Table of Contents

Chairperson’s Message 1 Corporate Profile 2 Organizational Structure 2 Board of Directors 3 Committees 3 Staff 4 Memberships 5 Partnerships 6 Projects 7 Infrastructure 7 Broadband 7 First Nation Broadband Expansion 8 Application 8 Broadband for E-Business and Marketing 8 NEOnet Geographic Information System 11 Productivity and Innovation Centre 11 Small Business Technology Assessment, Monitoring, and Planning 13 Education and Awareness 13 Community Presentations 13 Communications 14 Community Economic Development Policy Statement 14 Looking Forward 14 Project Funders 14 Auditor’s Report 15 Financial Statements 18 Chairperson’s Message

On behalf of the North Eastern Communications as well as direct them to technological solutions that will Network Inc.’s (NEOnet) Board of Directors, it is my aid them in achieving their goals. This initiative is funded by pleasure to present the 2014 Annual Report to you, our FedNor and will certainly be one to watch in 2015. members, partners and stakeholders. This report highlights NEOnet initiatives, which serve to enhance Information and In the past year, NEOnet continued to implement broadband Communications Technology (ICT) infrastructure, services infrastructure and ICT adoption projects. NEOnet along and awareness across our catchment spanning 200,000 with and NorthernTel completed square kilometres and sixty communities from Temagami the deployment of high-speed Internet throughout the to the James Bay Coast, and Foleyet to the Quebec border. community, with a take-up rate nearing 100 percent. In addition to this broadband initiative, NEOnet continued NEOnet was proud to welcome the Productivity and to research and identify gaps in high-speed Internet Innovation Centre (PIC) into its offices in early 2014. NEOnet availability throughout the catchment area in preparation along with the Timmins Economic Development Corporation of issuing requests for proposals (RFPs) in 2015 with the and a number of other community partners are supporting goal to reduce service gaps. With respect to ICT adoption, the development of the centre, which provides assistance NEOnet and twenty-one community partners launched the to area small and medium-sized enterprises (SMEs) with NEOnet Geographical Information Systems (GIS) project, respect to the evaluation of productivity, implementation of funded by FedNor and Heritage Fund strategies to improve productivity, and commercialization Corporation (NOHFC), in June 2014. In the months that of products. NEOnet’s long-term goal is the establishment followed, project partners began the digitization of historical of a Centre of Excellence in Productivity and Innovation. In information and cataloging of municipal infrastructure. The 2014, PIC developed a productivity assessment tool and GIS project is scheduled to run through to the summer of trained regional consultants on its implementation, and 2016. established strong professional relationships within the communities it serves. In 2015, PIC will be in full swing so It has been another great year for NEOnet, one that could keep an eye out for new events, workshops, and partnership not have been accomplished without the dedication of our opportunities. Board of Directors and staff, and of course the support of FedNor and NOHFC. NEOnet’s staff is responsible NEOnet’s Broadband for E-business and Marketing for moving these projects forward on a daily basis by (BEAM) initiative distributed a second round of funding – working with our funders, partners and stakeholders. Its supported by FedNor – increasing the number of SMEs wealth of knowledge and skills assist the organization in receiving assistance to over three hundred. The BEAM implementing its vision. initiative provides SMEs with financial assistance in the development of a web presence, branding materials, Finally, I thank the Board of Directors. Your varied and the incorporation of e-commerce solutions within the experience, knowledge and professional networks have business’ website, as well as an educational component provided NEOnet with the resources necessary to continue that provides participants with valuable insight into website improving the region’s ICT infrastructure and awareness. maintenance, marketing, and social media. I’m excited to inform you that a third round of funding was secured in late On behalf of the Board of Directors, I thank our project 2014 and NEOnet will continue to deliver this initiative in partners for another productive and successful year, and I 2015. wish you continued success in 2015.

In addition to the BEAM initiative, NEOnet’s commitment to Sincerely, improving the competitiveness of area SMEs through the adoption of ICT resulted in the development and approval of the Small Business Technology Assessment Monitoring and Planning (STAMP) project in 2014. This project will assist area businesses in reviewing how their current use of technology impacts short and long-term business goals, Denis Bérubé, NEOnet Chair Corporate Profile

NEOnet is a non-profit organization, established in 1999, that has since acted as the region’s ICT champion. Its mandate is to promote and develop the three pillars of the ICT sector: infrastructure, application, and education and awareness.

NEOnet’s catchment area covers sixty communities in 200,000 square kilometres. The distance combined with the low population density (0.5 persons per square kilometre) present a significant challenge to improving the telecommunications landscape in our area. NEOnet has helped reduce the digital divide in rural and remote communities. Its initiatives have stimulated over 120 million dollars in ICT infrastructure development within the region.

