24 August, 2009 Judy Robertson Cultural Grants Metro Vancouver 4330 Kingsway Burnaby, BC, V5H 4G8

PRESENTATION Dear Judy Robertson, HOUSE GALLERY Enclosed please find an application on behalf of Presentation House Gallery (operated by the B.C. Photography Media Arts Society) in request of a 2009 Metro Vancouver Cultural Grant of $10,000.

I want to take the opportunity to thank you and Metro staff for allowing Presentation House Gallery to apply to the Cultural Grant program last year when we were still in process of developing our Strategic and Business Plan. The completion of this plan had been unnecessarily delayed by our consultants ongoing prior commitments. Finally in tate 2008, we instituted a search for a new consultant.

In September 2008 we hired Rick Knowlan, who led the gallery in Producing our Strategic Plan in early 2009. After amendments the Plan was accepted and passed by the Societys Board of Directors at our May 2009 Board Meeting. I apologize for not submitting the Plan to you then as I promised, and hope you will accept it now in accompaniment to our grant application. It is attached in this package. I have included a report on the Plans execution written by Mr. Knowlan that provides additional information on our processes.

On behalf of our Board of Directors, staff and volunteers, I would like to express our sincere thanks for your consideration of our application and the continuing support of Metro Vancouver. If you have any questions regarding our application please do not hesitate to contact me at your earliest convenience.

Sincerely,

Reid Shier Director / Curator

PHG 333 CHESTERFIELD AVENUE tel 604 986 1351 NORTH VANCOUVER BC wwvv.presentationhousegalLcorn CANADA V7M 3G9 info@presentationhousegalLcom SUSTAINABLE REGION INITIATIVE Ir-i.ivING IDEAS INTO ACTION

Metro Vancouver Cultural Grants 2009 Application for region-serving Arts and Cultural Organizations

A.. licant information

Name of organization (legray regienered name): Presentation House Gallery Ackhreme: 333 Chesterfield Avenue, North Vancouver, BC V7M 3G9

Mailing eddreest if different

Telephone: 604 9861351

Fax: 604 986 5380

Email: rShier@preSentatiOnhOUSegall. vvw.presentationhousegall.com

Contact person, and title, regarding information contained in appilcation: Reid Shier,Director

BC Society Act Number: S-34850

Date Registered: 1996/02/12

Federal Registered Mashy: 89659 3498 RR001

Fuwal yew enid: 12/31/2009

Grant Request for 2009 fiscal $ 10 000

Professional Status and Membership

Staff on payroll for Mslic personnel (tirectors, Adrrinistrative, noluclion, previous fiscal year curators, performers, eta.) technical personnel

Full lime 1 4 Seasonal full time 2 1 tme

1 1 1

Mistral" metro vatic uver, 1.1.h.C.J. Number of society members Voting members (excluding Board) 475

Number of Board members Number of non-Board volunteers 12 Board Members 115 Non-Board Members Has your organization prepared a business plan? Yes No q

If yes, in what year was that plan created and last revised?; 2009

Please indicate the levels of financial support your organization receives from government:

funding by fiscal year type of 2007 — 2008 2008 — 2009 Comments financial support Home grants 198 609 275 110 Municipality directly paid staff salaries or benefits other 216 000 195 000 From Arts Partners For Creative Developemnt Provincial grants 78000 152 500 gaming revenues (lottery, casino, 40 000 40 000

Federal Canada Council 135 000 135 000 Other 29 776 10 000

Region-wide Leadership and Services Please limit your response to a maximum of 250 words (half a page) per question

1. Describe how your organization provides regional leadership related to its mandate or mission, including what makes your organization unique in the region.

Presentation House Gallery is the only public art gallery in Canada devoted to the exhibition and dissemination of photographic and camera-based visual art, and has built an international reputation as one of the most important galleries in the world devoted to the medium. North Vancouver and Metro Vancouver are the chief beneficiaries of our unique program whose mandate is (realized through professionally researched, in-house and touring exhibitions, coupled with an ambitious publications program. Presentation House Gallery emphasizes the works of Metro Vancouver and BC artists who work with photographic or camera-based mediums. We also bring artists and exhibitions to the Lower Mainland that are of the highest international standard and relevance. We showcase both historical and contemporary artwork, and the broad reach of our exhibition program is structured for a wide variety of constituents. Exhibitions are interpreted within an educational context that includes on-site and off-site learning opportunities free of charge to groups, universities, schools and young people. We organize and offer free public-programs including lectures, panel discussions, film screenings, animated tours, and public events to enhance and expand on each exhibition. Our publications, which are richly designed with informative texts and high-quality reproductions, disseminate information on our research and exhibitions into the community and to people who might not otherwise be able to visit the gallery, and have a lasting legacy through placement in regional libraries. We organize exhibitions that travel to venues across BC, Canada and abroad. All of our programs involve collaborations with other organizations, typically other public art galleries in Vancouver and the Lower Mainland, as well as with galleries across Canada and internationally. 2. Briefly describe how your organization provides region-wide services in the context of the following objectives a. cultural tourism b. regional touring c. strengthened information and awareness services throughout the region

a. Presentation House Gallery draws visitors from the Lower Mainland, British Columbia, Canada, Pacific Northwest and from abroad. Visitors learn about our exhibition and public outreach program in a variety of ways. We promote through direct mail by sending invitations and an informational newsletter to a broad membership and other professionals and interested parties; we advertise in newspapers, as well as in local, regional and international magazines; we distribute posters throughout the Vancouver area; we maintain an informative website and send press releases and bulletins through mail, phone and email to cultural professionals and press contacts in Vancouver, BC, Canada, the United States and intemationally. Reviews of our exhibitions appear regularly in the press. In 2007 and 2008 our exhibitions and programming have been profiled across Metro Vancouver including The Vancouver Sun, The Globe and Mail, The National Post, The North Shore News, The Northshore Outlook, 24 Hours Newspaper, The Georgia Straight, Vancouver Magazine, Vancouver Lifestyles Magazine, Preview for the Arts, C magazine, The Vancouver Observer and on CityTV, Shaw Cable, Global TV, CBC Radio 2 and on CBC Radio Canada.

b. We showcase touring exhibitions from galleries around Metro Vancouver and have sent exhibitions to other Metro Vancouver galleries. We collaborate with other galleries and cultural organizations in the region. We are currently touring the exhibition phot(o)bjects to Seattles Lawrimore Project Gallery. We continued to collaborate with the Vancouver independent trade publisher Arsenal Pulp Press, last year on To the Dogs and in 2009 on a forthcoming publication on Vancouver artist Attila Richard Lukacs. produced in conjunction with the Art Gallery of Alberta, Edmonton. Weve just co-published a special issue of The Capilano Review titled Moodyville, which addresses the cultural and social histories of the North Shore. We are planning a number of collaborative programs in 2009 and 2010, including on an exhibition co-produced with The Banff Centre for the Arts titled Laid Over to Cover, Weaving and Photography in the Salishan Landscape, as well as a variety of ambitious programs in conjunction with VANOC and the Cultural Olympiad: This latter program includes a year-long public exhibition of posters by artist Jeremy Shaw throughout public spaces across Metro Vancouver. Each of these programs promotes and expands our mandate, helps us develop a wider community of audiences while effectively sharing resources with a broad array of community partners.

c. Through touring exhibitions, collaborations and the promotion of our in-house exhibitions we strive to heighten the knowledge and appreciation of photography not only as a key medium of contemporary artistic practice, but as a repository of vital historical value to the region. We aim to promote a greater understanding of local artists, some of whom are among the most prestigious and respected working anywhere in the world today from Metro Vancouver—artists like Jeff Wall, Rodney Graham and Stan Douglas among others—who concentrate on working with the camera. Through public programs we consciously extend our knowledge to other disciplines and interest groups, and endeavor to increase awareness of the visual arts through diverse perspectives. Upcoming in 2010 is an ambitious offsite program on Granville Island developed in partnership with VANOC as part of the Cultural Olympiad: Additionally we are in discussions to develop of a permanent satellite gallery in collaboration with UBCs Morris and Helen Belkin Gallery in downtown Vancouver. In which other Metro Vancouver municipalities do these activities take place if offered outside your home municipality?

We work in all Metro Vancouver municipalities. We have toured exhibitions to Coquitlam, Surrey and Burnaby. We collaborate regularly with other organizations locally, among them Vancouvers Charles H Scott Gallery, The Morris and Helen Belkin Gallery at UBC, the Burnaby Art Gallery and are in discussion on future programming opportunities with the Belkin Gallery and Vancouvers Centre A. Our exhibitions occasionally feature off-site projects, most recently the Territory exhibition, which featured site-specific works, film screenings and walking tours in Vancouver, North Vancouver and the District of North Vancouver. Off site programming takes main focus in our ongoing project with Vancouver artist Jeremy Shaw, a yearlong poster project throughout public areas of Metro Vancouver as part of Vancouvers Cultural Olympiad. We are also working on an offsite program, mentioned above, on Granville Island during the Olympics. Our publications are sold in galleries and bookstores across Metro Vancouver, and our exhibitions at Presentation House Gallery draw visitors from around the region. We invite critics, academics and experts from the region to give talks and lectures as part of our public programs as well as bring international artists, critics, and scholars to the region to lecture and conduct seminars at various Metro Vancouver postsecondary institutions in conjunction with our exhibitions. 5. What are your organizations objectives for audience development in the region? How does your existing or proposed program advance those objectives?

In February of 2009, Presentation House Gallery completed work on a yearlong Strategic Planning process that culminated a major Strategic Plan for 2009 to 2011. A number of the Core Strategies of the Plan outline the importance of audience development, significantly the importance of making "...visual culture of the past and present resonant in the Lower Mainland, BC, nationally and internationally," as well as the need to "Entice a broader and deeper group of people who have an affinity and curiosity for culture and images to access our programs." Each of these Core Strategies has one or more "Strategic Initiatives, which give direction to how the goals will be achieved. In addition they have been assigned specific target dates and measurement criteria by which we will implement and track their success. [Please see attached Strategic Plan]

We continue to produce a more ambitious, better designed, and more widely distributed members newsletter with greatly enhanced incentives to join the society, and are succeeding in our plans to nurture a more active and vital base of support for the gallery. We continue to produce Lynn Valley, our highly regarded serial publication devoted to artists working with photography. Now in production on our fifth issue, Lynn Valley is produced at the highest standards, and mailed directly to Presentation House Gallery members. The publication features the work of one artist per issue, selected for their significant achievement with the photographic medium. Support from the GVRD (now Metro Vancouver) in 2006 was critical in the inception and launch of this series.

With the assistance of the newly branded North Vancouver Office of Cultural Affairs, Presentation House Gallery launched a unique youth outreach program in 2008, a photo competition project for North Shore youth between the ages of 13 and 18 that provides cash prizes for original photographs. Called Chester Fields, the program has offered two competitions, most recently in the spring of 2009, and has grown exponentially, with over 130 entries last time. Chester Fields offers us the chance to mentor youth in the development of their own artistic skills through our particular expertise, as well as helping build relationships with future communities of visitors, schools and (hopefully) artists. Accessible online, this innovative project is designed to engage youth directly through their preferred communication tools.

6. How do you plan to use the Metro Vancouver Cultural Grant in the current fiscal year?

A Metro Vancouver cultural grant will be continue to be used to help design, develop and produce our membership information and outreach materials, including the publication series Lynn Valley, and on our Gallery newsletter. With support from Metro Vancouver we can continue to provide a variety of incentive programs and informational services for our membership, both in print and on line, including an updated gallery website that will soon feature on-line book ordering capabilities, and a more interactive resource for the gallerys visitors and members. These initiatives feature as a prominent component of our membership service campaign, one that is broadening our base of support in Metro Vancouver and helping to promote the gallery to new audiences locally, nationally and internationally. Conditions and Signature

1. Grant recipients must acknowledge the support of Metro Vancouver on all promotional materials related to the funded program.

2. Grant funds must be spent in the organizations fiscal year for which the application is made.

3. Organizations making significant changes to the information provided in this application must discuss such changes with Metro Vancouver staff prior to implementation.

4. If the program(s) proposed in the organizations application is/are not commenced or completed, and there remains regional funds on hand; or if the program is completed without requiring the full use of regional funds, the Board directs that the outstanding funds be returned to Metro Vancouver through the Finance Department.

5. Information provided in the operating grant application may be subject to disclosure under the BC Freedom of Information and Protection of Privacy Act.

Signature of senior staff person authorized to prepare form: Reid Shier, Director Name Title

Signature of Chair/President of the Board of Directors:

David MacWilliam , Chair Name Title

By signing this form, we do solemnly declare that, to the best of our knowledge, the information given in our application is complete and true in every respect.

DEADLINEFORSUBMISSION Mail or deliver two completed copies of the application form to the following location by Friday, July 24, 2009, 4:00 pm Metro Vancouver, Cultural Grants, Corporate Relations Department, 4330 Kingsway, Burnaby, BC V5H 4G8

004650889 Presentation House Gallery Board of Directors

• David MacWilliam (Chair) Artist, Acting Dean, ECIAD

• Paul Vassallo (Vice Chair) Senior Manager, Business Banking

• Demetrios (Tyke) Babalos (Past Chair) Developer/Commercial Property Owner

• Jack Adelaar Lawyer

• Helen Besharat Architect

• Peter Besharat Architect

• Peter Cruikshank Developer

• Candice Hopkins Director/Curator

• Tina Lynch, (Treasurer) Chartered Accountant

• Stuart Mc Laughlin CEO, Grousse Mountain

• John OBrian Professor of Art History, UBC

• Cheryl Stevens Associate

• Michael Turner Writer Consultants Strategic Planning Project Report

Presentation House Gallery (PHG) The objective for this project was:

To reach agreement on a sound strategic plan that reflects the best knowledge of PHG Board and Staff, feedback from important funders and stakeholders, and deep understanding and commitment from the people who will responsible for carrying it out. Methodology A 10-step process was used in this project. The consultant assisted with all the Steps by leading Steps 1 through 9; and by providing guidance for Step 10. PHG completed Step 10 based on guidance provided by the consultant, and will implement the final decisions without the Consultant's assistance.

1.Knowlan Consulting Group Inc. (the Consultant) worked with PHG leaders to develop a planning process to maximize participation in the process and to incorporate feedback from a broad range of key external stakeholders. 2. The Consultant solicited written input from key Board and external stakeholders, and interviewed Staff and other external stakeholders. 3. The Consultant compiled the findings of this infoi mation gathering to identify critical strategic issues and questions to be resolved by the Strategic Plan. 4. The Consultant facilitated a meeting of the High Level Strategic Planning Committee to amend the findings and answer the critical strategic questions. 5. The Consultant facilitated a meeting of the board to amend the work of the Planning Committee and to direct the development of the Strategic Plan details to execute the high level plan. 6. The Consultant facilitated two days of meetings with the Detailed Strategic Planning Committee to develop detailed strategic initiatives to execute the high level strategic plan. 7. The Consultant facilitated a meeting with the Board to present and adjust, as needed, the detailed Strategic Plan. 8. The Consultant provided written instructions to guide members of the Staff and Executive Committee in detailing a budget, defining responsibilities and setting time- lines for implementation of the strategic plan. 9. The Consultant worked with the Executive Director, the Treasurer, and the HR Committee Chair to document and refine the organization's key business processes, high level job descriptions, and an organizational structure to support the implementation of the strategic plan. 10.Assigned members of the Executive developed a budget, adjusted the time-line as appropriate, and assigned responsibilities for implementing the strategic plan. Planning Session Results PHG has reached agreement on a sound, comprehensive strategic plan and organizational details which they feel address their most important strategic issues, and which they feel is the appropriate approach for their organization at this stage in its evolution.

Key Questions for PHGs Strategic Plan The following critical questions emerged from analysis of the feedback received from Board, Staff and external stakeholders. The strategic plan includes clear decisions and commitments to action on all of these questions. 1. What is PHG's mission or mandate for the future, and where should the gallery be located? 2. What is PHG's commitment to develop or find a new or upgraded facility? 3. How do you want the gallery to be known, and by whom? 4. What audience targeting and growth are commensurate with these aspirations? 5. What membership growth should you seek to support these aspirations? 6. With which important supporters and allies will you form and maintain true strategic relationships? 7. What programming and publications are aligned with the achievement of your aspirations above? 8. Where and how will you get the funding to support a new facility and the staffing needed to achieve your aspirations? 9. What plans are needed to ensure ongoing financial and human resource sustainability? 10. What staffing and development plan is needed to execute the various elements of this strategic plan? 11. What board development plan is needed to support the execution of the various elements of this strategic plan? PRESENTATION HOUSE GALLERY

THE BRITISH COLUMBIA PHOTOGRAPHY AND MEDIA ARTS SOLI KTY FINANCIAL STATEMENTS DECEMBER 31, 2008

INDEX

AUDITOR'S REPORT

STATEMENT 1 - STATEMENT OF FINANCIAL POSI ZION AS AT DECEMBER 31, 2008

STATEMENT 2 - STATEMENT OF OPERATIONS AND NET ASSETS FOR THE YEAR ENDED DECEMBER 31, 2008

STATEMENT 3 - STATEMENT EMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2008

SCHEDULE 1 - NOTES TO TILE FINANCIAL STATEMENTS

TERRANCE R. SIGMUND INC. Certified General Accountant Tel. 604-980-9301 TERRANCE R. SIGMUND INC. Fox. 604-980-2624 Certified General Accountant E-mail. [email protected] Suite 410 - 221 West Esplanade, North Vancouver, B.C. V7M 3J3

AUDITOR'S REPORT

I have audited the statement of financial position of The British Columbia Photography and Media Arts Society as at December 31, 2008 and the statements of operations and net assets and of cash flows for the year then ended. These financial statements are the responsibility of the Society's management. My responsibility is to express an opinion on these financial statements based on my audit.

I conducted my audit in accordance with Canadian generally accepted auditing standards. Those standards require that I plan and perfoilli an audit to obtain reasonable assurance whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made as well as evaluating the overall financial statements presentation.

In common with many Societies, the Society derives revenue from cash, special fund raising activities and donations, the completeness of which is not susceptible to satisfactory audit verification. Accordingly, my verification of these revenues was limited to the amounts recorded in the records of the organization and I was not able to determine whether *any adjustments might be necessary to assets, donation revenues, and net assets.

In my opinion, except for the effect of the adjustments, if any, which I might have determined to be necessary had I been able to satisfy myself concerning the completeness of the contributions referred to in the preceding paragraph these financial statements present fairly, in all material respects, the financial position of The British Columbia Photography and Media Arts Society as at December 31, 2008 and the results of operations and it's cash flows for the year then ended, in accordance with Canadian generally accepted principles. As required by the societies Act of British Columbia, I report that, in my opinion, these principles have been applied on a basis consistent with that of the preceding year.

TERRANCE R. SIGIVIUND Certified General Accountant April 15, 2009 Statement 1

THE BRITISH COLUMBIA PHOTOGRAPHY AND MEDIA ARTS SOCIETY STATEMENT OF FINANCIAL POSIT ION AS AT DECEMBER 31, 2008 (see auditor's report)

ASSETS OPERATING RESTRICTED FUNDS FUNDS 2008 2007

CURRENT Cash $ 298,983 $ 85,577 $ 384,560 $ 223,035 Accounts receivable 37,997 0 37,997 7,570 Sales tax receivable 6,391 0 6,391 721 Inventory 24,944 0 24,944 16,994 Prepaid expenses 2,475 0 2,475 5,494 370,790 85,577 456,367 253,814

EQUIPMENT (Note 2f) 3,041 0 3,041 1,971

PHOTOGRAPHIC COLLECTION, at cost 4,345 0 4,345 4,345

$ 378,176 $ 85,577 $ 463,753 $ 260,130

LIABIT P,S AND SURPLUS

CURRENT Wages payable $ 1,479 $ 0 $ 1,479 $ 9,519 Accounts payable and accrued liabilities 54,678 0 54,678 13,654 Sales taxes payable 1,965 0 1,965 164 Deferred revenue (Note 6) 310,650 0 310,650 143,650 New building fund (Note 5) 0 85,577 85,577 82,777 Tour shipping deposits 0 0 0 3,242 Lynn Valley Project 9,340 0 9,340 7,100 378,112 85,577 463,689 260,106

NET ASSETS 64 0 64 24

$ 378,176 $ 85,577 $ 463,753 $ 260,130

Approved by the Board:

Director

Director

The accompanying notes are an integral part of these financial statements

TERRANCE R. SIGMUND INC. Statement 2

THE BRITISH COLUMBIA PHOTOGRAPHY AND MEDIA ARTS SOCIETY STATEMENT OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2008 (see auditor's report)

2008 2007

REVENUE Grants $ 484,509 $ 373,970 Casino 40,000 40,000 Employment program 13,376 7,031 Fundraising, net 100,085 108,347 Gallery revenue, admissions and tour fees 78,134 71,530 Donations 30,664 31,387 Interest 3,658 7,776 Membership 5,412 3,508 Miscellaneous 6,804 2,534 762,642 646,083

EXPENSES Accounting, audit and legal 3,500 3,500 Amortization 1,146 985 Artist travel, fees and lecture fees 56,997 34,913 Bank charges 6,237 4,596 Building expense 52,968 52,963 Catalogues and publications 123,065 46,995 Contract curator and guest curator fees 56,366 44,300 Curatorial travel and research 14,005 11,932 Employee benefits 38,403 38,868 Employment program 18,320 11,567 Gallery production 148,898 162,242 Insurance 2,561 2,473 Office 24,082 18,969 Promotion and newsletter 36,809 38,335 Professional development and staff expense 4,883 3,293 Telephone 4,605 4,265 Wages and salaries 169,757 165,957 762,602 646,153

EXCESS OF REVENUE (DEFICIENCY) OVER EXPENSES 40 (70)

NET ASSETS, BEGINNING OF YEAR 24 94

NET ASSETS, END OF YEAR $ 64 24

The accompanying notes are an integral part of these financial statements.

TERRANCE R. SIGMUND INC. Certified General Accountorit Statement 3

THE BRITISH COLUMBIA PHOTOGRAPHY AND MEDIA ARTS SOCIETY STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2008 (see auditor's report)

2008 2007

CASH BALANCE - BEGINNING OF YEAR $ 223,035 $ 204,381

OPERATIONS Cash receipts from grants and fundraising 689,566 485,826 Cash paid to suppliers (331,409) (311,060) Cash paid to employees (234,520) (210,216) Interest received 6,458 7,776 Cash receipts from donations and memberships 42,880 37,295 Cash receipts from B.C. Gaming 40,000 40,000 Cash receipts from gallery 78,134 71,530 Cash paid to artists (including travel) (56,997) (50,809) Cash paid to contract curators (including travel) (70,371) (56,232) NET CHANGE 163,741 14,110

NEW BUILDING FUND 0 7,500

INVESTMENTS Purchase computer equipment (2,216) (2,956)

CASH BALANCE - END OF YEAR $ 384,560 $ 223,035

The accompanying notes are an integral part of these financial statements.

TERRANCE R. SIGMUND INC. Certified General Accountant

Schedule 1

THE BRITISH COLUMBIA PHOTO GRAPHY AND MEDIA ARTS SOLI KTY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2008 (see auditor's report)

NOTE 1 - PURPOSE OF THE SOCIKTY a) To manage a gallery specializing in photography and media arts; b) to present a wide range of exhibitions and programs in photography and media arts; c) to encourage interest in and support for the work of photographic and media artists and the activities of the gallery; d) to contribute to the development of cultural projects and activities in the community; e) to maintain the facility in the public interest; and f) to undertake initiatives to obtain funds and earn revenue in support of the purpose set out herein.

NOTE 2 - SIGNIFICANT ACCOUNTING POLICI KS

a) INVENTORY Inventory is valued at cost.

b) GRANTS The Society records grants earned on a monthly basis. It does not accrue grants not yet received and grants that are received but not yet earned are deferred.

c) DONATED SERVICES AND MATERIALS The value of volunteer services provided to the Society are not recorded in these fmancial statements.

d) As the Society is not subject to income tnxes, no provision for income vas es has been ^n the financial statements.

e) FINANCIAL INSTRUMENTS RUA/LENTS The Society's financial instruments consist of cash, accounts receivable and accounts payable. It is management's opinion that the society is not exposed to significant interest, currency or credit risks arising from these fmancial instruments.

f) EQUIPMENT The Society follows the policy of not capitalizing the cost of equipment under $2,000 per item. The cost is expensed in the year of acquisition. 2008 2007 ACCUMULATED NET BOOK NET BOOK COST AMORTIZATION VALUE VALUE

Computer equipment $ 5,172 $ 2,131 $ 3,041 $ 1,971 Amortization is calculated on a three year straight line basis.

TERRANCE R. SIGMUND INC. Schedule 1 Page 2

THE BRITISH COLUMBIA PHOTOGRAPHY AND MEDIA ARTS SOCIETY DECEMBER 31, 2008 (see auditor's report)

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES, continued

g) USE OF ESTIMATES The preparation of financial statements in conformity with Canadian generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates and would impact future results of operations and cash flows.

NOTE 3 - OPERATIONS These financial statements have been prepared under the going concern assumption which presumes that assets will be realized and liabilities discharged as they fall due in the noiuial course of operations. The Society is dependent on grants from governments and governmental agencies to meet its obligations and to finance its continued operations.

NOTE 4 - NON CASH TRANSACTIONS Revenue - includes grants of $28,840 (2007 - $28,840) from the City of North Vancouver with the offsetting expense included as rent expense.

NOTE 5 - NEW BUILDING FUND The-New Building Fund was created by the Board of Directors, June 29, 2004 for purposes of pursuing a new building for the Society.

