PPRINCERINCE ALBERTALBERT GGRANDRAND COUNCILCOUNCIL

protecting our ways

FINANCIAL 20 REPORT 18 PPAGCAGC O FFFICESF I C E S

Executive Offi ce Holistic Wellness Centre Spiritual Healing Lodge Chief Joseph Custer Reserve #201 Chief Joseph Custer Reserve #201 Wahpeton Reserve 94 B 2nd Floor 2300 - 10th Avenue West 851 - 23rd Street West, Cottage 3 Box 2350 P.O. Box 2350 Prince Albert, SK S6V 6Z1 Prince Albert SK S6V 6Z1 Prince Albert, SK S6V 6Z1 Tel: 765-5305 Toll Free: 800-765-5305 Tel: 953-2498 Fax: 953-2514 Tel: 953-7200 Fax: 764-6272 Fax: 765-5223 Sprucelodge Boarding Home Agriculture Information Technology Services Cottage 10 Main Floor – McIntosh Mall 851 - 23rd Street West, Cottage 4 Prince Albert, SK S6V 3S1 P.O. Box 3003 Prince Albert, SK S6V 7G3 Tel: 953-1590 Fax: 922-2502 Prince Albert, SK S6V 6G1 Tel: 953-7281 Fax: 764-5388 Ph: 953-2755 Fax: 953-2440 Urban Services Justice Unit 1410 B Central Ave. Child Care & Education Centre 77A-11th Street West P.O. Box 2350 Chief Joseph Custer Reserve #201 P.O. Box 2350 Prince Albert, SK S6V 6Z1 851 - 23rd Street West, Cottage 5 Prince Albert, SK S6V 6Z1 Tel: 765-5300 Fax: 922-5544 P.O. Box 1988 Tel: 953-7254 Fax: 764-7295 Prince Albert, SK S6V 4M4 Sports, Culture & Recreation Tel: 953-7210 Fax: 763-1270 Northern Lights Community 1410 B Central Ave. Development Corporation P.O. Box 2350 Education 2nd Floor, 2300-10th Avenue West Prince Albert, SK S6V 6Z1 Sturgeon Lake Offi ce Complex P.O. Box 2350 Tel: 765-5300 Fax: 922-5544 3601 - 5th Ave. East Prince Albert, SK S6V 6Z1 P.O. Box 2770 Ph: 953-7259 Fax: 764-0765 Valley Hill Youth Treatment Centre Prince Albert, SK S6V 6K1 PO Box 761 Tel: 953-7234 Fax: 922-3135 Northern Spruce Housing 2101-10th Avenue West 2nd Site P.O. Box 777 Prince Albert, SK S6V 5S2 Chief Joseph Custer Reserve #201 Prince Albert, SK S6V 5S2 Tel: 764-2311 or 764-2312 or 2300 10th Ave West, Cottage 11 Tel: 922-4122 Fax: 764-9222 764-2958 Fax: 764-2377 Prince Albert, SK S6V 7M2 Tel: 953-7234 Fax: 922-3135 P.A. Development Corporation Wahpeton Reserve #94A Housing & Technical Services P.O. Box 478 Chief Joseph Custer Reserve #201 Prince Albert, SK S6V 5R8 2300 10th Ave West, Cottage 12 Tel: 922-0099 Fax: 922-5075 Prince Albert, SK S6V 7G3 Tel: 953-7242 Fax: 922-1710 PAGC Learn & Grow Daycare 807-15th Street West 2nd Site: Emergency Operations Prince Albert, SK S6V 3S1 851 - 23rd Street West, Cottage 5 Tel: 765-5308 Fax: 763-0838 Prince Albert, SK S6V 7G3 Tel: 953-7242 Fax: 922-1710 Personnel & Finance 2300-10th Avenue West, 2nd Floor Forestry P.O. Box 2410 Chief Joseph Custer Reserve #201 Prince Albert, SK S6V 7G3 2300 - 10th Avenue West, Cottage 12 Tel: 953-7217 Fax: 953-1045 Prince Albert, SK S6V 7G3 Finance Fax: 763-3635 Tel: 765-5373 Fax: 763-2012 Sakwatamo Lodge Health & Social Development James Smith Cree Nation #100 Chief Joseph Custer Reserve #201 P.O. Box 3917 851 - 23rd Street West Melfort, SK S0E 1A0 P.O. Box 1775 Tel: 864-3631 Fax: 864-2204 Prince Albert, SK S6V 5T3 Tel: 953-7283 Fax: 763-6611 F IINANCEN A N C E S UUMMARYM M A R Y

During the past 6 years, our Chiefs and Executive have Once again I want to thank our auditors led by Keith been provided leadership in eliminating PAGC’s net Fonstad and Todd Robertson for working both diligently debt which was as high as $6.5 million at the end of and professionally on our audit under extreme time con- 2013. In April 2014 cutbacks in Tribal Council Funding straints. During the past four years of their audit engage- of $1,343,314 each year had a drastic impact on PAGC’s ment, PAGC has improved its fi nancial condition. We rely ability to recover this net debt. This 71% reduction in core on their advice for fi nancial statement presentation and funding by INAC now totals $6.7 million in the current fi s- fi nancial management solutions. cal year, severely aff ecting the Grand Council’s advisory services to our member First Nations. Despite this ongoing PAGC’s fi nance department has received the cooperation cutback in TCF funding, PAGC has managed to reduce its and support of our First Nations Chiefs, Elders and admin- net debt from $6.5 million to $2.3 million at the end of the istration staff to ensure that everything functions smoothly. 2017 fi scal year. We appreciate your strong leadership, guidance and sup- port for maintaining the fi nancial success of PAGC so that The consolidated operating results for the 2018 fi scal year we can continue serving your First Nations members. show an annual surplus of about $1.4 million, but the net debt stayed the same because the surplus funds were in- vested in capital assets – building renovations, equipment and vehicles. Revenue increased to $97.5 million from to $81.1 million due to one-time funding for the First Nations Housing Initiative. These higher revenues were off set by expenditures of $96.1 million, resulting in the surplus of $1.4 million after amortization. Acquisition of capital as- sets of around $1.2 million used up most of this annual surplus so there was no recovery of net debt in this fi s- cal year. These capital purchases will enable our program services to operate more effi ciently over the next few years and ensure that those programs generate future surpluses that will contribute to the recovery of our net debt.

Our Chiefs and the Annual Assembly have supported our fi nancial recovery eff orts by their continued oversight of our fi nancial situation. We are grateful for their ongoing support at Chiefs meetings and at the Executive Board/ Treasury Board meetings where a lot more detailed ques- tions have been deliberated. T AABLEB L E OOFF C OONTENTSN T E N T S

2 Consolidated Statement of Financial Position 3 Consolidated Statement of Operations 4 Consolidated Statement of Changes in Net Debt 5 Consolidated Statement of Cash Flows 6-15 Notes to the Consolidated Financial Statements 16 Consolidated Schedule of Tangible Capital Assets 17 Consolidated Schedule of Expenses by Object 18-24 Consolidated Schedules of Revenue and Expense by Program 25-26 Financial Charts 27 Summary of Financial Activities and Surplus 28-34 Schedules of Program Financial Activities and Surplus PADC Management Company Ltd. Consolidated Statement of Financial Position As at March 31, 2018

2018 2017

Financial assets Cash resources (Note 3) 1,861,058 1,968,936 Accounts receivable (Note 4) 8,369,935 9,621,534 Due from member First Nations (Note 5) 2,074,166 2,012,239 Note receivable (Note 6) - 25,245 Total financial assets 12,305,158 13,627,954

Liabilities Current Bank indebtedness (Note 7) 4,788,785 8,889,089 Accounts payable and accrued liabilities (Note 8) 2,761,255 2,797,241 Deferred revenue (Note 9) 5,722,011 2,591,781 Due to member First Nations (Note 10) 664,648 834,909 Current portion of long-term debt (Note 11) 135,714 135,714 Total current liabilities 14,072,414 15,248,734

Long-term debt (Note 11) 576,798 712,500

Total liabilities 14,649,211 15,961,234

Net debt (2,344,053) (2,333,281)

Non-financial assets Prepaid expenses 181,661 23,221 Tangible capital assets (Note 12) 4,654,596 3,414,240 Total non-financial assets 4,836,257 3,437,461

Accumulated surplus (deficit) (Note 19) 2,492,204 1,104,180

Contractual obligations (Note 13) Contingent liabilities (Note 14)

Director

Director

The accompanying notes and supplementary schedules are an integral part of these consolidated financial statements.

