4

PALAC,,E T H E A T R E 1 Theatre Restoration Advisory Committee

Bill Brady

Penny & Mike Eizenga

Don Fleckser

Glenda Pennington

Rick Verrette

Board of Directors

Maryse Leitch President

April Chappell Past President

Marion Sloan Secretary

Lindsay Ellis Treasurer

David Long

Bill McKenzie

Sue Perkins

Gordon Saylor

Harry Steele

Barry Tepperman

Connie Weir

Campaign Manager

Lisa Di.Y@o 519.754.1803

Idiveto@sympatico .ca

710 Dundas Street London, Ontario

N5W 224

Development Office:, 519.432.5573

Charitable Number: 11902 3653RROOOi

Ms. Lisa Karlovcec Coordinator, Corporate Financial ~~OITX~OFREFERREQ TO:

300 Dufferin Avenue w PO Box 5035 London, Ontario N6A 4L9

Finamcia! Blaming & B>rpiicy

City of London SUBSEQUENT REFERRALS

JAN 0 3 2007

January 2,2007

Dear Lisa,

It's my pleasure to submit this update regarding London Community Player's previous capital request for $150,000 in 2007 City of London funding.

LCP is extremely grateful for the City's $50,000 grant in April 2006. Includjng the City's support, pledges to date now total $283,294. In addition, a proposal for $300,000 in Cultural Spaces Canada support is under review and an application for capital funding will be submitted to the Ontario Trilljum Foundation in July 2007.

An updated campaign budget and recent donor list are included for your reference.

If the City of London were to accept our 2007 request for $150,000 and our 2008 request for $50,000 was granted, confirmed funding would be $500,000 - half our goal, independent of any future gifts we will receive.

With respect to the assignment of the City of London's 2006 contribution of $50,000, funds were used towards one of the restoration's most pressing issues - replacement of the antiquated boiler that had caused extensive smoke and water damage to the building.

If,?W€@& QW 2 funding .?.,.<< ..,.., proposal would be allocated towards roof replacement and auditonum restoration costs. Should the City require flexibility &$&ti& *s request, LCP is opep to adj@g its schedule and / or applying a?&abl&"ty. &In$ to otbeLrinovatk& pAorIties & ," necessary. . .

.!!,W: . ,

I thought it might also%e.U$efd to ~&&jf6 f ikogp~gre~~ we have made in strengthening our organization's fh&clid stability. &."&oted. @ LCP's 2007- 2009 Business Plan, LCP has initiated many dew strategies desig6ed to improve its financial position.

, . , . , .,.\, . .. . ..

Some of the financial strategies implemented to date are outlined below:

Corporate and media sponsors recruited to date have generated annual fees of nearly $10,000 ffom the Libro Financial Group, A Channel and Yellow Pages Group.

Establish an annual multi-level sponsorship program

Confirmed 2006-07 rental revenue is 20 % higher than the prior year. Plans to bring more London arts organizations into the Palace Theatre are in development with preliminary discussions with London Fringe Theatre Festival, London International Children’s Festival and Original Kids Theatre pending. In addition, new box office service charges are expected to generate $2,500 annually.

Expand building, auditorium and rehearsal space rental

W O Theatre Management and Fanshwe College student placements have been scheduled to address LCP’s marketing and promotional requirements.

The Eye-Go to the Arts secondary school ticket program will be initiated to attmt younger patrons.

An application for Services Canada funding has been submitted for operating wages.

Increase subscription and ticket sales through new marketing initiatives

Increase the current level of corporate, government and foundation support for select programs

Cash operating donations have increased by 30% over the previou fm&atkw . , . . . grant,was,rec&wLin* guppqt of pur Youth Sumfner

. . . . ... ...,, , . . , . . . . , .

Introduce a new fundraising.pragram

The organization is launching a.proven gift certificate purchasing program with major city retailers that is of $10,000 per year through member

.. ... .. . . . . . . . . PHcia%g9ttr ~

~. . .. .

LCP is also strengthening its role as a Cornerstone for Old East Village revitalization with recent support of the neighbourhood Fire and Frost Festival and participation in the OEV BIA tree planting program with Reforest London.

