This action might not be possible to undo. Are you sure you want to continue?
1 2 4 5 6 7 8 9 President’s Message Chair’s Message Fund Development Experience Providers Facility Management Human Resources Sales and Marketing Finance
algary is one of the most active, vibrant cities in Canada and Talisman Centre is the hub of that energy. First opened in 1983, Talisman Centre has become the second most widely visited multi-sport facility in North America through innovative programming and leading-edge technology. The newly renovated and expanded facilities include five gymnasiums, two tracks, more than 20,000 square feet dedicated to cardio and weight training and four pools including two 50m pools, dive tank, teaching pool, two hot tubs and a steam room. The Lindsay Park Sports Society expertly manages Talisman Centre on behalf of the people of Calgary. A non-profit society, the LPSS Board of Governors has 20 volunteer members — 12 representing sporting communities, three representing neighbouring communities, two representing Public and Catholic School Boards, a Chair, the past Chair and a representative from the Past Presidents’ Advisory Committee. An enthusiastic team of experts conducts Talisman Centre’s daily operations — 41 full-time and 212 part-time employees.
10 Auditors’ Report 11 Financial Statements
Mission Talisman Centre is a dynamic organization dedicated to providing people of different ages and abilities inspiring, developmental sport and wellness experiences, assisting them to achieve their goals. Dual ManDate To provide training and competition facilities and services for the development of Calgary’s high performance athletes in their respective dryland and aquatic sports. To provide facilities, programs and services for the wellness and recreational sporting needs of the citizens of Calgary.
2225 Macleod Trail South, Calgary, Alberta T2G 5B6 403-233-8393 www.talismancentre.com
“In 2007 we wanted to get back to basics and focus on things that members, program users and sport partners told us was important to them.”
We went about trying to establish long-term member loyalty in a number of ways. We introduced additional value-added programming, and made sure our employees were well-trained, friendly, and demonstrated an enthusiastic “can-do attitude”. We made sure that our communications were effective and timely and that customers could enjoy a clean and well maintained environment. Improvement in all of these areas leads to long-term financial sustainability. I’m happy to report that the year-end customer survey indicated that the efforts put forth by employees to deliver on what people wanted to see, was definitely positive and heading in the right direction. These efforts to improve will not stop with the end of the fiscal year; they will be carried on into 2008 and beyond. Talisman Centre found itself in the middle of a major labour shortage in 2007, amidst an economic boom that was being experienced everywhere in Alberta. Many service industry organizations closed their doors in the face of this challenging market, or limped along with lackluster customer service. Talisman Centre made preserving that positive customer service experience one of its top priorities. In order to attract and retain quality employees, we addressed wages on more than one occasion, enhanced employee benefits, provided incentives, and asked existing employees to work harder to compensate for staff shortages when we were unable to fill positions. I feel that the employees of Talisman Centre rallied together and accepted the challenge to ensure that we delivered a consistently positive customer experience. The customer survey at the end of the year speaks to the fact that members, program users and sport partners felt we made a positive difference in tough times. I look forward to celebrating our 25th Anniversary in 2008 with employees and volunteers, members, program users, and sport partners. It should prove to be a very inspirational year as we send many athletes to the 2008 Beijing Summer Olympics.
Robin Mitchell President and Chief Operating Officer
Talisman Centre for Sport and Wellness • Annual Report 2007 1
“To excel and achieve our goals, we must have a shared vision and clear business principles that support Lindsay Park Sports Society’s dual mandate, that will guide us on the path we will travel.”
2007 was a year of renewed focus on the core business of Talisman Centre and revitalized efforts to provide strong customer service as well as value-added programs and services to the public, our members, and our sport partners. This allowed our revenue to remain consistently strong and to grow throughout the year. On the expense side, the vibrant economy in Calgary continued to pose significant labour cost and labour shortage challenges for many service industry providers, including Talisman Centre. While not an easy task, the management team was diligent and successful in working with staff to actively find ways to recruit and retain quality staff in order to sustain a high level of customer service. Such efforts resulted in a solid financial performance and positive net contribution to reserves. On the community investment side, the LPSS struck up a new Fund Development Committee. This committee’s goal and mandate was to determine a long-term fund development strategy. From this, the Talisman Centre Access Advantage Fundraising Campaign successfully launched in 2007 with the support and full participation by all board members as well as the management team. I want to express my gratitude to my fellow board members, the leadership team, and employees for their commitment and tireless efforts in making Talisman Centre the facility of choice for Calgarians and the next generation of developmental and high performance athletes. It has been a privilege and honour to have served as Chair of the Board of Governors in 2006 and 2007.
