Financial Report and Consolidated Financial Statements Finance Archived Documents/Final Copy... ·...

Financial Report and Consolidated Financial Statements

For the year ended December 31, 2014

Prepared by Corporate Services Department,

City of Brantford

Brantford, Ontario

Financial Report and Consolidated Financial Statements

For the Year Ended December 31, 2014

The Corporation of the City of Brantford

Brantford, Ontario, Canada

Prepared by Corporate Services Department,

City of Brantford

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Table of Contents

INTRODUCTION .......................................................................................................................

Welcome to Brantford............................................................................................................................................. 5

Members of Council ................................................................................................................................................ 6

Corporate Organizational Chart .............................................................................................................................. 7

Message from the City Treasurer, Director of Finance ........................................................................................... 8

FINANCIAL SECTION

CITY OF BRANTFORD CONSOLIDATED FINANCIAL STATEMENTS

Management Report ............................................................................................................................................ 25

Independent Auditors’ Report ............................................................................................................................. 26

Consolidated Statement of Financial Position ..................................................................................................... 27

Consolidated Statement of Operations ............................................................................................................... 28

Consolidated Statement of Changes in Net Financial Assets ............................................................................... 29

Consolidated Statement of Cash Flows ................................................................................................................ 30

Notes to the Consolidated Financial Statements ................................................................................................. 31

Schedule of Tangible Capital Assets ..................................................................................................................... 52

Schedule of Segmented Information ................................................................................................................... 53

CITY OF BRANTFORD TRUST FUNDS FINANCIAL STATEMENTS ......................................................................56

BRANTFORD PUBLIC LIBRARY FINANCIAL STATEMENTS ................................................................................62

BRANTFORD MUNICIPAL NON-PROFIT HOUSING CORPORATION FINANCIAL STATEMENTS ...........................76

JOHN NOBLE HOME FINANCIAL STATEMENTS ..............................................................................................89

BRANT COUNTY HEALTH UNIT FINANCIAL STATEMENTS ............................................................................. 102

BRANTFORD DOWNTOWN BUSINESS IMPROVEMENT AREA FINANCIAL STATEMENTS ................................. 127

STATISTICAL INFORMATION .....................................................................................................

Five-Year Financial Review ................................................................................................................................. 135

INTRODUCTION


• Police • Fire & Rescue • Affordable Housing • Ontario Works • Child Care

Situated on the picturesque Grand River, the City of Brantford is located in the heart of Southern Ontario. Brantford is known as The Telephone City, as it was here in 1874 where Alexander Graham Bell first conceived the idea for the telephone. Brantford is also hometown to hockey's greatest legend, Wayne Gretzky. Walter Gretzky, Canada’s most famous hockey Dad, still calls our City home. Today, Brantford is a vibrant community with its central location making it an ideal place to live, work, play and visit.

Welcome to Brantford

Location Strategically centred in the largest industrial corridor of the free world, and ideally situated 55 miles southwest of Toronto and less than 90 minutes from Buffalo, N.Y., Brantford offers manufacturers, distributors and service companies the best of both worlds. Brantford is directly connected to Trans-Canada Highway #401 immediately to the west, and the Queen Elizabeth Way to the East by Highway 403.

• Population: 97,499 • Growth rate 2006-2011: 3.8%

Employment Brantford has a local workforce of over 74,000 and over 800,000 within a 30-minute commuter shed. Brantford’s top business employers include:

• Ferrero Canada Ltd. • OLG Brantford Casino • S.C Johnson and Son Ltd. • NCO Financial Services • Western Waffles

Higher Education

The City of Brantford is proud to be home to three post-secondary institutions. • Laurier Brantford • Conestoga College • Nipissing University

Population Essential Services • Water & Waste Water • Waste Management • Transportation

Services • Public Transit

Mayor – Chris Friel

Ward 1 Larry Kings

Ward 1 Rick Weaver

Ward 2 John Sless

Ward 3 Dan McCreary

Ward 3 Greg Martin

Ward 4 Richard Carpenter

Ward 4 Cheryl Antoski

Ward 5 David Neumann

Ward 5 Brian Van Tilborg

Members Of Council 2014-2018 Brantford’s City Council is comprised of the Mayor and ten City Councillors (two from each of the City’s five Wards.)

Ward 2 John Utley

Corporate Organizational Chart

Public Works Community Services

Chief Administrative Officer

Corporate Services

Geoff Rae

Public Health, Safety & Social

Services

Corporate Policy & Management Practices

Corporate Communications Corporate Customer Service

Accounting Budgets & Financial

Analysis City Clerk's Office Customer Service - Water Human Resources IT Services Legal and Real Estate Provincial Offenses Office Purchasing Tax Office

Brantford Cultural Network

Brownfields Building Business Resource Centre Current Planning Services Development Approvals Downtown Revitalization Economic Development

and Tourism Golf Operations Growth Management Heritage Parks Services Recreation Services Policy Planning, Heritage

& Special Projects Property Standards By-law Enforcement Sanderson Centre

Ontario Works Housing Services Child Care Services Brantford Fire

Department Brantford Police Services Brantford Public Library John Noble Home

Brantford Farmers’ Market

Brantford Municipal Airport

Design and Construction Engineering Environmental Services Fleet Parking Facilities and Asset

Management Operational Services Transit Transportation Services

Greg Dworak Josephine Atanas Russ Loukes Darryl Lee

It is with great pleasure that I present the 2014 Annual Financial Report for the Corporation of the City of Brantford. This report provides stakeholders with highlights of the City’s 2014 financial results, including the strategic financial plan, financial management processes, significant achievements for the year, and our priorities for the future. Limited financial resources have been and will continue to be a major issue for the City of Brantford. At the same time, we are facing the need to deal with aging infrastructure, downloaded services from senior levels of government, and competing interests for improved and new services. The City had developed a strategic plan to determine where to focus our limited resources and provide a balance between service delivery and financial stability.

Message from the City Treasurer, Director of Finance

The City of Brantford’s strategic goals are guided by three fundamental elements – our community vision, our corporate mission, and our long-term desired goals. Community Vision Brantford- proud, vibrant, progressive ... a “GRAND" community for living, learning, working and playing. Corporate Mission The City of Brantford, in partnership with our community, is committed to responsible leadership through sound fiscal management and the delivery of quality programs and services for the citizens of Brantford Long-Term Desired Goals

• Economic Vitality & Innovation • High Quality of Life & Caring for All Citizens • Managed Growth & Environmental Leadership • Excellence in Governance & Municipal Management

Today, these goals continue to reflect the needs and vision of our community and will be used to assist Council in setting priorities and utilizing resources during the remainder of their term through to 2018. Strategic actions have been proposed that would continue to work towards our community’s long term desired outcomes.

Office of the Mayor & Chief Administrative Officer

Accomplishments & Initiatives

Specifically, the City is committed to engaging and informing the citizens of Brantford about their community and their City government; the City of Brantford will be known for its open and accessible government. In order to ensure community involvement, the City of Brantford has developed a Community Involvement Policy, Framework and a Community Involvement Toolkit. The goal of this initiative is to provide decision makers, staff of the City of Brantford, and most importantly, our citizens and stakeholders with a consistent genuine approach that will set a standard of excellence for community involvement plans in the City.

COMMUNITY ENGAGEMENT INITIATIVE

Other accomplishments & initiatives

Commission Priorities for 2015

Launched Customer One Strategy including investment of approximately $3.8 million in technology to support the initiative (new Unified Communications telephone system and Customer Relationship Management tools) supported by corporate-wide customer service training

Develop 4 key strategic initiatives that focus on engaging residents, service organizations, business community, educators and other stakeholders to create a community where people want to live, work, learn, play and grow

Complete Strategic Growth Negotiations with neighbouring municipalities Develop Corporate Communication Strategy Review City services and programs to adapt to changing demographics and ensure integration with

City initiatives Explore opportunities for lean practices as part of ongoing operational efficiency review

Involving the Community in discussions on matters that affect them is a fundamental element of representative democracy. As part of the City of Brantford Community Strategic Plan, the City of Brantford is committed to Excellence in Governance and Municipal Management.

Corporate Services

The myBrantford.ca is a user-friendly web portal that was established to allow the residents of Brantford to create an online connection to the City of Brantford. In 2014, the portal was expanded to allow for online bill payment services, making it easier and more convenient for residents to pay and register for services online. This tool is also utilized as a mechanism for community engagement when seeking feedback from the community as well as for information sharing.

www.myBrantford.ca ONLINE PORTAL


2014 Municipal Election-Introduction of online voting

Developed 10 year Capital Plan Upgrade of the City’s data network

infrastructure both downtown and at remote offices

Unified Communications-Finalization of project funding, implementation plan and project kickoff

Approval of the City of Brantford Accessibility Plan


Completed an in-depth Human Resources Master Plan

City’s Asbestos Management Plan was updated and implemented across the Corporation

Completion of Development Charges Background Study

Review the City’s Strategic Financial Plan Expand Asset Management Strategy to include all divisions across the Corporation Completion of a required pay equity and compensation review for all of the City’s exempt positions Negotiation of a new 5 year Enforcement Services Agreement with the Brant County SPCA for the

provision of Animal Control Services for the City Implementation of updated software within the City’s Finance Department for the budgeting and

accounts payable processes Refresh Landfill Masterplan

http://www.mybrantford.ca/

Public Works

WATER TREATMENT PLAN OPTIMIZATION


Established Asset Management Department and completed comprehensive Asset Management Plan

Full-Corridor reconstruction of 15 sites and road resurfacing of 17 sites

Repaired 2,536 potholes Pilot project for reloading Brantford Transit

cards at Kiosk


Completed detail design and construction of Shellard Lane Improvements

Replaced 3,396 panels of sidewalk Installed cameras and new digital radio

equipment on Brantford Lift equipment Implemented Enhanced Multi-residential

Recycling Program Implemented an Enhanced Sewer use program

to address overload/treatment issues

Activity Tracking Tool and continuing condition assessments to support the Asset Management Strategy

Continue developing Accommodation Strategy for all City staff and services Veterans Memorial Parkway improvements and extension Wastewater Treatment Optimization Study Purchase 3 new conventional transit and 5 new specialized transit buses Develop and Review Green Infrastructure Strategy Site security and accessibility improvements at City facilities Ashgrove Street lighting upgrades and replacements

Through a comprehensive Water Treatment Plant Optimization Study supported by Council, the City of Brantford was able to defer $27.75 million in capital expenditures by enhancing performance through improved process control.

Public Health, Safety & Social Services

A neighbourhood hub is a neutral space where residents can come together that engage in enjoyable, enriching experiences. Hubs are located in logical community locations and are in walking distance for many residents. Through participating in Hub activities that interest them, residents build natural networks of social connectedness and support, develop local leadership capacity, learn about services, and create healthier lifestyles. Over the long term, Hubs can become a place where people who are interested in making positive changes for themselves, their families and their community, gather. With engaged residents, neighbourhood renewal becomes possible.

NEIGHBORHOOD HUB PARTNERSHIP


SAMS (Social Assistance Management System) Brantford-Brant Housing Stability Plan 2014-

2024 Completion of comprehensive Master Aging

Plan Library received Award of Distinction – 2014

Downtown Champion by Downtown BIA


Assisted 1500+ individuals find appropriate shelter as part of the Homelessness Program

Maintained occupancy rate at John Noble Home of 97% or better

Establishment of Safe Brantford Office to support and coordinate long-term crime prevention initiatives

Development of a Capacity Building Model to strengthen the non-profit social service sector in Brantford

Develop community-wide Mental Health and Youth Services strategies Carbon Monoxide Alarm Education and Health & Wellness Program Implementation of Healthy Kids Community Challenge Strategic planning and environmental scan to support the development of the

Healthy Brantford initiative Provide planning and administrative leadership for the Smart Brantford (Digital

Inclusion) Initiative Fire Station relocation and Training Facility Studies

The Neighborhood Hub working project, a 3 year pilot program is a local initiative of our Social Services Department to work in partnership with three area schools to bring literacy programming to elementary students.

Community Services

City of Brantford has invested in creating a one-of a-kind world-class state of the art recreation facility that includes a new 4-pad arena, new 25 metre pool and hydro therapy pool to complement the existing 65 metre pool. The facility also features a fitness studio, fully-equipped weight room, dry land training room, indoor track, gymnasium, football field and more. The facility was completed in 2014 and is also home to our Sports Hall of Fame. Total commitment to the expansion and redevelopment of the facility was $64.3 million which included a $32.4 million commitment from the City as well as $31.9 million in funding contributions from the Federal and Provincial Build Canada Funding program.

WAYNE GRETZKY SPORT CENTRE PROJECT


The City assisted 114 organizations granting $539,000 to support valued programs and services

8 new industries and 10 business expansions Downtown improvement grants of $884,250

were provided resulting in over $17 million in investment in the downtown area

Discover Brantford blog and e-newsletter launch Established Rapid Response Team to reduce “red

tape for developers”


Revitalization of Victoria Park Northridge Renovation and Course

Improvement Project completed Joint Use Agreement at Sanderson Centre Gretzky Gardenscape Project

Civic Centre Front Entrance and Seat Replacement North of Shellard Recreation Centre and Sports Complex Northridge Pro Shop/Maintenance Shop project Kiwanis Field Artificial Surface Project Greenwich Mohawk and Sydenham/Pearl brownfield remediation Equipping main lobby at Sanderson Centre as a secondary performance space

The purpose of the City’s Strategic Financial Plan is a framework to guide City Council and the City’s departments, boards and committees in their financial planning and decision-making processes. Through this, the outcome is to improve and strengthen the long-term financial health of the City. Objectives

To focus on cost efficient and effective service and program delivery. To maximize revenues through a variety of sources. To use debt in a fiscally responsible manner. To properly maintain and fund the City’s physical assets. To account for and fund liabilities. To ensure that user fees remain regionally competitive. To ensure that growth will pay its fair share of growth related infrastructure costs. To establish a stable and equitable tax burden policy for the community.

Financial Policies Below are some of the financial policies adopted to assist in achieving the financial objectives listed above. Financial Management Policy - Proposals for new services or service level adjustments

(mandatory or discretionary) will be presented to Finance Committee for consideration. These proposals shall include impacts on the operating and capital budgets, funding sources, human resource requirements, performance measures, and long-term financial impact.

Development Charges - The City will be guided by the principle that growth shall pay for itself. User Fees - The City will strive to increase user fees as a percentage of overall funding by

identifying new areas where user fees can be implemented and by ensuring that existing fees are updated based on increases in the associated costs to provide the service.

Asset Management and Liability Policies - The City will include increased funding within its annual Capital funding to include lifecycle costing for all of the City’s tangible capital assets to be fully implemented by 2017.

Capital Budget Management Process – The City has moved to a Ten-Year Capital Budget process with one year of detailed project information and ten years of financial information identified. The Ten-Year Capital Budget will be reevaluated and updated on an annual basis by staff for consideration by Council.

Debt Management Policies – For Tax-Supported debt, debt carrying costs must be paid through the City’s Operating Budget, while for Rate-Supported debt, debt carrying costs must be paid through user fees.

Strategic Financial Plan

Annual Budget Process Operating Budget The City of Brantford uses the budget as a means of allocating resources to provide services, and maintain the infrastructure that residents and businesses in the City of Brantford depend on. Our operating budget process begins in June of each year with guidelines sent out to departments, and runs through until the budget is passed, which for the 2014 budget year was January 27, 2014. The operating budget provides for the everyday operation of our services. It includes salaries and benefits, the purchase of services from other groups, companies or agencies, along with costs for repairs and maintenance, materials and supplies. The budget process requires each department and commission to review their existing budgets in comparison to historical spending based on their current level of service. In addition to a review of prior spending patterns, adjustments are made for known process improvements and efficiencies, the economic indicators of the community, and business plans of the corporation as set out by Council. Department budgets are completed in early September and presented and reviewed by the Senior Management Team followed by the Estimates Committee, concluding with an approved budget.

Capital Budget Our capital budget has the same timeframe as that of our operating budget, with a common goal of balancing our immediate and future needs with affordability. Capital projects and assets include such things as vehicles, roads, bridges, water lines, buildings, software systems, and equipment. At the City we use various forms of financing to support our capital plan, and this includes debt financing, funding from other levels of government, reserved (accumulated from previous planning), the levy (current year taxes), etc. The development of a long term capital forecast and the related financing strategy is needed to ensure our municipal infrastructure is maintained. The bulk of our capital spent occurs in our Public Works area (road network, water and sewer systems, facilities & equipment, transit system and bridges), and to a smaller extend in Corporate Services (information technology systems), Community Services (parks, playgrounds and recreational facilities), and Public Health (housing and emergency services).

Financial Management Processes

The Annual Audit Process The City of Brantford annually prepares audited consolidated financial statements which comprise the consolidated statement of financial position as at December 31st, and the consolidated statements of operations, cash flows and changes in net financial assets for the year then ended.

Auditor’s Responsibility The external auditor is responsible for expressing an opinion on our consolidated financial statements based on their audit. The audit is conducted in accordance with Canadian generally accepted auditing standards which require that they comply with ethical requirements and plan and perform the audit to obtain reasonable assurance as to whether the consolidated financial statements are free from material misstatement. The audit is performed using procedures that assess the risk of material misstatement whether due to fraud or error. In their review, the auditor considers internal control relevant to the entity’s preparation and fair representation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances.

Management’s Responsibility Management’s responsibility for the financial statements is for the preparation and fair presentation of our consolidated statements in accordance with Canadian generally accepted accounting principles and for internal controls that management has deemed to be necessary for the financial statements to be free from material misstatement.

Councillor’s Responsibility

The mandate of Council is to provide oversight to staff and the External auditors and is responsible to review internal and external reports, work plans, including the External Auditor’s Annual Audit Plan, as well as the consolidated financial statements and audit report findings.

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The consolidated financial statements of the Corporation of the City of Brantford are prepared by management in accordance with Canadian public sector accounting standards as recommended by the Public Sector Accounting Board of CPA Canada. The consolidated financial statements include the assets, liabilities, revenue and expenses of the City. The reporting entity is composed of all organizations, committees and local boards accountable for the administration of their financial affairs and resources to the City and which are owned or controlled by the City. These consolidated financial statements include:

• Brant and Brantford Local Housing Corporation

• Brantford Downtown Business Improvement Area

• Brantford Municipal Non-Profit Housing Corporation

• Brantford Police Services Board • Brantford Public Library • John Noble Home

Government Business Enterprises include Brantford Energy Corporation. In accordance with Public Sector Accounting Standards this is accounted for on a modified equity basis in which the business enterprise’s accounting principles are not adjusted to conform with those of the City, and inter-organizational transactions and balances are not eliminated. The City ‘s Trust Fund and their related operations administered by the municipality are not consolidated but are reported separately. Non-consolidated entities include the Brant County Health Unit. The following information summarizes the financial results from the 2014 consolidated financial statements.

FINANCIAL ASSETS: Total Financial Assets at 2014 year end were $269.6 million (2013 $251.5 million). This represents an increase of $18.1 million over the prior year.

During 2014, cash and cash equivalents decreased by $39.1 million to $52.0 million (2013 $91.1 million). Additional cash from maturing investments in 2013 caused the cash balance to be unusually high. These additional funds were subsequently re-invested at the beginning of 2014.

Taxes receivable decreased by $4.1 million in 2014 due to an increase in doubtful accounts combined with a decrease in tax receivable. The balance at 2014 year end was $4.9 million (2013 $9.0 million).

Accounts and grants receivable were $16.8

million (2013 $14.1 million), an increase of $2.7 million over 2013. The increase was attributable to a billing cycle change on our water and wastewater billings for 2014.

2014 Financial Year in Review

Investments increased by $56.3 million in 2014 due to the reinvestment of cash received in the prior year from maturing investments. The balance of investments at December 31, 2014 was $139.3 million (2013 $83.0 million).

Investment in Brantford Energy Corporation in

2014 increased by $2.4 million over the prior year. The balance at December 31, 2014 was $30.0 million (2013 $27.6 million).

FINANCIAL LIABILITIES: Total Financial Liabilities at 2014 year end were $164.0 million (2013 $159.0 million), representing an increase of $5.0 million over the prior year.

Accounts payable and accrued liabilities decreased from $37.0 million in 2013 to $36.9 million in 2014 due to the timing of payments at year end.

Deferred revenues – obligatory reserve funds

were $43.3 million in 2014 (2013 $46.4 million), representing a decrease of $3.1 million from the prior year due to greater

revenue earned as there was increase capital spending in 2014.

Post employment/retirement benefits were $17.6 million in 2014 (2013 $17.1 million), representing an increase of $0.5 million.

Landfill closure and post closure liability

increased from $13.9 million in 2013 to $24.7 million in 2014. The $10.8 million increase was due to an adjustment in the future liability estimate.

Net long term liabilities were $37.8 million (2013 $41.1 million) resulting in a decrease of $3.3 million.

NON-FINANCIAL ASSETS:

Total Non-Financial Assets at year end were $720.1 million (2013 $728.3 million). This represents a decrease of $8.2 million resulting from the sale of land that was held as inventory. Non-Financial Assets consist of tangible capital assets, inventories and prepaid expenses with tangible capital assets representing over 97.8% of the total balance.

REVENUES AND OTHER INCOME:

In 2014, Total Revenues and Other Income amounted to $302.5 million (2013 $272.0 million) representing an increase of $30.5 million. The sources and breakdown of revenue are provided in the chart below:

Taxation revenues in 2014 totalled $131.3 million (2013 $128.5 million) which represents an

increase of $2.76 million or 2.2% over the prior year.

User charges for 2014 were $56.8 million (2013 $55.0 million), an increase of $1.74 million or 3.2% over the prior year resulting primarily from a billing cycle change for water and wastewater.

Government transfers for 2014 totalled $61.3 million (2013 $54.7 million). This represents an

annual increase of $6.5 million that resulted largely from an increase in federal grant spending in 2014.

In 2014, deferred revenue earned was $7.3 million (2013 $2.0 million), an increase of $5.3 million over the prior year resulting from significant increases in development charge spending in 2014.