2 PADC Management Company Ltd. Consolidated Statement of Operations For the year ended March 31, 2018

Schedule Budget 2018 2017 (Note 20) Revenue Federal Government: (Note 15) Indigenous and Northern Affairs Canada 43,333,726 56,916,578 44,048,279 Health Canada - First Nations and Inuit Branch 16,427,930 17,584,495 15,764,936 Public Health Agency Canada 80,000 80,946 80,946 Justice Canada 509,727 509,727 507,790 Correctional Services Canada 600,000 526,938 554,351 Canadian Nuclear Safety Commission 20,000 - 7,000 Public Safety Canada - 52,716 53,064 Canada Mortgage and Housing Corporation 80,000 146,756 288,982 Provincial Government: - Sask Ministry of Justice 580,600 501,375 473,925 Sask Ministry of Corrections, Policing and Public Safety 240,800 209,672 224,885 Sask Ministry of Education 280,000 313,205 457,755 Sask Ministry of Environment 2,239,500 2,021,147 1,706,951 Sask Ministry of Social Services 2,000,000 2,519,197 1,850,137 Saskatchewan Indian Institute of Technologies 3,546,204 4,840,231 4,038,757 First Nations Trust 5,180,000 4,467,407 4,817,435 Federation of Sovereign Indigenous Nations 651,832 541,832 768,252 Northern Lights Community Development Corporation 810,000 927,854 667,313 Administration Fees and Services (Note 17) 1,060,000 631,744 479,651 First Nations Funding 2,625,600 1,802,407 2,070,727 Other Sources 1,300,059 2,860,541 2,284,499 Total Revenue 81,565,978 97,454,767 81,145,636

Program Expenses First Nations Government and Administration 3 7,089,575 7,679,078 7,459,530 Community Services 4 5,706,897 5,120,552 4,771,167 Economic Development 5 1,219,912 1,219,841 1,237,313 Education 6 37,926,235 39,579,666 36,744,157 Health 7 18,003,957 20,440,252 17,947,504 Infrastructure Services 8 8,210,647 20,169,740 10,265,332 Justice 9 1,957,127 1,857,615 1,820,655 Total Expenses 80,114,351 96,066,743 80,245,657

Annual surplus 1,451,627 1,388,024 899,978

Accumulated surplus (deficit), beginning of year 1,104,180 1,104,180 204,202

Accumulated surplus, end of year 2,555,808 2,492,204 1,104,180

The accompanying notes and supplementary schedules are an integral part of these consolidated financial statements.

3 PADC Management Company Ltd. Consolidated Statement of Changes in Net Debt For the year ended March 31, 2018

Budget 2018 2017 (Note 20)

Annual surplus 955,710 1,388,024 899,978

Acquisition of tangible capital assets - (1,986,898) (703,891) Amortization of tangible capital assets 560,000 746,542 533,672 1,515,710 147,669 729,760

Prepaid expenses - (158,441) (12,388)

Decrease in net debt 1,515,710 (10,773) 717,372

Net debt, beginning of year (2,333,280) (2,333,280) (3,050,652)

Net debt, end of year (817,570) (2,344,053) (2,333,280)

The accompanying notes and supplementary schedules are an integral part of these consolidated financial statements.

4 PADC Management Company Ltd. Consolidated Statement of Cash Flows For the year ended March 31, 2018

2018 2017

Cash provided by (used for) the following activities: Operating Annual surplus 1,388,024 899,978 Items not affecting cash Amortization of tangible capital assets 746,542 533,672

Changes in working capital accounts Accounts receivable 1,251,599 (5,057,521) Due from member First Nations (61,927) (88,590) Note receivable 25,245 23,064 Prepaid expenses (158,440) (12,388) Accounts payable and accrued liabilities (35,977) (46,022) Due to member First Nations (170,261) (168,818) Deferred revenue 3,130,230 2,072,674 6,115,036 (1,843,950)

Capital activities Purchase of tangible capital assets (1,986,898) (703,891) (1,986,898) (703,891) Financing activities Increase in long-term debt - 950,000 Repayment of long-term debt (135,714) (223,001) Increase (decrease) in bank indebtedness (4,100,304) 2,431,320 (4,236,018) 3,158,319

Increase (decrease) in cash resources (107,880) 610,478

Cash resources, beginning of year 1,968,936 1,358,458

Cash resources, end of year 1,861,056 1,968,936

Supplementary cash flow information: Interest paid in the year 77,428 97,287

The accompanying notes and supplementary schedules are an integral part of these consolidated financial statements.

5

PADC MANAGEMENT COMPANY LTD. Notes to the Consolidated Financial Statements For the year ended March 31, 2018

1. Description of business

The Company is incorporated under the Business Corporations Act of Saskatchewan and operates as a non-profit organization and is primarily engaged in providing management services and administering programs for the Prince Albert Grand Council and their member First Nations.

2. Summary of significant accounting policies

Basis of Accounting

These consolidated financial statements have been prepared in accordance with Canadian public sector accounting standards prescribed for governments as recommended by the Public Sector Accounting Board.

Reporting Entity

PADC Management Company Ltd. is the reporting entity for the Prince Albert Grand Council government and all related entities that are controlled by the Prince Albert Grand Council.

Principles of Consolidation

All controlled entities are fully consolidated on a line-by-line basis except for the commercial enterprises which meet the definition of government business enterprise, which are included in the Consolidated Financial Statements on a modified equity basis. Inter- organizational balances and transactions are eliminated upon consolidation. Organizations consolidated in the Company’s financial statements include:

x Sakwatamo Lodge Inc. x Sprucelodge Boarding Home Inc. x Prince Albert Grand Council Women’s Commission Inc. x PAGC Learn and Grow Daycare Inc. x PAGC Holdings Inc. x Prince Albert Grand Council Urban Services Centre Inc. x Prince Albert Grand Council Spiritual Healing Lodge

Cash and cash equivalents

Cash and cash equivalents include cash on hand, balances with banks net of bank overdrafts and term deposits having a maturity of three months or less at acquisition which are held for the purpose of meeting short-term cash commitments.

Tangible capital assets

Tangible capital assets are recorded at cost, which includes amounts that are directly related to the acquisition, design, construction, development, improvement or betterment of the assets. Cost includes overhead directly attributable to construction and development, as well as interest costs that are directly attributable to the acquisition or construction of the asset.

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PADC MANAGEMENT COMPANY LTD. Notes to the Consolidated Financial Statements For the year ended March 31, 2018

2. Summary of significant accounting policies - continued

Tangible capital assets – continued

Leases that transfer substantially all the benefits and risks of ownership to the lessee are recorded as capital leases. Accordingly, at the inception of the leases, the tangible capital asset and related lease obligations are recorded at an amount equal to the present value of future lease payments discounted at the lower of the interest rate inherent in the lease contracts and the Company’s incremental cost of borrowing.

Amortization is provided for on a declining balance basis over their estimated useful lives as follows:

Buildings and leasehold improvements 5-15% Furniture and equipment 20-50% Automotive 30% Computer equipment 50%

Tangible capital assets are written down when conditions indicate that they no longer contribute to the Company’s ability to provide goods and services, or when the value of future economic benefits associated with the tangible capital assets are less than their net book value. The net write-downs are accounted for as expenses in the consolidated statement of operations.

Contributed capital assets are recorded into revenues at their fair value on the date of donation, except in circumstances where fair value cannot be reasonably determined, in which case they are recognized at nominal value. Transfers of capital assets from related parties are recorded at carrying value.

Certain assets which have historical or cultural value, including works of art, historical documents and historical and cultural artifacts, are not recognized as tangible capital assets. Assets under construction are not amortized until the asset is available to be put into service.

Long-lived assets

Long-lived assets consist of tangible capital assets. Long lived assets held for use are measured and amortized as described in the applicable accounting policies.

PADC Management Company Ltd. performs impairment testing on long-lived assets held for use whenever events or changes in circumstances indicate that the carrying amount of an asset, or group of assets, may not be recoverable. The carrying amount of a long-lived asset is not recoverable if the carrying amount exceeds the sum of the undiscounted future cash flows from its use and disposal. Impairment is measured as the amount by which the asset’s carrying amount exceeds its fair value. Fair value is measured using prices for similar items. Any impairment is included in surplus for the year.

Asset classification

Assets are classified as either financial or non-financial. Financial assets are assets that could be used to discharge existing liabilities or finance future operations. Non-financial assets are acquired, constructed or developed assets that do not normally provide resources to discharge existing liabilities but are employed to deliver government services, may be consumed in normal operations and are not for resale in the normal course of operations. Non-financial assets include tangible capital assets and prepaid expenses.

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PADC MANAGEMENT COMPANY LTD. Notes to the Consolidated Financial Statements For the year ended March 31, 2018

2. Summary of significant accounting policies - continued

Net Debt

PADC Management Company Ltd.’s financial statements are presented so as to highlight net debt as the measurement of financial position. The net debt of PADC Management Company Ltd. is determined by its financial assets less its liabilities. Net debt is comprised of two components, non-financial assets and accumulated surplus.

Revenue Recognition

Revenues are recognized in the period in which the transactions or events occurred that gave rise to the revenues. All revenues are recorded on an accrual basis, except when the accruals cannot be determined with a reasonable degree of certainty or when their estimation is impracticable.

Government transfers are recognized as revenues when the transfer is authorized and any eligibility criteria are met, except to the extent that transfer stipulations give rise to an obligation that meets the definition of a liability. Transfers are recognized as deferred revenue when transfer stipulations give rise to a liability. Transfer revenue is recognized in the statement of operations as the stipulation liabilities are settled.