Verla Wong Board of Governors Chair
2 Talisman Centre for Sport and Wellness • Annual Report 2007
Board of Governors
Rob Davis* Roy Diehl James Dixon Carolyn Bosch Peter Hiebert Dwight Jack * Competitive Swimming (Vice Chair) Competitive Swimming Fencing Field Hockey Synchronized Swimming Rhythmic Gymnastics (Executive Committee Chair) Neil Kuntz Water Polo Kevin Lockhart Soccer Bonnie-Jean Marconi Calgary Catholic School Board Garrett Mazurenko Volleyball Peter McKenzie Past Presidents Advisory Committee Alec Milne* Basketball (Treasurer) Ed Moore Athletics Thomas Parker Calgary Public School Board Gregory Rogers* Community Association (Secretary) Murray Schmidt* Diving (Member at Large) Gary Towsley Erlton Community Association Jill Tynan Health and Wellness Verla Wong* Board Chair * denotes Executive Committee Member
Lindsay Park Sports Society 2007 Bursary Award Winners
Talisman Centre believes in the power of sport to enhance the health and wellness of Canadians. Our Bursary Program was developed to financially assist athletes with various training and competition expenses. We are very proud of all the following 2007 Bursary Award Winners: Hailey Casper Dive Calgary Bojan Glisic Team Canada - Water Polo Kevin Graham Team Canada - Water Polo Brandon Jung Team Canada - Water Polo Jordan Smuszko Team Canada - Water Polo Seanna Mitchell Cascade Swimming Courtenay Grant Aquabelles Synchronized Swimming Mike Wenzlawe Team Canada - Water Polo Brittany Ozar Patriots Swimming Olivia Jack Chinook Rhythmique Gymnastics Derek Doerksen Cascade Swimming Erica Morningstar Patriots Swimming
2007 Management Team
Robin Mitchell Garth Glover Carol Kinley Ashley Myers Reg Verley Cynthia Watson Jenn Graham President and Chief Operating Officer Finance Manager Facility Manager Sport and Wellness Manager Sales and Marketing Manager Fund Development Manager Human Resources Manager
Talisman Centre for Sport and Wellness • Annual Report 2007 3
e ign Giving couldn’t btre is AnnuAl C AmPA Cen
that Talisman a of accessibility It is in the key are ing campaign. t annual fund-rais focusing its firs
M Fund Development Cynthia Watson, ion contact 03-355-1250 For more informat ncentre.com • 4 a cwatson@talism
Talisman Centre’s r customers regardless of physiu to belong for all o tal or financial ability. cal, men anager
ipat n rs to Partictionaliolace p Removing Bgarrieto be an inspira is oal
Cynthia Watson, Fund Development Manager, sees 2007 as a year focused on laying the groundwork for two projects that will see fruition in 2008: Talisman Centre’s 25th anniversary celebrations, and the new Access Advantage fundraising initiative. The initiative was conceived by the Lindsay Park Sports Society as a way to ensure that everyone can enjoy Talisman Centre regardless of physical, mental or financial difficulty. Watson sees these projects as part of “our community investment strategy and how we’re building our reputation in the community. ” Access Advantage is a fundraising initiative that focuses on reducing the barriers to participation for children, youth and families in the following four areas: 1. 2. 3. 4. Transportation and Equipment Youth at Risk Athletes in Need Admission Passes for Community Groups
“Our annual campaign target is $125,000,” says Watson, who anticipates raising the funds through special events and a direct mail campaign. The Access Advantage program is set to launch alongside the 25th anniversary celebrations. Those anniversary celebrations are set to begin in January 2008, and continue with special events throughout the coming year. These events will highlight the contributions that Talisman Centre has made to Calgary since opening its doors 25 years ago.