* Breakdown of Other revenue: %Other 3.3%Rents and concessions 2.8%Deferred revenue earned 2.4%Casino revenue 1.7%Recoveries from other municipalities 1.3%Contributed tangible capital assets 1.2%Income from Brantford Energy Corporation 0.9%Change in equity in Brantford Energy Company 0.8%Interest earned on reserves and reserve funds 0.8%Provincial Offences Act and other fines 0.7%Licenses and permits 0.7%Penalties and interest on taxes 0.6%Investment income 0.4%Total 17.56%

EXPENSES: In 2014, Total Expenses including those classified as Other on the Consolidated Statement of Operations totalled $297.5 million (2013 $272.1 million) representing an increase of $25.4 million. The increase consists primarily of the following: • $11.6 million increase in environmental services expense from an adjustment made to the landfill

closure and post closure liability estimate. Annual projected expenditures required to treat leachate from the Site had not been previously identified in the liability calculation.

• $4.0 million increase in costs for transportation services resulting from expenditures for the repairs

and maintenance of neighbouring roads and other assets, as well as higher costs relating to the maintenance of fleet vehicles and equipment

• $2.5 million increase in costs relating to protection to persons and property resulting primarily from a

combination of retroactive earnings and benefit adjustments

• General government - $12.3 million • Protection to persons and property - $54.6 million • Transportation services - $32.1 million • Environmental services - $41.4 million • Health services - $6.6 million

• Social and family services - $74.0 million • Recreational and cultural services - $26.1 million • Planning and development - $9.6 million • Loss on disposal of assets - $7.5 million • Amortization - $33.5 million

2014 Expenses by Service and Other Expenses (In $ millions)

2014 Expenses by Type and Other Expenses (In $ millions)

Salaries, wages and benefits - $121.5 million Materials - $57.6 million Contracted services - $28.9 million External transfers - $41.1 million Amortization - $33.5 million Debt servicing - $1.7 million Other expenditures - $5.8 million Loss on disposal of assets - $7.5 million

The following chart shows the percentage breakdown of expenses by type:

RESERVE FUNDS: The City of Brantford manages several reserves and reserve funds for the main purposes of funding capital expenditure projects, mitigating the impact of future obligations, stabilizing operating costs and balancing specific budget items. In 2014, the balance of reserve and reserve funds was $108.2 million (2013 $96.4 million). This represents an increase of $11.8 million over the prior year. The City’s most significant reserve fund balances include; water and wastewater; social housing; transportation; sick leave; and insurance. Reserves and reserve funds are included in the accumulated surplus balance. Deferred revenues from obligatory reserve funds are reported on the Consolidated Statement of Financial Position and are comprised of contributions received from federal and provincial gas tax, development charges and other payments from developers for future projects. In 2014, the balance of deferred revenues - obligatory reserve funds was $43.3 million (2013 $46.4 million). This represents a decrease of $3.1 million from the prior year. The reserve balances are monitored on an ongoing basis to ensure they remain sufficient to meet long-term financial commitments and to allow the City to take advantage of financial opportunities as they become known. The following chart shows the historical trend of reserve and reserve fund balances since 2010:

FINANCIAL SECTION


INDEPENDENT AUDITORS' REPORT

To the Members of Council, Inhabitants and Ratepayers of The Corporation of the City of Brantford

We have audited the accompanying consolidated financial statements of the Corporation of the City of Brantford,which comprise the consolidated statement of financial position as at December 31, 2014, and the consolidatedstatements of operations, change in net financial assets and cash flows for the year then ended, and a summary ofsignificant accounting policies and other explanatory information.

Management's Responsibility for the Financial StatementsManagement is responsible for the preparation and fair presentation of these consolidated financial statements inaccordance with Canadian public sector accounting standards, and for such internal control as management determinesis necessary to enable the preparation of consolidated financial statements that are free from material misstatement,whether due to fraud or error.

Auditors' ResponsibilityOur 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 standards require thatwe comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whetherthe 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 fraud orerror. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation andfair presentation of the consolidated financial statements in order to design audit procedures that are appropriate inthe 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 ofaccounting estimates made by management, as well as evaluating the overall presentation of the consolidated financialstatements.

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

OpinionIn our opinion, the consolidated financial statements present fairly, in all material respects, the financial position ofthe Corporation of the City of Brantford as at December 31, 2014, and the results of its operations, its changes in netassets and its cash flows for the year then ended in accordance with Canadian public sector accounting standards.

June 11, 2015 CHARTERED PROFESSIONAL ACCOUNTANTSBrantford, Ontario Licensed Public Accountants

Page 6Millard, Rouse & Rosebrugh LLPBrantford • Hagersville • Simcoe • Delhi • Norwich • Tillsonburg

MillardsChartered Accountants

P.O. Box 367, 96 Nelson StreetBrantford, Ontario N3T 5N3Telephone: (519) 759-3511Facsimile: (519) 759-7961

CORPORATION OF THE CITY OF BRANTFORD

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As at December 31 2014 2013

(Restated Note 2)

FINANCIAL ASSETSCash and cash equivalents (Note 6) 52,030,701 91,159,464Taxes receivable (Note 7) 4,865,004 8,994,408Accounts and grants receivable (Note 8) 16,840,750 14,111,491Inventories held for resale 44,481 42,275Land held for resale 1,114,983 1,114,983Investments (Note 9) 139,259,375 82,954,790Investment in Brantford Energy Corporation (Note 10) 29,947,148 27,582,655Note receivable - Brantford Power Inc. (Note 10) 24,189,168 24,189,168Note receivable - Brantford Hydro Inc. (Note 10) 1,303,335 1,303,335TOTAL FINANCIAL ASSETS 269,594,945 251,452,569

LIABILITIESAccounts payable and accrued liabilities (Note 11) 36,889,613 37,023,753Deferred revenues - obligatory reserve funds (Note 12) 43,334,339 46,413,329Vested sick leave (Note 13) 3,183,725 3,028,812Post employment/retirement benefits (Note 13) 17,630,658 17,149,935Accrued interest on long term liabilities 442,497 464,283Landfill closure and post closure liability (Note 14) 24,694,625 13,863,159Net long term liabilities (Note 16) 37,795,207 41,062,145TOTAL LIABILITIES 163,970,664 159,005,416

NET FINANCIAL ASSETS 105,624,281 92,447,153

NON-FINANCIAL ASSETSTangible capital assets (net) (Schedule 1) 704,329,844 707,288,204Inventories (Note 3) 9,541,743 18,074,097Prepaid expenses 6,183,941 2,957,403

720,055,528 728,319,704

NET ASSETS 825,679,809 820,766,857

ACCUMULATED SURPLUS (Note 18) 825,679,809 820,766,857

The accompanying notes are an integral part of theses financial statements Page 7


CONSOLIDATED STATEMENT OF OPERATIONS

As at December 31 Budget 2014 2013

(Note 26) (Restated Note 2)

REVENUESTaxation 130,978,672 131,289,499 128,532,084User charges (Note 19) 57,576,022 56,778,237 55,040,377Government transfers 59,875,954 61,269,988 54,734,289Rents and concessions 8,488,239 8,628,530 8,605,740Investment income 1,215,000 1,169,406 1,134,686Interest earned on reserves and reserve funds 2,254,209 2,298,999 1,951,241Recoveries from other municipalities 3,189,871 3,979,285 4,379,539Casino revenue 5,100,000 5,064,697 4,681,243Deferred revenue earned 8,182,767 7,338,007 2,003,412Provincial Offenses Act and other fines 2,115,050 2,177,994 2,242,634Licenses and permits 2,380,352 2,044,832 1,925,610Penalties and interest on taxes 2,100,000 1,706,372 1,898,764Income from Brantford Energy Corporation (Note 20) 2,601,362 2,651,362 2,651,362Other (Note 21) 6,423,025 10,106,915 8,485,645TOTAL REVENUES 292,480,523 296,504,123 278,266,626

EXPENSES

General government 11,066,512 12,255,702 12,388,354Protection to persons and property 55,288,384 54,551,981 52,101,813Transportation services 30,878,981 32,060,643 28,079,927Environmental services 41,379,657 41,381,988 29,758,481Health services 6,603,786 6,635,106 6,845,744Social and family services 75,833,330 73,978,827 74,422,371Recreational and cultural services 25,800,987 26,061,518 25,075,298Planning and development 9,821,058 9,563,581 11,107,124TOTAL EXPENSES 256,672,695 256,489,346 239,779,112INCOME BEFORE UNDER-NOTED ITEMS 35,807,828 40,014,777 38,487,514

OTHER INCOME/(EXPENSE)Contributed tangible capital assets 3,594,089 3,594,089 3,701,835Loss on disposal of tangible capital assets and land inventory (7,534,463) (7,534,463) (392,401)Amortization of tangible capital assets (33,257,468) (33,525,944) (31,944,084)Change in equity in Brantford Energy Corporation - 2,364,493 (9,927,977)

(37,197,842) (35,101,825) (38,562,627)

ANNUAL SURPLUS (DEFICIT) FROM OPERATIONS (1,390,014) 4,912,952 (75,113)ACCUMULATED SURPLUS, BEGINNING OF YEAR 820,766,857 820,766,857 820,841,970

ACCUMULATED SURPLUS, END OF YEAR 819,376,843 825,679,809 820,766,857



CONSOLIDATED STATEMENT OF CHANGE IN NET FINANCIAL ASSETS

For the year ended December 31 Budget 2014 2013

(Restated Note 2)

Annual Surplus (1,390,014) 4,912,952 (75,113)

Amortization of tangible capital assets 33,525,944 33,525,944 31,944,084Contributed (Donated) tangible capital assets (3,594,089) (3,594,089) (3,701,835)Acquisition of tangible capital assets (31,545,600) (31,545,600) (26,018,876)Loss/(Gain) on disposal of tangible capital assets

and land inventory 7,534,463 7,534,463 392,401Proceeds on disposal of tangible capital assets 52,021 52,021 21,818Acquisition of inventory and prepaid expense - 2,291,437 (6,660,366)

Increase (Decrease) in Net Financial Assets 4,582,725 13,177,128 (4,097,887)Net Financial Assets, Beginning of Year 92,447,153 92,447,153 96,545,040

Net Financial Assets, End of Year 97,029,878 105,624,281 92,447,153



CONSOLIDATED STATEMENT OF CASH FLOWS


(Restated Note 2)

OPERATINGAnnual Surplus (Deficit) 4,912,952 (75,113)Sources (Uses) of Cash: Taxes receivable 4,129,404 (66,598) Accounts receivable (2,729,259) 3,782,550 Accounts payable and accruals (134,140) (6,739,730) Contributed (Donated) tangible capital assets (3,594,089) (3,701,835) Deferred revenues - obligatory reserve funds (3,078,990) 5,120,200 Employee benefits and interest 613,850 284,882 Landfill closure and post closure liability 10,831,466 229,006 Other financial assets (2,206) (1,041) Inventories and prepaid expenses 2,291,437 (6,660,366)

13,240,425 (7,828,045)Non cash charges to operations: Amortization 33,525,944 31,944,084 Loss on disposal of tangible capital assets and land inventory 7,534,463 392,401

41,060,407 32,336,485Cash provided by operating transactions 54,300,832 24,508,440

CAPITALAcquisition of tangible capital assets (31,545,600) (26,018,876)Proceeds on disposal of tangible capital assets 52,021 21,818Cash applied to capital transactions (31,493,579) (25,997,058)

INVESTING(Increase)/Decrease of investments (56,304,585) 22,999,705(Increase)/Decrease of investment in Brantford Energy Corporation (2,364,493) 9,927,977Cash provided by (applied to) investing transactions (58,669,078) 32,927,682

FINANCINGLong term debt issued - 1,350,000Long term debt repaid (3,266,938) (3,041,613)Cash applied to financing transactions (3,266,938) (1,691,613)

Net Change in Cash and Cash Equivalents (39,128,763) 29,747,451Opening Net Cash and Cash Equivalents 91,159,464 61,412,013

Closing Net Cash and Cash Equivalents 52,030,701 91,159,464



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor the year ended December 31, 2014

The Corporation of the City of Brantford is a Municipality in the Province of Ontario, Canada. It conductsits operations guided by the provisions of provincial statutes such as the Municipal Act and related legislation.

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The consolidated financial statements of the Corporation of the City of Brantford (the “City”) are preparedby management in accordance with Canadian public sector accounting standards as recommended by thePublic Sector Accounting Board of CPA Canada.

The preparation of financial statements in conformity with Canadian public sector accounting standardsrequires management to make estimates and assumptions that affect the reported amounts of assets andliabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and thereported amounts of revenues and expenditures during the period. Since precise determination of many assetsand liabilities is dependent upon future events, the preparation of periodic financial statements necessarilyinvolves the use of estimates and approximations. These have been made using careful judgment. Actualresults could differ from these estimates. Significant aspects of the accounting policies adopted by the Cityare as follows:

(a) Reporting Entities

(i) The consolidated financial statements include the assets, liabilities, revenues and expenses, of the City. The reporting entity is composed of all organizations, committees and local boards accountable for theadministration of their financial affairs and resources to the City and which are owned or controlled bythe City. These consolidated financial statements include:

Brant and Brantford Local Housing CorporationBrantford Downtown Business Improvement AreaBrantford Municipal Non-Profit Housing CorporationBrantford Police Services BoardBrantford Public LibraryJohn Noble Home

Inter-departmental and inter-organizational transactions and balances between these organizations havebeen eliminated.

(ii) Effective January 1, 2002, the City entered into a service agreement with the Brant and Brantford LocalHousing Corporation whereby the Housing Corporation transferred all operations to the City. TheHousing Corporation has retained title to its physical assets in the capacity of bare trustee for the benefitof the City.

(iii) Non-Consolidated EntitiesThe following local boards, joint local boards, municipal enterprises and utilities are not consolidated:

Brant County Health Unit

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1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

(a) Reporting Entities (continued)

(iv) Accounting for School Board TransactionsThe taxation, other revenues, expenditures, assets and liabilities with respect to the operations of theschool boards are not reflected in the accumulated surplus of these financial statements.

(v) Trust Funds Trust funds and their related operations administered by the municipality are not consolidated, but arereported separately on the Trust Funds statement of continuity and statement of financial position.

(vi) Brantford Energy CorporationBrantford Energy Corporation is accounted for on a modified equity basis, consistent with the Canadianpublic sector accounting standards for government business enterprises. Under the modified equitybasis, the business enterprise’s accounting principles are not adjusted to conform with those of the City,and inter-organizational transactions and balances are not eliminated.

(b) Basis of Accounting

(i) Accrual Basis of AccountingThe consolidated financial statements are prepared using the accrual basis of accounting. The accrualbasis of accounting records revenue as it is earned and measurable. Expenses are recognized as they areincurred and measurable based upon receipt of goods or services and/or the creation of a legal obligationto pay.

(ii) Non-financial Assets Non-financial assets are not available to discharge existing liabilities and are held for use in theprovision of services. They have useful lives extending beyond the current year, and are not intendedfor sale in the ordinary course of operations. The change in non-financial assets during the year,together with the excess of revenues over expenses, provides the change in net financial assets for theyear.

(ii) a) Tangible Capital AssetsUnder Canadian public sector accounting standards guidelines, tangible capital assets are recordedat their historical cost and amortized over their estimated useful life. Tangible capital assets aredefined as non-financial assets with an estimated useful life greater than 1 year, held for use in theproduction or supply of goods and services, not held for resale, in continuous use, and valued inexcess of an established financial threshold.

The capitalization threshold for general assets is $5,000 and $25,000 for infrastructure assets.Individual tangible capital assets with lesser value are expensed and groups of similar assets, suchas library books, fire hoses, or street signs, are recorded as pooled assets based on their year ofacquisition.

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(b) Basis of Accounting (continued)

(ii) a) Tangible Capital Assets (continued)Tangible capital assets are recorded at cost which includes amounts directly attributable to theacquisition, construction, development or betterment of the assets. The cost is amortized on astraight-line basis over their estimated useful lives as follows:

Buildings 10 - 50 years Vehicles:

Transit buses 12 yearsVehicles 5 - 15 years

Computer hardware and software 4 - 15 yearsOther:

Machinery and equipment 10 - 20 yearsLand improvements 10 - 30 years

Waste, wastewater plants and networks:Underground networks 50 - 75 yearsWater and wastewater plants and facilities 30 - 100 years

Transportation:Roads 15 - 50 yearsBridges, culverts, etc. 20 - 40 years

Expected useful lives are determined based on experience with the asset. Revisions to the estimatesmay be caused by upgrades or renewal expenditures that result in a change in the service level ofthe asset or may revise the life expectancy. These estimates and potential impairment of the tangiblecapital assets are reviewed annually.

Amortization is calculated beginning in the month the asset is put into service. Assets underconstruction are not amortized until the asset is available for productive use.

b) Contribution of Tangible Capital AssetsTangible capital assets received as contributions are recorded at their fair market value at the dateof receipt.

c) LeasesLeases are classified as capital leases if they transfer substantially all of the benefits and risksincidental to ownership of property. Leased capital assets are recorded as tangible capital assets.

d) InventoriesInventories held for consumption are not considered tangible capital assets.

(iii) Cash and Cash EquivalentsCash and cash equivalents are comprised of cash on hand, cash held in financial institutions andshort term investments with maturities of 365 days or less.

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(b) Basis of Accounting (continued)

(iv) Government TransfersGovernment transfers are recognized in the financial statements as revenues in the period in whichevents giving rise to the transfer occur, providing the transfers are authorized, any eligibility criteriahave been met and reasonable estimates of the amounts can be made.

(v) Taxation Revenue Taxation revenue is recorded when property tax bills are levied. Taxation revenue recognized each yearis adjusted for estimates for expected supplementary taxes, appeals and non-collectible taxes.

(vi) Deferred Revenues - Obligatory Reserve FundsDeferred revenues represent developer and user charges, Federal and Provincial gas tax revenue, Federaland Provincial transit capital funding, Move Ontario roads and bridges capital funding, and B-Homehousing program which have been collected, but for which the related services have yet to be performed.These amounts will be recognized as revenues in the fiscal year the services are performed.

(vii) Land Held for ResaleLand held for resale is recorded at the lower of cost and net realizable value. Cost includes amounts forimprovements to prepare the land for sale or servicing.

2. RESTATEMENT OF 2013 COMPARATIVE FIGURES

During the 2014 year, it was determined that deferred revenue was incorrectly calculated in previous years.This error resulted in changes to the opening accumulated surplus, deferred revenue earned, deferred revenueobligatory reserve fund, and closing accumulated surplus for 2013. During 2014 it was also determined thattwo parcels of land for resale were not included in the financial statements in previous years. This errorresulted in changes to the opening accumulated surplus, land for resale and closing accumulated surplus for2013. The total impact of correcting these items in the 2013 comparative figures is as follows:

As Previously 2013 Reported Adjustment As Restated

Opening Accumulated Surplus 825,847,649 (5,005,678) 820,841,971

Deferred revenue earned 680,879 1,322,533 2,003,412

Deferred Revenue - Obligatory Fund 41,615,201 4,798,128 46,413,329

Land for resale - 1,114,983 1,114,983

Closing Accumulated Surplus 824,450,003 (3,683,146) 820,766,857

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3. INVENTORIES 2014 2013

Inventories of supplies 584,923 303,485Land and rehabilitation costs 8,956,820 17,770,612

9,541,743 18,074,097

4. CONTRIBUTIONS TO NON-CONSOLIDATED JOINT BOARDS

Further to Note 1(a)(iii), the following contributions which are included as an expense on the consolidatedstatement of operations were made by the municipality to these boards:

2014 2013

Brant County Health Unit 2,239,587 2,138,869

5. TRUST FUNDS

Trust funds administered by the Municipality amounting to $3,821,592 (2013 - $3,791,118) have not beenincluded in the consolidated statement of financial position nor have their operations been included in theconsolidated statement of operations.

6. CASH AND CASH EQUIVALENTS

Short term investments are used by the City to invest excess cash until required to meet the City’s currentfinancial obligations.

2014 2013

Cash 15,710,545 40,220,693Short term investments 36,320,156 50,938,771

52,030,701 91,159,464

7. TAXES RECEIVABLE 2014 2013

Taxes receivable 11,125,888 13,389,957Allowance for doubtful accounts (6,260,884) (4,395,549)

4,865,004 8,994,408

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8. ACCOUNTS AND GRANTS RECEIVABLE 2014 2013

Accounts receivable 12,175,906 10,241,486Grant receivable - Federal 2,366,629 1,378,943Grant receivable - Provincial 2,298,215 2,491,062

16,840,750 14,111,491

9. INVESTMENTS

The total investments of $139,259,375 (2013 - $82,954,790) recorded on the consolidated statement offinancial position at cost, having a market value of $139,816,471 (2013 - $84,055,689) at the end of the yearare comprised of the following:

2014 2013

Provincial 5,126,997 4,042,280Municipal - own 3,954,041 4,354,871Municipal - other 17,419,423 10,557,196Bank 112,758,914 64,000,443

139,259,375 82,954,790

10. INVESTMENT IN BRANTFORD ENERGY CORPORATION

(a) In compliance with provincial legislation enacted to restructure the electricity industry in Ontario, Councilapproved the incorporation of the business of the former Brantford Hydro-Electric Commission (“theCommission”). Through its 100 per cent interest in Brantford Energy Corporation, the City retains its interestin the electricity business conducted by Brantford Energy Corporation’s wholly-owned subsidiaries,Brantford Power Inc., Brantford Hydro Inc. and Brantford Generation Inc. The four companies areincorporated under the Ontario Business Corporations Act. Brantford Power Inc. provides regulatedelectricity distribution services, Brantford Hydro Inc. provides fibre optics networks, water heater rental andsentinel lighting services and Brantford Generation Inc. provides electricity generation.

The notes receivable of $25,492,503 are made up of two notes. The Brantford Power Inc. note of $24,189,168is payable, interest only, at 5.87% per annum, with principal due February 1, 2016. The Brantford Hydro Inc.note of $1,303,335 is payable, interest only, at 6.25% per annum, with principal due February 1, 2016. TheCity has the option to extend the maturity date for successive five year periods. The City also has the optionto convert the principal sum of the notes into common shares of the corporation at a conversion ratio of $100per common share.

