated as tenant incentives. Tenant improvements and tenant incentives are amortized on a straight line basis over the term of the lease. The amortiza-tion of tenant improvement is recorded as amortization expense.

(h) Financial Instruments:Financial instruments are recorded at fair value including transaction costs, 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 Organization has not elected to carry any such financial instruments at fair value. Transaction costs incurred on the acquisition of financial instruments measured subsequently at fair value are expensed as incurred. All other financial instru-ments 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 Organization 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 Organization expects to realize by exercising its right to any collateral. If events and circumstances reverse in a future period, an impairment loss will be reversed to the extent of the improvement, not exceeding the initial carrying value.


2. Significant Accounting Policies (continued):

(i) Financial Risks: Credit Risk - Credit risk refers to the risk that a counterparty may default on its contractual obligations resulting in a financial loss. The Organization is exposed to credit risk on its cash held at banks, accounts receivable from its customers and on its investment bond portfolio disclosed in Note 3; however, the Organization believes there is no significant concentration of credit risk.

The Organization manages its investment portfolio to earn investment income and invests according to a Statement of Investment Policy approved by The Board. The Organization is not involved in any financial hedging relationships and does not hold or use any derivative financial instruments for trading purposes.

Interest Rate Risk - The Organization is exposed to interest rate risk on bonds and debentures held in investments and obligations under capital leases. Bank indebtedness and term loans are variable-rate instruments, so fluctua-tions in market rates will impact interest expense. Additional information on these amounts is provided in Notes 3, 5 and 7.

Liquidity Risk - Liquidity risk is the risk that the Organization will be unable to fulfill its obligations on a timely basis or at a reasonable cost. The Organization manages its liquidity risk by monitoring its operating requirements. The Organization prepares budget and cash forecasts to ensure it has sufficient funds to fulfill its obligations. There has been no change to the risk exposures from 2014.

Foreign Currency Exchange Risk - The Organization is exposed to financial risks as a result of exchange rate fluc-tuations and the volatility of these rates. The Organization is exposed to foreign currency fluctuations on marketable securities and bonds and debentures held in foreign denominated currencies in Investments. Based on the invest-ment policy approved by the Board of Directors, investments denominated in foreign currencies provide the Orga-nization with significant diversification of foreign currency risk by holding investments that are not denominated in Canadian dollars.

(j) Cash and Cash Equivalents: Cash and cash equivalents include cash on hand and short-term deposits which are highly liquid with original ma-turities of less than three months.

(k) Use of Estimates:The preparation of financial statements requires management to make estimates and assumptions that affect the re-ported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the period. Actual results could differ from those estimates. Significant areas requiring estimates include valuation of accounts receivable, investments and capital assets and the useful life and recoverability of property, plant and equipment.


3 Investments

March 31, 2015 Operating Restricted Endowment March 31, ($000’s) Fund Fund Fund 2015 Cash and short term equivalents 6,118 30 2,472 8,620

Bonds and debentures 4,502 187 31,614 36,303

Marketable equity securities - 569 96,011 96,580

Total 10,620 786 130,097 141,503

March 31, 2014 Operating Restricted Endowment March 31, ($000’s) Fund Fund Fund 2015 Cash and short term equivalents 6,345 30 1,525 7,900

Bonds and debentures - 140 24,611 24,751

Marketable equity securities - 581 101,981 102,562

Total 6,345 751 128,117 135,213

Investments are pooled with investment fund managers, professionally managed in accordance with the Organiza-tion’s Investment Policy, and are comprised of the following:

Bonds and debentures represent investments in government and corporate bonds and debentures substantially all denominated in Canadian dollars with a minimum credit rating of BBB at purchase. The duration of the portfolio is managed on a constrained basis and typically targets portfolio duration within +/- 30% relative to the DEX Universe Bond Index.

Marketable equity securities represent investments in equity securities of domestic and foreign issuers that are traded on recognized stock exchanges. The Organization has placed limitations on holdings of securities in any one issuer as well as minimum market capitalization.