4 Talisman Centre for Sport and Wellness • Annual Report 2007
Ashley Myers, Sport and Wellness Manager, was pleased with how 2007 went from the standpoint of experience providers. It was a year characterized by the streamlining of programs and services. “We really looked at our department from a customer-needs perspective,” says Myers, “and we cut back some of those programs and services in 2007 that were less popular. Take those out of the mix and all of a sudden you have space in the facility to add more of what we were already doing very well.” The space freed up by eliminating some under-performing programs was used to bolster successful existing programs, or was made available for multisport public use, such as lane swimming, badminton or basketball. “We’re finding it difficult, at times, to provide our services as often as we’d like,” says Myers. The biggest challenge for Experience Providers in 2007 was staffing, particularly in Aquatics, Preschool, and Childcare. Aquatics saw over half of its staff turn over during the year, and a severe shortage from September through November. Along with salary adjustments, one solution to the staffing problem that is being put into place for 2008 is an in-house training program, so that less-experienced personnel can come to Talisman Centre and receive targeted training in their respective fields, be they lifeguards or personal trainers. A new position was created in 2007 for a Nutrition Coordinator, who will provide nutrition-specific services to a number of different programs. In 2008, Myers says the Experience Providers will be launching two new drop-in fitness classes, Group Power and Group Groove. “We’re really taking what the customer is asking for, which is more drop-in fitness classes, and placing them throughout the schedule.”
Talisman Centre for Sport and Wellness • Annual Report 2007 5
Staffing was a challenge that was felt across all departments in 2007, and Facility Management was no exception. Carol Kinley, Facility Manager at Talisman Centre, reports, “We struggled with filling custodial and building operator positions, but despite those challenges the year went very well.” Kinley understands that customer experience is a large part of what her department does. “Any mistake that happens or a breakdown that happens somewhere effects a magnitude of customer service issues,” she says, and expresses pride that her team was able to keep the building open and running smoothly throughout 2007. Kevin Chapman, the Facility Bookings Director at Talisman Centre, agrees that 2007 was a successful year. “We had a large number of special events throughout the year,” says Chapman, “Over 44 sporting-competition events, ranging in size from 50 to over 1000 participants.” These events included 27 invitational events, 8 provincial events, 5 national events, and 2 international events. “We had a number of notable events,” says Chapman, who highlights the Club National swim meet in particular. “It’s the highest-level swim meet that we hold in our facility, and 2007 was the second year we’ve hosted this prestigious event.” The Facility Management team continued to monitor the use of facility space in 2007 in an effort to maximize efficiency. “We evaluated the overall usage of space, and were able to identify a number of inefficiencies,” says Chapman, “We were able to reallocate some of the space that we felt wasn’t being used properly in order to improve our public services.” In 2008, Kinley knows that a potential facility enhancement project on the horizon will need her team’s attention and planning. “Strategically, we’ll be planning for two years out,” she says.
6 Talisman Centre for Sport and Wellness • Annual Report 2007
The Human Resources department faced a challenging but ultimately successful year in 2007. “Like most organizations we were faced with the challenges of Calgary’s labour market,” says Jenn Graham, the Human Resources Manager at Talisman Centre. “We had to get creative with making the people here and the departments run as effectively and productively as possible using what we had.” “There was a new HR strategy that was being implemented in 2007 to attract, engage and retain top talent.” Graham is enthusiastic at the progress made at Talisman Centre in 2007 to bring the facility into alignment with the rest of the Calgary labour market in terms of compensation. “Not only did we begin to play into that competitive market, but also, in some aspects, lead it,” says Graham, highlighting Customer Service in particular as a segment that found Talisman Centre at the higher end of the spectrum in terms of salary and benefits. In 2008, Graham anticipates putting strategies into place that will recognize and reward effective and productive employees, and launching several key training initiatives that will ensure everyone is given the tools and resources necessary to succeed. Graham is particularly excited about leadership training developed in 2007, which will be deployed in 2008. “If we have strong leaders, they will inspire employees to be great, and want to be here.” Another initiative set to launch in 2008 is TOTALRewards, which Graham says “encompasses learning and development, compensation that we provide to employees” and numerous other benefits and incentives that come with working at Talisman Centre beyond a paycheque.
Reg Verly, Sales and Marketing Manager at Talisman Centre, left the organization in December 2007, after five years of dedicated service. His ‘insideout’ marketing strategy and his relentless pursuit of excellence left a big mark on the organization.