Contributions from other sources are deferred when restrictions are placed on their use by the contributor, and are recognized as revenue when used for the specific purpose

Revenue related to fees or services received in advance of the fee being earned or the service is performed is deferred and recognized when the fee is earned or service performed.

Segments

PADC Management Company Ltd. provides a range of services to its members. For management reporting purposes, operations and activities are organized and reported by each segment separately reported, the segment revenue and expenses represent both amounts that are directly attributable to the segment and amounts that are allocated on a reasonable basis. PADC Management Company Ltd.’s segments are as follows:

First Nations Government and Administration – includes First Nations Government, Tribal Council Administration, the PAGC Women’s Commission, the Treaty Defense Fund, Band Employee Benefits, the community development corporation, IT Services and Special Projects.

Community Services – includes the Childcare and Education Center, the daycare center, and sports, culture and recreation.

Economic Development – includes CEDO funds, CEOP projects, and the agriculture program,

Education – includes all second level services and direct services for the member First Nations schools, post-secondary education, urban services, Denesuline employment training, summer student employment and the active measures programs.

Health – includes contribution programs and health transfer services, treatment centers and capital addition to Sakwatamo Lodge.

Infrastructure Services – includes Engineering and Technical services, forest fire suppression and the fire smart – fuel management, and the First Nations Housing Initiative programs.

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PADC MANAGEMENT COMPANY LTD. Notes to the Consolidated Financial Statements For the year ended March 31, 2018

2. Summary of significant accounting policies - continued

Segments - continued

Justice – includes community justice initiatives, alternative measures, court workers, family violence and the Spiritual Healing Lodge.

The segment results for the period are as shown in the attached schedules.

Measurement uncertainty

In preparing the consolidated financial statements for the Company, management is required 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 consolidated financial statements and the reported amounts of revenue and expenses during the period. Actual results could differ from these estimates.

3. Cash resources 2018 2017

Cash in bank 1,861,068 1,968,936

4. Accounts receivable 2018 2017

Federation of Sovereign Indigenous Nations 529,703 308,819 Due from funding agencies Indigenous and Northern Affairs Canada 3,262,970 Health Canada 1,363,036 Justice Canada 75,780 Canada Mortgage and Housing Corporation - Correctional Services Canada 119,650 Public Safety Canada 10,726 Public Health Agency Canada 1,048 Subtotal – Federal Government 4,833,211 7,087,573

Saskatchewan Justice 351,346 Saskatchewan Ministry of Health 84,520 Saskatchewan Ministry of Social Services 159,731 Subtotal – Provincial Government 595,596 176,182

Saskatchewan Indian Institute of Technology 611,301 ADNT Trust 46,923 First Nations Child and Family Services 77,100 Northern Lights Community Development Corp. 58,191 Subtotal – Other agencies 793,515 1,186,929

Other receivables 889,935 403,026 Council and staff advances 311,614 241,737 Canada Revenue Agency 417,000 217,269 8,369,935 9,621,534

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PADC MANAGEMENT COMPANY LTD. Notes to the Consolidated Financial Statements For the year ended March 31, 2018

5. Due from member First Nations

Amounts due from member First Nations are short-term loans, advances and outstanding balances from prior years. No security has been taken and all receivables have no set terms of repayment.

2018 2017

Black Lake 55,650 571,643 Cumberland House 190,905 162,564 Fond du Lac 366,031 303,022 Hatchet Lake 7,538 68,117 James Smith 684,815 575,187 Lac La Ronge - - Montreal Lake 35,043 - Peter Ballantyne 375,136 138,709 Red Earth 282,417 42,801 Shoal Lake 68,631 150,196 Sturgeon Lake - - Wahpeton 8,000 - 2,074,166 2,012,239

6. Note receivable

An amount of 0 (2017 – 25,245) was receivable from the Prince Albert First Nations Business Development Limited Partnership, a partnership controlled by the same shareholders as PADC Management Company Ltd. No interest is charged and no security has been taken. The receivable relates to a profit share allocation of this business partnership and will be repaid on a current basis.

7. Bank indebtedness

Bank indebtedness consists of outstanding cheques issued and bank balances at year end. Interest is payable at prime plus 1.00%, and is secured by a general security agreement covering all assets. Line of credit facilities were available from two banks with overdraft limits of $3,000,000 and $75,000, of which 2,090,433 (2017 - 1,507,875) and 14,138 (2017 – 21,325) respectively, were drawn at end of the year.

8. Accounts payable and accrued liabilities

2018 2017

Trade payables 2,483,629 2,080,747 Accrued salaries and benefits payable 277,626 716,494 2,761,255 2,797,241

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PADC MANAGEMENT COMPANY LTD. Notes to the Consolidated Financial Statements For the year ended March 31, 2018

9. Deferred revenue

Revenue received during the year from various funding agencies which pertain to future expenditures are recorded as deferred revenue and will be recognized as revenue in future years as follows:

Balance Contributions Balance beginning of year received Recognized end of year Federal Government INAC – Special Education RMO INAC – Education New Paths INAC – School Evaluations INAC – Fire Prevention Circuit Rider Training INAC – Fire alarm detectors HC - Dental Therapy - - - - HC - Optometry - - - - HC - PhysicianTravel - 2,536 - 2,536 HC – Sakwatamo Lodge Capital 1,128,696 7,022 513,475 622,245 1.128,696 19,592,992 17,449,559 2,272,195

Provincial Government Sask. Ministry of Health – 15 Bed Facility 41,999 - - 41,999 41,999 - - 41,999

Totals 519,107 19,667,992 17,595,318 2,591,781

10. Due to member First Nations

Amounts payable to member First Nations represent flow-through funds that have been received or are receivable from funding agencies for program activities. These amounts are usually paid out to member First Nations during the first month of the new fiscal year once the funds have been received from the funding agencies and when any required reports have been submitted by the member First Nations. No interest has been accrued on amounts due to member First Nations and no security has been provided to by the member First Nations on the outstanding amounts. 2018 2017 Black Lake 70,789 24,900 Cumberland House 10,739 6,565 Fond du Lac - 20,000 Hatchet Lake 54,732 43,356 James Smith 260 21,624 Lac La Ronge 276,250 362,650 Montreal Lake 127,862 127,862 Peter Ballantyne 100,000 100,000 Red Earth 9,590 - Shoal Lake 5,513 20,315 Sturgeon Lake 112,865 64,164 Wahpeton 29,876 43,473 664,648 834,909

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PADC MANAGEMENT COMPANY LTD. Notes to the consolidated Financial Statements For the year ended March 31, 2018

11. Long-term debt 2018 2017 2 A 7-year term loan in the amount of $950,000 to finance the RCMP housing project with monthly principal payments of $11,309 at an interest rate of prime plus 2.50%, maturing on May 31, 2023, secured by a general security agreement covering all assets and an assignment of rent receipts on eleven RCMP housing units. 712,500 848,214

Less: Current portion (135,714) (135,714)

Totals 576,798 712,500

Principal payments due in each of the next five years are estimated as follows:

2018 2019 2020 2021 2022

135,714 135,714 135,714 135,714 135,714

12. Tangible capital assets

Tangible capital assets are summarized in Schedule 1. Leasehold improvements include roads and parking lot pavement on the Chief Joseph Custer Reserve #201. The RCMP Housing consists of 11 housing units located on five Peter Ballantyne Cree Nation Reserves which are leased as residences for the RCMP. The original capital cost of these RCMP housing units was recorded as the net cost after deducting four years of rent receipts and maintenance costs.

13. Contractual obligations

The Company leases various facilities on Chief Joseph Custer Reserve #201 and in the City of Prince Albert under operating leases. Future lease payments will aggregate $989,082 including the following amounts over the next five years.

2018 2019 2020 2021 2022 Office Leases: Peter Ballantyne Office Complex Lessor: Peter Ballantyne Cree Nation 112,848 112,848 112,848 112,848 112,848 Terms: Triple Net Expiry: March 31, 2018 PBCN Reserve #201 Facilities 582,000 582,000 582,000 582,000 582,000 Expiry: March 31, 2033 Sturgeon Lake Office Complex Lessor: Sturgeon Lake Developments 231,577 - - - - Terms: Inclusive Expiry: March 31, 2018 Tony Yannacoulias 63,504 63,504 63,504 63,504 - Terms: Triple Net Expiry: March 31, 2018 Hanlon Building Lessor: Birch Bay Holdings 25,920 25,920 25,920 25,920 - Terms: Triple Net Expiry: March 31, 2018 ______1,015,849 784,272 782,272 782,272 692,848

Land Use Fees: Reserve: Wahpeton Dakota Nation 24,000 24,000 24,000 24,000 24,000 Expiry: Ongoing Reserve: James Smith Cree Nation 60,000 60,000 60,000 60,000 60,000 Expiry: Ongoing ______84,000 84,000 84,000 84,000 84,000

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PADC MANAGEMENT COMPANY LTD. Notes to the Consolidated Financial Statements For the year ended March 31, 2018

14. Contingent liabilities

The Company has entered into contribution agreements with various federal government departments. Funding received under these contribution agreements is subject to repayment if the Company fails to comply with the terms and conditions of the agreements.