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10. INVESTMENT IN BRANTFORD ENERGY CORPORATION (continued)

(b) The following table provides condensed financial information in respect of the consolidated operations ofBrantford Energy Corporation for the year ended December 31:


Current assets 36,143,736 38,102,322Non-current assets 8,419,893 12,597,664Property, plant and equipment 66,508,141 62,958,070Total Assets 111,071,770 113,658,056

Current liabilities 31,814,404 31,738,882Long term debt 43,361,039 44,446,920Long term customer deposits and other liabilities 3,759,804 7,682,462Post employment benefits 2,189,375 2,207,137Total Liabilities 81,124,622 86,075,401Net Equity 29,947,148 27,582,655

Results of Operations:

Revenues 24,858,136 23,867,811Operating expenses 21,369,990 32,778,131Net Income (Loss) 3,488,146 (8,910,320)

The City’s investment is comprised of the following:

Equity - Beginning of YearCommon shares 23,895,512 23,895,512Prior years accumulated net income 3,687,143 13,615,120

27,582,655 37,510,632Net income (loss) for the year 3,488,146 (8,910,320)Dividends (1,150,000) (1,150,000)Other Comprehensive Income (Loss) 26,347 132,343Change in equity for the year 2,364,493 (9,927,977)Equity - End of Year 29,947,148 27,582,655Notes receivable 25,492,503 25,492,503Net Investment 55,439,651 53,075,158

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11. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

Accounts payable and accrued liabilities are comprised of the following:

2014 2013

Trade payables 18,441,950 16,887,150Deposits/Unearned revenue 12,102,759 13,402,675Payable to the provincial and federal government 6,344,904 6,733,928

36,889,613 37,023,753

12. DEFERRED REVENUES - OBLIGATORY RESERVE FUNDS

(a) A requirement of the public sector accounting standards of CPA Canada is that obligatory reserve funds bereported as deferred revenue. This requirement is in place as provincial legislation restricts how these fundsmay be used and under certain circumstances these funds may possibly be refunded. The balances in theobligatory reserve funds of the City are summarized as follows:

2014 2013

(Restated Note 2)

Development charges 27,492,767 28,590,565Subdivision contributions 2,308,266 2,303,317Recreational land (The Planning Act) 440,521 313,344Federal gas tax revenues 7,259,243 9,513,570Provincial gas tax revenues 2,858,453 3,343,437Provincial roads and bridges capital funding 31,183 31,482B-Home Housing Program 154,621 172,476Building Code Act 2,789,285 2,145,138

43,334,339 46,413,329

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12. DEFERRED REVENUES - OBLIGATORY RESERVE FUNDS (continued)

(b) Continuity of deferred revenue is as follows:2014 2013

(Restated Note 2)

Balance, beginning of year 46,413,329 41,223,959Contributions from : Federal gas tax 5,571,180 5,533,279 Provincial gas tax 622,493 1,229,766 Development charges act 5,468,032 3,863,366 Developers and others 879,028 500,401Interest earned 899,131 787,766Total revenue 13,439,864 11,914,578Deferred revenue utilized: Federal gas tax 8,006,497 3,596,494 Provincial gas tax 1,174,349 1,125,302 Development charges 7,115,341 1,694,304 Developers and others 222,667 309,108

Total deferred revenue utilized 16,518,854 6,725,208

Balance, end of year 43,334,339 46,413,329

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13. POST EMPLOYMENT/RETIREMENT BENEFITS

The City provides certain employee benefits which will require funding in future periods. Under thesickleave benefit plan, unused sick leave can accumulate and employees may become entitled to a cashpayment when they leave the City’s employment. The City also has obligations for amounts owing to formeremployees under the Workplace Safety and Insurance Board permanent partial disability pension and foramounts owing under various benefit programs. An actuarial valuation of future liabilities was completedin January 2012 and forms the basis for the estimated liability reported in these financial statements.

The weighted average assumptions used in the valuation were as follows:2014 2013

Discount rate 3.50% 3.75%Average compensation increase 2.50% 2.50%Healthcare cost increases Initial rate 9.00% 9.00% Ultimate rate 5.00% 5.00%Grading period 15 years 15 years

Post Employment/Retirement Benefits

Medical, Dental,Life

Insurance

Sick Leave

Gratuity

Disability

Benefits Total Benefits

2014Total Benefits

2013

Accrued Benefit End of Prior Year 13,427,663 2,832,738 564,982 16,825,383 15,509,654Accrued Benefit Obligation at Jan. 1 13,427,663 2,832,738 564,982 16,825,383 15,509,654Current Period Benefit Cost 671,301 194,889 - 866,190 787,377Retirement Interest Expense 516,828 103,521 20,071 640,420 623,915Estimated Benefit Payment (633,777) (149,956) (59,497) (843,230) (1,009,768)Prior Period Cost of Plan Amendment - - - - 485,391(Gains) Losses 426,266 63,242 14,885 504,393 428,814Accrued Benefit Obligation as at December 31 14,408,281 3,044,434 540,441 17,993,156 16,825,383Unrecognized Gains (Losses) 2,681,936 139,291 - 2,821,227 3,353,364Liability as at December 31 17,090,217 3,183,725 540,441 20,814,383 20,178,747

The City and the Brantford Public Library have established reserves to mitigate the future impact of theseobligations, as disclosed in Note 24. The balance at the end of the year is $3,724,112 (2013 - $3,576,674).

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14. LANDFILL CLOSURE AND POST CLOSURE LIABILITY

The Environmental Protection Act sets out regulatory requirements to properly close and maintain all activeand inactive landfill sites. Under environmental law, there is a requirement for closure and post-closure careof solid waste landfill sites. The City has one active landfill site, the Mohawk Street Landfill Site (“Site”). In 2014 the City hired a consultant to develop a Landfill Master Plan to assist the City in preparing for thecontinued operation, management and development of the Site for a 25 year planning period and beyond. The Landfill Master Plan also forecasts the City’s required financial commitments during continued landfilloperation and also following its closure to the end of its estimated contaminating life span. The LandfillMaster Plan integrates predicted waste generation and disposal needs, remaining capacity and life expectancyof the Site, a detailed inventory of City-owned landfill assets, their condition and life expectancy, and theestimated future capital costs and financial liability to the end of the landfill’s estimated contaminating lifespan. Based on the analysis conducted by the consultant, the Site has a licensed capacity of approximately13,345,000 cubic metres with approximately 8,600,000 cubic metres of remaining capacity. At currentaverage fill rates, the Site is estimated to have a remaining operating life span of approximately 50 to 60years. It is estimated the total cost to close and maintain the Site and to maintain all other closed phases isapproximately $69,452,007 (2013 - $32,023,001) with $24,694,625 (2013 - $13,863,159) recognized in thefinancial statements and $44,757,382 (2013 - $18,159,842) to be recognized as the capacity of the Site is usedup. The large variance in estimated costs of future liability is due to the consultant’s annual projectedexpenditures of $2,538,186 (in 2014 dollars) to treat the leachate from the Site that has not been previouslyidentified in our liability calculation. The City has not designated any assets to assist with the cost of closingand maintaining the Site. Once the Site has reached full capacity it is estimated that post-closure activitieswould continue for approximately 112 years.

15. PENSION AGREEMENTS

The City makes contributions to the Ontario Municipal Employees Retirement System (“OMERS”), whichis a multi-employer plan, on behalf of all permanent, full-time members of its staff. The plan is a definedbenefit plan which specifies the amount of the retirement benefit to be received by the employees based onthe length of service and rates of pay. The amount contributed to OMERS for 2014 was $8,988,740 (2013 -$8,525,911) for current and past service.

The OMERS pension plan has a deficit. If actuarial surpluses are not available to offset the existing deficitand subsidize future contributions, increases in contributions will be required in the future.

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16. NET LONG TERM LIABILITIES

(a) The balance of the net long term liabilities reported on the consolidated statement of financial position ismade up as follows:

2014 2013

Total long term liabilities incurred by the municipality,including those incurred on behalf of school boards,other municipalities and municipal enterprises andoutstanding at the end of the year amounted to 37,795,207 41,062,145

The long-term liabilities carry interest rates ranging from 2.65% to 6.875%.

(b) The net long term liabilities reported in (a) of this note are payable as follows: 2015 to 2019 After 2019

From benefiting landowners and user rates 10,122,343 24,999,954From consolidated municipal enterprises 1,410,420 826,220From the County of Brant 46,808 389,462

11,579,571 26,215,636

(c) For the long-term liabilities in (a) of this note, the annual principal payments over the next five years andthereafter are as follows:

2015 3,408,3412016 1,944,4742017 2,025,9302018 2,086,3322019 2,114,494

11,579,571

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16. NET LONG TERM LIABILITIES (continued)

(c) Included in the long term liabilities are the Municipal Non-Profit Housing Corporation mortgages payableto the Canadian Mortgage and Housing Corporation for the corporation’s properties; Beckett Project andBranlyn Meadows Project. The buildings are pledged as security for the mortgages. The mortgages aresummarized as follows:

2014 2013

Beckett Project2.65% first mortgage loan to Canada Mortgage and Housing Corporation, due February 2015, payable in monthly installments of $19,270 on account of principal and interest 1,031,152 1,232,335Branlyn Meadows Project4.37% first mortgage loan to Canada Mortgage and Housing Corporation, due March 2018, payable in monthly installments of $10,023 on account of principal and interest 1,205,489 1,271,994

2,236,641 2,504,329

(d) As at December 31, 2014, the City held $3,954,041 (2013 - $4,354,871) of the net long term liabilitiesoutstanding.

(e) The long term liabilities in (a) issued in the name of the Municipality have received approval of the OntarioMunicipal Board for those approved on or before December 31, 1992. Those approved after January 1, 1993have been approved by by-law. The annual principal and interest payments required to service theseliabilities are within the annual debt repayment limit prescribed by the Ministry of Municipal Affairs andHousing.

17. CHARGES FOR NET LONG TERM LIABILITIES 2014 2013

Total charges for the year for net long term liabilities are as follows:

Principal 3,266,938 3,041,614Interest 1,651,685 1,756,709

4,918,623 4,798,323

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18. ACCUMULATED SURPLUS

Accumulated surplus consists of the following:2014 2013

For the General Reduction of Taxation: (Restated Note 2)

City - operating fund (197,619) 1,446,026Brantford Downtown Business Improvement Area 9,092 19,811Brantford Municipal Non-Profit Housing Corporation 21,076 31,655

(167,451) 1,497,492Capital fund balance 26,384,601 19,822,638Brantford Energy Corporation net investment 55,439,651 53,075,158Reserves 2,109,050 1,903,898Reserve funds 106,137,730 94,533,074Invested in tangible capital assets 704,329,844 707,288,204Invested in land inventory 8,956,820 17,770,612Prepaid expense 5,800,000 -

909,157,696 894,393,584Less: Unfunded liabilities 83,310,436 75,124,219

825,679,809 820,766,857

19. USER CHARGES 2014 2013

User charges are comprised of the following:

Environmental services 3,831,964 4,296,421General government 755,060 810,491Health services 340,564 329,582Planning and development 553,323 633,766Protection services 510,333 485,827Recreation and cultural services 6,721,709 5,836,941Social and family services 675,883 713,946Transportation services 3,856,843 4,097,688Water and wastewater 39,532,558 37,835,715 56,778,237 55,040,377

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20. INCOME FROM BRANTFORD ENERGY CORPORATION

Income from Brantford Energy Corporation received by the City is comprised of the following sources:

2014 2013

Interest earned on promissory notes 1,501,362 1,501,362Dividend received from Brantford Energy Corporation 1,150,000 1,150,000

2,651,362 2,651,362

21. OTHER REVENUES

Other revenues received by the City are comprised of the following sources: 2014 2013

Sale of non inventory items 3,254,982 2,497,902Donations 463,573 643,243Transfer from trust funds 123,570 106,582Service Level Agreements 1,742,483 2,052,632Other recoveries and rebates 4,522,307 3,185,286

10,106,915 8,485,645

22. EMPLOYEE COMPENSATION

The Public Sector Salary Disclosure Act, 1996, requires municipalities to disclose annually the names,positions, salaries and taxable benefits of employees paid $100,000 or more in 2014. In 2014 the City ofBrantford had 123 employees paid $100,000 or more in the calendar year. This information was publishedin the Brantford Expositor and can also be found on the Ministry of Finance website at:

http://www.fin.gov.on.ca/en/publications/salarydisclosure/pssd/orgs.php?organization=municipalities&year=2014

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23. OPERATIONS OF SCHOOL BOARDS

Further to Note 1(a)(iv), the taxation, other revenues and requisitions and the overlevies (underlevies) of theschool boards are comprised of the following:

2014 2013

Taxation and user charges 37,143,467 37,166,377Requisitions 37,143,467 37,166,377

Overlevies (Underlevies) - end of year - -

24. RESERVES AND RESERVE FUNDS

The total balance of reserves and reserve funds of $2,109,050 (2013 - $1,903,898) and $106,137,730 (2013 -$94,533,074) respectively is made up of the following:

2014 2013

Reserves set aside for specific purposes by Council:Library - sick leave 192,093 194,254Library - other 1,916,957 1,709,644Total Reserves 2,109,050 1,903,898Reserve funds set aside for specific purposes by Council:Replacement of equipment 1,835,481 1,231,118Sick leave 3,532,019 3,382,420Insurance 3,028,002 2,642,144Social housing 7,873,590 7,211,232Protection services 2,231,120 2,529,495Transportation 5,083,852 4,140,040Wastewater 27,119,794 26,241,927Waste disposal 2,039,902 2,503,483Industrial development 2,148,000 78,963Water 30,104,399 27,189,178Brownfields 2,468,695 2,185,685Contingencies 2,395,515 2,448,693Other 16,277,361 12,748,696Total Reserve Funds 106,137,730 94,533,074

Total Reserves and Reserve Funds 108,246,780 96,436,972

Page 26



25. CONTRACTUAL OBLIGATION - ONTARIO CLEAN WATER AGENCY (OCWA)

In accordance with an operating service agreement between the Municipality and the Ministry of theEnvironment, the existing wastewater treatment plant is operated by the OCWA. The Municipality isobligated to meet all operating costs related to the plant.

Included in the Consolidated Statement of Operations are the 2014 charges from the OCWA of $4,186,838(2013 - $3,748,253). Information received from the OCWA pertaining to the wastewater treatment plantindicated the following:

Accumulated Net Operating Surplus (Deficit) 2014 2013

Balance - Beginning of Year (441,671) 23,193Deficit paid to (Surplus refunded by) OCWA 441,671 (23,193)Operating expenditures (3,970,248) (4,213,117)Payments made by the city 3,745,167 3,771,446

Balance - End of Year (225,081) (441,671)

The accumulated net operating surplus (deficit) and reserve fund for capital expenditures indicated above arenot reflected in the Consolidated Statement of Financial Position.

26. BUDGET FIGURES

The budget data presented in these consolidated financial statements are based upon the 2014 operatingbudget approved by Council. The budget that was approved by Council was not prepared on a basis consistentwith that used to report actual consolidated financial statement results. The budget was approved on amodified accrual basis while Public Sector Accounting Standards now require a full accrual basis. The chartbelow reconciles the approved budget to the budget figures reported in these consolidated financialstatements. In addition, to ensure comparability of expenses, the allocation of program support costscompleted for actual reporting was also applied to the budget amounts.

Page 27



26. BUDGET FIGURES (continued)

City Council net approved budget $ 0Approved Consolidated Local Board budgets 855,365Add Capital project revenues 15,829,219 Interest on reserve funds 2,254,209 Contributed assets 3,594,089 Deferred revenue earned 4,123,828 Operating expenses resulting in tangible capital assets 455,739 Interest on long term debt 21,792 Net Transfers(from) to reserves and reserve funds 34,373,504 Debt principal repayments 3,224,709Less Loss on sale of tangible capital assets and land inventory (7,534,463) Capital project cost resulting in operating expenses (13,861,274) Amortization (33,257,468) Employee post employment benefits (637,797) Landfill closure and post-closure (10,831,466)Budget Deficit (Full Accrual) (1,390,014)

27. COMPARATIVE FIGURES

Certain of the prior year's figures, provided for purpose of comparison, have been reclassified to conformto the current year's statement presentation.

Page 28



28. CONTINGENT LIABILITIES

(a) Corporation of the City of Brantford

(i) An action has been commenced against the City alleging an ongoing duty to consult with aboriginalpersons. The amount and nature of the possible outcome is not determinable at this time and, as a result, noprovision has been made in the financial statements.

(ii) Certain claims have been commenced against the City related to property expropriation. The amount andnature of the possible outcome is not determinable at this time and as a result no provision has been made inthe financial statements.

(iii) An action has been commenced against the City related to outstanding costs associated with repair to anongoing construction engagement. Subsequent to year end, the City settled the action and provision for thesettlement is recorded in the financial statements.

(iv) A claim has been filed against the City by an individual. The claim relates to the City’s allegedinvolvement with a property developer and related corporations. The amount and nature of any outcomecannot be determined at this time and as a result, no provision has been made in these financial statements. The action is being defended by the City.

(v) A claim has been filed against the City by a corporation. The claim relates to procurement issues withrespect to a capital project. The amount and nature of any outcome cannot be determined at this time and asa result, no provision has been made in these financial statements. The action is being defended by the City.

(vi) The City has been named as a defendant in an action by an individual for wrongful dismissal. The amountand nature of any outcome cannot be determined at this time and as a result, no provision has been made inthese financial statements. The action is being defended by the City.

(vii) The City has been named as a defendant in an action by a corporation alleging unjust enrichment furtherto a construction project involving the installation of water and sewer services. The amount and nature of anyoutcome cannot be determined at this time and as a result, no provision has been made in these financialstatements. The action is being defended by the City.

(viii) A claim has been filed against the City by an individual. The claim relates to the City’s allegednegligence in maintaining sidewalks. The amount and nature of any outcome cannot be determined at thistime and as a result, no provision has been made in these financial statements. The action is being defendedby the City.

(ix) A claim has been filed against the City alleging it had no right to levy taxes on lands held in trust for anaboriginal band as the lands were exempt from taxation. The amount and nature of any outcome cannot bedetermined at this time and as a result, no provision has been made in these financial statements.

Page 29



28. CONTINGENT LIABILITIES (continued)

(x) A claim has been commenced against the City by an individual. The claim alleges that the City isinappropriately retained securities held under contract for certain works. The amount and nature of thepossible outcome is not determinable at this time and, as a result, no provision has been made in the financialstatements. The action is being defendant by the City.

(xi) Two claims have been filed against the City by two corporations alleging they have a right to aconstruction lien. The amount and nature of the possible outcome is not determinable at this time and, as aresult, no provision has been made in the financial statements. The action is being defended by the City.

(xii) A claim has been commenced against the City by a corporation. The claim relates to procurement issueswith respect to the City’s tender of the landfill management contract. The amount and nature of the possibleoutcome is not determinable at this time, and, as a result, no provision has been made in the financialstatements. The action is being defended by the City.

(b) Brantford Energy Corporation

(i) General Liability Insurance - The Company has obtained general liability and enhanced directors andofficers insurance coverage from the Municipal Electric Association Reciprocal Insurance Exchange (TheMearie Group) expiring January 1, 2016. The Mearie Group is an insurance reciprocal whereby all membersthrough the unincorporated group share risks with each other. Members of the Mearie Group are assesseda premium deposit at policy execution. Should the group experience losses that are in excess of theaccumulated premium deposits of its members combined with reserves and supplementary insurance,members would be assessed a supplementary or retro assessment on a pro-rata basis for the years in whichthe Company was a member.

As at December 31, 2014, the Company has not been made aware of any additional assessments. Participationin The Mearie Group covers a three year underwriting period which expires on January 1, 2016.

Page 30

CORPORATION OF THE CITY OF BRANTFORDNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor the year ended December 31, 2014

29. CONTRACTUAL OBLIGATIONS AND COMMITMENTS

(a) Corporation of the City of Brantford

(i) Wilfrid Laurier UniversityThrough an agreement in 2011, the City has committed a grant for the development of a new AcademicCentre. The grant in the amount of $1,300,000 is to be paid to the University in annual instalments. Theremaining amount will be paid as follows:

$175,000 for years 2015 to 2017$150,000 for the year 2018

(ii) St. Joseph’s Health Care SystemThrough an extension of the agreement in 2014, the City has committed to subsidize $1,720,800 for theoperation of the St. Joseph’s Lifecare Centre until 2018. The amount of annual subsidy will be paid asfollows:

$688,320 for the year 2015$516,240 for the year 2016$344,160 for the year 2017$172,080 for the year 2018

(iii) Stedman Community HospiceThrough a resolution of City Council in 2011, the City has committed to provide the Stedman CommunityHospice $1,200,000. The funds can be used by the Hospice for capital purposes only. The remaining amountof $240,000 will be advanced in 2015.

(iv) YMCA/Laurier ProjectThrough an agreement in 2014, the City has committed a grant to Wilfrid Laurier University and The YMCAof Hamilton/Burlington/Brantford for the construction of the Laurier Brantford YMCA Athletic Complex. The grant in the amount of $5,210,000 is to be paid in annual instalments. Commencing in 2016, $521,000will be paid annually over 10 years.

(v) Financing LeasesThe City has entered into financing leases for various equipment, vehicles, and properties with annual leasepayments as follows:

2015 - 1,701,336 2016 - 1,524,552 2017 - 1,373,847 2018 - 1,255,280 2019 to 2025 - 7,027,634

(b) Brantford Energy Corporation

(i) The Company has contracted Wajax Power Systems (Wajax) to provide operations and maintenanceservices for an initial period of ten years expiring in 2020. The Company also has an option to extend the termof these services for an additional ten years. The annual amount due to Wajax for these services isapproximately $700,000.

(ii) The Company has also entered into an agreement with the City allowing the Company access to theMohawk Street landfill to install, operate and maintain a landfill gas collection and utilization system. Thisagreement expires August 22, 2030.