Organizational Structure

Board of Directors

Executive Committee

Director of Operations

Bilingual Regional Project Coordinator Project Facilitator Outreach Coordinator

2 Board of Directors Standing Committees

NEOnet’s dedicated Board of Directors governs and Executive Committee provides direction to the organization. The Directors The Executive Committee advises the Board on matters represent the region’s economic development, education, of finance, policy and mandated activities. health, industry, and human and social services organizations. NEOnet extends its sincere thanks to its Denis Bérubé Dr. Claude Vézina Board of Directors for their service in 2014. Gerry Talbot Denis Bérubé, Chairperson Gérard Bruneau North Claybelt Community Futures Development Dan Martel Corporation (CFDC) Personnel Committee Dr. Claude Vézina, Vice Chair Timmins and District Hospital The Personnel Committee is a sub-committee of the Executive Committee. It advises the Board on matters of Gerry Talbot, Treasurer human resources. Gogama Denis Bérubé Gérard Bruneau, Director at Large Dr. Claude Vézina NorthernTel Gerry Talbot Gérard Bruneau Dan Martel, Director at Large Dan Martel Ontera

John Bernstein, Director Ad Hoc Committees South Temiskaming CFDC Ad Hoc Committees help guide and implement projects, Linda Côté, Director and provide recommendations to the Board of Directors Independent for binding decisions.

Guy Guindon, Director Timmins and District Hospital BEAM Review Committee Denis Bérubé Steve Kidd, Director Gérard Bruneau Eastlink Linda Côté Guy Guindon Paula Mangotich, Director Paul Ouimette Kirkland and District Community Development Corporation STAMP Steering Committee Sara Munroe, Director Denis Bérubé Northern College of Applied Arts and Technology Gérard Bruneau Gerry Talbot Paul Ouimette, Director Aecon CED Policy Steering Committee Andy Yu, Director City of Timmins Dan Martel Paul Ouimette Gerry Talbot

3 Staff

NEOnet operated with four core staff in 2014: Director of Operations, Bilingual Regional Outreach Coordinator, Project Facilitator, and Project Coordinator. The organization did not engage project-specific contract personnel.

The team is responsible for moving ICT projects forward with direction from its Board of Directors. NEOnet recognizes its staff for their continued efforts and dedication.

Chris McLaughlin, Director of Operations Cora-Lyne Ethier, Bilingual Regional Outreach Coordinator Sharon Jones, Project Facilitator Lance Pawluk, Project Coordinator Laura Imhoff, Project Coordinator Ana Blouin, Project Development Manager, PIC

Memberships

NEOnet extends its sincere thanks to its 40 members, who made financial and in-kind contributions to NEOnet in 2014.

Aecon South Temiskaming CFDC City of The Venture Centre City of Timmins Timmins and District Hospital Cochrane District Social Services Administration Board Timmins Chamber of Commerce Davidson de Laplante Insurance Brokers Ltd. Timmins Economic Development Corporation District School Board Ontario North East Town of Cochrane Eastlink Town of Gogama Local Services Board Town of Hearst Kirkland and District Community Development Corporation Town of Iroquois Falls Lucid Networks Town of Kapuskasing M-Tel Consulting Service Town of Moosonee Municipality of Temagami Township of Black River-Matheson Municipality of Mattice-Val Côté Township of Nord-Aski Regional Economic Development Corporation Township of James North Claybelt CFDC Township of Larder Lake North Eastern Ontario Family and Children’s Services Township of Matachewan Northern College of Applied Arts and Technology Township of McGarry NorthernTel Township of Moonbeam Ontera Township of Opasatika Ross Pope LLP Township of Val Rita-Harty

4 Partnerships

NEOnet gratefully acknowledges the support and participation of more than 150 public and private sector partners. Thanks to the cooperation of its partners, NEOnet remains an organization that is truly community-based.