Cash and short term equivalents are readily liquidated securities with a term to maturity of not more than one year.

As of March 31, 2015, the investment target and ranges by asset class from the Investment Policy, as well as the actual holdings in marketable equity securities, bonds and debentures and cash and accrued income are as follows:

Lower Target Upper Actual Actual Asset Class %’s Range Range 2015 2014 Canada equity 30.0 40.0 50.0 36.3 35.4

Global equity 30.0 35.0 40.0 37.5 40.4

Bonds and debentures 20.0 25.0 30.0 24.3 18.3

Cash and equivalents - - 20.0 1.9 5.9

100.0 100.0 100.0

On a quarterly basis, the Investment Trustee Committee of the Board of Directors reviews the asset mix of the port-folio and recommends corrective action as necessary. As at March 31, 2015, the weighting of all asset classes was within the parameters set by the Investment Trustee Committee.


4 Property, Plant and Equipment

March 31, 2015 Cost Accumulated Net Book ($000’s) Depreciation Value Land Canada Olympic Park 31,854 - 31,854

Land held for development 1,135 - 1,135

Land development costs 5,236 - 5,236

Facilities 245,600 65,399 180,201

Facilities – work in progress 555 - 555

Buildings 25,366 16,581 8,785

Buildings – work in progress 208 - 208

Equipment 8,381 6,716 1,665

Equipment under capital lease 10,659 2,843 7,816

Vehicles 4,087 2,732 1,355

Tenant improvements 3,887 1,264 2,623

Real estate commissions 425 128 297

Other 4,334 3,857 477

341,727 99,520 242,207

March 31, 2014 Cost Accumulated Net Book ($000’s) Depreciation Value Land Canada Olympic Park 31,854 - 31,854

Land held for development 1,135 - 1,135

Land development costs 2,301 - 2,301

Facilities 235,578 54,919 180,659

Facilities – work in progress 12,060 - 12,060

Buildings 24,938 16,080 8,858

Equipment 7,338 6,525 813

Equipment under capital lease 9,711 1,940 7,771

Equipment under capital lease – pending 306 - 306

Vehicles 3,573 2,481 1,092

Tenant improvements 3,887 909 2,978

Real estate commissions 425 85 340

Other 4,201 3,804 397

337,307 86,743 250,564

During the last two fiscal years, the Organization did not receive any donations of property, plant and equipment. As of March 31, 2015 and 2014 property, plant and equipment included cumulative donated amounts of $81.4 million recorded as restricted assets. Under certain limited conditions outlined in agreements, the Government of Canada may regain the title to assets totaling $77.7 million, consistent with the prior year.


4. Property, plant and equipment (continued):

Land SaleAs part of its strategy to fund recent facility expansion, the Organization sold a portion of its surplus land holdings. On April 9th, 2013, the Organization entered into a purchase and sale agreement (the “Land Sale Agreement”) for $40.0 million with a third party developer (“Purchaser”) to dispose of parcels of land, totaling 281 acres, and with a carrying value of $32.4 million. The Agreement includes provisions affording unique treatment to specific land parcels, referred to as the West Lands (112 acre single parcel) and the East Lands (three parcels totaling 169 acres), further described below.

Under the terms of the Land Sale Agreement, by August 7, 2013 (“Closing Date”), the Organization had received deposits and payments totaling $20.0 million, and had conveyed title to the West Lands to the Purchaser. On the same date, the balance of the purchase price was fulfilled by the Purchaser through a $20.0 million promissory note, secured by the West lands. In exchange, the Purchaser was provided with exclusive possession of the East Lands under specific terms, effectively conveying rights consistent with property ownership, with legal title transfers to subsequently occur upon settlement of the promissory note. The promissory note does not bear interest, and be-comes due and payable on the earlier of August 7, 2015, or the date when the City of Calgary first issues a develop-ment permit to the Purchaser for an improvement on any portion of the West Lands or East Lands.