2008 2007

Balance, beginning of year $ 82,777 $ 75,277 Contributions 0 4,500 Interest 2,800 3,000 Balance, end of year $ 85,577 S 82,777

NOTE 6 - DEFERRED REVENUE 2008 2007

Publication in Production $ 47,500 $ 76,400 Exhibition 29,000 63,500 Project funding 225,000 0 Strategic Plan 9,150 3,750 $ 310,650 $ 143,650

TERRANCE B. SIGMUND INC. _ _ Audited Financial Statements The financial statements have been audited by the firm of Terence R. Sigmund, Inc., Certified General Accountant. The audit opinion dated April 15, 2009 is attached. The opinion is a standard audit opinion for charities, indicating that the statements fairly present the financial position and operations of the Gallery for the fiscal year ended December 31, 2008. We wish to extend out appreciation to the firm of Terence R. Sigmund for their ability to complete the audit within our timelines and at their modest fee.

Financial. Position of the Gallery at December 31, 2008 The Gallery ends its 2008 year in a solid financial position. Cash and investments of the Gallery totaled $384,650 versus $223,035 at the same time a year ago. The increase is due to the growth in grant revenue and to the continuing success of our fundraising efforts. The Gallerys funds tE384,650) are split between restricted funds of $85,577, set aside for the New Building Fund, and unrestricted operating funds of $298,983. The New Building Fund earned interest of $2,800, to bring its total to $85,577. There were no contributions to the fund in 2008.

The remainder of the Gallerys funds has been set aside in deferred revenue for specific future projects: publications and exhibitions and special projects being the major component. Note 6 to the financial statements provides further breakdown. The most significant single amount, $216,000 is grant revenue from Arts Partners in Creative Development for a film commission project, Hogans Alley by Stan Douglas: An amount of $9,340 shown is payable to the Lynn Valley Project. These funds are a result of the successful sale of Lynn Valley editions and publications and represent equal contributions of the Gallery and our partner in the project Bywater Brothers Editions. The $9,340 will be used to fund future artist editions. The Society closed the year with a modest surplus, or net assets of $64.

The Operations of the Gallery for the year ended December 31, 2008

Our annual Operational grant revenues from the Province of BC, the City and the District held constant and we continue to receive funding from the Gaming Commission of $40,000. We received a $10,000 increase form Canada Council to bring our annual operational funding to $125,000. We received project funding for our Strategic Plan from Heritage Canada and APOD and project funding from the BC Arts Council, $15,000, for marketing the ...to the Dogs publication. We received project funding grants from VANOC - Cultural Olympiad, BC Museums Ass., Art Partners in Creative Development, for activities that will be undertaken in 2009.

Continuing our trend of successful annual fundraising events, the Gallery held an auction at the Metro Restraunt in May. For a second year we netted more than $100,000. The Lynn Valley Project had another successful year grossing $33,956 in edition sales. We will continue with both initiatives in 2009.

Earned revenues for the year, consisting of membership dues, facility rentals, admission donations, special edition and gallery shop revenues, totaled $78,134 and exceeded our budgeted targets and the prior years amount of $71,530. Donation revenues remained at the same level, $30,664 in 2008 versus $31,387 in 2007.

Our total expenditures for the year were $762,602, an increase of $116,449 over the prior year. Notable increases were to Artist Fees for commissioned artworks undertaken for the Moodyville exhibition. Publication costs were also high, $123,065 in 2008 versus $46,995 in 2007. This was due to the number of publications, five in total, as well as the quality of those publications. Bank charges were also high due to the processing of credit card payments for our successful auction as well as Lynn Valley and our own special edition sales. Receivables and Payables were higher due to the publication activity that took place at the end of the year. The receivables include amounts outstanding for publications contibutions and purchases while the payables include printing cost of three of our catalogues. The net excess of revenues over expenditures was $40 for the year.

Tina Lynch, Treasurer Metro Vancouver Cultural Grants 2009 Application for Region-Serving Arts and Cultural Organizations

Applicant Information

Name of organization (legally registered name): Vancouver East Cultural Centre (The CuItch)

Address: 1895 Venables Street, Vancouver, BC V6A 2G9

Mailing address if different:

Telephone: 604.251.1766

Fax: 604.251.1730

Email: [email protected]

Website: www.thecultch.com

Contact person, and title, regarding information contained in the grant application: Heather Redfern, Executive Dir.

BC Society Act Number: 10083

Date Registered: February 8, 1973

Federal Registered Charity #: 11928 1574 RR0001

Fiscal year end: May 31

Grant Request for 2009 fiscal year $ 15,000

Professional Status and Membership

Staff on payroll for Artistic personnel (directors, Administrative, production, previous fiscal year curators, performers, etc.) technical personnel

Full time 1 10

Seasonal full time 0 0

Permanent part time 0 1

Seasonal part time 0 40

Contract 0 2

metro vancouver vvv..iw .meti• ova n «)i,.iver.orc.i Number of society members Voting members (excluding Board) 500

Number of Board members Number of non-Board volunteers 14 100

Has your organization prepared a business plan? Yes No q

If yes, in what year was that plan created and last revised? 2006

Please indicate the levels of financial support your organization receives from government:

funding by fiscal year type of 2007 - 2008 2008- 2009 Comments financial support Home grants 105,000 125,000 City of Vancouver, Metro Vancouver Municipality directly paid staff 3 0 salaries or benefits other 0 0 Provincial grants 90,000 105,000 BC Arts Council gaming revenues (lottery, casino, 72,666 72,000 Bingo, Direct Access

Federal Canada Council 0 0 Other 145,000 160,000 :Ianadian Heritage

Region-wide Leadership and Services Please limit your response to a maximum of 250 words (half a page) per question

1. Describe how your organization provides regional leadership related to its mandate or mission, including what makes your organization unique in the region.

The Vancouver East Cultural Centre (affectionately known as "The Cultch") is so much more than just a performance space - our organization is looked upon as one of the foremost performing arts presenters in Canada. Widely recognized as an innovator and leader, we have played an integral role in the development of Canadas artistic landscape. As a presenter and cultural centre, we support the growth of emerging artists and companies, and facilitate dialogue between groups throughout the Lower Mainland, especially within our local community of East Vancouver.

Incorporated as a society under the BC Societies Act on February 8, 1973, The Cultch is one of Canadas most diverse and innovative arts and cultural institutions. We contribute to the social and cultural enrichment of our region and community through the presentation of innovative world-class music, theatre, dance and visual arts by local, national and international artists and companies, bringing more than a million people through our doors to experience a total of more than 8000 performances since opening our doors more than 35 years ago. Reflecting this, the Cultch has been the recipient of numerous awards, including:

• An allocation of $9 Million from the BC Government in their 2008 Budget in support of our capital renovation and expansion project •The Council for Business and the Arts in Canadas Business Arts Award recipient for: • Best Arts/Entrepreneurial Partnership (Vancity), 2006 - Most Effective Corporate Program (Alcan), 2005 • Best Arts/Entrepreneurial Partnership, with distinction (Alcan), 2002 • Most Innovative Marketing Sponsorship, with distinction (Telus), 2000 • The 2002 $1 Million VanCity Award, supporting our plans for capital improvement and expansion

And now, with our newly renovated and expanded building finally open to the public in the 2009-2010 season, we look forward to serving more artists and audiences than ever before. 2. Briefly describe how your organization provides region-wide services in the context of the following objectives a. cultural tourism b. regional touring c. strengthened information and awareness services throughout the region

Each year, patrons from throughout the region come to The Cultch to see unique and specialized presentations by local, national and international artists and companies, many of which are not presented by any other organizations in Western Canada. Accordingly, we have developed a reputation as one of the regions most celebrated cultural presenters; a status that played a significant part in enabling us to raise more than $16 Million in local, provincial and national public, corporate, and private funds for our 2002-2009 capital campaign. Our newly renovated and expanded venue is now open, and is not only home to our 2009-2010 season of local, national and international music, theatre and dance, but is also being heavily booked by local area artists and arts presenters. We are pleased to continue to offer an extremely competitive rate for rentals of our venue, both in our historic larger auditorium and in our new Culture Lab, as well as staff support and other services designed to assist local area artists and performance groups.

Our Youth Program continues to see great success in reaching out to young people throughout the region, attracting youth from throughout the Lower Mainland to participate in our workshops, mentorships, performance intensives, and the annual Youth Week Festival. Since 1998 we have also offered the TELUS Youth Pass, which allows 12 to 19-year-olds to see any presentation at the Cultch (whether it is our presentation or a rental presented by another organization) throughout the year for only $2.

Finally, we continue to curate the Rio Tinto Alcan Performing Arts Award, which awards a $60,000 cash award to a BC theatre, dance or music group each year. Since its inception in 1998, this award has benefited a significant number of Lower Mainland arts groups, and remains the single largest artistic creation award for performing artists in Canada.

In which other Metro Vancouver municipalities do these activities take place if offered outside your home municipality?

The Cultch presents work primarily in our venue in East Vancouver, but while our building has been under construction in the last year, we have been delighted to present our season at venues throughout the city, including the Waterfront Theatre, Performance Works, the Vancouver Playhouse, Britannia High Schools athletic field, the Vancouver Art Gallery, the Michael J. Fox Theatre, the Firehall Arts Centre, the Scotiabank Dance Centre, the WISE Hall, as well as in our own Vancity Culture Lab. In the coming season we expect to present primarily in our Historic Theatre and the Vancity Culture Lab, but we will also be co-presenting one show at the Arts Clubs Granville Island Stage, as well as several installation theatre pieces throughout (and reflecting) East Vancouver. 3. What proportion of your annual budget is, or will be allocated to, your organizations region-wide services or programs?

With the expansion of our venue comes expansion in our activities and necessary growth in our budget as well. It is worth noting that 2009-2010 will be our largest presentation series ever, with 28 presentations (ranging from one evening to three weeks in length) and programs taking place on our stages, interspersed by more than 50 rental clients who will be utilizing our venue for performances, rehearsals, and meetings throughout the year.

Our entire budget serves to program and present arts that appeal to and target audiences from throughout the Lower Mainland.

4. What was your total audience or patronage over the past year? What proportion is from outside your home municipality but within Metro Vancouver? Briefly explain how you track this information.

Approximately 50,000 people came through the doors of the CuItch last year to see our dance, music and theatre presentations, or the productions or presentations of our renters. Through a detailed market research surveying process, which took place in 2007 and 2008, we know that our audiences hail from communities throughout the region, with larger concentrations coming from West Vancouver, North Vancouver, Burnaby, Downtown, and East Vancouver.

We track our audience numbers meticulously through nightly house reports. 5. What are your organizations objectives for audience development in the region? How does your existing or proposed program advance those objectives?

As this will be the first season for us in our newly renovated and expanded venue, we are focusing primarily on welcoming our audiences back to our space, and expanding knowledge of our existence in our greater community as well. Our slogan this year is "Welcome Home" and our marketing collateral for the season reflects our commitment to our regional community, our promise to present performances of excellence, and our unique history and intimate atmosphere.

Our primary objectives for audience development in the coming season are to generate new audiences in the region and deepen our existing relationships with current single ticket buyers and subscribers. To achieve these goals, our focus is on publicity to generate good reviews and word of mouth for shows, print media buys in several papers, a presence on television and radio, and a particular effort on implementing and utilizing social media to inform audiences about our shows. We are also committed to the creation of clean and professional marketing collateral, reflecting the world-class excellence of the work that appears on our stages.

6. How do you plan to use the Metro Vancouver Cultural Grant in the current fiscal year?

The Metro Vancouver Cultural Grant will specifically serve to underwrite a portion of the critical costs of marketing our 2009-2010 season, including print and online media and targeting audiences throughout the Lower Mainland over the course of the year. Conditions and Signature

1. Grant recipients must acknowledge the support of Metro Vancouver on all promotional materials related to the funded program.

2. Grant funds must be spent in the organizations fiscal year for which the application is made.

3. Organizations making significant changes to the information provided in this application must discuss such changes with Metro Vancouver staff prior to implementation.

4. If the program(s) proposed in the organizations application is/are not commenced or completed, and there remains regional funds on hand; or if the program is completed without requiring the full use of regional funds, the Board directs that the outstanding funds be returned to Metro Vancouver through the Finance Department.

5. Information provided in the operating grant application may be subject to disclosure under the BC Freedom of Information and Protection of Privacy Act.

Signat r se for staff person authorized to prepare form: _-.0140$0 1-1614-Ake- 2e-mr-e12, escE-cuxNe- a)iet-crerre—___ Name Title

nature of Chair/Presideqt of the Board of Directors:

Name Title

By st g this form, we do solemnly declare that, to the best of our knowledge, the information given in our application is complete and true in ever)/ respect.

DEADLINEFORSUBMISSION Mail or deliver two completed copies of the application form to the following location by Friday, July 24, 2009, 4:00 pm Metro Vancouver, Cultural Grants, Corporate Relations Department, 4330 Kingsway, Burnaby, BC V5H 4G8

004650889 ECC oard of Directors

• Annalies Camfferman Registered Nurse o Barbara-Jo McIntosh Owner, Barbara Jos Books to Cooks

Christine Quintana Arts Club Theatre Company o Daniel Steinberg Provincial Court Judge o Drew Queen Rolfe, Benson Chartered Accountants o Frank Costanzo (Finance Chair) Bank of Montreal – Commercial Drive Branch Manager o Ian Forsyth Director, North Vancouver Office of Cultural Affairs o John Mostowich (Chair) Lawyer, Johh D. Mostowich Law Corporation o Kathleen Bourchier (Past Chair) Optimum Public Relations Vice President o Kevin Bennett Acting/Directing student Studio 58 o Kim Short (Incoming Chair) Ipsos ASI Vice President o Rachel Welch OConnoor The Hay Group - commencing March 2 2009 o Shannon Belkin Artist o Tony Wong Lawyer, British Columbia Securities Commission VANCOUVER EAST CULTURAL CENTRE 2006/2007 – 2010/2011 BUSINESS PLAN A Plan to Direct a Cultural Evolution

TABLE OF CONTENTS Page Table of Contents

1.0 Introduction 1 1.1 The Situation in Brief 1 1.2 The Organization of the Plan 2

2.0 About the VECC and Its Place in the Community 3 2.1 The VECC's Position Within the Arts Community 3 2.2 The VECC On Stage 5 2.3 The VECC in the Community 7 2.4 Recognition Given to the VECC 9 2.5 VECC Location and Facilities 9 2.6 VECC Administration and Financial Management 10

3.0 Vision and Mission 11

4.0 The Restoration, Renovation, Revitalization Project 12 4.1 The Project – What it Entails 12 4.2 The Project Finances 14

5.0 The Foundations of the Business Plan 16 5.1 The Significance of the Four-Year Time Frame 16 5.2 The Issues to be Addressed 16 5.3 The Critical Initiatives 18

6.0 Initiatives and Objectives 19 6.1 Initiative A – Maintain Programming Excellence 19 6.2 Initiative B – Effectively Manage the Construction Project and the 21 Impact of Construction 6.3 Initiative C – Ensure Human Resources in Place to Effectively Operate the Expanded Facilities 24 6.4 Initiative D – Expand and Diversify Fundraising 25 6.5 Initiative E – Upgrade Governance and Board Functioning 29 6.6 Initiative F – Succession Planning 30 6.7 Initiative G – Improve Information about the Market and the Audience and Focus VECC Marketing Upon This 31 6.8 Initiative H – Build Community and Audience Relations 33

7.0 Financial Projections 36 VANCOUVER EAST CULTURAL CENTRE (THE CULTCH) 2009-2010 BUDGET

EXPENSES Administrative Salaries 225,013 Administrative Expenses 95,500 Facility Salaries 280,000 Facility Expenses 159,300 Artist Fees 481,390 Artist Travel Accommodation 145,310 Production Expenses 33,500 Youth Program Fees 40,000 Youth Program Expenses 27,000 Marketing Salaries 84,000 Marketing Expenses 113,000 In-kind Marketing 103,800 Fundraising Expenses 11,500 TOTAL EXPENSES 1,799,313

INCOME Earned: Subscriptions 112,672 Single Tickets 160,191 Youth Program 5,000 Facility Revenues/Rentals 133,000 Ticketing 96,000 Concession, Bar and Merchandise 70,000 Interest 200,000

Contributed: Individual Gifts 30,000 Corporate Gifts 90,000 Foundation Gifts 35,500 Sponsorship 200,000 Special Events 1,500 In-Kind Gifts 103,800 Canadian Heritage (APC) 160,000 Province of BC 105,000 City of Vancouver 110,000 Metro Vancouver 10,000 Gaming: Bingo (net) 32,000 Gaming: Direct Access 40,000 Travel Subsidies (Alberta and Newfoundland) 99,350 Foreign Governments 5,300 TOTAL INCOME 1,799,313 Vancouver East Cultural Centre Programming and Ticketing Customer Survey 2008

Conducted by: Charleson Communications 1080 West Keith Rd., North Vancouver, BC V7P 1Y5

Tel: 604-990-1516 Email: [email protected] Web: www.charleson.ca

December 16, 2008 CONTENTS:

Situation analysis and executive summary 4 Recommendations 10

Overview 14 Sampling and methodology 15 Results 17 Programming:

Question #1 17 Question #2 17 Question #3 18 Question #4 19 Question #5 21 Question #6 25 Question #7 25 Question #8 26

Ticketing: Question#1 27 Question #2 28 Question #3 28 Question #4 28 Question #5 29 Question #6 29 Question #7 30 Question #8 32 Question #9 33 Question 10 33 Question #11 34

Demographics: Question #1 35 Question #2 35 Question #3 35

2 Question #4 35 Question #5 35

Cross tabulation- 37

Graphs: When last attended The Cultch 17 Program attributes ranked very important 18 Percent of people who would like to see more of each type of programming 25 What makes The Cultch unique? 27

APPENDIX A (Comments on: Dance, Theatre, Music performers, Musicals) 40 APPENDIX B (Installation theatre comments) 51 APPENDIX C (Comments on what makes The Cultch unique) 52 APPENDIX D (Suggested improvements to handling ticketing) 59 APPENDIX E (Additional comments on ticketing, pricing, subscriptions) 63 APPENDIX F (Feedback on renovation) 73 APPENDIX G (Sample survey) 79

3 SITUATION ANALYSIS AND EXECUTIVE SUMMARY:

Demographics: The demographics of the sample were similar to the last study, with the average age of the overall Cultch customer being 44.36 years and skewed female. As a group Cultch customers are very highly educated. In the previous study we reported that 90% had completed college, university or graduated studies. This study had similar results, with 94% having completed some or all of college or university and graduate studies. Cultch customers are higher than average income earners, with an average household income of $79,687.50. According to BC Statistics, the average household income in Greater Vancouver in 2007 was $63,300. Although Cultch customers are drawn throughout the Lower Mainland regions, the sample was most highly represented in the Vancouver areas of downtown/west end, Vancouver Westside and Vancouver eastside west of Boundary. There was also significant representation in Surrey, North Vancouver, Burnaby and Richmond.

Programming: 66% of those surveyed have attended The Cultch within the last year. 31% had attended 1-3 years ago, and 3% have attended more than 3 years ago. This was an excellent sample, since the majority of respondents had a recent experience to draw upon.

Although 28% said they would like to see more programming than there is now, 69% said they would like to see about the same as there is now in the future. This indicates that the current level or slight growth would likely be well received.

The ranking of the importance of program attributes revealed some powerful words to possibly use in future communications, as well as a clear direction on what attributes are of value. The top five attributes were: Entertaining, funny, progressive, challenging and unpredictable. These attributes were ranked as 'very important' by: entertaining (49%), funny (44%), progressive (21%), challenging (17%), unpredictable (16%).

Several programming additions presented would be well received. Those where more than half of the respondents said they would be 'more motivated' to come were: More local artists (79%), more Canadian artists (76%), more international artists 64%), and more music events (61%).

4 VANCOUVER EAST CULTURAL CENTRE

Financial Statements

Year Ended May 31, 2008

BUCKLEY DODDS Chartered Accountants Page

AUDITORS REPORT 1

FINANCIAL STATEMENTS

Balance Sheet 2

Statement of Financial Position 3

Statement of Operations 4

Statement of Cash Flows 5

Notes to the Financial Statements 6 - 11

BUCKLEY DODDS Chartered Accountants BUCTCLEY DODDS Chartered Accountants Suite 1140 - 7185 West Georgia Street Vancouver, B.C. Canada WE 4E6 Telephone: (604) 538.7227 Fax: (604) 681-7716

AUDITORS' REPORT

To the Members of Vancouver East Cultural Centre

We have audited the statement of financial position of Vancouver East Cultural Centre (the "Centre") as at May 31, 2008 and the statements of operations and cash flows for the year then ended. These financial statements are the responsibility of the Centre's management. Our responsibility is to express an opinion on these financial statements based on our audit.

Except as explained in the following paragraph, we conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we plan and perform an audit to obtain reasonable assurance whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.

In common with many non-profit organizations, the Centre derives part of its revenue from the general public in the form of donations, the completeness of which is not susceptible of satisfactory audit verification. Accordingly, our verification of these revenues was limited to the amounts recorded in the records of the Centre, and we were not able to determine whether any adjustments might be necessary to donations, excess of revenues over expenditures for the year, assets and fund balances.

In our opinion, except for the effect of any adjustments that we might have determined to be necessary had we been able to satisfy ourselves concerning the completeness of donations referred to in the preceding paragraph, these financial statements present fairly, in all material respects, the financial position of the Centre as at May 31, 2008 and the results of its operations and its cash flows for the year then ended in accordance with Canadian generally accepted accounting principles.

The audited financial statements at May 31, 2007 and for the year then ended were examined by other auditors who expressed a qualified opinion on those statements in their report dated November 8, 2007.

Vancouver, British Columbia "Buckley Dodds" November 24, 2008 Chartered Accountants 1

A Partnership of incorporated Professionals VANCOUVER EAST CULTURAL CENTRE Statement of Financial Position May 31, 2008

2008 2007

ASSETS

CUR RENT Cash 369,889 $ 115,211 Term deposits 8,925,000 736,774 Accounts receivable 337,163 225,053 Inventory 3,190 Prepaid expenses 96,274 21,801

$ 9,728,326 $ 1,102,029

LONG-TERM ACCOUNTS RECEIVABLE 30,000 42,500

CASH SURRENDER VALUE OF LIFE INSURANCE 880 880

VANCOUVER FOUNDATION ENDOWMENT FUND (Note 5) 36,000 36,000

PROPERTY, PLANT AND EQUIPMENT (Note 4) 3,405,639 1,119,115

$ 13,200,845 $ 2,300,524

LIABILITIES AND FUND BALANCES

CURRENT Accounts payable and accrued liabilities 556,011 $ 102,274 Deferred revenue (Note 6) 341,192 428,785

897,203 531,059

FUND BALANCES (Note 3) 12,303,642 1,769,465

13,200,845 $ 2,300,524

ON BE OF THE BOARD

Director

Director

See accompanying notes to the audited financial statements BUCKLEY DO2DS Chartered Accountants VANCOUVER EAST CULTURAL CENTRE Statement of Operations Year Ended May 31, 2008

2008 2007 REVENUE

EARNED Production and service charge revenue $ 250,668 $ 305,514 Theatre rent 93,493 64,006 Concessions 60,706 53,698 Interest 89,277 22,912 House rent 15,540 16,978 Other 5,940 4,223 Gallery 3,129 1,938

518,754 469,269

GRANTS (Schedule 1) 11,012,023 500,555

FUNDRAISING AND SPECIAL EVENTS Sponsorships - corporate 84,323 78,500 Donations in-kind 58,886 68,800 Bingo 32,000 32,333 Gaming direct access 40,000 32,000 Corporate donations - operating 92,500 16,000 Corporate donations - building 17,500 10,250 Fundraising (Special events) 10,369 11,773 Individual donations - operating 17,514 Individual donations - building 32,196 9,168 Sponsorships - foundations 18,000 5;000

403,288 263,824

11,934,065 1,233,648

EXPENDITU RES Operating (Schedule 2) 1,203,209 1,061,623 Building (Schedule 2) 160,023 154,050 Amortization 36,656 34,290

1,399,888 1,249,963

EXCESS (DEFICIENCY) OF REVENUE OVER EXPENDITURES 10,534,177 (16,315)

FUND BALANCE, beginning as previously stated 1,769,465 1,787,780

CORRECTION OF PRIOR YEAR BALANCE (2,000)

FUND BALANCE, beginning as restated 1,769,465 1,785,780

FUND BALANCE, ending $ 12,303,642 $ 1,769,465

See accompanying notes to the audited financial statements BUCKLEY DO S Chartered Accountants VANCOUVER EAST CULTURAL CENTRE Statement of Cash Flows Year Ended May 31, 2008

2008 2007

OPERATING ACTIVITIES Net Income (loss) for the year $ 10,534,177 $ (16,315) Items not affecting cash: Amortization 36,656 34,290 Prior year adjustment (2,000)

Changes in non-cash working capital Receivables (99,610) 485,127 Prepaids (74,473) 11,958 Inventory 3,190 1,532 Payables and accruals 453,737 (45,160) Deferred revenue (87,593) 152,678

Cash flow from operating activities $ 10,766,084 $ 622,110

INVESTING ACTIVITIES Purchase of property, plant and equipment (2,323,180) (474,375) Life insurance 65

Cash flow used by investing activities $ (2,323,180) $ (474,310)

FINANCING ACTIVITIES

Cash flow from financing activities - -

INCREASE IN CASH AND CASH EQUIVALENTS $ 8,442,904 $ 147,800

CASH AND CASH EQUIVALENTS - Beginning of year 851,985 704,185

CASH AND CASH EQUIVALENTS - End of year $ 9,294,889 $ 851,985

See accompanying notes to the audited financial statements BUCKLEY DOD145 Chartered Accountants VANCOUVER EAST CULTURAL CENTRE Notes to the Financial Statements Year Ended May 31, 2008

NATURE OF THE CENTRE

Vancouver East Cultural Centre (the "Centre") was incorporated under the Societies Act of British Columbia on February 8, 1973. The Centre is a not-for-profit organization dedicated to the development of the arts in the Vancouver community. It is a registered charity for income tax purposes and is not subject to income tax. The Centre takes a leadership role in the development of new and innovative productions of dance, theatre, film, and community- based projects. The Centre depends on the financial support of both the public and private sectors and attendance at performances to fund its activities. The Centre is also available to community groups as a rental facility, and it depends on this revenue as well.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Fund accounting

Vancouver East Cultural Centre uses the restricted fund method of accounting as recommended in the CICA Handbook, sections 4400 and 4410. The major funds are described in Note 3. Contributions and funds earned for restricted or specific purposes are recognized as revenue as received by the related fund.

