On paper it’s a loss, but in reality it was not a bad year for the Moose Jaw Exhibition Company (MJEC) as their 2022 audited financial statement was released at the annual AGM.
In their audited 2022 financial statement, the Moose Jaw Exhibition Company Limited showed a paper loss of $43,031 on revenues of $1,226,663 and expenditures of $1,269,694.
The 2022 expenditures included amortization of $337,494.
Once the amortization was removed, the actual net profit for the MJEC was $294,463 in 2022.
Amortization is a standard accounting practice used to reflect the depreciation of a corporation’s capital goods for tax purposes.
As a non-profit, the Exhibition does not pay corporate income tax.
Equipment, which is amortized to a zero dollar value, may need replacement some day but at the same time still have many years of safe use until replacement becomes necessary.
In the 2021 audited financial statements, the Exhibition Company had a profit of $275,584 but that was due one-time cash inflows of $83,977 for COVID - 19 subsidies, $179,250 in land sales revenues and $75,000 in a reimbursement from the City following discussions over a defective water meter.
“We are pleased how it turned out coming out of COVID,” George Fowler general manager of the Moose Jaw Exhibition Company said.
Fowler said there were challenges in the year such as people hesitant to put on and attend shows due to fears of more COVID restrictions as well as high fuel prices hitting attendance at horse shows.
“It’s OK but it could have been worse,” he said.
Fowler pointed to the Board’s stewardship approach of being careful with funds but also repairing things when needed before more expensive problems develop as key to the Exhibition’s financial success.
“We look for the lowest cost but at the same time best solutions,” he said pointing out the Exhibition does not fix things on the cheap but in a sustainable longer term manner.