In addition, in the normal course of its operations, the Company becomes involved in legal actions. Some of these potential liabilities may become actual liabilities when one or more future events occur or fail to occur. To the extent that the future event is likely to occur, and a reasonable estimate of the loss can be made, an estimated liability is accrued and an expense recorded on the Company’s financial statements.

15. Federal government funding 2018 2017

Indigenous and Northern Affairs Canada INAC per confirmation 59,858,194 45,069,033 Add: Funds deferred from prior year 1,020,754 - Add: Funds receivable for eligible activities - - Add: Funds receivable for eligible activities in prior year - - Less: Funds deferred to future years - (1,020,754) Less: Funds not received - - Less: Funds repayable to INAC - - 60,878,948 44,048,279 Health Canada (FNIHB) FNIHB per confirmation 16,304,041 16,161,711 Add: Funds deferred from prior year 1,128,828 128,834 Add: Funds receivable for eligible activities 960,786 725,904 Less: Funds deferred to future years (624,781) (1,251,513) 17,768,874 15,764,936 Public Health Agency Canada Urban Community Action Program for Children 80,946 80,946

Justice Canada Community Justice Initiatives 447,569 447,569 Urban Alternative Measures 34,671 34,671 Sandy Bay Justice Project 25,550 25,550 507,970 507,970

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PADC MANAGEMENT COMPANY LTD. Notes to the Consolidated Financial Statements For the year ended March 31, 2018

15. Federal government funding – continued

Correctional Services Canada Spiritual Healing Lodge 526,938 554,351

Canadian Nuclear Safety Commission Site Remediation Engagement - 7,000

Public Safety Canada Community Healing Initiatives 52,716 53,064

CMHC Section 95 Loan Subsidies - 675 Housing Inspections 78,690 288,307 Better Building Initiatives - - 78,690 288,982

______Totals _ 79,814,136 61,305,348

16. Economic dependence

PADC Management Company Ltd. receives a significant portion of its revenue from INAC and Health Canada for the delivery of programs and services to member First Nations, as part of the Government of Canada’s treaty obligations to these First Nations. These funds are provided under certain terms and conditions as administered by INAC and Health Canada. The Company’s ability to continue to operate is dependent upon the Government of Canada continuing these financial commitments to provide services to its member First Nations.

17. Administration fees and services

PADC Management Company Ltd. bills related entities for services that are provided throughout the year related to rent, information technology support, and other administration services.

During the year, administration fees and services were earned from the following related entities:

2018 2017

White Buffalo Youth Inhalant Treatment Center - 114,259 Valley Hill Youth Treatment Centre 168,855 195,522

These transactions are in the normal course of operations and are measured at the exchange amount, which is the amount of consideration established and agreed to by the parties.

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PADC MANAGEMENT COMPANY LTD. Notes to the Consolidated Financial Statements For the year ended March 31, 2018

18. Related party transactions

A number of transactions are carried out throughout the year with Member First Nations, businesses owned by common shareholders and members of the Board and staff. These transactions are in the normal course of operations and are measured at the exchange amount, which is the amount of consideration established and agreed to by the parties.

At the year-end date, various amounts were receivable from related parties as disclosed in Notes 5 and 6, and amounts payable as disclosed in Note 10. Lease commitments to related parties are disclosed in Note 13.

19. Accumulated surplus (deficit) 2018 2017

Share capital – 12 Class A shares 12 12 Invested in tangible capital assets 4,654,596 3,414,240 Unrestricted deficit (3,070,896) (3,295,604) Externally restricted reserves (MAR, CMHC) 236,992 296,532 Internally restricted reserves 681,500 689,000 1,104,180 1,104,180

20. Budgeted figures

The budget figures have been provided for comparison purposes and have been derived from the estimates approved by the Board of Directors on March 14, 2017.

21. Subsequent events

The Company has completed renovations to a new daycare facility in the new year at a cost of 822,213, in addition to prior year expenditures of 138,558 on this project.

15

-

3,414,240

654,595

307,625

746,542

15,561,083

For the year ended March For31,March 2018 ended the year

3,414,240

15,561,083

533,672

15,027,411

18,975,323

703,891

18,271,432

89,236

PADC Management Company Ltd. Company Management PADC

Housing Totals Totals

4,

16,

20,962,219

1,986,896

18,975,323

80,869

51,486

1,305,801

771,060

762,693

623,977

534,741

1,386,670

-

-

41,474

Schedule 1 - Consolidated Schedule of Tangible Capital Assets of Tangible Schedule 1 - Consolidated Schedule

57,207

130,812

5,721

125,091

182,298

182,298

-

-

138,558

41,474

41,474

-

-

41,474

326,576

934,940

2,323,448

652,033

652,033

138,558

-

-

513,475

662,654

893,315

4,136,810

4,178,231

1,756,709

4,504,807

6,828,255

5,

79,088

271,795

297,221

and and Equipment Automotive Buildings Construction Land Improvements

474,156

3,

214,468

3,448,186

416,829

3,719,981

2,182,574

2,234,658

2,209,943

5,442,329

Computer Furniture Under Assets Leasehold 2018 2017

Equipment

318,615

5,202,801

5,123,713

5,500,022

57,693

f tangible capital assets capital tangible f 58,822

Annual amortizationAnnual 31,453

Balance, beginning of year of beginning Balance, 2,151,121

Acquisition of tangible capital assets capital tangible of Acquisition 24,715

Balance, beginning of year of beginning Balance,

2017 2017 Net book value o

Net book value of tangible capital assets 52,084

Balance, end of year of end Balance,

Accumulated amortization Accumulated

Balance, end of year of end Balance, Cost

16 PADC Management Company Ltd. Schedule 2 - Consolidated Schedule of Expenses by Object For the year ended March 31, 2018

Budget 2018 2017 (Note 21) Expenses First Nations flow-through funding: Special Education RMO flow-through funds 16,000,000 16,039,378 15,029,607 First Nations Student Success Plan flow-through 5,870,000 5,862,390 4,713,146 Education New Paths flow-through funds 5,653,428 5,587,669 5,336,682 Schools supplies and learning tools and materials 1,013,351 1,082,836 1,567,625 Professional services 940,000 1,301,245 957,209 Other costs 350,000 499,045 40,264 Casino funds distribution 5,000,000 4,465,407 4,676,827 Forest Fire Suppresion 2,400,000 2,632,701 1,986,750 Fire Smart - Fuel Management 1,487,000 1,460,406 2,203,063 First Nations Housing Initiative - 10,532,643 - Health transfer funds 1,438,149 1,616,920 1,688,068 Child care initiatives 1,015,000 1,708,993 1,167,156 Health Set contribution funds 1,254,850 1,243,656 1,250,114 Economic development CEDO funds 993,376 994,090 994,076 Maintenance management systems 59,000 275,163 59,000 43,474,154 55,302,541 41,669,586

Salaries and benefits 18,420,702 19,537,704 18,286,641 Administration and program management costs 3,182,041 3,795,946 3,433,651 Advertising, promotions and donations 10,500 86,612 70,560 Allowance for funding settlements - 2,146 - Annual Assembly/AFN/FSIN Assemblies 250,000 329,866 341,531 Bank charges and interest 86,900 59,451 58,392 Boards, commissions and coordinator meetings 158,979 362,802 331,860 Client activities and supplies 13,900 29,572 24,313 Community consultations 759,544 716,768 565,884 Community and economic development activities 381,120 314,488 236,341 Community workshops and training 1,250,000 1,224,176 1,408,855 Consultant fees 809,120 826,188 757,732 Elders and cultural activites 166,080 216,333 111,984 Facilities, rent, utilities and land use 1,308,400 1,944,791 1,476,490 Food and kitchen supplies 300,720 286,082 315,395 Information technology services 173,991 205,680 250,947 Insurance 103,300 161,559 136,788 Other costs 111,068 263,142 210,705 Professional fees 417,093 652,601 473,353 Recruitment and relocation 77,494 23,893 46,371 Repairs and Maintenance 137,250 275,163 195,865 Sports and recreation activities 677,000 636,437 400,670 Staff development and functions 344,200 222,046 328,079 Medical transportation, accommodations and supplies 1,550,000 1,607,888 1,524,561 Stationary, materials, tools and supplies 1,609,253 1,209,567 1,828,280 Student allowances, tuition and other expenses 1,966,740 1,889,264 1,951,366 Telephone and internet service 178,407 286,860 558,215 Travel and vehicle operations 2,155,842 2,850,535 2,717,573 Amortization of tangible capital assets 40,543 746,542 533,672 Total Expenses 80,114,341 96,066,644 80,245,657

17 PADC Management Company Ltd. First Nations Government and Administration Schedule 3 - Consolidated Schedule of Revenue and Expenses For the year ended March 31, 2018

