OUTDOOR POWER EQUIPMENT INSTITUTE OF CANADA Notes to the Financial Statements For the year ended 31 December 2024
5.
Reserve In a previous year, the Board of Directors passed a resolution to establish the reserve fund. The purpose of the reserve fund is to ensure financial stability in case of unforeseen events such as:
Fluctuations in costs;
The risk that OPEIC will be wound-up by the decision of the participants or as a consequence of regulatory change; Claims against OPEIC, its Board of Directors, or staff in excess of OPEIC’s insurance coverage; and To cover the cost of unanticipated or extraordinary items. Transfers to the reserve fund are made upon resolutions passed by the Board of Directors. Total contributions to the reserve fund are not to exceed two years' worth of expenses. The reserve fund consists of an investment in a term deposit and is independently managed. All income earned on the investment is initially reported in the unrestricted fund and then transferred to the reserve fund. During the year, $34,930 (2023 - $21,754) was transferred from unrestricted net assets to the reserve fund, representing the investment income earned on the term deposit. 6. Intangible asset
Accumulated Amortization
2024 Net
2023 Net
Cost
ERP Software $ 35,870 $ 17,935 $ 17,935 $ 25,109 Included in program administration expenses is $7,174 (2023 - $7,174) of amortization expense. 7. Related party transactions OPEIC is related to Outdoor Power Equipment Institute (OPEI), an organization incorporated in the United States, through a common Board of Directors. During the year, program administration services of $113,838 (2023 - $95,234) were provided by OPEI to OPEIC. These transactions are in the normal course of operations and have been valued in these financial statements at the exchange amount which is the amount of consideration established and agreed to by the related parties. Included in accounts payable and accrued liabilities is $8,241 (2023 - $8,493) due to OPEI for program administration services. This amount is unsecured, non-interest bearing and is subject to normal trade payable payment terms.
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