Coquitlam Optical Network Corporation (QNet)
2013 Annual Report
--------------------------
Prepared by:
Rick Adams, General Manager QNet
March 19, 2014
File #: QN/4 Doc #: 1643764.v1
QNet 2013 Annual Report
Table of Contents
1. EXECUTIVE SUMMARY .............................................................................................. 3 2. FINAL TRIMESTER FINANCIAL REPORT - 2013.......................................................... 4 3. QNET 2014 BUDGET .................................................................................................. 6 4. 30 YEAR FINANCIAL PLAN UPDATE........................................................................... 7 5. CONCLUSION .............................................................................................................. 9 Appendix 1: QNet Cash Flow Summary 2013 to 2019................................................ 10 Appendix 2: Audited Financial Statements .................................................................. 11 File #: QN/4 Doc #: 1643764.v1 4/4/2013
Page 2 of 11
QNet 2013 Annual Report
1. EXECUTIVE SUMMARY
The 2013 fiscal year marks a significant milestone for QNet in terms of long term financial
sustainability and increased access to competitive telecom services in the community.
In 2013 QNet revenues grew to $375,129, an increase of 167% over last year, resulting in a
cash flow surplus of $75,756. Building on these recurring revenues and using
conservative future sales estimates, the company is forecasting complete repayment of
the City’s $4.95 million investment and approx. $2 million in interest charges by 2028, and
a long term profit of approx. $10.8 million at the end of 2037.
In terms of enabling competition, there are now eight telecom service providers operating
in the City, giving Coquitlam businesses and high-density residential consumers’ access to
a level of competition for telecom services almost unheard of in the rest of the country.
For example, high-density residential consumers now have access to broadband speeds of
up to one gigabit per second and residential triple play packages (i.e. Internet, TV and
telephone) are priced as low as $60 per month.
In terms of business attraction, two new data centre hosting companies (eSecure Data
and Arima Networks) started operating in Coquitlam in 2013. By leasing fibre directly
from QNet these companies have access to competitive offerings from the many telecom
service providers operating out of QNet’s co-location facilities (i.e. fibre-to-the-business).
Building on the success of this “fibre-to-the-business” leasing strategy, this year QNet will
place more sales effort on leasing fibre connections directly to Coquitlam businesses
rather than telecom service providers. Because there are a number of telecom companies
that do not lease fibre from QNet but only provide services at QNet co-location facilities,
the “fibre-to-the-business” strategy creates an opportunity for QNet to increase sales
while giving local businesses access to a broader range of telecom service offerings.
In the next month QNet will also be publishing its new website, the first upgrade of the
site since the start of operations in 2008. The new website will be targeted more towards
the community in order to market the benefits of QNet for local businesses and the
residents of connected high density residential complexes.
Finally, QNet continues to work with the City and regional partners to secure a fibre optic
connection to the Vancouver Internet Exchange (VANIX) at 555 West Hastings Street.
While the City would be the primary beneficiary of such a connection in terms of more
bandwidth and lower operating costs, a VANIX connection would reduce QNet customers’
reliance on other telecom service providers for connectivity to and from Coquitlam.
File #: QN/4 Doc #: 1643764.v1 4/4/2013
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QNet 2013 Annual Report
2. FINAL TRIMESTER FINANCIAL REPORT - 2013
As per the audited financial statements in Appendix 2, QNet’s 2013 financial results are as
follows:
Building Connections
Fibre Connected Buildings
Last Year
2013 Budget
Actual
Variance
31
35
Last Year
2013 Budget
Actual
$ 6,880
37,000
$ 76,200
12,000
$ 83,300
19,000
$ 7,100
7,000
74,400
88,800
144,000
22,248
(252,461)
9,758
(195,932)
89,280
144,000
28,349
11,200
(166,874)
480
0
28,349
1,442
29,058
$ 134,826
$ 208,255
$ 73,429
Actual
Variance
40
5
Revenue & Expenses
New Sales (recurring)
- Fibre Lease
- Rack Lease
Recurring Revenue
- Fibre Lease
- Rack Lease
- Power Recovery
One Time Revenue
Operating Costs
Total Operating
Variance
Capital Expenditures
Last Year
Cost of Sales
$ 640,451
2013 Budget
$
93,798
$ 121,515
$ (27,717)
22,076
10,000
deferred
10,984
22,076
(984)
Total Capital
$ 125,874
$ 132,499
$
(6,625)
Cash Flow +/-
$
$
$
66,804
One Time Capital Projects:
- Fibre Pull Johnson to Westwood Plateau
- Minor Equipment
8,952
75,756
Financing
Of the $5.1 million in available financing from the City, the total amount of principal
borrowed at the end of 2013 excluding interest and depreciation was $4,947,855 which is
unchanged from the previous year.