Budget 2018 2017 (Note 21) Revenue Federal Government: (Note 16) Indigenous and Northern Affairs Canada 800,000 781,716 810,988 Canadian Nuclear Safety Commission 20,000 - 7,000 Canada Mortgage and Housing Corporation - - 154,772 Saskatchewan Ministry of Education - 14,526 - Saskatchewan Indian Institute of Technologies - - 95,334 First Nations Trust 4,750,000 4,330,589 4,661,871 Federation of Sovereign Indigineous Nations 150,000 40,000 228,700 Northern Lights Community Development Corporation 710,000 770,749 650,453 Administration Fees and Services 890,000 547,033 350,553 First Nations Funding - 134,894 - Other Sources 678,800 1,627,107 1,318,102 Total Revenue 7,998,800 8,246,613 8,277,773

Expenses Salaries and benefits 1,072,695 1,164,097 1,147,693 First Nations flow-through funding: Casino funds distribution 5,000,000 4,465,407 4,676,827 Travel and vehicle operations 87,000 13,772 192,601 Community consultations 297,000 19,645 13,843 Boards, commissions and coordinator meetings - 257,085 257,506 Advertising, promotions and sponsorships 11,016 19,587 Sports and recreation activities 19,000 21,054 9,357 Stationary, materials, tools and supplies 6,200 13,982 5,719 Consulting fees - 83,533 - Amortization of tangible capital assets - 580,822 426,437 Facilities, rent, utilities and land use (Note 18) 56,420 137,421 107,286 Annual Assembly/AFN/FSIN Assemblies 250,000 329,866 341,531 Professional fees 77,800 59,167 62,879 Bank charges and interest 68,000 43,220 45,484 Information technology services (Note 18) 23,160 3,600 3,600 Community development activities 41,120 119,173 43,535 Recruitment and relocation - 353 Other costs - 4,632 3,373 Insurance 1,200 33,287 17,267 Elders and cultural activites - 100,346 - Elders and cultural activites 14,880 112,633 14,955 Telephone and internet service 21,100 63,716 24,395 Staff development and functions - (0) 6,213 Allowance for funding settlements 1,304 Administration fees and services (Note 18) 54,000 40,200 39,088 Total Expenses 7,089,575 7,678,979 7,459,530

Annual Surplus (Deficit) 909,225 567,634 818,244

18 PADC Management Company Ltd. Community Services Schedule 4 - Consolidated Schedule of Revenue and Expenses For the year ended March 31, 2018

Budget 2018 2017 (Note 21) Revenue Provincial Government: Sask Ministry of Education 280,000 313,205 457,755 Social Services 2,000,000 2,519,197 1,850,137 First Nations Trust 180,000 136,818 155,564 Northern Lights Community Development Corporation 300,000 150,605 13,359 Administration Fees and Services 170,000 84,711 129,098 First Nations Funding 2,550,600 1,787,830 2,033,106 Other Sources 396,590 628,089 311,029 Total Revenue 5,877,190 5,620,455 4,950,049 - Expenses Salaries and benefits 3,627,060 2,976,218 3,086,615 Travel and vehicle operations 108,000 144,516 124,892 Student allowances, tuition and other expenses 93,500 78,583 75,155 Community consultations 18,000 41,633 26,389 Sports and recreation activities 658,000 615,382 391,313 Stationary, materials, tools and supplies 61,100 82,186 81,877 Facility improvements - - Amortization of tangible capital assets 21,997 57,817 18,711 Facilities, rent, utilities and land use (Note 14) 177,780 426,842 200,967 Professional fees 28,000 21,300 24,825 Bank charges and interest 1,900 2,422 2,097 Information technology services (Note ??) 21,440 9,120 25,920 Recruitment and relocation 7,000 4,017 1,161 Other costs 22,120 842 8,552 Insurance 20,200 25,980 20,108 Repairs and Maintenance 56,300 59,999 34,099 Elders and cultural activites 20,000 12,621 13,522 Staff development and functions 45,000 14,013 3,625 Food and kitchen supplies 126,000 120,871 125,080 Telephone and internet service 29,100 27,801 25,628 Client activities and supplies 5,200 4,488 5,676 Allowance for funding settlements - - - Administration and program management costs (Note 18) 559,200 393,900 474,954 Total Expenses 5,706,897 5,120,552 4,771,167

Annual Surplus (Deficit) 170,293 499,903 178,882

19 PADC Management Company Ltd. Economic Development Schedule 5 - Consolidated Schedule of Revenue and Expenses For the year ended March 31, 2018

Budget 2018 2017 (Note 21) Revenue Federal Government: (Note 16) Indigenous and Northern Affairs Canada 1,219,912 1,219,912 1,231,912 Other sources - - 1,670 Total Revenue 1,219,912 1,219,912 1,233,582 - Expenses Salaries and benefits 70,000 33,222 76,922 Consulting fees - - 12,217 CEDO flow-through funds 993,376 994,090 994,076 Travel and vehicle operations 24,000 20,720 17,156 Community consultations 4,000 5,978 3,609 Boards, commissions and coordinator meetings 8,979 19,431 - Stationary, materials, tools and supplies 1,800 6,598 2,429 Information technology services (Note ??) 960 960 1,180 Telephone and internet service 1,200 1,626 880 Agricultural development projects 79,000 89,159 115,543 Administration and program management costs (Note 18) 36,597 48,057 13,302 Total Expenses 1,219,912 1,219,841 1,237,313 - Annual Surplus (Deficit) - 71 (3,731)

20 PADC Management Company Ltd. Education Schedule 6 - Consolidated Schedule of Revenue and Expenses For the year ended March 31, 2018

Budget 2018 2017 (Note 21) Revenue Federal Government: (Note 16) Indigenous and Northern Affairs Canada 35,387,408 36,954,625 33,624,595 Public Health Agency Canada 80,000 80,946 80,946 Saskatchewan Indian Institute of Technologies 2,286,220 2,533,556 2,649,095 Northern Lights Community Development Corporation - 6,500 3,500 Other Sources 88,500 87,231 361,242 Total Revenue 37,842,128 39,662,858 36,719,378 37,842,128 - Expenses Salaries and benefits 3,853,024 4,218,462 3,804,361 First Nations schools flow-through funding: Special Education RMO flow-through funds 16,000,000 16,039,378 15,029,607 First Nations Student Success Plan flow-through 5,670,000 5,862,390 4,713,146 Education New Paths flow-through funds 5,653,428 5,587,669 5,336,682 Schools supplies and learning tools and materials 1,013,351 1,082,836 1,567,625 Professional services 940,000 1,301,245 957,209 Other costs 350,000 499,045 40,264 Travel and vehicle operations 477,949 840,159 669,108 Student allowances, tuition and other expenses 1,873,240 1,810,681 1,876,211 Community consultations 140,000 198,095 256,821 Boards, commissions and coordinator meetings 60,000 33,829 38,773 Stationary, materials, tools and supplies 54,000 81,239 95,646 Community workshops and training 317,600 444,135 350,347 Consultant fees 102,990 197,121 215,970 Facilities, rent, utilities and land use (Note 14) 313,360 423,067 359,231 Professional fees 5,293 10,500 - Information technology services (Note ??) 46,700 48,240 59,060 Recruitment and relocation 1,200 777 1,064 Community development activities 11,000 12,974 12,306 Other costs - - 94,975 Insurance 2,900 4,624 4,103 Repairs and Maintenance 40,000 39,152 5,034 Elders and cultural activites 6,000 2,250 9,192 Advertising, promotions and donations 3,000 24,256 13,882 Staff development and functions 99,200 46,292 160,164 Food and kitchen supplies 720 1,841 1,399 Telephone and internet service 37,167 57,594 379,147 Administration and program management costs (Note 18) 770,006 711,816 692,831 Total Expenses 37,842,128 39,579,666 36,744,157 - Annual Surplus (Deficit) - 83,191 (24,778)

21 PADC Management Company Ltd. Health Schedule 7 - Consolidated Schedule of Revenue and Expenses For the year ended March 31, 2018