In summary, we are deeply indebted to the City of London for the confidence it has placed in us as we continue to demonstsate significant progress in improving our operations. As mentioned, 2005-06 financial statements showing net revenue of $66,552 are included with this mailing.

Once again Lisa, please let me know if I may provide further information to assist you in understanding any area of our project. Thank you so much for your ongoing assistance and consideration.

Most sincerely,

Maryse Leitch President

Notes: Palace Theatre Restoration Project

Revenue to date

$283,294 has been pledged to the project since January 2006, with more than $200,000 banked to date. Revenue highlights are as follows:

Foundation support has been strong, with ten local organizations granting over $100,000 in total.

Individual and major gifts are approachhg $80,000 with the majority of gifts are at our highest level of $1,000.

A request for $300,000 in Cultural Spaces Canada federal funding has been submitted and is under review.

Approaches to service clubs, organizations and associations have realized $16,500 to date.

Expenditures

About $70,000 has been applied to building renovations to date, with the City’s grant of $50,000 allocated to boiler replacement of $64,000. Auditorium fire doors have been installed and restoration to the front entrance has commenced. Roof repairs have been scheduled.

Notes: London Community Player’s Operations

A business plan was developed to improve London Community Player’s financial operations. 2005-06 financial results realized $66,552 in net proceeds, a significant turnaround ffom the prior year deficit of $20,541. Benefits are.expected to continue as the plan is fully implemented. Notes specific to the organization’s operations are provided below.

Depreciation

The Palace Theatre is a 15,000 square foot facility with an asset value of over one million dollars. This results in annual depreciation of nearly $30,000.00.

Utilities

The theatre’s annual costs for heat, gas, hydro and water are in excess of $40,000. This expense is expected to decrease as the building’s outdated €WAC system is replaced with funding from the Restoration Project.

Mortgage

The theatre’s annual mortgage payments total nearly $30,000. The current mortgage will be paid in full in April 2008.

Box Ofice

LCP recently purchased a box office ticket system and eliminated hundreds of dollars in external ticketing fees each year. LCP now prints and distributes its own tickets and offers this service to organizations that use the Palace. Annual revenue of $2,500 is projected from this initiative.

Cash Flow

An operating line of credit has been secured for $100,000.

Artistic Adviso?y Committee (Paul Eck Bill Meaden, Gianina Lamont)

An Artistic Advisory Committee comprised of individuals with extensive theatre expertise has been established to select LCP’s season and to ensure that production quality and costs are maintained. This development is expected to have a positive impact on ticket and subscription sales.

Marketing and Advertising (Harry Steele)

An experienced London businessman has been enlisted to lead the Marketing and Public Relations Committee. The group is aggressively seeking sponsorship and advertising revenue and implementing innovative strategies to increase ticket sales.

Financial Management (Lindsay Ellis, CA)

A Senior Associate with PriceWaterhouseCoopers has been enlisted to serve as the organization’s volunteer treasurer.

Board ofDirectors New Recruits @ill McKenzie, Gordon Saylor, Bany Teppeman)

Three new board positions have been created and candidates recruited with responsibility for volunteers, community outreach, education, workshops and rentals.

