LESBIAN, GAY, BISEXUAL, TRANSSEXUAL

AND TRANSGENDER PRIDE TORONTO

(operating as Pride Toronto)

Financial Statements
Year ended July 31,2009

Adams & Miles LLP

Chartered Accountants
PRIDE TORONTO
Index to Financial Statements
July 31, 2009

PAGE

AUDITORS' REPORT.................................................................................................. 1

STATEMENTOF FINANCIALPOSiTION.... 2

STATEMENTOF CHANGES IN NET ASSETS................................................................. 3

STATEMENTOF OPERATIONS...... 4

STATEMENTOF CASH FLOWS................................................................................... 5

NOTES TO FINANCIALSTATEMENTS........................................................................... 6-9

Adams & Miles LLP

Chartered Accountants
 501-2550 Victoria Park Ave. 200- 195 County Court Blvd.
Toronto, ON M2J 5A9 Brampton, ON L6W 4P7
ADAMS & MILES LLP Tel 416502.2201 Tel 905 459.5605
Chartered Accountants Fax 416502.2210 Fax 905 459.2893

AUDITORS' REPORT

To the Members of
Pride Toronto

We have audited the statement of financial position of Pride Toronto as at

July 31, 2009 and the statements of changes in net assets, operations and
cash flows for the year then ended. These financial statements are the
responsibility of the Organization's management. Our responsibility is to
express an opinion on these financial statements based on our audit.

Except as noted in the following paragraph, we conducted our audit in

accordance with Canadian generally accepted auditing standards. Those
standards require that we plan and perform an audit to obtain reasonable
assurance whether the financial statements are free of material misstatement.
An audit includes examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement
presentation.

In common with many not-for-profit organizations, the Organization derives

revenue from donations and fundraising. In addition, the Organization derives
revenue from beverage sales. The completeness of this revenue is not
susceptible to satisfactory audit verification. Accordingly, verification of this
revenue was limited to the amounts recorded in the records of the
Organization and we were not able to determine whether any adjustments
might be necessary to donation and fundraising revenue, beverage sales,
excess of revenue over expenditures, assets, liabilities and net assets.

In our opinion, except for the effect of adjustments, if any, which we might
have determined to be necessary had we been able to satisfy ourselves
concerning the completeness of donation revenue, fund raising revenue and
beverage sales referred to above, these financial statements present fairly, in
all material respects, the financial position of the Organization as at
July 31, 2009 and the results of its operations and its cash flows
for the year then ended in accordance with Canadian generally accepted
accounting principles.

)f.dams e:l :Miles LL(JJ

Chartered Accountants
Licensed Public Accountants

Toronto, Canada
October 6, 2009

An independent firm associated

www.adamsmiles.com with AGN International Ltd.
PRIDE TORONTO
Statement of Financial Position
July 31, 2009

2009 2008
(Note 9)

Assets
Current
Cash and cash equivalents $ 219,297 $ 294,764
Accounts receivable 452,988 346,319
Inventory 28,266
Prepaid expenditures 28,503 20,774
729,054 661,857
Capital assets (Note 3) 27,198 28,493

756,252 690,350

liabilities
Current
Accounts payable and accrued 433,845 229,338
Net assets $ 322,407 $ 461,012

Net Assets Represented by

Unrestricted $ 295,209 $ 132,519
Invested in capital assets 27,198 28,493
Stabilization fund 250,000
Insurance reserve 50,000
$ 322,407 $ 461,012

Approved on behalf of the Board:

Director
Director

2 Adams & Miles LLP

Chartered Accountants
PRIDE TORONTO
Statement of Changes in Net Assets
Year ended July 31, 2009

Invested in Stabilization Insurance Total Total

Unrestricted capital assets fund reserve 2009 2008
(Note 9)
Balance, beginning of year $ 132,519 $ 28,493 $ 250,000 $ 50,000 $ 461,012 $ 419,040

Excess of revenue over expenditures

(expenditures over revenue) (130,736) (7,869) - - (138,605) 41,972

Interfund transfers 293,426 6,574 (250,000) (50,000)

Balance, end of year $ 295,209 $ 27,198 $ - $ - $ 322,407 $ 461,012

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Adams & Miles LLP
Chartered Accountants
PRIDE TORONTO
Statement of Operations
Year ended July 31, 2009

2009 2008
(Note 9)

Revenue
Sponsorship $ 1,225,044 $ 647,675
Grants (Note 6) 971,800 638,914
Beverage sales 337,611 334,661
Permits and fees 238,523 191,316
Donations and fundraising 184,359 184,350
Media and guide advertising sales 56,138 73,014
Interest and other 6,037 6,867

3,019,512 2,076,797

Expenditures
Media and promotion 997,788 364,361
Festival infrastructure 485,789 406,909
Salaries and benefits 423,139 281,427
Entertainment and events 335,027 300,586
Office and administration 265,917 119,343
Beverage cost of sales 226,321 208,963
Community outreach, fundraising and bursaries 137,346 119,646
Occupancy 82,674 53,162
Communications and security 67,695 78,401
Insurance 65,124 49,008
Volunteer costs 63,428 49,340
Amortization 7,869 3,679

3,158,117 2,034,825

Excess of revenue over expenditures (expenditures over

revenue) $ (138,605) $ 41,972

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Chartered Accountants
PRIDE TORONTO
Statement of Cash Flows
Year ended July 31,2009

2009 2008
(Note 9)

Cash provided by (used in)

Operating activities
Excess of revenue over expenditures (expenditures over
revenue) $ (138,605) $ 41,972
Amortization 7,869 3,679