Use of estimates

In accordance with Canadian generally accepted accounting principles, management is required to make estimates and assumptions that could affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported amounts of revenues and expenditures during the reporting period. Actual results could differ from those reported.

Financial instruments

The Centres financial instruments consist of cash, term deposits, accounts receivable, accounts payable and accrued liabilities. Unless otherwise noted, it is managements opinion that the Centre is not exposed to significant interest, currency or credit risks arising from these financial instruments. The fair values of these financial instruments approximate their carrying values.

Inventory

Inventory is recorded at the lower of cost and net realizable value.

Revenue recognition

The Centre follows the deferral method of accounting for contributions in the Operating Fund. Grants and contributions are recorded as revenue when received or receivable except when the donor has specified that they are intended for use in a future period, in which case they are deferred. Contributions are recognized as receivable if the amount to be received can be reasonably estimated and collection is reasonably assured.

BUCKLEY DO S Chartered Accountants VANCOUVER EAST CULTURAL CENTRE Notes to the Financial Statements Year Ended May 31, 2008

Investment income earned on the Endowment Fund and bank balances is recorded as earned and is recognized as revenue of the Operating Fund.

Deferred revenue

Deferred revenue represents funds received by the Centre, where the corresponding expenditure for such funds has yet to be incurred. As the expenditure is incurred, the corresponding deferred revenue will be reallocated to revenue.

Donations in-kind

Donations in-kind are recorded at their estimated fair market values.

Property, plant and equipment

Property, plant and equipment purchased by the Centre are recorded at cost and those donated to the Centre are recorded at their fair market values at the date of acquisition when fair market value can be reasonably determined. Property, plant and equipment are amortized on the diminishing balance basis at the following rates:

Lighting system 10% Furniture and equipment 20% Sound system 10% Computer equipment 45% Website development 10% Building 4%

Amortization on the building will commence once the construction phase is complete.

Leasehold improvements are recorded at cost, with amortization provided on a straight-line basis over 10 years.

The above rates reflect the anticipated life expectancy of the assets.

Impairment of long-lived assets

The Centre reviews the carrying amount of long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable or has been impaired. The determination of any impairment would be based on a comparison of estimated future cash anticipated to be generated during the remaining life of the asset to the net carrying value of the asset. If impairment is determined, the assets are written down to their fair values.

BUCKLEY DS Chartered Accountants VANCOUVER EAST CULTURAL CENTRE Notes to the Financial Statements Year Ended May 31, 2008

3. FUNDS 2008 2007 General Fund $ 1,366,918 $ 280,251 Building Fund 10,900,724 1,453,214 Vancouver Foundation Endowment Fund 36,000 36,000

$ 12,303,642 $ 1,769,465

General Fund — The general fund was established to record all day to day administration activities and production activities. This fund represents unrestricted resources.

Building Fund — The building fund was established to record the restricted VanCity Award to the Centre dedicated to the renovation of its current facilities. Current funds are used for the construction and maintenance of the buildings.

Vancouver Foundation Endowment Fund — The endowment fund was established to obtain matching from the Vancouver Foundation into a restricted fund to earn investment income for operations. See Note 5 to the Financial Statements.

4. PROPERTY, PLANT AND EQUIPMENT

Accumulated NBV NBV Cost Amortization 2008 2007 $ $ $

Lighting system $ 180,661 $ (147,919) 32,742 $ 40,928 Furniture and equipment 441,137 (396,195) 44,942 55,376 Leasehold improvements 424,970 (405,587) 19,383 24,230 Sound system 61,520 (41,019) 20,501 25,625 Computer equipment 8,190 (6,113) 2,077 3,777 Website development 13,643 (4,802) 8,841 11,051 Building renovations 3,277,153 3,277,153 954,614 Telephone System 3,514

$ 4,407,275 $ 1,001,636 $ 3,405,639 $1,119,115

BUCKLEY DO7DS Chartered Accountants VANCOUVER EAST CULTURAL CENTRE Notes to the Financial Statements Year Ended May 31, 2008

5. ENDOWMENT FUND

The Centre has an Endowment Fund with the Vancouver Foundation. The Centre earns interest income on the fair market value of the units held in the fund. The carrying value is the portion of the fund that is refundable to the Centre.

A summary of units owned in the fund is as follows:

2008 2007

Number of units owned in the endowment fund 5,842 5,842

Market value per unit at May 31 16.70 18.39

Contributions to the endowment fund are as follows:

Refundable portion of Endowment Fund contributed by the Centre 25,000 25,000 Non-refundable portion of Endowment Fund contributed by the Centre 10,000 10,000 Donation by a third party 11,000 11,000 Matching by Vancouver Foundation 25,000 25,000

71,000 71,000 Less: non-refundable portion 35,000 35,000

Endowment Fund 36,000 36,000

BUCKLEY DO iS Chartered Accountants VANCOUVER EAST CULTURAL CENTRE Notes to the Financial Statements Year Ended May 31, 2008

6. DEFERRED REVENUE

Deferred revenue consists of funds received pertaining to activities of future years.

2008 2007 $ $ Building renovations $ 140,000 $ 140,000 Grants and foundations 171,000 243,000 Rio Tinto Alcan Award 30,000 30,000 Deferred rent, box office deposits, and other 192 15,785

$ 341,192 $ 428,785

7. CONTINGENCY

The City of Vancouver owns the building and land on which the Centre is situated. Under an agreement dated June 21, 2007, the City of Vancouver has granted the premises occupied by the Centre at a rental rate of $1 (one dollar) per annum for a term of ten years plus two ten year renewal periods. If the City of Vancouver should withdraw the rental support, in the renewal periods the Centre would be required to pay rent at fair market value, which cannot be estimated at this time.

8. COMPARATIVE FIGURES

Some of the comparative figures have been reclassified to conform with the current years financial statement presentation.

BUCKLEY DO9DS Chartered Accountants VANCOUVER EAST CULTURAL CENTRE Schedule 1: Schedule of Grant Revenue Year Ended May 31, 2008

2008 2007

OPERATING FUND GRANTS Canadian Heritage $ 145,000 145,000 City of Vancouver 95,000 92,000 Province of BC 90,000 98,000 Vancouver Foundation 34,000 - British Council 19,500 8,000 Municipal 10,000 5,000 Other 750

393,500 $ 348,750

BUILDING FUND GRANTS Province of BC 9,000,000 $ City of Vancouver 1,350,000 151,805 Canadian Heritage 268,523

10,618,523 151,805

$ 11,012,023 $ 500,555

BUCKLEY DIODS Chartered Accountants VANCOUVER EAST CULTURAL CENTRE Schedule 2: Schedule of Expenses Year Ended May 31, 2008

2008 2007

OPERATING EXPENDITURES

Salaries, wages, benefits and artist fees $ 671,011 $ 548,349 Publicity, advertising and market research 158,686 126,162 In-kind donations 58,886 39,600 Concessions and Gallery 32,662 30,643 Commissions 26,876 - Office 26,663 21,367 Travel and accomodations 25,016 10,691 Insurance 8,865 8,192 Repairs and maintenance 24,053 17,538 Miscellaneous 20,710 16,740 Fundraising 19,856 3,880 Utilities 18,870 21,347 Youth outreach 16,706 72,629 Licenses, dues and subscriptions 15,209 16,909 Telephone 8,549 7,013 Professional fees 8,224 17,608 Production expenses 59,675 94,767 Programming fees 2,692 3,880 Bad debts 4,308

$ 1,203,209 $ 1,061,623

BUILDING EXPENDITURES

Fundraising 94,546 24,897 Renovations 23,306 25,730 Insurance 15,671 Storage and security 8,675 Salaries, wages and benefits 7,382 65,000 Office 5,441 397 Utilities 3,401 - Legal 1,601 7,960 Business plan 30,066

160,023 $ 154, 050

AMORTIZATION 36,656 $ 34,290

1,399,888 $ 1,249,963

BUCKLEY Dpi DS Chartered Accountants VANCOUVER KIM www.vancouveropera.ca

July 23, 2009

Judy Robertson, Communications Specialist Corporate Relations Metro Vancouver 4330 Kingsway Burnaby, BC V5H 4G8

Dear Ms. Robertson:

Let me begin by thanking Metro Vancouver for its continued support of our work and for their consideration of our 2009 Cultural Grant request. I hope that you and the review board enjoy reading about our success and challenges over the past year and about some of our plans for the coming season.

Vancouver Opera is dedicated to exposing residents of Metro Vancouver to the beauty and emotion of opera. We strive to create a forum to explore the artistic possibilities of an art form that synthesizes music, drama, dance, the human voice, language, literature, poetry and history into a single entity. Without VOs work, residents of the region would not have the opportunity to experience the grandeur of a fully-staged, fully- professional opera anywhere else in the region.

We hope that the granting board recognizes our commitment to servicing all of Metro Vancouver. We are passionate about the work we create and want to share it with all who are open to experiencing it, no matter where they call home.

Thank and I look forward to hearing from your office regarding our application.

Sincerely,

Jenny Breckon Development Manager, Government and Foundation Grants

ALEX R. BESHARAT, Chair, Board of Directors 1 JAMES W. WRIGHT, General Director I JONATHAN DARLINGTON, Music Director

835 Cambie Street, Vancouver, British Columbia, Canada, V6B 2P4 6041:682-2871 fax 604 682-3981 Metro Vancouver Cultural Grants 2009 Application for Region-Serving Arts and Cultural Organizations

A • • licant Information

Name of organization (legally registered name): Vancouver Opera Association

Address: 835 Cambie Street Vancouver, BC V6B 2P4

Mailing address if different:

Telephone: 604-682-2871

Fax: 604-682-3981

Email: [email protected]

Website: www.vancouveropera.ca

Contact person, and title, regarding information contained in the grant application: Jenny Breckon, Devel. Manager

BC Society Act Number: 5553

Date Registered: October 31, 1958

Federal Registered Charity #: 11928 2002 RR0001

Fiscal year end: June 30

Grant Request for 2009 fiscal year $ 25,000

Professional Status and Membership

Staff on payroll for Artistic personnel (directors, Administrative, production, previous fiscal year curators, performers, etc.) technical personnel

Full time 3 27

Seasonal full time 0 8

Permanent part time 0 1

Seasonal part time 113

Contract 246 Number of society members Voting members (excluding Board) 6774

Number of Board members Number of non-Board volunteers 26; 126

Has your organization prepared a business plan? Yes 1E3 No q

If yes, in what year was that plan created and last revised? 2005; 2009

Please indicate the levels of financial support your organization receives from government:

funding by fiscal year type of 2007- 2008 2008-2009 Comments financial support Home grants 378,200 398,124 Cultural and Theatre Rental Grants Municipality directly paid staff salaries or benefits other 18,500 12,500 Metro Vancouver

Provincial grants 398,000 465,600

gaming revenues Gross amount: 576,690 (lottery, casino, 244,859 234,179 Expenses: 342,511

Federal Canada Council 565,000 680,000

Other 2009 Commissioning grant (one 236000, 10,000 time)

Region-wide Leadership and Services Please limit your response to a maximum of 250 words (half a page) per question

1. Describe how your organization provides regional leadership related to its mandate or mission, including what makes your organization unique in the region.

Vancouver Opera (VO) exposes residents of Metro Vancouver to the beauty and emotion of opera. It provides a forum to explore the artistic possibilities of an art form that synthesizes music, drama, dance, the human voice, language, literature, poetry and history into a single entity. Without VOs work, residents of the region would not have the opportunity to experience the grandeur of a fully-staged, fully- professional opera anywhere else in the region; aside from VO the closest professional opera companies are found in Seattle and Victoria. VO is about more than just music, it is about providing the Metro Vancouver region with innovative, educational and relevant cultural experiences:

Creative innovation is the lifeblood of any performing arts company; finding new ways to connect with our audiences and express our collective human experience is always at the forefront of our efforts. We have identified main stage production values as an area that can continually be improved upon and that will be quite noticeable to our audience. We continue to make increased investments in theatrically compelling, leading edge, and contemporary productions more attuned to 21st century audiences sensibilities.

Over the past several years VO has set forth to augment the educational capacity and community reach of the company. Vancouver Opera has a number of highly successful educational programs underway, and has, over the past five years, seen significant growth and development.

VO strives to remain relevant and connect with people through its innovative and award-winning community programs. Major components are Opera Speaks, programs in the Downtown Eastside, and Community Forums. VO seeks to connect with culturally diverse communities and establish opera awareness in a manner that is approachable and will underline VOs commitment to cultural relevance. 2. Briefly describe how your organization provides region-wide services in the context of the following objectives a. cultural tourism b. regional touring c. strengthened information and awareness services throughout the region

a.Cultural tourism: While Vancouver Operas core audience is from Metro Vancouver, we continue to encourage cultural tourism to the region. In 2008/09 approximately 1,296 households from outside the Metro Vancouver region attended a VO main stage performance. Unfortunately, this represents a decrease of 50% from 2007/08, directly attributable to the worldwide economic crisis that hit just as our 2008/09 season began. However, we continue to work hard to encourage cultural tourism to the region through our ongoing commitment to artistic excellence. We recognize the industry trend that opera lovers will travel to see superior performances by leading performers and such we continue to work diligently to fill lead roles with first-class singers-actors, thus attracting opera-goers from outside the region. We are hopeful that these numbers will improve in the coming season as the economy improves and the 2010 Winter Olympics attracts tourists to the region.

b. Regional touring: VOs major touring programme, Vancouver Opera in Schools (VOIS) focuses on students and educators through out Metro Vancouver and the province. In 2008/09, 65% of the VOIS performances occurred in the Metro Vancouver region. Schools located in Vancouver proper hosted 30 of the 125 performances, while all other Metro Vancouver municipalities accounted for 51 of the 125 performances.

c.Strengthened Information: Over the course of the last few years we have devoted more resources to making our website an exemplary, visually interesting and informative destination for people who want to feel the multi-faceted excitement of opera. Building on that momentum, VO has instituted a social media initiative to increase awareness and bring opera to a new and younger generation of audience.

In which other Metro Vancouver municipalities do these activities take place if offered outside your home municipality?

In 2008/09, the Vancouver Opera in Schools (VOIS) touring programme performed in 11 municipalities in the Metro Vancouver region. These 11 municipalities are: Burnaby Coquitlam Delta Maple Ridge New Westminster North Vancouver Port Coquitlam Richmond Surrey Vancouver West Vancouver 3. What proportion of your annual budget is, or will be allocated to, your organizations region-wide services or programs?

VO calculates its 2009/10 investment in region wide services to be approximately 7.9 million; 83% of a $9.5 million operating budget. As all of our expenses are directed towards the presentation and administration of our core programming, we arrive at this number by multiplying our total budgeted expenses for 2009/10 by the average percentage of audience participants from Metro Vancouver communities in the 2008/09 season (see below for this calculation).

4. What was your total audience or patronage over the past year? What proportion is from outside your home municipality but within Metro Vancouver? Briefly explain how you track this information.

Main Stage Performances 2008/09 Attendance Total Attendance: 52,669 Total # of Households: 21,552 Metro Vancouver Households, including Vancouver proper: 20,319 Percentage of Households from Metro Vancouver, including Vancouver proper: 94% Metro Vancouver Households, excluding Vancouver proper: 9,308 Percentage of Households from outside Vancouver proper: 43%

Education/Community Programming (VOIS) 2008/09 Attendance Total Attendance: 41,775 Metro Vancouver Attendance including Vancouver proper: 29,555 Percentage of Attendance from Metro Vancouver, including Vancouver proper: 71% Metro Vancouver Attendance, excluding Vancouver proper: 17,700 Percentage of Attendance from Metro Vancouver, excluding Vancouver proper: 42%

An average of 83% of our audience for Main Stage and Education/Community Programming are from the Metro Vancouver region. The method of data collection for Education and Community Programs allows only for total attendance calculation and does not allow for information at the household level.

We track audience numbers for main stage performances through box office records in our customer relationship database system (Tessitura) and education and community programmes through audience counts provided by our presenting partners. 5. What are your organizations objectives for audience development in the region? How does your existing or proposed program advance those objectives?

Performances in 2008/09 averaged 87% of capacity; a 6% increase over the previous year. Our subscription retention rate has been a consistent 75%, with 95% or higher after three years of subscription. However, VO still has the clear objective to further diversify its audience composition demographically and culturally. Below are two key activities that VO has been engaged in over the last season and continues to pursue with vigor this upcoming season in order to achieve this objective:

Social Media Development: VO has instituted a social media initiative to increase awareness and bring opera to a new and younger generation of audience. We recognize that in order to reach this audience we must speak to them in a language in which they are familiar and social media is now part of our regular media mix. 2008/09 saw VO undertake numerous social media projects such as the enhancement of our micro site OperaLive.ca with vignettes, audio clips and the popular Opera Manga; the creation of a Facebook page with special privileges for VO Fans (1000 +); a Flickr site with Opera Fashion photo albums; a VO YouTube channel with behind the scenes video footage and blogs, a VO blog with guest posts, interviews and video diaries; a Twitter feed; and a Blogger Night @ the Opera.

Culturally Specific Activities: Since 2004, VO has explored and expanded its relationship with British Columbias Asian communities through the The Pacific Rim Initiative (PRI). With the goal of creating interest and relationships this initiative seeks to diversify the opera going audience through community programming and concert series. Highlights of the activities that have occurred under the umbrella of this initiative and plans for 2009/10: Mandarin Translations in House Programs (Ongoing since 2003/04); Views of Japan Community Forum (Fall 2004); Naomis Road- VOIS commission (Fall 2004- Spring 2006); Japanese Mangas (Ongoing since 2006/07); Night of Nostalgia Recital featuring traditional Korean music and opera (January 2006); Voices of the Pacific Rim Recital, (February, 2009), Opera Speaks Community Forum surrounding Nixon in China, investigating the confluence of Canadian and Chinese culture (March 2010). VO is also engaged in ongoing dialogue with South Asian cultural representatives to investigate ways in which to expand into this market and produce work and programming of relevance.

6. How do you plan to use the Metro Vancouver Cultural Grant in the current fiscal year?

Continued core funding from Metro Vancouver assists Vancouver Opera in:

1.Maintaining the highest quality of artistic planning and programming: Creative vitality is the lifeblood of any performing arts company; finding new ways to connect with our audiences and express our collective human experience is always at the forefront of our efforts. VOs productions have grown in range and scope over the years. Repertoire regularly includes large-scale works performed only by companies of the highest level, casts include world-class artists and the dynamic VO Orchestra and Chorus provides foundation for memorable performances.

2. Encouraging continued innovation in company management: Key to the success of the administration is the commitment to strategic planning and the team approach taken in each department. Management continues to engage each employee with the larger goals of the organization, and each employee is accountable for his/her role in the organizations development.

3.Maintaining the solid financial footing achieved in recent years: Financial achievements are important to VO as they enable the company to better achieve its mission, create new Canadian work, and pursue the values the company has embraced as key to ongoing success: relevance, excellence, and leadership. The challenge now presented is ensuring that the revenue goals address the continued uncertainty in the economy. We are weathering the economic storm of 2008/09 and forecast improvement in our bottom line for the coming fiscal year should core funding from all levels of government remain stable. Conditions and Signature

1. Grant recipients must acknowledge the support of Metro Vancouver on all promotional materials related to the funded program.

2. Grant funds must be spent in the organizations fiscal year for which the application is made.

3. Organizations making significant changes to the information provided in this application must discuss such changes with Metro Vancouver staff prior to implementation.

4. If the program(s) proposed in the organizations application is/are not commenced or completed, and there remains regional funds on hand; or if the program is completed without requiring the full use of regional funds, the Board directs that the outstanding funds be returned to Metro Vancouver through the Finance Department.

5. Information provided in the operating grant application may be subject to disclosure under the BC Freedom of Information and Protection of Privacy Act.

Signature of senior staff person authorized to prepa

krLevi,4/ a e Title

Signature of Chair/President of the Boarf, it rs: ley g eshc,f c,i l Chad Name Title

By signing this form, we do solemnly declare that, to the best of our knowledge, the information given in our application is complete and true in every respect.

DEADLINEFORSUBMISSION Mail or deliver two completed copies of the application form to the following location by Friday, July 24, 2009, 4:00 pm Metro Vancouver, Cultural Grants, Corporate Relations Department, 4330 Kingsway, Burnaby, BC V5H 4G8

004650889 VANCOUVER BOARD OF DIRECTORS Revised December 2008

JAMES W. WRIGHT, GENERAL DIRECTOR

EXECUTIVE

Mr. Alex R. Besharat Chair Occupation: Director, Western Region Scotia McLeod Ms. Bev Park Vice- Chair Occupation: Executive Vice-President Chief Financial Officer, TimberWes Forest Corp. Henning Freybe Treasurer Occupation: President, Freybe Gourmet Foods Ms. Lis Welch Secretary Occupation: Vice-Chair, The Welch Group Mr. Bruce Wright Immediate Past Chair of the Board Member, Executive Committee Occupation: Partner, Goodmans Dr. Michael J. Gallagher Member, Executive Committee Occupation: President Chief Operating Officer, Westport Innovations Inc. Ms. Inna Vlassev OBrian Member, Executive Committee Occupation: Clinical Psychologist Alpha List by Last Name

Dr. Eve Aymong Occupation: Doctor, St. Pauls Hospital

Dr. Heather Clarke Occupation: Principal, Health Nursing Policy Research Evaluation Consulting Ms. Parviz H. Cordell Occupation: Owner, Urban Properties Ltd. Mr. Steven G. Dean Occupation: Chairman, Amerigo Resources Ltd.

Mr. Yuri Fulmer Occupation: President CEO, FDC Brands Ms. Arlene Gladstone

Ms. Doris H. H. Gnandt Occupation: Vice President, Director Sales Services, Odium Brown Ltd.

Mr. Douglas Hume Occupation: Vice-President, Polaris Realty (Canada) Ltd. Ms. Yoshiko Karasawa

Dr. Linda Kaser Occupation: Faculty of Education, University of Victoria

Dr. Julia Levy

Ms. Georgina L. MacDonald

Mr. John McLernon Occupation: Honorary Chairman Co-founder Colliers International

Ms. Sarah McNeill Occupation: Chief Acceleration Officer, McNeill Nakamoto Recruitment Group Ms. Rona Radler

Ms. Manjy Sidoo

Mr. Pascal Spothelfer Occupation: President CEO, British Columbia Technology Industry Association (BCTIA) Vancouver Opera Foundation

Ms. Yulanda Faris Chair

Vancouver Opera Guild

Ms. Elisabeth Dawson

Vancouver Opera — Distinguished Honorary Members

Ms. Martha Lou Henley Distinguished Honorary Member

Mr. Kenneth Mahon Distinguished Honorary Member

Dr. Donald B. Rix Distinguished Honorary Member Vancouver Opera Association

Financial Statements June 30, 2008 PRICEWATERHOUsECOOPERS Ci

PricewaterhouseCoopers LLP Chartered Accountants PricewaterhouseCoopers Place 250 Howe Street, Suite 700 Vancouver, British Columbia Canada V6C 3S7 Telephone +1 604 806 7000 August 19, 2008 Facsimile +1 604 806 7806

Auditors' Report

To the Board of Directors of Vancouver Opera Association

We have audited the statement of financial position of Vancouver Opera Association as at June 30, 2008 and the statements of changes in net assets, revenues and expenditures and cash flows for the year then ended. These financial statements are the responsibility of the Association's management. 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 plan and perform an audit to obtain reasonable assurance whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.

In common with many charitable organizations, the Association derives revenue from donations, the completeness of which is not susceptible of satisfactory audit verification. Accordingly, our verification of these revenues was limited to the amounts recorded in the records of the Association and we were not able to determine whether any adjustments might be necessary to donations revenue, excess of revenues over expenditures, net assets and the fund balance.

In our opinion, except for the effect of adjustments, if any, which we might have determined to be necessary had we been able to satisfy ourselves concerning the completeness of contributions referred to in the preceding paragraph, these financial statements present fairly, in all material respects, the financial position of the Association as at June 30, 2008 and the results of its operations and its cash flows for the year then ended in accordance with Canadian generally accepted accounting principles. As required by the British Columbia Society Act, we report, that in our opinion, these principles have been applied on a basis consistent with that of the preceding year.