Palace Theatre Restoration Project Budget

REVENUE

as of January 2,2007

Per cent Campaign 2006 2007 2008 of goal Donations

GOAL & Pledges to date

Federal Government

Foundations

I I I I I I I I 50,000 1 1 50,0001 150,000/ 50,000

I I I I I I I

150,000 15% Under review 50,000 50,000 50,000

200,000 20% I 108.184 1 100,000 50,000 50,000 -

I I I -

Individuals

Major Gifts

~~~~

50,000 5.0% 15,260 7 17,000 17,000 . 16,000

100,000 10.0% 62,750 40,000 35,000 25,000 -

~~

Project Manager 100,000 30,000 35,000 35,000 8, Taxes

I I I 25,000 2.5% 16,500 1 15,0001 5,0001 5,000

1 Restoration & 900,000 Renovations

I

250,000 400,000 250,000

P A L A C E T H E A T R E Thank you to our donors!

The Richard & Beryl lvey Fund

The Ontario Trillium Foundation a fund within London Community Foundation

City of London London Life

Agape Foundation J.P. Bickell Foundation Walter J. Blackburn Foundation Farhi Holdings Corporation

Jack & Barbara Hay Foundation Patrick Hodgson Family Foundation Charles H. lvey Foundation Kellogg Canada

London Endowment Heritage Fund George Lunan Foundation

Benjamin Moore & Co. Ltd. Musical Theatre Productions McBurney Fund a fund within London Community Foundation

Plunkett Foundation Western Fair Association

Peter Agnew Evelyn Bastow Willnah Bennett Pamela Cameron April Chappell Sandra Colbert Patrick Delmore Lisa Di Veto

W.R. Duffield Penny Eizenga John Charles Fooks Charlotte Forberg

Heerema Patricia Hull Pat Humphrey Jim & Nancy Hutchinson Dee Dee lngram George Jolink Donna Kraft & Doug Kingston

Maryse Leitch David Long Peter & Leslie Luscombe Vern Marson Gwen McBurney Ron & Ann McClatchie Lorraine McCleland

Angus & Jean McKenzie Dorothy & Alex McPhedran Bill & Marilyn Meaden Eleanor Miller Vicki Olds Jim Payne Dave & Sue Perkins Jeffrey Phillips

Edwin Procunier Margaret & Mike Ryan Ken Sadler Victoria Sandin Gordon Saylor Jack & Carolyn Scott Douglas & Marjorie Soper Richard Verrette Dr. Bill Watson Mark Wilton Lucy Williams

In Memory of Audrey & Bert Cranmer; In Memory of Lloyd Fleming LCP Supporters $500.00 - $1000.00

Elizabeth Black E. Jean Comfort Anne & Ben Cozens William E. Davies Norah Harding Sue Hillis Doris Jarmain June E. Klassen Lac-Mac Limited

LCP Patrons $7,000 or more

Mike & Mary Ann Gibbons Heather & Richard Greenfield Dr. & Mrs.

James & Marion Murphy Louise & Bob Slater Pat & Harry Steele Connie & Doug Weir Pauline Wimbush

LCP Contributors Up to $500.00

Margaret Anderson Jacqueline Auger Don Bernachi Thomas Bogad Shelley Bradford Art Cartier Barbara Chambers Don Collyer Carol Cott Jean Cumming Floyd & Ruth Denning Peter & Mary

Downs Betty Duffield Dan Ebbs Paul Eck Katheleen Ellis Ann Finch Les & Edna Gee Grace Heaman Kathleen Heenan Meg Holmes Marion Kehoe Patricia Koenig Pauline Lazenby

Bill &Jean Lightfoot John Maycock Colleen OBrien Gordon Pammett Moira Sansom Ken & Dorothy Sample Walker & Nancy Schofield Cliff & Eileen Sims Marion Sloan

Sarah Smith Grant &Anne Stephenson Pearl Storey Marion Struss Jacqueline Vandale Lloyd Walker Joyce Watkinson Amelia Wehlau Dorothy Wilson Henry Szot

In Memory of Jack & Janet Legg

The Palace Theatre Restoration Project

The London Community Players hosted a segment O f the Fire and Frost Feslivsl, put on by invesling In Children and the

Old Eest Village BIA. at the Palace Theetre. On November 25. 2006. artwork from various

East Landon youth war displayed for the public to view.

Left to Right: God Hume, Clark Bryan. Maryse Leltch

Pretentious meshe presented their 2005 London Frlnge Festival award winning Phl: The Wginal Mock Musicalwith four shows on

and yo& which attended the two 1 weekday matinees.

1 The Palace meelre entrance (left) shawing the now re do- original design,

Danny Lang and Gary MoRae. a97da)s h e Wsstsm FairAsmclaflon. present LCPs Davld Long. Maryoe Lsitch and Hany stsele with B cheque fm 515,oOO as

a parl of their mmmunity revitalization suppofl.