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QNet 2013 Annual Report
Reasons For Variance - Operating
New Sales (recurring) were higher than forecast as a result of several new leases being
activated in the first half of the year (i.e. new sales are typically forecast at ½ of the full
year value). Two additional equipment rack leases were realized in 2013 bringing the
total number of leased racks to fourteen which is 100% of available capacity.
Recurring Revenues for fibre leases were on target except for a minor surplus of $480.
Power recoveries for equipment rack rentals were collected for the first full year in 2013
and 36% of the revenue for power recoveries was returned to the City as a QNet operating
expense (64% of consumed power is returned to the City in the form of thermal energy).
One Time Revenue was higher than expected due to higher than expected new sales. The
increase in connection fees associated with new sales offset lower than forecast project
management fees from SD43 which were deferred in 2013.
Operating Costs were below budget primarily due to reduced time commitments from the
General Manager and Director of Operations for QNet which is a result of the completion
of the start-up phase of QNet.
Reasons For Variance - Capital
Cost of Sales were slightly higher than anticipated due to an increased number of new
building connections (i.e. 5 more than forecast).
Deferred Capital Projects includes the fibre pull on Johnson to David which was deferred
to 2014.
File #: QN/4 Doc #: 1643764.v1 4/4/2013
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QNet 2013 Annual Report
3. QNET 2014 BUDGET
The QNet 30 year financial plan has been updated with actual results through 2013 and
revised forecasts through to 2037.
Building Connections
2013 Budget
Fibre Connected Buildings
2013 Actual
35
2014 Budget
40
45
Revenue & Expenses
New Sales (recurring)
- Fibre Lease
- Rack Lease
Recurring Revenue
- Fibre Lease
- Rack Lease
- Power Recovery
One Time Revenue
Operating Costs
Revenue/Operating
2013 Budget
2013 Actual
2014 Budget
$ 76,200
12,000
$ 83,300
19,000
88,800
144,000
0
9,758
(195,932)
89,280
144,000
28,349
11,200
(166,874)
192,600
168,000
28,000
6,400
(181,226)
$ 134,826
$ 208,255
$ 236,274
2013 Actual
2014 Budget
$ 22,500
0
Capital Expenditures
2013 Budget
Cost of Sales
One Time Capital Projects
$
93,798
32,076*
Total Capital Costs
$ 125,874
$ 121,515
10,984
$ 119,252
32,628**
$ 132,499
$ 151,880
Projected Surplus in 2014:
*
$
84,394
Includes projects deferred over the course of the year
** One Time Capital Projects in 2014:
- Fibre Pull Johnson to Westwood Plateau
- Minor Equipment
Total 2014 One Time Capital
File #: QN/4 Doc #: 1643764.v1 4/4/2013
$
22,628
10,000
32,628
Page 6 of 11
QNet 2013 Annual Report
4. 30 YEAR FINANCIAL PLAN UPDATE
Having achieved positive cash flow status in 2013, QNet is projecting improved financial
metrics through 2037 including principal loan repayment starting in 2015, full loan
repayment by 2028, reduced loan interest costs, increased thirty year profit and no
additional financing over the $4.95 million received to date. A seven year cash flow
summary is attached in Appendix 1.