2zP Chartered Accountants

"PricewaterhouseCoopers" refers to PricewaterhouseCoopers LLP, an Ontario limited liability partnership, or, as the context requires, the PricewaterhouseCoopers global network or other member firms of the network, each of which is a separate and independent legal entity. Vancouver Opera Association Statement of Financial Position As at June 30, 2008

2008 2007 $ $ Assets Current assets Cash and cash equivalents 1,879,931 1,226,176 Accounts receivable (note 4) 484,515 666,398 Prepaid expenses - current (note 5) 288,055 265,773

2,652,501 2,158,347

Capital assets - net (note 6) 427,209 469,893

Prepaid expenses - non-current (note 5) 125,534 51,233

3,205,244 2,679,473

Liabilities Current liabilities Accounts payable and accrued liabilities 290,424 157,497 Deferred income - current (note 7) 2,120,418 1,811,344

2,410,842 1,968,841

Deferred income - non-current (note 7) 93,000 60,000

2,503,842 2,028,841 Net assets Net assets invested in capital assets (note 6) 427,209 469,893 Unrestricted net assets 274,193 180,739

701,402 650,632

3,205,244 2,679,473

Commitments (note 8)

Approved by the Board of Directors

Director Director

Vancouver Opera Association Statement of Changes in Net Assets For the year ended June 30, 2008

2008 2007

Net assets Unrestricted invested in Total net Total net net assets capital assets assets assets $ $ $ $ Balance - Beginning of year 180,739 469,893 650,632 613,301

Excess (deficiency) of revenue over expenditures for the year 261,113 (210,343) 50,770 37,331

Purchase of capital assets (167,659) 167,659

Balance - End of year 274,193 427,209 701,402 650,632 Vancouver Opera Association Statement of Revenues and Expenditures For the year ended June 30, 2008

2008 2007 $ $

Revenues Earned revenues Mainstage ticket sales 3,443,449 3,355,432 Ensemble program fees 88,278 116,445 Investment income 38,699 38,052 Other revenue 27,559 12,513 Community Outreach program fees 17,020 14,830 Concert ticket sales 10,920 73,583

3,625,925 3,610,855

Private sector fundraising Individual 1,417,239 1,386,162 Lotteries and special events 1,218,996 1,427,462 Foundations and other 444,489 397,042 Corporate 442,840 485,926

3,523,564 3,696,592

Public sector grants Canada Council - operating 866,608 700,000 British Columbia Arts Council 398,000 402,000 City of Vancouver 360,265 381,700 Greater Vancouver Regional District 18,500 18,500

1,643,373 1,502,200

Total revenues 8,792,862 8,809,647 Expenditures Mainstage productions 4,357,317 4,526,705 Marketing 1,350,928 1,219,906 General and administrative 1,005,573 881,559 Fundraising 756,104 628,309 Lotteries and special events 627,521 687,355 Ensemble program 279,533 393,717 Amortization 210,343 106,173 Community Outreach program 154,773 146,798 Concerts 181,794

Total expenditures 8,742,092 8,772,316

Excess of revenues over expenditures for the year 50,770 37,331 Vancouver Opera Association Statement of Cash Flows For the year ended June 30, 2008

2008 2007

Cash provided by (used in) Operating activities

Excess of revenues over expenditures for the year 50,770 37,331 Item not involving cash - amortization 210,343 106,173

261,113 143,504 Changes in non-cash working capital items Decrease (increase) in accounts receivable 181,883 (259,883) (Increase) decrease in prepaid expenses (96,583) 151,171 Increase in accounts payable and accrued liabilities 132,927 60,834 Increase (decrease) in deferred income 342,074 (316,955)

560,301 (364,833)

821,414 (221,329)

Investing activities Purchase of capital assets (167,659) (171,281) Net change in cash and cash equivalents during the year 653,755 (392,610) Cash and cash equivalents - Beginning of year 1,226,176 1,618,786 Cash and cash equivalents - End of year 1,879,931 1,226,176

Interest received 38,699 38,052 Vancouver Opera Association Notes to Financial Statements June 30, 2008

1 Purpose of the organization

The Vancouver Opera Association (the Association) was incorporated under the British Columbia Society Act on October 31, 1958 to produce professional presentations of opera at a high musical and theatrical standard for as wide an audience as possible and to develop the interest and involvement of this audience in all aspects of the art form.

The Association is a registered charity under the Income Tax Act and has no liability for income taxes.

2 Significant accounting policies

These financial statements have been prepared in accordance with Canadian generally accepted accounting principles for not-for-profit organizations.

Cash and cash equivalents

Cash and cash equivalents consist of cash on deposit with banks and highly liquid short-term investments. Investments of this nature are measured at fair value.

Capital assets

Capital assets are recorded at cost. Amortization is calculated based on the following estimated useful lives on a straight-line basis.

Computer equipment 3 years straight-line Computer software 10 years straight-line Office furniture and equipment 5 years straight-line Leasehold improvements term of the lease

When a capital asset no longer has any long-term service potential to the organization, the excess of its net carrying amount over its residual value will be recognized as an expense in the statement of revenues and expenditures.

Gifts-in-kind

Gifts-in-kind include securities, furnishings, equipment, books, manuscripts, artwork and artifacts. Gifts-in-kind are recorded at fair market value at the date of acquisition.

Scenery, costumes and property

Scenery, costumes and property costs relating to future productions are included in prepaid expenses. These items are expensed in the year in which they are first used for productions. Vancouver Opera Association Notes to Financial Statements June 30, 2008

Revenue recognition

Restricted revenues

The Association follows the deferral method of accounting for contributions. Some contributions included within private sector fundraising or public sector grants are restricted in use by the external contributor. These restricted contributions are recognized as revenue in the year in which the related expenses are incurred. In the case of contributions received for the purchase of capital assets having a limited life, an amount equivalent to the amortization expense is reported as revenue each year. Those contributions with an unlimited life are treated as a direct increase in capital assets.

Unrestricted revenues

Revenues received without restrictions include sales of subscriptions and tickets. Monies received from these sources are reported as revenue at the time the product is substantially provided.

Deferred income

Deferred income represents funds received from grants, donations and sponsorships, and ticket sales, which apply to future seasons' operations.

Related parties

Vancouver Opera Foundation

The Association exercises significant influence over the Vancouver Opera Foundation (the Foundation) by virtue of its ability to appoint the majority of the Foundation's Trustees. The Foundation was established to raise funds for the use of the Association. The Foundation contains endowment funds with capital restricted in perpetuity which allows only income to be used for specific purposes. The Foundation is incorporated under the Canada Corporations Act and is a registered charity under the Income Tax Act.

Vancouver Opera Endowment Trust

The Vancouver Opera Endowment Trust (the VOET) was established in 1961 by a deed of trust as a result of a major contribution from a single patron and his family. The Association, provided they meet certain criteria, receives the residual income earned by the Trust. Although the Association may appoint the majority of Trustees, the power of these Trustees to determine the strategic operating, financing and investing policies is limited by the Trust deed. Therefore, the Association does not control or exercise significant influence over the Trust.

(2) Vancouver Opera Association Notes to Financial Statements June 30, 2008

Use of estimates

The preparation of financial statements requires management to make estimates and assumptions that affect reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures during the year. Actual results could differ from those estimates, as additional information becomes available in the future.

Comparative figures

Comparative figures have been reclassified where necessary to be consistent with the presentation adopted in the current year.

3 Accounting changes

Implementation of financial instruments accounting standards

Effective July 1, 2007, the Association adopted the provisions of Sections 3855, Financial Instruments - Recognition and Measurement; 3865, Hedges; and 3251, Equity of the Canadian Institute of Chartered Accountants (CICA) Handbook. As a result of adopting these standards, all financial assets were classified as available-for-sale, held-to-maturity, held-for-trading, or loans and receivables. Financial liabilities were classified as held-for-trading or other liabilities.

The new standards require that all financial assets and liabilities be measured at fair value with the exception of investments held-to-maturity, loans and receivables and other liabilities that are measured at amortized cost using the effective interest rate method. The Association has measured its cash and cash equivalents at fair value; accounts receivable, accounts payable and accrued liabilities at amortized cost using the effective interest rate method. There has been no adjustment to previous carrying amounts to comply with the new standards. The fair value of all financial instruments approximates their carrying amount.

Future accounting changes

The following recently issued standards will be implemented by the Association on July 1, 2008:

a) Financial Instruments - Disclosure and Presentation

CICA Handbook Section 3862, Financial Instruments - Disclosures, and Section 3863, Financial Instruments - Presentation, both issued in December 2006, revise the current standards on financial instrument disclosure and presentation, and place an increased emphasis on disclosures regarding the risks associated with both recognized and unrecognized financial instruments and how these risks are managed. Section 3863 establishes standards for presentation of financial instruments and non-financial derivatives and provides additional guidance with classification of financial instruments, from the perspective of the issuer, between liabilities and equity.

(3) Vancouver Opera Association Notes to Financial Statements June 30, 2008

b) Capital Disclosures

Section 1535, Capital Disclosures, issued in December 2006, establishes guidelines for the disclosure of information regarding an entity's capital and how it is managed. Under this section enhanced disclosure with respect to the objectives, policies and processes for managing capital will be provided.

4 Accounts receivable

2008 2007 $ $

Pledges receivable 303,806 226,610 Grant receivable - the Foundation 994 319,768 Other grants receivable 105,000 75,000 Other receivables 74,715 45,020

484,515 666,398

5 Prepaid expenses

Prepaid expenses comprise expenses for general operating costs and for productions to be held in future periods.

6 Capital assets

2008 2007

Accumulated Cost amortization Net Net $ $ $

Computer equipment 118,815 79,581 39,234 38,825 Computer software 364,472 167,900 196,572 235,528 Office furniture and equipment 210,044 60,927 149,117 55,273 Sets, costumes and props 90,000 Leasehold improvements 39,902 24,616 15,286 23,267 Other 27,000 27,000 27,000

760,233 333,024 427,209 469,893

Included in capital assets is $27,000 (2007 - $27,000) of contributed capital assets.

(4)

Vancouver Opera Association Notes to Financial Statements June 30, 2008

7 Deferred income

2008 2007 $ $

Subscription sales 1,705,232 1,670,355 Grants and donations 508,186 200,989

2,213,418 1,871,344 Less: Current portion (2,120,418) (1,811,344)

93,000 60,000

8 Commitments

Operating leases

The Association has entered into operating leases for the head office location and certain office equipment. Total payments required under these leases are as follows:

2009 272,115 2010 272,115 2011 11,184

555,414

Contractual obligations

At June 30, 2008, the Association had contracted certain performers for the 2008-2009 and subsequent seasons. The total amount payable under these contractual obligations at June 30, 2008, is $1,481,940 (2007 - $1,300,006). In addition, contractual obligations for production sets at June 30, 2008, is $nil (2007 -$75,500).

Canadian Actors' Equity Association irrevocable letter of credit

The Association has an irrevocable letter of credit of $80,000 (2007 - $80,000) in favour of the Canadian Actors' Equity Association which secures a performance guarantee.

(5) Vancouver Opera Association Notes to Financial Statements June 30, 2008

9 Interest rate and currency risk management

Interest rate risk

The Association is not exposed to significant interest rate risk.

Foreign exchange risk

The Association is not exposed to significant foreign exchange risk as revenues and expenditures in foreign currencies are nominal.

10 Related party transactions

The Association received an annual operating grant of $388,000 (2007 - $340,000) from the Foundation of which $994 (2007 - $319,768) is included in accounts receivable at year-end. The Association pays expenses for office supplies and programs of $32,470 (2007 - $28,803) on behalf of the Foundation.

The Association receives $12,000 (2007 - $12,000) annually from the VOET.

11 Employee benefits

The Vancouver Opera Association has an Individual Pension Plan.

The current service contributions paid by the Vancouver Opera Association to this plan in 2008 were $37,696 (2007 - $35,660).

(6) VANCOUVER OPERA - 2007/10 SEASONS Mil SUMMARY OF OPERATING REVENUES EXPENDITURES MEI MIMI 7/15/200 4:31 PM =MI MacBeth 4 Cav/Pag 4 Onegin 4 Onegin 4 Norma 4 FOR 6 Italiana Nam Carmen 0 Carmen 6 Nixon 4 MANAGEMENT PURPOSES Ariadne 4 Fidelio Num Ri • oletto Rigolet o 5 Figaro 5 ONLY Tosca 5 Boheme Salome 4 Butterfly 6 19 18 Ill 15-Jul-09 19 9-Jun-09 19 EMI Mil 2006/07 2007/08 NMI 2008/09 2009/10 REVENUE: Ac u % of total Actual EMI Final % oftotai Draft % of total IMO MEM Earned Revenue 1 3,610,855 lita21 3,647 802 M2I 40.5% 3,903,115 45.1% 3,827,430 39.9% Private Sector Revenues 2 2,269,130 W 2,282,691 26.0% 28.9% 2,228,935 25.8% 2,724,990 28.4% Lotteries 770,540 Kim 668,750 7.6% ERZ 576,690 6.7% 519,021 5.4% Special Events 4 656,922 MiEM 550,246 6 3% 6 6% 309,380 3.6% 720,000 7.5% Government Grants Revenues 5 1,502,200 17.1% 1,643,373 8.7% 1,546 000 6.2% 1,631,228 18.9% 1,799,936 18.8% TOTAL REVENUE 6 8,809,647 8,792,862 -0.2% 9,57 450 8.6% 8,649,348 1.6% II ,591,3771 10 9%

EXPENSES MI 11.11111111

Production MI ain Series 7 4,013,556 46.0% 3,640,384 125211 4,063 952 3,963,849 43.5% 4,314,900 45.0% Concerts 8 180,612 Nag 011=11 0 0 0.0% 100,000 1.0% Music Overhead 9 294,165 410,447 Mall 426,500 4.5% 438,737 4.8% 436,500 4.6% Ensemble Program-incl. Nao s Road 10 393,717 amil 279,533 KM 318,600 3.3% 345,475 3.8% 295,000 3.1% Special projects EEO 20,09 Elm 63,308 0.7% 109,000 .1% 44,150 0.5% 20,000 0.2% Music Words Opera 1.1111 126,700 1.5% 106,999 MEM 153,900 119,959 1.3% 142,000 1.5% Production Overhead 77020 , 389,667 11111 282,500 318,441 3.5% 325,500 3.4% Programs Expenses 5,205,868 4,890,338 6,354,452 5,230 611 57.5% 5,633,900 58.8% Fund Raising Expenses MO 628,307 IINISM 756,104 8 6% 879,183 854,951 9.4% 803,550 8.4% Lotteries 16 436,752 5.0% 422,149 EMI 430,389 4.5% 342,511 3.8% 312,000 3.3% Special Events Mil 250,603 BIM 205,372 NM 248,900 2 6% 142,352 1.6% 252,000 2.6% Marketing Expenses ElliEl 1,221,086 1,350,928 1,48 ,558 111MI ,419,173 15.6% 1,497,739 15.6% Administration Expenses 19 984,526 1,117,201 12.8% 1,152,401 1,112,696 12.2% 1,087,729 11.3% TOTAL EXPENSES 20 8,727,142 8,742,092 0.2% 9,548,883 9,102,294 4 % 1 9,586, 181 5.3%

NET INCOME 21 82,505 50,770 22,567 -452,946 4,459

Extraordinary expense/revenue 22 -45,172 453,000

TOTAL NET INCOME 23 37,333 50,770 22,567 54 4,459 VANCOUVER OPERA - 2007/12 SEASON ME NEM 1.111.11 MIII STATEMENT OF OPERATING REVENUES EXPENDITURES 11111.1 .1.111111111111111.111111111.1111 EMI 1.111111 Mil MacBeth MEM Cav/Pag 4 Onegin 4 Onegin 4 Norma 4 FOR Magic Flute 6 Italiana 4 Carmen 6 6 Nixon 4 MANAGEMENT PURPOSES Ariadne 4 Imat=limmii Rigoletto EIEIIIIIIPIIIII 5 Figaro 5 ONLY Tosca Salome Butterfly 6 19 Mill 19 19 19 .11.11 2006/07 ME 2008/09 2008/09 2009/10 REVENUE: MM. Actual MIN ilri rThilliE=Mill=111 Fina • 113 Draft •ro h MIIIIIIIIMMIIIIIIIIIIIIIIIIrll.MIIIMMMIIIIIIIIIMMMIMIIIIIIIIII11=1. Core Season Subscription Sales 24 1,908,066 2,005,913 5. % 2,142,960 Mil 2,026,565 1 0% 3 6% • amsaIIIIIIIIIIIIIIIIIIEMINIIIIIIIIIIIIIIIIIWIXEIIIIIIIIII MIME • MII:101111111111MEMILIM111111111111111111=111111111M =IIIII • MEIMIIIIIIIMICERICINIIIIIIIIIIEMILIMIIIIM 6 468,009 1111111111111111111■11.111.1 IIIMEI 1 1161 MEI MN • MN 111 11111 1111 Service char.e - subs and sin.les am 1191211 100,000 -4 5% • 80,000 ism MIELI MIN 6 111111211 20,000 34.9% MIMI IM3153.111111 656 IIII M1111111111111111 IIIMIIIIMIIIIIIIIIIIIIIIIIIIMMIIIIIIIIIIIIIIIIII MIIII MII=IMIIIIIIIIIIIIIIII =11111 -9.9% 525,000 20 4% 1111..11= Mill 1111.111 MI MEI mai 1,390,090 Km EMI MIMI MEMIMIIIIMEECIIIMMI Mil MIMI 1111112IMI In 0 EMI 422,000 24.1%

48 MOM 0.6% 11111111BUCCIMMEMI111111111=1 Mill MIIIIIIMMIIIIIIIIIIIMIIIIII MIMI 1111111111111111111111111111111 Mil IIIIIMIIIIIIIMIIIMM3 MEM MIMZIMIIIEIIIIIIIIILIMMIII IIII IIII MI IIIIIIMIIIIMIIIIIIIIIIMMMIIIIIIIIIIIIIIIII IIIIIIIIIMIIIIIIIIIIIIIMIIMIIMIIIIIIIIIIIIIIII IIIIIIII IIIIIIIIIIIIIIIIIII TOTAL SPECIAL EVENTS 56 656,922 550,246 -16.2% 628,651 14.2% 309,380 -50.8% MIIIIIIIMIIIIIIIIMIMIIIIIMMIIIIIIMIIIMMIMIIIIIIIIIIIIIIIII 111.111011113 111111111111311111111111 MO 18,500 ME 0.0% 402,000 mom lam Ram

II IIII IIIII all - SOFI/50th Anniv Sponsor 62 135,000 MN 275,000 IIIIMIMIIIIIIMIIIIIUNMIIIIMIIIIIIIIIIIIIIMIIIIIIIN 200,000 63 50,000 50,000 .... 100,000 - VANOC 1.111111 , MI ill TOTAL REVENUE IIIGEIIIIIIIIIIIIDICR 8,792,862 Kam 9,571,450 8.6% VANCOUVER OPERA 2007/12 SEASON L______i STATEMENT OF OPERATING REVENUES EXPENDITURES 4 MacBeth 0 4 Onegin 4 Onegin 4 Norma FOR Ma c Flute 0 0 Carmen 0 Carmen 6 Nixon 4 MANAGEMENT PURPOSES A iadne 0 0 Ri . oletto Ri • olet o 5 Figaro 5 ONLY Salome 4 Butterfly 6 19 19 11111111111 III III III •III =111 2008/09 2008/09 2009/10 EXPENSES 111111111111111111 r=1311111111=111. .ro h Final • o h Draft .ro h limilm■mwasi rate rate 9•Jun-09 rate PROGRAMS IIIIIIIIIIIIIMIIIIIIIIIIIIIIIIM MIIIII Production One Artistic Expenses 66 642,798 MIIIIIIIIIIIIIIIIIII=1 709,937 NEM 719,286 624,000 Production One Production Expenses 355,869 265,856 322,787 al 416,552 372,500 TOTAL PRODUCTION ONE 998,667 968,354 1,032,724 1,1 5,8 8 996,500 Production Two - Artistic Expenses III= 840,418 480,878 1111 804,86 11111 778,198 823,000 Production Two -Production Expenses 557,500 290,704 325,400 328,337 402,000 TOTAL PRODUCTION TWO Ell 1,397,918 77 582 ,1 0,263 1,106,535 1,225,000 Production Three - Artistic Ex ense 72 565,364 632 90 III 610,109 577,301 671,900 Production Three - Production Expense s 73 232,685 230,194 271,000 213,484 256,800 TOTAL PRODUCTION THREE 74 798,049 862,584 881,109 790,785 928,700 Production Four - Art s lc Expenses 75 597,651 722,150 747,756 680,181 798,000 Production Four Production Expenses 76 221,271 315,714 272,100 250,510 366,700 TOTAL PRODUCTION FOUR 77 818,922 1,037,86 1,019,856 930,691 1,164,700 Concerts 78 180,612 0 0 0 100,000 TOTAL CORE SEASON ART/PROD 79 4,194,168 3,640, 84 - 3.2% 4,063,952 3,963,849 8.9% 4,414,9001 11.4% Artistic Overhead 80 294,165 410,447 39 % 426,500 4 8,7 7 6.9% 436,500 -0.5% VOIS Program 81 393,717 279,533 29.0% 318,600 345,475 23.6% 295,000 -14.6% Special projects MID3 20,098 63,308 2 5 0% 109,000EEM 44,150 30.3% 20,000 -54.7% Educational Overhead 83 126,700 106,999 -15.5% 153,900 119,959 12.1% 142,000 18.4% Production Overhead 84 177,020 389,667 120.1% 282,500 318,441 8.3% 325,500 2.2% TOTAL PROGRAMS EXPENSES 85 5,205,868 4,890,338 6 % 5,354,452 5,230 611 7.0% 6,633,900 7.7%

FUND RAISING Corporate 86 18,360 1111111111111111111 7,127 -61.2% 20,000 III 8,179 14.8% 7,500 -8.3% _Opera Round Table 87 44,255 wim 36,850 -16.7% 50,000 24,440 33.7% 30,550 25.0% Prelude Dinners 88 85,645 68,22 lEam Eiga3 57,862 -15.2% 60,000 3.7% 17.5% Friends NEU 41,617111111111111111 37,604 -9.6% I S 38,298 1.8% 45,000 Government 90 120 200 66.7% 300 -0.3% Foundation MILO =III =III 301 F.R. Overhead 92 438,430 606,298 57.2% 725,751 19.7% 660,000 -9.1% TOTAL FUND RAISING 93 628,307 756,104 39.9% 854,951 13.1% 803,5501 -6.0%

LOTTERY MI IMO =11111 II= -11.2% SummerLottery MEM 148,925 1111111111111111 128,885 gagezimmm 12 8% 109,286 -15.2% 97,000 -10.0% WinterLottery 95 111,989 125,998 INEM 101,145 -19.7% 91,000 -1.1% Spring Lottery 96 137,556 Mil 131,088 -4 7% WM 98,062 -25 2% 97,000 Spring Lottery - Harley 97 38 282 36,178 11111 34,0 8 -6.0% 27,000 -20.6% TOTAL LOTTERIES 98 436,752 422,149 342,5111 - 8 9% 312,0001 -8.9%

SPECIAL EVENTS 7.1 % Special events 99 250,603 205,372 142,352 30.7% 8,000 50th Anniversary Events 100 0 0 • 0 34,0 00 TOTAL SPECIAL EVENTS 101 250,603 205,372 1 42,352 30.7% 252,000 77.0% 11

MARKETING MEM MEM MIIIII 267,180 -13.4% 287,500 7.6% Subscription Campaign 102 276,836 NEM 308,409 1 4% I KEN Production One 103 63,118 S I I 73,324 82,000 Production Two 104 113,235 I I I I 178,105 70,000 117,000 Production Three 105 49,395 113,851 53,007 150,000 Production Four Iwo 76,563 NM MEM =III Production Five 0 0 0 0 16,343 0 0 0 10,000 Concerts/Special Projects III IN MI 120.0% Donated Marketing Contra/In-Kind 109 50,000 50,000 0.0% 50,000 0.0% 50,000 0.0% 110,000 12.4% SUBTOTAL SEASON MARKETING 110 645,490 733,392 13.6% 760,000 17.7% 735,467 0.3% 826,500 466,000 -1.9% Marketing Overhead 111 322,319 404,635 25.5% 475,819 47.6% 475,197 7.4% -1.6% Ticket Center Overhead 112 253,277 212,901 - 5.9% 247,739 -2.2% 208,509 -2.1% 205,239 TOTAL MARKETING 11 3 1,221,086 1,350,928 10.6% 1,483 58 21.5% 1,419,17 5.1% 1,497,7391 5.5%

ADMINISTRATION 543,000 1.4% Salaries/Benefits 114 402,685 494,167 22.7% 542,359 535,367 8 3% 544,729 -5.6% Office Expense 115 581,841 623,034 7.1% 610,042 577,329 7. % TOTAL ADMINISTRATION 11 6 984,526 1,117,201 3.5% 1,152,401 1,112,696 -0.4% I 1,087,7291 -2.2% ,

TOTAL EXPENSES 11 7 8,727,142 8,742,092 0.2% 9,548,883 9,102,294 4.1% I 9,586,9181 5.3% Vancouver Opera Strategic Plan: 2008-2012 Excellence Relevance Leadership

Since 2000, Vancouver Operas board and management have developed meaningful strategic plans that have both stretched the organization and clearly laid out an ambitious future. By and large, the goals of these previous plans have been met in both financial and artistic areas.

Our current planning looks to the pivotal year of 2010, the companys 50th anniversary season as well as the year of the Winter Olympics, and a bit beyond. The years 2009 and 2010 provide a focal point for our planning, and a point from which we launch the next phase of our journey as a company.

This planning process will continue the consensual practice of previous plans. Each director has an opportunity to help mould the plan and determine the companys direction. Key to this process is an annual full board of directors and senior management retreat.