In the event the Purchaser does not obtain a development permit by August 7, 2015, the Organization is to receive the remaining $20.0 million through settlement of the promissory note. In the unlikely event the Purchaser does not fulfill its obligation to settle the note, the Organization retains the right to reclaim title to the West Lands (note secu-rity), and withhold transfer of the East Lands titles (leaving the Organization with title to all lands and $20.0 million (original deposit and payment for the West Lands)).

The Purchaser’s pursuit of a development permit has a bearing on the timing of promissory note settlement, how-ever, this does not impact the fundamental sale transaction, nor the exchange of consideration on the Closing Date. By the Closing Date, the Organization had transferred all significant risks and rewards of ownership to the Purchaser, and as a result, recognized the revenue and profit related to the land sale.

The purchase price of $40.0 million results in a $6.9 million gain on sale, after deducting the land carrying value ($32.4 million) and related transaction costs ($0.7 million).

Lease RevenueThe Organization has entered into various lease agreements for rental of office space as part of the normal course of its operations. As at March 31, 2015 and 2014, the future minimum lease payments receivable related to these leases are all recoverable within a seven year time frame (see table below).

($000’s) 2015 2014 Year 1 – 5 3,258 4,393 Year 6 – 7 320 480

3,578 4,873


5 Credit Facility

The Organization has a $3.0 million credit facility, with a Canadian chartered bank, bearing interest at the bank’s prime rate plus 0.25% (2014 - bank’s prime rate plus 0.25%). The Facility is collateralized by an assignment of accounts receivable and a first fixed charge on a portion of the Organization’s land held for development and sale. As at March 31, 2015, the Organization had drawn $1.7 million on this facility (2014 - $1.4 million).

6 Accounts payable

Included in accounts payable is $nil (2014 - $450,000), pertaining to collection and remittance of Goods and Services Tax and other government invoices.

7 Debt Obligations

(a) Demand Term Loans:

March 31, March 31, ($000’s) 2015 2014 MMC Construction Facility 19,250 19,250

Donations Facility - 1,000

19,250 20,250

Markin MacPhail Centre (“MMC”) Construction FacilityDuring 2011, the Organization negotiated a $42.3 million demand term loan, the proceeds of which were used to complete the second phase of planned facility expansion (MMC construction project). This loan bears interest either at the bank’s prime rate or bankers’ acceptance rate + 1.00%.

During 2011, $2.9 million of the term loan was repaid using proceeds from a sale of surplus land holdings, reducing the term loan to $39.3 million as at March 31, 2013. During fiscal 2014, pursuant to the Land Sale Agreement (Note 4), the Organization received $20.0 million in initial deposits and payments, which was immediately applied to the outstanding term loan balance (reducing it to $19.3 million as at March 31, 2014). The remaining loan is payable on demand and has been classified as a current liability. It is management’s expectation that the loan will be settled in fiscal 2016, using proceeds received on settlement of the $20.0 million promissory note arising from the Land Sale Agreement (Note 4).

Security on the remaining $19.3 million term loan facility is a first fixed charge on the East Lands (described in Note 4) and a guarantee from the City of Calgary. The Organization provided security to the City for the guarantee in the form of the following: − a mortgage on the East Lands; − assignment of insurance related to the East Lands; − an interest in existing and future leases, licenses, rents and other monies related to all the East Lands; − all proceeds of expropriation of East Lands; and − future capital campaign donations directed to phase two of the facility expansion.


7. Debt Obligations (continued):

(a) Demand Term Loans (continued) Donations FacilityIn May 2014, WinSport arranged for a $4.8 million facility with a Canadian chartered bank to provide additional fund-ing for the MMC construction project. The facility is secured by donation accounts receivable and a first fixed charge on lands, and bears interest at bank’s prime rate plus 0.5%. Amounts drawn are repayable upon receipt of specific donations, with any outstanding balance repayable in full on or before December 31, 2015. Amounts previously drawn on this facility were repaid in full during fiscal 2015.