Budget 2018 2017 (Note 21) Revenue Federal Government: (Note 17) Health Canada - First Nations and Inuit Branch 14,427,930 17,584,495 15,764,936 Public Safety Canada - 52,716 53,064 Canada Mortgage and Housing Corporation - - 675 Saskatchewan Indian Institute of Technologies 1,259,984 2,306,676 1,294,328 Federation of Sovereign Indigenous Nations 501,832 501,832 539,552 Other Sources 110,169 336,955 279,319 Total Revenue 16,299,915 20,782,674 17,931,874 - Expenses Salaries and benefits 6,750,000 7,475,695 6,885,696 First Nations flow-through funding: Health transfer funds 1,438,149 1,616,920 1,688,068 Child care initiatives 1,015,000 1,708,993 1,167,156 Health Set contribution funds 1,254,850 1,243,656 1,250,114 Travel and vehicle operations 741,507 937,952 874,359 Community consultations 99,601 425,738 265,223 Boards, commissions and coordinator meetings 67,000 31,106 11,484 Stationary, materials, tools and supplies 704,681 638,672 469,843 Community workshops and training 49,000 260,430 227,482 Consultant fees 229,390 521,895 407,625 Amortization of tangible capital assets 18,546 104,298 76,908 Facilities, rent, utilities and land use (Note 14) 563,800 703,594 571,992 Professional fees 302,000 546,818 379,648 Bank charges and interest 13,000 10,956 7,784 Information technology services (Note ??) 61,139 101,760 106,800 Recruitment and relocation 54,094 17,399 42,190 Other costs 64,948 284,612 96,829 Insurance 70,700 88,908 86,280 Repairs and Maintenance 24,950 166,750 151,708 Elders and cultural activites 103,200 59,768 36,734 Advertising, promotions and donations 7,500 19,102 7,105 Staff development and functions 191,400 117,038 120,138 Medical transportation, accommodations and supplies 939,000 1,607,888 1,455,058 Food and kitchen supplies 149,000 126,721 156,731 Telephone and internet service 81,740 82,808 83,242 Allowance for funding settlements - - - Administration and program management costs (Note 18) 1,259,763 1,540,771 1,321,309 Total Expenses 16,253,957 20,440,252 17,947,504

Annual Surplus (Deficit) 45,958 342,422 (15,630)

22 PADC Management Company Ltd. Infrastructure Services Schedule 8 - Consolidated Schedule of Revenue and Expenses For the year ended March 31, 2018

Budget 2018 2017 (Note 21) Revenue Federal Government: (Note 16) Indigenous and Northern Affairs Canada 5,868,231 17,960,325 8,380,783 Canada Mortgage and Housing Corporation 80,000 146,756 133,535 Provincial Government: Sask Ministry of Environment 2,239,500 2,021,147 1,706,951 Other Sources 75,000 14,577 37,621 Total Revenue 8,262,731 20,142,805 10,258,890 - Expenses Salaries and benefits 1,531,275 2,337,612 1,932,718 First Nations housing initiative 10,532,643 - First Nations flow-through funding: Forest Fire Suppression 2,400,000 2,632,701 1,986,750 Fire Smart - Fuel Management 1,487,000 1,460,406 2,203,063 Maintenance Management Systems 59,000 59,000 59,000 Travel and vehicle operations 580,197 772,102 723,601 Boards, commissions and coordinator meetings 15,000 21,350 21,786 Community consultations - 25,679 - Stationary, materials, tools and supplies 762,572 372,093 1,148,861 Community workshops and training 433,004 480,300 908,490 Consultant fees 76,740 107,172 121,919 Facilities, rent, utilities and land use (Note 14) 127,700 169,140 154,420 Allowance for funding settlements - 842 - Information technology services (Note ??) 16,840 22,800 26,098 Environmental remediation projects 250,000 93,181 64,957 Insurance 2,300 2,336 2,523 Advertising, promotions and donations - 32,237 29,986 Recruitment and relocation 644 1,056 Staff development and functions 3,000 40,790 20,520 Telephone and internet service 17,242 22,864 31,167 Administration and program management costs (Note 18) 448,777 983,847 828,418 Total Expenses 8,210,647 20,169,740 10,265,332 - Annual Surplus (Deficit) 52,084 (26,935) (6,442)

23 PADC Management Company Ltd. Justice Schedule 9 - Consolidated Schedule of Revenue and Expenses For the year ended March 31, 2018

Budget 2018 2017 (Note 21) Revenue Federal Government: (Note 16) Justice Canada 509,727 509,727 507,790 Corrections Services Canada 600,000 526,938 554,351 Provincial Government: Sask Ministry of Justice 580,600 501,375 473,925 Sask Ministry of Corrections, Policing and Public Safety 240,800 209,672 224,885 Other Sources 26,000 31,737 13,138 Transfer from Administration (Schedule 8) - - - Total Revenue 1,957,127 1,779,448 1,774,090 - Expenses Salaries and benefits 1,516,648 1,332,397 1,352,635 Travel and vehicle operations 137,189 121,314 115,857 Boards, commissions and coordinator meetings 8,000 - 2,311 Stationary, materials, tools and supplies 18,900 14,796 23,905 Community workshops and training 11,000 39,310 5,700 Amortization of tangible capital assets - 3,605 11,616 Facilities, rent, utilities and land use (Note 14) 69,340 84,727 82,593 Professional fees 4,000 14,816 6,000 Bank charges and interest 4,000 2,853 3,027 Information technology services (Note ??) 3,752 19,200 19,680 Recruitment and relocation 15,200 1,056 547 Other costs 24,000 5,339 6,977 Insurance 6,000 6,425 6,508 Repairs and Maintenance 16,000 9,262 5,024 Elders and cultural activites 22,000 29,060 37,581 Staff development and functions 5,600 3,913 3,757 Food and kitchen supplies 25,000 36,649 32,185 Telephone and internet service 8,100 30,452 22,366 Client activities and supplies 8,700 25,085 18,637 Administration and program management costs (Note 18) 53,698 77,354 63,750 Total Expenses 1,957,127 1,857,615 1,820,655

Annual Surplus (Deficit) - (78,166) (46,566)

24 REVENUES AND EXPENSES* ANNUAL SURPLUS (DEFICIT)*

($ MILLIONS) ($ THOUSANDS) Revenue Expenses 100 1500 1200 80 900 600 60 300 0 40 -300

20 -600 -900 0 -1200 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

ACCUMULATED SURPLUS (DEFICIT)* UNRESTRICTED DEFICIT*

($ MILLIONS) ($ MILLIONS) 6 2.5

2.0 5 1.5 1.0 4 0.5 3 0.0

-0.5 2 -1.0 -1.5 1 -2.0 0 -2.5 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

NET DEBT* BANK INDEBTEDNESS*

($ MILLIONS) ($ MILLIONS) 10 8

7 8 6 5 6 4 4 3

2 2 1 0 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

ACCOUNTS RECEIVABLE* ACCOUNTS PAYABLE AND ACCRUED LIABILITIES*

($ MILLIONS) ($ MILLIONS) 10 4.0 3.5 8 3.0

6 2.5 2.0 4 1.5 1.0 2 0.5 0 0.0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

25 DUE FROM MEMBER FIRST NATIONS* DUE TO MEMBER FIRST NATIONS*

($ MILLIONS) ($ MILLIONS) 2.5 2.5

2.0 2.0

1.5 1.5

1.0 1.0

0.5 0.5

0.0 0.0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

DEFERRED REVENUE* PURCHASE OF TANGIBLE CAPITAL ASSETS*

($ THOUSANDS) ($ THOUSANDS) 6000 2500 5000 2000 4000 1500 3000

2000 1000

1000 500

0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

LONG TERM DEBT* AMORTIZATION OF TANGIBLE CAPITAL ASSETS*

($ THOUSANDS) ($ THOUSANDS) 3000 1000

2500 800

2000 600 1500 400 1000 200 500

0 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

TANGIBLE CAPITAL ASSETS* EQUITY IN TANGIBLE CAPITAL ASSETS*

($ MILLIONS) ($ MILLIONS)

5 4.0 3.5 4 3.0

3 2.5 2.0 2 1.5 1.0 1 0.5

0 0.0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 26 PADC MANAGEMENT COMPANY LTD SUMMARY OF FINANCIAL ACTIVITIES AND CHANGE IN SURPLUS For the year ended March 31, 2018 (in dollars)

Surplus Schedule Revenue Expenses (Deficit)

1 Education Second Level Services 1,541,871 1,525,693 16,178 1 First Nations Government and Administration 5,570,444 4,495,181 1,075,263 1 Women's Commission 266,885 275,761 (8,876) 1 Tribal Council Funding 500,000 502,096 (2,096) 1 Treaty Defence 184,986 60,675 124,311 1 Daycare Capital - Renovations 202,587 - 202,587 2 Engineering and Technical Services 3,446,210 3,446,733 (523) 2 Technical Services Contributions 862,088 899,206 (37,118) 2 Post Secondary Education 1,298,290 1,291,665 6,624 2 Economic Development 1,219,912 1,219,841 71 2 Community Development Corporation 402,017 418,231 (16,214) 2 Band Employee Benefits 281,716 343,104 (61,388) 3 Sakwatamo Lodge 1,433,621 1,085,638 347,983 3 Urban Community Action Program for Children 80,946 81,031 (85) 3 Community Justice 779,429 776,142 3,287 3 Justice Alternative Measures 213,108 200,987 12,121 3 Spiritual Healing Lodge 530,727 629,607 (98,881) 3 Addictions Research and Treatment 505,630 499,909 5,721 4 Justice Projects 281,556 247,272 34,284 4 Forestry 2,876,022 2,875,448 573 4 Fire Smart - Fuel Management 1,723,180 1,731,333 (8,153) 4 Women's Commission Play and Learn Daycare 425,694 471,883 (46,189) 4 Special Education Indirect Services 2,096,682 2,099,577 (2,895) 4 Sports, Culture and Recreation 907,161 890,381 16,780 5 Education New Paths 7,627,513 7,617,551 9,962 5 Special Education RMO Direct Services 17,138,667 17,136,753 1,913 5 Education - First Nations Student Success Plan 8,466,064 8,432,684 33,380 5 Urban Services 1,328,997 1,322,352 6,646 5 Special Projects 4,887,577 4,760,754 126,822 5 First Nations Housing Initiative 11,306,794 11,306,794 - 6 Health Transfer 7,808,992 7,944,718 (135,726) 6 Child Care and Education Centre 4,084,938 3,699,684 385,254 6 Sprucelodge Boarding Home 3,052,062 3,059,483 (7,421) 6 Capital - Sakwatamo Lodge Addition 513,475 513,475 - 6 Information Technology Services 496,228 440,801 55,426 7 Health and Social Development 7,983,398 7,900,197 83,201 7 Education - School Evaluations 83,838 72,096 11,742 Amortization of tangible capital assets - 746,542 (746,542)