ffln@sh.r osys was our fun- ov ng memory p By which p eyed from September 15 - 24.2006 A to Rig"? 6.1 Meaden EYB 0lah.L Thomas

Bogsd. Nora C.uocrea. Pnsy Mngan

wed 1956 additions and the shipped 'ht).

ShoWCaSe celebrity cars featured at Steve PimkeWs Fleshwood C o u n f ~ Cruize-in on June 10.2006. Neady $4000 was raised for

the organization from this went. I

Recent developments In the theatre restoralion include the addition of dmndelies fmm Um MpiM Tblm (let?), h installab'on ofs new bdler (m),

and the planting of trees donated by the Old East Village BIA(rlght).

Musical Jhhssfre Productions (formerly London Musical Jheatre) has become one of the latest tenants at the Palace Theam, shaang their

production of Gllbed 6 Sufihn's KMS. Plmfore from November 21 to December 2.2006.

Our Youth Thestre Programme was once again in full swing this summer. Session 1 and Session 2 ran for 2 weeks m h and were tremendwsly su-fui at

introducing the experience of theatre.

The Msliebe Minstrels perform outside the Paiace Theme at the December 9.2006

dramatic '8ading of Charles Dickem' A Christmas CaMI.

I h e Cad and Crew of Ethan Clamore, a Norm Fmter holiday classic. ran fmm November 3 - 12,2006.

LONDON COMMUNITY PLAYERS

FINANCIAL STATEM E NTS (unaudited - see Review Engagement Report)

MAY 31,2006

I

LONDON COMMUNITY PLAYERS

INDEX

MAY 31,2006

Page

INDEX

REVIEW ENGAGEMENT REPORT

STATEMENT OF FINANCIAL POSITION

STATEMENT OF SURPLUS

STATEMENT OF COMBINED REVENUE AND EXPENDITURki

SCHEDULE OF EXPENDITURES

STATEMENT OF REVENUE AND EXPENDITURES - RESTORATION PROJECT

STATEMENT OF CASH FLOWS

NOTES TO FINANCIAL STATEMENTS

5

6

7 - 10

I

JOHNSTON BENSON I N K S T E R b I B R I G H T O N

L.lan Johnston,CA.CFP,FMA.TEP Peter I.M. Eenson.CA,CFP,CPA (Illinois) George W. Inkster, CA. CFP John R.G.Erighton.CA,CFP

C HART E RED A C C 0 U N TA N TS

REVIEW ENGAGEMENT REPORT

To the Members of London Community Players

We have reviewed the statement of financial position of London Community Players as at May 31, 2006 and the statements of surplus, combined revenue and expenditures, revenue and expenditures - restoration project and cash flows for the year then ended. Our review was made in accordance with Canadian generally accepted standards for review engagements and accordingly consisted primarily of enquiry, analytical procedures and discussion related to information supplied to us by the organization.

A review does not constitute an audit and consequently we do not express an audit opinion on these financial statements.

Based on our review, nothing has come to our attention that causes us to believe that these financial statements are not, in all rnaterial'respects, in accordance with Canadian generally accepted accounting principles.

London, Ontario July 31,2006 Chartered Accountants U

665 Maitland Street London,Ontario N N 2 V 7 (519) 433-4055 FAX (519) 433-7915 info@jbib.on.ca

..... ~.,. ~ . ...... . ~ .. . . ~~ ~ ~ .~ .. , . ,...

LONDON COMMUNITY PLAYERS (Incorporated under the laws of Ontario without Share Capital) STATEMENT OF FINANCIAL POSITION

A S AT MAY 31 2006 2005 (unaudited - see Review Engagement Report) ($)

ASSETS Current Assets Cash

Operations 51,554 20,271 Restricted - Restoration Project (note 2) 57,743 16,867

109,297 37,138

Operations 8,054 17,022 Restricted - Restoration Project (note 2) 50.000

58.054 17.022

Prepaid expenses 4.887 2,174 172,238 56,334

Capital Assets (note 4) 885,459 887,702

7.057.697 944.036

Accounts receivable (note 3)

LIABILITIES AND SURPLUS Current Liabilities

Bank indebtedness (note 5) 72,397 Accounts payable and'accrued expenses 16,734 23,191 Current portion of mortgage payable 25,785 23,955

114,916 47,146

Deferred revenue (note 6) Operations 30,525 20,202 Restricted - Restoration Project (note 2) 11,665 16,867

42.1.90 37.069

31 4,212 168,430

Mortgage Payable (note 7) 27,381 53.1 63

184.487 137.378