The demand term loans are subject to covenants as described further in note 16.

(b) Obligations Under Capital Lease:

March 31, March 31, ($000’s) 2015 2014 Obligation under capital lease 4,578 4,910

Less: current portion (636) (858)

Non-current portion 3,942 4,052

Chairlift FacilityThe Organization has established two separate lease facilities with a Canadian chartered bank, to finance the pur-chase of chairlifts associated with its ski operations. The first facility financed a $1.8 million capital purchase com-pleted in 2011 at an interest rate of 4.73%. The second facility financed a $4.0 million capital purchase completed in fiscal 2012 at an interest rate of 3.97%. The principal remaining on each of these facilities as at March 31, 2015 amounted to $nil and $2.7 million respectively (2014 - $0.4 million and $3.0 million respectively).

Equipment FacilityIn August 2013, WinSport entered into a line of credit with a Canadian chartered bank to fund equipment purchases for its recently constructed Medical Centre and Performance Training Centres. Equipment purchased using the facility amounted to $1.6 million at March 31, 2014 and served as the security for the line of credit. The facility bore interest at the bank’s prime rate plus 0.25% until conversion to a two year capital lease facility in July 2014.

Total lease payments of $0.3 million, including interest, principal and required deposits, were made during fiscal 2015 (2014 - $0.8 million).

Expected lease principal payments over the next five years are as follows:

($000’s) 2016 636

2017 1,526

2018 2,277

2019 48

2020 91

4,578


8 Deferred Capital Asset Contributions

March 31, March 31, ($000’s) 2015 2014 Opening balance 121,632 127,178

Donations received 695 710

City of Calgary COSE 25 110

Other external funding and interest 100 46

820 866

Total contribution revenue recognized (6,641) (6,412)

Net change (5,821) (5,546)

Ending balance 115,811 121,632

Government Assistance for the Centre of Sport Excellence (“COSE”)In previous fiscal years, the Organization received commitments from all levels of government to assist in fulfillment of its vision for creation of a Centre of Sport Excellence. Balances currently within Deferred Capital Asset Contribu-tions have largely arisen from these government contributions. The provincial, federal and municipal governments committed $69.0 million, $40.0 million, and $20.0 million to this project respectively. The multi-year construction of the new Markin MacPhail Centre (“MMC”) and related assets was largely finished in fiscal 2014. As at March 31, 2015 all government commitments had been received in full.

In accordance with the Contribution Agreement governing the City of Calgary’s commitment, the following two amounts are available within the Organization’s operating reserves: − A $0.4 million capital reserve, calculated as two-percent (2%) of the funding received, to be applied toward the repair, replacement and maintenance of the facility; and − A $0.3 million operating reserve, calculated as at least ten-percent (10%) of the annual operating expenses of the facility.

Assistance Related to Capital ExpendituresIn fiscal 2015, $0.8 million (2014 - $0.8 million) of public donations were received, to contribute towards the comple-tion of the MMC construction. As these grants and donations are for the funding of capital assets, the contributions have been deferred and are being recognized as revenue on the same basis as the amortization expense related to the acquired assets.


9 Unrestricted Operating Funds

The Operating Fund consists of the balance of the OCO Reserve fund (investments held in the Operating Fund) and the deficit from the Organization’s operating activities.

March 31, March 31, ($000’s) 2015 2014 OCO Reserve Fund 13,619 6,345

Deficit from Operations (11,604) (7,656)

2,015 (1,311)

10 Restricted Funds

(a) Internally Restricted:

March 31, March 31, ($000’s) 2015 2014 National Sport School Operating Fund 860 746

Dennis Kadatz Scholarship Fund 19 19

879 765

The Organization, in conjunction with the Calgary Board of Education, established the National Sport School to provide a flexible education alternative for high performance athletes. The National Sport School Operating Fund was established by way of a $100,000 capital contribution from the Naturbahn Capital Renewal Fund (“National Sport School Fund”) on June 30, 1994.