MARCH 31, 2018 TOTALS 102,409,304 101,021,280 1,388,024

27 202,587

1,508 59,167

202,587 - 202,587 500,000 502,096 184,986 60,675 124,311 CTIVITIES AND SURPLUS Schedule 1 3,000 4,200 14,628 51,491 49,014 39,568 11,977 101,884 151,750

500,000 502,096 (2,096)

77,708 36,000 29,549 66,737 20,640 48,187 350,003 208,025 290,653 128,601 429,000 215,489 502,152 150,127 3,851,468 1,294,461 55,135 184,986 60,001 266,885 275,761 (8,876)

8,640 ices Government Commission Funding Defence Capital 13,289 21,401 27,050 16,178 135,522 439,885 1,541,871 1,541,871 1,525,693

35,045 131,478 476,369 903,471 Education SecondEducation Nations First Women’s Council Tribal Treaty Daycare 5,570,444 320,015 4,495,181 1,075,263

estivals, Community Events PADC MANAGEMENT COMPANY LTD. - SCHEDULE OF FINANCIAL A LTD. - SCHEDULE COMPANY MANAGEMENT PADC 31, 2018 ended March the year For Revenue Aboriginal Affairs and Northern Development Canada Program Management Costs and Fees Facility and Vehicle RentalsOther Sources Transfers To (From) Level Serv Total Revenue Expenses and Commissions MeetingsChiefs, Boards Assembly Annual Assemblies AFN and FSIN Sector Meetings and Per Diems Contributions to Chiefs' Salary Community Consultations, Workshops and Training PAGC Tribune Supplies, Printing, Postage and Rentals Stationary, 33,829 Telephone Office Rental, Utilities and Land Use Other Costs Audit, Legal and Consulting Fees and cultural activitiesElders 524,515 55,660 Fine Arts and Language F Donations, Advertising,and PromotionsAwards, Travel, Staff Development and Events Salaries and Empoyee Benefits (100,000) Bank Charges and Interest Recruitment and RelocationCommunity events and sponsorships Facilities Operations 49,458 connectivitySchool Central Vehicle OperationsInsurance, Repairs and Maintenance Information Technology Services Total Expenses (Deficit) Annual Surplus 75,932 777 92,412 31,058 616,713

28 281,716

5,113 3,600 402,017

343,104 343,104 281,716 (61,388) 960 19,431 20,720 48,057 994,090 1,219,912 40,200 327,825

4,073 418,231

402,017 (16,214) CTIVITIES AND SURPLUS Schedule 2 1,854 1,447 1,440 76,088 15,290 77,834 30,086 308,003 779,625 1,280,819 Post-Secondary Post-Secondary Economic Community Dev. Band Employee

128,360 37,419 1,626 6,598 1,219,841 1,219,912 71 862,088 737,236 899,206 ntributions Corporation Benefits Development Education

1,291,665 1,298,290 6,624 Technical Services Technical Services (523) 160,733 452,737 120,103 472,293 175,432 3,206,787 3,446,210 3,446,733 Engineering & Engineering

17,471 862,088 (37,118) PADC MANAGEMENT COMPANY LTD. - SCHEDULE OF FINANCIAL A LTD. - SCHEDULE COMPANY MANAGEMENT PADC 31, 2018 ended March the year For Revenue Aboriginal Affairs and Northern Development Canada Northern Lights Community Development Corporation Canada Mortgage and Housing Corporation Sask. Indian Institute of Technologies Technical ServicesOther Sources/Deferred Revenue/Recoveries Co Total Revenue Expenses Salaries and Benefits 78,690 Travel and Vehicle Operations Telephone Stationary, Books, Tools, Supplies and Printing Flow-through FundingCEDO Office Rental, Utilities and Land Use Administration Information Technology Services Other CostsGrant-in-LieuCapital Capacity Development Condition Reporting SystemsAsset Housing Inspections SystemsDatabase and GIS Fire Prevention and Training Building Facility Maintenance Emergency Preparedness CRTP Hosuing Workshops and Training Water/Wastewater Circuit Rider TrainingWater/Wastewater Operator Continuing Education Preparedness Regional ForumEmergency 151,355 and PreventionFire Safety Maintenance Management Systems ResponseWildfire 157,470 Student Allowances and Tuition 51,970 23,739 63,300 Total Expenses 214,369 524,609 (Deficit) Annual Surplus 270,312 717,007 161,970 52,037

29 5,886 2,868 3,798 2,254 2,381 5,462 80,640 501,832

7,704 9,262 3,789 5,874 2,853 4,789 17,482 23,955 25,499 24,000 13,621 37,367 28,094 526,938

15,013 555 13,375

307,825 505,630 1,707 499,909 5,721 1,397 7,640 6,111.23 CTIVITIES AND SURPLUS Schedule 3 690 5,760 421,256 7,162 56,184 530,727 629,607 (98,881) 270 476 331,880 447,549

176,480 36,628 5,760 10,608 162,143 7,252

213,108 200,987

12,121 1,355 3,500 12,000 PC Justice Measures Lodge Healing Addictions 120,367 5,244 11,520 55,020 13,692 779,429 27,723 776,142 541,830 3,287 9,908 5,771 3,000 7,386 8,159 18,530 41,463 10,560 10,732 17,885 24,837 14,388 58,500 11,521 25,678 531,758 150,000 347,983 1,283,621 1,433,621 1,085,638 Sakwatamo Urban Community Alternative Spiritual Gambling 2,791 8,936 1,180

3,442 75 80,946 81,031 47,827 (85) PADC MANAGEMENT COMPANY LTD. - SCHEDULE OF FINANCIAL A LTD. - SCHEDULE COMPANY MANAGEMENT PADC 31, 2018 ended March the year For Revenue Health Canada - FNIHB Saskatchewan Justice Justice Canada and Policing Corrections, Public Safety Sask. Corrections Services Canada Lodge Agency Canada Health Public Federation of Sask. Indian Nations Other Sources Total Revenue 150,000 CA Expenses Board Meetings, Orientation and Training Elders Services and Supplies Salaries, Benefits and Casual Wages Travel, Training and Workshops Materials, Supplies and Equipment Consultation and Accreditation Staff Development, Workshops and Recruitment Professional Fees Telephone Intranet/IT Services Administration and Bank Charges 80,946 Insurance Facility and Office Rent, General AdministrationBank Charges and Interest Vehicle Operations and Purchases Utilities Maintenance, Repairs and Renovations 135,562 Food and Kitchen Supplies Laundry, Linen and Janitorial Sewer, Water and Road Services Staff Certification/Recruitment and Retention Clinical Services Expenses Total Annual Surplus(Deficit)

30 402,548 269,693.08 345,689.39

17,406 186,123 2,096,682 ecial Education Culture Sports,

17,050 3,245 4,320 248,492 41,633 44,163 907,161 164,588 890,381 16,780 5,291 16,885 335,358 209,668 78,976

71,832 12,793 14,400

256,121 188,297 133,593 2,096,682 1,186,489 2,099,577 (2,895) CTIVITIES AND SURPLUS Schedule 4 188,521 Smart Daycare Indirect Services & Recreation 1,134 14,678

12,357 425,694 366,397 471,883 (46,189) 3,226 4,006 2,400 16,245 38,996 24,552 25,200 854,275 115,948 2,021,147 2,564,890

26,943 3,814 1,200 90,336 34,464 44,775 1,412,106

1,723,180 1,723,180 21,000 1,731,333 (8,153) 5,352 27,948 81,296 58,595 53,802 53,579 34,284 281,556 247,272 Justice Fire Forest Women's Comm. Sp 600 2,876,022 2,875,448 573

airs and Maintenance PADC MANAGEMENT COMPANY LTD. - SCHEDULE OF FINANCIAL A LTD. - SCHEDULE COMPANY MANAGEMENT PADC 31, 2018 ended March the year For Revenue Aboriginal Affairs and Northern Development Canada Sask. Lotteries/Sports Council JusticeSaskatchewan Justice CanadaSask. Environment Sask. Ministry of Education ProjectsOther Sources Total Revenue ForestryExpenses Courtworkers Program Coordinator Family Violence Sandy Bay Alternative Measures Fire Other Justice Services Sports and Recreation Boards 169,495 Sports Development, Cultural Activities and Tournaments Sask FN Games Summer/Winter Forest Fire Suppression Training and workshops 84,114 Remediation ProjectsEnvironmental Board Meetings, Orientation and Training Salaries and Benefits Travel, Recruitment and Vehicle Operations Materials and Supplies Telephone Intranet/IT Services Food and Kitchen Supplies Renovations, Rep Laundry and Janitorial Administration Office, Facility Rental, Land Use, Insurance and Utilities Community Consultations and Professional Fees Expenses Total Annual Surplus(Deficit) 63,747 16,238 48,300