2014 Plan Updated Key Financial Metrics
First Year of Positive Cash Flow
Excluding Interest and Depreciation:
First Year of Payment of Principal Debt:
Last Year of Repayment of City Loan:
Total Principal Financing Required:
Total Cost of Financing (interest paid on loan):
Total 30 Year Net Profit:
Annual Net Profit in 2037:
Replacement Cost of 25-50 Year Assets:
2013
2014
2013
2017
2030
$4.95 mil
$2.8 mil
$8.8 mil
$1.25 mil
$4.3 mil
n/a
2015
2028
$4.95 mil
$2.04 mil
$10.8 mil
$1.3 mil
$4.3 mil
2014 Plan Cash Flow Chart
File #: QN/4 Doc #: 1643764.v1 4/4/2013
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QNet 2013 Annual Report
Updated 2014 Plan Adjustments
Building Connections are forecast to grow by five in 2014 for a total of forty-five
connected buildings. In order to minimize costs of sales, QNet will focus primarily on
connecting new developments this year.
New and Recurring Sales in 2014 are based on a forecast of two new wireless facility
leases currently in progress, four new building connection leases and two additional SD43
school sites. As indicated in the following chart, new sales estimates are being kept very
conservative at approx. five new leases per year (roughly tied to new development growth
in the City); however, new sales which are forecast at ½ of the annual value have a
cumulative effect on total recurring revenue.
Operating Cost forecast has been reduced by another $14,706 in 2014 following a
reduction of $58,888 in 2013. These reductions are a result of removing $25,000
previously allocated for a fibre lease to VANTX and reducing contractor/consulting fees
now that the initial five year start-up phase of the business plan is completed.
Capital Costs will be primarily driven by cost of sales for the remainder of the plan. The
cost of sales forecast for 2014, while primarily targeted at connecting new developments,
does include some funds for extending the fibre network to more businesses in Pacific
Reach Industrial Park.
File #: QN/4 Doc #: 1643764.v1 4/4/2013
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QNet 2013 Annual Report
Financing from the City is forecast to be $4.95 million in principal out of the $5.1 million
business plan estimate for the remainder of the plan. The first year of payment of loan
principal is forecast to be 2015 with the final loan payment forecast for 2028.
Total Net Profit is expected to be in the range of $10.8 million at the end of the thirty year
plan based on very conservative sales forecasts. Annual net profit in 2037 is expected to
be in the range of $1.3 million.
5. CONCLUSION
By securing $388,000 per year in recurring revenue at the end of 2013 and reducing
operating costs by $73,594 to date, QNet has made a major stride forward in terms of
long term financial sustainability. Using conservative sales forecasts, the recast 2014
financial plan predicts full repayment of the City’s investment in QNet by 2028 and
approx. $10.8 million in non-tax revenue generation by the end of 2037. As a result of
QNet, Coquitlam businesses and high-density residential consumers now have access to a
highly competitive telecom services sector, the only one of its kind in the entire country.
Rick Adams
General Manager, QNet
File #: QN/4 Doc #: 1643764.v1 4/4/2013
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QNet 2013 Annual Report
Appendix 1: QNet Cash Flow Summary 2013 to 2019
File #: QN/4 Doc #: 1643764.v1 4/4/2013
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QNet 2013 Annual Report
Appendix 2: Audited Financial Statements
File #: QN/4 Doc #: 1643764.v1 4/4/2013
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Financial Statements of
COQUITLAM OPTICAL NETWORK
CORPORATION (QNET)
Year ended December 31, 2013
ABCD
KPMG LLP
Chartered Accountants
Metrotower II
Suite 2400 - 4720 Kingsway
Burnaby BC V5H 4N2
Canada
Telephone (604) 527-3600
Fax
(604) 527-3636
Internet
www.kpmg.ca
INDEPENDENT AUDITORS' REPORT
To the Board of Directors of Coquitlam Optical Network Corporation (QNET)
We have audited the accompanying financial statements of Coquitlam Optical Network Corporation
(QNET), which comprise the statement of financial position as at December 31, 2013, the statements of
operations, changes in net debt and cash flows for the year then ended, and notes, comprising 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 public sector accounting standards, 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 an 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 our 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, we consider 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.
Opinion
In our opinion, the financial statements present fairly, in all material respects, the financial position of
Coquitlam Optical Network Corporation (QNET) as at December 31, 2013, and its results of operations
and the changes in its net debt and its cash flows for the year then ended in accordance with Canadian
public sector accounting standards.