The planning process has identified six key areas: Programming; Financial Management and Income; Governance; Operations and Facilities; Leadership; and 2010 and Beyond. Programming Main Stage

The main stage proposed programming plan for the next five years:

2009-10 2010-11 2011-12 2012-13 2013-2014

Norma Lillian Ailing # West Side Story # Aida Turandot Bonynge LaCombe; Dala; Prod: Purchase Robinson Cazan from NYCO World New premiere New

Nixon in China Lucia di Romeo Juliette Magic Flute Tea # Lammermoor; LaCombe; Grant Darlington; TBA TBA: Darlington; TBA Prod Utah Miyamoto Cavanaugh Prod. TBA Prod: VOA/OCP New Production

Marriage of La Clemenza di Don Carlo Barber of Don Giovanni Figaro Tito Darlington; TBA Seville Darlington: Darlington; Prod: HOT, HK Alexander Berlin Prod. Santa Fe

Madama La Traviata The Merry Widow Ghosts of Manon or Die Butterfly Lacombe; LaCombe;TBA Versailles # Fledermaus Darlington; Miller Prod. Utah TBA; Swackhamer Glimmergiass Robinson Prod: Omaha Prod: OTSL, Wexford 50th Anniversary Concert

VOIS: Jack Pine VOIS: Hansel VOIS: BoB or VOIS Magic VOIS: Hansel Gretel or Naomi Flute? Gretel or Cinderella Cinderella Enhanced Productions # Resonant 20th /21st C Production 2008/09 Total Attendance Figures

Production Performances Dates Hall Hall Capacity Subscriptions Sold Single Tix Total Paid Tix % of Paid Tix Comp Tix Total Attendance 91.75% 795 9632 Eugene Onegin 4 Nov 22, 25, 27 29 QET 2,820 6222 2615 8837 15714 95.61% 721 16435 Carmen 6 Jan. 24, 27, 29, 31, Feb. 3. 5 QET 2,820 6483 9231 93.45% 700 10683 Rigoletto 5 March 7, 10, 12, 14, 17 QET 2,820 6483 3500 9983 Salome 4 May 2, 5, 7, 9 QET 2,820 6483 6483 100.00% 6483 15346 41017 94.87% 2216 43233 Dress Rehearsals 602 57.88% 438 1040 Eugene Onegin 1 Nov. 20 QET 1,500 602 674 45.17% 818 1492 Carmen 1 Jan. 22 QET 1,500 674 56.02% 511 1162 Rigoletto 1 Mar. 5 QET 1,500 651 651 0.00% 0 Salome 1 April 30 QET 1,500 0 1927 1927 52.17% 1767 3694 Concerts Voices of Pacific Rim 4:4 Playhouse 1 Feb. 8 Playhouse 668 668 668 90.15% 73 741

17941 43612 91.49% 4056 47668 08-09 Season Households by City

City Eugene Onegin Carmen Rigoletto Salome Pac Rim

Anmore 2 4 3 2 0 Belcarra 4 6 4 4 0 Bowen Island 11 16 16 11 0 Burnaby 258 433 326 262 11 Coquitlam 92 179 125 98 2 Delta 102 157 123 107 0 Langley 66 113 73 55 0 Lions Bay 8 16 9 11 0 Maple Ridge 36 74 49 39 1 New Westminster 82 142 107 96 2 North Vancouver 404 594 470 411 4 Pitt Meadows 5 17 8 4 0 Port Coquitlam 34 59 36 33 1 Port Moody 36 64 49 38 0 Richmond 183 304 209 193 4 Surrey 195 322 248 190 4 Vancouver 2314 3471 2754 2426 46 West Vancouver 362 473 395 348 9 White Rock 59 83 65 58 0

Total # Households 4253 6527 5069 4386 84 20319

Total # of households 4462 7075 5352 4579 84 21552 (including cities not listed above)

NOTE: Pac Rim was sold primarily in person so no household/address data was captured NOTE: These numbers do not include in person/door sales where no household/address data is captured VOIS PERFORMANCE SCHEDULE 2008/09

Date Time Venue Venue Address City Jan 26 - Feb 7 Rehearsals T 10-Feb 9:30 Hastings Elementary 2625 Franklin St Vancouver T 10-Feb 1:30 Nightingale 2740 Guelph St. Vancouver W 11-Feb 9:45 MacDonald Elementary 1950 E. Hastings Vancouver R 12-Feb 9:30 Sir Guy Carleton 3250 Kingsway Vancouver R 12-Feb 1:30 Brittania Elementary 1110 Cotton Dr. Vancouver F 13-Feb 11:00 Admiral Seymour Elementary 1130 Keefer St. Vancouver S 15-Feb 2:00 Centennial Theatre 2300 Lonsdale Ave North Vancouver M 16-Feb 1:15 Sir Alexander Mackenzie 960 39th Ave Vancouver T 17-Feb 9:30 Ecole Jules Quesnel 3050 Crown St Vancouver T 17-Feb 1:15 Emily Carr Elementary 4070 Oak St Vancouver W 18-Feb 10:00 Immaculate Conception School 8840 119 St. Delta R 19-Feb 9:45 Bramblewood Elementary 2875 Panorama Dr Coquitlam R 19-Feb 1:30 Richmond Christian School 5240 Woodwards Rd Richmond F 20-Feb 11:00 Irwin Park Elementary 2455 Haywood Ave West Vancouver M 23-Feb 1:00 Don Christian School 6256 184 St Surrey T 24-Feb 9:30 Dr. Annie B. Jamieson Elementa 6350 Tisdall St Vancouver T 24-Feb 1:30 John Henderson Elementary 451 53rd Ave Vancouver W 25-Feb 9:30 Carnarvon Community Elements 3400 Balaclava St Vancouver W 25-Feb 1:30 Jessie Wowk Elementary Richmond R 26-Feb 9:30 St. Anthonys School 1370 West 73rd Ave (school) Vancouver R 26-Feb 1:15 Garden City Elementary 8311 Garden City Road Richmond F 27-Feb 10:00 St. Edmunds School 535 Mahon Ave North Vancouver F 27-Feb 1:30 Collingwood Junior School 70 Morven Dr. West Vancouver M 2-Mar 1:50 Quarterway Elementary 1632 Bowen Road Nanaimo T 3-Mar 9:30 Cilaire Elementary 25 Cilaire Dr. Nanaimo T 3-Mar na drive to Ucluelet W 4-Mar 1:30 Ucluelet Secondary Ucluelet W 4-Mar 7:00 Ucluelet Historical Soc. PO Box 77 Ucluelet F 6-Mar 9:30 Valley View Elementary 2300 Valley View Dr. Courtenay W 11-Mar 7:00 Artspring Saltspring Island R 12-Mar 10:00 Artspring Saltspring Island W 25-Mar 1:00 St. Bernadette 13130 65b Ave Surrey R 26-Mar 9:30 Panorama Heights Elementary 1455 Johnston St. Coquitlam R 26-Mar 1:30 St. Augustines School 2145 8th Ave West Vancouver F 27-Mar 10:00 St. James School 2767 Townline Road Abbotsford M 30-Mar 1:00 Ellendale Elementary 14525 110A Ave Surrey T 31-Mar 9:45 Boundary Park Elementary 12332 North Boundary Dr. Surrey T 31-Mar 1:30 Refrew Elementary 3315 22nd Ave. East Vancouver R 2-Apr 10:00 Viva Musica 1375 Water St. Kelowna R 2-Apr 12:30 Viva Musica 7-368 Industrial Avenue Kelowna F 3-Apr 7:00 West Vancouver Library 1950 Marine Drive West Vancouver M 6-Apr 9:45 Mediated Learning Academy 550 Thompson Ave Burnaby/Coquitlam M 6-Apr 1:30 Coquitlam River Elementary 4250 Shaughnessy St Port Coquitlam T 7-Apr 9:45 JW Sexsmith School 7455 Ontario St. Vancouver T 7-Apr 1:30 Maple Grove Elementary 6199 Cypress St. Vancouver W 8-Apr 9:45 Our Lady of the Assumption 2255 Fraser Ave Port Coquitlam W 8-Apr 1:30 Choice School 20451 Westminster Hwy N. Richmond R 9-Apr 1:15 Fromme Elementary School 3657 Fromme Rd. North Vancouver M 22-Sep 1:15 Sir James Douglas 7550 Victoria Drive Vancouver T 23-Sep 10:00 Bear Creek 13780 80 Ave. Surrey W 24-Sep 9:45 Eastview Elementary 1801 Mountain Hwy North Vancouver W 24-Sep 1:15 Highlands Elementary 3150 Colwood Dr. North Vancouver R 25-Sep 10:00 Unsworth 5685 Unsworth Rd. Chilliwack R 25-Sep 1:15 Strathcona 46375 Strathcona Rd Chilliwack Sa 27-Sep 7:00 Royal Theatre Box 144 Barkerville T 30-Sep 9:30 John Field Elementary PO Box 240 Hazelton T 30-Sep 1:15 New HazeIton Elementary POBox 220 New Hazelton W 1-Oct 9:30 South HazeIton Elementary PO Box 60 South Hazelton W 1-Oct 1:30 Kitwanga-Elem-Jr Sec PO Box 88 Kitwanga R 2-Oct 10:00 Mount Elizabeth Theatre 1491 Kingfisher Ave Kitimat R 2-Oct 1:00 Mount Elizabeth Theatre 250-632-7887 Kitimat M 6-Oct 9:30 Bear Valley School PO Box 218 Stewart T 7-Oct 9:30 Bulkley Valley Christian School PO Box 3635 Smithers T 7-Oct 1:30 Muheim Memorial Elementary PO Box 2260, 3659 3rd Ave Smithers R 9-Oct 12:50 Grassy Plains Elem RR2 Burns Lake F 10-Oct 9:30 William Konklin Box 7000 Burns Burns Lake W 15-Oct 10:00 Brooke Elem 8718 Delwood Dr Delta W 15-Oct 1:30 McClosky Elem 11531 80 Ave Delta R 16-Oct 9:45 Cascade Heights 4343 Smith Ave Burnaby R 16-Oct 1:30 South Slope 4446 Watling Burnaby F 17-Oct 10:15 Dr. Thomas A. Swift Elementary 34800 Mierau St. Abbotsford M 20-Oct 9:30 Corpus Christi School 6344 Nanaimo Street Vancouver M 20-Oct 1:15 Pierre Elliot Trudeau Elem 449 62nd Ave. East Vancouver T 21-Oct 10:00 MB Sanford Elementary 7318 143 st Surrey T 21-Oct 1:30 Cambridge Elementary 6115 150 St Surrey W 22-Oct 9:45 Fleetwood Elementary 15289 88 Ave Surrey W 22-Oct 1:30 Chimney Hill Elementery 14755 74 Ave Surrey R 23-Oct 9:45 Spencer Herbert Elementary 605 2nd St. New Westminster R 23-Oct 1:30 Cindrich Elementary 13455 90 Ave Surrey F 24-Oct 1:00 St. Patricks 22589 121 Ave Maple Ridge M 27-Oct 9:30 Immaculate Conception 3745 28 Ave West Vancouver M 27-Oct 1:30 Caulfield Elementary 4685 Keith Road West Vancouver T 28-Oct 10:30 ACT 11944 Haney Place Maple Ridge T 28-Oct tba ACT Maple Ridge W 29-Oct 10:00 Evergreeen Cultural Centre 1205 Pinetree Way Coquitlam W 29-Oct 1:00 Evergreeen Cultural Centre Geoff King (tech) 604-927-6553 Coquitlam R 30-Oct 10:00 Dogwood Elementary 10752 157 St Surrey R 30-Oct 1:30 Woodland Park Elem 9025 158 St Surrey F 31-Oct 12:45 Molehill Montessori 1155 Thurlow Street Vancouver M 3-Nov 10:30 William of Orange 17465 60 Ave Surrey M 3-Nov Langley Canadian Reformed Chl 21804-52 Ave (Langley/Cloverdale) T 4-Nov 11:00 Canyon Heights Elementary 4501 Highland Blvd North Vancouver W 5-Nov 9:30 Chase River 1503 Cranberry Ave Nanaimo W 5-Nov 1:30 Cinnabar Valley 1800 Richardson Rd Nanaimo R 6-Nov 9:30 Ecole Pauline Haarer 400 Cambell St Nanaimo R 6-Nov 1:30 North Cedar Intermediate 2215 Gould Rd. West Nanaimo F 7-Nov 9:30 Georgia Avenue Elem 625 Gerogia Ave Nanaimo M 10-Nov 1:15 Gilpin Elementary 5490 Eglinton St Burnaby W 12-Nov 9:30 Lord Selkirk 1750 22nd Ave East Vancouver W 12-Nov 1:45 Southridge Jr. School 2656 160th St Surrey R 13-Nov 9:45 Bridgeview Elementary 12834 115A Ave Surrey R 13-Nov 1:30 St. Marys School 5239 Joyce St. Vancouver F 14-Nov 9:45 John Knox Christian School 1432 Brunette Ave Coquitlam F 14-Nov 1:45 Cleveland Elementary 1255 Eldon Road North Vancouver T 18-Nov 9:45 Windsor Elementary 6166 Imperial St Burnaby T 18-Nov 1:30 Roy Stibbs Elementary 600 Fairview St Coquitlam W 19-Nov 1:00 ASIA North Poplar 32041 Marshall Road Abbotsford R 20-Nov 9:30 Henry Hudson Elem 1551 Cypress St Vancouver R 20-Nov 1:30 DR. R.E. McKechnie Elem 7455 Maple St Vancouver F 21-Nov 9:50 Tyee Elementary 3525 Dumfries St Vancouver M 9-Mar 9:30 Happy Valley 4495 Happy Valley Road Victoria M 9-Mar 1:15 Wishart Elementary 3310 Wishart Rd T 10-Mar 1:30 Gabriola Elementary Gabriola Island

April 21 - 26 at National Arts Centre in Ottawa and School tour 8 school shows in Ottawa and 2 public at the National Arts Centre July 17, 2009

Ms. Judy Robertson Cultural Grants Metro Vancouver 4330 Kingsway Burnaby, BC V5H 4G8

Dear Ms. Robertson:

I am pleased to enclose two copies of the Vancouver Symphony Societys 2009 cultural grant application for Region-serving Arts and Cultural Organizations. You will note that we are requesting that our grant be increased to the level of funding that the VSO received in 2007, $36,000. The support that we receive from Metro Vancouver assists with the cost of performing outside of the Orpheum in the various other venues throughout the Lower Mainland.

We are grateful to the Metro Vancouver for the funding received in 2008, and look forward to hearing from you regarding this years application.

Sincerely,

President CEO

VANCOUVER SYMPHONY ORCHESTRA 601 Smithe, Street, Vancouver, BC, V6B 5G1 tel 604 684 9100 fax 604 684 9264 www.vancouversymphony.ca USTAINABLE RE 1NG IDEAS INT

Metro Vancouver Cultural Grants 2009 Application for Region-Serving Arts and Cultural Organizations

Applicant Information

Name of organization (legally registered name): Vancouver Symphony Society

Address: 601 Smithe Street, Vancouver, BC V6B 5G1

Mailing address if different:

Telephone: 604-684-9100

Fax: 604-684-9264

Email: [email protected]

Website: vancouversymphony.ca

Contact person, and title, regarding information contained in the grant application: Jeff Alexander President CEO

BC Society Act Number: s-575

Date Registered: June 26, 1919

Federal Registered Charity #: 119282283 RR0001

Fiscal year end: June 30

Grant Request for 2009 fiscal year $ 36,000

Professional Status and Membership

Staff on payroll for Artistic personnel (directors, Administrative, production, previous fiscal year curators, performers, etc.) technical personnel

Full time 2 31

Seasonal full time 60

Permanent part time 6

Seasonal part time 58 5

Contract 138

metro Number of society members Voting members (excluding Board) 1,511

Number of Board members Number of non-Board volunteers Board Members =17 Non-Board volunteers = 309 Has your organization prepared a business plan? Yes No q

If yes, in what year was that plan created and last revised? approved by the Board in January 2008

Please indicate the levels of financial support your organization receives from government:

funding by fiscal year type of 2007 - 2008 2008 - 2009 Comments financial support Home grants 939,675 1,031,180 Municipality , directly paid staff salaries or benefits other

Provincial grants 1,085,800 1,265,900

gaming revenues 2008/2009 includes $250,000 direct 367,639 626,089 (lottery, casino, access funds for the Asia Tour

Federal Canada Council Includes SOFI grant $504,700 in 1663500, , 1,827,800, , 07/08 and $455,300 in 08/09 Other

Region-wide Leadership and Services Please limit your response to a maximum of 250 words (half a page) per question

1. Describe how your organization provides regional leadership related to its mandate or mission, including what makes your organization unique in the region.

The Vancouver Symphony Orchestras mission is to enrich the quality of life in, and bring prestige to our city, province and country through the presentation of high-quality performances of classical and popular music, and the delivery of excellent education and community programs. In our effort to accomplish this mission, the Vancouver Symphony presents over 150 concerts annually in thirteen diverse venues throughout the Lower Mainland. These include the Chan Centre for Performing Arts at U.B.C.; Centennial Theatre in North Vancouver; Kay Meeke Theatre in West Vancouver; Deer Lake Park and Michael J. Fox Theatre in Burnaby; South Delta Baptist Church; Bell Centre for Performing Arts in Surrey; Terry Fox Theatre in Port Coquitlam; Massey Theatre in New Westminster; the Orpheum Theatre, the Roundhouse Community Centre, St. Andrews Wesley Church and the Playhouse Theatre in downtown Vancouver. Over 220,000 people hear the VSO perform live each year, including close to 50,000 primary and secondary school students. Over one million more enjoy our performances on broadcasts on CBC Radio 2. We maintain several educational programs, including our Access Pass for elementary, secondary and post-secondary students. The pass is available free of charge and entitles the bearer to purchase tickets to any VSO concert for just $10.00. For the current year there are 3,747 students enrolled in this program. In addition, our successful "Kids Koncert" series and Tiny Tots for preschool children offer families the opportunity to enjoy classical music together. In our "VSO Connects" program VSO musicians visit each participating school several times so that the students can learn about music. There are currently seven elementary and seven high schools in the six largest Metro Vancouver school districts participating in this program. Over 71 school visits took place last season. The VSO also serves the community by collaborating with numerous local arts groups such as the Vancouver Bach Choir, Musica Intima, Chor Leoni Mens Choir, Elektra Womens Choir, Burnaby Clef Competition for young artists, the Vancouver International Dance Festival, Push International Performing Arts Festival, Kokoro Dance, Eire Born Irish Dancers, Goh Ballet, UBC Opera Ensemble, etc. It also affords a number of opportunities for young instrumentalists to perform with the orchestra or to attend VSO-sponsored masterclasses by world-renowned artists. Each year the VSO also holds the Jean Coulthard Readings in which the Vancouver Symphony performs the work of five emerging B.C. composers. 2. Briefly describe how your organization provides region-wide services in the context of the following objectives a. cultural tourism b. regional touring c. strengthened information and awareness services throughout the region Cultural Tourism: The Vancouver Symphony Marketing Department works with many of the tourism boards throughout the Lower mainland providing them with various materials they can use to promote the arts within their municipality and to their visitors. The VSO also advertises in tourism Vancouver, Tourism BC and Where magazines. The VSOs Group Sales Manager and Community Engagement Coordinator work with various churches, community groups and corporate social conveners throughout Metro Vancouver. BC Ferries information booths are stocked with Vancouver Symphony brochures, and the Community Engagement Coordinator provides a liaison with the Concierges Association and specific hotels throughout the Lower Mainland. In addition, the Community Engagement Coordinator has worked to make inroads into many communities throughout the region, promoting not only the VSOs Orpheum activities, but the concerts in Surrey, North Vancouver, West Vancouver, South Delta, Burnaby, New Westminster and Port Coquitlam as well. The Community Engagement Coordinator also works with many different cultural communities throughout the Lower Mainland, as well as with students on campuses throughout the Lower Mainland. Regional Touring: The VSO performs close to 40 concerts annually in seven municipalities outside of City of Vancouver. These concerts appeal to a wide variety of audiences and include classical concerts, holiday concerts, concerts for children, and collaborations with young musicians. See details below. Strengthened Information and Awareness Services throughout the Region: Posters, brochures and flyers promoting the VSOs entire season are distributed throughout the Library system which includes libraries as far as Aldergrove. In addition the VSO places advertisements for many of our concerts in the community newspapers around the Lower Mainland. A network of volunteers has been cultivated to assist with material distribution and grassroots marketing in all the communities mentioned above, and a growing network of Student Ambassadors has taken shape, in order to promote the outstanding access available to the VSO available to students throughout the region. The Vancouver Symphony is a member of the Alliance for Arts and Culture and meets on a regular basis with colleagues in the Arts Community to share information. The Vancouver Symphony Education Advisory Committee includes music educators from various school districts. In which other Metro Vancouver municipalities do these activities take place if offered outside your home municipality?

North Vancouver – Centennial Theatre: North Shore Classics – a three-concert series of classical music, plus two traditional Christmas concerts, and a Joint Concert – a VSO performance with the North Shore Honours Band and/or Strings.

Surrey – Bell Centre: Surrey Nights – a three-concert series of classical music, plus two traditional Christmas concerts and a special concert.

Delta - South Delta Baptist Church: two traditional Christmas concerts.

Burnaby: Burnaby Clef Competition – young musicians that are winners of the competition perform with the orchestra at the Michael J. fox Theatre, two traditional Christmas concerts at Michael J. Fox Theatre, Deer Lake Park – a free outdoor concert performed in the summer to an audience of 6,000 people.

West Vancouver – Kay Meeke Theatre: two traditional Christmas concerts.

UBC – Chan Centre for the Performing Arts Bach and Beyond – a series of ten concerts focusing on music of the Baroque era.

Port Coquitlam - Terry Fox Theatre: Tiny Tots - series of eight concerts for preschoolers.

New Westminster - Massey Theatre: a special concert - The Four Seasons. 3. What proportion of your annual budget is, or will be allocated to, your organizations region-wide services or programs?

The cost of performing the concerts and the regional marketing program outlined above amounts to approximately $2,575,000, 21% of our annual operating budget.

4. What was your total audience or patronage over the past year? What proportion is from outside your home municipality but within Metro Vancouver? Briefly explain how you track this information.

In the 2008/2009 season the Vancouver Symphonys total audience was 219,600 of which 59% is from outside the municipality of Vancouver ( See details attached). The VSO has a very extensive database in which it keeps track of all ticket buyers and donors during the current and prior years, and we are proud of the fact we draw such a large audience from outside of Vancouver. 5. What are your organizations objectives for audience development in the region? How does your existing or proposed program advance those objectives?

The Vancouver Symphony focuses on audience development through several different initiatives. We maintain extensive educational programs to introduce children and young adults to symphonic music. These include: elementary school concerts - 14 concerts annually for students Kindergarten to grade 7, VSO "Kids Koncerts", Symphonic Encounters - open rehearsal program for secondary students, VSO Access Pass, clinics masterclasses with VSO guest artists, joint concerts with the North Vancouver Band or Honour Strings and the Vancouver Youth Symphony, Jean Coulthard Readings - gives emerging BC composers a opportunity to have their work read by the VSO and to receive invaluable feed back hearing their works performed live by a professional orchestra, Meet the Maestro - Maestro Tovey visits numerous primary and secondary schools in Vancouver and the surrounding communities giving talks on music to the students, meets with teachers, conducts student ensembles, etc., Adult Music Appreciation - series of 5 evenings held at Tom Lee Music where Maestro Tovey or a member of the orchestra talks to the audience for an hour, Charitable Assistance Program - each year the VSO donates over 200 tickets to charitable organizations, Tiny Tots - series for preschoolers, VSO Connects - program where musicians visit 6 elementary and 6 high schools in 6 different school districts several times a year. In addition to these outstanding educational and community outreach initiatives, as noted earlier, the VSO presents concerts in no fewer than eleven different locations throughout the Lower Mainland annually. In four of these locations, the Centennial Theatre in North Vancouver, Bell Centre in Surrey, Roundhouse Community Centre in Downtown Vancouver, and Chan Centre at the University of British Columbia, we present series of three to ten concerts annually. People who would never consider traveling to downtown Vancouver for a performance often attend these concerts.

6. How do you plan to use the Metro Vancouver Cultural Grant in the current fiscal year?

We would use the Metro Vancouver Grant received in the current fiscal year to assist with covering the costs of performances in venues outside of Vancouver, our home municipality. We are extremely appreciative to receive a grant from Metro Vancouver and were very surprised to receive a 60% reduction in funding last year. Yes, we are a large orgaization with many sources of revenue. The annual grant from Metro Vancouver has always been an important component of our revenue streams. Considering the number of people we serve in total, and outside of our home municipality, we respectfully request our grant level be reinstated to the $36,000 figure where it had been for over ten years. Conditions and Si • nature

1. Grant recipients must acknowledge the support of Metro Vancouver on all promotional materials related to the funded program.

2. Grant funds must be spent in the organizations fiscal year for which the application is made.

3. Organizations making significant changes to the information provided in this application must discuss such changes with Metro Vancouver staff prior to implementation.

4. If the program(s) proposed in the organizations application is/are not commenced or completed, and there remains regional funds on hand; or if the program is completed without requiring the full use of regional funds, the Board directs that the outstanding funds be returned to Metro Vancouver through the Finance Department.

5. Information provided in the operating grant application may be subject to disclosure under the BC Freedom of Information and Protection of Privacy Act.

Signature of senior staff person authorized to prepare form:

Jeff Alexander, President CEO 3 Name Title Signature of of the Board of Directors: Arthur Willms, Chair, Board of Directors Name Title

By signing this form, we do solemnly declare that, to the best of our knowledge, the information given in our application is complete and true in every respect.

DEADLINEFORSUBMISSION Mail or deliver two completed copies of the application form to the following location by Friday, July 24, 2009, 4:00 pm Metro Vancouver, Cultural Grants, Corporate Relations Department, 4330 Kingsway, Burnaby, BC V5H 4G8

004650889 The Vancouver Symphony Society Board of Directors 2009

• Dr. Peter Chung Executive Chairman, Eminata Group

• Dave Cunningham VP Government Relations, Telus

• Colin ERB VSS Board Treasurer Incorporated Partner, Deloitte Touche LLP

• Charles (Chuck) Filewych Managing Director for BC, Accenture

• David T. Howard Chair, Angiotech Pharmaceuticals Inc.

• Joan Chambers Partner, Blake, Cassels and Graydon LLP

• John Icke President COO, Longview Capital Partners

• Olga I lich President Suncor Development Corporation

• Lindsay Hall Executive Vice-President CFO, Goldcorp Inc.

• Gordon Johnson Partner, Borden Ladner Gervais LLP

• Hanif Juljiani President CEO, The portables

• Hein Poulus, Q.C. VSS Board Vice-Chair Partner, Stikeman Elliott

• Michael E. Riley, C.A. Corporate Director Partner, Ernst Young LLP

• Patricia Shields Member-at-Large Education Consultant • Robert Sunter CBC Regional Director of Radio for BC

• George Taylor VSS Board Secretary

• Arthur H. Willms VSS Board Chair President, Westcoast Energy

• Musician Representatives David Brown Bass Chair, Orchestra Players Committee

• Vern Griffiths Principal Percussionist Chair, Artistic Advisory Committee Financial Statements of

VANCOUVER SYMPHONY SOCIETY

Year ended June 30, 2008 KPMG LLP Telephone 604-691-3000 Chartered Accountants Fax 604-691-3031 PO Box 10426 777 Dunsmuir Street Internet www.kpmg.ca Vancouver BC V7Y 1K3 Canada

AUDITORS' REPORT

To the Members of Vancouver Symphony Society

We have audited the balance sheet of the Vancouver Symphony Society as at June 30, 2008 and the statements of revenue and expenses, changes in net assets and cash flows for the year then ended. These financial statements are the responsibility of the Societys management. Our responsibility is to express an opinion on these financial statements based on our audit.