The Dennis Kadatz Scholarship Fund was established by the Organization in 1999 to honour former President, Dennis Kadatz and is to provide an annual scholarship to a National Sport School student.

Continental Cup, Markin MacPhail Centre.


10. Restricted Funds (continued):

(b) Externally Restricted:

March 31, March 31, ($000’s) 2015 2014 WinSport Athlete Development Fund 434 411

Neil Daffern Award for Excellence Fund 229 213

VW 2010 Excellence Fund 64 57

Reudi Setz Scholarship Fund - 12

Joan Synder NSS Scholarship Fund 9 -

Alberta Ski and Snowboard Association Bursary Fund 15 21

751 714

WinSport Athlete Development FundPreviously known as the National Sport School Fund (originally the TransCanada Pipelines Limited Naturbahn Capital Renewal Fund) in 2014 WinSport and TransCanada agreed to new terms to provide the following awards to aspiring athletes: a) TransCanada Academic Sport Award, b) WinSport Sport Development Award and c) WinSport Sport Performance Award.

Neil Daffern Award for Excellence FundThe Organization, along with Tony and Gillian Daffern, established the Neil Daffern Award for Excellence Fund in December 2001. The purpose of the fund is to provide two awards of $5,000 each year to snowboard athletes that demonstrate excellence in the sport of snowboarding.

VW 2010 Excellence FundThe VW 2010 Excellence Fund was established in 2006 through an agreement with the Vancouver 2010 Bid Corpo-ration for the funding of development of winter sport athletes from British Columbia.

Reudi Setz Scholarship FundThe Reudi Setz Scholarship Fund was established to provide an annual scholarship to a grade 12 student who is an athlete in the Nordic Combined, Cross-Country, Ski Jumping or Biathlon program, who attains an overall average of 80% and who is planning to attend a post-secondary education. This fund was closed during fiscal 2015 (remain-ing fund balances were redirected externally by the donor).

Joan Snyder National Sport School Scholarship FundThe Joan Snyder National Sport School Scholarship Fund was established by a donation to support a scholarship program for female hockey players. Consistent with discussions between the donor and the University of Calgary, this gift will provide annual awards to support female undergraduate students at the University of Calgary. No pay-ments were made out of this fund in 2015 or 2014. During 2015, monies historically invested on behalf of the Joan Snyder Fund achieved gains of $7,800 (2014 - $656) in interest, net of fees, on investments.

Alberta Ski and Snowboard Association Bursary FundDuring fiscal 2011 the Alberta Ski and Snowboard Association gifted to CODA the amount of $36,000 to the benefi-cial use of the National Sport School in support of the Alberta Ski and Snowboard Association. The purpose of this fund is to provide financial assistance to National Sport School students in Grade 10 and 11 that meet the financial need criteria. It is assumed this bursary fund will be fully distributed over a 6 year period.


March 31, 2015 OEF Oval Capital OCO Trust ($000’s) Unreserved Reserve Fund Fund Total Balance – Beginning of Year 72,288 7,457 47,458 127,203

Investment revenues (net of fees) 9,721 1,030 5,682 16,433

Transfer to Operating Fund (3,744) - (9,947) (13,691)

Balance - End of Year 78,265 8,487 43,193 129,945

March 31, 2014 OEF Oval Capital OCO Trust ($000’s) Unreserved Reserve Fund Fund Total Balance – Beginning of Year 62,554 6,043 50,846 119,443

Investment revenues (net of fees) 13,422 1,414 7,455 11,291

Transfer to Operating Fund (3,688) - (10,843) (14,531)

Balance - End of Year 72,288 7,457 47,458 127,203

(a) Olympic Endowment Fund Unreserved:The Olympic Endowment Fund (“OEF”) was established by a trust agreement between the Government of Canada and the Organization dated December 31, 1987. The principal purpose of the OEF is the promotion of high per-formance sport and such other charitable purposes as the “Trustee” (the Board of Directors of the Organization) approves from time to time. During fiscal 2011 the Organization, jointly with the University of Calgary, submitted a revision request to Sport Canada. Resulting in approval of the Amended and Restated OEF Fund Trust agreement.

