FINANCE REPORT 2018-2019

FINANCE REPORT 2018-2019 3

CONTENTS

Message from the Director of Finance...... 04

Finance Department

Function...... 05

Objectives...... 06

Meet our Team...... 07

Staff Bios...... 08

MFNERC Financial Statements...... 15

Independent Auditors’ Report...... 16

Statement of Financial Position...... 18

Statement of Operations...... 19

Statement of Changes in Net Assets...... 20

Statement of Cash Flows...... 21

Notes to the Financial Statements...... 22

Schedule 1 - Schedule of Revenue and Expenses - Administration...... 29

Schedule 2 - Schedule of Revenue and Expenses - First Nations School System...... 30 4 FINANCE REPORT 2018-2019

MESSAGE FROM THE DIRECTOR OF FINANCE

On behalf of MFNERC’s Board of Directors, we welcome you to preview our 2018-19 Financial Audit. Together we value education. A positive educational process is our first priority. We are constantly looking for ways to work more efficiently, at the same time ensuring a quality education for First Nations Students in Manitoba.

This Audit report reflects Manitoba First Nations Education Resource Centre’s (MFNERC) on-going commitment to improving both its performance and its financial and fiscal accountability.

MNP LLP Chartered Accountants conducted the audit of the MFNERC’s Financial Statements for the fiscal year ending March 31, 2019. Total revenue was $72,835,050 and total expenses were $73,287,554. We are reporting a deficit of $452,504 for MFNERC for fiscal year 2018-19. In prior year, MFNERC had a surplus of $585,883 and this year MFNERC expended this surplus which caused the deficit. GEORGE MERASTY B.Comm. (Hons.), CA, CPA, CAFM The management letter from MNP LLP, MFNERC’s auditing firm, made no significant Director of Finance suggestions for operational or procedural changes and they issued an “unqualified” opinion on the March 31, 2019 MFNERC Financial Statements, which represents the highest standard for a financial audit.

MFNERC recorded $71,049,945 from Indigenous Services Canada (ISC) and $6,538,629 from First Nation and Inuit Health and $1,648,079 in other fundings sources. The net deferred revenue to next year was $6,401,333.

MFNERC’s success in 2018-19 demonstrated the strength and importance of sound management execution and the value of financial discipline.

Overall, Finance ensured that all requirements of a project’s Contribution Agreement were being compiled with authorized expenditures as well as ensured that the deliverables were being adhered to.

George Merasty B. Comm (Hons.), CA, CPA, CAFM Director of Finance FINANCE REPORT 2018-2019 5

FUNCTION

Finance manages the implementation of the financial plans and policies of MFNERC. The financial strategic objectives of MFNERC is to manage the funds it has been entrusted with. Finance carries out this objective through cost effective management of MFNERC’s internal financial operations, efficient negotiations, monitoring of funded projects, and strategic management of the organization’s investments.

Finance is responsible for three main areas:

1. Project funding

• Financial review and monitoring of all budgets for all projects administered by MFNERC

2. Organizational finances and administration

• General Expense (Salaries, insurance, office supplies, training etc…) • Investments • Financial Reporting • Financial advice to the Board of Directors

3. Monitoring

• Processing cheque requisitions submitted by departmental managers • Assessment of budget to actual expenditures on a monthly basis • Analysis of project performance to ensure deliverables are adhered to 6 FINANCE REPORT 2018-2019

OBJECTIVES To fulfill all financial functions and execute its responsibilities, the Finance department has identified the following objectives and strategies:

1. Ensure the integrity, reliability and transparency of all the financial operations of MFNERC

STRATEGY: To establish budgeting control and reporting systems, applied both to the internal and financial operations of all funded projects. Finance achieves the following objectives:

• Assisting in the development of policies and budgets, and providing the necessary information and financial analysis required. • Control and monitor the operational budget that has been approved by the Board of Directors. • Assisting Management in discharging its responsibilities for Financial Reporting. • Implementing and maintaining the accounting system (Sage 300). • Ensuring the Reporting and Auditing procedures are carried out. • Administrating the investments on behalf of MFNERC.

The Financial statements of MFNERC are prepared in accordance with General Accepted Accounting Principles, including the accounting recommendations for not-for-profit organizations in Canada.

