financial statement 2015
DESCRIPTION
Sipekne'katik Financial Statement 2015TRANSCRIPT
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KATIK
CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 2015
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SIPEKNEKATIK
CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 2015
Paoe
Managements Responsibility for Financial Reporting
Financial Statements
Consolidated Statement of Financial Position
Consolidated Statement of Change in Net Debt 2Consolidated Statement of Operations 3Consolidated Statement of Cash Flows 4Notes to Consolidated Financial Statements 5 19
Consolidated Schedules of Operations by ProgramConsolidated Summary Schedule of Operations by Program 20Social Development Schedule #1 21Band Administration
- Schedule #2 22Education
- Schedule #3 23Capital and Housing
- Schedule #4 24Operating and Maintenance
- Schedule #5 25Economic Development - Schedule #6 26Community Health
- Schedule #7 27Employment Training
- Schedule #8 28Gaming
- Schedule #9 29Tobacco Store
- Schedule #10 30Fisheries
- Schedule #11 31Housing Projects
- Schedule #12 32Gas Bar - Schedule #13 33
Supplementary Schedules
Annual surplus net of capital related revenues and amortization 34
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S IPEKNEKATIK
CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 2015
CONSOLIDATED Schedules of Operations by Program (continued)Segment disclosure
- current year 35Segment disclosure
- prior year 36Schedule of AAXDC Block and Set funding 37Schedule of Government transfers 38Externally restricted surplus
- education continuity schedule 39Review engagement report 40Salaries, honoraria and travel paid to Chief and Council 41Salaries and travel - Senior Management 42
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SIPEKNEKATIK
MANAGEMENTS RESPONSIBILITY FOR FINANCIAL REPORTING
MARCH 31, 2015
The accompanying consolidated financial statements of Sipeknekatik are the responsibility of Chief andCouncil. The consolidated financial statements have been prepared by management in accordance withCanadian public sector accounting standards and necessarily include estimates which are based onmanagements best judgments.Financial statements are not precise since they include certain amounts based on estimates and judgments.When alternative accounting methods exist, management has chosen those it deems most appropriate in thecircumstances, in order to ensure that the financial statements are presented fairly, in all material respects.
Management is also responsible for implementing and maintaining a system of internal controls designed togive reasonable assurance that transactions are appropriately authorized, assets are safeguarded from loss andlinancial records are properly maintained to provide reliable information for the preparation of consolidatedfinancial statements.
Council is responsible for ensuring that management fulfills its responsibilities for financial reporting andinternal control. The consolidated financial statements have been reviewed and approved by Chief andCouncil.
Andrew D. Lenehan, an independent firm of accountants, has been engaged to examine the consolidatedfinancial statements in accordance with Canadian generally accepted auditing standards. Their report statingthe eope of their examination and opinion on the consolidated financial statements, follows.
Chief Date
Executive FinancIal Officer Date
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ANDREW D. LENEHAN, CA.389 Connell Street, Suite 200 Telephone (506) 325-2101\Voodstock, New Brunswick Fax (506) 325-9675E7M 5G5
Independent Auditors Report
To the Chief, Council and Members ofSipekriekatik
We have audited the accompanying consolidated financial statements of Sipeknekatik, which comprise theconsolidated statement of financial position as at March 31, 2015, and the consolidated statements ofoperations, change in net debt and cash flows for the year then ended, and a summary of significantaccounting policies and other explanatory information.
Mona enwnts Responsibility/hr the consolidated Financial StatementsManagement is responsible for the preparation and fair presentation of these consolidated financial statementsin accordance with Canadian public sector accounting standards, and for such internal control as managementdetermines is necessary to enable the preparation of consolidated financial statements that are free frommaterial misstatement, whether due to fraud or error.
/udnor I?csponsibilityOur responsibility is to express an opinion on these consolidated financial statements based on our audit, Weconducted our audit in accordance with Canadian generally accepted auditing standards. Those standardsrequire that we comply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether the consolidated financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in theconsolidated financial statements. The procedures selected depend on the auditors judgment, including theassessment of the risks of material misstatement of the consolidated financial statements, whether due to fraudor error. In making those risk assessments, the auditor considers internal control relevant to the First Nationspreparation and fair presentation of the consolidated financial statements in order to design audit proceduresthat are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectivenessof the First Nations internal control. An audit also includes evaluating the appropriateness of accountingpolicies used and the reasonableness of accounting estimates made by management. as well as evaluating theoverall presentation of the consolidated financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis (or ouraudit opinion.
OpinionIn our opinion, these consolidated financial statements present fairly, in all material respects, the financialposition of the First Nation as at March 31. 2015 and the results of its operations. changes in net debt, and itscash flows for the year then ended in accordance with Canadian public sector accounting standards.
Andrew D. LenelianChartered AccountantWoodstock, New Brunswick
July 28, 2015
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S IPEKNE*KATIK
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
MARCH 31. 2015
2015 2014
Financial Assets
Accounts receivable (Note 8) $ 989,735 $ 1,281,766Funds on deposit with AANDC (Note 6) 79,239 76,248Investments (Note 3)
- 3Inventory Note 4) 123,077 70.7 19
1,192,051 1,428,736
Liabilities
Cheques written in excess of deposits (Note 9) 347,449 523,550Accounts payable (Note 10) 5,693,117 6.635,807Deferred revenue (Note 1 1) 318,546 59,567Due to minor hand members (Note 16) 822,758 883.258Investments (Note 3) 41,549
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Long-term debt (Note 12) 3,220,888 3.460,214
10,444,307 11.563.396
Net debt (9,252,256) (10,134,660)
Non-financial Assets
Tangihle capital assets (Note 13) 18,433,616 19,580.078Prepaid expenses (Note 5)
- 150,101
18,433,616 19,730,179
Accumulated Surplus (Note 14) $ 9,181,360 $ 9,595,519
___________
Chief
___________
Executive Financial Officer
The accompanying notes are an integral part of the financial statements
Approved on behalf of the Sipeknekatik
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SIPEKNEKATIK
CONSOLIDATED STATEMENT OF CHANGE IN NET DEBT
FOR THE YEAR ENDED MARCH 31, 2015
243,033
(10,134,660)
$ (9,891,627)
2015 Actual
(414,159)
(270,831)1,417,293
1,146,462
150,104
882,407
(10,134,660)
$ (9,252,253)
2014 Actual
844.543
(1,415,440)1,335,689
(79,751)
(67,746)
697,047
(10.757,489)
(74,218)
S (10A34,660.