Adnet Gogama CAP site Adult Learning Centre Cochrane and Iroquois Falls Gogama Local Services Board Aecon Hearst Public Library Armstrong Township Public Library Iroquois Falls CAP site Association Canadienne Française de l’Ontario Iroquois Falls Community Development Team Ateliers des pionniers et pionnières du Nord Iroquois Falls Public Library and CAP site Bell J. R. Nakogee Elementary School Beyond Wireless Kap Information Technology Services Black River-Matheson Public Library and CAP sites Kapuskasing Public Library Blue Sky Network Kirkland and District Community Development Corporation Cameron Graphics CAP sites Chapleau Public Library Larder Lake Public Library Chartwell Château Georgian Retirement Residence Latchford Public Library City of Temiskaming Shores Logikal Code City of Timmins Lucid Networks Clearlogic Consulting Professionals M-Tel Consulting Services Cobalt Public Library and CAP site Matachewan Community Centre Cochrane District Social Services Administration Board Matachewan First Nation Cochrane Public Library Collège Boréal Mattagami First Nation CAP site Companion Restaurant Mattice-Val Côté Public Library Computers for Schools McGarry Public Library and CAP site Connaught CAP site Moonbeam Public Library Conseil scolaire catholique de district des Moose Education Authority Grandes Rivières Moosonee Native Friendship Centre Cor Consulting Municipality of CTV Municipality of Mattice-Val Côté Davidson de Laplante Insurance Brokers Ltd. Municipality of Temagami District of Timiskaming Social Services Muskoka Community Network Administration Board National Research Council (Industrial Research District School Board Ontario North East Assistance Program) Eastlink NetCentral Elk Lake Public Library Nord-Aski Regional Economic Development Corporation Englehart Public Library and CAP site North Centennial Manor Extendicare Kirkland Lake North Claybelt CFDC Fauquier-Strickland Municipal Library Northdale Manor FedNor Northeastern Catholic District School Board Foleyet Local Services Board Northern College of Applied Arts and Technology Foleyet Metis Pathfinders CAP site Northern Lights Library Network Francine J Wesley Secondary School Northern Ontario Heritage Fund Corporation

5 Partnerships (Continued)

NorthernTel Town of Kirkland Lake NorthernTel Mobility Town of Latchford Ontario Library Services – North Town of Moosonee Ontario Ministry of Agriculture, Food and Rural Affairs Town of Smooth Rock Falls Public Library Ontario Ministry of Northern Development and Mines Town of Temagami Ontario Ministry of Tourism, Culture and Sport Township of Armstrong Ontera Township of Black River-Matheson Opasatika Public Library Township of Casey Parolink Township of Chamberlain Productivity and Innovation Centre Township of Coleman Ramore Public Library CAP site Township of Evanturel Ross Pope LLP Township of Fauquier-Strickland Schumacher CAP site Township of Gauthier Smooth Rock Falls Resource Centre Township of Harley South Porcupine CAP site Township of Hilliard South Temiskaming CFDC Township of Hudson Southern Ontario Library Services Township of James Spruce Hill Lodge Township of Kerns Sultan CAP Site Township of Larder Lake Teck Centennial Library Township of Lebel (King Kirkland) Teck Pioneer Residence Township of Matachewan Télécommunications Xittel Township of McGarry Temagami Public Library Township of Moonbeam Temiskaming Shores and area Chamber of Commerce Township of Opasatika Temiskaming Shores Public Library Township of Val Rita-Harty The Venture Centre Val Rita-Harty Public Library Timiskaming Health Unit Vezina Secondary School Timmins and District Hospital Vianet Timmins Chamber of Commerce Village of Gowganda Timmins Economic Development Corporation Village of Kenogami Timmins Native Friendship Centre CAP site Village of Sesekinika Timmins Public Library CAP site Village of Shining Tree Town of Cobalt Village of Town of Cochrane Village of Westree Town of Englehart Town of Hearst Western James Bay Telecom Network Town of Iroquois Falls Xplornet Town of Kapuskasing YuZhu Web Development

6 Projects

NEOnet’s approach to large-scale project management NEOnet is proud of its accomplishments, however it echoes its mandate: it works with stakeholders to develop recognizes that there is still work to be done. In an effort to infrastructure, applications and awareness concurrently, improve upon its successes, NEOnet along with Blue Sky so that funded projects are sustainable and encourage Net and Muskoka Community Network have been working competition. with private sector Internet Service Provides (ISPs) to establish the current state of broadband facilities available throughout northern Ontario. The resulting Broadband Expansion and Associated Infrastructure Mapping Analysis (BAIMap) project utilizes a geographical information system application to illustrate the availability of high-speed Infrastructure Internet and the variety of delivery mechanisms employed by the ISPs.