2. Ensuring that funding expenditures are in accordance with the terms and conditions of all Contribution Agreements.

STRATEGY: To conduct a financial assessment of the progress of funded projects in conjunction with departmental managers, ensuring project expenditures are measured against project work-plans, goals and objectives.

3. To ensure the integrity and reliability of data

STRATEGY: Implementing and maintaining the accounting system (Sage 300) / HRMS

EXPECTED RESULTS:

• Ensuring that all requirements of a project’s Contribution Agreement are being compiled with authorized expenditures. • Refining the overall project as necessary to compile with the funding agreements. • Reducing a risk of unauthorized expenditures. • Ensuring that adequate resources continue to be available for the continuation of planned projects. FINANCE REPORT 2018-2019 7

MEET OUR TEAM MFNERC FINANCE OFFICE Swan Lake First Nation 120-200 Alpine Way Headingly, MB R4H 0B7 Phone: 1(204) 594-4267 Fax: 1(204) 831-1301

MFNERC FINANCE TEAM: • George Merasty B. Comm. (Hons.), CA, CPA, CAFM, Director of Finance • Sarah Cook B. Comm. (Hons.), CA, CPA, Assistant Director of Finance • Curtis Carriere, Senior Finance Assistant • Donna McCorrister, Accounts Receivable • Bryanna Kirkness, Travel Lead • Carla Cook, Travel P/T • Rhonda Hardisty, Accounts Payable Lead • Barbara Spence, Accounts Payable • Louise Lavallee, Accounts Payable • Shannon Laforte, Contracts Administration • Dianne Roulette, Purchase Orders • Heather Sinclair, Payroll Lead • Nichole Brisebois, Payroll • Candace Bland, Payroll • Ashley Carriere, Payroll and Benefits • Terrence Shannacappo, Benefits Administration • Glen Stevenson, Pension & GL • Melissa Soldier, Travel Agent • Wayne Mason, Travel Agent P/T 8 FINANCE REPORT 2018-2019

STAFF BIOS

Born and raised on the Flying Dust First Nation in northern Saskatchewan, George Merasty went on to become the Director of Finance for MFNERC as of 2007. In the past, he also served as the Director of Finance for the Assembly of Manitoba Chiefs from 1997 to 2007.

After graduating from the with a Bachelor of Commerce Honours degree with a major in Accounting, he obtained his Chartered Accountant designation in 2000.

George has been married for 24 years to his wife, Marla, and they have two adult children—Kaeden and Brenden. GEORGE MERASTY B.Comm. (Hons.), CA, CPA, CAFM Director of Finance

Sarah Cook is the Assistant Director of Finance at MFNERC. She graduated from the University of Manitoba with a Bachelor of Commerce Honours degree with majors in Accounting and Aboriginal Business Studies. In 2011, she obtained her Chartered Accountant designation. As a Chartered Accountant, Sarah has worked with a variety of charitable, non-profit and First Nation organizations to meet their reporting requirements. In the past, she has served as a Staff Accountant and Audit Manager at BDO Canada LLP and as a Finance Officer at Indigenous Management Group.

Sarah is a proud member of the Misipawistik Cree Nation. She enjoys giving back to her community and has been a member of United Way ’s Council for Indigenous Relations since 2015. SARAH COOK B.Comm. (Hons.), CA, CPA Assistant Director of Finance FINANCE REPORT 2018-2019 9

Dianne Roulette, Ojibway is a member of the Long Plain First Nation and has worked at MFNERC for seven years in total. She has worked in the following organizations; Royal Bank of Canada, Federation of Saskatchewan Indian Nations, Peace Hills Trust, Assembly of Manitoba Chiefs, Dakota Ojibway Tribal Council Housing Authority and also in her community of Long Plain First Nation. Dianne received a Business Administration Diploma from the University of Saskatchewan, Legal Secretarial Diploma from Robertson Career College and graduated from the Canadian College of Funeral Services as a Funeral Director/Embalmer.

Dianne is a single parent and enjoys living her life to the fullest with her three wonderful children; Kyra (Masters of Social Work), Quinn (High School Graduate), and Ellery (High School), and she is also a proud grandmother of her only grandchild, Paige. DIANNE ROULETTE Purchase Orders

Curtis Carriere has worked in Finance at MFNERC since 2005, where he has occupied a variety of roles within the department—Accounts Payable, Receivable, Bank Reconciliations, and the General Ledger. He is currently working within the Manitoba First Nations School System (MFNSS).

