Financial Statements
Independent Auditor ' s Report
To the Members of Manitoba Recreational Trails Association Inc . Qualified Opinion
We have audited the accompanying consolidated financial statements of Manitoba Recreational Trails Association Inc ., ( the " Association ") which comprise the consolidated statement of financial position as at December 31 , 2020 , and the consolidated statements of changes in net assets , operations and cash flows for the year then ended , and a summary of significant accounting policies and other explanatory information .
In our opinion , except for the possible effects of the matter described in the Basis for Qualified Opinion section of our report , the accompanying financial statements present fairly , in all material respects , the financial position of the Association as at December 31 , 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 .
Basis for Qualified Opinion
In common with many not-for-profit organizations , the Association derives revenue from donations and other fundraising activities , the completeness of which is not susceptible to satisfactory audit verification . Accordingly , verification of these revenues was limited to the amounts recorded in the records of the Association . Therefore , we were not able to determine whether any adjustments might be necessary to fundraising revenue , excess ( deficiency ) of revenues over expenses , and cash flows from operations for the years ended December 31 , 2019 and 2020 , current assets as at December 31 , 2019 and 2020 , and net assets as at January 1 and December 31 for both the 2019 and 2020 years . Our audit opinion on the consolidated financial statements for the year ended December 31 , 2019 was modified accordingly because of the possible effects of this limitation in scope .
We conducted our audit in accordance with Canadian generally accepted auditing standards . Our responsibilities under those standards are further described in the Auditor ’ s Responsibilities for the Audit of the Financial Statements section of our report . We are independent of the Association in accordance with the ethical requirements that are relevant to our audit of the financial statements in Canada , and we have fulfilled our other ethical responsibilities in accordance with these requirements . We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified audit opinion .
Responsibilities of Management and Those Charged with Governance for the Financial Statements
Management is responsible for the preparation and fair presentation of these consolidated 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 .
In preparing the consolidated financial statements , management is responsible for assessing the Association ’ s ability to continue as a going concern , disclosing , as applicable , matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Association or to cease operations , or has no realistic alternative but to do so .
Those charged with governance are responsible for overseeing the Association ’ s financial reporting process .
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Annual Report-2020 Year in Review 22