Talisman Centre for Sport and Wellness • Annual Report 2007 7
Sales and marketing
“We had some really successful membership events in 2007,” says Kim Randall, Director of Sales for Talisman Centre, citing the Stampede Breakfast as one such event that was particularly well received. She is enthusiastic about the successes achieved in the realm of Food and Beverage, which began to offer a special “Athletes’ Lounge” at key sporting events in order to make the participants and event organizers feel cared for, and to encourage repeat bookings. “We lost some volume of people coming through the doors in 2007 with the increase in entrance fees,” says Randall, who sees that loss as one of 2007’s biggest challenges. Sales and Marketing, like all departments in 2007, struggled from a staffing standpoint, as it became more and more difficult to find and retain qualified employees in Calgary’s robust economy. “We now have a dedicated outside sales person,” says Randall, who believes we will see the impact of that position in terms of increased corporate memberships in 2008. Rob Bunka, Communications Director in 2007, is pleased with the progress made in 2007. “We continued with FitNews as a magazine publication,” reports Bunka, whose team successfully merged the program and services guide and FitNews editorial content into one magazine in the fall of 2007. “We also launched a new website in 2007,” Bunka reports. “It had a fresh look, was much more interactive, and much more informative.” The most significant contribution of the new website is its ability be easily and frequently updated with the latest information and schedules. In 2008, FitNews will go exclusively online, and customers will be encouraged to look to our website for the latest news and information. “Retail did phenomenally well,” Bunka says, noting that Breathe Apparel, which he oversees, well exceeded the revenue targets set at the beginning of the year.
8 Talisman Centre for Sport and Wellness • Annual Report 2007
Talisman Centre enjoyed a successful year in 2007. “We had a very robust year,” says Garth Glover, Finance Manager for Talisman Centre. “We had our highest revenue generation year in the history of the Lindsay Park Sports Society, along with our largest net bottom line.” A particular milestone, Glover notes, is that “we were able to bring our unrestricted net assets (reserves) into the black for the first time since 2002,” which was the year prior to Talisman Centre’s major expansion project. “Building our reserves is important as it will help Talisman Centre to offset future capital, equipment and operational requirements.” Many departments encountered some difficulty in attracting and retaining employees in 2007. “Staffing is our largest expense,” Glover says, adding, “it’s also probably our most important asset.” Two separate wage and salary adjustments made during the year helped a great deal in that regard, and the staffing issues felt in 2007 began to ease towards the end of the year. Looking forward to 2008, the Finance department has a great team in place, and is positioned to sustain the momentum they gained in 2007.
2007 Operating Revenue ■ Admissions, Memberships & Programs $6,345,638 ■ Facility Bookings $1,689,749 2007 Operating Revenue ■ Food Services $839,989 ■ Admissions, Memberships & Programs $6,345,638 City of Calgary $736,000 ■ Facility Bookings $1,689,749 ■ Food Services $839,989 2007 Operating Expenses ■ City of Calgary $736,000 ■ Facility Operations $3,189,257 ■ Experience Providers $2,667,575 2007 Operating Expenses ■ Character Development & Administration $1,531,981 ■ Facility Operations $1,014,792 Sales & Marketing $3,189,257 ■ Experience Providers $2,667,575 Food Services $710,069 ■ Character Development & Administration $1,531,981 ■ Sales & Marketing $1,014,792 ■ Food Services $710,069
Talisman Centre for Sport and Wellness • Annual Report 2007 9
To the Members of Lindsay Park Sports Society We have audited the statement of financial position of Lindsay Park Sports Society as at December 31, 2007 and the statements of operations, changes in net assets and cash flows for the year then ended. These financial statements are the responsibility of the Society’s management. Our responsibility is to express an opinion on these financial statements based on our audit. 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 our opinion, these financial statements present fairly, in all material respects, the financial position of the Society as at December 31, 2007 and the results of its operations and its cash flows for the year then ended in accordance with Canadian generally accepted accounting principles.