The key elements of which are: − Cash draws from OEF-Unreserved were established in fiscal 2011at $2.4 million to the Olympic Oval and $1.1 million to Canada Olympic Park, with future annual draw increases indexed to the Canadian Consumer Price Index; − That contributions from the University of Calgary to the operations of the Olympic Oval were established at $1.0 million with ongoing annual commitments indexed to the Canadian Consumer Price Index; − No encroachments are allowed at any time through to 2030 on the original fund balance of $34.7 million (value in 1987 upon inception of the OEF-Unreserved). − In the event the value of the OEF-Unreserved declines to $42.0 million, the fund must be reviewed by the parties to assess the fund’s ability to continue funding annual distributions; and − The parties to the amended and restated agreement must meet three (3) years prior to March 31, 2030 to review the trust fund and determine whether the Olympic Oval should continue to be operated as a training and competition facility after that date.

For fiscal 2015, the indexed authorized draw from the OEF-Unreserved was $3.7 million (2014 - $3.7 million), which differs from the actual amount drawn of $4.3 million due to timing. The additional $0.6 million relates to the year ended March 31, 2014 (accrued at that date, but not drawn until April 2014). Of the $4.3 million drawn in the current fiscal year, $2.6 million was paid or payable to the University of Calgary for Olympic Oval operating costs (2014 - $2.5 million) and $1.7 million was retained by the Organization for Canada Olympic Park operating costs (2014 - $0.6 million).

11 Endowment Funds


11.Endowment Funds (continued):

(b) Oval Capital Reserve Fund:Under the terms of the OEF Trust Agreement and the Oval Long Term Operating Agreement (dated December 31, 1987 between the Government of Canada, the University of Calgary and the Organization), an Olympic Oval Capital Renewal Reserve was established to fund capital expenditures for building and equipment repair, renovation and replacement at the Olympic Oval. The original reserve was comprised of a Building Reserve and Special Equip-ment Reserve with eligible expenditures from each reserve defined by agreement. The Building Reserve required an annual provision of $0.4 million up to a maximum amount in the reserve of $3.0 million while the Special Equipment reserve must maintain a minimum balance of $1.0 million, adjusted for CPI increases. As part of the terms of the new Amended and Restated OEF Fund Trust agreement and supporting agreements, the need for perpetual capital reserve allowances was eliminated (no further contributions to the reserve). As a result, the two previous reserves were consolidated into a single Oval Capital Reserve. Should the existing capital reserves deplete prior to March 31, 2030, the University of Calgary is solely responsible to fund required capital expenditures.

The OEF-Capital Reserve continues to earn investment income. No capital replacement expenditures were incurred out of the reserve in either fiscal 2015 or 2014.

(c) OCO Trust Fund:The OCO Trust Fund was established by a trust agreement between OCO ’88 and the Organization dated November 28, 1984 whereby OCO ’88 initially advanced $3.0 million to the Organization. By a trust agreement dated Decem-ber 31, 1987 between OCO ’88 and the Organization, OCO ’88 made a further contribution to the OCO Trust Fund of $33.0 million. The net revenue of the OCO Trust Fund is to be used:

(i) to pay for operation, maintenance and management expenses related to Canada Olympic Park pursuant to the Park Long Term Operating Agreement and the Legacy Agreement; (ii) to pay the Organization’s administrative expenses, including a loss for any prior fiscal year; and (iii) to allocate the remaining portion in the absolute discretion of the Trustee within the purposes of this Trust. Pursuant to a Board of Director resolution, the allocation of net revenue from the OCO Trust Fund to the Operat-ing Fund in a given fiscal year is limited to 5.0% of the market value of the OCO Trust fund as at March 31 of the previous year. Further allocation of earnings in excess of 5.0% is allowable subject to additional Board of Directors approval.