In determining what level of service should be considered high-speed, NEOnet and its partners defer to the Canadian Radio-Television and Telecommunications Commission (CRTC) decision of 2011 (Telecom Regulatory Policy CRTC Applications Awareness 2011-291), which establishes 5 megabits per second (Mbps) download and 1 Mbps upload as the minimum requirement for Internet service to be consider high- speed. With this guideline in place, NEOnet analyzed the availability of high-speed Internet throughout the catchment culminating in a State of Broadband in Northeastern Ontario summit that took place in January 2015. The purpose of the summit was to bring all of the stakeholders together to highlight the current conditions and to discuss how to move forward with broadband infrastructure projects that will delivery high-speed Internet service that exceeds the Infrastructure CRTC guideline – an initial minimum service delivery of 10 Mbps download with scalability of up to 25 Mbps by 2020. NEOnet has a mandate to encourage and facilitate private-public partnerships that result in NEOnet has established five broadband infrastructure better telecommunications infrastructure and ICT- project areas, including 1) Timmins – Matheson Corridor, related services in the region. 2) Cochrane – Hearst Corridor, 3) Moosonee/Moose Factory, 4) Matachewan – Kirkland Lake Corridor, and 5) Broadband Foleyet – Temagami Corridor. RFPs are under development for these projects areas and will be issued in early 2015. Since inception, NEOnet and its public and private NEOnet anticipates that the total project costs will near sector project partners have improved access to high- 10 million dollars. NEOnet is optimistic that these projects speed Internet across northeastern Ontario – with forty will commence in fall 2015 and take less than two years to communities gaining access to high-speed Internet and complete. over eight hundred small businesses gaining access to satellite Internet.

7 Matachewan First Nation Broadband Expansion

NEOnet managed a broadband deployment project for Matachewan First Nation, which saw the installation of DSL service to over thirty-seven dwellings in the community. The project, supported by FedNor and Matachewan First Nation, wrapped up in March 2014. The strength of the Matachewan First Nation broadband solution is its sustainable design; the extension of fibre optic networks and provisioning of dedicated wireline broadband access via a high bandwidth expandable Ethernet IP/MPLS Network Core.

The service delivery architecture provides consistency in connection, sustainability of bandwidth and low latency to enhance the user experience on real time applications. The technology provides a service delivery platform that has the capacity, scalability and flexibility to meet the evolving needs of the community for not only broadband access, but also rural innovation and economic development through high bandwidth data services.

Application

NEOnet has a mandate to promote the development and innovative application of technology, especially as it pertains to the economic, cultural and social development of northeastern Ontario.

Broadband for E-Business and Marketing

NEOnet’s BEAM initiative, supported by Fednor, offers of recipients reported they reached markets outside a framework that helps SMEs define their objectives for their locality, 44 percent reached other northern Ontario technology application and encourages them to implement markets, 24 percent reached Ontario markets outside of and maintain online operations by providing education and northern Ontario, 13 percent reached Canadian markets a subsidy at a rate of 75 percent up to a maximum of 5,000 outside of Ontario, 13 percent reached American markets, dollars for eligible development costs. and 6 percent reached other international markets. NEOnet believes businesses must leverage the economic benefit of NEOnet received one million dollars in funding from Fednor broadband access to remain competitive in today’s digital for BEAM I and II. BEAM II officially wrapped up in November marketplace. BEAM has helped SMEs transform how they 2014. Since its launch in 2011, the BEAM initiative supported do business at home and abroad, tying the region to what 320 SMEs. Six months following exit from the program has become a global marketplace. participants responded to NEOnet’s exit survey; 87 percent

8 BEAM (Continued)

NEOnet continues to review survey data and as required BEAM continues to increase its regional representation update the delivery of its program to ensure it correlates to include communities from outside of Timmins. BEAM II with area needs. has a regional representation of 43 percent; compared to 25 percent in BEAM I. Regional representation rates are In November 2014, NEOnet received 500,000 dollars from estimated to increase in BEAM III. Fednor for BEAM III. Since its launch, NEOnet conducted four introduction seminars with thirty SMEs and twelve NEOnet engaged a BEAM Aftercare Coordinator in early consultations. The BEAM Review Committee has approved 2015 to monitor use of BEAM-funded solutions and help two BEAM III applications in 2014. build capacity. Aftercare services are available to BEAM I, II and III recipients. BEAM III provides funding for basic website design (maximum of 1,500 dollars), enhanced business operations The following SMEs received funding from NEOnet’s BEAM (maximum of 2,500 dollars) and content and presentation initiative in 2014. Click on the images to access their (maximum of 1,000 dollars). Applicants are required to websites. participate in an introductory seminar, a consultation and two workshops, available face-to-face and online.