Chartered Accountants Calgary, Alberta April 24, 2008
10 Talisman Centre for Sport and Wellness • Annual Report 2007
Statement of Financial Position
at December 31, 2007
2007 Current Assets Cash and cash equivalents Accounts receivable Pledges receivable Inventory Prepaid expenses 2006
$ 3,753,015 440,504 – 108,423 1,052 4,302,994
$ 2,752,818 319,290 12,000 48,771 20,378 3,153,257 923,020 166,687 19,743 4,262,707
Capital Assets (note 3) Donations on deposit with Parks Foundation, Calgary (note 10) Tenant improvements
893,852 131,369 – 5,328,215
Current Liabilities Accounts payable and accrued liabilities Deferred sponsorship – Talisman Energy Deferred revenue and grants Deposits from tenants Deferred contributions (note 4)
804,203 500,000 1,441,952 2,746,155 818,767 868,767 3,594,562
864,491 500,000 1,220,955 2,585,446 868,767 918,767 3,483,853 923,020 249,316 (393,482) 778,854 4,262,707
net ASSetS (DeFiCienCy)
Net assets invested in capital assets Net assets internally restricted for athletic bursaries (note 6) Unrestricted net assets (deficiency)
893,852 249,316 590,485 1,733,653
Commitments (note 10) APPROVED BY THE BOARD OF GOVERNORS:
Verla Wong Chair
Alec Milne Treasurer
Talisman Centre for Sport and Wellness • Annual Report 2007 11
Statement of Operations
For the year ended December 31, 2007
2007 2006 $ 5,839,650 1,544,143 780,147 96,567 715,000 8,975,507 3,035,393 2,594,627 1,514,867 865,764 637,786 96,567 8,745,004 230,503 102,789 636,546 (4,866) 734,469 300,326 – 300,326 664,646 558,670 16,667 575,337 650,647 (75,310) 589,336
Admissions, Memberships & Programs Facility Bookings Food Services Stanley Park Pool (note 6) Operating Contribution from City of Calgary
$ 6,340,264 1,689,749 839,989 5,374 736,000 9,611,376
Facility Operations (note 8) Experience Providers Character Development & Administration Sales & Marketing Food Services Stanley Park Pool (note 6)
3,189,257 2,662,201 1,531,981 1,014,792 710,069 5,374 9,113,674
Excess for the year before the following Other Revenue Investment Income Naming Rights and Other Sponsorships Gain (loss) on disposal of capital assets
497,702 146,335 664,033 6,641 817,009
Other Expenses Amortization of capital assets Other
304,820 29,419 334,239
Excess for the year before the following Capital Contributions Capital Contribution from City of Calgary Capital Contributions from Other Sources Capital Expenses Building improvements and capital expenditures
980,472 461,332 16,667 477,999 503,672 (25,673)
Net excess for the year
12 Talisman Centre for Sport and Wellness • Annual Report 2007
Statement of Changes in Net Assets
For the year ended December 31, 2007
Invested in Capital Assets $ Internally Restricted for Athletic Bursaries $ (note 7) 249,316 – – 249,316 Unrestricted $ Total 2007 $ Total 2006 $
Balance – beginning of year Net Investment in capital assets Net excess for the year Balance – end of year
923,020 275,652 (304,820) 923,020
(393,482) (275,652) 1,259,619 (393,482)
778,854 – 954,799 778,854
189,518 – 589,336 189,518
Talisman Centre for Sport and Wellness • Annual Report 2007 13
Statement of Cash Flows
For the year ended December 31, 2007
CASh PRoviDeD by (uSeD in)
Operating activities Net excess for the year Items not affecting cash Amortization of capital assets Amortization of deferred contribution Amortization of tenant improvements (Gain) loss on disposal of capital assets Net change in non-cash working capital items $ 954,799 304,820 (50,000) 19,743 (6,641) 1,222,721 (831) 1,221,890 Financing and investment activities Decrease in pledges receivable Additions to capital assets Proceeds on sale of capital assets Decrease in donations on deposit with Parks Foundation, Calgary (Decrease) in deposits from tenants 12,000 (297,281) 28,270 35,318 – (221,693) Increase in cash and cash equivalents Cash and cash equivalents – Beginning of year Cash and cash equivalents – End of year Cash and cash equivalents consist of: Cash Guaranteed investment certificates 1,000,197 2,752,818 3,753,015 1,109,648 2,643,367 3,753,015 $ 589,336 300,326 (50,000) 39,485 4,866 884,013 268,448 1,152,461 122,583 (252,202) 11,744 44,739 (266) (73,402) 1,079,059 1,673,759 2,752,818 1,012,293 1,740,525 2,752,818
14 Talisman Centre for Sport and Wellness • Annual Report 2007
Notes to Financial Statements
December 31, 2007 1. NATuRe ANd PuRPOSe OF The SOCieTy Lindsay Park Sports Society (the “Society”) is a not-for-profit, non-taxable organization incorporated under the Societies Act of the Province of Alberta. The purpose of the Society is to oversee and direct the management and operation of Talisman Centre (“the Centre”) in accordance with its by-laws and a management and operating agreement between the Society and the City of Calgary. As part of this agreement, the City provides the Society with annual operating and capital grants. These grants are for the original building only with the operating and capital requirements of the two expanded buildings being the sole responsibility of the Society. The City of Calgary is the owner of the Centre and the land upon which it is located. It provides training, competition facilities and services for the development of Calgary’s high performance athletes in dryland and aquatic sports in addition to providing facilities, programs and services for the fitness and recreational sporting needs of the citizens of Calgary. 2. ChANGe iN ACCOuNTiNG POLiCieS effective 2007 Effective January 1, 2007, the Society adopted the Canadian Institute of Chartered Accountants (CICA) Handbook Section 3855 Financial Instruments – Recognition and Measurement. This section provides guidance on when a financial instrument must be recognized on the balance sheet and how it is to be measured. It also provides guidance on the presentation of gains and losses on financial instruments. In both the current and prior year’s, the Society’s financial instruments consist of cash and cash equivalents, accounts receivable, pledges receivable, donations on deposit with Parks Foundation, Calgary, accounts payable and accrued liabilities and deposits from tenants. The fair value of these financial instruments approximates their carrying value. Accordingly, the adoption of this standard has not had an impact on the financial statements of the Society, either as a transitional adjustment or in the reporting of current year’s balances. Prior year’s financial statements have not been restated for the adoption of this new accounting policy. effective in future years Financial Instruments – Presentation and Disclosure The CICA has issued two new accounting standards 3862 Financial Instruments – Disclosures, and Section 3863 Financial Instruments Presentation. These sections will replace section 3861 Financial Instruments – Disclosure and Presentation, revising and enhancing disclosure requirements while carrying forward its presentation requirements. These new sections will place increased emphasis on disclosure about the nature and extent of risks arising from financial instruments and how the entity manages those risks. The mandatory effective date is for fiscal years beginning on or after October 1, 2007. This new requirement is for disclosure only and will not impact the financial results of the Society.