Curtis was born in raised in Winnipeg and spent many summer and winter months in and around Cranberry Portage, Manitoba. The nearby First Nation of Opaskwayak Cree Nation is where he has treaty status. He went on to graduate from the University of Manitoba with a Bachelor of Arts degree with a major in Economics and minor in Business. CURTIS CARRIERE Senior Finance Assistant

Before becoming a Finance Assistant with MFNERC, Shannon Laforte worked in the finance department of the Aboriginal Peoples Television Network and the Assembly of Manitoba Chiefs.

Born and raised in Winnipeg, Shannon graduated from St. John’s High School and continued her studies at Winnipeg Technical College along with various medical and accounting courses at .

Shannon is a mother to two beautiful children; Riley and Echo. SHANNON LAFORTE Contracts Administration 10 FINANCE REPORT 2018-2019

Rhonda Hardisty has been working with the MFNERC Finance team since November 2013. Prior to joining the team she worked for 12 years with the Southeast Resource Development Council as Financial Administrator/Training and Employment Coordinator and two years with the Southern Chiefs Organization as Finance Assistant/ Acting Finance Manager.

Rhonda grew up in Manigotogan and is a member of the Hollow Water First Nation, she moved to Winnipeg to attend Red River College where she graduated with a Business Administration diploma.

Rhonda is a mother to two adult children, Cobina and Taylor, and a proud grandmother to Jaxton, Ainsleigh, Alarie and Alex & Sienna-who she cares for on a full time basis. RHONDA HARDISTY Accounts Payable Lead

Louise Lavallee is a member of the Fisher River Cree Nation and has worked for MFNERC since February 14, 2018 in Accounts Payable (Finance), prior to this she held a position with Otis Canada, Inc. for 32 years as a Senior Administrative Assistant.

Louise graduated from Success Business College with a Clerk Typist Diploma.

She has been married for 30 years to her husband Bob and together they have two sons, William & Kenny. She also has four grandsons and two beautiful granddaughters. She enjoys watching her grandsons Lil Will & Kason playing hockey.

LOUISE LAVALLEE Accounts Payable

Barbara is from Churchill, Manitoba and is a member of Fox Lake Cree Nation. Barbara has worked with MFNERC since January, 2014 as a Research/Administrative Assistant for the Structural Readiness Program. In 2017 Barbara transferred into the Finance Unit as the Account Payable Finance Assistant.

Her previous work experience has been with First Nations Organizations in the area of finance, health and social development.

Barbara has a Business Administration diploma from Red River College and a Bachelor of Arts Degree from the University of Manitoba with a major in Native Studies and a minor in Womens Studies BARBARA SPENCE Accounts Payable FINANCE REPORT 2018-2019 11

Bryanna Kirkness has been employed with MFNERC since 2002, working as an Administrative secretary and in the Finance Department as Finance Assistant for the past 15 years.

Bryanna graduated from Success Business College in 2002 and received a Business Administration diploma (with honours). Born in Grandview and raised in Thompson, Manitoba, she has lived in Winnipeg since 1999 and is treaty to Tootinaowaziibeeng Treaty Reserve.

Bryanna married her partner Leonard in late 2016, and together they have a blended family of four children and six grandchildren. BRYANNA KIRKNESS Travel Lead

Melissa Soldier has worked at MFNERC Inc., as a travel agent since late 2016. She spent the previous fifteen years at Clement Travel, a First Nations owned and operated travel agency.

Melissa grew up on Swan Lake First Nation and graduated from Robertson College in 1999 from the Travel Counselor course. She is one of the first native travel agents in Manitoba.

MELISSA SOLDIER Travel Agent

Wayne Mason Jr. is a member of the Fisher River Cree Nation and has worked for MFNERC since May 2019 in Finance, as the Travel Assistant. Wayne’s back ground experience has been in Education and Mental Health with First Nation Organizations in Manitoba.

He is the proud father of three children; Tanisa, Gavin, Keenan, and daughter-in-law, Icesis. They are expecting a beautiful addition to the family this fall.