For fiscal 2015, $9.9 million (2014 - $10.8 million) was drawn from the OCO Trust fund for use in fulfilling its mandate. Refer to subsequent events Note 18.

World Short Track Selections, Olympic Oval.


12 Commitments and Contingencies

In the normal course of operations, the Organization is subject to a variety of legal and other claims. Management and the Organization’s legal counsel evaluate all claims on their apparent merits, and accrue management’s best es-timate of the costs to satisfy such claims. Management believes that the outcome of existing legal and other claims filed against the Organization may result in a liability, excluding associated legal fees, that approximates $195,000 (2014 - $109,000) resulting from injury and other claims outstanding. This has been provided for in the financial statements as at March 31, 2015.

The Organization uses utility hedge contracts to manage the risk of fluctuating electricity and gas prices, upon which WinSport heavily relies to operate its facilities. These hedge contracts are not considered derivative contracts, as they are for normal purchase and use requirements.

Calendar Years Electricity Gas

2015

2016

2017

2018

2019

In the normal course of business, the Organization has a number of multi-year contracts. The commitments under these contracts is as follows.

($000’s) 2016 1,095

2017 1,096

2018 815

3,006

At March 31, 2015 the Organization had a $25,000 letter of credit outstanding in favour of the Alberta Liquor Control Board, as a requirement to procure liquor (renewed annually).

Load following contract with a volumetric band width of +/- 20% at $57.15/MWh.

Load following contract with a volumetric band width of +/- 10% at $58.50/MWh.

Shaped block contract, providing a firm physical partial hedge on gas (up to 70% of volumes based

on normalized usage profiles) at $3.83/GJ.

No contracts in place.

Hydroworx underwater treadmill at the WinSport Medicine Clinic in the Markin MacPhail Centre.


13 Pension Plan

The Organization participates in a defined contribution pension plan whereby the Organization and participating em-ployees contribute equal amounts to the maximum allowed under the Income Tax Act. During the year, the Organiza-tion contributed $191,000 (2014 – $110,000) as its share towards the pension plan. The Organization does not have any unfunded liability relating to this plan and there have been no changes to the plan during the year.

14 Related Party Transactions

The Organization conducts business with firms in which some current members of the Board of Directors are part-ners or members of senior management. These transactions are initiated by management and are disclosed on an annual basis to the Board of Directors. The revenues earned and expenses incurred on these services in 2015 were $193,000 and $177,000 respectively (2014 - $89,000 and $40,000 respectively). These transactions are provided in the normal course of business under the same terms and conditions as unrelated companies.

Donations to WinSport’s program costs of $nil (2014 - $20,000) were received from members of WinSport’s Board of Directors.

Further, in the current fiscal year services relating to a number of capital projects totaling $289,000 (2014 - $607,000) were undertaken with a related party.

The amount of these transactions for the current and prior year is summarized by category in the table below.

($000’s) 2015 2014 Revenues Catering, event and facility use 166 89 Reimbursement for Public Art 27 -

193 89

Expenses Advertising - 2 Licenses 8 8 Legal - 17 Program supplies - 13 Training 161 - Professional Services 8 -

177 40 Donations WinSport programs - 20

- 20 Acquisition of PP&E Markin MacPhail Centre Construction - 607 Other Capital projects 289 -

Certain banking, loan and custodian services are provided by a financial institution where a former member of the Organization’s Board of Directors is a member of senior management. These services include the demand term loan, originally valued at $42.3 million, that was negotiated during fiscal 2011 (see Note 7(a)). As at March 31, 2015, $19.3 million was outstanding on this demand term loan.

15 Disclosure of Allocated Expenses

The Organization allocates to its capital campaign cost, which is reported in the Restricted Fund, the salaries of cer-tain management personnel who hold responsibilities related to the capital campaign. Costs allocated for 2015 were $nil (2014 - $99,000), based on time spent directly on the capital campaign.


