Financial Statement Requirements

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 a grant application will help OTF assess the financial situation of the applicant. For more information, review the Financial Need and Health of Applicants Policy.

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?

OTF requires financial statements covering your organization's most recent fiscal year and comparative information for the prior fiscal year. 

• At the time of application submission, if statements for your most recent fiscal year are not yet available, and if less than 5 months has passed since the end of your most recent fiscal year, then the previous fiscal year’s financial statements will be accepted.  
• At the time of application submission, if more than 5 months has passed since your most recent fiscal year, you need to submit financial statements for that most recent fiscal year. (statements for the previous fiscal year will not meet requirements other than to be considered as comparative information). 

All organizations, except for Municipalities and First Nations, must submit financial statements with their application and need to meet financial statement requirements to be eligible for funding.

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

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

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
The Financial Position Calculator can 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. OTF requires financial statements for your organization's 2 recent fiscal years. This includes the most recent fiscal year and 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.