Talisman Centre for Sport and Wellness • Annual Report 2007 15
Inventory The CICA issued Section 3031 Inventories, which will replace Section 3030 Inventories. This new standard is effective for fiscal years beginning on or after July 1, 2007 and the Organization will adopt this section effective January 1, 2008. Section 3031 provides more extensive guidance on measurement and expands disclosure requirements to increase transparency. The Society’s accounting policy for inventories consistent with measurement requirements of the new standard and therefore it is not anticipated that their results of the Organization will be impacted; however, additional disclosures will be required in relation to inventories carried at net realizable value, the amount of inventories recognized as an expense and the amount of any write downs of inventories. 3. SiGNiFiCANT ACCOuNTiNG POLiCieS Capital assets Moveable capital assets which are purchased by the Society are recorded at cost and movable capital assets which are donated to the Society are recorded at their fair value at the date of contribution. They are amortized on a straight-line basis over their estimated useful lives, to a maximum of twenty years. Immovable capital assets, which do not become the property of the Society, are expensed in the year of acquisition. Cash and cash equivalents Cash and cash equivalents include cash and short-term investments that are highly liquid and readily convertible to known amounts of cash. donated services Volunteers contribute a significant number of hours to assist in the management and operation of the Society. Because of the difficulty of determining the fair value of the services contributed, the value of volunteer services is not recorded in these financial statements. Financial instruments The Society is not exposed to undue interest rate, credit or foreign currency risk. inventory Inventory of food, beverages and clothing is recorded at the lower of cost and net realizable value. Cost is determined on an actual basis. Non-recording of City property The original building complex and its major equipment components were provided from the City of Calgary’s capital fund and are the property of the City; therefore they are not recorded in these financial statements. All building additions, improvements and immovable capital assets become the property of the City of Calgary and are expensed in the year incurred.
16 Talisman Centre for Sport and Wellness • Annual Report 2007
Revenue recognition The Society follows the deferral method of accounting for contributions. Restricted contributions are recognized as revenue in the year in which related expenses are incurred. Unrestricted contributions are recognized as received or receivable if the amount can be reasonably estimated and collection is reasonably assured. Admissions, memberships and programs fees as well as facility booking fees are recorded as revenue over the period that the services are rendered, with the prepaid portion recorded as deferred revenue. Sponsorships and grants are recognized as revenue in accordance with the terms of the sponsorship or grant agreement. Capital contributions used for building expansion and improvements and to acquire immovable capital assets which do not become the property of the Society are recorded as revenue in the same year as the expansion, improvement or acquisition is expensed. Investment income is recorded as investment income revenue when it is earned. use of estimates The preparation of financial statements in conformity with Canadian generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. Actual results may differ from the estimates. expenses Experience Provider expenses includes the costs of programs and services conducted by the aquatics, athletics and wellness departments. Character Development and Administration expenses include the costs of the human resources, finance and administration departments. Comparative figures Certain prior year figures have been reclassified to conform to the current year’s presentation. 4. CAPiTAL ASSeTS Accumulated amortization $ 1,140,931 301,670 200,950 51,374 1,694,925 2007 Cost Athletic equipment $ 1,794,529 Office furniture and equipment 427,073 Computer equipment 284,643 Café furniture and equipment 82,532 2,588,777 Net $ 653,598 125,403 83,693 31,158 893,852 2006 Net $ 613,452 206,462 63,811 39,295 923,020
Talisman Centre for Sport and Wellness • Annual Report 2007 17