Page 31

CORPORATION OF THE CITY OF BRANTFORDTangible Capital Assets - Continuity Schedule SCHEDULE 1

For the year ended December 31, 2014 Land

Land Improvements Building

Machinery & Equipment

InfrastructureAssets UnderConstruction

2014 Total(incl WIP)

2013 Total(incl WIP)

Total Historical Cost:Balance: Beginning of year 36,148,962 52,223,567 277,536,759 74,627,649 809,033,716 6,299,619 1,255,870,272 1,231,000,132Add: Additions during the year - 2,207,546 4,206,947 6,448,760 18,078,987 5,893,429 36,835,669 66,585,965Less: Disposals during the year 1,540,321 5,150 3,546,523 2,386,116 2,211,607 1,695,980 11,385,697 41,715,825Balance: End of year 34,608,641 54,425,963 278,197,183 78,690,293 824,901,096 10,497,068 1,281,320,244 1,255,870,272

Accumulated Amortization:

Balance: Beginning of year 169,852 25,424,028 135,167,080 44,175,685 343,645,423 - 548,582,068 521,074,337Add: Amortization expense - 2,133,640 8,157,079 5,883,812 17,351,413 - 33,525,944 31,944,084Less: Accumulated amortization on disposals - 5,150 1,191,277 2,189,283 1,731,901 - 5,117,612 4,436,353Balance: End of year 169,852 27,552,518 142,132,882 47,870,214 359,264,935 - 576,990,400 548,582,068

Total: NET BOOK VALUE 34,438,789 26,873,445 136,064,301 30,820,079 465,636,161 10,497,068 704,329,844 707,288,204

Page 32

CORPORATION OF THE CITY OF BRANTFORDSEGMENTED INFORMATION SCHEDULE 2

The City of Brantford is a single tier municipality that provides a wide range of services to its citizens. The major services chosen for segmented disclosure are thosefor which the percentage of annual operating expenditures is greater than 10% of the Corporation’s total operating expenditures. The revenues and expendituresreported for each segment includes directly attributable amounts as well as internal charges and recoveries allocated on a reasonable basis. A description of each major service and the activities each provide are as follows:

Police Services The City of Brantford Police service enhances the quality of life for all citizens and responds to their changing needs by ensuring and promoting public safety inpartnership with our community.

Services provided include preserving peace by preventing crime, providing assistance and encouragement to persons in the prevention of these offences, apprehendingcriminals, laying charges, executing warrants and enforcing City of Brantford municipal bylaws.

Social and Family Services Social and Family services ensures a healthy community by providing a social infrastructure to the Citizens of Brantford. Services include general assistance, incomesupport, employment assistance, childcare, affordable housing and assistance to aged persons.

Transportation Services The Transportation services department is responsible for the safe and efficient movement of people and goods within the City of Brantford. Responsibilities includeroad construction and maintenance, traffic signals and signs, winter control, transit operation, developing parking and traffic control bylaws, implementation andmaintenance of street lighting, and management and maintenance of parking garages and lots.

Environmental ServicesEnvironmental services include sanitary sewer system, storm sewer system, waterworks, waste collection, waste disposal and recycling. Responsibilities include water treatment and maintenance, water distribution, water quality, water conservation, the water pollution control plant, pumping stations,pollution control, storm and sanitary sewer maintenance, curbside garbage collection, waste diversion, yard waste management, household hazardous waste dayevents and landfill site operations.

Recreation and Cultural Services This segment includes parks, recreation programs, recreation facilities, golf courses, libraries and cultural services. Responsibilities include management andprovision of recreational services, facilities and programs, administration and maintenance of the main library and St. Paul Avenue branch, operation and maintenanceof two public golf courses, preservation of art galleries, museums and the Sanderson Centre for the Performing Arts.

Page 33



PoliceServices

General Assistance

Social Service &Social Housing

TransportationServices

EnvironmentalServices

Recreational &Cultural Services

Other Services [1]

Consolidated2014

RevenuesTaxation revenues - - - - - - 131,289,499 131,289,499Grants 1,539,893 24,176,589 21,779,719 10,216,500 893,307 1,375,194 1,733,079 61,714,281Revenue from other municipalities 9,195 435,182 3,048,779 - 453,267 5,937 26,925 3,979,285Other revenues [2] 944,808 1,310,195 6,707,516 13,605,226 47,749,057 9,552,971 12,779,841 92,649,614Government Business Enterprise - - - - - - 2,931,070 2,931,070Total Revenues 2,493,896 25,921,966 31,536,014 23,821,726 49,095,631 10,934,102 148,760,414 292,563,749

Expenditures Salaries, wages and benefits 26,835,293 7,943,154 13,505,402 15,249,519 6,745,656 14,979,365 36,191,763 121,450,152Materials 1,946,402 903,235 8,065,442 13,178,819 16,888,556 7,598,460 8,986,119 57,567,033Contracted services 701,467 1,596,379 4,460,047 1,428,806 10,424,886 708,812 9,593,781 28,914,178External transfers 26,544 19,790,937 14,184,724 1,435,890 127,727 401,141 5,101,937 41,068,900Amortization 560,371 78,902 3,071,448 8,575,873 13,150,965 5,780,888 2,307,501 33,525,948Debt servicing - - 178,628 19,443 1,238,693 76,642 138,280 1,651,686Change in Equity for GovernmentBusiness Enterprise - - - - - - (2,364,493) (2,364,493)

Other expenditures [3] 2,766,401 1,952,996 1,397,883 748,166 5,956,470 2,297,108 (9,281,631) 5,837,393Total Expenditures 32,836,478 32,265,603 44,863,574 40,636,516 54,532,953 31,842,416 50,673,257 287,650,797

Annual Surplus (Deficit) (30,342,582) (6,343,637) (13,327,560) (16,814,790) (5,437,322) (20,908,314) 98,087,157 4,912,952

[1] Other Services - Includes General Government, Protection Services (excluding Police Services), Health Services, Planning and Development and Utility operation.

[2] Other Revenues - Includes licenses, permits, interest, donations, sale of equipment, contributed capital assets and publications, gaming revenues and user charges. [3] Other Expenditures - Includes tax write-offs, rents and financial expenses, inter-functional adjustments, allocation of program support and loss on disposal oftangible capital assets.

Page 34



PoliceServices

General Assistance

Social Service &Social Housing

TransportationServices

EnvironmentalServices

Recreational &Cultural Services

Other Services [1]

Consolidated2013

(Restated)

RevenuesTaxation revenues - - - - - - 128,532,084 128,532,084Grants 1,311,087 24,119,606 22,432,576 4,333,058 1,504,283 539,389 585,322 54,825,321Revenue from other municipalities - 515,024 3,312,150 - 510,149 4,656 37,560 4,379,539Other revenues [2] 609,544 105,531 7,664,803 7,791,182 45,768,907 10,123,675 18,844,404 90,908,046Government Business Enterprise - - - - - - 2,931,070 2,931,070Total Revenues 1,920,631 24,740,161 33,409,529 12,124,240 47,783,339 10,667,720 150,930,440 281,576,060

Expenditures Salaries, wages and benefits 25,399,661 7,521,812 12,812,839 13,409,801 6,648,838 14,197,554 34,780,064 114,770,569Materials 1,581,336 458,276 5,783,431 7,387,668 4,141,534 4,873,100 8,684,861 32,910,206Contracted services 1,051,938 303,969 18,739,995 5,118,163 12,210,061 2,613,269 11,969,026 52,006,421External transfers 8,097 21,018,911 4,422,442 2,087,494 75,540 539,914 4,709,455 32,861,853Amortization 579,678 83,396 2,675,052 7,483,827 14,346,482 4,524,215 2,251,434 31,944,084Debt servicing - - 187,341 23,133 1,299,635 85,466 161,134 1,756,709Change in Equity for GovernmentBusiness Enterprise - - - - - - 9,927,977 9,927,977

Other expenditures [3] 2,688,026 1,524,843 1,648,512 53,668 5,382,873 2,765,995 (8,590,563) 5,473,354Total Expenditures 31,308,736 30,911,207 46,269,612 35,563,754 44,104,963 29,599,513 63,893,388 281,651,173

Annual Surplus (Deficit) (29,388,105) (6,171,046) (12,860,083) (23,439,514) 3,678,376 (18,931,793) 87,037,052 (75,113)

[1] Other Services - Includes General Government, Protection Services (excluding Police Services), Health Services, Planning and Development and Utility operation.

[2] Other Revenues - Includes licenses, permits, interest, donations, sale of equipment, contributed capital assets and publications, gaming revenues and user charges.

[3] Other Expenditures - Includes tax write-offs, rents and financial expenses, inter-functional adjustments, allocation of program support and loss on disposal of tangible capitalassets.

[4] During 2014 the City implemented a new chart of accounts and it was not reasonably determinable to adjust the 2013 amounts on a basis consistent with 2014. As a result thesegmented information for 2013 cannot be used as a comparison to 2014 segmented information. The financial data provided in 2014 delivers a more accurate representation ofthe City’s activities.

Page 35

INDEPENDENT AUDITORS’ REPORT To the Members of Council, Inhabitants and Ratepayers of the Corporation of the City of Brantford We have audited the accompanying financial statements of the Trust Funds of the Corporation of the City of Brantford, which comprise the statement of financial position as at December 31, 2014, and the statement of continuity for the year then ended, and a summary of significant accounting policies and other explanatory information. The financial statements have been prepared by management based on the financial reporting provisions prescribed by the Ontario Ministry of Municipal Affairs and Housing. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with the financial reporting provisions of the Ontario Ministry of Municipal Affairs and Housing, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors' Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors' judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements present fairly, in all material respects, the financial position of the Trust Funds of the Corporation of the City of Brantford as at December 31, 2014, and the continuity of trust funds for the year then ended in accordance with the financial reporting provisions of the Ontario Ministry of Municipal Affairs and Housing.

Millard, Rouse & Rosebrugh LLPBrantford • Hagersville • Simcoe • Delhi • Norwich • Tillsonburg



Basis of Accounting and Restriction on Use Without modifying our opinion, we draw attention to Note 1 to the financial statements, which describes the basis of accounting. The financial statements are prepared to assist the Corporation of the City of Brantford to comply with the reporting provisions of the Ministry of Municipal Affairs and Housing. As a result, the financial statements may not be suitable for another purpose. Our report is intended solely for the Corporation of the City of Brantford and should not be used by parties other than the Corporation of the City of Brantford. April 10, 2015 CHARTERED PROFESSIONAL ACCOUNTANTS Brantford, Ontario Licensed Public Accountants

See accompanying notes Page38

CORPORATION OF THE CITY OF BRANTFORD Trust Funds STATEMENT OF FINANCIAL POSITION


ASSETS Current Assets Cash (Note 2) 1,268,376 2,189,341Investments - at cost (Note 3) Municipal - own 1,340,048 1,438,247 External - Banks 1,203,294 -Accrued interest on investments 35,688 28,514Inventory 4,593 4,593Due from the City of Brantford - 130,597

3,851,999 3,791,292

LIABILITIES Due to the City of Brantford 30,407 -Accrued accounts payable - 174 30,407 174FUND BALANCE 3,821,592 3,791,118

3,851,999 3,791,292


CORPORATION OF THE CITY OF BRANTFORD Trust Funds STATEMENT OF CONTINUITY For the year ended December 31, 2014 Cemeteries Dormant Subdivision

Care and Mausoleum Community Subdivision Maintenance

Total Maintenance Endowment Committees Deficiencies Agreements

Balance - Beginning of Year 3,791,118 3,043,211 74,808 53,682 295,092 88,672

Revenues Investment income 97,883 90,617 847 648 3,560 1,070Principal deposits received 1,311,646 - - - - -

Sale of plots/crypts 52,115 52,115 - - - -Monument care and maintenance 8,850 8,850 - - - -Police Services auction proceeds 5,359 - - - - -Police Services seized funds - - - - - - 1,475,853 151,582 847 648 3,560 1,070

Expenditures Appropriations to other funds: Current operations 123,570 90,617 - 477 - -Refund of deposits 1,298,483 - - - - -Trust Fund transfer - - - - - -Equipment and services for residents and staff 23,326 - - - - - 1,445,379 90,617 - 477 - -

Balance - End of Year 3,821,592 3,104,177 75,655 53,853 298,652 89,742


CORPORATION OF THE CITY OF BRANTFORD Trust Funds STATEMENT OF CONTINUITY For the year ended December 31, 2014 Sewer Designated Police Services Client Funds

Prepaid Local Property Auction Management John Noble Home

Improvements Grants Proceeds Trusteeship Residents General

Balance - Beginning of Year 5,958 50,153 39,387 89,311 26,035 24,809

Revenues Investment income 72 605 371 - - 93Principal deposits received - - - 1,179,061 121,576 11,009Sale of plots/crypts - - - - - -Monument care and maintenance - - - - - -Police Services auction proceeds - - 5,359 - - -Police Services seized funds - - - - - - 72 605 5,730 1,179,061 121,576 11,102

Expenditures Appropriations to other funds: Current operations - - 32,476 - - -Refund of deposits - - - 1,172,428 126,055 -Trust Fund transfer - - - - - -Equipment and services for residents and staff - - - - - 23,326 - - 32,476 1,172,428 126,055 23,326

Balance - End of Year 6,030 50,758 12,641 95,944 21,556 12,585

CORPORATION OF THE CITY OF BRANTFORD Trust Funds NOTES TO THE FINANCIAL STATEMENTS For the year ended December 31, 2014 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The financial statements of the Trust Funds of the Corporation of the City of Brantford are the representation of management prepared in accordance with accounting policies prescribed for Ontario Municipalities by the Ministry of Municipal Affairs and Housing. Since precise determination of many assets and liabilities is dependent upon future events, the preparation of periodic financial statements necessarily involves the use of estimates and approximations. These have been made using careful judgements.

(a) Basis of Accounting

Capital receipts and income are reported on the accrual basis of accounting. Expenditures and capital disbursements are reported on the accrual basis of accounting which recognizes expenditures as they are incurred and measurable as a result of the receipt of goods or services and the creation of the legal obligation to pay.

(b) Inventory

The inventory of mausoleum crypts recorded in the Mausoleum Endowment Trust Fund is recorded at cost.

(c) Investments

Premiums or discounts on the purchase of investments are recognized on acquisition. 2. CASH

All cash is invested in an interest bearing bank account, with the exception of the Client Funds Management Trusteeship bank account.

3. INVESTMENTS

Trust fund investments of $2,543,342 (2013 - $1,438,247) reported on the Statement of Financial Position at cost, have a fair market value of $2,808,349 (2013 - $1,601,318) at the end of the year.

The investments yield interest rates from 2.50% to 5.87% and have maturity dates ranging from 2015 to 2039.

4. STATEMENT OF CASH FLOWS

A statement of cash flows has not been provided as the information is readily available in the financial

statements provided.


To the Board Members ofThe Public Library Board, Members of Council, Inhabitants andRatepayers of the Corporation of the City of Brantford

We have audited the accompanying financial statements of the Brantford Public Library Board, which comprisethe statement of financial position as at December 31, 2014, and the statement of operations, statement of changesin net financial assets and statement of cash flows for the year then ended, and a summary of significantaccounting policies and other explanatory information.

Management's Responsibility for the Financial StatementsManagement is responsible for the preparation and fair presentation of these financial statements in accordancewith Canadian public sector accounting standards, and for such internal control as management determines isnecessary to enable the preparation of financial statements that are free from material misstatement, whether dueto fraud or error.

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

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in thefinancial statements. The procedures selected depend on the auditors' judgment, including the assessment of therisks of material misstatement of the financial statements, whether due to fraud or error. In making those riskassessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of thefinancial statements in order to design audit procedures that are appropriate in the circumstances, but not for thepurpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includesevaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates madeby 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 ourqualified audit opinion.

Page 1Millard, Rouse & Rosebrugh LLP

Brantford • Hagersville • Simcoe • Delhi • Norwich • Tillsonburg



Basis for Qualified OpinionIn common with many non-profit organizations, the Board derives revenue from donations, the completeness ofwhich is not susceptible to satisfactory auditing verification. Accordingly, our verification of these revenues waslimited to the amounts recorded by the Board. Therefore, we were not able to determine whether any adjustmentsmight be necessary to net assets and accumulated surplus as at December 31, 2014 and to donation revenue,excess of revenues over expenses, and cash flows from operations for the year then ended. Our audit opinion onthe financial statements for the year ended December 31, 2013 was also modified because of the possible effectsof this limitation in scope.

Qualified OpinionIn our opinion, except for the effects, if any, of the matter described in the Basis for Qualified Opinion paragraph,the financial statements present fairly, in all material respects, the financial position of the Brantford PublicLibrary Board as at December 31, 2014 and the results of its operations, changes in net assets, and cash flows forthe year then ended in accordance with Canadian public sector accounting standards.

April 16, 2015 CHARTERED PROFESSIONAL ACCOUNTANTSBrantford, Ontario Licensed Public Accountants

Page 2

BRANTFORD PUBLIC LIBRARY BOARD

STATEMENT OF FINANCIAL POSITION


Financial AssetsCash 2,243,690 1,942,460Accounts receivable 69,409 211,411Employee computer purchase loans (Note 2) 2,667 4,258

2,315,766 2,158,129

Financial LiabilitiesAccounts payable and accrued liabilities 200,372 238,071Deferred revenue (Note 3) 14,649 16,161Vested sick leave payable (Note 4) 192,093 194,254

407,114 448,486

Net Financial Assets 1,908,652 1,709,643

Non-Financial AssetsPrepaid expenses 8,305 -Tangible capital assets (Schedule 4) 6,642,376 6,955,159

Total Net Assets 8,559,333 8,664,802

Accumulated Surplus - End of Year (Note 5) 8,559,333 8,664,802

See accompanying notes Page 3


STATEMENT OF OPERATIONS

For the year ended December 31 2014 2013

Revenues (Schedule 1)Government transfers 4,294,222 4,168,769Other revenue 333,674 347,657

4,627,896 4,516,426

Expenses (Schedule 2)Salaries and benefits 3,183,521 3,141,009Building 226,249 244,714Other operating expenses 209,669 212,299Administrative expenses 117,179 154,127

3,736,618 3,752,149

Income Before Under-noted Item 891,278 764,277

Other Income/(Expense)Amortization of tangible capital assets (996,747) (1,007,761)

Annual Surplus/(Deficit) from Operations (105,469) (243,484)Accumulated Surplus - Beginning of Year 8,664,802 8,908,286

Accumulated Surplus - End of Year (Note 5) 8,559,333 8,664,802



STATEMENT OF CHANGES IN NET FINANCIAL ASSETS


Annual Surplus/(Deficit) from Operations (105,469) (243,484)Amortization of tangible capital assets 996,747 1,007,761Acquisition of tangible capital assets (683,964) (656,115)Change in prepaid expense (8,305) -

Increase (Decrease) in Net Financial Assets 199,009 108,162Net Financial Assets - Beginning of Year 1,709,643 1,601,481

Net Financial Assets - End of Year 1,908,652 1,709,643



STATEMENT OF CASH FLOWS


Cash Flows From Operating ActivitiesAnnual Surplus/(Deficit) (105,469) (243,484)

Non-cash charges to operations:Amortization 996,747 1,007,761

891,278 764,277

Sources (Uses) of Cash:(Increase)/Decrease in accounts receivable 142,002 21,455(Increase)/Decrease in prepaid expenses (8,305) -Increase/(Decrease) in accounts payable and accrued liabilities (37,699) (43,156)(Increase)/Decrease in employee computer purchase loans 1,591 4,718Increase/(Decrease) in deferred revenue (1,512) (9,356)Increase/(Decrease) in vested sick leave (2,161) 13,264

93,916 (13,075)

Cash Flows From Capital ActivitiesAcquisition of tangible capital assets (683,964) (656,115)

Net Increase (Decrease) in Cash and Cash Equivalents 301,230 95,087Opening Cash and Cash Equivalents 1,942,460 1,847,373

Closing Cash and Cash Equivalents 2,243,690 1,942,460



NOTES TO THE FINANCIAL STATEMENTSFor the year ended December 31, 2014


The financial statements are the representation of management prepared in accordance with Canadiangenerally accepted accounting principles prescribed by the Public Sector Accounting Board of theChartered Professional Accountants of Canada.

(a) MeasurementSince precise determination of many assets and liabilities is dependent upon future events, thepreparation of periodic financial statements necessarily involves the use of estimates andapproximations. These have been made using careful judgments.

(b) Basis of Accounting i) Accrual Basis of Accounting

Expenditures and related sources of financing are reported on the accrual basis of accounting. Theaccrual basis of accounting recognizes revenues in the period in which transactions or eventsoccurred that gave rise to the revenues; expenditures are recognized in the period the goods andservices are acquired and a liability is incurred or transfers are due.

ii) Non-financial Assets, Tangible Capital AssetsNon-financial assets are not available to discharge existing liabilities and are held for use in theprovision of services. They have useful lives extending beyond the current year, and are notintended for sale in the ordinary course of operations. The change in non-financial assets duringthe year, together with the income (deficit) from operations, provides the change in net financialassets for the year.

Tangible capital assetsTangible capital assets are recorded at cost, which includes all amounts that are directly attributableto acquisition, construction, development or betterment of the asset. The cost, less residual value,of the tangible capital assets are amortized on a straight-line basis over their estimated useful livesas follows:

Land improvements 20 yearsBuildings 40 yearsBuilding improvements 10 to 20 yearsMachinery and Equipment 10 to 20 yearsTechnology Equipment 3 to 4 yearsBooks 7 yearsFurniture and Fixtures 10 years

Contribution of tangible capital assetsTangible capital assets received as contributions are recorded at their fair value at the date ofreceipt, and that fair value is also recorded as revenue. Similarly, transfers of assets to third partiesare recorded as an expense equal to the net book value of the asset as of the date of transfer.

Page 7




(c) Reserves Reserves are established by the Board for specific expenditures as follows:

a) Grant Opportunity & Projects - To fund projects and to match funds provided by the provincialand/or federal government.

b) New Media - This fund has been consolidated with the Grant Opportunity reserve under thenew name Grant Opportunities & Projects.

c) Equipment - To provide funds for replacement of library equipment.d) Automated Equipment - To provide funds to upgrade the Information System.e) Sick Leave - To provide funds for sick leave as described in Note 4. f) Material Acquisition - To provide funds for material acquisition commitments of the current

year.

(d) Brantford Public Library TrustIn 1993, the Board established the Brantford Public Library Trust. The objectives of the Trust areto enhance book collections and user access, to fund capital purchases and to match funds forcertain programs from time to time as established by the Board.

The activities of the Trust are to be carried out through two funds. The Endowment Fund is toinclude all monetary gifts and bequests. The Special Purpose Fund is to include all monetary giftsand bequests for which the donor has, as a condition, required the gift or bequest to be used forspecific purposes. To date, no donations have been received in this fund.

