On March 11, 2020, the World Health Organization declared the Novel Coronavirus (COVID-19) outbreak a pandemic. This has resulted in governments worldwide, including the Canadian and Alberta governments, enacting emergency measures to combat the spread of the virus. These measures, which include the implementation of travel bans, self-imposed quarantine periods, closures of non-essential businesses, and physical distancing, have caused material disruption to businesses in Calgary, resulting in an economic slowdown. The ultimate duration and magnitude of COVID-19 on the economy and the specific financial effect on LUTW’s operations, including overall financial performance, is not known at this time.
LUTW has taken steps to safeguard the health and safety of its staff and volunteers by closing its head office in Calgary and scaling back operations in Peru. In addition, LUTW is participating in federal assistance programs so that it can remain financially viable during these times of great uncertainty. LUTW continues to closely monitor the situation and manage the impacts on partnerships with post-secondary institutions, the scope and timing of projects in Peru, revenue generation, and fundraising activities. At this time these factors present uncertainty over future cash flows, may cause significant changes to the assets or liabilities and may have a significant impact on future operations. LUTW expects that COVID-19 will have an impact on the contributions it will receive. An estimate of the financial effect is not practicable at this time.