5. deFeRRed CONTRiBuTiONS In 2005, the Society received an anonymous contribution of $1,000,000 in exchange for the right to name the fifty meter pool complex constructed in 2003 “The Calgary Foundation Aquaplex”. The naming rights are for a term of twenty years. The Society has recorded a portion of the contribution $50,000 (2006 – $50,000) as revenue for the year and deferred the balance of $818,767 (2006 – $868,767) which will be recognized as revenue on a pro-rata basis over the remaining term of the naming rights. 6. STANLey PARK POOL The Society had an agreement with the Calgary Outdoor Swimming Pool Association (COSPA) to operate the Stanley Park Swimming Pool which expired on December 31, 2006. This agreement is currently being renegotiated. Under the agreement, the Society received an operating grant of $nil (2006 – $15,000) from COSPA and must operate the pool in accordance with a public use policy. Once the public policy has been satisfied, the Society may operate the pool for its own account. In accordance with the public use policy, an operating contribution of $nil (2006 – $10,300) was paid to COSPA. The Stanley Park Society Swimming Pool was closed for fiscal 2007. Accordingly, COSPA paid the Society $5,037 to cover the expenses incurred by the Society to prepare for the pool to open. 7. iNTeRNALLy ReSTRiCTed FOR AThLeTiC BuRSARieS The Lindsay Park Development Foundation (“Foundation”) was dissolved on January 1, 2003 and the assets, liabilities and net assets were transferred to the Society. The purpose of the Foundation was to act as a trustee to administer the funds from the Western Canada Summer Games Foundation, together with any other funds received, for the purpose of improving the quality of the services offered at Talisman Centre and assisting the development of athletes training at the Centre. The Society has agreed to continue the work of the Foundation and accordingly has restricted the net assets received from the Foundation for the purpose of providing bursaries and grants to athletes and Sport Partners training at the Talisman Centre. 8. FACiLiTy OPeRATiONS Included in Facility Operations expense are the following utility expenses: 2007 Electricity Natural Gas Total $ 682,211 366,350 1,048,561 $ 2006 660,794 390,420 1,051,214
18 Talisman Centre for Sport and Wellness • Annual Report 2007
9. diSCLOSuRe OF A SiGNiFiCANTLy iNFLueNCed eNTiTy Lindsay Park Sports Society exercises significant influence over Swim Educators of Lindsay Park Inc. (“Swim Educators”) by virtue of its ability to appoint a majority of the board of directors and to manage the affairs of Swim Educators under the terms of a management contract. The management contract expired on June 17, 2007 and is currently being renegotiated. Swim Educators is a not-for-profit corporation pursuant to the Canada Corporations Act. Its objects are to educate, promote and perpetuate the art, safety and enjoyment of amateur swimming through instruction, training and publication and distribution of teaching and coaching aids and achievement awards. The Society has advanced $138,500 to Swim Educators. The advance bears interest at prime plus 1% and is repayable at the unanimous discretion of the board of directors of Swim Educators. The Society also has an outstanding account of $259,381 (2006 – $276,866) in accounts receivable for operating advances made to Swim Educators. The ability of Swim Educators to repay the loan and the outstanding account is uncertain because it is dependent on Swim Educators continuing ability to obtain sponsorship fees and to eventually generate revenue in excess of expenses. Because of the uncertainty of collection, the Society has provided an allowance for doubtful collection of the entire loan and the outstanding account in a prior year. The Society has included the following operating transactions with Swim Educators in its Statement of Operations: 2007 2006 Management contract fees earned Investment interest earned Swimming activity supplies purchased Rental income earned Contribution to Swim Educators of Lindsay Park 10. COMMiTMeNTS Access Advantage endowment Agreement In 2004, an endowment fund named Access Advantage was established at the Parks Foundation Calgary. The income from the endowment allows the Society to provide subsidies and fee assistance to patrons of limited economic means in order to improve their access to the Talisman Centre. In a prior year, the endowment fund received from an anonymous donor a donation of $1,250,000. The Society has agreed to increase the endowment fund to $3,000,000 by way of contributing at least 15% of its annual excess of revenues over expenses before internal allocations to the Endowment Fund. The contribution from the Society for 2007 was $168,494 (2006 – $104,001) and has been recorded as an accrued liability and Character Development and Administration expenses at year end.