16 Capital Management

The Organization views its capital as the combination of its indebtedness and the fund balances. The Organization manages its capital, and makes adjustments to it, as economic conditions evolve and subject to the availability of high performance sport facility opportunities.

In order to facilitate the management of its capital requirements, the Organization prepares annual capital and operating budgets that are updated as necessary depending on various factors, including the market valuation of its investments and general industry conditions. The annual budgets are approved by the Board of Directors.

The Organization currently has a working capital surplus of $0.6 million (2014 - $20.8 million deficit). The significant change in position resulted largely from the Organization’s $20.0 million note receivable transitioning from non-cur-rent, to current assets, between the two fiscal periods (related land sale transaction described in Note 4).

The Organization’s working capital position will fluctuate from year to year subject to how the Organization’s funds are invested in longer term facilities or held as cash.

The Organization’s term loan disclosed in Note 7(a) has a financial covenant requiring maintenance of a debt service coverage of 1:1. This covenant was met during 2015.

The demand term loan negotiated in fiscal 2011 as described earlier in Note 7(a) has a financial covenant that re-stricts the Organization from incurring debt of $0.5 million or more without the consent of the City of Calgary and the Organization’s financial institutions.

17 Supplemental Cash Flow Information

($000’s) 2015 2014 Changes in non-cash working capital Accounts receivable 585 1,348 Inventories (224) 60 Prepaid expenses and deposits (69) (45) Accounts payable (Operating Fund) 79 237 Deferred revenue and deposits (385) 102

(14) 1,702

18 Subsequent Events

Subsequent to March 31, 2015, a transfer of $2.3 million from the OCO Trust was made to the Operating Fund for use in fulfilling the Organization’s mandate.

19 Comparative Information

Certain comparative information has been reclassified to conform to the current year presentation. This reclassifica-tion did not result in any changes to the excess (deficiency) of revenues less expenses and distributions.

WinSport 2014/2015 Annual Report34 Lyndon Rush and Lascelles Brown during the XXII Olympic Winter Games in Sochi, Russia.

More than 120 national team athletes

in a variety of winter and summer sports train at

Winsport Canada Olympic Park and Winsport

Canmore.


SpECIAL ThAnk YOU TO ThE FOLLOwInG FUnDERS: Allan Markin

Keith MacPhail

Joan Snyder

John Langille

American Iron and Metal

Calgary Hotel AssociationAccommodations Partner of WinSport

Under ArmourAthletic Apparel, Footwear & Accessories Sponsor

Molson Coors CanadaBeer & Cider Sponsor

Royal Oak AudiAutomotive Sponsor

Ski Cellar SnowboardSki & Snowboard Retail Sponsor

RossignolSki Sponsor

BurtonSnowboard Sponsor

Driving ForceVehicle Rental Sponsor

Bow Cycle Bicycle Retail Sponsor

NorcoBicycle Sponsor

OakleyEye Protection Partner

GiroHead Protection Partner

FoxBody Protection Partner

Maple Leaf Foods Food Supplier

Springfree TrampolineTrampoline Sponsor

SPONSORS:

SUppORTERS: Canadian Sport Institute

B2ten

Active for Life

RBC Learn to Play Project

Pure North S’Energy Foundation

PowerWatts

HiTrainer

Pepsi

Sysco

Stantec

WorleyParsons

The Saddledome Foundation

Sport Canada

The Calgary Booster Club

The Government of Canada

The Government of Alberta

The City of Calgary

Canada’s Sports Hall of Fame

Sport Calgary

The Calgary Foundation

True Sport

Deloitte

Blake, Cassels & Graydon LLP

Fast & Female

ThANk YOU FOR YOUR CONTINUED SUPPORT OF ThE WINSPORTWINTER SPORT INSTITUTE

Documents

WinSport Annual Report Annual Report.pdf · 2015-08-26 · WinSport 2014/2015 Annual Report 5 Message From The Chair For more than 27 years, WinSport has evolved into one of the top