Financial Statement Requirements
In accordance with our Eligibility Policy and Financial Need and Health of Applicants Policy, as a minimum, organizations must be able to demonstrate that they provide services in Ontario, and show evidence of their ability to generate additional resources from the community and other sectors.
Therefore, to consider an organization as eligible, the Ontario Trillium Foundation (OTF) requires at least one fiscal year of financial statements from the date of incorporation or charitable registration.
All organizations, with the exception of First Nations, must submit their most recent completed financial statements, which must include comparative information for the prior fiscal year. Please ensure you are submitting the required financial statements based on your organization's financial year-end date and total revenues, as per the table below.
A complete set of financial statements includes:
- revenues and expenses
- a balance sheet
- accompanying notes
Based on the annual revenue for the most recent fiscal year, we require the following financial statements:
Type of financial statements
$99,999 or less
Internally prepared financial statements for the two most recent fiscal years. See examples.
Between $100,000 and $249,999
Financial Statements for the most recent fiscal year end, which must include comparative information for the prior fiscal year.
These statements must be prepared by a firm that is registered with CPA Ontario and need to include a Notice to Reader on the financial statements.
To find or confirm a registered firm, visit the CPA Ontario firm directory.
Between $250,000 and $499,999
Financial statements for the most recent fiscal year end, which must include comparative information for the prior fiscal year.
These statements must be prepared by a licensed public accountant external to your organization and need to include a Review Engagement Report on the financial statements and accompanying notes.
$500,000 and above
Audited financial statements for the most recent fiscal year end, which must include comparative information for the prior fiscal year.
These statements must be prepared by a licensed public accountant external to your organization and need to include an Auditor’s Report and accompanying notes.
To find a licensed public accountant in Ontario, access the Public Accountants Council for the Province of Ontario’s online public roll.
- Organizations must upload their most recent completed financial statements based on their fiscal year-end date and total revenues.
- Financial statements must be completed within 12 months of the organization’s most recent fiscal year-end.
- 2019 financial statements are required (including 2018 comparative details) if the fiscal year end date falls between April 1st and December 31st.
- 2020 financial statements are required (including 2019 comparative details) if the fiscal year end date falls between January 1st and March 31st.
- Additional information pertaining to a surplus or deficit will need to be uploaded along with the financial statements, if applicable. For more information about surplus or deficit, please see the section below.
- Organizations must have at least one year of financial history from their incorporation or charitable registration date based on their organization's fiscal year-end date.
- Organizations operating with less than one fiscal year (less than twelve months from the date of incorporation or charitable registration) of financial history reflected in their financial statements will not be eligible.
- Organizations less than two years old are required to provide a complete set of financial statements for at least one completed fiscal year.
- All reporting pages, Notice to Reader, Review Engagement Report and Auditor’s Report must be on the accountant’s or accounting firm’s letterhead, dated and signed by the accountant or accounting firm.
- Consolidated statements are required for organizations who have or belong to subsidiary companies.
- Audited statements are preferred for all revenue levels.
- Financial statements must be Board approved (draft statements are not accepted).
Assessing Surplus or Deficit
The financial health of all organizations is assessed as part of the grant application process. This is why we require a complete set of current financial statements.
Submitted financial statements will be assessed for a surplus or a deficit. This forms the initial basis of our assessment of your financial health and need. You can use the Financial Position Calculator to conduct a simple assessment of your organization’s financial health. However, OTF will conduct its own internal assessment as part of the application review process.
The following surplus or deficit documentation will be required for our review and consideration:
A) If your organization has access to net assets worth more than 12 months operating expenses, you must upload an explanation as a separate document along with your financial statements, explaining why you have a surplus.
You must demonstrate that unrestricted net assets have been earmarked for an imminent project or purpose; or where the circumstances can otherwise demonstrate significant financial need.
Please upload your explanation along with your financial statements in the Organization Information section of the grant application.
B) If your organization has an accumulated deficit greater than 10% of annual expenses, you must upload a deficit reduction plan, as a separate document along with your financial statements, explaining how you intend to reduce it.
The plan must include details such as monetary targets to reduce the accumulated deficit and must be reasonable and achievable – and give a clear picture of your deficit situation and a strategy to eliminate the deficit. You must also demonstrate a history of strong financial management and deficit management by providing your current operating budget.
Please upload your plan and current operating budget along with your financial statements in the Organization Information section of the grant application.