(130,736) 45,651
Changes in
Accounts receivable (106,669) (186,579)
Inventory (28,266)
Prepaid expenditures (7,729) (12,904)
Accounts payable and accrued 204,507 58,475

(68,893) (95,357)

Investing activities
Purchase of capital assets (6,574) (21,953)

Change in cash position (75,467) (117,310)

Cash and cash equivalents, beginning of year 294,764 412,074

Cash and cash equivalents, end of year $ 219,297 $ 294,764

Cash and cash equivalents consist of:

Cash $ 135,698 $ 241,910
Short-term investments 53,518 52,854
Term deposits 30,081

$ 219,297 $ 294,764

Other information
Interest received $ 898 $ 6,399

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PRIDE TORONTO
Notes to Financial Statements
Year ended July 31, 2009

1. The Organization

Pride Toronto was incorporated as a not-for-profit organization without share capital

under the laws of Ontario to promote the LGBTTIQQ2S (Lesbian, Gay, Bisexual,
Transsexual, Transgender, Intersex, Queer/Questioning, 2Spirited) communities. The
Organization is exempt from income tax in Canada as a not-for-profit organization under
Section 149(1 )(L) of the Income Tax Act (Canada).

2. Summary of significant accounting policies

The preparation of financial statements in accordance with Canadian generally accepted

accounting principles requires management to make estimates and assumptions that
affect the reporting amount of assets and liabilities and disclosure of contingent assets
and liabilities at the date of the financial statements and the reported amount of revenue
and expenditures during the reported year. These estimates are reviewed periodically,
and, as adjustments become necessary, they are reported in the result of operations in
the year in which they become known.

Accrual basis of accounting

Revenue and expenditures are recorded on the accrual basis of accounting under which
they are recorded in the financial statements in the year they are earned or incurred
respectively, whether or not such transactions have been settled by the receipt or
payment of money.

Fund accounting
The accounts of the Organization are maintained in accordance with the principles of
fund accounting and accordingly the resources are classified for accounting and
reporting purposes into funds determined by the purpose for which those funds are held.
The types of funds held are:

Operating Fund - This fund includes unrestricted revenue sources received from various
federal, provincial and municipal level grants, festival revenue, fundraising revenue and
day-to-day expenditures.

Capital Assets Fund - This fund reports the net assets of the Organization invested in
the office equipment, computers, furniture and fixtures.

Insurance Reserve Fund - This fund was established to self-insure claims up to the
amount of the deductible of the Organization's insurance policy.

Stabilization Fund - This fund was established to be used in case of financial demands
that arise as a result of funding volatility.

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Chartered Accountants
PRIDE TORONTO
Notes to Financial Statements
Year ended July 31, 2009

2. Summary of significant accounting policies - cont'd

Inventory
Inventory, consisting of various merchandise, is valued at the lower of cost and net
realizable value. Cost is determined using the first-in, first-out method.

Capital assets
Capital assets are recorded at cost and are being amortized over their estimated useful
lives on the following basis. The annual amortization rates and methods are as follows:

Equipment 20% declining balance

Furniture and fixtures 20% declining balance
Computer equipment 20% declining balance

Capital assets individually in excess of $1,000 are capitalized in the statements.

Revenue recognition
Revenue is recognized when received or receivable if the amount to be received can be
reasonably estimated and collection is reasonably assured.

The Organization follows the deferral method of revenue recognition. Under the deferral
method, grants received in the year for expenditures to be incurred in the following year
are recorded as deferred revenue.

Non-monetary exchanges of goods and services are recorded at fair market of

consideration received, as agreed-upon by the Organization and its vendors.

3. Capital assets

2009 2008
(Note 9)

Accumulated Net Book Net Book

Cost Amortization Value Value

Equipment $ 23,218 $ 7,860 $ 15,358 $ 16,304

Furniture and fixtures 7,719 1,867 5,852 3,634
Computer eguipment 14,825 8,837 5,988 8,555

$ 45,762 $ 18,564 $ 27,198 $ 28,493

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Chartered Accountants
PRIDE TORONTO
Notes to Financial Statements
Year ended July 31,2009

4. Credit facility

The Organization has available a demand revolving line of credit in the amount of
$250,000 bearing interest at the bank prime rate plus 2.50%. This credit facility is
secured by a general security agreement. No amount is outstanding on the line of credit
as at year end.

5. Contingent liabilities

The Organization is subject to a dispute with a supplier regarding contract fees.

Management has made a provision of $10,000 for settlement in the current year. In the
opinion of the management, it is expected that the ultimate resolution of this dispute will
not have a material effect on the Organization's position.

6. Grants

Grants recognized in the year were as follows:

2009 2008

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Chartered Accountants
PRIDE TORONTO
Notes to Financial Statements
Year ended July 31, 2009

7. Commitments

The Organization has entered into a lease agreement to rent its office space until
February 28, 2012 and a lease for an office photocopier. Minimum lease payments in
the next five years under the terms of the leases are as follows:

2010 $ 89,876
2011 125,126
2012 134,126
2013 139,782
2014 142,500

The Organization has entered into a contract to designate CTV and CP24 as exclusive
broadcast media sponsors of the Organization for 2010 and 2011 Pride Toronto events,
in return for media support to be provided to the Organization.

8. Financial instruments

The Organization's financial instruments consist of cash, accounts receivable and

accounts payable and accrued. It is management's opinion that the Organization is not
exposed to significant interest, currency or credit risks arising from these financial
instruments. The fair value of these financial instruments approximates their carrying
values, unless otherwise noted.

9. Comparative amounts

The comparative amounts were examined by another firm of public accountants and
were subject to an audit report dated October 7, 2008.

Certain comparative amounts have been reclassified to conform to the current year's
financial statement presentation.

9 Adams & Miles LLP

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