2022 Annual Report From The Treasurer
Fellow Members,
The Year 2022 has been rather eventful in the internet services sector, including but not limited to many independent service providers struggling due to economic and regulatory factors — the acquisition of many independent service providers followed. As a not-for-profit, NCF cannot be acquired, but we still face the same challenging business environment. That said, we’re pleased with the CRTC’s recent commitment to resolving the issues that have negatively impacted NCF and competition within the Canadian internet service industry more generally.
For the year ended 31st 2022, National Capital FreeNet had a deficit of $6801 which can be largely described as insignificant especially considering its expense profile.
The deficit is due in part because of previous issues reporting Accounts Receivable that meant we did not write off any bad debt in 2021. As such, we wrote off bad debt for 2021 and 2022 in the 2022 fiscal year. The Accounts Receivable reporting issue has now been resolved, and the Board is committing to reviewing and writing off bad debt on a quarterly basis moving forward.
The deficit also related to a decline in revenue by 7% as well as an increase in operating overheads such as salaries and benefits which increased by 1.4%, and office expenses 76% amongst others.
A further review of the 2022 financial statements reveals a net operating cash from operating activities of $80,318, net operating cash from investing activities was -$102,150 due largely to acquisition of a term deposit of $112,520. There was no net cash flow from financing activities.
Net assets declined to $402,882 in 2022 representing a decrease of 2% compared to 2021. Currently, 97% of the net assets are attributable to unrestricted funds and 3% represent investment in capital assets.
NCF has a cash balance of $408,758, a healthy reserve for a not-for-profit, and can meet triple the amount of its current obligations (accounts payables and accrued liabilities).
The Board is pleased that despite the challenging operating environment, NCF received an unqualified opinion in the 2022 audit which is attributable to the dedication and devotion of the Management team led by Shelley Robinson. The Board will continue to work with the Management Team to strengthen controls, ensuring best practices.
As Treasurer, I would like to recognize the devotion and commitment of the staff and volunteers for their time and effort in not only improving the fortunes of NCF, but in bringing safe and affordable internet services to the National Capital Region.
Over the last 30 years, the significant and noticeable contributions of our various stakeholders, especially NCF’s members, have made NCF a going concern that can remain so for a long time to come.
Best Regards,
Emmanuel Adenlolu MBA,ACA