Except as explained in the following paragraph, we conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we plan and perform an audit to obtain reasonable assurance whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.

In common with many charitable organizations, the Society derives a portion of its revenue in the form of voluntary contributions from fundraising, the completeness of which is not susceptible to satisfactory audit verification. Accordingly, our verification of this revenue was limited to the amounts recorded in the records of the Society, and we were not able to determine whether any adjustments might be necessary to fundraising revenue, excess of revenue over expenses, assets and deficiency in net assets.

In our opinion, except for the affect of adjustments, if any, which we might have determined to be necessary had we been able to satisfy ourselves concerning the completeness of the voluntary contributions from fundraising referred to in the preceding paragraph, these financial statements present fairly, in all material respects, the financial position of the Society as at June 30, 2008 and the results of its operations and its cash flows for the year then ended in accordance with Canadian generally accepted accounting principles. As required by the Society Act (British Columbia), we report that, in our opinion, these principles have been applied on a basis consistent with that of the preceding year. ///911.6 ZhP

Chartered Accountants

Vancouver, Canada September 12, 2008

KPMG LLP, a Canadian limited liability partnership is the Canadian member firm of KPMG International, a Swiss cooperative.

VANCOUVER SYMPHONY SOCIETY Balance Sheet

June 30, 2008, with comparative figures for 2007 2008 2007 (restated - note 5) Assets

Current assets: Cash $ 697,048 $ 587,903 Term deposits 8,626 Accounts receivable 440,053 413,714 Due from Foundations (note 6) 222,653 189,849 Inventory 41,328 42,126 Prepaid expenses 504,315 537,794 1,905,397 1,780,012

Capital assets (note 7) 771,025 614,029 Charitable remainder trust (note 8) 137,000 137,000

$ 2,813,422 $ 2,531,041

Liabilities, Deferred Contributions and Deficiency in Net Assets

Current liabilities: Accounts payable and accrued liabilities $ 519,928 $ 449,277 Deferred revenue (note 9) 2,411,738 2,490,427 Current portion of long-term debt (note 10) 42,500 65,000 2,974,166 3,004,704

Long-term debt (note 10) 42,500

Deferred capital contributions (note 11) 357,039 286,582

Deferred contribution relating to charitable remainder trust (note 8) 137,000 137,000

Deficiency in net assets: Net assets invested in capital assets 413,986 327,447 Unrestricted deficiency (1,068,769) (1,267,192) (654,783) (939,745)

Going concern (note 2) Commitments (note 13)

$ 2,813,422 $ 2,531,041

See accompanying not to financial statements.

Approved on beh

Director Director VANCOUVER SYMPHONY SOCIETY Statement of Revenue and Expenses

Year ended June 30, 2008, with comparative figures for 2007

2008 (Y0 2007 % (restated - note 5) Revenue (schedule 1): Concert $ 4,508,073 37 $ 4,459,503 39 Endowments (note 6(a)) 323,178 3 312,493 3 Fundraising (note 6(b)) 3,465,688 28 3,262,417 29 Gifts from other charities and bequests 264,533 2 230,605 1 Public sector 3,751,475 30 3,170,440 28 Amortization of deferred capital contributions (note 11) 43,631 38,159 - 12,356, 100 11,473,617 100 Expenses (schedule 2): Concert 9,992,796 83 9,511,336 84 Administrative, office premises and fundraising 2,078,820 17 1,795,688 16 12,071,616 100 11,307,024 100

Excess of revenue over expenses from operations 284,962 166,593 Contributions received for the purpose of deficit reduction 10,000

Excess of revenue over expenses for the year $ 284,962 $ 176,593

Statement of Changes in Net Assets

Years ended June 30, 2008 and 2007

Invested in capital 2008 2007 assets Unrestricted Total Total (restated - note 5) Net assets (deficiency), as previously reported $ 327,447 $(1,294,580) $ (967,133) $(1,116,338) Prior period adjustment (note 5) 27,388 27,388 -

Net assets (deficiency), beginning of year, as restated 327,447 (1,267,192) (939,745) (1,116,338) Excess (deficiency) of revenue over expenses (38,487) 323,449 284,962 176,593 Capital asset additions net of contributions therefore 125,026 (125,026)

Net assets (deficiency), end of year $ 413,986 $(1,068,769) $ (654,783) $ (939,745)

See accompanying notes to financial statements.

2 VANCOUVER SYMPHONY SOCIETY Statement of Cash Flows

Year ended June 30, 2008, with comparative figures for 2007

2008 2007 (restated - note 5) Cash provided from (used in):

Operations: Excess of revenue over expenses $ 284,962 $ 176,593 Items not involving cash: Amortization of deferred contributions related to capital assets (43,631) (38,159) Depreciation of capital assets 82,118 62,646 Changes in non-cash operating working capital (32,904) (22) 290,545 201,058

Financing: Repayment of long-term debt (65,000) (90,000) Contributions related to capital assets 114,088 92,948 Other long-term asset 9,000 49,088 11,948

Investments: Decrease in term deposits 8,626 14,368 Capital asset additions (239,114) (262,732) (230,488) (248,364)

Increase (decrease) in cash 109,145 (35,358)

Cash, beginning of year 587,903 623,261

Cash, end of year $ 697,048 $ 587,903

See accompanying notes to financial statements.

3 VANCOUVER SYMPHONY SOCIETY Notes to Financial Statements

Year ended June 30, 2008

Purpose of the Society:

The Vancouver Symphony Society (the "Society") operates the third largest major symphony orchestra in Canada. The Society is incorporated under the Society Act of British Columbia and is registered as a charitable organization under the Canadian Income Tax Act. As such, the Society is exempt from income taxes and is able to issue donation receipts for income tax purposes.

2. Going concern: These financial statements have been prepared on a going concern basis in accordance with Canadian generally accepted accounting principles. The going concern basis assumes that the Society will continue in operation for the foreseeable future and be able to realize its assets and settle its liabilities and commitments in the normal course of business. While the Society experienced a significant deficiency of revenue over expenses and negative cash flow from operations in 2003, 2002, and 2001, and as at June 30, 2008 had a deficiency in net assets of approximately $655,000 and a working capital deficiency of approximately $1.1 million, the Society generated cash flow from operations before changes in non-cash operating working capital during 2008, 2007, 2006, 2005 and 2004, which allowed it during that time to reduce the deficiency in net assets by approximately $1.1 million and the working capital deficiency by approximately $0.5 million. The ability of the Society to continue as a going concern and to realize the carrying value of its assets and settle its liabilities and commitments when due is dependent on the successful achievement of its ongoing business plan, which will allow the Society to develop and implement a longer-term strategy to deal with its deficiency in net assets.

The financial statements do not reflect adjustments that would be necessary if the going concern assumption was not appropriate. If the going concern basis was not appropriate for these financial statements, then adjustments would be necessary to the carrying value of assets and liabilities as of June 30, 2008, and to reported expenses and excess of revenue over expenses for the year then ended.

3. Significant accounting policies:

(a) Inventory:

Inventory of saleable goods is carried at the lower of average cost and estimated net realizable value.

4 VANCOUVER SYMPHONY SOCIETY Notes to Financial Statements

Year ended June 30, 2008

3. Significant accounting policies (continued):

(b) Capital assets:

Purchased capital assets are recorded at cost. Contributed capital assets are recorded at fair value at the date of contribution. Depreciation on the bases noted below is provided on the cost of capital assets over their estimated useful lives at the following annual rates: Assets Basis Rate

Computer equipment Straight-line 20% Furniture and equipment Declining balance 20% Leasehold improvements Straight-line 10% Music library Straight-line 5% Ticketing System Straight-line 10%

Deferred contributions relating to capital assets are amortized to revenue on the same basis as the amortization of related capital assets.

(c) Prepaid expenses:

Expenses associated with the following performance season are included in prepaid expenses and matched with recognition of the related revenue.

(d) Revenue recognition:

The Society follows the deferral method of accounting for fundraising contributions.

Revenues from ticket sales, corporate concert sponsorships and contract fees are recorded upon receipt as deferred revenue until the date of the related performance(s).

Unrestricted contributions are recognized as revenue when received or receivable if the amount to be received can be reasonably established and collection is reasonably assured.

Externally restricted contributions are recognized as revenue in the year in which the related expenses are recognized. Contributions restricted for the purchase of capital assets are deferred and amortized to revenue on the same basis as the related assets are depreciated.

Pledges are recorded as revenue when signed pledge documents are received. Allowances are provided for amounts estimated to be uncollectible.

Grants are recorded as revenue over the period to which the specific grant relates.

(e) Donated services and in-kind grants:

The following donated services and in-kind grants are recorded at their estimated fair value: (1) grants equal to the theatre rent expense and office rent expense from the City of Vancouver for the use of the Orpheum Theatre and offices at 601 Smithe Street, Vancouver; and (ii) marketing donations in the form of no-charge advertising included in publicity and promotion expense and annual giving campaign revenue.

5 VANCOUVER SYMPHONY SOCIETY Notes to Financial Statements

Year ended June 30, 2008

3. Significant accounting policies (continued): (e) Donated services and in-kind grants (continued): Volunteers contribute their time to assist the Society in carrying out its service delivery requirements. Because of the difficulty of determining their fair value, these contributed services are not recognized in the financial statements. (f) Use of estimates: The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the period. Actual results could differ from those estimates.

4. Changes in accounting policies: (a) Financial instrument standards: On July 1, 2007, the Society adopted the financial instrument standards issued by the Canadian Institute of Chartered Accountants ("CICA"): Handbook Section 3855, Financial Instruments - Recognition and Measurement, Handbook Section 3865, Hedges and Handbook Section 3861, Financial Instruments - Disclosure and Presentation. The Society adopted these standards retrospectively without restatement and, as such, comparative amounts for prior periods have not been restated. Under these standards, financial assets are classified as one of the following: held-for-trading, available-for-sale, loans and receivables or held-to-maturity investments. Financial liabilities are classified as held-for-trading or other liabilities. Held-for-trading financial assets and liabilities are measured at fair value with gains and losses recognized in the statement of revenue and expenses. Held-to-maturity investments, loans and receivables and other financial liabilities are measured at amortized cost. Available-for-sale financial assets are measured at fair value with gains and losses deferred until realized. Derivatives, including embedded derivatives, are generally classified as held-for-trading. The new standards permit designation of financial instruments as held-for-trading upon initial recognition. This designation requires that the fair value of the financial instrument be reliably measured.

6 VANCOUVER SYMPHONY SOCIETY Notes to Financial Statements

Year ended June 30, 2008

4. Changes in accounting policies (continued):

(b) Impact of adoption:

Upon adoption of the financial instrument standards, the Society classified cash and term deposits and charitable remainder trust as held-for trading, accounts receivable and due from Foundation as loans and receivables and accounts payable and long-term debt as other liabilities.

Transaction costs are expensed as incurred on financial instruments classified as other than held-for-trading.

Opening net assets was not effected by the adoption of these standards.

(c) Future changes in accounting policies: In December 2006, the CICA issued Handbook Section 3862, Financial Instruments - Disclosures and Handbook Section 3863, Financial Instruments - Presentation. These standards will replace Handbook Section 3861, revising and enhancing disclosure requirements. These new sections increase emphasis on disclosure about the nature and extent of risks arising from financial instruments and how those risks are managed. The Society will begin application of these sections effective July 1, 2008.

5. Prior period adjustment:

In 2008, the Society identified that revenue previously disclosed in the June 30, 2007 financial statements was understated, due to a facility fee overpayment to Civic Theatres of $27,388. The financial statements have been retroactively restated to increase amounts previously reported in 2007 for revenue, offset by a decrease in accounts payable and accrued liabilities and the deficit at June 30, 2007.

6. Related party and in-kind transactions:

(a) Vancouver Symphony Foundation (the "VSF") and the Orpheum Theatre Foundation (the "OTF"):

(i) VSF: Income from the VSF totaling $183,435 (2007 -$183,434) is included with endowments revenue. The VSF holds and invests donations. A portion of the income generated from these donations is distributed to the Society, but the capital of the VSF is not an asset of the Society. The Board of Trustees of the VSF is elected by the membership of the VSF, which comprises directors of the Society and trustees of the VSF. Directors of the Society may also be trustees of the VSF, but may not comprise a majority of the VSF Board. At June 30, 2008, total assets of the VSF were $7,354,495 (2007 - $5,678,404) and the amount due to the Society was $184,435 (2007 - $184,434). VANCOUVER SYMPHONY SOCIETY Notes to Financial Statements

Year ended June 30, 2008

6. Related party and in-kind transactions (continued): (a) Vancouver Symphony Foundation (the "VSF") and the Orpheum Theatre Foundation (the "OTF") (continued):

(1) VSF (continued): During the year ended June 30, 2007, the Board approved a policy whereby, as long as the Society has a deficiency in net assets, unrestricted bequests to the "Vancouver Symphony" in excess of $25,000 each will be allocated as to two-thirds to the VSF, with the Society recording the net one-third in gifts from estates and bequests. Amounts allocated to the VSF and netted against the Societys revenue from estates and bequests during the current year in accordance with this policy totaled approximately $20,500. (ii) OTF: The OTF administers various fundraising projects for the principal users of the Orpheum Theatre. The Board of Trustees of the OTF is appointed by the beneficiary societies, with the Society appointing three of five trustees. At June 30, 2008, total assets of the OTF were $8,192 (2007 - $8,188) and the amount due to the Society was $5,415 (2007 - $5,415). Amounts due to the Society by the VSF and the OTF are interest-free, unsecured and have no fixed terms of payment.

(b) Contributions from directors: Included in fundraising revenue is $96,705 (2007 - $92,100) donated by the directors of the Society as part of the annual giving campaign. At June 30, 2008, donations from directors of $1,000 (2007 - $8,625) are included in accounts receivable.

(c) In-kind grants and donations: Annual giving campaign revenue includes $670,625 (2007 - $591,375) in respect of in-kind advertising that is recorded as publicity and promotion expense. Public sector revenue from the City of Vancouver totaling $789,675 (2007 - $884,640) represents in-kind grants that are recorded as either theatre rent or office premises rent, as appropriate. Fundraising sponsorship revenue includes $40,100 (2007 - $38,567) representing in-kind donations of other goods and services.

8 VANCOUVER SYMPHONY SOCIETY Notes to Financial Statements

Year ended June 30, 2008

7. Capital assets:

2008 2007 Accumulated Net book Net book Cost depreciation value value

Computer equipment $ 75,532 $ 37,697 $ 37,835 $ 32,858 Furniture and equipment 583,705 431,467 152,238 158,366 Leasehold improvements 98,197 51,145 47,052 44,277 Music library 177,379 54,188 123,191 125,743 Ticket system (2007 - under development 432,627 21,918 410,709 252,785

$ 1,367,442 $ 596,415 $ 771,025 $ 614,029

Included in the cost of capital assets is $205,533 (2007 - $205,533) of contributed equipment. The net book value of this contributed equipment as at June 30, 2008 is $71,577 (2007 - $89,471).

8. Charitable remainder trust:

During the 1999 fiscal year, a donor established a charitable remainder trust under which the Society is entitled to 20% of the capital. The carrying value of this asset, which represents the actuarially determined present value of the Societys share of the trust capital as at June 30, 2008, will also be recorded as a deferred contribution until realized.

9. Deferred revenue:

2008 2007

Ticket sales $ 1,687,268 $ 1,748,851 Canada Council: Operating 561,250 Supplemental Operating Funding Initiative 293,300 - Province of British Columbia - Olympic Arts Fund 45,900 91,700 Sponsorships 115,168 56,626 Contributions restricted to purchase of equipment 10,002 15,500 Miscellaneous 100 16,500 Asia Tour Funding (note 12) 260,000 -

$ 2,411,738 $ 2,490,427

9 VANCOUVER SYMPHONY SOCIETY Notes to Financial Statements

Year ended June 30, 2008

10. Long-term debt:

The long-term debt is payable to a company controlled by a Director of the Society. The debt matures June 1, 2009 and was for an original principal amount of $375,000. The debt is repayable over the term of the loan with principal and interest (5% per annum) payments due on each June Land December 1.

As security for repayment of the long-term debt, the Society assigned its right, title and benefit to a five year income stream commitment from the VSF.

11. Deferred capital contributions:

Deferred contributions related to capital assets represent the unamortized amounts of contributed capital assets and contributions used to purchase equipment. The changes in the deferred contributions balance for the year are as follows:

2008 2007

Balance, beginning of year $ 286,582 $ 231,793 Contributions for the purchase of equipment 114,088 92,948 Amounts amortized to revenue (43,631) (38,159)

Balance, end of year $ 357,039 $ 286,582

12. Gaming revenue:

Included in special projects fundraising revenue is $319,639 and $48,000 (2007 - $337,146 and $48,000) earned from lottery and direct charitable access, respectively.

Included in deferred revenue Asia Tour Funding totaling $250,000 from direct charitable access to be used to help fund the Asia Tour in the 2008/2009 season.

13. Commitments:

Related to licensing of ticketing and development software in 2006, the Society signed a membership agreement with Tessitura Network, Inc. on August 29, 2007, which includes a commitment to pay an annual fee of US$22,000 commencing October 1, 2007.

At the year end, the Society had capital commitments relating to the development of the ticketing system totaling $44,990 (2007 - nil).

10 VANCOUVER SYMPHONY SOCIETY Notes to Financial Statements

Year ended June 30, 2008

14. Financial instruments:

(a) Fair values of financial instruments:

The carrying value of cash, term deposits, accounts receivable, due from Foundations, Charitable remainder trust, accounts payable and long-term debt approximate their fair values due to the relative short periods to maturity or expected settlement date of the financial instruments.

(b) Credit risk:

The Society is subject to credit risk in the ordinary course of business through its accounts receivables. To mitigate this risk, management proactively manages the collection of its accounts and has no significant concentration of credit risk.

11 VANCOUVER SYMPHONY SOCIETY Schedule of Revenue Schedule 1

Year ended June 30, 2008, with comparative figures for 2007

2008 2007 (restated - note 5) Concert revenue: Ticket sales: Series $ 3,202,964 $ 3,153,165 Specials 964,349 965,736 Sold services and other events 281,123 286,719 Interest income on advance ticket sales 59,637 53,883 4,508,073 4,459,503

Revenue from other sources: Endowments: Vancouver Symphony Foundation (note 6(a)) 183,435 183,434 Vancouver Foundation 127,148 117,931 Other 12,595 11,128 323,178 312,493

Fundraising: Annual giving campaign (notes 6(b) and(c)) 1,778,028 1,528,999 Special projects (note 12) 1,095,660 1,157,878 Sponsorships (note 6(c)) 592,000 575,540 3,465,688 3,262,417

Gifts from other charities and bequests: Foundations 180,454 77,500 Estates and bequests (note 6(a)) 84,079 153,105 264,533 230,605

Public sector: Canada Council: Operating 1,158,800 1,142,500 Supplemental Operating Funding Initiative 504,700 Province of British Columbia 1,085,800 1,080,800 City of Vancouver (note 6(c)) 939,675 884,640 Greater Vancouver Regional District 36,000 36,000 City of Burnaby 26,500 26,500 3,751,475 3,170,440

Amortization of deferred capital contributions (note 11) 43,631 38,159 7,848,505 7,014,114

Total revenue $ 12,356,578 $ 11,473,617

12 VANCOUVER SYMPHONY SOCIETY Schedule of Expenses Schedule 2

Year ended June 30, 2008, with comparative figures for 2007

2008 2007

Concert expenses: Conductors and soloists $ 1,364,140 $ 1,430,731 Musicians 3,898,302 3,670,792 Theatre rent (note 6(c)) 880,311 840,060 Stage and production 746,407 673,438 Summer events, education and sold services 245,525 255,373 Publicity and promotion (note 6(c)) 2,858,111 2,640,942 9,992,796 9,511,336

Administrative, office premises and fundraising expenses: Administrative: Administrative salaries and benefits 508,337 457,881 Data processing 27,152 22,443 Depreciation 82,118 62,646 Insurance 37,923 37,450 Legal and audit 85,561 26,878 Office and sundry 247,017 171,844 988,108 779,142

Office premises: Rent (note 6(c)) 100,000 100,000 Repairs and maintenance 13,097 15,104 113,097 115,104

Fundraising: Salaries 429,997 338,673 Campaign expenses 124,696 132,130 Special projects 422,922 430,639 977,615 901,442

2,078,820 1,795,688

Total expenses $ 12,071,616 $ 11,307,024

13 Vancouver Symphony Society 2009/2010 Budget Approved by the Board June 10, 2009

Budget 09/10 EARNED REVENUE TICKET SALES Subscriptions 2,300,000 Single Tickets Main Series 1,050,000 Education Revenue 150,000 Single Tickets Specials 1,107,000 Additonal Specials 200,000 Tessitura Fees 199,000 Total Ticket Sales 5,006,000

OTHER Sold Services/Runouts 84,500 Gift Shop 145,000 Allegro 70,000 Screen Rental Electronic Media 5,000 Naxos Revenue 2,000 Interest Misc. 25,000 VANOC Cultural Olympiad 100,000 VSO Music School 125,000 Total Other 556,500

Total Earned 5,562,500

UNEARNED FUNDRAISING Patrons Campaign 675,000 Friends Campaign 265,000 Corporate Sponsorships 670,000 Corporate Donations 75,000 Special Events (gross) 955,000 Special Board Fundraising 100,000 Other Revenue 15,000 Marketing Donation Revenue 670,000 Total Individuals Corporations 3,425,000

ENDOWMENT/FOUNDATIONS Endowment -VSF Van Fdn 313,600 Other Foundations Bequests 127,500 Total Endowment/Foundations 441,100

GOVERNMENT Federal Annual 1,372,500 Federal Supplemental Provincial 1,245,000 Municipal 1,025,100 Metro Vancouver 36,000 Burnaby 38,000 Olympic Fund Total Government 3,716,600

Total Unearned 7,582,700

13,145,200 Special Gifts

Total Revenue 13,145,200 Vancouver Symphony Society 2009/2010 Budget

Budget 09/10 PERSONNEL (INC. BENEFITS) Contract Musicians 3,970,900 Extra Musicians 400,300 Conductors Soloists Main Series 1,297,700 Specials Guest Artists 400,700 Additional Specials Expense 100,000 Adminstrative Staff 2,127,600 Total Personnel 8,297,200

PRODUCTION Stage Crew 193,600 Theatre Rent 962,600 Summer 32,600 Sold Services/Runouts 15,200 Music Royalties 97,900 Other 195,000 Electronic Media Education 74,000 Total Production 1,570,900

MARKETING Subscription Sales 540,000 Single Ticket Sales 360,000 Specials Sales 135,000 Customer Service 16,000 Telemarketing 95,000 Concert Programs - Allegro 110,000 Credit Card Commissions 116,000 Summer 2,500 Other Promotion Overhead 133,000 Promotional Media Ads 670,000 Gift Shop 105,000 Total Marketing 2,282,500

FUNDRAISING Campaign Costs 154,000 Special Events 308,700 Total Fundraising 462,700

GENERAL/ADMIN Administration 312,300 Tessitura 52,300 Education Centre Office Premises 116,500 Other 29,500 Total GA 510,600

Total Expenses 13,123,900

NET SURPLUS/(DEFICIT) 21,300 Vancouver Symphony Orchestra 2007-2012 Strategic Plan Mission Nision/Pillars/Guiding Principles

Vision become Cana t symphony orchestra. What we will be (in 15 -20 years) quality of life in, and brin tige to our ci provinc Mission ntation of high-quality pe noes of classical and What we do of excellent education mmuni program

Pillars onsistOn Focus areas that drive of coke the Vision and Mission

Focus on increasing Continue to create a Maintain consistent, high- Continually monitor and orchestra compensation committed, cohesive, level, and reliable marketing evaluate current programs Guiding number of full time players, aggressive, results-focused programs and audience to ensure viability and and improving the fundraising team services effectiveness Principles professional environment Actions or themes that Set aggressive targets with Utilize technology and Foster relationships with Continue to develop educators administrators enable outcomes clear, concise annual plans innovative marketing to excellent artistic standards to assure success grow and diversify our audience and build customer Continue to increase VSO Maintain focus on market- Continue to grow the loyalty presence in schools based programming endowment fund Identify and establish a Identify, qualify and develop Remain innovative in our Actively steward donor, foothold within new target community engagement presentation philosophy sponsor and government markets opportunities relations Explore touring and summer Continue to improve Continue work toward the performance opportunities Utilize innovative and targeted marketing, creation of The Symphony instructive technology and communications and Centre and the VSO School Play an important role in the training to accomplish branding programs of Music 2010 Winter Olympic Games desired results Create new service and Focused Board recruitment product-based revenue streams VANCOUVER SYMPHONY NUMBER OF TICKETS SOLD BY MUNICIPALITY

08/09 07/08 06/07 MUNICIPALITY # % # 0 # % Burnaby/New Westminster/East to Maple Ridge 33,669 15.3% 34,788 16.7% 36,546 16.4% Richmond/Delta 19,481 8.9% 19,790 9.5% 19,723 8.8% Surrey/White Rock 18,207 8.3% 20,623 9.9% 24,654 11.1% Vancouver (West of Cambie) 68,327 31.1% 61,869 29.7% 60,307 27.0% Vancouver (East of Cambie) 21,414 9.8% 17,290 8.3% 18,027 8.1% West/North Vancouver 33,252 15.1% 33,330 16.0% 37,394 16.8% Other 25,279 11.5% 20,623 9.9% 26,394 11.8%

Total 219,630 100.0% 208,312 100.0% 223,045 100.0%

Note: 59% of our audience lives outside of Vancouver.

