July 27, 2010 

British Columbia Society of Respiratory Therapists 

PO Box 4760 Stn Terminal 
Vancouver, BC V6B 4A4 

Attention: Mr. Scott Vigliotti, Treasurer 

Dear Mr. Vigliotti: 

Comments on March 31, 2010 Financial Statements 

B.M. 
Galloway 
* 
E.A. 
Botteselle 
* 
You have asked us to comment on the accuracy of the above noted financial statements. Our 

B.R. 
Blamey 
* 
comments will be limited to significant amounts, and are intended to provide comfort to the 

D.P. 
Van 
Gruen 
* 
R.E. 
Biedka 
Board of Directors and should not be considered to constitute an audit. 
S. 
Muller 
S. 
Nisbet 
Balance Sheet 

* 
Professional 
Corporation 
Cash at the Royal Bank -$42,071.39 

The balance amount corresponds with the March 31, 2010 balance shown on the statement for 
account number 05600 100-052-0. No cheques written or deposits made prior to April 1, 2010 
cleared the account between then and May 31, 2010 so the balance per the books may be 
considered accurate. 

Short-term investments – GIC -$180,038.59 

Total Guaranteed Investment Certificates on deposit at the Royal Bank as of March 31, 2010 per 
the investment confirmations and summary that you provided were $180,753.06. Interest on 
various investment certificates, amounting to $648.49 does not appear to have been recorded 
when the investments matured and were reinvested during the year. An additional $65.98 
discrepancy was not investigated but can reasonably be assumed to be unrecorded interest from 
a prior period. The following table summarizes entries required to record interest: 

Number Date 
Reinvested 
balance 
Previous 
balance Interest 
0005 Sept 8, 2009 46,584.23 46,347.81 236.42 
0006 Sept 8, 2009 23,292.12 23,173.91 118.21 
0012 Jul 29, 2009 40,293.86 40,000.00 293.86 
Balance Apr 1, 2009 65.98 

Maple 
Place 
Professional 
Centre 


300-2000 
West 
12th 
Avenue 


Vancouver, 
BC 
V6J 
2G2 


Tel: 
604-736-6581 


Fax: 
604-736-0152 


support@porterhetu.com 
www.porterhetu.com 


Net Assets -$222,025.98 

Net assets as presented are comprised of unrestricted net assets (including current surplus of 
$14,810.01) totaling $120,100.88 and net assets internally restricted for the College Start-up 
Fund of $101,925.10. We will not comment on the split since the Society is not subject to 
external restrictions governing the use of the funds and can transfer amounts between funds as it 
sees fit (typically by resolution of the board of directors). Total net assets correspond to total 
assets less an insignificant ($84.00) accounts payable balance. 

Equity in capital assets previously reported was removed from the books retroactively. This 
account was previously used to track the net book value of computer equipment purchased by 
the Society. As all or most of the assets are no longer in use, and computers are typically 
regularly replaced, we agree this was an appropriate change. 

…/2 


BC Society of Respiratory Therapists -2-July 27, 2010 

Canadian accounting standards do not require small not for profit organizations such as yours to capitalize 
equipment so the change is also justified under this criteria. 

Income Statement – Net Income $14,810.01 

When amounts on a balance sheet are verified, the net income shown on an income statement can 
generally be considered accurate. In reviewing allocations to individual income statement accounts we 
did not examine source documents such as member rosters or expense receipts but rather considered the 
reasonableness of such allocations based on transaction descriptions and the comparison of account totals 
to prior year amounts. Subject to the comments in the next paragraph, these procedures indicate that 
amounts allocated to individual income statement accounts are reasonable in the circumstances. 

We suggest that all efforts be made to make transaction descriptions as informational as possible – ie: so a 
reader of the general ledger understands why the transaction has been posted to a certain account. In 
some instances income statement transaction descriptions were not entered: only a reference was 
provided. (eg: see account 5640 – Visa Sep 05-Oct02). Other descriptions were often generic (eg: an 
individual’s name). Such lack of detail makes it difficult to judge whether the expense classification is 
appropriate to the nature of the transaction. Additional useful information would include the name of 
entities for which purchases by individuals are reimbursed, vendor names from visa statements, 
references to member fee records, and other such pertinent details. 

Conclusion 

Overall, subject to the minor adjustments required to update GIC balances, the books of account appear to 
be accurate and can be relied upon by the Society’s management. 

Thank you for asking us to assist with this matter. An invoice for our services is enclosed. We appreciate 
your business and hope our services have been helpful to you. 

Yours truly, 


David 
P. 
Van 
Gruen, 
CGA 


dvangruen@porterhetu.com 

DVG/ch 
Encls. 

P:\S\Socire\Csp\Comments on 3-31-10 financials.doc