CommunityCares Foundation, is a recently established Canadian NFPO $($not for profit organization$)$ committed to advancing education for underserved children in remote areas. As the organization approaches its first year$-$end, the board of directors is confronting numerous obstacles while preparing financial statements in accordance with Canadian NFPO accounting standards.

CommunityCares Foundation was founded to bridge educational disparities in remote Canadian regions. The foundation's primary objective is to provide educational resources, mentorship, and financial aid to children lacking access to quality education. Being in its inaugural year, the organization heavily relies on donations from individuals, corporations, and government grants to sustain its programs.

CommunityCares Foundation's board of directors is grappling with the best way to report its financial information to users. In addition, there are various issues that require resolution in order to accurately reflect the organization's financial standing and operations in its year$-$end financial statements. The treasurer prepared a tentative Statement of financial Position for the year$-$end $($Exhibit $1),$ but they admit they have little knowledge of accounting. They would like to see what a proper financial statement would look like. The following are ten prominent challenges they faced this year:

$1.$ The foundation secured donation pledges totaling $$100,000$ from corporate sponsors. However, only $$60,000$ has been received as at year end.

$2.$ The foundation was granted and received funding of $$150,000$ from various government levels, each with unique conditions and disbursement schedules.

$3.$ Professionals provided in$-$kind services valued at $$20,000$ to the foundation.

$4.$ During the year, the provincial government donated a building that had a fair value of $$350,000$ to provide a space for the foundation$$s activities. The building had an expected useful life, at that time, of $20$ years. Unexpected repairs for this building cost $$15,000$ and were paid for at that time.

$5.$ CommunityCares Foundation organized fundraising events generating $$30,000$ in cash but incurred $$10,000$ in event$-$related expenses that were all paid in cash at the time.

$6.$ The foundation plans to distribute educational supplies and holds inventory purchased and paid for of $$5,000.$

$7.$ Board members incurred travel and accommodation costs for foundation activities, totaling $$8,000.$

$8.$ An investment in shares of a socially responsible company was received, with a fluctuating value. The investment$$s value shifted from $$10,000$ at the time of receipt to $$12,000$ at the end of the year.

$9.$ Tickets for a charity gala taking place next year were sold, yielding $$7,000.$

$10.$ The foundation hired staff, incurring $$25,000$ in salaries, $$3,000$ in vacation accruals, and $$2,000$ in health insurance expenses, which were all paid for during the year.

Required: Prepare a report to the Board of Directors of CommunityCares Foundation, providing them with the guidance they require.

Exhibit $1$

CommunityCares Foundation

Statement of Financial Position

As of November $30,2023$

Assets:

Cash: $$179,000$

Accounts Receivable: $$40,000$

Inventory of Supplies: $$5,000$

Investments $($Shares$)$: $$12,000$

Total Assets: $$236,000$

Liabilities:

Deferred Revenue: $$7,000$

Total Liabilities: $$7,000$

Net Assets:

Unrestricted Net Assets: $$229,000$

Total Net Assets: $$229,000$

Total Liabilities and Net Assets: $$236,000$