2015 Budget
Surplus (deficit) 243,033
Acquisition of tangible capital assets
Amortization of tangible capital assets-
tjncrease) decrease of prepaid expenses
(Decrease) increase in net financial assets
\et debt at beginning of year
Transfer of investment to tangible capital assets
Net debt at end of year
The accompanying notes are an integral part of the financial statements
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S1PEKNEKATIK
CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE YEAR ENDED MARCH 31, 2015
5,289,0261,856,3596,843,877
752,5401,969,532
286,0861,222,602
927,5141,586,896
947,170254,131190,000231,240
22.356.973
2015Actual
5,400,8572,464,4837,315,671
833,0132,065,874
320,4871,335,1291,319,6691,600,036
819,1861,736,127
218,692189,098
25.728.322
2014Actual
5,254,9() I2,370,2556,01 3A)68
507.5431,958,477
291,2411.481.055
933.9761,220,003
767,454902,989392,377246,925
22.340.264
2015Budget
Unaudited
RevenuesAboriginal Affairs and Northern Development Canada $ 7,456,519 $ 7,923,629 $ 8.635,013Tobacco store 6,720,000 6,686,075 6,646,5 15Mikrnaw Kinamatneway 6,343,877 6,445,216 6,453,600Gaming 2,355,500 3,446,303 2,129,353Fisheries 1,095,250 2,586,065 1.965,92 IOther 1,031,734 2,120,988 1.519,461Gas bar 1,644,000 1,299,330 1,428,628Health Canada 1,222,602 1,222,602 1.069.720METS 891,514 747,579 794.380
28,761,006 32,477,787 30,642,591
Cost of goo(IS sold 6,101,000 5,612,738 5.702,1 23Gross profit 22,660,006 26,865,049 24,940,468Expenditures
Social DevelopmentBand AdministrationEducationCapital and I-lousingOperating and MaintenanceEconomic DevelopmentCommunity HealthEmplo ment TrainingGamingTobacco StoreFisheriesHousing ProjectsGas Bar
Surplus deficit) before other items 303,033 1,136,727 2,600,204Other items
Amortization- (1,417,293) (1.335.689)
Forensic audit (60,000) ( 133592) (419.70)(60,000) (1,550,885) (1,755,659)
Surplus (deficit) 243,033 (414,159) 844.544Accumulated surplus at beginning of year 9,595,519 9,595,519 8,750,975Accumulated surplus at end of year $ 9,838,552 $ 9,181,360 $ 9,595,5 19
The accompanying notes are an integral part of the financial statements
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SIPEKNEKATIK
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED MARCH 31, 2015
2015 2014
Cash flows fromOperating activities
Surplus (deficit) $ (414,159) S 834.544Items not affecting cash
Amortization expense 1,417,293 1.335,689Investment in Wallace Hill 31,551
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1,044,685 2,180,233
Change in non-cash operating working capitalAccounts receivable 292,031 (96,908)Inventory (52,358) 9,390Prepaid expenses 150,101 (67.743)Funds on deposit with AANDC (Note 6) (2,991) (1.883)Accounts payable (942,686) ( 140.655)Deferred revenue 258,979 (170,433)Due to minor band members (61,500) (54.000)
686,261 1 ,658.001
Capital activitiesAcquisition of tangible capital assets (270,831) ( 1.315.440)
Financing activitiesRe payment of long-term debt (239,329) (203.947)
Increase in cash and cash equivalents 176,101 38,614
Cash, beginning of year (523,550) (562.164)Cash, end of year $ (347,449) $ (523,550)
The accompanvin notes are an intera1 part of the financial statements
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SIPEKNEKATIK
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 2015
Reporting Entity
The consolidated financial statements of Sipeknekatik reflect the assets, liabilities, revenues.expenditures, changes in net debt and accumulated surplus of the reporting entity. The reporting entity iscomprised of the organizations accountable for the administration of their affairs and resources to theChief and Council or controlled by the First Nation. Inter-fund and inter-corporate balances andtransact ions have been eliminated.
Sipeknekatik provides services to its community members for various programs detailed in Schedules Ito 13.
2. Basis of Presentation and Significant Accounting Policies
These financial statements are prepared in accordance with Canadian public sector accounting standardsfor governments as recommended by the Public Sector Accounting Board of the Chartered ProfessionalAccountants of Canada.
(a) Cash and cash equivalents
Cash and cash equivalents include cash on hand, balances with banks net of bank overdrafts and termdeposits having a maturity of one year or less at acquisition which are held for the purpose ofmeeting short-term cash commitments.
(b) Principles of Consolidation
The consolidated financial statements include the accounts of all funds and operatiuns in whichSipeknekatik has a controlling interest. All interfund balances have been eliminated on consolidationhut in order to present the results of operations for each specific fund, transactions between fundshave not been eliminated on the individual schedules.
tJnder the modified equity method of accounting, only Sipeknekatiks investment in the governmentbusiness enterprise and the enterprises net income and other changes in equity are recorded. Noadjustment is made for accounting policies of the enterprise that are different from those ofSipeknekatik.
Organizations accounted for on a modified equity basis include Wallace Hill Development Inc.
(c) Inventory
Inventory is valued at the lower of cost, determined on the first in first out basis, and net realizablevalue. Net realizable value is the estimated selling price in the ordinary course of business, less anyapplicable variable selling costs.
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S IPEKNEKATIK
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 2015
2, Basis of Presentation and Significant Accounting Policies (continued)(d) Tangible Capital Assets
Tangible capital assets (TCAs) are items that can be physically touched, are used to provide FirstNation services, are used for First Nation administration purposes or are used for the constructionand/or maintenance of other TCAs owned by the First Nation, will be useful for a period greater thanone year and will be used by the First Nation on a regular basis.
Certain tangible capital assets, including but not limited to roads and infrastructure, have beenrecorded at a nominal amount of $1 as specific historical data was not available, Whereas all suchassets are amortized over a period not longer than twenty five years. it is managements opinion thatall assets acquired prior to 1987 would now be fully amortized.
Tangible capital assets are recorded at cost, which includes all amounts directly attributable toacquisition. construction, development or betterment of the asset, and are amortized on the decliningbalance method over their estimated useful lives. Amortization begins in the year acquired. Currentdescriptions and useful lives are as follows
Buildings 5 %Declining balanceVehicles 30 %Declining balanceFurniture and fixtures 20 % Declining balanceEquipment 20 Declining balancePaving 5 % Declining balanceRecreational facilities 10 % Declining balancePump/gaming renovations 20 %Declining balanceRink 10 9 Declining balance
(e) Net I)ebt
The First Nations financial statements are presented so as to highlight net debt as the measurementof financial position. The net debt of the First Nation is determined by its liabilities less its financialassets. Net debt is comprised of two components, non-financial assets, and accumulated surplus.
(0 Deferred RevenueGovernment funding and other revenue not fully expended at year end has been treated as deferredrevenue by the First Nation and will he recorded in revenue in the fiscal year when the relatedexpenditures are incurred.
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S IPEKNE*KATIK
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 2015
2. Basis of Presentation and Significant Accounting Policies (continued)(g) Revenue Recognition
Revenues are recognized in the period in which the transactions or events occurred that gave rise tothe revenues, All revenues are recorded on an accrual basis, except when the accruals cannot hedetermined with a reasonable degree of certainty or when their estimation is impracticable.
Government transfers are recognized as revenues when the transfer is authorized and any eligibilitycriteria are met. except to the extent that transfer stipulations give rise to an obligation that meets thedefinition of a liability. Transfers are recognized as deferred revenue when transfer stipulations giverise to a liability. Transfer revenue is recognized in the statement of operations as the stipulationliabilities are settled.
Contributions from other sources are deferred when restrictions are placed on their use by thecontributor, and are recognized as revenue when used for the specific purpose.
Revenue related to fees or services received in advance of the fee being earned or the service ispertormed is deferred and recognized when the fee is earned or service performed.
Tobacco store and gas bar revenues are recorded at the point of sale.
