METIS NATION OF ALBERTA ASSOCIATION FORT MCMURRAY LOCAL COUNCIL 1935 Financial Statements Year Ended March 31, 2015

METIS NATION OF ALBERTA ASSOCIATION FORT MCMURRAY LOCAL COUNCIL 1935

Index to Financial Statements Year Ended March 31, 2015

Page INDEPENDENT AUDITORS' REPORT

1 - 2

FINANCIAL STATEMENTS

Statement of Financial Position

3

Statement of Operations

4

Statement of Changes in Net Assets

5

Statement of Cash Flows

6

Notes to Financial Statements

7 - 11

Collins Barrow Edmonton LLP 2380 Commerce Place 10155 102 Street N.W. Edmonton, Alberta T5J 4G8 Canada T. 780.428.1522 F. 780.425.8189 www.collinsbarrow.com

(continues)

This office is independently owned and operated by Collins Barrow Edmonton LLP The Collins Barrow trademarks are used under License. 1

INDEPENDENT AUDITORS' REPORT

To the Members of Metis Nation of Alberta Association Fort McMurray Local Council 1935

We have audited the accompanying financial statements of Metis Nation of Alberta Association Fort McMurray Local Council 1935, which comprise the statement of financial position as at March 31, 2015 and the statements of operations, changes in net assets and cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with Canadian Accounting Standards for Not-for-Profit Organizations, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditors' Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Independent Auditors' Report to the Members of Metis Nation of Alberta Association Fort McMurray Local Council 1935 (continued)

2

Opinion In our opinion, the financial statements present fairly, in all material respects, the financial position of Metis Nation of Alberta Association Fort McMurray Local Council 1935 as at March 31, 2015 and the results of its operations and its cash flows for the year then ended in accordance with Canadian Accounting Standards for Not-for-Profit Organizations.

Other Matter

The financial statements for the prior year were audited by another firm of chartered accountants who expressed a modified opinion dated June 10, 2014, which was modified for the completeness of revenue from fundraising and donations. The financial statements for the year ended December 31, 2013 were compiled on a Notice to Reader basis by another firm of chartered accountants and were unaudited.

Edmonton, Alberta June 24, 2015 Chartered Accountants

METIS NATION OF ALBERTA ASSOCIATION FORT MCMURRAY LOCAL COUNCIL 1935

See notes to financial statements

3

Statement of Financial Position March 31, 2015

2015 2014 2013 (unaudited)

ASSETS CURRENT Cash and short-term investments (Note 3) $ 1,614,792 $ 1,637,967 $ 673,875 Accounts receivable 438,250 257,580 6,513 Prepaid expenses 1,000 1,000 1,000 Advance to related party (Note 4) 29,812 - -

2,083,854 1,896,547 681,388

RESTRICTED CASH (Note 5) 156,374 125,277 91,580

PROPERTY AND EQUIPMENT (Note 6) 182,881 45,300 45,470

LONG-TERM INVESTMENTS 3,450 3,450 3,450

$ 2,426,559 $ 2,070,574 $ 821,888

LIABILITIES AND NET ASSETS CURRENT Accounts payable and accrued liabilities (Note 7) $ 131,445 $ 51,161 $ 24,015 Deferred contributions (Note 8) 156,374 125,277 91,580

287,819 176,438 115,595

NET ASSETS Unrestricted 1,955,859 1,848,836 660,823 Invested in property and equipment 182,881 45,300 45,470

2,138,740 1,894,136 706,293

$ 2,426,559 $ 2,070,574 $ 821,888

APPROVED BY THE BOARD

_____________________________ Director

_____________________________ Director

METIS NATION OF ALBERTA ASSOCIATION FORT MCMURRAY LOCAL COUNCIL 1935

See notes to financial statements

4

Statement of Operations Year Ended March 31, 2015 2015 2014 2013 (unaudited)

REVENUES General operations $ 2,918,638 $ 2,909,325 $ 1,636,978 Casino 25,684 29,374 - In-kind donation 15,000 - - Interest 5,586 4,588 4,388

2,964,908 2,943,287 1,641,366

EXPENSES Cultural projects and events $ 1,560,378 $ 990,129 $ 351,826 Salaries and benefits 724,921 466,685 494,010 Bursaries 119,953 146,371 106,097 Goods and services tax (Note 9) 112,450 - - Professional fees 90,222 40,729 63,671 Honorarium 47,672 27,032 42,700 Building and occupancy costs 23,643 26,345 80,402 Amortization 22,367 12,952 8,935 Vehicle 6,588 17,665 15,095 Advertising and promotion 6,189 8,098 15,783 Conferences and meetings 5,190 5,825 2,695 Travel 534 5,849 2,664 Interest 197 1,534 1,115 Office - 2,644 13,085 Bad debts - 1,725 - Equipment rental - 1,861 5,129 Consulting and casual labour - - 700

