SEIMA 2019 Financial Statements 1

Saskatchewan Environmental Industry and Managers Association Inc. Financial Statements April 30, 2020 (Unaudited) Independent Practitioner’s Review Engagement Report To the Directors of Saskatchewan Environmental Industry and Managers Association Inc.: We have reviewed the accompanying financial statements of Saskatchewan Environmental Industry and Managers Association Inc. that comprise the statement of financial position as at April 30, 2020, and the statements of operations, changes in net assets and cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with Canadian accounting standards for not-for-profit organizations, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Practitioner’s Responsibility Our responsibility is to express a conclusion on the accompanying financial statements based on our review. We conducted our review in accordance with Canadian generally accepted standards for review engagements, which require us to comply with relevant ethical requirements. A review of financial statements in accordance with Canadian generally accepted standards for review engagements is a limited assurance engagement. The practitioner performs procedures, primarily consisting of making inquiries of management and others within the entity, as appropriate, and applying analytical procedures, and evaluates the evidence obtained. The procedures performed in a review are substantially less in extent than, and vary in nature from, those performed in an audit conducted in accordance with Canadian generally accepted auditing standards. Accordingly, we do not express an audit opinion on these financial statements. Conclusion Based on our review, nothing has come to our attention that causes us to believe that the financial statements do not present fairly, in all material respects, the financial position of Saskatchewan Environmental Industry and Managers Association Inc. as at April 30, 2020, and the results of its operations and its cash flows for the year then ended in accordance with Canadian accounting standards for not- for-profit organizations. Saskatoon, Saskatchewan Chartered Professional Accountants Saskatchewan Environmental Industry and Managers Association Inc. Statement of Financial Position As at April 30, 2020 (Unaudited) 20202019 Assets Current Cash(Note 3)117,290110,290 Accounts receivable7,5348,395 Prepaid expenses5,7013,162 GST recoverable844- 131,369121,847 Liabilities Current Accounts payable and accruals60,58733,049 Deferred revenue9,218- GST payable-756 69,80533,805 Net Assets Internally restricted net assets40,00040,000 Unrestricted net assets21,56448,042 61,56488,042 131,369121,847 Approved on behalf of the Board DirectorDirector The accompanying notes are an integral part of these financial statements 1 Saskatchewan Environmental Industry and Managers Association Inc. Statement of Operations For the year endedApril 30, 2020 (Unaudited) 20202019 Revenue Memberships15,33725,972 Sponsorship8,00033,000 Event registrations39048,729 Interest262192 Miscellaneous-109 Total revenue23,989108,002 Expenses Contracted services17,21151,475 Management fees17,00017,000 Professional fees5,2104,884 Bank charges and interest3,3441,782 Subscriptions1,9432,340 Insurance1,6741,674 Rent1,1821,365 Office9381,060 Telephone778481 Travel7711,796 Licences and fees416- Meals and entertainment-1,009 Miscellaneous-105 50,46784,971 Excess (deficiency) of revenues over expenses(26,478)23,031 The accompanying notes are an integral part of these financial statements 2 Saskatchewan Environmental Industry and Managers Association Inc. Statement of Changes in Net Assets For the year endedApril 30, 2020 (Unaudited) Internally restricted net assets Unrestricted net assets 20202019 Net assets, beginning of year40,00048,04288,04265,011 Excess (deficiency) of revenues over expenses -(26,478)(26,478)23,031 Net assets, end of year40,00021,56461,56488,042 The accompanying notes are an integral part of these financial statements 3 Saskatchewan Environmental Industry and Managers Association Inc. Statement of Cash Flows For the year endedApril 30, 2020 (Unaudited) 20202019 Cash provided by (used for) the following activities Operating Excess (deficiency) of revenues over expenses(26,478)23,031 Changes in working capital accounts Accounts receivable861(5,828) GST recoverable/payable(1,600)1,373 Prepaid expenses(2,539)(1,465) Accounts payable and accruals27,53828,610 Deferred revenue9,218(3,350) Increase in cash resources7,00042,371 Cash resources, beginning of year110,29067,919 Cash resources, end of year117,290110,290 The accompanying notes are an integral part of these financial statements 4 Saskatchewan Environmental Industry and Managers Association Inc. Notes to the Financial Statements For the year endedApril 30, 2020 (Unaudited) 1.Incorporation and nature of the organization Saskatchewan Environmental Industry and Managers Association Inc. (the “Association”) is incorporated in Saskatchewan under The Non-Profit Corporations Act, 1995 as a not-for-profit organization and is registered as a Non-Profit Organization under the Income Tax Act. The Association operates programs aimed at promoting professional environmental management principles and appropriate standards from the point of view of the environmental manager. 2.Significant accounting policies The financial statements have been prepared in accordance with Canadian accounting standards for not-for-profit organizations and include the following significant accounting policies: Cash and cash equivalents Cash and cash equivalents include balances with banks and short-term investments with maturities of three months or less. Income taxes No provision has been made for income taxes as none of the activities carried on by the Association are subject to income taxes. Revenue recognition The Association follows the deferral method of accounting for contributions. Unrestricted contributions are recognized as revenue when received or receivable if the amount to be received can be reasonably estimated and collection is reasonably assured. Event registrations are recognized when services are provided, the price is determinable and collection is reasonably assured. Membership revenue received in advance is deferred and recognized in the year