(h Expense Recognition
Expenses are recorded on the accrual basis as they are incurred and measurable based on receipt ofgoods or services and obligation to pay.
(i Use of Estimates
The preparation of financial statements in conformity with Public Sector Accounting Standardsrequires management to make estimates and assumptions that affect the reported amounts of assetsand liabilities at the date of the financial statements and the reported amounts of revenue andexpenses during the reporting period. By their nature, these estimates are subject to measurementuncertainty. The effect of changes in such estimates on the financial statements in future periodscould he significant.
fj Asset Classification
Assets are classified as either financial or non-financial. Financial assets are assets that could he usedto discharge existing liabilities or finance future operations. Non-financial assets are acquired.constructed or developed assets that do not provide resources to discharge existing liabilities but areemployed to deliver government services, may be consumed in normal operations and are not for resale. Non-financial assets include tangible capital assets and prepaid expenses.
7
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S IPEKNEKAT1K
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 2015
2. Basis of Presentation and Significant Accounting Policies (continued)(k) Segment Disclosure
The financial statements of Sipeknekatik provide supporting schedules which are established byprogram based on government funding provided. The various programs have been amalgamated forthe purpose of presentation in the consolidated financial statements. Details of the operations of eachprogram are set out in the supplementary schedules for management information purposes.
l) Financial Instruments
All significant financial assets, financial liabilities and equity instruments of the First Nation areeither recognized or disclosed in the financial statements together with other information relevant formaking a reasonable assessment of future cash flows, interest rate risk and credit risk.
3. linestnients
2015 2()14Investment in Wallace Hill Development Inc. $Investment in Beauhassin Mikmaq Wind Mgmt Ltd. IInvestment in 3270886 Nova Scotia Limited IEquity (deficit) in Wallace Hill Development Inc. (41,552)
1 $
4
I
$ (41,549) $ 3
1 liventory
2015 2014
}:iieI for resale $ 10,613 $ 2,459Tobacco for resale 112,464 68.260
$ 123,077 $ 70,719
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SIPEKNEKATIK
5. Prepaid expenses
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 2015
2015 2014
InsuranceSocial assistanceForensic auditFunds in trust Swordfish
6. Funds on deposit with AANDC
$ 61,04023,58125.00020.00()20,480
RevenueCapital
March 31. 2014
$ 35,909 $40,339
Additions(interest) Withdrawals
March 31.2015
2,991 $ - $ 38,900-
- 40,339
$
$ - $ 150,101
S 76.248 $ 2,991 S - S 79.239
9
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S IPEKNFKATIK
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 2015
7, flue from related parties
The First Nation advanced funds to related parties during the 2010-201 1 year with the following amountsoutstanding at March 31, 2015:
MRJJM&nagement inc.- $59,200
Amcrest Management Inc. - $172,200Total due from related parties - $23 1,400
1. MRJJ Management Inc.
During July. 2009, certain members of Sipeknekatik Council formed a committee mandated to initiateand manage commercial development at Wallace Hill. HRM, which was to he added to the SipeknekatikReserve land. Following subsequent discussions with legal counsel, it was agreed that utilization of acompany as a vehicle for leasing Reserve lands to private commercial interests was advisable.
As a result, MRJJ Management Inc. (MRJJ) was formed in January. 2010 by the committee .MRJJ isowned by the committee members: Mike Sack. Ronnie Augustine, Jerry Sack, and Jeff Hayes. Prior tobeing used as a &vclopment vLhlcle for the First Nation the MRJJ shareholdcrs were to executefiduciary agreements where under they wotild hold their shares in trust for the First Nation members.
The primary purpose of MRJJ was, subject to other documents being finalized that would make it a fullyE3and controlled business, to he the designee of Wallace Hill Reserve lands for commercial developmentpurposes It was also intended, in the initial stages, to be the Band s proxy in negotiating commuc iiidevtiopment opportunities and other aspccts of development at Wallace Hill Subsequently Councildecided not to utilize MRJJ for its original purpose.
2. Amercst Management Inc.
Amcrest Management Inc. is a company solely owned by the former Director of Finance. During the2010-2011 year, funds were advanced to Amcrest from the MRJJ account as well as from various Bandhank accounts. Total advances to Amcrest Management Inc. during that year totalled $172,200. none ofwhich had been repaid at March 31, 2015.
The balances due from Amcrest Management Inc. are unsecured, non-interest bearing with no specificterms of repayment.
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SIPEKNEKATIK
8. Accounts Receivable
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31. 2015
2015 2014
$ 73,3712,500
17,285476,954125,646146,21733,900
172,28759,200
172,200307,000131,413
40,000171,793
$ 109.84023.10116,004
420,748126,850370.90393.300
249,17759,200
172.200307.000
745:3355.000
146.134
9. (lieques written in excess of deposits I cash
Under the terms of an agreement with Canada Mortgage and Housing Corporation, Shubenacadie BandFirst Nation must set aside funds annually for the repair, maintenance and replacement of worn outassets. These funds are to be held in a separate bank account and invested only in accounts or instrumentsinsured h the Canada Deposit Insurance Corporation or as otherwise approved by the Canada Mortgageand Housing Corporation. Cash and cash equivalents are comprised of the following:
2015 2013
Aboriginal Affairs and Northern Development CanadaMikmaw KinamatneweyMETS programsOther government departmentsEmployees and other band membersDepartment of Fisheries and OceansCanada Mortgage and Housing CorporationGaming programMRJJ Management Inc. (Note 7)Amcrest Management Inc. (Note 7)Unapproved transfersInsurance proceedsAANDC 1919 claim fundingLeased licences - fisheriesWallace [liii Development Incorporated
1,929,766 2,224,001Allowance for doubtful accounts (940,031) ( 942,235)
$ 989,735 S 1,281,766
Cash on hand $ 76,091 $ 32,644Cheques written in excess of deposits (723,540) (756,194)G1Cs 100,000 100,000ExternaII restricted CMHC reserve GIC 200,000 100.000
$ (347,449) $ (523,550)
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S IPEKNEKATIK
10, Accounts payable
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 2015
2015 2014
CurrentTradeReceiver General - payroll deductionsPension plan remittanceFunding repayable to Health CanadaFunding repayable to AANDCWorkers compensation
5.63826,295
- 111,790190,745 3 82,745
1)eferred revenue
2015 2014
Mikmaw Youth Mental Health Development $ 18,546 $ 44.567Sno.vcrah 300,000
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AYSPS- IJNSI
- 5,000Active Seniors Prov. NS funding
- 10,000
$ 318,546 $ 59.567
$ 2,196,18923,602
$ 2,768,819(40.293)
2,410,536 3.253,994
Long terniTrade accrued liabilities 3,282.581 3,380.813
$ 5,693,117 $ 6,635,807
11.
12
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S IPEKNEKATIK
12. Long-term debt
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MARCH31. 2015
2015 2014
Royal Bank of CanadaHousing project mortgages due November 2015 to September 2019,hearing interest at 2.78% to 3.03%, payable in equal monthlyamounts of principal and interest totaling $3,208. Mortgages areguaranteed by the Minister of Aboriginal Affairs and NorthernI)evelopment Canada. $ 321,411 S 349,783C IBCHousing project mortgages due October 2016 to December 2016,bearing interest at 5.29% to 5.39%, payable in equal monthlyamounts of principal and interest totaling $4,250, Mortgages areguaranteed by the Minister of Aboriginal Affairs and NorthernDevelopment Canada.