2,720,304 1,755,444 1,203,907

REVENUES OVER EXPENSES $ 244,604 $ 1,187,843 $ 437,459

METIS NATION OF ALBERTA ASSOCIATION FORT MCMURRAY LOCAL COUNCIL 1935

See notes to financial statements

5

Statement of Changes in Net Assets Year Ended March 31, 2015

Unrestricted

Invested in Property and Equipment 2015 2014 2013

(unaudited)

NET ASSETS - BEGINNING OF YEAR $ 1,848,836 $ 45,300 $ 1,894,136 $ 706,293 $ 268,834

Revenues over (under)

expenses 266,971 (22,367) 244,604 1,187,843 437,459

Invested in property and

equipment (159,948) 159,948 - - -

NET ASSETS - END OF YEAR $ 1,955,859 $ 182,881 $ 2,138,740 $ 1,894,136 $ 706,293

METIS NATION OF ALBERTA ASSOCIATION FORT MCMURRAY LOCAL COUNCIL 1935

See notes to financial statements

6

Statement of Cash Flows Year Ended March 31, 2015 2015 2014 2013 (unaudited)

OPERATING ACTIVITIES Revenues over expenses $ 244,604 $ 1,187,843 $ 437,459 Items not affecting cash: Amortization 22,367 12,952 8,935 In-kind donation (15,000) - -

251,971 1,200,795 446,394

Changes in non-cash working capital: Accounts receivable (180,670) (251,067) 12,988 Prepaid expenses - - 314 Accounts payable and accrued liabilities 80,284 27,146 (2,359) Deferred contributions 31,097 33,697 (592,210)

(69,289) (190,224) (581,267)

182,682 1,010,571 (134,873)

INVESTING ACTIVITIES Restricted cash (increase) decrease (31,097) (33,697) 18,505 Purchase of property and equipment (144,948) (12,782) (32,428) Increase in long-term investments - - (2,500)

(176,045) (46,479) (16,423)

FINANCING ACTIVITY Advances to related party (29,812) - -

(29,812) - -

(DECREASE) INCREASE IN CASH AND SHORT-TERM INVESTMENTS (23,175) 964,092 (151,296)

Cash and short-term investments - beginning of year 1,637,967 673,875 825,171

CASH AND SHORT-TERM INVESTMENTS - END OF YEAR $ 1,614,792 $ 1,637,967 $ 673,875

METIS NATION OF ALBERTA ASSOCIATION FORT MCMURRAY LOCAL COUNCIL 1935 Notes to Financial Statements Year Ended March 31, 2015

(continues)

7

1. NATURE OF OPERATIONS

Metis Nation of Alberta Association Fort McMurray Local Council 1935 (the "Association") is a not-for-profit organization incorporated provincially under the Societies Act (Alberta). As a not-for-profit organization under the Income Tax Act (Canada), the Association is exempt from income taxes.

The Association's mandate is to pursue the advancement of the Mtis people of Fort McMurray and the Regional Municipality of Wood Buffalo.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a) Basis of Presentation

The financial statements were prepared in accordance with Canadian Accounting Standards for Not-for-Profit Organizations ("ASNPO").

(b) Cash and Short -Term Investments

Cash is defined as cash on hand and cash on deposit, net of cheques issued and outstanding at the reporting date. Short-term investments consists of a cashable guaranteed investment certificate with a maturity of less than 90 days.

(c) Property and Equipment

Property and equipment are stated at cost less accumulated amortization. Property and equipment are amortized over their estimated useful lives on a declining balance basis at the following rates:

Buildings 10% Furniture and fixtures 20% Motor vehicles 30% Equipment 30% Computer equipment 45 - 100% Computer software 100%

The Association regularly reviews its property and equipment to eliminate obsolete items. Government grants are treated as a reduction of property and equipment cost.

Property and equipment acquired during the year are not amortized until they are placed into use.

(d) Impairment of Long Lived Assets

The Association tests for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. Recoverability is assessed by comparing the carrying amount to the projected future net cash flows the long-lived assets are expected to generate through their direct use and eventual disposition. When a test for impairment indicates that the carrying amount of an asset is not recoverable, an impairment loss is recognized to the extent the carrying value exceeds its fair value.

METIS NATION OF ALBERTA ASSOCIATION FORT MCMURRAY LOCAL COUNCIL 1935 Notes to Financial Statements Year Ended March 31, 2015

8

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

(e) Long-Term Investments

Long-term investments are recorded at fair value and are comprised of art work.

(f) Revenue Recognition

Revenue derived from service contracts is initially recorded as deferred service revenue and is subsequently recognized as income on a straight-line basis over the term of the contracts. The Association follows the deferral method of accounting for contributions. Restricted contributions such as casino revenue are recognized as revenue in the year in which the related expenses are incurred. Unrestricted contributions such as donations and fees from fundraising events are recognized as revenue when received or receivable if the amount to be received can be reasonably estimated and collection is reasonably assured.

(g) Contributed Services

The work of the Association is dependent on volunteer services contributed by many members. The services are not normally purchased by the Association and because of the difficulty of determining their fair value, contributed services are not recognized in the financial statements.