Income earned in the Special Purpose Fund will be added to the capital of the Endowment Fund,unless such an addition contravenes any condition made by a donor to the Special Purpose Fund.

(e) Revenue RecognitionGrants, service charges and other revenues are recognized in the year of receipt. Revenue relatingto specified expenditures not yet incurred is recorded as deferred revenue and recognized when thespecified expenditure is made.

(f) Government TransfersGovernment transfers are the transfer of assets from senior levels of government and are not theresult of any exchange transactions, meaning there is no expectation to repay the amounts in thefuture. Government transfers are recognized in the fiscal year in which events giving rise to thetransfer occur, providing the transfer is authorized, any eligibility criteria have been met andreasonable estimates of the amounts can be made.

2. EMPLOYEE COMPUTER PURCHASE LOANS

The Library offers its employees loans to purchase home computers. These loans are to be repaid over atwo year period from the date of the loan. $1,737 of the loans outstanding are expected to be repaid in2015.

Page 8



3. DEFERRED REVENUE 2014 2013

Lost book recovery 14,649 16,161

4. LIABILITY FOR VESTED SICK LEAVE BENEFITS

Under the sick leave benefit plan, unused sick leave can accumulate and employees may become entitledto a cash payment when they leave the library's employment. The liability for these accumulated days, tothe extent that they have vested and could be taken in cash by an employee on termination, amounted to$192,093 (2013 - $194,254) at the end of the year. An amount of $15,915 (2013 - nil) was paid toemployees who left the library during the year. A reserve has been established to provide for this pastservice liability. The balance at the end of the year is $192,093 (2013 - $194,254). Anticipated paymentsover the next five years to employees who are eligible to retire are as follows:

2015 21,5372016 -2017 -2018 -2019 -

5. ACCUMULATED SURPLUS 2014 2013

Accumulated Surplus consists of the following:Invested in tangible capital assets 6,642,376 6,955,159Reserve Funds (Schedule 3) 1,884,709 1,682,288Endowment Fund (Schedule 3) 224,341 221,609Operations (192,093) (194,254)Balance- End of Year 8,559,333 8,664,802

6. PENSION AGREEMENTS

The Library makes contributions to the Ontario Municipal Employees Retirement Fund (OMERS), whichis a multi-employer plan, on behalf of 46 (2013 - 45) members of its staff. The plan is a defined benefitplan which specifies the amount of the retirement benefit to be received by the employees based on thelength of service and rates of pay.

The amount contributed to OMERS for 2014 was $203,571 (2013 - $204,131) for current service.

The OMERS pension plan has a deficit. If actuarial surpluses are not available to offset the existingdeficit and subsidize future contributions, increases in contributions may be required in the future.

7. COMMITMENTS

The Library has committed to the purchase of $135,692 (2013 - $108,434) books at year end. Thesebooks will be acquired in 2015 and will be funded by the Material Acquisition reserve.

Page 9



8. FINANCIAL INSTRUMENTS

Fair ValueThe fair value of financial instruments, such as cash and short-term investments, accounts receivable andaccounts payable, are determined to approximate their recorded values. The fair value of marketablesecurities is based on quoted market values as at year end.

Credit RiskThe Library’s credit risk relates to its accounts receivables. The risk of significant loss is consideredremote.

9. BUDGET AMOUNTS

The Library board budget is developed in accordance with the City of Brantford budget process. Thebudget is set and approved, whereby all costs are anticipated to be expended during the fiscal year. Thebudget figures presented in the financial statements have been adjusted to reflect the accrual basis ofreporting and consequently, all budget amounts related to non-financial asset expenditures have beenremoved. The Brantford Public Library Board operated within its 2014 approved budget.

10. CAPITAL MANAGEMENT

The Library's objective in managing its capital is to maintain financial stability in order to safeguard itsability to continue to provide access to knowledge, literacy and leisure pursuits to its members.

The Library also has a development charges reserve fund held with the City of Brantford in the amount of$1,310,930. This reserve is not an asset of the Library as City Council has control over the funds. Thefunds are to be used for the betterment and for capital projects of the Library.


Certain of the prior year's figures, provided for purpose of comparison, have been reclassified to conformto the current year's statement presentation.

Page 10


SCHEDULE OF REVENUES SCHEDULE 1

Budget Actual ActualFor the year ended December 31 2014 2014 2013

(Note 9)Government Transfers City of Brantford - Operations 4,096,900 4,119,604 3,998,274Ministry of Tourism, Culture and Sport

- Operating 150,800 150,751 150,751- Internet Connectivity 5,200 5,092 5,274- Capacity Building Grant - - 5,270

Ministry of Government Services - Service Ontario - 850 850Ministry of Training, Colleges and Universities 3,900 3,974 5,887Human Resources & Skills Development Canada - Canada Summer Jobs 3,000 2,640 2,463 - Young Canada Works 12,000 11,311 -

4,271,800 4,294,222 4,168,769

Other RevenueFines 75,000 65,545 70,618Cards 1,700 1,358 1,807Books sold, lost, damaged or discarded 14,000 16,161 15,817Photocopier and reader printer 18,000 16,801 15,661Contract services 182,000 183,047 191,802Sundry 3,200 6,356 4,681Interest earned - Fund/Reserve 15,000 27,336 25,647Donations - operating 5,000 3,306 4,288Meeting - rental space 8,200 3,040 6,200Non-residence fees 12,000 10,724 11,136

334,100 333,674 347,657

Total Revenue 4,605,900 4,627,896 4,516,426

Page 11


SCHEDULE OF EXPENSES SCHEDULE 2


(Note 9)Salaries and BenefitsSalaries Staff salaries 2,732,800 2,561,596 2,549,589 Read-On Staff 37,400 52,119 43,815Employee benefits 598,600 569,806 547,605

3,368,800 3,183,521 3,141,009

BuildingLight, heat, water 105,400 111,411 111,869Repairs and maintenance 63,400 54,686 73,169Security 53,300 52,048 53,329Insurance 14,000 8,104 6,347

236,100 226,249 244,714

Other Operating ExpensesAutomated services 151,100 148,707 125,211Internet connectivity 35,300 29,210 27,897New equipment purchases 7,300 7,197 26,721Programming 12,300 11,098 18,276Photocopier rental and supplies 8,100 5,823 5,470Book recoveries 7,400 6,118 6,989Book transportation 1,500 1,516 1,735

223,000 209,669 212,299

Administrative ExpensesStationary and software 6,800 14,090 8,675Communications 12,000 12,075 11,828Postage and freight 4,600 4,434 3,844Professional fees 18,400 23,578 67,027Memberships and staff training 22,200 25,027 24,528Marketing and publicity 32,100 27,245 29,405Volunteer and miscellaneous 8,300 10,730 8,820

104,400 117,179 154,127

3,932,300 3,736,618 3,752,149

Page 12


SCHEDULE OF CONTINUITY OF RESERVES AND TRUST SCHEDULE 3

For the year ended December 31, 2014Grant

Opportunity &Projects

NewMedia Equipment

Reserves

Balance - Beginning of Year 63,776 70,883 581,380Transfers (to)/from Reserves 70,883 (70,883) -Transfers from Operations 31,660 - 95,033Transfers to Operations (5,000) - (10,000)Balance - End of Year 161,319 - 666,413

For the year ended December 31, 2014AutomatedEquipment

Sick LeaveReserve

MaterialAcquisition

(Note 4)Reserves

Balance - Beginning of Year 663,562 194,254 108,434Transfers from Operations 96,046 13,754 135,692Transfers to Operations (30,416) (15,915) (108,434)Balance - End of Year 729,192 192,093 135,692

For the year ended December 31, 2014Endowment

Fund

Brantford Public Library Trust

Balance - Beginning of Year 221,609Transfers from Operations 2,732Transfers to Operations -Balance - End of Year 224,341

Page 13


SCHEDULE OF TANGIBLE CAPITAL ASSETS SCHEDULE 4

LandLand

Improvements BuildingBuilding

ImprovementsMachinery &

Equipment 2014 Total 2013 TotalCostBalance - Beginning of Year 638,133 3,920 1,445,667 8,105,551 6,926,749 17,120,020 17,053,202Add: Additions during the year - 3,073 - 23,797 657,094 683,964 656,115Less: Disposals during the year - - - - 561,459 561,459 589,297Balance - End of Year 638,133 6,993 1,445,667 8,129,348 7,022,384 17,242,525 17,120,020

Accumulated AmortizationBalance - Beginning of Year - 1,567 963,597 4,939,896 4,259,801 10,164,861 9,746,397Add: Amortization during the year - 204 33,186 239,828 723,529 996,747 1,007,761Less: Accumulated amortization on

disposals - - - - 561,459 561,459 589,297Balance - End of Year - 1,771 996,783 5,179,724 4,421,871 10,600,149 10,164,861Net Book Value of Tangible Capital Assets 638,133 5,222 448,884 2,949,624 2,600,513 6,642,376 6,955,159

Page 14


To the Chair and Members of theBrantford Municipal Non-Profit Housing Corporation

We have audited the accompanying financial statements of Brantford Municipal Non-Profit Housing Corporation,which comprise the statement of financial position as at December 31, 2014, the statement of changes in netassets, the statements of operations of Beckett Project - Shelter, Beckett Project - Non-Shelter, and BranlynMeadows Project - Shelter, the statement of replacement reserve funds, and a summary of significant accountingpolicies and other explanatory information. The financial statements have been prepared by management ofBrantford Municipal Non-Profit Housing Corporation based on the financial reporting provisions of the OntarioMinistry of Municipal Affairs and Housing.

Management's Responsibility for the Financial StatementsManagement is responsible for the preparation and fair presentation of these financial statements in accordancewith the financial reporting provisions of the Ontario Ministry of Municipal Affairs and Housing, and for suchinternal control as management determines is necessary to enable the preparation of financial statements that arefree from material misstatement, whether due to fraud or error.


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


OpinionIn our opinion, the financial statements present fairly, in all material respects, the financial position of BrantfordMunicipal Non-Profit Housing Corporation as at December 31, 2014 and the results of its operations for the yearthen ended in accordance with the financial reporting provisions of the Ontario Ministry of Municipal Affairs andHousing.





Basis of Accounting and Restriction on Distribution and UseWithout modifying our opinion, we draw attention to Note 1 to the financial statements, which describes the basisof accounting. The financial statements are prepared to assist Brantford Municipal Non-Profit HousingCorporation to comply with the financial reporting provisions referred to above. As a result, the financialstatements may not be suitable for another purpose. Our report is intended solely for the Directors of BrantfordMunicipal Non-Profit Housing Corporation, the service manager, and the Ontario Ministry of Municipal Affairsand Housing and should not be distributed or used by parties other than the Directors of Brantford MunicipalNon-Profit Housing Corporation, the service manager, and the Ontario Ministry of Municipal Affairs andHousing.


Page 57

BRANTFORD MUNICIPAL NON-PROFIT HOUSING CORPORATION



ASSETSCurrent AssetsAccounts receivable - rent 6,361 10,082Prepaid expenses 15,751 11,467Investments (Market value - $919,716; 2013 - $897,185) 941,823 924,663

963,935 946,212Property, Plant and Equipment (Note 2) 2,629,552 2,897,240

3,593,487 3,843,452

LIABILITIESCurrent LiabilitiesAccounts payable and accrued expenses 6,742 7,438Due to City of Brantford 546,779 501,865Prepaid rent 6,045 5,694Due to Service Manager - City of Brantford 15,368 54,656Current portion of long term liabilities (Note 3) 280,973 267,688

855,907 837,341

Long Term Liabilities (Note 3) 1,955,668 2,236,641Replacement Reserve Funds (Note 4 and Page 63) 367,925 344,904Contributed Surplus 384,895 384,895Net Assets - Page 59 29,092 39,671

2,737,580 3,006,111

3,593,487 3,843,452

Approved on behalf of the Board

.................................................. Director

.................................................. Director



STATEMENT OF CHANGES IN NET ASSETS


Balance - Beginning of Year 39,671 49,335

Adjust for prior year settlement - Branlyn 1,132 -

Excess of Revenue over Expenses (Expenses over Revenue)Beckett Project - Shelter - (16,309)Branlyn Meadows Project - Shelter (11,711) 6,645

Balance - End of Year 29,092 39,671



STATEMENT OF OPERATIONS - BECKETT PROJECT - SHELTER


RevenueFederal subsidies 86,367 86,367 86,367Service manager subsidies 65,471 65,471 48,468Current year subsidy adjustment - (13,474) 12Rental - Market tenants 385,865 146,190 151,532Rental - RGI tenants - 236,419 231,686Other revenue 13,500 20,664 16,253

551,203 541,637 534,318

ExpensesAmortization - net 148,869 148,875 145,014Taxes paid on city owned property 77,887 80,203 76,706Insurance 10,000 8,615 9,738Interest on long term liability 22,248 21,908 25,785Legal and audit 3,600 3,279 3,168Office administration 4,850 4,466 4,358Repairs and maintenance 124,462 115,490 141,900Replacement reserve 38,485 38,485 37,488Utilities 93,100 91,432 84,394Wages and benefits 27,702 28,884 22,076

551,203 541,637 550,627

Excess of Revenue over Expenses - Page 59 - - (16,309)



STATEMENT OF OPERATIONS - BECKETT PROJECT - NON-SHELTER


RevenueContribution from Municipality 171,507 148,698

ExpensesInsurance 2,362 2,670Interest on long term liability 7,697 9,060Legal and audit 1,152 1,113Repairs and maintenance 53,967 34,559Utilities 54,021 50,346Amortization 52,308 50,950

171,507 148,698

Excess of Revenue over Expenses - -



STATEMENT OF OPERATIONS - BRANLYN MEADOWS PROJECT - SHELTER


RevenueService manager subsidy 149,753 149,753 145,869Current year subsidy adjustment - (1,894) 4,176Rental - Market tenants 110,000 70,833 67,400

- RGI tenants - 47,115 44,997Other revenue 2,000 7,983 7,161

261,753 273,790 269,603

ExpensesAmortization - net 66,504 66,505 63,705Taxes paid on city owned property 42,463 43,647 41,819Insurance 3,400 2,918 3,299Interest on long term liability 53,774 53,529 56,353Legal and audit 1,300 1,275 1,231Bad debts and collection costs 3,700 6,249 4,591Office administration 400 385 380Repairs and maintenance 66,899 87,419 71,293Replacement reserve 14,238 14,238 14,169Utilities 2,250 2,936 2,058Wages and benefits 6,825 6,400 4,060

261,753 285,501 262,958

Excess of Revenue over Expenses - Page 59 - (11,711) 6,645



STATEMENT OF REPLACEMENT RESERVE FUNDS


Beckett Project

Balance - Beginning of Year 254,182 225,175Provision from operations (Note 4) 38,485 37,488Provision grant - SHRRP 2,497 26,421Interest 12,902 12,600Repairs and maintenance expenditure (25,432) (47,502)


Branlyn Meadows Project

Balance - Beginning of Year 90,722 103,038Provision from operations (Note 4) 14,238 14,169Provision grant - SHRRP - 1,820Interest 4,259 5,093Repairs and maintenance expenditure (23,928) (33,398)


Total 367,925 344,904



NOTES TO THE FINANCIAL STATEMENTS


Brantford Municipal Non-Profit Housing Corporation is incorporated as a not-for-profit organization withoutshare capital. The main purpose of the Corporation is to provide affordable housing to residents of Brantford andBrant County.



These financial statements have been prepared in accordance with the significant policies set outbelow to comply with reporting requirements of the Ministry of Municipal Affairs and Housing.The basis of accounting used in these financial statements materially differs from Canadiangenerally accepted accounting principles because:

(i) Amortization is provided on the Branlyn Meadows Project land, building, and furnishings and theBeckett Project building at a rate equal to the annual principal reduction of the mortgage ratherthan estimated useful life of the specific asset. Also, the Branlyn Meadows Project land isconsidered to have a limited life.

(ii) Property, plant and equipment purchased after their initial project construction are funded from andcharged against Replacement Reserve Funds rather than being capitalized on the statement offinancial position and amortized over their estimated useful lives.

(iii) Transfers to Replacement Reserve Funds are accounted for on the statement of operations, ratherthan as an inter-fund transfer in the statement of changes in net assets.

(iv) Financial instruments are recorded at their historical cost unless there is evidence of a permanentimpairment.

(v) A statement of changes in financial position is not presented.

(b) Use of Estimates

Financial statements are based on representations that may require estimates to be made inanticipation of future transactions and events and include measurement that may, by their nature,be approximations.

(c) Income Recognition

Revenue and expenses are recognized utilizing the accrual method whereby revenue is recordedwhen earned and expenses are recorded when incurred.

(d) Investments

The investments are held with Phillips, Hager & North in accordance with the Social HousingReform Act. Investments are stated at the lower of cost and market value, when a decline in marketvalue is considered permanent in nature.

Page 64




1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D)

(e) Property, Plant and Equipment and Amortization Beckett Project - Property, plant and equipment are stated at historical cost. Amortization onfurnishings is calculated on a straight line basis over ten years. Building amortization is providedfor in the accounts in annual amounts equal to the principal repayments on the mortgage during theyear.

Branlyn Meadows Project - Property, plant and equipment are stated at historical cost.Amortization is provided for in the accounts in annual amounts equal to the principal mortgagerepayments during the year.

(f) Contributed Surplus

The Corporation purchased land from the Corporation of the City of Brantford which in turngranted the total purchase price to the Corporation. The total amount of costs related to thepurchase of the land has been credited to contributed surplus.

2. PROPERTY, PLANT Accumulated Net Book Value Net Book ValueAND EQUIPMENT Cost Amortization 2014 2013

Beckett Project Land 384,895 - 384,895 384,895Building 5,940,047 4,908,508 1,031,539 1,232,722Furnishings 53,445 53,445 - -

6,378,387 4,961,953 1,416,434 1,617,617

Branlyn Meadows ProjectLand 490,126 200,899 289,227 305,085Building 1,537,778 630,257 907,521 957,275Furnishings 27,588 11,218 16,370 17,263

2,055,492 842,374 1,213,118 1,279,623

Total 8,433,879 5,804,327 2,629,552 2,897,240

Page 65




3. LONG TERM LIABILITIES 2014 2013

Beckett Project2.65% first mortgage loan to Canada Mortgage HousingCorporation, due February 2015, payable in monthly installments of$19,270 on account of principal and interest 1,031,152 1,232,335

Branlyn Meadows Project4.37% first mortgage loan to Canada Mortgage and HousingCorporation, due March 2018, payable in monthly installments of$10,023 on account of principal and interest 1,205,489 1,271,994

2,236,641 2,504,329Less: current portion 280,973 267,688

1,955,668 2,236,641

The corporation's land and buildings are pledged as security on the mortgages. Subsequent to year end,the Beckett Project mortgage was renewed with Canada Mortgage and Housing Corporation for a termending September 2019. The renewed mortgage has an interest rate of 1.12% and monthly installments of$18,607 on account of principal and interest. Minimum principal repayment requirements on themortgages are as follows, assuming the Branlyn Meadows Project mortgage will be refinanced at asimilar rate on maturity:

2015 - 280,9732016 - 287,7222017 - 293,3752018 - 299,1522019 - 249,199

4. REPLACEMENT RESERVE FUNDS

In accordance with the terms of agreements with Canada Mortgage and Housing Corporation and theMinistry of Municipal Affairs and Housing, the Corporation is required to establish a separatereplacement reserve fund and to account for these funds, including interest. The use of these funds isrestricted to the repair and replacement of specific items as permitted by the Ministry of MunicipalAffairs and Housing. The annual contribution for these projects made as directed by the Ministry ofMunicipal Affairs and Housing is:

Beckett Project 38,485Branlyn Meadows Project 14,238

Page 66




5. RELATED PARTY TRANSACTIONS

The Board of Directors of the Corporation consists of Brantford City Council appointees to the SocialServices Sector Committee. Upon dissolution, after the payments of its liabilities, the Corporation'sremaining property shall be distributed to, or disposed of by, the City of Brantford.

All financial transactions are made on behalf of the Brantford Municipal Non-Profit Housing Corporationby the City of Brantford. Additionally, the staff of the City of Brantford perform all the managementfunctions of the Corporation.

6. STATEMENT OF CHANGES IN FINANCIAL POSITION

A statement of changes in financial position is not required for Ministry of Municipal Affairs andHousing reporting purposes.

7. EMPLOYEE COMPENSATION

As required by the Public Sector Salary Disclosure Act, 1996, no employees were paid a salary of$100,000 or more in 2014 by the Brantford Municipal Non-Profit Housing Corporation.


Fair Value

The fair value of financial instruments, such as cash and bank, investments, accounts receivable, accountspayable and mortgages payable are determined to approximate their recorded values.

Interest Rate Risk

The Corporation's interest rate risk relates to the refinancing of the Corporation's two mortgages and isdependant on the available interest rates at the time of renewal.

Credit Risk

The Corporation's credit risk relates to its accounts receivable. The risk of significant loss is consideredremote.

Page 67


SCHEDULE OF PROPERTY, PLANT AND EQUIPMENT AND OTHER LONG TERMLIABILITIES - SHELTER AND NON-SHELTER

SCHEDULE 1


Property, Plant and Equipment and Long TermLiabilities Shelter Non-Shelter Total

Beckett Project Property, plant and equipment - at cost 4,720,006 1,658,381 6,378,387Less: Accumulated amortization (3,671,846) (1,290,107) (4,961,953)Net Book Value 1,048,160 368,274 1,416,434Less: Contributed surplus (284,822) (100,073) (384,895)Less: Recovery of interest at refinancing (287) (100) (387)Long Term Liability 763,051 268,101 1,031,152

Branlyn Meadows ProjectProperty, plant and equipment - at cost 2,055,492 - 2,055,492Less: Accumulated amortization (842,374) - (842,374)Net Book Value 1,213,118 - 1,213,118Less: Interest equity on escrow fund (7,629) - (7,629)Long Term Liability 1,205,489 - 1,205,489

Page 68


To the Chair and Members of theJohn Noble Home Committee of Management

We have audited the accompanying financial statements of John Noble Home which comprise the statement offinancial position as at December 31, 2014, and the statements of operations and accumulated surplus, change innet financial assets and cash flows for the year then ended, and a summary of significant accounting policies andother explanatory information.