Canada Mortgage and Housing Corporationhousing project mortgages due August 2015 to August 2019,hearing interest at 1 .67% to 2.78%, payable in equal monthlyamounts of principal and interest totaling $1 8,701. Mortgages areguaranteed by the Minister of Aboriginal Affairs and Northern[)evelopment Canada. 2,769,001 2.937,083
3,220,888 3,460,214Current portion 241,255 230.742
$ 2,979,633 $ 3,229,472
Approximate principal portion of long-term debt due within each of the next five years, assuming refinancing of the mortgages under similar terms. is as follows:
2016 $ 241,2552017 237,9492018 207,2942019 186,3772020 and thereafter 2,348,013
$ 3,220,888
130,476 173.347
13
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14
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ortiz
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nB
alan
ce, e
nd
2014
Net
of y
ear
book
val
ue
Land
$18
9,27
3$
-$
189,
275
$-
$-
$-
$18
9,27
5B
uild
ings
1,84
2,64
713
6.77
81,
979,
423
818.
623
54.6
2187
3,24
41,
106,
179
Veh
icle
s49
8,71
1-
498,
711
430,
020
20,6
0745
0,62
748
,084
Ban
dho
usin
gpr
ojects
14,3
35,7
55-
14,3
35,7
556,
781,
591
377,
708
7,15
9,29
97,
176,
456
Furn
iture
and
equi
pmen
t70
2,29
5-
702,
295
488,
782
42,7
0253
1,48
417
0,81
1Co
mm
unity
centr
es2,
630,
980
274,
289
2,90
5,26
92,
445,
899
62,0
832,
507,
982
397,
287
Pum
p/ga
min
gre
novat
ions
30,8
96-
30,8
9619
,411
2.29
721
,708
9,18
8Co
mm
unity
hous
ing
2,37
1,07
0-
2,37
1,07
096
8,31
414
0,27
51,
108,
589
1,26
2,48
1A
dmin
istra
tion
build
ing
917,
433
-
917,
433
673,
416
24,4
0169
7,81
721
9,61
6H
ealth
centr
e87
3.67
1-
873.
671
529,
724
34,3
9456
4,11
830
9,55
3P-
12sc
hool
7,13
7.73
7-
7,13
7,73
71,
614,
159
276,
179
1,89
0,33
85,
247,
399
Rec
reat
iona
l fac
ilitie
s24
6,59
3-
246,
593
69,1
9617
,740
86,9
3615
9,65
7In
fras
truct
ure
4,24
3,48
9-
4,24
3,48
92,
386,
107
148,
591
2,53
4,69
81,
708,
791
Wat
ersy
stem
395,
228
604,
373
999,
601
251,
478
89,1
8734
0,66
565
8,93
6R
oads
1,29
0.16
5-
1,29
0,16
572
8,89
744
,902
773,
799
516,
366
Swim
min
go
o1
400,
000
400.
000
.
-40
0.00
0
S37
.705
.943
S1,
415.
440
$39.1
2l.38
3$1
8,205
.6l7
$1.
335.
687
$19.5
41.30
4$1
9,580
,078
IS
-
SIPEKNEKATIK
13. Accumulated surplus
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 2015
Effective March 31. 2014 any surpluses from the Education program greater than 1 of the educationbudget or S50,000 are required to be externally restricted as agreed upon with Mikmaw Kinamatenewey.A flrmal plan detailing how these funds will be used must be submitted and approved by MikmawKinamatnewey by August 31St of each year.
2015 2014
Externally restricted - educationUnrestrictedInvestment in capital assets
$ (330,750)(5,700,618)15,212,728
$ 499,469(7,023.815)16,119.865
$ 9,181,360 S 9.595.519
15. Comparative Amounts
Certain comparative amounts have been reclassified to conform with the presentation adopted in thecurrent period.
16. Due to minor band members
Annually from 2006 to 2011, Council approved Christmas bonuses of S250 to he paid to each Bandmember. Band members were not entitled to receive their bonus until they attain the age of 1$.
17. Economic Dependence
2015 2014
Sipeknekatik receives a significant portion of its revenue pursuant to a funding agreement withAboriginal Affairs and Northern Development Canada and other federal government agencies.
Balance, beginning of year $ 884,258 $ 938,258Deduct: payments related to previous years (61,500) (54.000)Balance, end of year $ 822,758 $ 884,258
16
-
S IPEKNEKATIK
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 2015
1$. Contingent Liabilities
Sipeknekatik has entered into contribution agreements with various federal and provincial governmentpartners. Funding received under these contribution agreements is subject to repayment if the FirstNation fails to comply with the terms and conditions of the agreements. The likelihood of compliancerevies and any potential findings are not determinable as at the date on the auditors report.
Subsidy assistance payments received through Canada Mortgage and Housing Corporation pursuant toSection 56.1 of the National Housing Act are subject to repayment if the First Nation fails to comply withthe terms and conditions of the agreement. As at March 31, 2015, the First Nation has not fully compliedwith all the terms and conditions including its failure to calculate rent-to-income in accordance with subparagraph 2(5) of the Operating Agreement and its failure to maintain the required replacement reserve.To the best of managements knowledge, the entity will not have to repay any of the subsidy assistancepayments received and thus, no amount has been recorded to reflect this potential liability.
hi addition, in the normal course of its operations. the First Nation becomes involved in legal actions.Some of these potential liabilities may become actual liabilities when one or more future events occurs orfail to occur. To the extent that the future event is likely to occur, and a reasonable estimate of the losscan he made. an estimated liability is accrued and an expense recorded on the First Nations financialstatements.
When the future event and/or ability to estimate involves more uncertainty, the action or claim isconsidered a contingent liability.
19. Other Matters
As a result of financial concerns and irregularities. Chief and Council of Sipeknekatik engaged a firm tocarry out a forensic audit, which commenced May, 2012.
In part. the firm is to review certain financial transactions in particular any that were not properlyauthorized. including hut not limited to the following amounts included in Note 7:
Due from MRJJ Management Inc. $ 59,200Due from Amcrest Management Inc. 172,200Unapproved transfers 306,000
The First Nation has made a claim to its insurer for a potential recovery. The likelihood and amount ofrecovery are both unknown at this time.
17
-
S IPEKNEKATIK
20. Expenses by olject
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Wages and benefitsTobacco shopFuel and tobacco purchasesSocial program expensesHealth program expensesTravelTu it ionSupplies and servicesInterest and bank chargesProfessional servicesRepairsOtherAmortizationForensic audit
21. Pension plan
MARCH 31. 2015
2015 2014
The First Nation participates in an individual defined contribution pension plan for its employees. Theplan is not mandatory and there is no required waiting period for permanent employees to enroll in theplan. The First Nation contributes amounts equal to the employees contribution up to a maximum of5.5 of the employees gross earnings. Employer contributions, which are expensed in the periodincurred, totalled $49,694 (2014-
$41,336) during the year.