(h) Use of Estimates

The preparation of financial statements in conformity with Canadian Accounting Standards for Not-for-Profit Organizations requires management to make estimates and assumptions that affect the reported amount of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. Significant estimates used in the preparation of the financial statements include the useful lives of property and equipment in order to calculate amortization, accrued liabilities and deferred contributions. Such estimates are periodically reviewed and any adjustments necessary are reported in earnings in the period in which they become known. Actual results could differ from these estimates.

(i) Financial Instruments

Measurement of Financial Instruments The Association initially measures its financial assets and financial liabilities at fair value. The Association subsequently measures its financial assets and financial liabilities at amortized cost. Financial assets measured at amortized cost include cash, accounts receivable, restricted cash and long-term investments. Financial liabilities measured at amortized cost include accounts payable and accrued liabilities. Impairment Financial assets measured at cost are tested for impairment when there are indicators of impairment. The amount of the write-down is recognized in operations. A previously recognized impairment loss may be reversed to the extent of the improvement, directly or by adjusting the allowance account, provided it is no greater than the amount that would have been reported at the date of the reversal had the impairment not been recognized previously. The amount of the reversal is recognized in operations.

METIS NATION OF ALBERTA ASSOCIATION FORT MCMURRAY LOCAL COUNCIL 1935 Notes to Financial Statements Year Ended March 31, 2015

9

3. CASH AND SHORT-TERM INVESTMENTS 2015 2014 2013

Cash $ 1,594,792 $ 1,061,699 $ 302,195 Short-term investments 20,000 576,268 371,680

$ 1,614,792 $ 1,637,967 $ 673,875

Short-term investments consists of a guaranteed investment certificate bearing interest at 0.65% per annum, maturing March 2016.

4. ADVANCES TO RELATED PARTY

The Association paid various expenses on behalf of Infinity Metis Corporation, a wholly own subsidiary of the Association. As at March 31, 2015, a receivable of $29,812 (2013 - $Nil; 2012 - $Nil) was due from Infinity Metis Corporation and is due on demand. The Association is expecting to receive payment within the next fiscal year.

All transactions with related parties have occurred in the normal course of business and are measured at the exchange amount, which is the amount of consideration established and agreed to by the related parties.

5. RESTRICTED CASH Restricted cash is comprised of $156,374 (2013 - $125,277; 2012 - $91,580) in proceeds from casinos, which can only be used in accordance with the licensing agreements of the Alberta Gaming & Liquor Commission.

6. PROPERTY AND EQUIPMENT 2015 2014 2013

Cost Accumulated Net book Net book Net book amortization value value value

Buildings $ 117,839 $ 9,387 $ 108,452 $ 12,931 $ 10,431 Furniture and fixtures 62,115 21,729 40,386 17,210 12,368 Motor vehicles 33,354 13,589 19,765 11,784 16,835 Equipment 15,000 2,250 12,750 - - Computer equipment 25,080 23,552 1,528 3,375 5,836 Computer software 1,544 1,544 - - -

$ 254,932 $ 72,051 $ 182,881 $ 45,300 $ 45,470

METIS NATION OF ALBERTA ASSOCIATION FORT MCMURRAY LOCAL COUNCIL 1935 Notes to Financial Statements Year Ended March 31, 2015

10

7. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

Included in accounts payable and accrued liabilities is the following government remittance payable: 2015 2014 2013

Source deductions $ 18,603 $ - $ - Goods and services tax - - 5,737

8. DEFERRED CONTRIBUTIONS

Deferred contributions represent amounts received for specific purposes which have not been expended at year-end.

Balance, beginning of

year Contributions

received Recognized as Revenue 2015 2014 2013

Casino $ 125,277 $ 56,781 $ (25,684) $ 156,374 $ 125,277 $ 91,580

9. GOODS AND SERVICES TAX

A Goods and Services Tax (GST) audit was conducted by the Canada Revenue Agency, resulting in the Association owing $67,858 in GST remittances. The Association paid the amount in full in January 2015 and closed their GST account. The GST expense consists of the remittances paid on the audit as well as accumulated GST paid on taxable supplies for all periods up to the cancellation date of the GST account.

METIS NATION OF ALBERTA ASSOCIATION FORT MCMURRAY LOCAL COUNCIL 1935 Notes to Financial Statements Year Ended March 31, 2015

11

10. FINANCIAL INSTRUMENTS

The Associations financial instruments consist of cash and short-term investments, accounts receivable, restricted cash, long-term investments and accounts payable and accrued liabilities. The Association is exposed to the following risks through its financial instruments:

Credit risk

Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. Accounts receivable are generally amounts due from sponsors. The Association does not believe it is subject to any significant credit risk.

Liquidity risk

Liquidity risk arises from the possibility that the Association might encounter difficulty in settling its debts or in meeting its obligations related to financial liabilities. It is the Association's opinion that there is no significant liquidity risk as of March 31, 2015.

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Association is exposed to interest rate risk arising on its interest bearing assets.

11. COMPARATIVE FIGURES

Some of the 2013 and 2014 comparative figures have been reclassified to conform to the current year's presentation.