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


OpinionIn our opinion, the financial statements present fairly, in all material respects, the financial position of John NobleHome as at December 31, 2014, and the results of its operations, its change in net financial assets and its cashflows for the year then ended in accordance with Canadian public sector accounting standards.






JOHN NOBLE HOME



FINANCIAL ASSETSCash and bank 647,274 482,571Accounts receivable - Residents 261,946 287,906

- Other (Note 2) 204,879 466,354- Province of Ontario - 68,906- Province of Ontario - Geared to Housing Project 3,464 3,464

Due from City of Brantford - Operating 202,463 -Due from County of Brant - Operating 66,992 -

1,387,018 1,309,201

LIABILITIESAccounts payable and accrued liabilities 1,044,572 994,701Due to City of Brantford - Operating - 35,186Due to City of Brantford - Capital and special funding 248,371 243,741Due to County of Brant - Operating - 12,920Due to County of Brant - Capital and special funding 152,323 133,559Due to Province - Funding 92,069 -Deferred revenue - Special projects - 49,193Deferred revenue - Bell Lane Terrace 3,203 -

1,540,538 1,469,300

NET FINANCIAL ASSETS (Page 4) (153,520) (160,099)

NON-FINANCIAL ASSETSTangible capital assets 26,935,138 27,058,880Prepaid supplies 120,610 120,610Prepaid expenses 32,910 39,489

27,088,658 27,218,979

TOTAL NET ASSETS 26,935,138 27,058,880



JOHN NOBLE HOME

STATEMENT OF OPERATIONS AND ACCUMULATED SURPLUS


RevenueProvince of Ontario 9,599,186 9,679,344 9,517,144City of Brantford - operations 1,862,300 2,017,674 1,732,234

- capital and special funding - 842,242 2,077,101County of Brant- operations 716,464 796,376 684,008

- capital and special funding - 329,691 803,922Residents 228,489 297,583 255,465Sundry receipts 42,696 133,815 18,568Bell Lane Terrace (Page 77) - 219,268 217,811

12,449,135 14,315,993 15,306,253

ExpensesMedical nursing services (Page 78) 6,790,435 7,003,412 6,761,386Dietary services (Page 78) 1,271,764 1,317,074 1,305,252Program and support services (Page 78) 686,229 694,653 587,997Housekeeping services (Page 79) 708,089 775,433 719,993Laundry services (Page 79) 403,668 381,754 291,306General, Administrative and Human resources (Page 79) 955,827 1,037,633 947,595Building and maintenance (Page 80) 1,179,317 1,265,373 1,133,530Raw food and supplements 453,806 449,459 460,359Bell Lane Terrace (Page 77) - 219,268 217,811

12,449,135 13,144,059 12,425,229

Income Before Under-noted Item 1,171,934 2,881,024

Other Income/(Expense)Amortization of tangible capital assets (1,295,676) (900,614)

Annual Deficit from Operations (123,742) 1,980,410Accumulated Surplus - Beginning of Year 27,058,880 25,078,470

Accumulated Surplus - End of Year 26,935,138 27,058,880


JOHN NOBLE HOME

STATEMENT OF CHANGE IN NET FINANCIAL ASSETS


Annual Surplus (123,742) 1,980,410

Amortization of tangible capital assets 1,295,676 900,614Acquisition of tangible capital assets (1,171,934) (2,881,024)Change in supplies inventories - (63,754)Change in prepaid expense 6,579 (7,122)

Increase (Decrease) in Net Financial Assets 6,579 (70,876)Net Financial Assets - Beginning of Year (160,099) (89,223)

Net Financial Assets - End of Year (153,520) (160,099)



Cash Flows From Operating ActivitiesAnnual Deficit (123,742) 1,980,410

Non-cash charges to operations:Amortization of tangible capital assets 1,295,676 900,614

1,171,934 2,881,024

Net change in non-cash working capital balances related to operations (Note 6) 164,703 389,879

Cash provided by (used for) operations 1,336,637 3,270,903

CapitalAcquisition of tangible capital assets (1,171,934) (2,881,024)

Net Increase in Cash and Cash Equivalents 164,703 389,879

Opening Cash and Cash Equivalents 482,571 92,692

Closing Cash and Cash Equivalents 647,274 482,571


JOHN NOBLE HOME

SCHEDULE OF CONTINUITY OF GENERAL TRUST FUNDS



RevenueInterest earned 93 131Donations and other revenue 11,009 13,087

11,102 13,218

ExpensesEquipment and services for residents and staff 23,326 12,057


SCHEDULE OF CONTINUITY OF SPECIAL PURPOSE FUND



RevenueInterest earned 293 336Donations and other revenue 76,377 77,968

76,670 78,304

ExpensesEquipment and services for residents and staff 92,626 72,021



JOHN NOBLE HOME



(a) Nature of Operations

The John Noble Home is a 156 bed Municipal Home for the Aged providing long term care. It isoperated jointly by The Corporation of the County of Brant and The Corporation of the City ofBrantford and is legislated by the long term care division of the Ministry of Health under theHomes for the Aged and Rest Homes Act and Bill 101.

The Home also operates 26 affordable housing rental apartments.

(b) Basis of Accounting

These financial statements are prepared using the accrual basis of accounting. The accrual basis ofaccounting records revenue as it is earned and measurable. Expenses are recognized as they areincurred and measurable based upon receipt of goods or services and/or the creation of a legalobligation to pay.

(c) Measurement

Since precise determination of many assets and liabilities is dependent upon future events, thepreparation of periodic financial statements necessarily involves the use of estimates andapproximations. These have been made using careful judgements.

(d) Current Operations

The statement of financial position, operations and accumulated surplus and cash flows reflect theday to day operations of the home.

(e) General Trust Funds

The general trust funds are the property of the John Noble Home and are derived from bequests anddonations. The terms of each bequest differ, however, all of the funds are allocated to specificprojects.

(f) Special Purpose Funds

The special purpose fund is the property of the John Noble Home and is from fundraising anddonations. The funds are allocated for specific projects.

(g) Residents' Trust Funds

Although the residents' trust funds are administered by John Noble Home, the funds are theproperty of the residents. Accordingly, the funds are not reported in the financial statements of theJohn Noble Home.

(h) Revenue Recognition

Resident revenue is recorded at the end of each month for the number of days of occupancy. Grantrevenue is recognized when earned and collectability is assured.

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JOHN NOBLE HOME


1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

(i) Tangible Capital Assets

Tangible capital assets are stated at cost. Amortization is provided for in the accounts as follows:

Land improvements 40 years straight lineBuilding improvements 40 years straight lineEquipment 5 years straight lineInformation technology 5 years straight lineFurniture and fixtures 10 years straight line

In the year of acquisition and disposal, amortization is provided for at one-half of the above rates.

2. ACCOUNTS RECEIVABLE - OTHER 2014 2013

Alzheimer Day Centre 31,448 69,004Other miscellaneous receivables 173,431 397,350

204,879 466,354

3. BANK LOAN

The John Noble Home holds an unsecured $1,500,000 operating line of credit with the Bank of Montreal.Interest is calculated at prime and any balance is due on demand.


Accumulated surplus consists of the following:

Accumulated surplus from operations - -Investment in tangible capital assets 26,935,138 27,058,880

26,935,138 27,058,880

5. PENSION AGREEMENT

The John Noble Home contributes to the Ontario Municipal Employees Retirement Fund (OMERS)which is a multi-employer plan, on behalf of approximately 247 members. The plan is a defined benefitplan which specifies the amount of the retirement benefit to be received by the employees based on thelength of service and rate of pay. The total amount remitted to OMERS for the year 2014 was $566,224(2013 - $532,889).

Page 75

JOHN NOBLE HOME


6. CASH FLOW FROM OPERATIONS 2014 2013

Net change in working capital balances related tooperations consists of the following:

Accounts receivable - Residents 25,960 (42,323)Accounts receivable - Other 261,475 (213,823)City of Brantford - Operating (237,649) (24,409)City of Brantford - Capital 4,630 905,621County of Brant - Operating (79,912) (10,602)County of Brant - Capital 18,764 241,699Prepaid supplies - (63,754)Prepaid expenses 6,579 (7,122)Accounts payable and accrued liabilities 49,871 (438,898)Due to/from the Province of Ontario 160,975 45,445Deferred revenue (49,193) (1,955)Tenant deposits 3,203 -

164,703 389,879


The fair value of financial instruments, such as cash and bank, accounts receivable and accounts payableand accrued liabilities are determined to approximate their recorded values.

8. COMMITMENT

The Home is committed to fund the debentures issued by the City of Brantford on behalf of the City andthe County. Annual payment requirements to the City and the County total $121,146 per year until 2038.

Page 76

JOHN NOBLE HOME

SCHEDULE OF BELL LANE TERRACE OPERATIONS

Actual ActualFor the year ended December 31 2014 2013

RevenueRental income 174,795 170,358Rental Subsidy - City of Brantford 41,563 45,180Laundry 2,809 2,085Sundry 101 188

219,268 217,811

ExpensesRepairs and maintenance 63,907 63,858Utilities 23,198 21,600Cleaning 8,350 8,625Fire alarm monitoring 2,664 2,167Bank charges 3 43Bad debt expense - 372

98,122 96,665

Excess of Revenue over Expenses from Operations 121,146 121,146

City/County Financing Charge (Note 8) (121,146) (121,146)

Excess of Revenue over Expenses - -

Page 77

JOHN NOBLE HOME

SCHEDULE OF EXPENSES


Medical Nursing ServicesSalaries and employee benefits 6,545,151 6,819,655 6,573,932Medical supplies 84,000 74,495 84,235Equipment replacement 16,000 3,577 4,881Equipment maintenance 15,000 7,905 14,709Other 42,952 (159) 36Incontinence supplies 70,000 82,280 66,511Medical director 17,332 15,659 17,082

6,790,435 7,003,412 6,761,386

Dietary ServicesSalaries and employee benefits 1,210,364 1,263,418 1,258,518Purchased services 5,500 - -Equipment operations and maintenance 14,700 11,574 12,476Supplies 36,700 36,348 30,056Other 4,500 5,734 4,202

1,271,764 1,317,074 1,305,252

Program and Support ServicesSalaries and employee benefits 549,599 565,832 566,447Purchased services 13,000 15,764 14,413Equipment, operations, maintenance and replacement 1,560 1,229 3,645Education and training - - 30Other 118,500 107,871 373Recreation and entertainment 3,570 3,957 3,089

686,229 694,653 587,997

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JOHN NOBLE HOME



Housekeeping ServicesSalaries and employee benefits 663,738 733,131 677,834Purchased services 165 135 147Equipment operations and maintenance 2,000 968 2,154Supplies 39,974 39,879 39,729Equipment replacement 2,212 1,320 129

708,089 775,433 719,993

Laundry ServicesSalaries 362,846 356,681 223,754Replacement of linens 10,000 4,109 724Equipment operations and maintenance 5,012 8,262 1,115Supplies 25,810 12,702 15,791Purchased services - - 49,922

403,668 381,754 291,306

General, Administrative and Human ResourcesSalaries employee benefits 753,821 756,683 747,657Bank charges - (1,405) (3,705)Purchased services 80,708 121,507 106,185Equipment replacement 10,100 9,137 7,606O.A.N.H.S.S. membership and meeting expenses 18,512 28,749 18,189Health and Safety 5,000 4,551 1,016Other 75,566 107,339 55,001Professional fees 12,120 11,072 15,646

955,827 1,037,633 947,595

Page 79

JOHN NOBLE HOME



Building and MaintenanceSalaries and benefits 238,385 271,498 183,802Purchased services 103,224 123,337 103,682Equipment operations and maintenance 116,915 115,388 87,043Miscellaneous supplies 9,186 10,898 5,884Cable TV 3,036 1,569 2,850Electricity 206,000 306,796 340,634Water and sewer charges 70,792 135,722 96,403Heating 216,257 119,752 157,710Telephone 21,556 24,656 21,631Garbage collection 33,396 38,849 34,596Insurance 73,459 54,420 35,862Building and grounds maintenance 123,869 102,114 80,931Expense recoveries (36,758) (39,626) (17,498)

1,179,317 1,265,373 1,133,530

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JOHN NOBLE HOME

SCHEDULE OF TANGIBLE CAPITAL ASSETS For the year ended December 31, 2014

Land and LandImprovements Building

Building - BellLane Terrace

BuildingImprovements Equipment

InformationTechnology

Furniture andFixtures Total 2014 Total 2013

CostBalance, beginning of year 232,634 31,813,280 2,960,846 1,630,721 623,150 145,712 570,493 37,976,836 35,095,812Additions during the year - 503,417 - 375,810 251,381 1,316 40,010 1,171,934 2,881,024Other - - - - - - - - -Balance, end of year 232,634 32,316,697 2,960,846 2,006,531 874,531 147,028 610,503 39,148,770 37,976,836

Accumulated AmortizationBalance, beginning of year 187,249 7,794,767 1,075,538 922,185 384,952 145,712 407,553 10,917,956 10,017,342Amortization during the year 2,021 961,205 148,042 86,089 60,433 131 37,755 1,295,676 900,614Balance, end of year 189,270 8,755,972 1,223,580 1,008,274 445,385 145,843 445,308 12,213,632 10,917,956Net book value of tangiblecapital assets 43,364 23,560,725 1,737,266 998,257 429,146 1,185 165,195 26,935,138 27,058,880

Page 81


To the Board Members ofBrant County Health Unit,The City of Brantford, the County of Brant, and the Province of Ontario

Report on the Financial StatementsWe have audited the accompanying financial statements of Brant County Health Unit, which is comprised of thestatement of financial position as at December 31, 2014, the statement of operations and changes in net assets, andthe statement of cash flows for the year then ended, and a summary of significant accounting policies and otherexplanatory information.


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

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in thefinancial statements. The procedures selected depend on the auditor's judgment, including the assessment of therisks of material misstatement of the financial statements, whether due to fraud or error. In making those riskassessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of thefinancial statements in order to design audit procedures that are appropriate in the circumstances, but not for thepurpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includesevaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates madeby 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 ourqualified audit opinion.

OpinionIn our opinion, the financial statements present fairly, in all material respects, the financial position of BrantCounty Health Unit as at December 31, 2014, and the results of its operations, changes in its net financial assetsand its cash flows for the year then ended in accordance with Canadian public sector accounting standards.

May 20, 2015 CHARTERED PROFESSIONAL ACCOUNTANTSBrantford, Ontario Licensed Public Accountants





BRANT COUNTY HEALTH UNIT



ASSETSCurrent Assets

Cash and short term investments (Note 3) 2,190,142 1,926,816Accounts receivable (Note 4) 181,140 228,115

2,371,282 2,154,931

LIABILITIES AND FUND BALANCESCurrent Liabilities

Accounts payable and accrued liabilities (Note 5) 1,454,779 1,331,441Due to Province of Ontario (Note 6) 120,414 240,239Due to City of Brantford (Note 7) 900 57,502Due to County of Brant (Note 7) 200,338 199,983Deferred revenue 689,034 623,388Due to Health Canada (Note 7) 17,069 26,292Helen Van Sickle Fund (Note 8) 76,150 73,776

2,558,684 2,552,621

NET FINANCIAL LIABILITIES (187,402) (397,690)

Non-Financial AssetsPrepaid expenses 137,013 373,670Program supplies - 81,227Tangible capital assets (Note 9) 2,318,922 2,167,035

2,455,935 2,621,932

NET ASSETS 2,268,533 2,224,242




STATEMENT OF OPERATIONS AND ACCUMULATED SURPLUS

2014 2014 2013For the year ended December 31 Budget Actual Actual

RevenuesMOHLTC - Public Health Division 4,624,841 4,655,946 4,589,600MOHLTC - Public Health Division - One time funding 163,760 286,008 260,178MOHLTC - Health Promotion Division 3,160,835 3,160,835 3,098,858Ministry of Children and Youth Services 1,081,015 1,079,388 1,074,253Health Canada 81,130 95,214 81,130City of Brantford 2,240,299 2,240,299 2,196,372Count of Brant 884,246 884,246 866,908MOHLTC - Health Promotion Division - 100% funding 340,300 331,600 331,600MOHLTC - Health Promotion Division - One time funding - 8,700 8,700Vaccines 38,473 43,271 48,151Other revenues and user fees 196,420 240,800 286,168

12,811,319 13,026,307 12,841,918

ExpensesAccreditation 10,000 1,150 -Advertising and promotional materials 160,715 152,019 234,389Amortization - 248,669 194,792Audit and legal fees 84,500 174,454 275,445Building maintenance and utilities 420,239 257,475 302,829Employee benefits 2,062,614 2,061,932 1,992,138Enhanced program initiatives 169,238 149,605 144,444Fees and honorariums 8,000 7,096 7,137Insurance 17,600 19,563 18,138Postage and courier 8,473 28,823 3,020Professional fees 490,443 173,719 345,050Memberships, subscriptions and publications 24,140 21,516 20,774Office supplies and equipment 134,050 62,075 47,902One-time costs - 16,899 69,641Salaries and wages 8,218,516 8,274,105 7,777,599Special projects 70,000 76,501 61,124Staff development 127,447 127,492 109,303Supplies and services 402,094 440,603 401,282Technology improvements 286,928 266,500 269,507Telephone 56,170 63,667 62,771Travel 60,152 61,096 59,983Vaccine supplies - 43,271 48,152

12,811,319 12,728,230 12,445,420

Annual Surplus Before Deferred Revenueand Expected Settlements - 298,077 396,498

Current year deferred revenue and expected governmentcontribution settlements (Note 7) - (177,124) (246,565)

Current year deferred capital funding contributions - (76,662) -

Annual Surplus - 44,291 149,933Accumulated Surplus, beginning of year - 2,224,242 2,074,309

Accumulated Surplus, end of year - 2,268,533 2,224,242



STATEMENT OF CHANGES IN NET FINANCIAL ASSETS/(LIABILITIES)


Annual Surplus/(Deficit) 44,291 149,933

Amortization of tangible capital assets 248,669 194,792Acquisition of tangible capital assets (400,556) (344,730)Change in prepaid expense and program supplies 317,884 (11,177)

Net Change in Net Financial Assets 210,288 (11,182)Net Financial Liabilities, beginning of the year (397,690) (386,508)

Net Financial Liabilities, end of year (187,402) (397,690)



SCHEDULE OF FINANCIAL ACTIVITIESCost Shared Programs - Schedule 1


RevenuesMOHLTC - Public Health Division 3,618,897 3,560,237MOHLTC - Public Health Division - One-time funding 254,938 192,121MOHLTC - Health Promotion Division 3,160,835 3,098,858City of Brantford 872,106 854,770County of Brant 2,209,541 2,165,617Vaccines 43,271 48,151Other revenues and user fees 219,829 212,987

Total Revenues 10,379,417 10,132,741

ExpensesAccreditation 1,150 -Advertising and promotional materials 116,459 192,474Amortization 248,669 194,792Audit and legal 170,704 270,945Building maintenance and utilities 257,475 302,829Employee benefits 1,616,667 1,568,927Enhanced program initiatives 149,605 144,444Fees and honorariums 7,096 7,137Insurance 19,563 18,138Postage and courier 28,823 3,020Professional fees 98,042 196,309Memberships, subscriptions and publications 21,006 20,334Office supplies and equipment 44,075 44,169Salaries and wages 6,535,376 6,135,572Special projects 76,501 61,124Staff development 103,987 94,645Supplies and services 325,899 234,973Technology improvements 266,500 269,507Telephone 53,026 50,441Travel 38,371 36,998Vaccine supplies 43,271 48,152

Total Expenses 10,222,265 9,894,930Excess of Revenues over Expenses (Expenses over Revenues)for the Year Before Expected Settlements and Undernoted Items 157,152 237,811Current year deferred revenue and expected government contribution settlements (Note 7) (36,199) (139,679)Current year deferred capital contribution funding (76,662) -

Excess of Revenues over Expenses(Expenses over Revenues) for the Year 44,291 98,132

Reconciliation for Funding PurposesExcess of revenue over expenses for the year as above 44,291 98,132Add: Amortization 248,669 194,792Less: Capital asset (292,960) (292,924)

Excess of Revenues over Expenses (Expenses over Revenues)for the Year Funding Purposes - -



SCHEDULE OF FINANCIAL ACTIVITIES - CINOT Expansion Program - Schedule 2


RevenuesGrants

MOHLTC - Public Health Division 32,281 32,281City of Brantford 7,715 7,715County of Brant 3,045 3,045

Total Revenues 43,041 43,041

ExpensesProfessional fees 38,019 55,198

Excess of Revenue over Expenses (Expenses over Revenues)for the Year Before Expected Settlements and Undernoted Item 5,022 (12,157)

Current year deferred revenue and expected government contribution settlements (Note 7) (5,022) 12,157

Excess of Revenues over Expenses (Expenses over Revenues) for the Year - -

Reconciliation for Funding Purposes:Excess of revenues over expenses of the year as above - -Add: Amortization - -Less: Capital assets - -

Excess of Revenues over Expenses (Expenses over Revenues)for the Year for Funding Purposes - -



SCHEDULE OF FINANCIAL ACTIVITIES -CANADA PRENATAL PROGRAM - Schedule 3


RevenuesGrants

Health Canada 95,214 81,130

ExpensesAdvertising 2,800 409Employee benefits 11,093 11,246Professional fees 2,437 563Office supplies and equipment 2,000 222Salaries and wages 48,392 37,252Staff development 96 501Supplies and services 10,670 4,041Telephone 472 822Travel 185 156

Total Expenses 78,145 55,212

Excess of Revenues over Expenses (Expenses over Revenues)for the Year Before Expected Settlements and Undernoted Item 17,069 25,918

Current year deferred revenue and expected government contributionsettlements (Note 7) (17,069) (25,918)

Excess of Revenues over Expenses (Expenses over Revenues) for the Year - -

Reconciliation for Funding Purposes:Excess of revenue over expenses for the year as above - -Add: amortization - -Less: capital assets - -




SCHEDULE OF FINANCIAL ACTIVITIES DATA ANALYSIS COORDINATOR PROGRAM - Schedule 4


RevenuesGrants

Ministry of Children and Youth Services 50,250 50,250

ExpensesAudit and legal fees 750 750Employee Benefits 11,275 11,459Office supplies and equipment 157 65Salaries and wages 37,493 37,426Staff Development 519 458Telephone 3 37Travel 54 55