VANCOUVER SYMPHONY ATTENDANCE AT SCHOOL CONCERTS BY DISTRICT

Total # of Schools Schools # of SCHOOL DISTRICT Attending in each area Students Abbotsford/Bradner 12 51 628 Burnaby 18 55 1128 Chiliwack/Sardis/Rosedale 12 32 440 Coquitlam/Anmore/Port Coquitlam/Port Moody/loco 26 68 2789 Delta/Ladner 24 36 1064 Langley/Aldergrove/Fort Langley 18 39 1352 Maple Ridge/Albion/Pitt Meadows 11 31 579 Mission 1 24 80 New Westminster 5 17 1088 North Vancouver 19 38 2061 Richmond 18 48 1442 West Vancouver/Bowen Island/Lions Bay 9 17 806 Vancouver 94 140 10279 Surrey/White Rock 41 131 3336 Other 7 99 301

315 826 27373

The VSO reaches another 5,700 children through our Tiny Tots concerts; over 9,000 through our "Kids Koncerts" and 5,000 through a variety of other programs. SUSTAINABLE REGION INITIATIVE TURNING IDEAS INTO ACTION

Metro Vancouver Cultural Grants 2009 Application for Region-Serving Arts and Cultural Organizations

Applicant Information

Name of organization (legally registered name): Vancouver TheatreSports° League

Address: 1 04 -1177 West Broadway, Vancouver, British Columbia

Mailing address if different:

Telephone: 604-738-7013

Fax: 604-738-8013

Email: [email protected]

Website: www.vtsl.com

Contact person, and title, regarding information contained in the grant application:

BC Society Act Number: 5-0019931

Date Registered: February 15, 1985

Federal Registered Charity #: 126177112RR0001

Fiscal year end: February 28th

Grant Request for 2009 fiscal year $ 12,000

Professional Status and Membership

Staff on payroll for Artistic personnel (directors, Administrative, production, previous fiscal year curators, performers, etc.) technical personnel

Full time 1 1

Seasonal full time 0 0

Permanent part time 1 5

Seasonal part time 0 0

Contract 52 9

vancouver Number of society members Voting members (excluding Board) 93

Number of Board members Number of non-Board volunteers 8 80D/100Voluntee s Has your organization prepared a business plan? Yes No q

If yes, in what year was that plan created and last revised? 2005

Please indicate the levels of financial support your organization receives from government:

funding by fiscal year type of 2007 - 2008 financial support 2008 - 2009 Comments Home grants Municipality . directly paid staff salaries or benefits other 2,000 VANOC

Provincial grants 6,000 Cultural Olympiad gaming revenues (lottery, casino, 55,000 55,000

Federal Canada Council

Other 38/09 - CMHC $18,000 23,61 3 24,604 +GST $6,604

Region-wide Leadership and Services Please limit your response to a maximum of 250 words (half a page) per question

1. Describe how your organization provides regional leadership related to its mandate or mission, including what makes your organization unique in the region.

"We are a unique professional theatre organization dedicated to the growth and exploration of exceptional improv- based work for the purpose of challenging and inspiring the community"

The Vancouver TheatreSports League (VTSL) is an international and community leader in improvisational theatre, having won numerous local, national and international awards. As a fiscally responsible organization we manage our finances to accommodate artistic growth and ensure secure employment opportunities for both staff and performers alike. In September 2009, we will be celebrating 29 years, and have established ourselves as one of the largest professional theatre organizations in the Metro Vancouver area. We continue to push the boundaries of our art form and remain an organization with huge growth potential.

One of the key mandates of the organization is to "challenge and inspire the community." Our outreach into the community is exceptionally strong. Through touring and school activities our performers and facilitators serve as excellent resources, introducing thousands of school-age children to the joy of improv. Essential life skills such as active listening, communication, team building and creative thinking are taught through these school/community tours, our improv workshops, and our Corporate Training program (which fosters leadership and innovation skills within the regional business community.) Our main stage performances not only entertain local and visiting audiences, but also provide a platform where performers can explore new techniques and enhance existing improv skills. According to many of our current artists and alumni (such as Ryan Stiles, Colin Mochrie, Ellie Harvie and Nancy Robertson), "TV auditions now demand more improvising" and "VTSL made me unflappable in auditions." In this regard, Vancouver TheatreSports teaches a valuable skill set to anyone aspiring to perform in theatre, television or film. Finally, providing an entry level experience of the performing arts to the "arts novice" makes us an integral part of the local arts community. As our audiences mature, they tend to gravitate to other artistic and cultural events (such as The Fringe Festival, The Arts Club, Bard on the Beach, etc. They grow not just as audience members but as future patrons of the arts.) 2. Briefly describe how your organization provides region-wide services in the context of the following objectives a. cultural tourism b. regional touring c. strengthened information and awareness services throughout the region

a.)VTSL has strategic partnerships with tourism-based organizations including the Granville Island Business Association, Tourism Vancouver and Tourism BC. As tourism is one of our primary target markets, we work with these partners to raise the awareness of the arts in Vancouver. Additionally, we maintain a dialogue with the local hotel concierge and tour groups. We extend our reach by promoting in publications and leveraging advertising opportunities outside of Vancouver proper. b.) VTSL provides educational-based improv performances for all ages of young people from kindergarten right through to Grade 12 in the Metro Vancouver area and throughout the province. We also make, available workshops and affordable community shows. These performances average 75 shows per year. c.)Our Executive Director and members of our management team represent the organization in various boards committees to provide leadership in the community and to promote live theatre in the Metro Vancouver area. The following are some examples of our community participation: Executive Director: Tourism Vancouver Board Member - Arts Culture Representative; Greater Vancouver Professional Theatre Alliance - Past President; Greater Vancouver Professional Theatre for Young Audiences - Board Member, Treasurer Founder; Firehall Arts Centre - Board member, member at large; Rumble Productions - Past President; Pacific Space Centre - Board Member; La Luna Productions - Board Member; See Seven - Project Consultant; Stanley Theatre Society - Executive Officer to the Board; Granville Island Business Community Association - Member. Associate Director: Vancouver International Improv Festival, Canadian Improv Games, Instant Theatre - Artistic Director Member; Marketing Manager: Roundhouse Community Centre - Board Member Outreach Committee Chair; Alliance for the Arts - Marketing Council Co-Chair Workshop Presenter; Out of the Rain Community Art Project - Community/ School Liaison.

In which other Metro Vancouver municipa es do these activ ties take place if offered outside your home municipality?

Our outreach and touring companies serve every region of the Metro Vancouver area.

Our 2009/2010 WinterSports tour features 77 performances booked throughout Metro Vancouver and the Province.

Metro Vancouver municipalities include - Fall 2009 Tour: Vancouver, Abbotsford, Burnaby, Coquitlam, Maple Ridge, Pitt Meadows, Richmond, Surrey and White Rock. Winter 2010 Tour: Vancouver, Abbotsford, Burnaby, Coquitlam, Delta, Maple Ridge, Port Moody and Surrey.

Our Spring Break Theatre Festival also takes our popular Theatre for Young Adults performances to West Vancouver, Burnaby, Surrey and the New Revue Stage on Granville Island. 3. What proportion of your annual budget is, or will be allocated to, your organizations region-wide services or programs?

Approximately 30% of our budget is allocated to developing and delivering region wide programs.

4. What was your total audience or patronage over the past year? What proportion is from outside your home municipality but within Metro Vancouver? Briefly explain how you track this information.

Our total audience over the past year (ended February 28, 2009) was approximately 74,600.

Our audience from Metro Vancouver, excluding Vancouver, during the past year was approximately 37,200 or 50% of our total audience.

These values were determined from the attached table Appendix I, where:

(1) Performances at our home stage on Granville Island were allocated according to our e-newsletter subscriber database, which also includes our subscribers area codes. This database collection is ongoing and updated weekly.

(2) Touring, Special Event and Corporate Training performances and workshops were allocated according to the location of the performance or workshop but do not consider the origin of attendees. Undoubtedly attendees would originate from throughout the Metro Vancouver area.

(3) Workshops on Granville Island were also allocated according to our e-newsletter subscriber database (excluding the people outside of the Metro Vancouver area.)

Appendix I — Audience Demographics/MetroVancouver Area

Our total audience over the past year (ended February 28, 2009) was approximately 74,600.

Our audience from Metro Vancouver, excluding Vancouver, during the past year was approximately 39,100 or 52.4% of our total audience.

These values were determined from the following table, where: (1) Performances at our home stage on Granville Island were allocated according to our e- newsletter subscriber database, which also includes our subscribers' area codes. (See sample attached.) (2) Touring performances and workshops were allocated according to the location of the performance or workshop but do not consider the origin of attendees. (3) Workshops on Granville Island were also allocated according to our e-newsletter subscriber database (excluding the people outside of the Metro Vancouver.)

Outside Vancouver Metro BC BC Total Performances at the New Revue Stage on Granville Island (1) 20,900 I 22,500 I 1,100 1,100 45,600 Touring Performances and Workshops (2) 5,100 10,500 800 16,400 Special Event Customized Performances (1) 4,900 5,300 ! 300 . 300 I 10,800 Corporate Training (2) 200; 0 0 200 Workshops on Granville Island (3) 800 I 800 0 1,600

Total 31,900 39,100 2,200 1,400 74,600 42.8% 52.4% 2.9% 1.9% 100.0% 5. What are your organizations objectives for audience development in the region? How does your existing or proposed program advance those objectives?

Our primary objective is to increase our overall attendance by 10%. This will be accomplished by generating more ancillary revenues that will directly increase our advertising budget. An increase in our advertising budget will be dedicated to greater online marketing efforts (both organic and paid placements,) allowing us to reach our audience where they spend the majority of their time. We will dedicate resources to more extensive database mining, which in turn means great efficiency in the application of our budget. And a paramount strategy to extending our reach includes targeting the Metro Vancouver post-secondary campuses, via paid advertising, promotional sponsorships, and campus publicity. We are also reviewing our various media sponsorships to maximize and leverage our advertising dollars.

School touring plays a key role in long-term audience development. Improvisation is an art form that is accessible and has appeal for all ages. Exposing younger audiences to improv now is an investment into our future audiences. Additionally, our tours contribute to the development of individuals with an interest in supporting a varied array of live cultural events.

Our ongoing participation in initiatives like the Spring B eak Theatre Festival also help us reach young people and their parents.

Advertising and word-of-mouth recommendations of our Workshops, Special Events and Corporate Training programs extend our reach to a new and diverse potential audience base within the Metro Vancouver area.

6. How do you plan to use the Metro Vancouver Cultural Grant in the current fiscal year?

Vancouver TheatreSports League would use the Metro Vancouver Cultural Grant to subsidize the production expenses of our touring shows and workshops in the Metro Vancouver area. These shows go into schools and communities and promote live theatre to all ages of people.

Metro Vancouver Cultural Grant funds would also be allocated to our Main Stage programming (development) and production costs. Currently we perform 10 shows, four nights a week. Our 2009/2010 programming involves the production of eight new and original formats (shows). Conditions and Signature

1. Grant recipients must acknowledge the support of Metro Vancouver on all promotional materials related to the funded program.

2. Grant funds must be spent in the organizations fiscal year for which the application is made.

3. Organizations making significant changes to the information provided in this application must discuss such changes with Metro Vancouver staff prior to implementation.

4. If the program(s) proposed in the organizations application is/are not commenced or completed, and there remains regional funds on hand; or if the program is completed without requiring the full use of regional funds, the Board directs that the outstanding funds be returned to Metro Vancouver through the Finance Department.

7. Information provided in the operating grant application may be subject to disclosure under the BC Freedom of Information and Protection of Privacy Act.

Signature of sear staff per tfi to repar form:

Name Title /174r,e`e7,7"" AC-.01,7C7/%7-74 719 Signature of Chair/President Of the Board of Directors:

A 7i/L L74:: 4) 6° Name Title

By signing this form, we do solemnly declare that, to the best of our knowledge, the information given in our application is complete and true in every respect.

DEADLINEFORSUBMISSION Mail or deliver two completed copies of the application form to the following location by Friday, July 24, 2009, 4:00 pm Metro Vancouver, Cultural Grants, Corporate Relations Department, 4330 Kingsway, Burnaby, BC V5H 4G8

004650889 Thursday July 16, 2009 11:02 AM Page : 1

Vancouver TheatreSports League - Board of Directors

Name: Comments Allan, Bonnie Marketing Consultant - Director at Large

Arca, CA, Gary V. Chief Financial Officer - Board Treasurer

Harris, Harley J. Lawyer - Board Past President

McCann, Doug Management Consultant - Board Vice-President

Oden, Marlie P. Marketing Consultant - Board President

Rocha, John C. Consultant - Board Secretary

Stajkowski, Neil 0. Financial Advisor - Director at Large DRAFT For Discussion Purposes Only 07/02/09 5:00 PM

VANCOUVER THEATRESPORTS LEAGUE

FINANCIAL STATEMENTS

FEBRUARY 28, 2009 llth Floor, 1050 West Fender Street, Vancouver, BC, Canada V6E 357

Tel: 604. 714. 3600 Fax: 604. 714. 3669 Web: manningelliott.com DRAFT For Discussion Purposes Only 07/02/09 5:00 PM

REVIEW ENGAGEMENT REPORT

To the Directors of VANCOUVER THEATRESPORTS LEAGUE

We have reviewed the statement of financial position of VANCOUVER THEATRESPORTS LEAGUE as at February 28, 2009 and the statements of revenue and expenses, changes in fund balances and cash flows for the year then ended. Our review was made in accordance with Canadian generally accepted standards for review engagements and accordingly consisted primarily of enquiry, analytical procedures and discussion related to information supplied to us by the Society.

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

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

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Chartered Accountants

Vancouver, British Columbia

June 17, 2009 11th Floor, 1050 West Fender Street, Vancouver, BC, Canada V6E 3S7

Tel: 604. 714. 3600 Fax: 604. 714. 3669 Web: manningelliott.com DRAFT For Discussion Purposes Only 07/02/09 5:00 PM

REVIEW ENGAGEMENT REPORT

To the Directors of VANCOUVER THEATRESPORTS LEAGUE

We have reviewed the statement of financial position of VANCOUVER THEATRESPORTS LEAGUE as at February 28, 2009 and the statements of revenue and expenses, changes in fund balances and cash flows for the year then ended. Our review was made in accordance with Canadian generally accepted standards for review engagements and accordingly consisted primarily of enquiry, analytical procedures and discussion related to information supplied to us by the Society.

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

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

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Chartered Accountants

Vancouver, British Columbia

June 17, 2009 VANCOUVER THEATRESPORTS LEAGUE DRAFT STATEMENT OF FINANCIAL POSITION For Discussion Purposes Only 07/02/09 5:00 PM (Unaudited)

FEBRUARY 28 2009 2008

General Fund Facility Fund Total Total ASSETS

CURRENT ASSETS Accounts receivable $ 21,651 $ 21,651 $ 13,295 Deferred development costs 264 - 264 1,591 Prepaids and deposits 30,856 30,856 23,828

52,771 52,771 38,714

DUE FROM GENERAL FUND 92,063 92,063 98,169 RESTRICTED CASH (Note 5) 106,801 106,801 83,151 CAPITAL ASSETS (Note 6) 21,506 21,506 27,285

$ 74,277 $ 198,864 $ 273,141 247,319

LIABILITIES

CURRENT LIABILITIES Cheques written in excess of funds on deposit $ 16,925 $ - $ 16,925 $ 9,395 Bank loan (Note 8) 5,000 Accounts payable 90,647 90,647 92,083 Prepaid revenue 7,342 7,342 11,219

114,914 114,914 117,697

DUE TO FACILITY FUND 92,063 92,063 98,169 DEFERRED CAPITAL DONATIONS 9,675 9,675 12,462

216,652 216,652 228,328

COMMITMENTS (Note 9)

FUND BALANCES

Invested in Capital Assets 11,831 11,831 14,823 Facility Fund 198,864 198,864 181,320 Unrestricted (Deficit) (154,206) (154,206) (177,152)

(142,375) 198,864 56,489 18,991

$ 74,277 $ 198,864 $ 273,141 $ 247,319 Approved by the Directors:

Director

Director VANCOUVER THEATRESPORTS LEAGUE DRAFT 07/02/09 5:00 PM STATEMENT OF CHANGES IN FUND BALANCES

(Unaudited) YEAR ENDED FEBRUARY 28 2009 2008

General Fund Facility Fund

Invested in Capital Assets Unrestricted Restricted Total Total

FUND BALANCES AT BEGINNING OF YEAR $ 14,823 $ (177,152) $ 181,320 $ 18,991 $ (20,476)

Excess of revenue over expenses for the year 19,954 17,544 37,498 39,467 Investment in capital assets 5,348 (5,348) Disposal of capital assets (1,297) 1,297 Amortization of capital assets (9,829) 9,829 Amortization of deferred capital donations 4,411 (4,411) Receipt of capital donations (1,625) 1,625

FUND BALANCES AT END OF THE YEAR $$ (154,206) $ 198,864 $ 56,489, $ 18,991 VANCOUVER THEATRESPORTS LEAGUE DRAFT STATEMENT OF REVENUE AND EXPENSES For Discussion Purposes Only

(Unaudited)

YEAR ENDED FEBRUARY 28 2009 2008

General Fund Facility Fund Total Total REVENUE Operating $ 738,596 $ 19,126 $ 757,722 $ 792,877 Grants and sponsorships (Note 7) 200,688 - 200,688 227,046 Gaming 55,000 55,000 55,000 Fund raising 40,814 40,814 39,773 Rental 9,780 - 9,780 9,037 Miscellaneous 6 741 1,651 8,392 6,561

1,051 619 20,777 1,072,396 1,130,294

EXPENSES Actors and technical fees 321,634 - 321,634 341,654 Fees, salaries and benefits 288,230 - 288,230 295,722 Advertising and promotion 194,234 194,234 213,971 Rent 100,587 100,587 98,693 Production costs 40,520 40,520 56,842

Box office and concession costs 41,305 3,233 44,538 38,873 Office and telephone 11,827 - 11,827 11,738 Theatre maintenance 11,096 - 11,096 11,529 Amortization of capital assets 9,829 - 9,829 7,116 Insurance 5,056 5,056 4,370

Professional fees 4,280 - 4,280 3,939 Professional development 1,361 1,361 2,873 Interest and bank charges 1,092 1,092 2,312 Fund raising costs 31 31 29 Design fees - - 106

1,031,082 3,233 1,034,315 1,089,767 EXCESS OF REVENUE OVER EXPENSES FROM OPERATIONS 20,537 17,544 38,081 40,527

LOSS ON DISPOSAL OF CAPITAL ASSETS (583) (583) (1,060)

EXCESS OF REVENUE OVER EXPENSES FOR THE YEAR $ 19,954 $ 17,544 $ 37,498 $ 39,467 VANCOUVER THEATRESPORTS LEAGUE DRAFT STATEMENT OF CASH FLOWS For Discussion Purposes Only

07/02/09 5:00 PM (Unaudited)

YEAR ENDED FEBRUARY 28 2009 2008

General Fund Facility Fund Total Total CASH FLOWS FROM OPERATING ACTIVITIES Cash receipts from customers $ 1,034,975 $ 19,126 $ 1,054,101 $ 1,127,559 Cash paid to suppliers, employees and contractors (1,025,673) (3,233) (1,028,906) (1,073,659) Interest paid (1..092) (1.092) (2,312)

8,210 15,893 24,103 51,588 CASH FLOWS FROM INVESTING ACTIVITIES Purchase of capital assets (5,348) (5,348) (21,430) Proceeds from disposal of capital assets 714 714 Advance from (to) the Facility Fund (6,106) 6,106 - Interest earned 1,651 1,651 2,573

(10,740) 7,757 (2,983) (18,857) CASH FLOWS FROM FINANCING ACTIVITIES Receipt (repayment) of bank loans (5,000) (5,000) (30,000)

CHANGE IN CASH AND EQUIVALENTS DURING THE YEAR (7,530) , 23,650 16,120 2,731

CASH AND EQUIVALENTS AT BEGINNING OF YEAR (9,395) 83,151 73,756 71,025

CASH AND EQUIVALENTS AT END OF YEAR $ (16,925) $ 106,801 $ 89,876 $ 73,756 VANCOUVER THEATRESPORTS LEAGUE DRAFT NOTES TO FINANCIAL STATEMENTS For Discussion Purposes Only 07/02/09 5:00 PM (Unaudited)

FEBRUARY 28, 2009

1. PURPOSE OF ORGANIZATION

The Vancouver TheatreSports League was formed in 1985 as a unique professional theatre organization, which is dedicated to the growth and exploration of exceptional improv-based work for the purpose of challenging and inspiring the community.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

a) Fund accounting

The General Fund reports the revenue and expenses related to the general operations of the Society.

The Facility Fund represents funds received which are to be used to undertake capital projects including, but not limited to, the establishment of a new home for the Society.

b) Revenue recognition

The Society follows the deferral method of accounting for revenue. Restricted revenue is recognized in the year in which the related expenses are incurred. Unrestricted revenue is recognized when received or receivable if the amount to be received can be reasonably estimated and collection is reasonably assured.

c) Amortization

Capital assets are recorded at historical cost and amortized over their estimated useful lives applying the following annual rates:

Office and theatre equipment 20% declining balance method Computer equipment 40/55% declining balance method

The Society records one-half of the annual amortization rate in the year that an asset is purchased and in the year that it is disposed.

d) Long-lived assets

The Society monitors the recoverability of long-lived assets, based on factors such as current market value and future asset utilization. The Societys policy is to record an impairment loss when it is determined that the carrying amount of the assets may not be recoverable. To February 28, 2009, no impairment losses have been recorded.

e) Deferred capital donations

Deferred capital donations are comprised of capital assets donated by various organizations and individuals. These are being amortized on an annual basis in an amount equivalent to the amortization taken on the related assets. VANCOUVER THEATRESPORTS LEAGUE DRAFT NOTES TO FINANCIAL STATEMENTS For Discussion Purposes Only 07/02/09 5:00 PM (Unaudited)

FEBRUARY 28, 2009

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) f) Deferred development costs

These amounts relate to development costs incurred on projects that will produce revenues in a subsequent period. The costs will be amortized over the anticipated length of the production or contract to which they relate. g) Use of estimates

The preparation of the financial statements in conformity with Canadian generally accepted accounting principles requires management to make estimates and assumptions about future events that affect the reported amounts of assets, liabilities, revenues and expenses as at the end of or during the reporting period. Management believes that the estimates used are reasonable and prudent, however, actual results could differ from those estimates. Significant areas requiring the use of management estimates relate to the determination of the useful lives of assets for amortization and the amounts recorded as accrued liabilities. h) Financial instruments

Short-term investments are classified as "held for trading". Under this classification the Societys financial insutrments are measured and reported at fair value.

Subsequent changes in fair value of financial instruments are recognized as gains or losses in the statement of operations in the period in which the change in value takes place.

Th Society has elected to continue to follow the financial instrument disclosure and presentation requirements of Section 3861 of the CICA Handbook instead of the requirements of Sections 3862 and 3863, as provided by Sections 3862 and 3863.

3. RECENT ACCOUNTING PRONOUNCEMENTS

In September 2008, the Accounting Standards Board issued CICA Handbook Section 4470, "Disclosure of allocated expenses by not-for-profit organizations", which establishes standards for disclosing an entitys policies governing the allocation of common expenses to multiple functions or programs. This standard is effective for fiscal years beginning on or after January 1, 2009. The Society is currently assessing the impact of these new standards and has not yet determined their impact on the Societys financial statements.

Also in September 2008, the Accounting Standards Board amended the following CICA Handbook Sections: 1540 "Cash flow statements" 4400 "Financial statement presentation by not-for-profit organizations" 4430 "Capital assets held by not-for-profit organizations" 4460 "Disclosure of related party transactions by not-for-profit organizations"

The amendments provide additional guidance on applying the existing standards and are effective for fiscal years beginning on or after January 1, 2009. The Society is currently assessing the impact of the amendments to these standards and has not yet determined their impact on the Societys financial statements. VANCOUVER THEATRESPORTS LEAGUE DRAFT NOTES TO FINANCIAL STATEMENTS For Discussion Purposes Only 07/02/09 5:00 PM (Unaudited)

FEBRUARY 28, 2009

4. FINANCIAL INSTRUMENTS

The Societys financial instruments consist of accounts receivable, cheques written in excess of funds on deposit, bank loans and accounts payable. In managements opinion the Society is not exposed to significant interest rate, currency exchange rate or credit risk arising from these financial instruments. The fair values of these financial instruments approximate their carrying values due to their short- term maturities.

5. RESTRICTED CASH

The Society has set aside a total of $106,801 (2008 - $83,151) for the Facility Fund.

6. CAPITAL ASSETS 2009 2008 Accumulated Net Net Cost Amortization Book Value Book Value

Office equipment $ 43,899 $ 31,544 $ 12,355 $ 17,027 Theatre equipment 49,258 40,107 9,151 10,258

$ 93,157 $ 71,651 $ 21,506 $ 27,285

7. GRANTS AND SPONSORSHIPS 2009 2008

Cash $ 22,750 $ 23,000 GST recovery 6,604 8,612 In kind - Promotion costs 131,696 147,582 Production costs 11,362 21,631 Selling costs 16,148 14,410 Office costs 12,128 11,810

200,688 $ 227,045

8. BANK LOAN

The bank demand loan is secured by a General Security Agreement covering all assets of Vancouver TheatreSports League as well as a pledge of at least $45,000 in Guaranteed Investment Certificates (which are included in restricted cash). 2009 2008

Repayable on demand with interest at prime plus 2.1% 5,000

VANCOUVER THEATRESPORTS LEAGUE DRAFT NOTES TO FINANCIAL STATEMENTS For Discussion Purposes Only 07/02/09 5:00 PM (Unaudited)

FEBRUARY 28, 2009

9. LEASE COMMITMENTS

The Society leases its office premises and space for its stage presentations under long-term leases which expire on December 31, 2010 and August 30, 2009, respectively.

The lease commitments during the next two years are as follows:

Office Theatre

2010 $ 15,660 37,500 2011 13,050

$ 28,710 $ 37,500

The theatre lease also includes the collection, by the landlord, of a surcharge of $1.50 per ticket sold. This surcharge is broken into three parts:

a) $0.50 to be paid to the landlord directly, b) $0.50 to be deposited into a Capital Improvement and Maintenance Fund ("CIM Fund"), and c) $0.50 to be paid to the Society (see Note 5).