to which it relates. Sponsorship amounts are recognized as revenue when the amount to be received can be reasonably estimated and ultimate collection is reasonably assured, and if related to an event, subsequent to the event taking place. Financial instruments The Association recognizes its financial instruments when the Association becomes party to the contractual provisions of the financial instrument. All financial instruments are initially recorded at their fair value, including financial assets and liabilities originated and issued in a related party transaction with management. Financial assets and liabilities originated and issued in all other related party transactions are initially measured at their carrying or exchange amount in accordance with Section 3840 Related Party Transactions. At initial recognition, the Association may irrevocably elect to subsequently measure any financial instrument at fair value. The Associationhas not elected to measure any financial instruments at fair value. All financial assets and liabilities are subsequently measured at amortized cost. Transaction costs and financing fees directly attributable to the origination, acquisition, issuance or assumption of financial instruments are added to the carrying amount for those financial instruments subsequently measured at amortized cost. Financial asset impairment The Association assesses impairment of all of its financial assets measured at amortized cost. When there is an indication of impairment, the Association determines whether it has resulted in a significant adverse change in the expected timing or amount of future cash flows during the year. If so, the Association reduces the carrying amount of any impaired financial assets to the highest of: the present value of cash flows expected to be generated by holding the assets; the amount that could be realized by selling the assets; and the amount expected to be realized by exercising any rights to collateral held against those assets. Any impairment, which is not considered temporary, is included in current year excess (deficiency) of revenues over expenses. The Association reverses impairment losses on financial assets when there is a decrease in impairment and the decrease can be objectively related to an event occurring after the impairment loss was recognized. The amount of the reversal is recognized in the excess (deficiency) of revenues over expenses in the year the reversal occurs. 5 Saskatchewan Environmental Industry and Managers Association Inc. Notes to the Financial Statements For the year endedApril 30, 2020 (Unaudited) 2.Significant accounting policies (Continued from previous page) Measurement uncertainty (use of estimates) The preparation of financial statements in conformity with Canadian accounting standards for not-for-profit organizations requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. These estimates and assumptions are reviewed periodically and, as adjustments become necessary they are reported in excess (deficiency) of revenues over expenses in the years in which they become known. 3.Cash The Association has internally restricted $40,000 of its cash balance as described in Note 4. The Association maintains a separate bank account to segregate the restricted cash from the Association's operating account. This account has $40,000 in it at April 30, 2020, plus interest earned on the balance. 4.Restrictions on net assets Internally restricted net assets During the year ended April 30, 2017, the Association's Board of Directors internally restricted $13,000 of net assets to be held for future Sustain Tech conference obligations, in the event the conference does not generate net profits. In addition during the year ended April 30, 2017, the Association’s Board of Directors internally restricted net assets of $20,000 to fund an operating reserve with the intention of growing the reserve to an amount equal to the Association’s annual operating budget over a three year period. During the year ended April 30, 2019, the Association's Board of Directors internally restricted net assets of $7,000 associated with the intention of growing the reserve mentioned above. These restricted amounts are not available for other purposes without approval of the Board of Directors and are funded by $40,000 of cash as outlined in Note 3. 5.Financial instruments The Association, as part of its operations, carries a number of financial instruments. It is management's opinion that the Association is not exposed to significant interest, currency, credit, liquidity or other price risks arising from these financial instruments. 6 Saskatchewan Environmental Industry and Managers Association Inc. Notes to the Financial Statements For the year endedApril 30, 2020 (Unaudited) 6.Significant event COVID-19 During the year, there was a global outbreak of COVID-19 (coronavirus), which has had a significant impact on businesses through the restrictions put in place by the Canadian, provincial and municipal governments regarding travel, business operations and isolation/quarantine orders. At this time, it is unknown the extent of the impact the COVID-19 outbreak may have on the Association as this will depend on future developments that are highly uncertain and that cannot be predicted with confidence. These uncertainties arise from the inability to predict the ultimate geographical spread of the disease, and the duration of the outbreak, including the duration of travel restrictions, business closures or disruptions, and quarantine/isolation measures that are currently, or may be put in place by Canada and other countries to fight the virus. On March 11, 2020, COVID-19 was declared a global pandemic. In response to the declaration, the Association has taken the following actions during the fiscal year: - The Association cancelled its SustainTech conference scheduled for March 19, 2020, and offered refunds to all registrants. The Association continues to assess the situation as it evolves and make changes to their operations in response. While the extent of the impact is unknown, this outbreak has caused the changes as discussed above, and possible other changes not yet known, all of which could negatively impact the Association's business and financial condition. 7