Excess of Revenues over Expenses (Expenses over Revenues)for the Year Before Expected Settlements and Undernoted Item (1) -

Current year deferred revenue and expected government contributionsettlements (Note 7) 1 -

Excess of Revenues over Expenses (Expenses over Revenues)for the Year - -

Reconciliation for Funding Purposes:Excess of revenues over expenses for the year as above - -Add: Amortization - -Less: Capital assets - -




SCHEDULE OF FINANCIAL ACTIVITIESHealthy Babies Healthy Children - Schedule 5


Revenues Grants

MOHLTC - Public Health Division 930,735 930,720Other revenue and user fees 4,071 3,540


ExpensesAmortization - -Advertising 4,312 2,679Audit and legal fees 750 750Employee benefits 194,601 189,964Memberships, subscriptions and publications 50 50Office supplies and equipment 665 1,381Salaries and wages 709,688 712,338Staff development 4,084 2,264Supplies and services 4,298 10,596Telephone 7,050 5,963Travel 9,306 8,281


Excess of Revenues over Expenses (Expenses over Revenues)for the Year Before Expected Settlements and Undernoted Item 2 (6)

Current year deferred revenue and expected government contributionsettlements (Note 7) (2) -

Excess of Revenues over Expenses (Expenses over Revenues) for the Year - (6)

Reconciliation for Funding Purposes:Excess of revenues over expenses for the year as above - (6)Add: Amortization - -Less: Capital assets - -

Excess of Revenues over Expenses (Expenses over Revenues)for the Year for Funding Purposes - (6)



SCHEDULE OF FINANCIAL ACTIVITIES -Healthy Smiles Ontario Program - Schedule 6


RevenuesGrants

MOHLTC - Public Health Division 349,757 349,757

ExpensesAdvertising and promotion 12,392 19,208Employee Benefits 26,561 20,208Professional fees 30,421 68,012Office supplies and equipment 9,710 374Salaries and wages 122,623 79,299Staff development - 303Supplies and services 63,204 69,438Telephone 750 403Travel 244 411


Excess of Revenues over Expenses (Expenses over Revenues)for the Year Before Expected Settlements and Undernoted Item 83,852 92,101

Current year deferred revenue and expected government contribution settlements (Note 7) (83,853) (40,294)

Excess of Revenues over Expenses (Expenses over Revenues)for the Year (1) 51,807

Reconciliation for Funding Purposes:Excess of revenues over expenses for the year as above (1) 51,807Add: Amortization - -Less: Capital assets - -

Excess of Revenues over Expenses (Expenses over Revenues)for the Year for Funding Purposes (1) 51,807



SCHEDULE OF FINANCIAL ACTIVITIES Infection prevention and Control nurses Initiative - Schedule 7


RevenueGrants


ExpensesEmployee benefits 19,529 18,947Salaries and wages 70,536 68,703Telephone - 650


Excess of Revenues over Expenses (Expenses over Revenues)for the Year Before Expected Settlements and Undernoted Item 1 -

Current year deferred revenue and expected government contributionsettlements (Note 7) (1) -


Reconciliation for Funding Purposes:Excess of revenues over expenses for the year as above - -Add: Amortization - -Less: Capital assets - -




SCHEDULE OF FINANCIAL ACTIVITIES Infectious Diseases Control Initiative (SARS) - Schedule 8


RevenuesGrants


ExpensesAdvertising 11,052 11,784Audit and Legal - 750Employee benefits 29,223 30,578Memberships, subscriptions and publications 460 390Office supplies and equipment 3,500 291Salaries and wages 108,606 109,211Staff development 12,979 4,105Supplies and services 308 8,465Telephone 505 835Travel 37 237


Excess of Revenues over Expenses (Expenses over Revenues)for the Year Before Expected Settlements and Undernoted Item - 29

Current year deferred revenue and expected government contribution settlements (Note 7) - (29)


Reconciliation for funding purposes:Excess of revenue over expenses for the year as above - -Add: amortization - -Less: Capital assets - -




SCHEDULE OF FINANCIAL ACTIVITIES SMALL DRINKING WATER SYSTEMS - Schedule 9


RevenuesGrants

MOHLTC - Public Health Division 27,575 27,900City of Brantford 6,591 6,669County of Brant 2,601 2,631


ExpensesAdvertising - 2,066Employee benefits 6,706 5,945Office supplies and equipment 1,001 130Salaries and wages 25,938 21,774Supplies and services 1,795 4,597Staff development - 1,220Telephone 807 610Travel 521 568


Excess of Revenues over Expenses (Expenses over Revenues)for the Year Before Expected Settlements and Undernoted Item (1) 290

Current year deferred revenue and expected government contribution settlements (Note 7) 1 (290)


Reconciliation for funding purposesExcess of revenues over expenses for the year as above - -Add: Amortization - -Less: Capital assets - -




SCHEDULE OF FINANCIAL ACTIVITIES SMOKE FREE ONTARIO PROGRAMS - Schedule 10

Tobacco Local Control Youth Capacity Total Total

For the year ended December 31 Coordination Engagements Building 2014 2013

GrantsMOHLTC - Health Promotion Division - 100% funding 100,000 80,000 151,600 331,600 331,600MOHLTC - Health Promotion Division - One-time funding - - 8,700 8,700 8,700Other revenues and user fees 16,900 - - 16,900 69,641

Total Revenues 116,900 80,000 160,300 357,200 409,941

ExpensesAdvertising 500 229 102 831 3,954Audit and legal 750 750 750 2,250 2,250Employee benefits 19,027 15,516 19,607 54,150 43,574Office supplies and equipment 51 46 66 163 757One-time costs 16,899 - - 16,899 69,641Salaries and wages 77,241 55,796 121,231 254,268 243,889Supplies and services 807 5,917 834 7,558 24,175Staff development 1,494 1,246 1,403 4,143 4,078Telephone - 322 340 662 1,319Travel 128 177 7,267 7,569 7,598

Total Expenses 116,897 79,999 151,600 348,493 401,235

Excess of Revenues over Expenses (Expenses over Revenues) forthe Year Before Expected Settlements and Undernoted Item 3 1 8,700 8,707 8,706

Current year deferred revenue and expected government contribution settlements (Note 7) (3) (1) (8,700) (8,707) (8,706)

Excess of Revenues over Expenses (Expenses over Revenues) for the Year - - - - -



SCHEDULE OF FINANCIAL ACTIVITIES Vector Borne Disease - Schedule 12


RevenuesGrantsMOHLTC - Public Health Division 68,838 68,507

City of Brantford 16,452 16,371County of Brant 6,494 6,462


ExpensesAdvertising 4,174 1,891Employee benefits 10,010 7,926Office supplies and equipment 804 514Salaries and wages 44,085 32,083Supplies and services 26,872 41,510Staff development 959 1,103Telephone 391 811Travel 4,488 4,383


Excess of Revenues over Expenses (Expenses over Revenues)for the Year Before Expected Settlements and Undernoted Item 1 1,119

Current year deferred revenue and expected government contribution settlements (Note 7) (1) (1,119)


Reconciliation for Funding PurposesExcess of revenues over expenses for the year as above - -Add: amortization - -Less: capital assets - -




SCHEDULE OF FINANCIAL ACTIVITIES 9000 Nurses - Schedule 13

Chief Social UpdatedNursing Determinants MYCS-HBHC Total Total

For the year ended December 31 Officer of Health 9000 Nurses 2014 2013

RevenuesGrants

MOHLTC - Health Promotion Division - 100% funding 121,414 180,448 - 301,862 295,943Ministry of Children and Youth Services - - 98,403 98,403 93,283

Total Revenues 121,414 180,448 98,403 400,265 389,226

ExpensesEmployee benefits 25,937 36,265 19,914 82,116 83,363Salaries and wages 95,476 144,182 77,442 317,100 300,052Supplies and services - - - - 3,004Staff development - - 726 726 626Telephone - - - - 880Travel - - 322 322 1,296

Total Expenses 121,413 180,447 98,404 400,264 389,221

Excess of Revenues over Expenses (Expenses over Revenues) forthe Year Before Expected Settlements and Undernoted Item 1 1 (1) 1 5

Current year deferred revenue and expected government contribution settlements (Note 7) (1) (1) - (2) 5

Excess of Revenues over Expenses (Expenses over Revenues) for the Year - - (1) (1) -



SCHEDULE OF FINANCIAL ACTIVITIES Health Communities Partnership Fund - Schedule 14


RevenuesGrants


ExpensesProfessional Fees 4,800 24,893Office supplies and equipment - 482


Excess of Revenues over Expenses (Expenses over Revenues) forthe Year Before Expected Settlements and Undernoted Item 26,270 42,682

Current year deferred revenue and expected government contribution settlements (Note 7) (26,270) (42,682)


Reconciliation for Funding PurposesExcess of revenues over expenses for the year as above - -Add: Amortization - -Less: Capital assets - -

Excess of Revenues over Expenses (Expenses over Revenues) forthe Year for Funding Purposes - -





Cash Flows From Operating ActivitiesExcess of funding over expenses 44,291 149,933Charges (credits) to income not involving cash

Amortization 248,669 194,792

292,960 344,725

Source (Uses) of Cash:Accounts receivable 46,975 (58,733)Prepaid expenses and program supplies 317,884 (11,177)Accounts payable and accrued liabilities 123,338 241,926Due to Province of Ontario (119,825) (150,372)Deferred revenue 65,646 73,224Due to/from Health Canada (9,223) (2,277)Due to municipalities (56,247) 24,901Funding reserves 2,374 1,424

370,922 118,916

Cash Flows From Capital ActivitiesAcquisition of capital assets (400,556) (344,730)

Net Increase in Cash and Cash Equivalents 263,326 118,911Opening Cash and Cash Equivalents 1,926,816 1,807,905

Closing Cash and Cash Equivalents 2,190,142 1,926,816




1. DESCRIPTION OF OPERATIONS

The Brant County Health Unit provides health promotion, disease prevention, and health protectionservices designed to help all members of Brantford and Brant County achieve optimal health. The HealthUnit operates various ongoing and one time programs under the Ontario Public Health Standards. Theseprograms are funded either under the cost shared funding arrangement between the Province of Ontario,the City of Brantford and the County of Brant, or 100% funded by the Province of Ontario.


The financial statements of the Health Unit are the responsibility of management. They have beenprepared in accordance with Canadian generally accepted accounting principles established by the PublicSector Accounting Board of the Canadian Institute of Chartered Accountants. The Health Unit hasadopted the following policies"


i) The operations reported in the financial statements reflect all programs.

ii) The operations of the Brant County Health Unit for the general program are funded jointly bythe Ministry of Health and Long-Term Care, The Corporation of the County of Brant and TheCorporation of the City of Brantford. For the other December 31, year end programs, funding isfrom the Ministry of Long-Term Care and Ministry of Children & Youth Services. Each year theamount of expenditure is based upon budgeted approvals and is funded accordingly. Fundingamounts not received at year end are recorded as receivable. Funding amounts in excess of actualexpenditures incurred during the year are recorded as payable to the funding agency or deferred.

Revenue and expenses are reported on the accrual basis of accounting. The accrual basis ofaccounting records revenue as it is earned and measurable. Expenses are recognized as they areincurred and measurable based upon receipt of goods or services and/or the creation of legalobligation to pay.

Government transfers are recognized in the financial statements as revenues in the period in whichthe events giving rise to the transfer occur, providing the transfers are authorized, any eligibilitycriteria have been met, and reasonable estimates of the amounts can be made.

(b) Tangible Capital Assets

Tangible Capital Assets are recorded at cost and amortized on a straight line basis over theireconomic life.

Building 20 years straight line Office Equipment 6-8 years straight lineLeasehold Improvements 25 years straight lineWebsite 10 years straight lineComputer 4-5 years straight-line

In the year of acquisition, amortization is provided for at one-half of the above rates. Noamortization is provided for in the year of disposal.

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(c) Funding Settlements

Expected funding settlements for the current year represent the Health Unit's best estimate offunding receivable or repayable to be determined upon final settlement with the respective fundingagency. Final settlements for March year end programs will be adjusted from a calendar year to afiscal year before settlement and therefore the actual cash settlements will differ from the estimatedsettlements on the Statement of Operations. Actual results could differ from management's bestestimates.

(d) Employee Benefits

Pension PlanThe Health Unit accounts for its participation in the Ontario Municipal Employee RetirementSystem (OMERS), which is a multi-employer public sector pension fund. These contributions areexpensed as they are made.

Vacation PayEmployees are entitled to compensation for unused vacation credit when they leave the HealthUnit's employ. The liability with respect to vacation pay is recorded in these financial statements.

(e) Use of Estimates

The preparation of financial statements in accordance with Canadian public sector accountingstandards requires management to make estimates and assumptions that affect the reported amountsof assets and liabilities at the date of the financial statements, and the reported amounts of revenueand expenses during the reporting period. Actual results could differ from management's bestestimates as additional information becomes available in the future.

AmortizationThe amounts recorded for amortization and impairment of capital assets are dependent onestimates of economic useful lives and future cash flows

Legal ContingenciesThe recognized amounts of potential legal claims and liabilities depend on estimates of themagnitude and probability of future costs.

(f) Program Revenues in Excess of Expenditures

The Health Unit administers public health programs funded by the Government of Canada, theProvince of Ontario, the Corporation of the City of Brantford and the Corporation of the County ofBrant. Any unexpended revenue for these programs at December 31, is reported on the statement offinancial position.

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3. CASH AND SHORT TERM INVESTMENTS

Cash and short term investment balances consist of both restricted and unrestricted funds:

2014 2013

Cash in Bank 2,113,992 1,853,040

Restricted Helen Van Sickle Fund - See Note 8Restricted bank balance 8,869 8,869Investment 1,971 1,056Accrued interest on restricted funds and investments 65,310 63,851

2,190,142 1,926,816

4. ACCOUNTS RECEIVABLE 2014 2013

Province of Ontario 96,034 83,404Municipalities - 21,075HST rebates 85,106 123,636

181,140 228,115

5. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES 2014 2013

Trade 329,787 585,929Payroll liabilities 79,858 2,990Accrued salaries and wages 63,005 421,251Ontario Municipal Employees Retirement accrual (2,317) 22,403Professional accruals and contingencies 984,446 298,868

1,454,779 1,331,441

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6. DUE (TO)/FROM PROVINCE OF ONTARIO

2013 2014 2014 2014Cumulative Spent/ Annual Cumulative

Deferral Clawed back Deferral Deferral

December 31st ProgramsMandatory programs - cost sharing (32,730) 27,927 (36,199) (41,002)Smoke Free Ontario (16,005) 18,340 (8,707) (6,372)Vector Borne Diseases (2,447) 2,662 (1) 214Children in Need of Treatment (21,279) 7,695 (3,767) (17,351)Data Analysis Coordinator - - 1 1Healthy Babies Healthy Children (57) - (2) (59)Healthy Smiles Ontario (90,770) 176,036 (83,853) 1,413Infection Prevention and Control Initiative - - (1) (1)Infections Diseases Control Initiative (29) - - (29)Nurse Practitioner Program (32,346) - - (32,346)Public Health Nurses Initiative 1,042 985 (2) 2,025Small Drinking Water Systems (863) 3,115 1 2,253

March 31st ProgramsBed Bugs - March 31st (2,073) 2,074 - 1Healthy Communities Partnership (42,682) 39,791 (26,270) (29,161)

(240,239) 278,625 (158,800) (120,414)

This amount reflects the net(over) under expenditures of funding provided by the Province for the March31st and December 31st fiscal year end programs.

2012 2013 2013 2013Cumulative Spent/ Annual Cumulative

Deferral Clawed back Deferral Deferral

December 31st ProgramsMandatory programs - cost sharing - 14,946 (47,676) (32,730)Smoke Free Ontario (9,003) 1,704 (8,706) (16,005)Vector Borne Diseases (7,281) 5,673 (839) (2,447)Children in Need of Treatment (45,986) 24,707 - (21,279)Data Analysis Coordinator (4) 4 - -Healthy Babies Healthy Children (57) - - (57)Healthy Smiles Ontario (166,285) 115,809 (40,294) (90,770)Infection Prevention and Control Initiative (24) 24 - -Infections Diseases Control Initiative (406) 406 (29) (29)Nurse Practitioner Program (155,626) 123,280 - (32,346)Public Health Nurses Initiative 1,047 - (5) 1,042Small Drinking Water Systems (4,913) 4,268 (218) (863)

March 31st ProgramsBed Bugs - March 31st (2,073) - - (2,073)Healthy Communities Partnership - - (42,682) (42,682)

(390,611) 290,821 (140,449) (240,239)

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7. CITY OF BRANTFORD / COUNTY OF BRANT FUNDING /PROVINCE OF ONTARIO / HEALTH CANADA

General program funding received from the City of Brantford and from the County of Brant in excess ofrevenue over expenditures for the year is returnable to the municipalities. The cumulative deferral owingto the County of Brant of $200,338 (2013 - $199,983) includes prior year unspent amounts of $198,248(2013 - $177,286).

City of CountyAt December 31, 2014 Province Brantford of Brant Total

December 31st programsMandatory programs - cost sharing (36,199) - - (36,199)Smoke Free Ontario (8,707) - - (8,707)Vector Borne Diseases (1) - - (1)Children in Need of Treatment (3,767) (900) (355) (5,022)Data Analysis Coordinator 1 - - 1Healthy Babies Healthy Children (2) - - (2)Healthy Smiles Ontario (83,853) - - (83,853)Infection Prevention and Control Initiative (1) - - (1)Public Health Nurses Initiative (2) - - (2)Small Drinking Water Systems 1 - - 1

March 31st ProgramsHealthy Communities Partnership (26,270) - - (26,270)

Annual 2014 Deferral Province and County and City (158,800) (900) (355) (160,055)Health Canada programs

Canadian Prenatal Program - - - (17,069)Total Annual 2014 Unspent funds (158,800) (900) (355) (177,124)

City of CountyAt December 31, 2013 Province Brantford of Brant Total

December 31st programsMandatory programs - cost sharing (47,676) (65,966) (26,037) (139,679)Smoke Free Ontario (8,706) - - (8,706)Vector Borne Diseases (839) (201) (79) (1,119)Children in Need of Treatment - 8,716 3,441 12,157Healthy Smiles Ontario (40,294) - - (40,294)Infections Diseases Control Initiative (29) - - (29)Public Health Nurses Initiative (5) - - (5)Small Drinking Water Systems (218) (51) (21) (290)

March 31st ProgramsHealthy Communities Partnership (42,682) - - (42,682)

Annual 2013 Deferral Province and County and City (140,449) (57,502) (22,696) (220,647)Health Canada programs

Canadian Prenatal Program - - - (25,918)Total Annual 2013 Unspent funds (140,449) (57,502) (22,696) (246,565)

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8. HELEN VAN SICKLE FUND 2014 2013

Balance - Beginning of year 73,776 72,352Revenue - Interest earned 2,374 1,424

76,150 73,776

Accumulated9. TANGIBLE CAPITAL ASSETS Cost Amortization 2014 2013

Tangible AssetsLand 129,500 - 129,500 129,500Building 3,062,781 1,751,364 1,311,417 1,267,917Office equipment 487,323 176,146 311,177 267,260Leasehold improvements 70,300 26,714 43,586 46,398Computer 1,128,534 707,508 421,026 455,960

Total Tangible Capital Assets 4,878,438 2,661,732 2,216,706 -

Intangible AssetsWebsite 107,596 5,380 102,216 -

4,986,034 2,667,112 2,318,922 2,167,035


Accumulated Surplus consists of the following:

Accumulated surplus/(deficit) from operations (50,389) 57,207Investment in tangible capital assets 2,318,922 2,167,035

Balance - End of Year 2,268,533 2,224,242


Certain of the prior year's figures, provided for purposes of comparison, have been reclassified to conformwith the current year's presentations.

12. PENSION AGREEMENT

The Health Unit contributes to the Ontario Municipal Employees Retirement Fund (OMERS), which is amulti-employer plan, on behalf of its employees. This plan is a defined benefit plan which specifies theamount of retirement income to be received by the employees based on length of service and rates of pay.The amount contributed to OMERS for 2014 was $728,525 (2013 - $554,545). These payments are forcurrent service and are included as an expense on the Statement of Operations and Accumulated Surplus.

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13. RELATED PARTY TRANSACTIONS

During year ended December 31, 2014, honorariums of $7,096 (2013 - $7,137) were paid to the Board ofDirectors.


The significant financial risks to which the Health Unit is exposed are credit risk and liquidity risk.

Credit RiskThe Health Unit's exposure to credit risk relates to its accounts receivable. The risk of significant creditloss is considered remote.

Liquidity RiskThe Health Unit's exposure to liquidity risk is dependent on receipt of funds from funding, receivables,and other related sources, whether in the form of Ministry contracts, donations, and/or advances.

15. CONTINGENT LIABILITIES

The Health Unit is subject to legal expenses, severance packages, and mediation fees arising from HumanResources issues.

The amount provided for represents management's best estimate of the Health Unit's liability related tothese issues for which it is probable that an amount will be paid. Because of the nature of these issues, theentity has not disclosed any additional information on the basis that they believe this would be seriouslyprejudicial to their position.

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To the Board Members, Council, Inhabitants and RatepayersBrantford Downtown Business Improvement Area of the City of Brantford

We have audited the accompanying financial statements of Brantford Downtown Business Improvement Area,which comprise the statement of financial position as at December 31, 2014, and the statements of revenue,expenses and accumulated surplus, change in net financial assets and cash flows for the year then ended, and asummary of significant accounting policies and other explanatory information.



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


OpinionIn our opinion, the financial statements present fairly, in all material respects, the financial position of BrantfordDowntown Business Improvement Area as at December 31, 2014, and the results of its operations and its cashflows for the year then ended in accordance with Canadian public sector accounting standards.