5th Wheel Training Institute Dr. Chisholm Optometrists Access Better Living Inc. A.C.E Contracting Alexander Cochrane & Sons Services

Advanced Security Aesthetics by Line Algoma Highlands Wild Blueberry Andorra Lodge Beach Garden Condominiums

Bliss Beauty Bar Blue Haven Lodge Brigitte Auger Bully Software Burtons Fine Furnishings

Canoe Parts Casa Di Media Productions Cochrane District Social Planning Council Chico’s Fix It All Companion Hotel Motel

9 Cor Consulting Cursor Communications Decorative Strokes Dorrington and Associates Doucet Power & Controls

Direct Specialty Industrial Services Evans, Bragagnolo & Sullivan LLP Energie Kapuskasing Energy Evocative Lifestyles Flood’s Landing

FJL CPAs Good Time Outfitters Gravity Health & Chiropractic GTC Equipment Services Hearst Villa Inn & Suites

Holistic Health Centre HRmonize John’s Neon Signs Joe Coholic Custom Furniture LTD. John’s Tackle Box

JR Timber Firewood and Lumber K2D Technologies Inc. Kesagami Wilderness Lodge G. Lajoie Enterprises Ltd. Lemongrass Custom Floral & Home Décor

Les Chauves-Sourient Materials Joining Innovation Centre Group of Companies LP MCL Safety and Training Moose Horn Lodge

Murray Lake Cottages Nagagami Lodge Northern Corridor EFAP Noront Communication Contracting LTD. Northern Corridor Snowmobile Association

Northern Marble & Granite Co. O’Briens Classic Grill Temagami Daily Bread Pearly Whites Plus Petersen Consulting

Picturesque Stone Porcupine Canvas Innovative Products Pure Botanics Stewart Realty Ltd. Brokerage Rehab Plus Rehabilitation & Fitness Centre

10 Renson Yard Contractor Rental House Restore Physiotherapy Rheault Distillery Ray Perrier Music

S L Sheet Metal Steinberg & Mahn Ltd. SWM Contracting Temiskaming Festival of Music Talbot Surveys Inc.

Tanny Convenience Store Gift & Flower Shop Timmins Police Association Abitibi Outfitters – Ultimate Hunts Wannabe Fisherman White Pine Lodge

Western James Bay Telecom Network Work Monster Inc. YPBS Consulting

NEOnet Geographic Productivity and Innovation Information System Centre

The 1.17 million dollar project, supported by FedNor, PIC, supported by FedNor and NOHFC, opened its doors in NOHFC and twenty-one community partners, aims April 2014 with a mission to deliver and help organizations to enhance a sustainable municipal GIS solution that access programming to realize operational efficiencies. supports municipal operations for communities that have Over sixty guests attended the centre’s grand opening, not benefited from previous GIS projects. The project will at Northern College within NEOnet – its permanent home. lead to increased efficiencies in capital planning, zoning, NEOnet along with the Timmins Economic Development permits and maintenance, as well as planning in the areas Corporation and a number of other community partners are of tourism, economic development, health, education, supporting the development of PIC. and lifestyle. The partner communities continue to convert historical information (i.e. maps, parcels and community PIC facilitates access to provincial/federal innovation infrastructure) into digital form so they can be integrated programming through the Ontario Network of Entrepreneurs into the GIS solution. All partners have access to basic road, (ONE), Ontario Centres of Excellence (OCE), Industrial sewer and parcel data. NEOnet and its partners will identify Research Assistance Program and other sources to assist the highest priority project segments and move forward with all stages of business development, from research and with RFPs in spring 2015. The GIS project is scheduled to development (R&D) to commercialization. wrap up in summer 2016.

11 PIC (Continued)

The centre is recognized as a member of ONE and continues to work with the Ministry of Research and Innovation and the Ministry of Economic Development, Employment, and Infrastructure to become a member of the Northern Technology Alliance and to be officially recognized as a Regional Innovation Centre.

During Small Business Week, PIC partnered with NEOnet to offer a Continuous Improvement workshop, hosted the Steering Committee Northern Ontario Innovation Information Forum WebEx, and presented the National Science and Engineering Research John Bernstein South Temiskaming CFDC Council’s R&D Grant Funding Boosting Innovation workshop in collaboration with the Business Enterprise Centre, Natural Patricia Buttineau Sciences and Engineering Research Council of Canada, Goldcorp Porcupine Gold Mines and and the Northern Ontario Applied Research Institute. Timmins Chamber of Commerce