The amount collected for the CIM Fund is to be spent on repairs or improvements to the New Revue Stage on Granville Island. The fund is to be jointly administered by the landlord and the Society. The Society is not entitled to any of the amounts paid into the fund, therefore, this portion of the surcharge has not been recorded in the accounts. As of February 28, 2009, the total balance in the CIM Fund is approximately $135,000 (2008 - $129,500). Vancouver TheatreSports League BUDGET - 2009-2010

Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Total Income Main Stage 37,748 39,596 48,845 40,421 41,979 42,553 41,686 48,628 40,421 55,055 42,056 28,251 507,240 46.7% Second Stage 0 0 0 0 0 0 0 0 0 0 0 0 0 0.0% Corporate Special Events 11,000 9,000 9,000 9,000 5,000 5,000 7,000 21,000 21,000 13,000 5,000 9,000 124,000 11.4% Touring 12,150 12,150 0 0 0 0 0 6,075 20,100 0 12,150 21,975 84,600 7.8% Workshops Other Activities 4,294 3,282 4,160 1,414 537 537 4,160 3,417 4,294 201 1,652 537 28,484 2.6% Sales Miscellaneous 200 200 200 200 200 200 200 200 200 200 200 200 2,400 0.2% Theatre Rental 400 400 400 400 400 400 0 0 0 0 0 0 2,400 0.2% Grants, Donation Fundraising 2,275 18,775 2,451 2,275 2,275 2,275 2,275 5,275 4,275 5,775 2,275 10,275 60,476 5.6% Gaming Income 0 0 0 55,000 0 0 0 0 0 0 0 0 55,000 5.1% Sponsorship 13,515 13,515 13,515 27,845 15,015 13,515 26,265 13,515 18,045 13,515 13,515 14,065 195,840 18.0% Total Income 81,582 96,918 78,570 136,555 65,406 64,480 81,586 98,110 108,335 87,746 76,848 84,302 1,060,440 97.6%

Fees Salaries Administrative 34,766 23,177 23,177 23,177 23,177 34,766 23,177 23,177 23,177 23,177 23,177 23,177 301,304 27.7% Agent Booking 1,519 1,519 0 0 0 0 0 759 2,513 0 1,519 2,747 10,575 1.0% Theatre 5,659 6,150 6,583 5,659 6,612 6,121 0 0 0 0 0 0 36,784 3.4% Seasonal Production 514 342 342 942 342 514 342 1,342 342 342 342 1,342 7,052 0.6% Pre-Production 1,400 0 0 0 0 0 8,970 350 8,770 900 0 0 20,390 1.9% Production 24,239 23,767 21,374 18,074 17,018 16,405 19,486 29,089 31,908 21,078 23,079 25,329 270,846 24.9% Total Fees Salaries 68,096 54,955 51,476 47,852 47,149 57,806 51,976 54,718 66,710 45,498 48,118 52,595 646,951 59.5%

Gross Profit 13,486 41,963 27,094 88,703 18,257 6,674 29,610 43,392 41,625 42,248 28,730 31,707 413,489 38.1%

Costs Pre-Production 50 50 50 50 250 250 1,500 50 1,050 1,450 50 50 4,850 0.4% Production 2,650 2,570 1,270 1,270 1,110 1,110 3,740 2,550 6,950 1,580 5,560 13,570 43,930 4.0% Promotion 15,918 14,762 15,615 14,533 13,978 11,965 16,385 14,334 15,752 14,848 13,990 16,075 178,155 16.4% Selling 2,153 2,257 2,780 2,304 2,392 2,424 2,375 2,767 2,304 3,131 2,396 1,616 28,899 2.7% Theatre 6,885 6,885 6,885 6,885 7,085 7,085 12,295 13,735 11,655 12,935 13,625 6,535 112,490 10.4% Office 3,495 3,495 3,495 3,495 3,495 3,495 3,495 3,495 3,495 3,495 4,695 3,495 43,140 4.0% Administrative 2,205 955 555 555 830 555 655 555 1,155 905 2,805 3,055 14,785 1.4% Rental 0 0 0 0 0 0 0 0 0 0 0 0 0 0.0% Fundraising Fees Costs 20 20 20 20 20 20 20 20 20 20 20 20 240 0.0% Total Costs 33,376 30,994 30,670 29,112 29,160 26,904 40,465 37,506 42,381 38,364 43,141 44,416 426,489 39.3%

Operating Profit (19,890) 10,969 (3,576) 59,591 (10,903) (20,230) (10,855) 5,885 (756) 3,885 (14,411) (12,709) (13,000) -1.2%

Additional Fund-raising - net 0 0 0 0 3,000 0 0 10,000 0 0 0 0 13,000 1.2%

Net Profit / (Loss) (19,890) 10,969 (3,576) 59,591 (7,903) (20,230) (10,855) 15,885 (756) 3,885 (14,411) (12,709) (0) 0.0%

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Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Total Income Main Stage 37,748 39,596 48,845 40,421 41,979 42,553 41,686 48,628 40,421 55,055 42,056 28,251 507,240 46.7% Second Stage 0 0 0 0 0 0 0 0 0 0 0 0 0 0.0% Corporate Special Events 11,000 9,000 9,000 9,000 5,000 5,000 7,000 21,000 21,000 13,000 5,000 9,000 124,000 11.4% Touring 12,150 12,150 0 0 0 0 0 6,075 20,100 0 12,150 21,975 84,600 7.8% Workshops Other Activities 4,294 3,282 4,160 1,414 537 537 4,160 3,417 4,294 201 1,652 537 28,484 2.6% Sales Miscellaneous 200 200 200 200 200 200 200 200 200 200 200 200 2,400 0.2% Theatre Rental 400 400 400 400 400 400 0 0 0 0 0 0 2,400 0.2% Grants, Donation Fundraising 2,275 18,775 2,451 2,275 2,275 2,275 2,275 5,275 4,275 5,775 2,275 10,275 60,476 5.6% Gaming Income 0 0 0 55,000 0 0 0 0 0 0 0 0 55,000 5.1% Sponsorship 13,515 13,515 13,515 27,845 15,015 13,515 26,265 13,515 18,045 13,515 13,515 14,065 195,840 18.0% Total Income 81,582 96,918 78,570 136,555 65,406 64,480 81,586 98,110 108,335 87,746 76,848 84,302 1,060,440 97.6%

Fees Salaries Administrative 34,766 23,177 23,177 23,177 23,177 34,766 23,177 23,177 23,177 23,177 23,177 23,177 301,304 27.7% Agent Booking 1,519 1,519 0 0 0 0 0 759 2,513 0 1,519 2,747 10,575 1.0% Theatre 5,659 6,150 6,583 5,659 6,612 6,121 0 0 0 0 0 0 36,784 3.4% Seasonal Production 514 342 342 942 342 514 342 1,342 342 342 342 1,342 7,052 0.6% Pre-Production 1,400 0 0 0 0 0 8,970 350 8,770 900 0 0 20,390 1.9% Production 24,239 23,767 21,374 18,074 17,018 16,405 19,486 29,089 31,908 21,078 23,079 25,329 270,846 24.9% Total Fees Salaries 68,096 54,955 51,476 47,852 47,149 57,806 51,976 54,718 66,710 45,498 48,118 52,595 646,951 59.5%

Gross Profit 13,486 41,963 27,094 88,703 18,257 6,674 29,610 43,392 41,625 42,248 28,730 31,707 413,489 38.1%

Costs Pre-Production 50 50 50 50 250 250 1,500 50 1,050 1,450 50 50 4,850 0.4% Production 2,650 2,570 1,270 1,270 1,110 1,110 3,740 2,550 6,950 1,580 5,560 13,570 43,930 4.0% Promotion 15,918 14,762 15,615 14,533 13,978 11,965 16,385 14,334 15,752 14,848 13,990 16,075 178,155 16.4% Selling 2,153 2,257 2,780 2,304 2,392 2,424 2,375 2,767 2,304 3,131 2,396 1,616 28,899 2.7% Theatre 6,885 6,885 6,885 6,885 7,085 7,085 12,295 13,735 11,655 12,935 13,625 6,535 112,490 10.4% Office 3,495 3,495 3,495 3,495 3,495 3,495 3,495 3,495 3,495 3,495 4,695 3,495 43,140 4.0% Administrative 2,205 955 555 555 830 555 655 555 1,155 905 2,805 3,055 14,785 1.4% Rental 0 0 0 0 0 0 0 0 0 0 0 0 0 0.0% Fundraising Fees Costs 20 20 20 20 20 20 20 20 20 20 20 20 240 0.0% Total Costs 33,376 30,994 30,670 29,112 29,160 26,904 40,465 37,506 42,381 38,364 43,141 44,416 426,489 39.3%

Operating Profit (19,890) 10,969 (3,576) 59,591 (10,903) (20,230) (10,855) 5,885 (756) 3,885 (14,411) (12,709) (13,000) -1.2%

Additional Fund-raising - net 0 0 0 0 3,000 0 0 10,000 0 0 0 0 13,000 1.2%

Net Profit / (Loss) (19,890) 10,969 (3,576) 59,591 (7,903) (20,230) (10,855) 15,885 (756) 3,885 (14,411) (12,709) (0) 0.0%

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TABLF, OF CONTFATS

Executive Summary Major Objectives Secondary Objectives Mainstage Programming Ongoing Programming Special Projects Special Events Corporate Training School and Community Outreach Workshops Special Initiatives Human Resources Accomplishments 34-Mt PLe- Regional Demographics by Postal Code audience Percenta Total Prefix members Nei horhokd Sub-Neighbourhood ge Survey VON 2 Bowen Island/Lions 0.39% 508 V1M Surrey 0.00% 508 V2T 10 Abbotsford 1.97% 508 V2W Maple Ridge 0.79% 508 V2X Maple Ridge 1.18% 508 V2Y Langley 0.20% 508 V2Z Langley 0.39% 508 V3A Langley 1.57% 508 V3B Port Coquitlam 0.39% 508 V3C 12 Port Coquitlam 2.36% 508 V3E 10 Port Coquitlam 1.97% 508 V3H Anmore (Village of) 0.39% 508 V3H Belcarra (Village of 0.39% 508 V3H Port Moody 0.79% 508 V3J Coquitlam 0.79% 508 V3K 10 Coquitlam 1.97% 508 V3L 10 New Westminster 1.97% 508 V3M New Westminster 0.79% 508 V3N New Westminster 1.18% 508 V3P Port Coquitlam 0.20%; 508 V3R 18 Surrey 3.54% 508 V3S Surrey 1.18% 508 V3T Surrey 0.00% 508 V3V Surrey 0.39% 508 V3W Surrey 1.57% 508 V3X Surrey 0.20% 508 V3Y Pitt Meadows 0.79% 508 V3Z Maple Ridge 0.39% 508 V4A White Rock 0.39% 508 V4B White Rock 0.79% 508 V4C Delta 0.79% 503 V4E 2 Delta 0.39% 508 V4G Delta 0.00% 508 V4K Delta 0.59% 508 V4L Delta 0.00% 508 V4M Delta 0.39% 508 V4N 12 Surrey 2.36% 508 V4P 2 White Rock 0.39% 508 V4R 1 Maple Ridge 0.20% 508 V4W 2 Langley 0.39% 508 V5A Burnaby 0.00% 508 V5B 2 Burnaby 0.39% 508 V5J 2 Burnaby 0.39% 508 V5E 2 Burnaby 0.39% 508 V6X 8 Richmond 1.57% 508 V6Y 12 Richmond 2.36% 508 V7A Richmond ISteveston 1.57% 508 V7C Richmond 0.39% 508 V7E 16 Richmond Steveston 3.15% 508 V7G North Vancouver Deep Cove 0.79% 508 V7H North Vancouver Seymour Heights 0.39% 508 V7J North Vancouver Lynn Valley 1.18% 508 V7K North Vancouver Lynn Valley 0.79% 508 V7M North Vancouver JLower Lonsdale 0.39% 508 V7P North Vancouver Norgate 0.39% 508 V7R North Vancouver Montroyal 0.39% 508 V7S Nest Vancouver 0.79% 508 Total 253 49.80% 508 V5C - VOZ 230 Vancouver 45.28% 508 Total 483 95.08% 508

Abbotsfor 1.97% Burnaby 1.18% Coquitlam 2.76% Delta 2.17% Langley 2.56% Maple 2.56% North 4.33% New 3.94% Port 4.92% Port Moody/A 1.57% Richmond 9.06% Surrey 9.25% White 1.57% VANCOUVER THEATRESPORTS LEAGUE

FINANCIAL STATEMENTS

FEBRUARY 29, 2008 MANNING ELLIOTT 11th Floor, 1050 West Fender Street, Vancouver, BC, Canada V6E 3S7 CHARTERED ACCOUNTANTS Tel: 604. 714. 3600 Fax: 604. 714. 3669 Web: manningelliott.com

REVIEW ENGAGEMENT REPORT

To the Directors of VANCOUVER THEATRESPORTS LEAGUE

We have reviewed the statement of financial position of VANCOUVER THEATRESPORTS LEAGUE as at February 29, 2008 and the statements of revenue and expenses, changes in fund balances and cash flows for the year then ended. Our review was made in accordance with Canadian generally accepted standards for review engagements and accordingly consisted primarily of enquiry, analytical procedures and discussion related to information supplied to us by the Society.

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

Based on our review, nothing has come to our attention that causes us to believe that these financial statements are not, in all material respects, in accordance with Canadian generally accepted accounting principles. tia414-14/ Ecei,Qt6,

Chartered Accountants

Vancouver, British Columbia

July 28, 2008 VANCOUVER THEATRESPORTS LEAGUE

STATEMENT OF FINANCIAL POSITION

(Unaudited)

FEBRUARY 29 2008 2007

General Fund Facility Fund Total Total ASSETS

CURRENT ASSETS Accounts receivable $ 13,295 $ - $ 13,295 $ 15,779 Deferred development costs 1,591 1,591 - Prepaids and deposits 23,828 - 23,828 27,310

38,714 38,714 43,089

DUE FROM GENERAL FUND 98,169 98,169 87,757 RESTRICTED CASH (Note 5) 83,151 83,151 72,109 CAPITAL ASSETS (Note 6) 27,285 27,285 14,031

$ 65,999 $ 181,320 $ 247,319 $ 216,986

LIABILITIES

CURRENT LIABILITIES Cheques written in excess of funds on deposit $ 9,395 $ - $ 9,395 $ 1,084 Bank loan (Note 8) 5,000 5,000 35,000 Accounts payable 92,082 92,082 94,254 Prepaid revenue 11,219 11,219 17,188

117,696 117,696 147,526

DUE TO FACILITY FUND 98,170 98,170 87,758 DEFERRED CAPITAL DONATIONS 12,462 12,462 2,178

228 328 228,328 237,462

COMMITMENTS (Note 9)

FUND BALANCES

Invested in Capital Assets 14,823 - 14,823 11,853 Facility Fund - 181,320 181,320 159,866 Unrestricted (Deficit) (177,152) - (177,152) (192,195)

(162,329) 181,320 18,991 (20,476)

$ 65,999 $ 181,320 $ 247,319 $ 216,986 Approved by the Directors:

Director

Director VANCOUVER THEATRESPORTS LEAGUE

STATEMENT OF REVENUE AND EXPENSES

(Unaudited)

YEAR ENDED FEBRUARY 29 2008 2007

General Fund Facility Fund Total Total REVENUE Operating $ 773,890 $ 18,987 $ 792,877 $ 804,370 Grants and sponsorships (Note 7) 227,046 - 227,046 256,519 Gaming 55,000 55,000 67,218 Fund raising 39,773 - 39,773 36,604 Rental 9,037 - 9,037 9,513 Miscellaneous 3,988 2,573 6,561 9 083

1,108,734 21,560 1,130,294 1,183,307

EXPENSES Actors and technical fees 341,654 - 341,654 367,700 Fees, salaries and benefits 295,722 295,722 299,321 Advertising and promotion 213,971 213,971 263,241 Rent 98,693 - 98,693 97,438 Production costs 56,842 56,842 51,383

Box office and concession costs 38,873 106 38,979 46,429 Office and telephone 11,738 - 11,738 13,205 Theatre maintenance 11,529 - 11,529 11,161 Amortization of capital assets 7,116 7,116 4,897 Insurance 4,370 4,370 4,310

Professional fees 3,939 3,939 3,935 Professional development 2,873 - 2,873 3,451 Interest and bank charges 2,312 - 2,312 2,346 Fund raising costs 29 - 29 25

1,089,661 106 1,089,767 1,168,842 EXCESS OF REVENUE OVER EXPENSES FROM OPERATIONS 19,073 21,454 40,527 14,465

LOSS ON DISPOSAL OF CAPITAL ASSETS (1,060) (1,060) (100)

EXCESS OF REVENUE OVER EXPENSES FOR THE YEAR $ 18,013 21,454 $ 39,467 $ 14,365 VANCOUVER THEATRESPORTS LEAGUE

STATEMENT OF CHANGES IN FUND BALANCES

(Unaudited) YEAR ENDED FEBRUARY 29 2008 2007

General Fund Facility Fund

Invested in Capital Assets Unrestricted Restricted Total Total

FUND BALANCES AT BEGINNING OF YEAR $ 11,853 $ (192,195) $ 159,866 $ (20,476) $ (34,841)

Excess of revenue over expenses for the year 18,013 21,454 39,467 14,365 Investment in capital assets 21,430 (21,430) Disposal of capital assets (1,060) 1,060 Amortization of capital assets (7,116) 7,116 Amortization of deferred capital donations 2,646 (2,646) Receipt of capital donations (12,933) 12,933 Disposal of donated assets 3 (3)

FUND BALANCES AT END OF THE YEAR $ 14,823 $ (177,152) $ 181,320 $ 18,991 $ (20,476) VANCOUVER THEATRESPORTS LEAGUE

STATEMENT OF CASH FLOWS

(Unaudited)

YEAR ENDED FEBRUARY 29 2008 2007

General Fund Facility Fund Total Total CASH FLOWS FROM OPERATING ACTIVITIES Cash receipts from customers $ 1,108,572 $ 18,987 $ 1,127,559 $ 1,188,354 Cash paid to suppliers, employees and contractors (1,073,553) (106) (1,073,659) (1,158,061) Interest paid (2,312) (2,312) (2,346)

32,707 18,881 51,588 27,947 CASH FLOWS FROM INVESTING ACTIVITIES Purchase of capital assets (21,430) (21,430) (537) Advance from (to) the Facility Fund 10,412 (10,412) - - Interest earned - 2,573 2,573 1,613

(11,018) (7,839) (18,857) 1,076 CASH FLOWS FROM FINANCING ACTIVITIES Receipt (repayment) of bank loans (30,000) (30,000) 15,000

CHANGE IN CASH AND EQUIVALENTS DURING THE YEAR (8,311) 11,042 2,731 44,023

CASH AND EQUIVALENTS AT BEGINNING OF YEAR (1,084) 72,109 71,025 27,002

CASH AND EQUIVALENTS AT END OF YEAR $ (9,395) $ 83,151 $ 73,756 $ 71,025 VANCOUVER THEATRESPORTS LEAGUE

NOTES TO FINANCIAL STATEMENTS

(Unaudited) .■1

FEBRUARY 29, 2008

1. PURPOSE OF ORGANIZATION

The Vancouver TheatreSports League was formed in 1985 as a unique professional theatre organization, which is dedicated to the growth and exploration of exceptional improv-based work for the purpose of challenging and inspiring the community.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

a) Fund accounting

The General Fund reports the revenue and expenses related to the general operations of the Society.

The Facility Fund represents funds received which are to be used to undertake capital projects including, but not limited to, the establishment of a new home for the Society.

b) Revenue recognition

The Society follows the deferral method of accounting for revenue. Restricted revenue is recognized in the year in which the related expenses are incurred. Unrestricted revenue is recognized when received or receivable if the amount to be received can be reasonably estimated and collection is reasonably assured.

c) Amortization

Capital assets are recorded at historical cost and amortized over their estimated useful lives applying the following annual rates:

Office and theatre equipment 20% declining balance method Computer equipment 40% declining balance method

The Society records one-half of the annual amortization rate in the year that an asset is purchased and in the year that it is disposed.

d) Long-lived assets

The Society monitors the recoverability of long-lived assets, based on factors such as current market value and future asset utilization. The Societys policy is to record an impairment loss when it is determined that the carrying amount of the assets may not be recoverable. To February 29, 2008, no impairment losses have been recorded.

e) Deferred capital donations

Deferred capital donations are comprised of capital assets donated by various organizations and individuals. These are being amortized on an annual basis in an amount equivalent to the amortization taken on the related assets. VANCOUVER THEATRESPORTS LEAGUE

NOTES TO FINANCIAL STATEMENTS

(Unaudited)

FEBRUARY 29, 2008

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) f) Deferred development costs

These amounts relate to development costs incurred on projects that will produce revenues in a subsequent period. The costs will be amortized over the anticipated length of the production or contract to which they relate.

g) Use of estimates

The preparation of the financial statements in conformity with Canadian generally accepted accounting principles requires management to make estimates and assumptions about future events that affect the reported amounts of assets, liabilities, revenues and expenses as at the end of or during the reporting period. Management believes that the estimates used are reasonable and prudent, however, actual results could differ from those estimates. Significant areas requiring the use of management estimates relate to the determination of the useful lives of assets for amortization and the amounts recorded as accrued liabilities.

h) Recent accounting pronouncments

In October 2006, the Accounting Standards Board issued CICA Handbook Section 1535, "Capital Disclosures", which establishes standards for disclosing information about an entitys capital and how it is managed. This standard is effective for fiscal years beginning on or after October 1, 2007. The Society does not expect that the adoption of this standard will have a material impact on the societys financial statements.

In December 2006, the Accounting Standards Board issued CICA Handbook Section 3862, "Financial Instruments - Disclosure" and Section 3863, "Financial Instruments - Presentation" which replace Section 3861, "Financial Instruments - Disclosure and Presentation". Section 3862 increases the emphasis on recognition and management of the risks associated with recognized and unrecognized financial instruments. This section also carries forward the former presentation requirements of Section 3861 and is effective for fiscal years beginning on or after October 1, 2007. The Society is currently assessing the impact of these new standards and has not yet determined their impact on the societys financial statements.

3. CHANGE IN ACCOUNTING POLICY

Effective April 1, 2007, the society adopted new Canadian Institute of Chartered Accountants recommendations governing the recognition and measurement of financial instruments.

These recommendations provide standards for the recognition, measurement, disclosure and presentation of financial assets, financial liabilities and derivative financial instruments. Upon initial adoption of the recommendations, policies followed for periods prior to the effective date generally are not reversed and therefore, the comparative figures have not been restated.

Under the new standards, financial instruments must be classified into one of five categories: held-for trading, held-to-maturity, loans and receivables, available-for sale financial assets or other financial liabilities. VANCOUVER THEATRESPORTS LEAGUE

NOTES TO FINANCIAL STATEMENTS

(Unaudited)

FEBRUARY 29, 2008

3. CHANGE IN ACCOUNTING POLICY (Continued)

The Society has elected to classify all of its financial instruments as "held for trading", which means that all financial instruments are measured and reported at fair value, Subsequent changes in fair value of financial instruments are recognized as gains or losses in the statement of operations in the period in which the change in value takes place.

Adoption of these new standards has not resulted in any adjustments.

4. FINANCIAL INSTRUMENTS

The Societys financial instruments consist of accounts receivable, cheques written in excess of funds on deposit, bank loans, accounts payable and lease commitments. In managements opinion the Society is not exposed to significant interest rate, currency exchange rate or credit risk arising from these financial instruments. The fair values of these financial instruments approximate their carrying values.

5. RESTRICTED CASH

The Society has set aside a total of $83,151 (2007 - $72,109) for the Facility Fund.

6. CAPITAL ASSETS 2008 2007 Accumulated Net Net Cost Amortization Book Value Book Value

Office equipment 41,831 $ 24,804 $ 17,027 $ 6,110 Theatre equipment 48,768 38,510 10,258 7,921

$ 90,599 $ 63,314 $ 27,285 $ 14,031

7. GRANTS AND SPONSORSHIPS 2008 2007

Cash $ 23,000 $ 18,083 GST recovery 8,613 9,325 In kind - Promotion costs 147,582 190,863 Production costs 21,631 13,882 Selling costs 14,410 12,921 Office costs 11,810 11,445

$ 227,046 $ 256,519 VANCOUVER THEATRESPORTS LEAGUE

NOTES TO FINANCIAL STATEMENTS

(Unaudited)

FEBRUARY 29, 2008

8. BANK LOAN

The bank demand loan is secured by a General Security Agreement covering all assets of Vancouver TheatreSports League as well as a pledge of at least $45,000 in Guaranteed Investment Certificates (which are included in restricted cash). 2008 2007

Repayable on demand with interest at prime plus 2.1% 5,000 $ 35,000

9. LEASE COMMITMENTS

The Society leases its office premises and space for its stage presentations under long-term leases which expire on December 31, 2010 and August 30, 2009, respectively.

The lease commitments during the next three years are as follows:

Office Theatre

2009 $ 15,660 $ 72,800 2010 15,660 37,500 2011 13,050

44,370 $ 110,300

The theatre lease also includes the collection, by the landlord, of a surcharge of $1.50 per ticket sold. This surcharge is broken into three parts:

a) $0.50 to be paid to the landlord directly, b) $0.50 to be deposited into a Capital Improvement and Maintenance Fund ("CIM Fund"), and c) $0.50 to be paid to the Society (see Note 5).

The amount collected for the CIM Fund is to be spent on repairs or improvements to the New Revue Stage on Granville Island. The fund is to be jointly administered by the landlord and the Society. The Society is not entitled to any of the amounts paid into the fund, therefore, this portion of the surcharge has not been recorded in the accounts. As of February 29, 2008, the total balance in the CIM Fund is approximately $129,500 (2007 - $113,400).