$ 8,795,954 S694,888
5,612,7385,102,011
668,15994,662
2,150,9272,518,089
234,526554,027647,812
4,267,2671,417,293
133,592
8.137.135529.646
5,702,1234.933.449
606.18378,685
I .083.2622.351.118
100,104836.532622.014
3,062,1361.335.689
319.97t)Amortization $ 32,891,945 $ 29,798,(>46
18
-
SIPEKNEKATIK
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31. 2015
22. Financial Instruments Risks and Uncertainties
The First Nation is exposed to the following risks in respect of certain of the financial instruments held:
Credit risk
The financial instruments that potentially subject the First Nation to a significant concentration of creditrisk consist primarily of cash and accounts receivable.
The First Nation maintains cash balances with Canadian chartered banks which is insured by the CanadaDeposit Insurance Corporation up to CDN $100,000. From time to time, these balances exceed thefederall\ insured limits and expose the First Nation to credit risk from concentration of cash. The First\ation limits this risk by transacting with reputable financial institutions.
The First Nation does have credit risk in accounts receivable $989.735 (2014- $1,281,766), Credit risk isthe risk that one party to a transaction will fail to discharge an obligation and cause the other party toincur a financial loss. The First Nation reduces its exposure to credit risk by performing valuations on aregular basis and creating an allowance for bad debts when applicable. The First Nation derivessubstantially all of its revenues and therefore, accounts receivable, from government sources. In theopinion of management. the credit risk exposure to the First Nation is low and is not material.
Liquidity risk
The First Nation does have a liquidity risk in the accounts payable and accrued liabilities of S5693.1 17(2014- $6,635,807). Liquidity risk is the risk that the First Nation cannot repay its obligations when they
become due to its creditors. The First Nation reduces its exposure to liquidity risk by ensuring that itdocuments when authorized payments become due.
Interest rate risk
The First Nation is exposed to interest rate risk. This risk exists due to interest rate exposure on certainterm loans, which are variable based on the banks prime rates. This exposure may have an effect on itsinterest expenses in future periods. The First Nation reduces its exposure to interest rate risk by regularlymonitoring published bank prime interest rates which have been relatively stable over the periodpresented. There are some loans payable that are at fixed term rates and therefore, do not affect interestrate risk. The First Nation does not use derivative instruments to reduce its exposure to interest rate risk.In the opinion of management the interest rate risk exposure to the First Nation is low and is not material.
23. Budgeted figures
lJnaudited budgeted figures have been provided for comparison purposes and have been derived from theestimates approved by the Chief and Council.
-
SIPE
KN
EK
ATI
K
CO
NSO
LID
ATE
DSU
MM
AR
YSC
HED
ULE
OF
OPE
RA
TIO
NS
BYPR
OG
RA
M
FOR
THE
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REN
DED
MA
RC
H31
, 201
5
Page
Fund
sO
ther
Rev
enue
Tot
alR
even
ueSo
ldE
Mw
nditu
res
Oth
erite
ms
Soci
alD
evel
opm
ent
2I S
5,63
5.42
5S
(234
,568)
S5,
400,
857
5-
S5,
400,
857
S-
S-
Ban
dA
dmin
istra
tion
2.75
9,19
793
1,03
31,
690,
230
-
2,46
4.48
3-
(773
,253)
LduL
atio
n2
6)66
7i
6b6
37
31
567
1(7
3)2U
StC
apita
lm
dH
ou
sin
2467
660
200
2S
560
833
UI(1
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3O
pera
ting
and
Mai
nten
ance
2555
3.74
934
2,69
489
6,44
3-
2,06
5,87
3-
(1.16
9.431
)Ec
onom
icD
evel
opm
ent
2625
3,5U
8-
253,
598
-32
0,48
7-
(66,8
89)
Com
mun
ityH
ealth
27-
1,28
2,16
91,
282,
169
-1.
445,
129
-(1
62,96
0)Em
ploy
men
t Tra
inin
g28
46,0
001,
090,
716
1,13
6,71
6-
(.319
,669
-(1
82,95
3)G
aini
ng29
-3,
446,
303
3,44
6,30
3-
1.60
0,03
6-
1,84
6,26
7To
bacc
oSt
ore
30-
6,73
6,07
56,
736,
075
4,47
4,23
181
9,18
6-
1,44
2,65
8Fi
sher
ies
31-
2,58
6,06
52,
586,
065
-
1,73
6,12
7-
849,
938
Hou
sing
Proje
cts32
-45
4,76
845
4,76
8-
218,
692
-23
6,07
6G
asBa
r33
-
1.29
9.33
01,
299,
33(1
l,138
i07
189.
098
-(2
8.275
)
Tot
als
$7,
923,
629
$24,
554,
158
$32,
477,
787
$5,
612,
738
$25,
728,
322
$(1
,550,8
86)$
(414
,159)
The
accom
pan
innote
sar
ean
intet
zral
part
of
the
finan
cial
stat
emen
ts
AA
ND
CC
ost o
fGoo
dsTo
talSu
rplu
s(I)
eficit
) 20
-
Schedule #1SIPEKNEKATIK
SOCIAL DEVELOPMENTCONSOLIDATED SCHEDULE OF OPERATIONS
FOR THE YEAR ENDED MARCH 31. 2015
2015Actual
The accompanying notes are an integral part of the financial statements
2014Actual
2015Budget
RevenueAANDC Income assistance $ 5,364,060 $ 5,364,059 $ 5.364.059AANDC Assisted living 265,296 271,366 265,294Transfer to hand administration (340,330) (234,568) (374,452)
5,289,026 5,400,857 5.254.9() IExpenditures
Basic needs 4,569,600 4,738,696 4.581,2 16Rent transferred to housing projects, Sch. 12 192,000 220,095 201,576Special needs 180,000 143,220 1 12,077Wages and benefits 142,926 133,902 142,068Assisted living 162,500 122,226 179.384Interest and hank charges 21,000 30,530 28,645Office and administration 12,000 8,437 7,210Travel 9,000 3,751 2,725
5,289,026 5,400,857 5,254,901
Surplus $- $ - S
-
21
-
Schedule #2SIPEKNEKATIK
BAND ADMINISTRATIONCONSOLIDATED SCHEDULE OF OPERATIONS
FOR THE YEAR ENDED MARCH 31, 2015
RevenueAANDC Band supportTransfer from Social DevelopmentGovernance recovery from LSKInsurance proceedsHealth Administration Feesl3and support recovery from LSKAANDC Registration and membershipAANDC Fin Mgmt Gov Cap DcvProvince of NS
- ConsultationRental incomeGST/HST rebatesMiscellaneousShelburne projectAANDC Community promotionAANDC
-. Reserve land and environmentAANDC Governance capacity development
ExpendituresWages and benefitsLegal costsCo-managementInterest and hank charges (recovery>Xyntax software acquisition and implementationCRA penalties and interestOfficeConsultationUtilitiesAudit feesBand membershipOther Council expensesHST recovery commissionElectionExternal accountingInsuranceFunding repaid to AANDC Gov Cap DcvTravelProfessional developmentCommunicationsP & ID project
60,000
28,80055,00055,96636,000
25,00018,00025,000
16,80019,500
$ 630,143234,568146,194131,413122,26084,66866,05463,00060.00058,48844,08635,45613,900
- 58.036- 35,067- 29,643
1,690,230 1,641.049
1,261,587294,1 1541 1,200(34,537)
2015 2015 2014Budaet Actual Actual
$$ 616,044340,330146,194
84,66864,572
28,528
58,036
616.044374,452142,120
80.39677.16964,576
51.18844,05768,201
1,338,372
1,034,293240,000150,00042,00050,000
1,338,499284,719133,000105.558100,93282,47875,61274,51656,21850,00036,96626,72923,14423,06516,46815,46810,9396,8335,532
101,47123.94631,26062,15037,25332.110
7.050
22,300
12.523
50,66829.64337.516Bad debts - (2,204)
1,856,359 2,464,483 2,370,255Deficit $ (517,987) $ (774,253) $ (729,206)