WAYNE MASON Travel Agent P/T 12 FINANCE REPORT 2018-2019

Carla Cook joined the Finance Team in February 2019, and has enjoyed getting to know her coworkers at MFNERC. She’s a dedicated member of the Travel unit, and works hard to ensure people have the funds necessary to get where they need to go.

Carla graduated from Red River College with a Business Administration diploma, and has completed coursework towards obtaining her CPA designation. In addition to school and work, Carla loves spending time with her friends and family – especially the little additions her sisters continue to bring into the world.

CARLA COOK Travel P/T

Donna McCorrister has been working in the Finance Department at MFNERC for the past 4 years. She has worked in various organizations and businesses within the Peguis First Nation over the years. She graduated from Red River College with a Business Accounting and Management Studies Certificate and is currently working towards her Certified Aboriginal Financial Manager (CAMF) designation.

Donna originates from Brokenhead Ojibway Nation but transferred to Peguis First Nation at a young age. She and her husband Marshall have three adult children; Matthew, Brittany, and Ashton—and one 15 year old son, Presley. Family is very important to Donna, she spends most of her evenings and weekends watching her teenage son play various sports such as football in the summer, then hockey in the winter. She also enjoys playing golf with her husband. DONNA MCCORRISTER Accounts Receivable

Terrence Shannacappo is a proud member of the Rolling River First Nation. I speak and understand the Saulteaux (Ojibway) language. I left my home community at age 15 by choice to complete my high school education in Winnipeg. I have been with the Manitoba First Nations Education Resource Centre (MFNERC) since 2013. Prior to that I was employed with the Assembly of Manitoba Chiefs (AMC) as a Finance Assistant from 2000 to 2013. My other employment experiences were with various tribal councils and aboriginal organizations, private corporations and federal departments.

My only child Tishina graduated from UBC with a four year degree in 2014. She is now currently studying for her Masters of Education degree specializing in educational child psychology through the University of . She is completing her degree on a part time basis while working full time as a Junior Editor for the Publishing department at MFNERC. She’ll be graduating in 2021. TERRENCE SHANNACAPPO Benefits Administration I’m a graduate of the Business Administration Diploma Program from Red River College. Lastly, I’d like to thank my late mother for teaching me to speak in Saulteaux. It wasn’t until her passing I realized that she only ever spoke to me in Saulteaux when she talked to me. She never talked to me in English. English is my second language. FINANCE REPORT 2018-2019 13

Heather Sinclair has been with MFNERC, since 2004 as the Finance Assistant – Payroll Team Lead. Previous to her time with MFNERC, she was the Finance Manager for the Peguis First Nations Retail Grocery Store from 1992 to 1994. Return to the City of Winnipeg to work with the Island Lake Tribal Council as the Finance Clerk from 1994-1999. She attended the Yellowquill Community College in 2002 in the Certified Aboriginal Financial Manager (CAFM) Program graduating in June 2004.

Heather is proud mother of her daughter Erin who is attending the , and will be started her 4th year 2020. Erin is planning to take double majors in Psychology and Indigenous Studies.

She enjoys golfing with her ladies’ league team members of Larter’s at St. Andrews HEATHER SINCLAIR Golf & Country Club for the past nine years. Payroll Lead

Nichole Brisebois is currently a Finance Assistant in Payroll at MFNERC. Her passion for a career in finance led her to the Canadian Payroll Association. In 2009, she completed her Payroll Compliance Practitioner certification and has been working in the industry since.

Nichole is mother to Lucik Brisebois, her son, now eight and is in his third year into his educational journey.

NICHOLE BRISEBOIS Payroll

Candace Bland has been employed with MFNERC since 2017; originally as a School Finance Secretary in York Landing under MFNSS, and in April 2018, she joined the Resource Centre’s Payroll team as a Finance Assistant.

Candace completed an Advanced Bachelor of Arts degree in Native Studies and Management from the University of Manitoba in 2007 and an Accounting Assistant diploma from Robertson College in 2016. In August 2019, Candace received her designation as a Payroll Compliance Practitioner with the Canadian Payroll Association.