Roxanne Daoust PIC launched its brand, including online forms, website The Venture Centre and logo in 2014. Julie Joncas PIC funding covers up to 4,000 dollars (80 percent) of the Far Northeast Training Board cost of the operational assessment. The consultant selected Tori Hanson by the firm from a database of fifteen qualified consultants Northern College of Applied Arts and Technology uses a productivity assessment tool to review all aspects of the business’ operations and provides a report that outlines Kathy Keast operational strengths and weaknesses and identifies National Research Council Canada opportunities to improve operational efficiencies. Monique Koski Millson Forestry Service Based on the recommendations of the productivity assessment, the firm can access up to 5,000 dollars Ross MacDonald (80 percent of eligible costs) in funding support toward Timmins Economic Development Corporation modernizing equipment, management training to improve Chris McLaughlin the work culture, and operational efficiencies among other NEOnet things. Jeff Molyneaux Organizations with a primary revenue from agriculture, clean Materials Joining Innovation Centre technologies, construction, digital media & information technology, energy, environment, forestry, mining or Contact Information manufacturing, may be able to access up to 9,000 dollars Ana Blouin, Project Development Manager in total funding support to become more competitive and (705) 269-1354 capitalize on new opportunities. [email protected] www.picontario.ca

12 Small Business Technology Assessment, Monitoring, and Planning

The STAMP initiative, supported by FedNor, fosters Third-party ICT specialists selected from northeastern adoption of innovative ICT applications, improving the Ontario’s talent pool will work with SMEs to develop short competitiveness of area SMEs. and long-term ICT goals, and support them in creating a strategic plan and IT adoption toolkit. Applicants will also NEOnet issued a RFP in April 2014. The STAMP Steering receive information on other funding opportunities (e.g. Committee (link) reviewed the proposals and NEOnet PIC, BEAM, and IRAP’s Digital Technology Adoption Pilot engaged the services of Clearlogic Consulting Professionals Program). Eligible applicants will receive a subsidy at a to develop and test the STAMP assessment tool. rate of 75 percent for the first 5,000 dollars in consulting costs, and an additional 50 percent for the remaining 5,000 The consultants conducted two trial assessments in dollars. December 2014, with another to follow. The STAMP Steering Committee is working with its partners and Clearlogic Funding from FedNor in the amount of 300,000 dollars for Consulting Professionals to assess the effectiveness of the STAMP will enable NEOnet to support a part-time position. tool and report template prior to its launch in May 2015.

Education and Awareness

NEOnet has a mandate to increase awareness and adoption of information technology, thereby increasing demand for services and fostering a more competitive ICT environment. FedNor supports NEOnet’s education and awareness initiatives.

Community Economic Development Policy Statement

Building on the 2013 Community Economic Development The underlying principle of the policy is that NEOnet Technology Needs Assessment findings, NEOnet embarked believes that the region requires an ICT champion, and on formalizing its approach to ICT projects. NEOnet and that this service is essential to community economic its partners recognize the impact ICT has on the overall development across its catchment. This is true from the health of the region’s local economies, and strive to further smallest communities to the largest cities. The policy was enhance opportunities for further ICT development. accepted by NEOnet’s Board of Directors and now guides the decision-making process with respect to new ICT NEOnet drafted its policy statement around community projects. economic development in recognition that all of the corporation’s initiatives can be considered as vehicles for economic development in one form or another.

13 Community Presentations Communications

NEOnet promotes greater awareness and adoption NEOnet’s external communications are guided by its of technology through the delivery of educational and communication plan and regional mandate. In 2014, professional development events, both formal and informal. the organization maintained bilingual communications The organization delivers community presentations within throughout the region via its social networks (Facebook, its catchment area on ICT-related topics, including Twitter and LinkedIn), website, and publications, including etiquette, Internet safety (for children and adults), writing monthly Wired newsletters, quarterly project updates, and for the Web, cyberbullying, e-commerce, and social media quarterly industry-specific newsletters. NEOnet features (for businesses and non-profit organizations). NEOnet its resources (e.g. List of Northeastern Ontario Website continuously introduces new topics that correlate with Developers) on its website. The organization continues to community needs. have a good working relationship with regional media.

NEOnet installed exterior signage at its new home within Northern College in August 2014.

Looking Forward Project Funders

NEOnet is excited about what 2015 has in store, as it works to build on the success achieved in 2014. NEOnet looks forward to working with its partners on the GIS project, delivering the BEAM III initiative, supporting the development of PIC, launching the STAMP assessment tool, and initiating broadband infrastructure projects designed to bring greater levels of high-speed Internet services to the catchment area. In addition, NEOnet’s Board of Directors will meet in the summer of 2015 to review the organization’s current projects and strategize on future projects, to ensure that the organization’s objectives are in line with those of the communities it represents.

At the heart of all NEOnet projects is the goal to increase the competitiveness of our northeastern Ontario communities, making them desirable locations to establish new businesses or enhance investment in existing operations. NEOnet accomplishes this goal through the development of the region’s ICT backbone and the promotion of ICT applications to area businesses and residents.

NEOnet’s vision for 2015 can be summed as enabling opportunities through ICT development. Thank you!