The accompanying notes are an integral part of the financial statements
-
Schedule #3SIPEKNEKATIK
EDUCATIONCONSOLIDATED SCHEDULE OF OPERATIONS
FOR THE YEAR ENDED MARCH 31, 2015
2015 2015 2014Budget Actual Actual
RevenueAANDC Summer Work experience $ - $ - $ 57,477M ikmaw Kinamatneway 6,343,877 6,445,216 6,453.600Province of Nova Scotia
110,994-
Other- 10,163 1,46()
6,343,877 6,566,373 6,512,537
ExpendituresWages and benefits 2,497,300 2,081,068 1,740,586Wages and benefits enhanced teacher salary 76,000 76,593 76,245Post secondary allowances and books 850,000 1,185,633 540,460Post secondary tuition 850,000 965,294 542,802Special education 251,381 900.164 833.512Daily transportation 418,648 365,544 382,380Operations and maintenance 342,694 342,694 351,399Band school operations 1,067,990 337,519 366.848Sports and recreation 146,297 170,463 155.907Governince 146,193 146,194 142.434New paths 112,705 113,598 263,957Fitness facility upgrade
- 110,994School supplies
- 107,993 47,273Cafeteria supplies
- 95,127 61.6615\cademic incentives
- 85,683 83,289Education band support 84,668 84,668 77,169Security
- 67,977 4,210Guidance and counselling
- 54,571 183.774Aboriginal language program
- 13,838 6,265Post secondary travel
- 8,815 6,929Capital project
- 1,241Summer work experience wages
-
- 145,968
6,843,877 7,315,671 6.013.068
Surplus (deficit) $ (500,000) $ (749,298) $ 499,469
The accomppying notes are an integral part of the financial statements
23
-
Schedule #4S1PEKNEKATIK
CAPITAL AND HOUSINGCONSOLIDATED SCHEDULE OF OPERATIONS
FOR THE YEAR ENDED MARCH 31,2015
2015 2015 2014Budget Actual Actual
RevenueAboriginal Affairs and Northern Development Canada $ 660,540 $ 675,660 S 660,543Administration income CMI-IC housing projects
- 42,000 42,000Canada Mortgage and Housing Corporation- 11.200
-
ACOA Multipurpose Centre-
- 1 1384()AANDC Housing policy implementation
-- 35,000
660,540 728,860 85l383
ExpendituresWages and benefits 293,800 371,355 276.41()Ilousing repairs and renovations 60,940 272,406 152,461Insurance 125,000 143,864Trael 14,400 35,169 37,901Office expenses 4,800 8,251 4,592Telephone 3,600 1,968 1,179Policy development
-
- 35,00()New housing 250,000
-
-
752,540 833,013 507.543
Surplus (deficit) $ (92,000) $ (104,153) $ 343,840
The accompanying notes are an integral part of the financial statements
23
-
Schedule #5S IPEKNEKATIK
OPERATING AND MAINTENANCECONSOLIDATED SCHEDULE OF OPERATIONS
FOR THE YEAR ENDED MARCH 31. 2015
2015Actual
2014Actual
2015Budget
RevenueA:\NDC Fire protection $ - $ 94,935 S -O&M Recovery from LSK 342,694 342,694 338,965AANDC Facilities O&M 279,713 286,114 279.713AANDC Water systems (see note)
- 150,000 50,000AANDC Water O&M
- 22,700 22,700AANDC Response
- 504,163AANDC Water
-- 354.373
Other revenue 11,660-
634,067 896,443 1.549,914
ExpendituresSecurity wages and benefits 421,956 433,249 3 17.175Garbage collection and recycling program 264,000 247,844 246.389Heat and power 237,600 239,903 265.645Snowplov.ing 201,000 239,718 170,925Wages arid benefits 207,776 234,129 177,570Repairs and maintenance 72,000 169,719 77,407Water and sanitation 300,000 151,248 143,122Insurance 175,000 131,586 I 39.240Fire protection equipment
94,935
Community centre- 36,647
Road maintenance 50,000 21,412 44,905Fire protection 25,200 20,792 28,481Street lighting 15,000 14,619 9,941Travel
- 14,505Emergency drinking water
- 9,943 10.814Telephone
- 3,088Training
- 2,537-
Oil spill clean-up-
- 192,373Oil spill funding repayable to AANDC
-
- 1 11,790Water 0 & M
-
- 22,700
1,969,532 2,065,874 1.958.377
Deficit $ (1,335,465) $ (1,169,431) $ (408,563)Note: Expenditures of $150,000 related to the water systems have been capitalized in Note 13.
The accompanying notes are an integral part of the financial statements
25
-
Schedule #6SIPEKNEKATIK
ECONOMIC DEVELOPMENTCONSOLIDATED SCHEDULE OF OPERATIONS
FOR THE YEAR ENDED MARCH 31, 2015
2015 2015 2014Budet Actual Actual
RevenueAboriginal Affairs and Northern Development Canada $ 148,258 $ 151,651 S 148.258AADC - Economic Development Planning - 90,067
-
AANDC- Land management capacity
- 11,880 90.067
148,258 253,598 238,325
ExpendituresLand usc/communications 99,933 132,926 47.98 IWages and benefits 51,753 53,228 48.228Wallace Hill (incorne)/loss
- 41,5521919 land claim expenses 52,500 40,282 67,872Business development 22,000 14,901 29,807Land management wages
- 11,880 97.353Craft contributions 9,000 11,597
-
Professional development 8.500 9,890Office expenses 7,000 1,544
-
Travel 4,200 1,364Consulting 30,000 1,323
-
Telephone 1,200-
-
286,086 320,487 291.241
Deficit $ (137,828) $ (66,889) $ (52,916)
The accompanying notes are an integral part of the financial statements
26
-
Schedule #7SIPEKNEKATIK
COMMUNITY HEALTHCONSOLIDATED SCHEDULE OF OPERATIONS
FOR THE YEAR ENDED MARCH 31,2015
2015 2015 2014Budget Actual Actual
Re venueHealth Canada $ 1,222,602 $ 1,222,602 $ 1,069,720Youth and mental health funding
- 44,567 2,433Active seniors - Province of Nova Scotia
- 10,000-
Other- 5,000
-
1,222,602 1,282,169 1,072,153
ixpcndituresHome and community care 303,040 442,904 655,212Community health promotion 225,593 225,593 216,081Building healthy communities
- mental health 112,138 112,138 108.872Brighter futures 111,727 111,727 108,473Operations and maintenance 54,670 77,878 67,966Planning/quality management 73,166 73,166
-
Aboriginal head start 71,649 71,649 71 .649Maternal child health 49,954 49,954 49,954National native alcohol and drug abuse program 46,735 46,735
-
Aboriginal diabetes initiative 44,813 44,813 47.3 13Mikmaq youth mental health
- 34,567 2.433Prenatal nutrition 35,153 35,153 34,308National aboriginal youth suicide prevention strategy 23,871 23,871Building healthy communities solvent abuse 23,201 23,201 27.890Drinkmg water safety 18,500 19,521 1 1 .660Oral health 14,526 14,526 14,526Active seniors/new horizons
- 10,000 2,770HIV/Aids program 7,718 7,718 8.250Communicable disease control - targeted immunizationstrategy 6,148 6,148 250Insurance
- 3,867-
Funding repayable to Health Canada-
- 26.294Special project
-
- 17.154Targeted immunization
-
- 10,000
1,222,602 1,445,129 1.381.055
Deficit $- $ (162,960) $ (408,902)
The accompanying notes are an integral part of the financial statements
27
-
Schedule #8S IPEKNEKATIK
EMPLOYMENT TRAININGCONSOLIDATED SCHEDULE OF OPERATIONS
FOR THE YEAR ENDED MARCH 31, 2015
2015 2015 2014Budget Actual Actual
RevenueAANDC Summer work experience $
- $ 46,000 $-
Mikmaq Employment Training Secretariat 891,514 747,579 794.380Mikma Economic Benefits Office of Nova Scotia Inc. - 194,657
-
Other- 81,455 17,940
Daycare service 36,000 38,175 41,267Province of Nova Scotia funding
- 28,850-
927,514 1,136,716 853.587
ExpendituresMikrnaq Employment Training Secretariat programs 552,695 568,802 537,662(Thud care initiative 323,874 200,657 261.876Nlikmaw economic benefits office of Nova Scotia Inc.