Surplus Operating Restricted - Restoration Project (note 2)

777,132 806,658

873,210 806,658

1.057.697 944.036

96,078

see accompanying notes Approved on behalf of the Board,

, Director

, Director

1

I

LONDON COMMUNITY PLAYERS STATEMENT OF SURPLUS

YEAR ENDED MAY 31 2006 2005 (unaudited - see Review Engagement Report) 6) ($1

Opening Surplus

~ ~~

806,658 827,199

(29,526) (20,541) Excess Expenditures Over Revenue - Operations

Excess Revenue Over Expenditures - Restoration Project 96.078

Closing Surplus 873.21 0 806,658

Consists of: Operations Restricted - Restoration Project (note 2)

777,132 806,658

873.210 806,658 96,078

see accompanying notes

2

I

LONDON COMMUNITY PLAYERS STATEMENT OF COMBINED REVENUE AND EXPENDITURES

YEAR ENDED MAY 31 2006

Revenue from Operations

($1 2005

(unaudited - see Review Engagement Report) ($)

Productions 82,954 92:812 Operating Grants (note 8) 26,126 48,755

Donations 14,814 19,060 Rental income - theatre 11,604 9,510

Subscriptions received in advance - Youth Theatre

Memberships 5,321 4,084 Fund raising - other 3,032 662 Social and concessions, net of expenses 2,386 2,982

Subscriptions received in advance - general 24,325 20,202

Fund raising - bingo, net of expenses 8,703 8,506

Sponsorship and miscellaneous 6,097 900 6,200

Workshops 1,575 1,455 Program advertising and gift certificate 7,126 437 Interest 434 674

194,697 210,039 Deferred to subsequent year (note 6)

Expenditures from Operations Building - operating (schedule) Human Resources Development Canada (schedule) Amortization - Building (note 1 h) Publicity (schedule) Administration (schedule) Productions (schedule) Other (schedule) Mortgage and loan interest Amortization - Equipment Workshops Youth theatre Equipment repairs and service

Excess of Expenditures over Revenue - Operations

Excess of Revenue over Expenditures - Restoration Project (note 2 and Statement)

30.525 20,202 164,172 189,837

56,323 37,810 28,125 27,467 15,022 14,027 3,821 4,901 2,518 2,050 1,194

440 193.698

(29,526)

64,994 36,797 27,456 25,786 10,315 19,360 10,222 6,601 1,962 1,844 4,284

757 210,378

(20,541)

96,078

Combined Excess Revenue Over Expenditures (Expenditures Over Revenue) 66,552 (20,541)

see accompanying notes

3

I

. . . , . ~~ ~. . ~.~ ,. .. ... ~~ . . ..., . .. . ~ . . .~ . ,~ .

LONDON COMMUNITY PLAYERS SCHEDULE OF EXPENDITURES

YEAR ENDED MAY 31 2006 2005 (unaudited - see Review Engagement Report) ($) ($)

Building - Operating Utilities Repairs Insurance Custodial

Human Resources Development Canada Wages and benefits Materials and supplies

Publicity Advertising Programs Box Off ice Subscriptions - brochure Subscriptions - postage

Administration Bank charges Office supplies, postage Telephone and internet Professional fees Association dues

Productions Production costs and set construction Royalties Lighting and sound Scripts Professional services

Other Newsletter Special events and fund-raising Archives and consulting fees

42,415 38,980 6,973 19,685 6,414 5,665

521 664

56.323

35,027 2,783

37,810

16,412 4,813 3,272 2,534

436

27,467

4,648 3,499 3,176 2,892

807

15,022

5,668 5,608 2,421

330

64,994

32,572 4,225

36.797

17,667 3,229 2,829 1,912

149

25,786

2,630 633

2,637 3,871

544

10.315

11,295 3,323 3,686

856 200

14,027 19.360

2,263 2,754 1,496 7,253

62 21 5

3,821 10.222

see accompanying notes

4

I

LONDON COMMUNITY PLAYERS

RESTORATION PROJECT (note 2) STATEMENT OF REVENUE AND EXPENDITURES -

(unaudited - see Review Engagement Report) (8 ($) YEAR ENDED MAY 31 2006 2005

Restoration Project Revenue Donations - Capital Campaign Ontario Trillium Foundation Grant Ontario Trillium Grant - deferral from previous year City of London Grant

Deferred to subsequent year (note 6)

Restoration Project Expenditures Capital Campaign Ontario Trillium Foundation Expenditures

Less assets capitalized on Statement of Financial Position

Excess Revenue over Expenditures