14 Auditor’s Report

NORTH EASTERN ONTARIO COMMUNICATIONS NETWORK INC. (Operating as NEOnet Inc.) Financial Statements Year Ended December 31, 2014 Auditor’s Report

NORTH EASTERN ONTARIO COMMUNICATIONS NETWORK INC. (Operating as NEOnet Inc.) Index to Financial Statements Year Ended December 31, 2014

Page

INDEPENDENT AUDITOR'S REPORT 1

FINANCIAL STATEMENTS

Statement of Financial Position 2

Statement of Revenues and Expenses 3

Statement of Changes in Net Assets 4

Statement of Cash Flow 5

Notes to Financial Statements 6 - 7

Schedule of Projects (Schedule 1) 8

Project Expenses (Schedule 2) 8 Auditor’s Report

Ross Pope LLP Telephone (705) 264-9484 CPAs Fax: (705) 264-0788 101 Cedar Street South Email: [email protected] Timmins, Ontario P4N 2G7 www.rosspope.com

INDEPENDENT AUDITOR'S REPORT

To the Members of North Eastern Ontario Communications Network Inc. (Operating as NEOnet Inc.)

We have audited the accompanying financial statements of North Eastern Ontario Communications Network Inc., (Operating as NEOnet Inc.), which comprise the statement of financial position as at December 31, 2014 and the statements of revenues and expenses, changes in net assets and cash flow for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with Canadian accounting standards for not-for-profit organizations, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor's Responsibility

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

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

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

Basis for Qualified Opinion

Canadian accounting standards for not-for-profit organizations require that capital assets be recorded at cost and amortized over their useful life. The corporation has decided not to change its reporting policies with respect to capital assets and continues to expense its fixed assets as described in Note 2. We were unable to quantify the effect on assets, expenses, excess of revenue over expenses, and net assets. In this respect, the financial statements are not in accordance with Canadian accounting standards for not-for-profit organizations.

Qualified Opinion In our opinion, except for the effects of the matter described in the Basis of Qualified Opinion paragraph, the financial statements present fairly, in all material respects, the financial position of North Eastern Ontario Communications Network Inc., (Operating as NEOnet Inc.), as at December 31, 2014 and the results of its operations and its cash flow for the year then ended in accordance with Canadian accounting standards for not-for- profit organizations.

Timmins, Ontario Ross Pope LLP April 2, 2015 Chartered Professional Accountants Licensed Public Accountants

1 Financial Statements Financial Statements

NORTH EASTERN ONTARIO COMMUNICATIONS NETWORK INC. (Operating as NEOnet Inc.) Statement of Revenues and Expenses Year Ended December 31, 2014

2014 2013

REVENUE Projects (Schedule 1) $ 482,512 $ 739,636 ICT 255,488 233,062 Interest 4,277 3,739 Memberships and contributions 8,000 9,500 Management fees - 1,695

750,277 987,632

EXPENSES Advertising and promotion 8,314 5,708 Insurance 4,547 4,102 Interest and bank charges 376 199 Meetings 1,798 1,678 Memberships 1,306 1,237 Office 4,019 11,821 Projects (Schedule 2) 482,674 739,200 Professional fees 6,778 7,745 Rental 20,395 19,468 Telecommunications 3,939 4,882 Training, travel and conferences 12,396 18,068 Wages and employee benefits - core 192,623 158,174

739,165 972,282

EXCESS OF REVENUE OVER EXPENSES $ 11,112 $ 15,350

See notes to financial statements 3 Financial Statements

NORTH EASTERN ONTARIO COMMUNICATIONS NETWORK INC. (Operating as NEOnet Inc.) Statement of Changes in Net Assets Year Ended December 31, 2014

2014 2013

NET ASSETS - BEGINNING OF YEAR $ 197,598 $ 182,248 Excess of revenue over expenses 11,112 15,350

NET ASSETS - END OF YEAR $ 208,710 $ 197,598

See notes to financial statements 4 Financial Statements

NORTH EASTERN ONTARIO COMMUNICATIONS NETWORK INC. (Operating as NEOnet Inc.) Statement of Cash Flow Year Ended December 31, 2014

2014 2013

OPERATING ACTIVITIES Excess of revenue over expenses $ 11,112 $ 15,350

Changes in non-cash working capital: Accounts receivable 228,175 19,890 Accounts payable (196,758) (23,112) Deferred income 39,081 114,380 Prepaid expenses (10) (64) HST receivable (875) 794

69,613 111,888

INCREASE IN CASH FLOW 80,725 127,238

Cash - beginning of year 352,358 225,120

CASH - END OF YEAR $ 433,083 $ 352,358

See notes to financial statements 5 Financial Statements

NORTH EASTERN ONTARIO COMMUNICATIONS NETWORK INC. (Operating as NEOnet Inc.) Notes to Financial Statements Year Ended December 31, 2014

1. DESCRIPTION OF BUSINESS

North Eastern Ontario Communications Network Inc. was incorporated without share capital under the corporation Act of Ontario on November 23, 1999. The corporation qualifies as a not- for-profit organization under The Income Tax Act and as such is exempt from income taxes.