Chartered Accountants
March 25, 2014
Burnaby, Canada
KPMG LLP is a Canadian limited liability partnership and a member firm of the KPMG network
of independent member firms affiliated with KPMG International Cooperative
(“KPMG International”), a Swiss entity.
KPMG Canada provides services to KPMG LLP.
COQUITLAM OPTICAL NETWORK CORPORATION (QNET)
Statement of Financial Position
December 31, 2013, with comparative information for 2012
2013
2012
Financial Assets
$
Cash
Accounts receivable
1,845
$
4,190
58,412
60,257
462,836
467,026
80,574
286,482
Due to City of Coquitlam (note 4)
5,119,697
5,200,271
5,338,194
5,624,676
Net debt
(5,140,014)
(5,157,650)
Tangible capital assets (note 3)
3,796,990
3,816,077
Prepaid expenses
4,841
3,801,831
4,687
3,820,764
Financial Liabilities
Accounts payable and accrued liabilities
Non-Financial Assets
$
Accumulated deficit
(1,338,183)
$
(1,336,886)
Accumulated deficit is comprised of:
$
Share capital
Accumulated deficit
I
$
(1,338,184)
$ (1,338,183)
Economic dependence (note 6)
See accompanying notes to financial statements.
Approved on behalf of the Board:
1
1
(1,336,887)
$
(1,336,886)
COQUITLAM OPTICAL NETWORK CORPORATION (QNET)
Statement of Operations
Year ended December 31, 2013, with comparative information for 2012
2013 Budget
(note 7)
Revenue:
Lease
Installation fees
Power cost recovery
Professional consulting fees
Service cost contracts
Interest
$
Expenses:
General and administrative
Service costs
Amortization
Interest (note 4)
195,932
195,932
Annual surplus (deficit)
134,826
$
335,580
11,200
28,349
375,129
166,874
132,966
76,586
376,426
2012
$
118,280
2,400
19,804
339,136
44
479,664
252,461
292,498
105,986
70,254
721,199
(1,297)
(241,535)
(1,336,887)
(1,336,887)
(1,095,352)
$ (1,202,061)
$ (1,338,184)
$ (1,336,887)
Accumulated deficit, beginning of year
Accumulated deficit, end of year
321,000
9,758
330,758
2013
See accompanying notes to financial statements.
2
COQUITLAM OPTICAL NETWORK CORPORATION (QNET)
Statement of Changes in Net Debt
Year ended December 31, 2013, with comparative information for 2012
2013 Budget
(note 7)
Annual surplus (deficit) for the year
$
134,826
Acquisition of tangible capital assets
Amortization of tangible capital assets
Decrease (increase) in prepaid expense
(125,874)
-
Change in net debt
Net debt, beginning of year
Net debt, end of year
8,952
2013
$
(1,297)
2012
$
(241,535)
(113,879)
132,966
(154)
(1,026,904)
105,986
145
17,636
(1,162,308)
(5,157,650)
(5,157,650)
(3,995,342)
$ (5,148,698)
$ (5,140,014)
$ (5,157,650)
See accompanying notes to financial statements.
3
COQUITLAM OPTICAL NETWORK CORPORATION (QNET)
Statement of Cash Flows
Year ended December 31, 2013, with comparative information for 2012
2013
2012
Cash provided by (used in):
Operations:
Annual deficit
Amortization of tangible capital assets, an item
not involving cash
Change in non-cash operating working capital balances:
Prepaid expenses
Accounts receivable
Accounts payable and accrued liabilities
Net change in cash from operating activities
$
(1,297)
$ (241,535)
132,966
105,986
(154)
404,424
(205,908)
330,031
145
(380,889)
226,571
(289,722)
Capital activities:
Cash used to acquire tangible capital assets
(113,879)
(1,026,904)
Financing activities:
Increase (decrease) in due to City of Coquitlam
(218,497)
1,300,970
Net change in cash
Cash, beginning of year
Cash, end of year
$
See accompanying notes to financial statements.