106,522 60,000 31.000 16,867 50,000 233,389 31,000 1 1 -665 16,867

221,724 14,133

87,177 65.202 14,133 152,379 14,133 26,733 125,646 14.133

96,078

see accompanying notes

5

I

LONDON COMMUNITY PLAYERS STATEMENT OF CASH FLOWS

YEAR ENDED MAY 31 2006 ($) 2005

(unaudited -see Review Engagement Report) (8

Cash Flows Provided By (Used In): Operating Activities:

Combined Excess Revenue over Expenditures (Expenditures over Revenue)

Items not involving cash Amortization

Net Change in Non-Gash Operational Balances Accounts receivable Prepaid expenses Accounts payable and accrued expenses Deferred revenue

Financing Activities: Repayment of mortgage

investing Activities: Acquisition of capital assets

Change in Cash Resources

Opening Cash Resources

Closing Cash Resources

Cash Resources Cash - Operating Cash - Restricted - Restoration Project Bank indebtedness

66,552 (20,541)

30,643 29,418 97.1 95 8.877

(41,031) (1 0,303) (2,713) 2,753 (6,456) 16,437 5,121 27.274

(45,079) 36.161 52.116 45.038

(23.953) (22,253)

128,401) (1,354)

(238) 21,431

37.138 15.707

36,900 37.1 38

51,554 20,271

(72.397) 57,743 I 6,867

36,900 37.138

see accompanying notes

6

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LONDON COMMUNITY PLAYERS NOTES TO THE FINANCIAL STATEMENTS (unaudited -see Review Engagement Report) YEAR ENDED MAY 31.2006

1 . Accounting Policies The organization follows accounting principles generally accepted in Canada in preparing its financial statements. The significant accounting policies used are as follows:

(a) Accrual Basis of Accounting These financial statements have been prepared in accordance with the accrual basis of accounting. Under this method of accounting, all revenue is recorded when it is received or when a contractual agreement is entered into to receive funds in the future. All expenditures are recorded when costs are incurred.

(b) Deferred Production Costs Expenditures relating to future productions are reflected on the statement of financial position as prepaid expenses.

(c) Capital Assets Capital assets are stated at cost. Amortization is provided, on the straight-line basis, for equipment at the annual rate of 20%, computer at the annual rate of 33% and for the building at the annual rate of 2.5%.

(d) Revenue Recognition Donations of a nonmonetary nature are recorded at the fair market value of the asset or service at the time received. Pledges for.donations are recorded as revenue when the funds are received. Contributions to the Restoration Project (note 2) are recognized as revenue when received or receivable.

(e) Contributed Services Volunteers contribute their time to the organization to assist London Community Players in carrying out its activities. As there is difficulty in determining the fair value of contributed services, they are not recognized in the financial statements.

(f) Deferred Revenue Revenue received relating to unspent operating grants, subscriptions and Trillium Foundation grants to be.used for specified future expenditures is reflected on the statement of financial position as deferred revenue.

(g) Income Taxes London Community Players is a registered charitable organization and, as such, is not liable to pay income taxes.

(h) Change In Accounting Policy In compliance with the Canadian Institute of Chartered Accountants' pronouncement, all capital assets have been amortized from the 1997 fiscal year forward. The 1997 opening surplus account was restated to reflect this change applied retroactively. The effect was an increase in prior years' accumulated amortization of. the building of $127,984 and a decrease in the surplus account of the same amount.

7

LONDON COMMUNITY PLAYERS NOTES TO THE FINANCIAL STATEMENTS (unaudited - see Review Engagement Report) YEAR ENDED MAY 31,2006