- 186,518-
Summer student wages and benefits- 154,344
-
Native employment 50,945 108,217 134,438Oil and as training
- 101,131-
927,514 1,319,669 933,976
Deficit $ - $ (182,953) $ (80,389)
The accompanying notes are an integral part of the financial statements
28
-
Schedule #9S IPEKNEKATIK
GAMINGCONSOLIDATED SCHEDULE OF OPERATIONS
FOR THE YEAR ENDED MARCH 31, 2015
2015 2015 2014Budget Actual Actual
RevenueGaming commissions - band operated VLTs $ 1,118,000 $ 1,693,050 $ 1,284,109Gaming commissions - Hammonds Plains VLTs 937,500 1,399,191 208,062Province of Nova Scotia gaming agreement 300,000 327,283 370,248ATM commissions
- 26,779 11.017Gaming commissions - store operated VLTs
- - 255.917
2,355,500 3,446,303 2.129.353
ExpendituresAtlantic Lottery Corporation commissions 690,000 655,653 590,659Waes and benefits 587,600 519,370 381,543Security wages 182,496 180,894 148.206Rent 60,000 120,000
-
Materials and supplies 25,200 59,454 33,949Heat and lights 24,000 30,292 14.306Telephone 3,600 8,377 9,196Interest and hank charges 3,600 7,213 3,5$()Snow removal
- 7,195Travel 5,400 1,588 6,239Bad debts
-- 22.365
Advertising 3,000-
-
Professional fees 2,000-
-
1,586,896 1,600,036 1,220,003
Surplus $ 768,604 $ 1,846,267 $ 909,350
The accompanvin notes are an intera1 part of the financial statements
29
-
Schedule #10SIPEKNEKATIK
TOBACCO STORECONSOLIDATED SCHEDULE OF OPERATIONS
FOR THE YEAR ENDED MARCH 31, 2015
2015 2015 2014Bud2et Actual Actual
RevenueTobacco sales $ 6,720,000 $ 6,686,075 $ 6,646.515Loblaws settlement
- 50,000-
6,720,000 6,736,075 6,646,515
Cost of goods sold 4,704,000 4,474,231 4,372.661
Gross profit 2,016,000 2,261,844 2,273.854
Expendituresl)onat ions to senior assistance 400,000 385,312 403.904Donations to community members 393,750 276,488 226,265Wages and benefits 117,520 104,255 121,069Bass derby/Pow Wow 27,500 32,988 5.000Office 8,400 12,451 3.549Bank charges
- 7,471 7.546Professional fees
- 121 121
947,170 819,186 767.453
Surplus $ 1,068,830 $ 1,442,658 $ 1.506.400
The accompanying notes are an inteural nart of the financial statements
30
-
Schedule #1 1S IPEKNEKATIK
FISHERIESCONSOLIDATED SCHEDULE OF OPERATIONS
FOR THE YEAR ENDED MARCH 31, 2015
2015 2015 2014Budget Actual Actual
RevenueLobster $ 450,000 $ 1,392,683 $ 862,707Snow crab 500,000 861,725 580.828Department of Fisheries and Oceans 9,000 180,165 393.472Scallops 78,250 103,896 70,759Swordfish 58,000 47,596 57,155
1,095,250 2,586,065 1.965.921
ExpendituresWages and benefits
- 791,842 692,324l3and owned boat - Snow Crab
- 352,785-
Community member disbursements 90,000 182,800 86.85()Lobster nets
- 119,472-
AICFI wages 53,031 79,686 53,559Band owned boat - Lobster
- 61,902Professional fees 6,000 41,575 15.950Travel 12,000 37,131 12.368AWFI training
- 25,282-
Clarks Harbour property taxes and utilities 18,000 13,491 21,594Mi see Ilaneous 70,000 9,349 8,024Swordfish expenses
- 9,174-
Employee testing- 6,320 7.356
Office and supplies 3,500 4,950 4,544Bank charges 600 358 420
254,131 1,736,127 902.989
Surplus $ 841,119 $ 849,938 $ 1.062,932
The accornpyjng notes are an integral part of the financial statements
31
-
Schedule #12SIPEKNEKATIK
HOUSING PROJECTSCONSOLIDATED SCHEDULE OF OPERATIONS
FOR THE YEAR ENDED MARCH 31, 2015
2015 2015 2014Budget Actual Actual
RevenueRental Income $ 192,000 $ 220,095 $ 201,576Canada Mortgage and Housing Corporation subsidies 150,000 187,373 203,449CMHC RRAP Funding 40,000 47,300 93,30()
382,000 454,768 498325
Lxl)en(1ituresInierest on long-term debt 96,960 76,903 97762Insurance
- 47,489 103,200RRAP renovations 40,000 47,300 1 12,866Utilities and administration 44,040 42,000 42,000Professional fees 9,000 5,000 6,750Mai.nter.ance
-
- 29,799
190,000 218,692 392,377
Surplus $ 192,000 $ 236,076 S lO5948
The accompanying notes are an integral part of the financial statements
32
-
Schedule #13SIPEKNEKATTK
GAS BARCONSOLIDATED SCHEDULE OF OPERATIONS
FOR THE YEAR ENDED MARCH 31, 2015
2015 2015 2014Budget Actual Actual
RevenueFuel sales $ 1,380,000 $ 1,076,602 S 1.299,885Tobacco sates 204,000 162,728 128,743Rent charged to Gaming 60,000 60,000
1,644,000 1,299,330 1,428.628
Cost of goods sold - fuel 1,243,000 1,016,845 1,226,542Cost of goods sold - tobacco 154,000 121,662 102,920
1,397,000 1,138,507 1,329,462
Gross profit 247,000 160,823 99,166
lxpendituresWages and benefits 189,840 166,611 223,971Computer software and support 15,000 8,865 7,018Interest and hank charges 6,000 6,493 6.728Repairs and maintenance 9,600 3,556 5, 185Utilities and telephone 10,800 2,573 4,023
231,240 189.098 246.925
I)eficit $ 15,760 $ (28,275) $ (147,759)
The accompanying notes are an integral part of the financial statements
33
-
SIPEKNEKATIK
ANNUAL SURPLUS NET OF CAPITAL RELATED REVENUES AND AMORTIZATION
YEAR ENDED MARCH 31. 2015
2015 2014
Aimual surplus (deficit) per page 3 (414,159) 844,544
Deduct: Capital related revenues included in annual surplus
Federal go\ernment transfers for capital (23(>.X2 I ) (1.039.1 67Provincial government transfers for capitalFotal government capital transfers (230,821) (1,039,167)
Add: Amortiiation expense included in annual surplus 1.417.293 I .335.689
Annual surplus net of capital related revenues and amortization 772,313 1,141,066
33
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SIPEKNEKATIK
SCHEDULES TO CONSOLIDATED FINANCIAL STATEMENTS
GOVERNMENT TRANSFERS
YEAR ENDED MARCH 31, 2015
Direct Provincial government transfers:
2015 2015 2015Qprating Capital Total
1)irect Federal government transfers:
Ahoriginal Affairs and Northern Development 7,773,629 150.000 7.923.629Health Canada 1,222,602
- I ,222602Department of Fisheries and Oceans 180,165
- 180, 165Mikmaw Kinamatneway 6,364,295 80,921 6,445,216METS 747.579
- 747,579Canada Mortgage and Housing Corporation 245,873
.
