2011/2012 ANNUAL REPORT - MaRS Discovery District

FINANCIALS
MaRS Discovery District
MaRS Discovery District is a registered charity, incorporated on August 27, 2001 under the laws of Canada. The organization’s financial and real
estate assets are dedicated to supporting our charitable mission of improving outcomes from Canada’s science, technology and social innovations.
Our operations consist of three primary streams of activity: real estate operations, core programs and partner programs.
In 2011, MaRS Discovery District changed its fiscal year end from December 31 to March 31. Financial results for the reporting period ended
March 31, 2011 span 15 months; for the fiscal year end of March 31, 2012, results span 12 months.
Summarized Statement of Operations (in millions of dollars)
12 months ended
March 31, 2012
15 months ended
March 31, 2011
MaRS real estate operations include tenant rental revenues
from the MaRS Centre property and from event
venue rental of the MaRS Collaboration Centre. The net
surplus earned from these operations provides MaRS
with the flexibility to support the core programs of
MaRS as described below and to build the foundation
for future growth.
In the prior fiscal year 2011, one-time deferred revenue of
$3.3 million relating to the lease of land for the Phase 2
development was recognized in revenue.
Real estate operations
Rental revenue
Capital grant revenue
Deferred revenue
Real estate operations revenue
Property operating expense
Interest expense
Amortization expense
Real estate operations expense
Net surplus, real estate operations
$12.9
$2.7
-
$15.6
$8.4
$1.0
$4.5
$13.9
$1.7
$16.0
$3.4
$3.3
$22.7
$11.2
$1.3
$5.7
$18.2
$4.5
MaRS’ core programs include business advisory services,
education, market intelligence for startup companies,
and innovation and entrepreneurship ecosystem outreach.
Core programs are supported through a combination
of net contributions from its real estate operations,
government grants and donations. MaRS has multi-year
funding agreements with the Province of Ontario for core
operating grants and restricted grants for the Business
Acceleration Program, Social Innovation Generation,
Regional Innovation Centre and other special projects.
Donations and sponsorship funding totalling $4.2 million
was received by MaRS and, due to accounting treatment,
is reflected in several lines through these statements.
Expenses consist largely of employee and contractor
costs. The figures above do not include internal rents
relating to space used by MaRS for its core programs,
amounting to $1.7 million.
In 2012, core operating grant revenue of $10 million was
received for two funding-years, 2011 and 2012. The core
program surplus in 2012 and the deficit in 2011 reflect the
timing difference of receipt of the operating grant funding.
Core programs
Operating grant revenue
Restricted program grant revenue
Donations, sponsorships and other
revenue
Core programs revenue
Employee and contractor expense
Program expense
General and administrative expense
Information technology expense
Core programs expense
Net surplus (deficit), core programs
$10.0
$6.6
$0.6
$17.2
$9.4
$1.8
$1.4
$0.9
$13.5
$3.7
$3.1
$8.7
$0.9
$12.7
$9.9
$3.9
$1.3
$0.7
$15.8
($3.1)
MaRS administers multi-year grant programs on behalf
of the provincial and federal governments by providing
flow-through funding to funding recipients, including the
Premier’s Summit Awards and Business Acceleration Program
payments to Ontario Regional Innovation Centres.
Partner programs
Partner program revenue
Partner program grants expense
Net partner programs
$11.2
$11.2
-
$8.8
$8.8
-
In 2012 total revenues exceeded total expenses by
$5.4 million. Our net surplus will be invested to support
our mission-driven programs as well as to serve as a
reserve for the Phase 2 development.
Total revenues
Total expenses
Excess of revenues over expenses
$44.0
$38.6
$5.4
$44.2
$42.8
$1.4
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