4
(2,345)
(15,656)
4,190
19,846
1,845
$
4,190
COQUITLAM OPTICAL NETWORK CORPORATION (QNET)
Notes to Financial Statements
Year ended December 31, 2013
1. Operations:
Coquitlam Optical Network Corporation (QNet) (the "Company") was incorporated on
November 12, 2008 under the British Columbia Business Corporations Act. The Company's
business involves providing open access to optical fibre networks. It is a wholly municipal-owned
subsidiary of the City of Coquitlam and operates its business within the City of Coquitlam
municipality boundaries. The Company is a local government corporation and is exempt from
income taxes.
2. Significant accounting policies:
These financial statements have been prepared by management in accordance with Canadian
public sector accounting standards:
(a) Revenue recognition:
The Company recognizes revenue when services are provided to customers, the price is
fixed or determinable, and collectability is reasonably assured.
(b) Non-financial assets:
Non-financial assets are not available to discharge existing liabilities and are held for use in
the provision of services. They are not intended for sale in the ordinary course of operations.
(i) Tangible capital assets:
Tangible capital assets have useful lives extending beyond the current year and are
recorded at cost, which includes amounts that are directly attributable to acquisition,
construction, development or betterment of the asset. The cost, less residual value of the
tangible capital assets, is amortized on a straight-line basis over their estimated useful
lives as follows:
Asset
Rate
Software
Data centre equipment
Building entrance - civil
Building entrance - fibre
Arterial fibre - civil
Arterial fibre - fibre
Leasehold improvements and leased equipment
5
8 years
5 - 25 years
85 years
25 years
85 years
25 years
over term of lease
COQUITLAM OPTICAL NETWORK CORPORATION (QNET)
Notes to Financial Statements (continued)
Year ended December 31, 2013
2. Significant accounting policies (continued):
(b) Non-financial assets (continued):
(i) Tangible capital assets (continued):
Any assets under construction are not amortized until the asset is available for productive
use.
Leases which transfer substantially all of the benefits and risks incidental to ownership of
property are accounted for as leased tangible capital assets. Amortization is provided
over the term of the lease.
(ii) Impairment of tangible capital assets:
Tangible capital assets are written down when conditions indicate that they no longer
contribute to the Company’s ability to provide goods and services, or when the value of
future economic benefits associated with the tangible capital assets are less than their
net book value. The net write-downs are accounted for as expenses in the statement of
operations.
(c) Use of estimates:
The preparation of financial statements requires management to make estimates and
assumptions that could affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and the reported
amounts of revenue and expenses during the reporting period. Significant areas requiring the
use of management estimates relate to the determination of allowance for doubtful accounts,
useful lives for amortization of tangible capital assets, and provisions for contingencies.
Actual results could differ from those estimates.
(d) Functional and object reporting:
The operations of the Company are comprised of a single function, optical fibre networks
operations. As a result, the expenses of the Company are presented by object in the
statement of operations.
6
COQUITLAM OPTICAL NETWORK CORPORATION (QNET)
Notes to Financial Statements (continued)
Year ended December 31, 2013
3. Tangible capital assets:
December 31, 2013
Cost:
Balance, beginning of year
Additions, net of transfers
Balance, end of year
Data centre
Software equipment
Building
entrance fibre
Building
entrance civil
Arterial
fibre-civil
Arterial
fibre-fibre
Leasehold
improvements
and leased
equipment
Assets
under
construction
$
$
$ 84,050
84,050
$ 923,196
10,678
933,874
$ 200,517
22,630
223,147
$ 264,885
3,571
268,456
$ 1,416,716
253,042
1,669,758
$ 56,776
14,567
71,343
48,766
10,231
58,997
142,178
67,264
209,442
16,433
8,334
24,767
7,182
3,119
10,301
33,500
17,832
51,332
7,310