2. Restoration Project During the 2005 fiscal year, funds were received from the Trillium Foundation and partially spent preparing for a capital campaign. Unspent funds were deffered to 2006 at which time the organization launched a campaign to fund restorations to the building. The funds received and unspent and receivable at May 31, 2006 have been reflected as Restricted Cash, Accounts Receivable, Deferred Revenue and Surplus in the Statement of Financial Position. The Statement of Revenue and Expenditures - Restoration Project reports the total project revenue and expenditures for the year ended May 31, 2006.

3. Accounts Receivable Accounts receivable, which are expected to be received within the next twelve months, consist of the following:

2006 2005 A&

Canada Revenue Agency, GST Recoverable Human Resources Development Canada, Operating Grant Theatre Rental Miscellaneous

City of London, Capital Grant - Restoration Project

5,999 2,202 2,055 3,171

7,973 3,676

8,054 17,022

50.000

58,054 17.022

4. Capital Assets

Land Building (note 1 h) Building- Cooling System Lighting Equipment Other Equipment Computer Hardware

2006 2005 Accumulated ($1 f$)

cost Amortization Net Net

11 0,000 11 0,000 11 0,000 1,124,992 397,928 727,064 728,456

60,429 13,597 46,832 48,343 24,752 24,752 59,059 59,059 3,022 1,459 1.563 903

1.382.254 496,795 885.459 887.702

8

I

LONDON COMMUNITY PLAYERS NOTES TO THE FINANCIAL STATEMENTS (unaudited - see Review Engagement Report) YEAR ENDED MAY 31,2006

5. Bank Indebtedness Bank indebtedness consists of the following: 2006 2005

&O

Line of Credit, bearing interest at prime rate plus 1% 72.397

The operating line of credit is secured by a general security agreement. The limit is set at $100,000

6. Deferred Revenue

Operating Subscriptions received in advance Youth Theatre program

Restoration Project (note 2)

2006 2005 A0

24,325 20,202

30,525 20,202

11,665 16,867

42.1 90 37,069

6.200

7. Mortgage Payable 2006 2005 &A

7.50% St. Willibrord Credit Union 1 st Commercial Mortgage repayable at $2,404 per month including interest, due April 28, 2008, with a 10% annual paydown option, secured by the building at 708, 710 & 712 Dundas Street, London, Ontario and commercial mortgage assignment of rents. The maximum mortgage available is $240;000, of. which $120,000 was advanced in 2003. 53,166 77,118

Less current portion of mortgage payable 25.785 23.955

27.381 53.1 63

Principal repayments in the next two fiscal years are as follows:

2007 2008

0 25.785 27;381

9

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LONDON COMMUNITY PLAYERS NOTES TO THE FINANCIAL STATEMENTS (unaudited - see Review Engagement Report) YEAR ENDED MAY 31.2006

8. Operating Grants 2006 2005 ($3 ($\

Human Resources Development Canada for Job Creation 18,426 36,805 City of London - operating support 7,000 7,000 Youth Theatre 700 4,950

' 26,126 48,755

9. Exemption from Property Taxes As a charitable organization, London Community Players is exempt from municipal property taxes as of January, 1998.

10. Comparative Figures Certain of the prior year's figures, presented for comparative purposes, have been restated to conform to the financial statement presentation adopted in the current year.

10

I

$19 672 7950 WWWAEOLIANHALLW79S DUNDAS SI: E LONDON ON NSW2Zb

The Aeolian Performing Arts Centre/ Clark Bryan, supports the Palace TheatreLCP in their application for funding from the City of London.

The Palace TheatreLCP adds a rich cultural experience to the artistic tapestry of London. This organization,s activities also help to further the revitalization efforts in East London.

As a member of The Creative Cities Task Force, and a Board member of The Old East Village BIA, I believe it is important that City Council invests in ow cultural capital. The Creative Cities process proved the value of such investments. It is now time to implement the findings of the Creative Cities Task Force and continue to support our cultural organizations.

Sincerely. 1’ /p Clark Brvan. Aeolian Performing A r t s &atre.