Financial Statement Requirements

Organizations that apply for a grant will need to submit their most recent completed financial statements to be eligible for funding. If you have an accumulated surplus or deficit, you will need to submit additional documentation.

Review the steps and requirements below to ensure your organization submits the right financial information.

On this page

  1. Do you need to submit financial statements?
  2. Determine the type of statements you need
  3. Ensure your statements are complete
  4. Prepare your documents for accumulated surplus and deficit
  5. Summary of requirements

1. Do you need to submit financial statements?

All organizations, with the exception of Municipalities, First Nations, Métis, Inuit or other Indigenous communities, must submit their most recent completed financial statements which includes comparative information for the prior fiscal year. 

As a public funder, OTF ensures that grant recipients demonstrate a need for public funds and have sound financial health. The financial information submitted with your grant application will help OTF assess your financial situation. For more information, review the Financial Need and Health of Applicants Policy.

Organizations incorporated less than 2 years

  • If your organization has been operating for less than two years, you will need to submit at least one full fiscal year of financial statements from the date of incorporation or charitable registration. 
  • Organizations incorporated or registered for less than one year are not eligible for funding.

2. Determine the type of statements you need

In your grant application, you must upload your organization’s most recent completed financial statements and comparative information for the prior fiscal year.  

Additionally, your financial statements must be completed within 12 months of your most recent fiscal year-end.

Based on the gross annual revenue categories below, determine the type of financial statements your organization will need to submit with your application.
 

Gross annual revenue: $99,999 or less

Submit internally prepared financial statements that include, at a minimum:

  • Balance Sheet (Statement of Financial Position)
  • Revenues and Expenses (Statement of Operations)
  • Board approval. This can be demonstrated in one of the following ways: 
    • a signature and date by the Chair or Treasurer on the financial statements
    • a Board resolution within meeting minutes
    • a signed and dated letter from the Board
       

See examples of internally prepared statements

The statements should be prepared by staff, internal bookkeeper, board member, or an accountant. 
Gross annual revenue: Between $100,000 and $249,999

Submit externally prepared financial statements that include, at a minimum:

  • Notice to Reader or Compilation Engagement Report*
  • Balance Sheet (Statement of Financial Position)
  • Revenues and Expenses (Statement of Operations)

*If the fiscal year-end is before December 14, 2021, the financial statements need to include either a Notice to Reader or a Compilation Engagement Report.

*If the fiscal year-end is on or after December 14, 2021, the financial statements need to include a Compilation Engagement Report.
 

The statements must be prepared by an accounting firm that is registered with CPA Ontario.

To find or confirm a registered firm, visit the CPA Ontario Firm Directory.

Gross annual revenue: Between $250,000 and $499,999

Submit externally prepared financial statements that include, at a minimum:

  • Review Engagement Report
  • Notes to the financial statements
  • Balance Sheet (Statement of Financial Position)
  • Revenues and Expenses (Statement of Operations)

 

The statements must be prepared by a licensed public accountant who is external to your organization. To find a licensed public accountant in Ontario, visit CPA Ontario Public Accounting Licence Directory.

The licensed public accountant must be with a firm that is registered with CPA Ontario. To find or confirm a registered firm, visit CPA Ontario Firm Directory.

Gross annual revenue: $500,000 and above

Submit externally audited financial statements that include:

  • Auditor’s Report
  • Notes to the financial statements
  • Balance Sheet (Statement of Financial Position)
  • Revenues and Expenses (Statement of Operations)
  • Statement of Changes in Net Assets
  • Statement of Cash Flow

 

The statements must be prepared by a licensed public accountant who is external to your organization. To find a licensed public accountant in Ontario, visit CPA Ontario Public Accounting Licence Directory.

The licensed public accountant must be with a firm that is registered with CPA Ontario. To find or confirm a registered firm, visit CPA Ontario Firm Directory.

3. Ensure your statements are complete 

In addition to meeting the requirements in step 2, financial statements must be:

  • Signed and dated by the accountant or accounting firm, or approved by your Board, depending on your gross annual revenue. OTF does not accept draft statements.
  • Submitted on the accountant’s or accounting firm’s letterhead for all externally prepared statements.
  • Consolidated for organizations with branches, chapters, subsidiary companies, or any controlled entities. 

4. Prepare your documents for accumulated surplus and deficit

OTF will assess your organization’s financial health and need, which includes determining if you have an accumulated surplus or deficit.

If your organization has an accumulated surplus greater than 12 months or an accumulated deficit greater than 10%, you must upload additional documentation with your financial statements.

Does your organization have an accumulated surplus?
If your organization has access to unrestricted or internally restricted net assets worth more than 12 months of operating expenses, your organization may not demonstrate significant need for OTF funding.

You must upload a separate explanation with your financial statements that describes how the unrestricted net assets have been earmarked for an imminent project or purpose. You must clearly demonstrate why your current financial situation warrants a request for additional funds.

Does your organization have an accumulated deficit?
If your organization has an accumulated deficit greater than 10% of your annual operating expenses, you need to explain how you got the deficit and how you intend to reduce it. You must submit the following information with your financial statements:

  1. An explanation: A document that provides a clear picture of your deficit situation and a strategy to eliminate the deficit.
  2. A deficit reduction plan: The plan should have reasonable and achievable goals. It also needs to include monetary targets to reduce the accumulated deficit with anticipated timelines.
  3. Your current year’s operating budget: Your budget will help demonstrate a history of strong financial management and deficit management.


Try out OTF’s financial position calculator
Use the Financial Position Calculator to help you determine if you have an accumulated surplus or deficit. This is a self-serve tool that is meant to help you plan your financial documentation and is for your information purposes only. OTF will conduct its own assessment of your organization’s financial health. 

5. Summary of requirements

Before you submit your grant application, use the checklist below to ensure you have met all the requirements.

  1. Your financial statements must be completed within 12 months of your most recent fiscal year-end and includes comparative information for the prior fiscal year.
  2. You have the right type of statements based on your organization's gross annual revenue and they are complete. 
  3. You have an explanation for your accumulated surplus, if applicable.
  4. You have a deficit reduction plan, an explanation, and a current operating budget to explain how you intend to reduce your deficit, if applicable.

 

Get support

We are committed to supporting your organization throughout the application process. For support with your financial statement requirements, please contact our Support Centre or book a coaching call with a OTF Program Manager.