2,854
10,164
$ 25,053
$ 724,432
$ 198,380
$ 258,155
$ 1,618,426
$ 61,179
$
884,657
Net book value, beginning of year $ 35,284
$ 781,018
$ 184,084
$ 257,703
$ 1,383,216
$ 49,466
$
907,989
Accumulated amortization:
Balance, beginning of year
Amortization expense
Balance, end of year
Net book value, end of year
7
932,876
932,876
24,887
23,332
48,219
Total
217,317 $ 4,096,333
(190,609)
113,879
26,708
4,210,212
-
280,256
132,966
413,222
$
26,708
$ 3,796,990
$
217,317
$ 3,816,077
COQUITLAM OPTICAL NETWORK CORPORATION (QNET)
Notes to Financial Statements (continued)
Year ended December 31, 2013
3. Tangible capital assets (continued):
December 31, 2012
Cost:
Balance, beginning of year
Additions, net of transfers
Balance, end of year
Data centre
Software equipment
Building
entrance fibre
Building
entrance civil
Arterial
Arterial
fibre-civil fibre-fibre
Leasehold
improvements
and leased
equipment
Assets
under
construction
$
$
$ 84,050
84,050
$ 533,683
389,513
923,196
$ 172,814
27,703
200,517
$ 260,553
4,332
264,885
$ 892,384
524,332
1,416,716
$ 55,413
1,363
56,776
38,535
10,231
48,766
93,135
49,043
142,178
9,704
6,729
16,433
4,101
3,081
7,182
22,178
11,322
33,500
5,062
2,248
7,310
$ 35,284
$ 781,018
$ 184,084
$ 257,703
$ 1,383,216
$ 49,466
$
907,989
Net book value, beginning of year $ 45,515
$ 440,548
$ 163,110
$ 256,452
$ 870,206
$ 50,351
$
931,321
Accumulated amortization:
Balance, beginning of year
Amortization expense
Balance, end of year
Net book value, end of year
There was no write-down of tangible capital assets during the year (2012 – nil).
8
932,876
932,876
Total
137,656
79,661
217,317
$ 3,069,429
1,026,904
4,096,333
-
174,270
105,986
280,256
$
217,317
$ 3,816,077
$
137,656
$ 2,895,159
1,555
23,332
24,887
COQUITLAM OPTICAL NETWORK CORPORATION (QNET)
Notes to Financial Statements (continued)
Year ended December 31, 2013
4. Due to City of Coquitlam:
The amount due to City of Coquitlam at December 31, 2013 of $5,119,697 (2012 - $5,338,194) is
related to funding for the purchase of tangible capital assets and funding for operating expenses
of the Company. These transactions are in the normal course of operations and are measured at
the exchange amount, which is the amount of consideration negotiated and agreed to by the
related parties.
During 2011, the Company entered into a lease agreement to lease leasehold improvements and
equipment from the City of Coquitlam until December 15, 2051. Included in the amount due to
City of Coquitlam is $932,876 (2012 - $932,876) for the use of leasehold improvements and
equipment for the term of the lease.
Amounts due to City of Coquitlam are unsecured, bear interest at 1.50% (2012 - 1.51%) and have
no set terms of repayment.
5. Related party transactions
During the year, certain employees of the City of Coquitlam performed administrative services for
the Company, including purchasing, accounting, clerical and other operational-type services. The
Company was not charged by the City of Coquitlam for these services for the year ended
December 31, 2013 (2012 - nil). Management costs and direct infrastructure services related to
the Company of $22,839 (2012 - $42,985) were charged from the City of Coquitlam and are
shown as expenses in the financial statements.
6. Economic dependence:
The Company’s operations are currently partially funded by the City of Coquitlam and
accordingly, future operations of the Company are dependent upon the continued financial
support of the City of Coquitlam for the foreseeable future.
9
COQUITLAM OPTICAL NETWORK CORPORATION (QNET)
Notes to Financial Statements (continued)
Year ended December 31, 2013
7. Budget data:
The budget data presented in these financial statements is based upon the 2013 budget
approved by the Board of Directors on April 4, 2013. Amortization was not contemplated on
development of the budget and, as such, has not been included. The chart below reconciles the
approved budget figures reported in these financial statements.
Revenue:
Operating budget
$
Expenses:
Operating budget
330,758
321,806
Annual surplus per approved budget
8,952
Add items included in expenses above and tangible capital
assets on the statement of financial position
Annual deficit per statement of operations
125,874
$
10
134,826