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Millard, Rouse & Rosebrugh LLPBrantford • Hagersville • Simcoe • Delhi • Norwich • Tillsonburg



BRANTFORD DOWNTOWN BUSINESS IMPROVEMENT AREA



Financial AssetsCash and short-term investments 10,143 25,812HST receivable 7,544 2,458Other receivables 2,404 -

20,091 28,270

LiabilitiesAccounts payable and accrued liabilities 1,460 1,130Due to the City of Brantford 9,683 7,473

11,143 8,603

Net Financial Assets 8,948 19,667

Non-Financial AssetsTangible capital assets (Note 3) 1,293 2,081Prepaid expenses 144 144

1,437 2,225

Net Assets 10,385 21,892

ACCUMULATED SURPLUS (Note 4) 10,385 21,892



STATEMENT OF REVENUE, EXPENSES AND ACCUMULATED SURPLUS

For the year ended December 31 Budget 2014 2013

RevenueLevy 154,000 154,101 130,003Supplementaries and deficiencies (10,000) (9,683) (7,476)

144,000 144,418 122,527Interest - 1 4Other 1,250 750 1,000

145,250 145,169 123,531

ExpensesSpecial projects 10,000 9,868 8,765Administration Salaries and benefits 99,081 68,853 60,985 Office 25,000 22,105 21,369 Memberships and conferences 2,000 4,726 2,892 Professional fees and insurance 4,000 3,701 4,632Website 1,000 302 416Events - 13,292 12,570Marketing 28,000 33,041 29,501Amortization - 788 559

169,081 156,676 141,689

Annual Deficit (23,831) (11,507) (18,158)Accumulated Surplus - Beginning of Year 21,892 40,050

Accumulated Surplus - End of Year 10,385 21,892



STATEMENT OF CHANGE IN NET FINANCIAL ASSETS


Annual Deficit (11,507) (18,158)Amortization of tangible capital assets 788 559Acquisition of tangible capital assets - (1,347)

Increase (Decrease) in Net Financial Assets (10,719) (18,946)

Net Financial Assets - Beginning of Year 19,667 38,613

Net Financial Assets - End of Year 8,948 19,667





Cash Flows from Operating ActivitiesAnnual Deficit (11,507) (18,158)Charges (credits) to income not involving cashAmortization 788 559

(10,719) (17,599)

Net change in non-cash working capital balances related to operations (4,950) 5,686

(15,669) (11,913)

Cash Flows from Capital ActivitiesPurchase of tangible capital assets - (1,347)

Net Decrease in Cash and Cash Equivalents (15,669) (13,260)

Opening Cash and Cash Equivalents 25,812 39,072

Closing Cash and Cash Equivalents 10,143 25,812




1. DESCRIPTION OF BUSINESS

The Brantford Downtown Business Improvement Area is an organization financed by a special levy onmunicipal taxes in a specific geographic area. The levy is collected by the municipality but administeredby the Business Improvement Area (BIA) to implement its program of activities for the year.

The BIA assists in the promoting and improving of Brantford's downtown area.

The BIA is established as a local board through a by-law passed by the municipal council of theCorporation of the City of Brantford.



The accrual basis of accounting is followed, whereby revenues are recorded when earned andexpenses are recorded when incurred.

(b) Use of Estimates

Since precise determination of many assets and liabilities is dependent upon future events, thepreparation of periodic financial statements necessarily involves the use of estimates andapproximations. These have been made using careful judgement.

(c) Gifts in Kind

Donated goods, services and facilities are not reported in these financial statements.

(d) Tangible Capital Assets

Tangible capital assets are stated at cost. Amortization is provided for in the accounts as follows:

Information technology 4 years straight lineFurniture and fixtures 10 years straight line

In the year of acquisition, amortization is provided for at one-half of the above rates. Noamortization is provided for in the year of disposal.

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3. TANGIBLE CAPITAL ASSETS

InformationTechnology

Furnitureand Fixtures Total 2014 Total 2013

CostBalance, beginning of year 3,568 1,123 4,691 3,344Additions during the year - - - 1,347Balance, end of year 3,568 1,123 4,691 4,691

Accumulated AmortizationBalance, beginning of year 1,880 730 2,610 2,051Amortization during the year 676 112 788 559Balance, end of year 2,556 842 3,398 2,610Net book value of tangible capital assets 1,012 281 1,293 2,081


Accumulated surplus consists of the following:

Accumulated surplus from operations 9,092 19,811Investment in tangible capital assets 1,293 2,081

10,385 21,892


The fair value of financial instruments, such as cash and short-term investments, HST/GST receivable andaccounts payable and accrued liabilities are determined to approximate their recorded values.

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STATISTICAL INFORMATION


Five-Year Financial Review(Unaudited)

Municipal Statistics

Fiscal Year 2014 2013 2012 2011 2010DemographicsPopulation as at December 31st1 97,499 95,532 94,586 93,650 94,493Area in acres at December 31st 17,986 17,986 17,986 17,986 17,986Employees - Continuous full time 1,229 1,232 1,204 1,262 1,212Employees - Part time 612 583 608 786 687Number of households 2 40,007 39,538 39,268 38,876 38,475

1. Stats Canada

2. MPAC

Municipal ProcurementTotal Construction Contracts awarded 51 51 46 35 40Total value of construction contract awarded 24,016,092$ 14,896,971$ 20,326,907$ 13,397,898$ 38,318,161$

Building Permits Issued:Residential Properties 652 589 606 615 676 Multi-residential properties 12 22 14 26 28 All other properties 218 269 276 270 350 Total Building Permits Issued 882 880 896 911 1,054

Value of Building Permits Issued:Residential Properties 59,121,000$ 33,130,000$ 32,122,000$ 25,727,000$ 34,520,000$ Multi-residential properties 15,008,000 11,111,000 5,882,000 17,115,000 15,943,000 All other properties 21,062,000 54,013,000 102,275,000 47,952,000 116,852,000 Total Value of Building Permits Issued 95,191,000$ 98,254,000$ 140,279,000$ 90,794,000$ 167,315,000$

Long-Term Debt

Fiscal Year 2014 2013 2012 2011 2010Long-Term DebtDebt Supported by property taxes and user fees 35,122,297$ 38,113,895$ 39,538,243$ 32,694,362$ 32,941,943$ Debt supported by consolidated municipal enterprises 2,236,640 2,504,136 2,763,997 1,338,954.00 3,260,144.00 Debt Supported by the County of Brant 436,270 444,114 451,517 458,503.00 465,098.00 Total Long-Term Debt 37,795,207$ 41,062,145$ 42,753,757$ 34,491,819$ 36,667,185$ Per Capita 387.65 429.83 452.01 368.31 388.04Per Household 944.71 1038.55 1088.77 887.23 953.01

Interest on Long-Term Debt 1,651,685$ 1,756,709$ 1,767,065$ 1,578,122$ 664,906$ Per Capita 16.94 18.39 18.68 16.85 7.04Per Household 41.28 44.43 45.00 40.59 17.28

Annual Debt Repayment Limit 47,258,878$ 45,232,903$ 44,315,113$ 44,855,144$ 48,089,821$

Property Taxation

Fiscal Year 2014 2013 2012 2011 2010Current Value Assessment by property class (in thousands of dollars)Residential 6,597,501$ 6,386,207$ 6,190,122$ 5,865,430$ 5,532,305$ Multi Residential 379,317 370,017 366,893 342,099 317,228 Commercial 1,128,554 1,053,641 1,067,684 980,276 884,237 Commercial - vacant 51,392 46,629 45,156 45,868 41,906 Industrial 341,421 343,678 373,120 369,461 353,426 Industrial - vacant 28,541 31,309 30,354 27,989 26,904 Farmland/managed forest 6,805 5,979 5,389 5,332 5,033 Pipeline 21,561 21,066 20,493 19,956 19,253 Total 8,555,092$ 8,258,526$ 8,099,211$ 7,656,411$ 7,180,292$

Tax RatiosResidential 1.00 1.00 1.00 1.00 1.00Multi-residential 2.13 2.13 2.06 2.14 2.14Commercial 1.88 1.88 1.89 1.94 1.94Industrial 2.47 2.47 2.50 2.63 2.87Farmland/managed forest 0.25 0.25 0.25 0.25 0.25Pipeline 1.74 1.74 1.74 1.74 1.74 Total Taxable Assessment Per Capita (in thousands of dollars) 87,745$ 86,448$ 85,628$ 81,756$ 75,988$

Commercial & Industrial Assessment as a percentage of total taxable assessment 18.12% 17.86% 18.72% 18.59% 18.20%

Commercial and Industrial Taxes as a percentage of total taxes levied

36.32% 35.71% 37.95% 39.14% 39.84%

Taxes Levied:Municipal Portion 127,347,135$ 124,946,445$ 120,514,018$ 117,490,362$ 116,469,465$ School Board Portion 37,143,467 37,166,377 37,279,570 38,740,991 40,665,914 Total 164,490,602$ 162,112,822$ 157,793,588$ 156,231,353$ 157,135,379$

Taxes Receivable, End of Year 4,865,004$ 8,994,408$ 8,927,810$ 8,791,019$ 7,803,275$ Percentage of current year tax levy 2.96% 5.55% 5.66% 5.63% 4.97%

Current year's tax collections 157,526,481$ 153,700,721$ 150,238,925$ 148,609,529$ 148,745,769$ Percentage of current year tax levy 95.77% 94.81% 95.21% 95.12% 94.66%

Total tax cash collections 164,692,062$ 162,056,677$ 157,066,007$ 153,701,118$ 155,851,489$

Property Taxation Cont.

Rates of Taxation by Property Class (expressed as a percentage of current value assessment)Fiscal Year 2014 2013 2012 2011 2010ResidentialFor general municipal purposes 1.198526% 1.210941% 1.187579% 1.206192% 1.246413%For school board purposes 0.203000% 0.212000% 0.221000% 0.231000% 0.241000%Total 1.401526% 1.422941% 1.408579% 1.437192% 1.487413%

Multi-ResidentialFor general municipal purposes 2.453622% 2.479038% 2.452232% 2.575823% 2.661715%For school board purposes 0.203000% 0.212000% 0.221000% 0.231000% 0.241000%Total 2.656622% 2.691038% 2.673232% 2.806823% 2.902715%

New Multi-Residential For general municipal purposes 1.797789% 1.816412% 1.781369% 1.809288% 1.869620%For school board purposes 0.203000% 0.212000% 0.221000% 0.231000% 0.241000%Total 2.000789% 2.028412% 2.002369% 2.040288% 2.110620%

CommercialFor general municipal purposes 2.247836% 2.271120% 2.241674% 2.335188% 2.413056%For school board purposes 1.460000% 1.490000% 1.490000% 1.628955% 1.744453%Total 3.707836% 3.761120% 3.731674% 3.964143% 4.157509%

Commercial - vacantFor general municipal purposes 1.573485% 1.589784% 1.569172% 1.634632% 1.689139%For school board purposes 1.022000% 1.043000% 1.043000% 1.140269% 1.221117%Total 2.595485% 2.632784% 2.612172% 2.774901% 2.910256%

Commercial-new construction For general municipal purposes 2.247836% 2.271120% 2.241674% 2.335188% 2.413056%For school board purposes 1.220000% 1.260000% 1.260000% 1.330000% 1.430000%Total 3.467836% 3.531120% 3.501674% 3.665188% 3.843056%

Commercial-new construction-vacant For general municipal purposes 1.573485% 1.589784% 1.569172% 1.634632% 1.689139%For school board purposes 0.854000% 0.882000% 0.882000% 0.931000% 1.001000%Total 2.427485% 2.471784% 2.451172% 2.565632% 2.690139%

IndustrialFor general municipal purposes 2.963955% 2.994657% 2.974173% 3.172285% 3.536448%For school board purposes 1.560000% 1.590000% 1.590000% 1.930000% 2.421963%Total 4.523955% 4.584657% 4.564173% 5.102285% 5.958411%

Industrial - vacantFor general municipal purposes 2.074768% 2.096260% 2.081921% 2.220600% 2.475501%For school board purposes 1.092000% 1.113000% 1.113000% 1.351000% 1.695348%Total 3.166768% 3.209260% 3.194921% 3.571600% 4.170849%

Property Taxation Cont.

Rates of Taxation by Property Class (expressed as a percentage of current value Fiscal Year 2014 2013 2012 2011 2010Industrial-new construction For general municipal purposes 2.963955% 2.994657% 2.974173% 3.172285% 3.536448%For school board purposes 1.220000% 1.260000% 1.260000% 1.330000% 1.430000%Total 4.183955% 4.254657% 4.234173% 4.502285% 4.966448%Industrial-new construction-vacantFor general municipal purposes 2.074768% 2.096260% 2.081921% 2.220600% 2.475501%For school board purposes 0.854000% 0.882000% 0.882000% 0.931000% 1.001000%Total 2.928768% 2.978260% 2.963921% 3.151600% 3.476501%

Farmland/managed forestFor general municipal purposes 0.299632% 0.302735% 0.296895% 0.301548% 0.311603%For school board purposes 0.050750% 0.053000% 0.055250% 0.057750% 0.060250%Total 0.350382% 0.355735% 0.352145% 0.359298% 0.371853%

PipelineFor general municipal purposes 2.085915% 2.107522% 2.066862% 2.099257% 2.169257%For school board purposes 1.392479% 1.416191% 1.440779% 1.481629% 1.523928%Total 3.478394% 3.523713% 3.507641% 3.580886% 3.693185%

Top 10 Corporate Tax Payers1. Ferrero Canada Ltd2. IG Investment Management Ltd.3. Ontario Lottery & Gaming Corporation4. Proctor & Gamble Inc.5. 290-300 King George Road GP Inc.6. Maistone Bakeries Co.7. 410 Fairview Drive Inc.8. Ontario Holding Ltd9. The Great-West Life Assurance Co.10. Union Gas Ltd.

Consolidated Statement of Operations

Fiscal Year 2014 2013 2012 2011 2010Sources of revenue:Taxation 131,289,499$ 128,532,084$ 123,793,937$ 120,841,955$ 119,788,172$ User charges 56,778,237 55,040,377 54,814,248 60,982,647 58,762,324 Government transfers 61,269,988 54,734,289 60,599,039 73,994,745 74,239,781 Rents and concessions 8,628,530 8,605,740 8,394,950 8,161,011 8,208,229 Investment income 1,169,406 1,134,686 1,215,650 1,127,424 1,096,401 Interest earned on reserves and reserve funds 2,298,999 1,951,241 1,926,945 1,781,665 1,497,989 Recoveries from other municipalities 3,979,285 4,379,539 5,740,170 4,199,073 4,238,193 Casino revenue 5,064,697 4,681,243 3,385,645 3,354,275 3,365,320 Deferred revenue earned 7,338,007 2,003,412 717,156 (690,272) 2,146,344 Provincial Offences Act and other fines 2,177,994 2,242,634 2,030,268 1,997,451 2,033,119 Licenses and permits 2,044,832 1,925,610 2,093,758 2,081,837 2,054,734 Penalties and interest on taxes 1,706,372 1,898,764 2,084,240 2,155,340 2,102,148 Income from Brantford Energy Corporation 2,651,362 2,651,362 2,651,362 3,309,022 2,643,281 Other 10,106,915 8,485,645 9,185,229 4,245,393 4,855,462 Total Sources of revenue 296,504,123 278,266,626 278,632,597 287,541,566 287,031,496 Contributed tangible capital assets 3,594,089 3,701,835 733,166 1,266,426 2,742,906 Change in Equity in Brantford Energy Corporation 2,364,493 (9,927,977) 1,256,897 1,056,070 1,133,338 Total revenue including other income/(expenses) 302,462,705$ 272,040,484$ 280,622,660$ 289,864,062$ 290,907,740$

Expenses by function:General government 12,255,702$ 12,388,354$ 11,435,630$ 13,272,689$ 12,652,736$ Protection to persons and property 54,551,981 52,101,813 51,225,841 49,238,619 47,610,894 Transportation service 32,060,643 28,079,927 26,809,641 28,944,012 26,875,619 Environmental services 41,381,988 29,758,481 28,013,100 30,799,204 26,648,897 Health services 6,635,106 6,845,744 6,405,490 5,069,585 5,052,746 Social and family services 73,978,827 74,422,371 71,261,598 73,052,824 74,505,181 Recreational and cultural services 26,061,518 25,075,298 24,985,982 23,571,960 22,297,836 Planning and development 9,563,581 11,107,124 6,826,123 5,721,387 6,428,793

Electrical utility services - 2,483,898 4,447,327 4,284,045 Total expenses by function 256,489,346 239,779,112 229,447,303 234,117,607 226,356,747 Amortization 33,525,944 31,944,084 30,939,520 27,835,430 28,784,923 Loss on disposal of tangible capital assets 7,534,463 392,401 726,788 987,477 200,339 Total expenses including other (income)/expenses 297,549,753$ 272,115,597$ 261,113,611$ 262,940,514$ 255,342,009$

Annual Surplus/(deficit)Annual surplus 4,912,952$ (75,113)$ 19,509,049$ 26,923,548$ 35,565,731$ Accumulated surplus, beginning of year 820,766,857 820,841,970 801,332,921 774,409,373 738,843,642 Accumulated surplus, end of year 825,679,809$ 820,766,857$ 820,841,970$ 801,332,921$ 774,409,373$

Consolidated Statement of Operations Cont.

Fiscal Year 2014 2013 2012 2011 2010Expenses by object:Salaries, wages and employee benefits 121,450,152$ 114,770,569$ 113,254,955$ 114,508,481$ 110,185,288$ Materials 57,567,033 32,910,206 28,749,436 30,023,629 29,063,338 Contracted services 28,914,178 52,006,421 50,081,237 48,097,220 46,182,533 External transfers 41,068,900 32,861,853 31,019,998 31,368,378 33,849,116 Amortization expense 33,525,948 31,944,084 30,939,520 27,835,428 28,784,923 Debt servicing 1,651,686 1,756,709 1,767,065 1,563,574 992,168 Loss on disposal of tangible capital assets 7,534,463 392,401 726,788 987,477 200,339 Other expenses 5,837,393 5,473,354 4,574,612 8,556,327 6,084,304 Total expenses 297,549,753$ 272,115,597$ 261,113,611$ 262,940,514$ 255,342,009$

Consolidated Statement of Financial Position

Fiscal Year 2014 2013 2012 2011 2010Consolidated Statement of Financial Position

Cash and cash equivalents 52,030,701$ 91,159,464$ 61,412,013$ 52,165,097$ 117,269,502$ Taxes receivable 4,865,004 8,994,408 8,927,810 8,791,019 7,803,275 Accounts receivable 16,840,750 14,111,491 17,894,039 23,266,133 16,241,851 Inventories held for resale 44,481 42,275 41,234 31,785 19,621 Land held for resale 1,114,983 1,114,983 1,114,983 535,140 535,140 Investments 139,259,375 82,954,790 105,954,495 102,338,216 28,156,099 Investment in Brantford Energy Corporation 29,947,148 27,582,655 37,510,632 36,253,735 35,197,665 Note Receivable - Brantford Power Inc. 24,189,168 24,189,168 24,189,168 24,189,168 24,189,168 Note Receivable - Brantford Hydro Inc. 1,303,335 1,303,335 1,303,335 1,303,335 1,303,335 Total financial assets 269,594,945 251,452,569 258,347,709 248,873,628 230,715,656 Non-financial assets 720,055,528 728,319,705 724,296,931 707,198,616 688,419,216

Total assets 989,650,473$ 979,772,274$ 982,644,640$ 956,072,244$ 919,134,872$

Accounts payable and accrued liabilities 36,889,613$ 37,023,753$ 43,763,481$ 44,277,160$ 38,965,493$ Deferred revenues 43,334,339 46,413,329 41,293,132 41,468,881 39,408,585 Vested sick leave 3,183,725 3,028,812 3,043,833 3,097,198 3,087,753 Post employment/retirement benefits 17,630,658 17,149,935 16,843,475 16,592,464 15,111,036 Accrued interest on long-term debt 442,497 464,283 470,839 385,890 400,438 Landfill closure and post closure liability 24,694,625 13,863,159 13,634,153 14,425,911 11,085,009 Net long term liabilities 37,795,207 41,062,145 42,753,757 34,491,819 36,667,185

Total liabilities 163,970,664$ 159,005,416$ 161,802,670$ 154,739,323$ 144,725,499$ Accumulated surplus 825,679,809$ 820,766,857$ 820,841,970$ 801,332,921$ 774,409,373$

Net financial assets 105,624,281$ 92,447,153$ 96,545,039$ 94,134,305$ 85,990,157$

*Consolidated Statement of Operations and Consolidated Statement of Financial Position have been restated for corrections to deferred revenue and Land Held for Resale. See note 2 in the Notes to the Consolidated Financial Statements.

Tangible Capital Assets

Fiscal Year 2014 2013 2012 2011 2010Tangible Capital Asset CostAssets- Beginning of Year 1,255,870,272$ 1,231,000,132$ 1,187,395,901$ 1,148,152,861$ 1,077,604,555$ Additions 36,835,669 66,585,965 56,237,165 123,234,827 76,501,765 Disposals and Transfers 11,385,697 41,715,825 12,632,934 83,991,789 5,953,459 Assets-End of Year 1,281,320,244$ 1,255,870,272$ 1,231,000,132$ 1,187,395,899$ 1,148,152,861$

Tangible Capital Assest AmortizationAccumulated Amortization - Beginning of Year 548,582,068$ 521,074,337$ 493,734,151$ 472,814,165$ 447,931,688$ Amoritzation expense 33,525,944 31,944,084 30,939,520 27,835,430 28,784,923 Accumulated Amortization on Disposal 5,117,612 4,436,353 3,599,334 6,915,446 3,902,446 Accumulated Amortization - End of Year 576,990,400$ 548,582,068$ 521,074,337$ 493,734,149$ 472,814,165$

Net Book Value of Tangible Capital Assets 704,329,844$ 707,288,204$ 709,925,795$ 693,661,750$ 675,338,696$

Net Book Value of Tangible Capital Assets by ClassLand 34,438,789$ 35,979,110$ 35,576,770$ 35,591,310$ 35,605,240$ Land Improvements 26,873,445 26,799,539 27,202,344 22,329,614 19,621,558 Building 136,064,301 142,369,679 112,419,319 117,311,393 74,150,077 Machinery & Equipment 30,820,079 30,451,964 29,617,446 31,838,640 31,990,229 Infrastructure 465,636,162 465,388,293 466,502,376 465,633,339 425,913,609 Assets under Constructions 10,497,068 6,299,619 38,607,540 20,957,454 88,057,983 Total 704,329,844$ 707,288,204$ 709,925,795$ 693,661,750$ 675,338,696$

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