Talisman Centre for Sport and Wellness • Annual Report 2007 19
$ 85,000 29,419 19,666 9,000 38,419
85,000 28,101 18,088 9,000 –
Original endowment donation Society’s 2005 contribution Society’s 2006 contribution Society’s 2007 contribution
1,250,000 82,236 104,001 168,494 1,604,731
Income related to this endowment amounted to $86,018 (2006 – $41,335) and has been included in Donations on Deposit with Parks Foundation, Calgary and was recognized as Naming Rights and Other Sponsorship revenue. Administration fees of $22,737 (2006 – $17,561) related to the Endowment Fund were paid to the Parks Foundation, Calgary and were recorded as Character Development and Administration expenses. The following is a continuity of the Donations on Deposit with the Parks Foundation, Calgary: 2007 Balance – Beginning of year Contributions Interest Administration charges Payment to Talisman Centre Endowment interest Administration charges on Endowment Balance – End of year energy Contracts a) Gas contract As at December 31, 2007, the Society has an agreement with Enmax for the period of August 1, 2006 to December 21, 2010 to purchase a predetermined amount of gigajoules at a predetermined price. The amount of the commitment under this new contract is $363,000 per annum to the end of the contract term. b) electrical contract The Society has an electrical agreement with Enmax for the period of July 1, 2006 to December 31, 2010 to purchase kilowatts at a predetermined price. 11. CuLTuRe, PARKS, ReCReATiON iNFRASTRuCTuRe iNVeSTMeNT PLAN (CPRiiP) In 2006, the Society was approved for $450,000 in funding for the purposes of major roof repairs and maintenance. In fiscal 2007, $145,000 (2006 – $70,000) in funds had been received with expenditures recorded of $148,965 (2006 – $27,666). The unused portion of $38,369 (2006 – $42,334) is recorded in deferred revenue and grants on the statement of financial position. $ 166,687 105 1,660 (364) (100,000) 86,018 (22,737) 131,369 $ 2006 211,426 400 3,412 (2,325) (70,000) 41,335 (17,561) 166,687
20 Talisman Centre for Sport and Wellness • Annual Report 2007
A special thanks to our sponsors who continue to make Talisman Centre the facility where you belong!
olympic, Paralympic and World Championship Medallists Karen Clark Le Poole Andrew Haley Karen Fonteyne Blythe Hartley Karen Larsen Brooke Zimmerman Kelly Kryczka Cari Din Kendra Ohama Carolyn Waldo Kristin Zernicke Cora Campbell Lori Radke Curtis Myden Mark Tewksbury Duff Gibson Michelle Cameron Coulter Erin Chan Michelle Stillwell Eryn Bulmer Barrett Reidun Tatham Janis Pardy Sharon Boyreko Joanne Kelly Sarah Alexander Jessica Sloan Past Board Presidents Bob Bratton, 1983-1984 Dennis Harley, 1984-1985 Arlene McGinn, 1985-1986 David Ardell, 1986-1987 Michael Welch, 1987-1988 Ken Johnston, 1988-1989 Don Buchignani, 1989-1990 Giles Parker, 1990-1991 Lorna Read, 1991-1992 Jim Dale, 1992-1993 Bill Eshom, 1993-1994 Chris Hampshire, 1994-1995 Staff and Volunteers Bernie Asbell, General Manager 1993-2005 Bill Porter, Long-time Volunteer Brenda Clarke, General Manager 1984-1990 Catherine Nielsen, Staff Member 1990-2005 Eldon Godfrey, Builder of LPSS 2002 Eric Rieger, Parks & Recreation 1983-1992 Mike Gavan, Board Member, 1994-2005 Mike Mears, Building Healthier Futures Fundraising 2001-2004 Peter VanderPyl, General Manager 1990-1993 Rick Grafton, Building Healthier Futures Fundraising 2001-2004 Sharon Koop, Staff Member 1990-2007 Sue Scott, Staff Member 1983-2002 Vicki Lines, Executive Assistant 1987-2006 David Madsen, 1995-1996 Ben Meulenbeld, 1996-1997 Peter McKenzie, 1997-1998 Ron Desrochers, 1998-1999 David Burgess, 1999-2000 Ken Fowler, 2000-2001 Wayne Arvidson, 2001-2002 John Townley, 2002-2003 Annette Gillis, 2003-2004 Doug Bird, 2004-2005 David Macaulay, 2005-2006
2225 Macleod Trail South, Calgary, Alberta T2G 5B6 403-233-8393 www.talismancentre.com