245.873
Federal government transfer total S 16,534,143 230,921 S 16,765,064S
$ 537,127 $ - $ 537.127
38
-
S IPEKNEKAT 1K
EXTERNALLY RESTRICTED SURPLUS - EDUCATION CONTINUITY SCHEDULE
YEAR ENDED MARCH 31,2015
Externally restricted- Education surplus continuity schedule
Opening balance, March 31, 2014 $ 499,469
Less:Deficit from Education (Schedule #3) $ (749.298)Capital asset purchase - school bus $ (80,921
Closing balance, March 31, 2015 $ (330,750)
39
-
REVIEW ENGAGEMENT REPORT
To the Chief, Council and Members of Sipeknekatik
We have reviewed the schedules of salaries, honoraria and travel paid to Chief and Council. andsalaries and travel paid to senior management of Sipeknekatik for the year ended March 31,2015. These schedules were prepared in accordance with the instructions in the AboriginalAffairs and Northern Development Canada Year End Financial Reporting Handbook, 2014-2015. Our review was made in accordance with Canadian generally accepted standards forreview engagements and, accordingly, consisted primarily of enquiry, analytical procedures anddiscussion related to information supplied to us by the First Nation.
A review does not constitute an audit and, consequently, we do not express an audit opinion onthese schedules.
Based on our review, nothing has come to our attention that causes us to believe that theseschedules have not been prepared, in all material respects. in accordance with the instructions inthe handbook described above.
These schedules, which have not been, and were not intended to be, prepared in accordance withCanadian generally accepted accounting principles, are solely for the information and use of themembers of Sipeknekatik and Aboriginal Affairs and Northern Development Canada for thepurpose of complying with the Aboriginal Affairs and Northern Development Canada Year EndFinancial Reporting Handbook. 2014-2015. These schedules were not intended to be and shouldnot be used by anyone other than the specified users or for any other purpose.
LJuly28. 2015Woodstock. NB Andrew D. Lenehan. CA
40
-
SIPEKNEKATIK
SCHEDULES TO CONSOLIDATED FINANCIAL STATEMENTS
YEAR ENDED MARCH31, 2015
Salaries. honoraria and travel expenses paid to Chief and Council
Position
(unaudited)
# of Travelmonths Salary Honoraria Other Total Expenses
hin NeinI 1mih\ Nes inKeith J. Juliait1)oreen KnockwoodMichIe Glaseowlhona \Ialonev
(Hen P. KnoksoodEarl SackMichael P. Sack..Cheryl Maloney
ChiefCouncil brCounciblorCouncilborCouncillorCouncilborCouncillorCouncillorCouncil brCouncillorCouneillorCouncillorCouncil brCouncillorCouneillorCouncillor(ouncilbor
12 $ 61,793 $12 38.5207 22.9645 15.55612 38,521)12 38,52012 38.5207 22.9645 15.55612 38,52012 38,52012 38.5207 22.9645 15.55612 38,5207 22,9645 15.556
$ S 61,793 $38.520
- 22,%4- 15.556
1.096 39,61638,520
- 38.52022.964
- 15.55638,52038,520
- 38.52(1-
- 22.964
R.ufu..s CopageJerry brancis SackRk nnie \V ill hint Joseph Augustine\1ar Ellen SvlihovThomas Jeflerson HoweColleco Mary Rebecca Jane KnockwoodAlexander McDonald
1,470302368
1,540
3022.1(21
368
368368
- 15.5561,620 40,140 872
22.964-
15.556
S 524M33 S- $ 2.716 5 526.749 S 7,979
41
-
SIPEKNEKATIK
SCHEDULES TO CONSOLIDATED FINANCIAL STATEMENTS
YEAR ENDED MARCH 3!. 2015(unaudited)
Saiarte. honoraria and travel expenses paid to senior management staff
Posit ion# of
months Salary Honoraria Otherfra ci
Total Expenses
)perati insF mince.Finaneial OfficerR st Seci ndarv EducationF lusineO&MBat.:id S.chooiPre ch olI Fi (arEconomic DevelopmentTobaccoI kalth
DirectorDirectorExecutiveManagerManagerManagerManagerManagerManagerManagerManagerManagerManagerManagerManagerManagerManagerManagerManagerManagerManagerManagerManagerManager
12 S 61,000 S12 60,0008 63,84612 36.07812 42.42312 37,48112 97,61412 66.23012 35.00012 46,00012 40,00012 31.97112 35,0007 21,66212 39.92 312 35.0(X)12 52,08512 52,21512 36.0(X)12 33.24012 49,61412 49,70012 39.95212 35,000
S- S 61.000 60,0(X) 63,846
5000 36.5784.401) 46.823
37,48197,61466.230
- 35.001)46,00040,000
- 31.97135,00025,86.239,92338.70052,08552,2i536.00034.24049,61466,85045.3)235,0(34)
1.5182,6073,9223.5133.4658,5043,197
3,3951,9531.8383,209
248540
1.0333,051
24,578
1.56))754
3,6583.9323,532
Sports aitd RecreationH.uman Resources(1.irntn. on reserve
anuniz off reserve I Hammonds Plains)Sc ial DevelopmentFisheries(.is Bar1 en1 crsh ipUomniuiiicationsEducation Liaison Officer\TFTSSccui it\
4,200
3.701)
17,1505.450
$ 1,098,034 $- $ 35,404) S 1.133,434 $ 82,938
42