Candace was born and raised in Winnipeg and is a member of the Sagkeeng First Nation. Candace and her husband, Ted, have been together since 2004 and have five CANDACE BLAND children and one grandchild. Payroll 14 FINANCE REPORT 2018-2019

Ashley Carriere was first employed with MFNERC as a summer student during the summer of 2005. After graduating from Red River College with a Business Administration diploma, Ashley was then employed at MFNERC as an Administrative Assistant in the School Programs department. Wanting to expand her knowledge, she enrolled at the University of Winnipeg and graduated with a Human Resource Management Diploma. With her newly acquired knowledge, Ashley was once again hired at MFNERC as a Payroll and Benefits Administrator. She recently received her Payroll Compliance Practitioner designations with The Canadian Payroll Association.

Ashley is a mother of two wonderful children and likes to spend her time on the golf course.

ASHLEY CARRIERE Payroll and Benefits

Glen Stevenson has been a Finance Assistant at MFNERC Inc., since 2016. He has served as a Junior Accounting Technician for the Aboriginal Peoples Television Network from 2005 to 2010. He went on to be the Financial Analyst for the Tribal Wi-Chi-Way-Win Capital Corp/Aski Financial/Canada Student Loans Program from 2010 to 2015, and for a short stint, he was the also an Accounting Assistant for Manitobah Mukluks in 2015.

Glen was born in Winnipeg but raised on the Peguis First Nation. From 1996 to 2004, he has worked in a number of trades, including housing and manufacturing within the City of Winnipeg. However, he returned to school in the fall of 2004 and received an Accounting diploma with Honours from the Anokiiwin Training Institute in 2005.

Glen has been married for six years to his wife Melissa, and together they have one GLEN STEVENSON child, Jacob. Pension & GL FINANCE REPORT 2018-2019 15

FINANCIAL STATEMENTSFor the year ended March 31, 2019 16 FINANCE REPORT 2018-2019

INDEPENDENT AUDITOR’S REPORT To the Board of Directors of Manitoba First Nations Education Resource Centre Inc.:

Opinion

We have audited the financial statements of Manitoba First Nations Education Resource Centre Inc. (the “Centre”), which comprise the statement of financial position as at March 31, 2019, and the statements of operations, changes in net as- sets and cash flows for the year then ended, and notes and supporting schedules to the financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Centre as at March 31, 2019, and the results of its operations and its cash flows for the year then ended in accordance with Canadian public sector accounting standards for not-for-profit organizations.

Basis for Opinion

We conducted our audit in accordance with Canadian generally accepted auditing standards. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Centre in accordance with the ethical requirements that are relevant to our audit of the financial statements in Canada, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Responsibilities of Management and Those Charged with Governance for the Financial Statements

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

In preparing the financial statements, management is responsible for assessing the Centre’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting un- less management either intends to liquidate the Centre or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Centre’s financial reporting process.

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reason- able assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Canadian generally accepted auditing standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. FINANCE REPORT 2018-2019 17

As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise professional judg- ment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Centre’s internal control. • Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. • Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Centre’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Centre to cease to continue as a going concern. • Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical require- ments regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

Winnipeg, Manitoba July 29, 2019 Chartered Professional Accountants 18 FINANCE REPORT 2018-2019

STATEMENT OF FINANCIAL POSITION FINANCE REPORT 2018-2019 19

STATEMENT OF OPERATIONS 20 FINANCE REPORT 2018-2019

STATEMENT OF CHANGES IN NET ASSETS FINANCE REPORT 2018-2019 21

STATEMENT OF CASH FLOWS 22 FINANCE REPORT 2018-2019

NOTES TO THE FINANCIAL STATEMENTS FINANCE REPORT 2018-2019 23 24 FINANCE REPORT 2018-2019 FINANCE REPORT 2018-2019 25 26 FINANCE REPORT 2018-2019 FINANCE REPORT 2018-2019 27 28 FINANCE REPORT 2018-2019 FINANCE REPORT 2018-2019 29

SCHEDULE 1 - SCHEDULE OF REVENUE AND EXPENSES 30 FINANCE REPORT 2018-2019

SCHEDULE 2 - SCHEDULE OF REVENUE AND EXPENSES

MFNERC FINANCE OFFICE Swan Lake First Nation 120-200 Alpine Way Headingly, MB R4H 0B7 Phone: 1(204) 594-4267 Fax: 1(204) 831-1301