The corporation's mandate is to facilitate private and public partnerships that will result in better telecommunications infrastructure and information, communication and technology (ICT) services in the region; to increase awareness and adoption of information communication technologies thereby increasing demand for services and fostering a more competitive environment; and to promote the development and innovative application of technology, especially as it pertains to the economic, cultural and social development in North Eastern Ontario.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of presentation

The financial statements were prepared in accordance with Canadian accounting standards for not- for-profit organizations (ASNFPO).

Measurement uncertainty

The preparation of financial statements in conformity with Canadian accounting standards for not- for-profit organizations requires management to make estimates and assumptions that affect the reported amount of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. Such estimates are periodically reviewed and any adjustments necessary are reported in earnings in the period in which they become known. Actual results could differ from these estimates.

Administration fees

Internal administration fees are charged to projects and are determined by management with reference to core operating expenses attributable to the projects. The administration revenue is recorded in the statement of operations.

Accounting for contributions

The corporation follows the deferral method of accounting for contributions other than for contributions for the purchase of capital assets.

Revenue recognition

Revenue is recognized when services have been rendered. Contributions relating to approved expenses are recognized on the accrual basis when the amount can be measured and the expenses has been incurred.

(continues)

6 Financial Statements

NORTH EASTERN ONTARIO COMMUNICATIONS NETWORK INC. (Operating as NEOnet Inc.) Notes to Financial Statements Year Ended December 31, 2014

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Fixed assets

The corporation expenses fixed asset additions in the year acquired. During the year, a computer was purchased for $1,414.

Financial instruments policy

Financial instruments are recorded at fair value when acquired or issued. In subsequent periods, financial assets with actively traded markets are reported at fair value, with any unrealized gains and losses reported in income. All other financial instruments are reported at amortized cost, and tested for impairment at each reporting date. Transaction costs on the acquisition, sale, or issue of financial instruments are expensed when incurred.

3. DEFERRED INCOME

2014 2013

FedNor - ICT $ 37,763 $ 54,384 FedNor - BEAM I & II - 96,928 Fednor - BEAM III 70,250 - FedNor - GIS 73,453 - FedNor - STAMP 10,877 - Memberships - 2,000

$ 192,343 $ 153,312

4. FINANCIAL INSTRUMENTS

The company is exposed to various risks through its financial instruments. It is management's opinion that they are not exposed to any significant credit, liquidity, market, currency, interest rate and other price risk as of December 31, 2014.

5. ECONOMIC DEPENDENCE

A significant portion of the corporation's revenue is derived from government funding. The corporation's continued operations are therefore contingent on securing funding.

7 Financial Statements

NORTH EASTERN ONTARIO COMMUNICATIONS NETWORK INC. (Operating as NEOnet Inc.) Schedule of Projects (Schedule 1) Year Ended December 31, 2014

2014 2013

REVENUE FedNor Matachewan Broadband Infrastructure $ 61,637 $ - Geographic Information System 34,921 - Small Business Technology Assessment Monitoring and Planning 9,752 - Youth Internship Program - 28,551 BEAM I & II 317,278 259,577 Northern Ontario Heritage Fund Corporation Cell expansion - 451,508 Geographic Information Systems 49,103 -

Productivity and Innovation 9,821 -

Total Revenues 482,512 739,636

Project Expenses (Schedule 2) 482,674 739,200

EXCESS (DEFICIENCY) OF REVENUE OVER EXPENSES $ (162) $ 436

Project Expenses (Schedule 2) Year Ended December 31, 2014

2014 2013

Matachewan Broadband Infrastructure $ 61,637 $ - Geographic Information System - FedNor 34,921 - Small Business Technology Assessment Monitoring and Planning 9,752 - Wages and employee benefits - 28,028 BEAM I & II 317,278 259,664 BEAM III 162 - Cell expansion - 451,508 Geographic Information System - NOHFC 49,103 - Productivity and Innovation 9,821 -

$ 482,674 739,200

8 North Eastern Ontario Communications Network Inc. (NEOnet Inc.) 2014 Annual Report.