31 217,182 641,185 15,276,365 10,448,427

8,468 12,464 80,000 14,613 10,457 324,578 4,370,589 4,465,407

(3,969,571)

11,306,794 11,306,794 - 93,265 76,719 es Projects Housing Init. 992,520 1,235,732

169,345 4,887,577 4,760,754 126,822 CTIVITIES AND SURPLUS Schedule 5 401,196 501,845 5,862,390 1,667,253 Student Urban Special Nations First

1,328,997 1,322,352

192,410 6,646 35,116 110,596 783,881 167,783 Services Success Plan Servic 16,039,378 16,882,527

8,466,064 66,635 186,478 8,432,684 8,466,064 33,380 5,517 9,962 20,560 194,790 118,204 127,808 253,598 145,087 7,627,513 7,627,513 1,164,318 5,587,669 7,617,551 Education Education Special FN

17,138,667 17,136,753 1,913 PADC MANAGEMENT COMPANY LTD. - SCHEDULE OF FINANCIAL A LTD. - SCHEDULE COMPANY MANAGEMENT PADC 31, 2018 ended March the year For Revenue Aboriginal Affairs and Northern Development Canada Saskatchewan Indian Institute of Technology First Nations Trust Other Sources/Deferred Revenue Total Revenue New Paths Expenses Direct School Libraries Development Physical Activity for Life Special Education Developments Ongoing Administrators Professional Development Language and Culture Consuitant New Path Safe and Caring Schools 21st Century Learning Technologies Housing Construction Costs First Nations School Projects School Salaries and Benefits Consulting Fees 256,140 Learning Materials and Assistive Technologies Other Costs Performance Measurement Numeracy and Literacy Early Literacy Administration Urban Employment and Training Kids First Program Casino funds distribution Gathering Veterans Summit NRTA RCMP Housing Northern Sask. Trappers Convention and Table Nuclear Waste Studies Expenses Total Annual Surplus(Deficit)

32 1,191 15,562 40,733 316,181

513,475 CTIVITIES AND SURPLUS Schedule 6 496,228 37,135 496,228 440,801 55,426 1,026,089

513,475 513,475 513,475 - 56,798 52,978 16,178 158,760 127,485 220,369 1,544,315 2,491,922 2,728,821

3,052,062 3,059,483 7,468 30,000 (7,421) er Centre Education Home Boarding Capital Services IT 83,894 38,508 73,638 107,477 908,955 251,861 620,258 607,481 251,540 286,500 231,045 539,106 143,427 327,120 (135,726) 7,701,515 7,808,992 2,248,904 1,332,481 7,944,718 Health & Child Care Sprucelodge Lodge Sakwatamo

4,084,938 3,044,594 3,699,684 48,701 338,295 385,254 d maintenance PADC MANAGEMENT COMPANY LTD. - SCHEDULE OF FINANCIAL A LTD. - SCHEDULE COMPANY MANAGEMENT PADC 31, 2018 ended March the year For Revenue Heallth Canada - FNIH First Nations Child and Family Agencies Services Government of Saskatchewan Other Sources/Deferred Funding Transf Total Revenue Expenses Direct Management Costs Nursing Supervision Environmental Health Officers Program Consultants Direct Nursing FN Flow-Through Funds Mental Wellness Suicide Prevention Green Plan - Water Quality Technicians First Nations' Governance Audit and Legal Fees Administration/Management Other Costs/MAR Insurance Office Rental, Land Use, Janitorial and Utilities Child Care Workers Student Activities Engineering an Household/Kitchen Vehicles School Teachers School Operations and Maintenance Call Center Transportation and Accomodations TransportationPatient and Transportation Accomodations Patient Salaries and Benefits Travel and Staff Development Expenses Total Annual Surplus(Deficit) 1,579,835 453,559

33

- - - - CTIVITIES AND SURPLUS Schedule 7 - - - 72,096 83,838

- - - 8,913 78,456 33,053 14,138 90,548 74,286 50,967 89,647 41,939 83,201 483,238 113,472 425,500 398,915 101,961 367,010 180,653 5,193,484 2,306,676 7,983,398 1,253,300 2,025,225 1,038,905 1,108,911 7,900,197 Health & Social School Education -

83,838 72,096 11,742

18 18 Development Evaluations PADC MANAGEMENT COMPANY LTD. - SCHEDULE OF FINANCIAL A LTD. - SCHEDULE COMPANY MANAGEMENT PADC 31, 20 ended March the year For Revenue Aboriginal Affairs and Northern Development Canada Contributions Heallth Canada - FNIHB Sask. Indian Institute of Technologies Other Sources Deferred Revenue/Refundable to Funding Agency Total Revenue Expenses Homecare Nursing First Nations Childcare Initiative Awareness HIV/AIDS Diabetes Program Dental Therapy Headstart Prenatal Nutrition Maternal Child Health Immunization Strategy Threat and Risk Security, Optometrist Consultations Gathering NNADAP Fetal Alcohol Syndrome Community Safety and Healing Residential School Project Nutrition North E-Health Project Tobacco Strategy Jordan's Principle Other CostsConsulting Services/Other CostsDental Transporations Expenses Total (Deficit) Annual Surplus 52,716 10,111 341,571

34 PAGC O F F I C E S NORTHWEST TERRITORIES SASKATCHEWAN

FOND DU LAC 229 FOND DU LAC 227 CHICKEN 225 CHICKEN LAKE ATHABASCA 226 STONEY FOND DU LAC FOND DU LAC SEASONAL ROAD BLACK 233 228 LAKE CHICKEN FOND DU LAC FOND DU LAC 231 232 224 SASKATCHEWAN

ATHABASCA

MANITOBA

SEASONAL

SASK  ROAD

ALBERTA

RIVER

RESERVE F.N. BAND NAME WOLLASTON NO. NAME AND NUMBER ACTIVE 359 BLACK LAKE CHICKEN 224 *** LAKE CHICKEN 225 *** LAC LA HACHE CHICKEN 226 CREE 220 350 CUMBERLAND BUDD'S POINT 20D HOUSE CUMBERLAND 20 *** MUSKEG RIVER 20C PINE BLUFF 20A PINE BLUFF 20B 351 FOND DU LAC FOND DU LAC 227 *** FOND DU LAC 228 FOND DU LAC 229 REINDEER CREE  FOND DU LAC 231 FOND DU LAC 232 LAKE FOND DU LAC 233 352 HATCHET LAKE LAC LA HACHE 220 *** LAKE 370 JAMES SMITH CUMBERLAND 100A THOMAS JAMES SMITH 100 *** CLARKE 353 LAC LA RONGE BITTERN LAKE 218 204 FOUR PORTAGES 157C FOX POINT 157D FOX POINT 157E GRANDMOTHER'S BAY 219 *** KITSAKIE 156B *** LAC LA RONGE 156 *** LITTLE HILLS 158  LITTLE HILLS 158A 914 LITTLE HILLS 158B LITTLE RED R. 106C *** LITTLE RED R. 106D *** MORIN LAKE 217 *** SOUTHEND OLD FORT 157B 200 POTATO RIVER 156A STANLEY 157 *** STANLEY 157A NEMEIBEN (SUCKER) RIVER 156C *** 354 MONTREAL LAKE MONTREAL LAKE 106 *** MONTREAL LAKE 106B *** 355 PETER AMISK LAKE 184 *** BALLANTYNE BIRCH PORTAGE 184A CHURCHILL MIROND LAKE 184E RIVER GRANDMOTHER'S BAY PELICAN NARROWS 184B *** 219 SANDY NARROWS 184C WAPASKOKIMOW 202 SOUTHEND 200 *** Sandy Bay STURGEON WEIR 184F *** WOODY LAKE 184D SUCKER RIVER STANLEY 156C 135 WAPASKOKIMOW (SANDY) 202 *** 157 STANLEY LaRonge FOUR PORTAGES WOODY LAKE KIMOSOM PWATINAK (DES) 203 *** 184D OLD FORT DENARE BEACH 30 *** KITSAKIE 156B LAC LAC LA RONGE 156 LA RONGE MIROND LAKE THOMAS CLARKE (KINOSAO) 204 *** PELICAN 184E KISKACIWAN 208 *** 165 NARROWS 184B 356 RED EARTH CARROT RIVER 29A *** MORIN LAKE SANDY NARROWS POTATO RIVER RED EARTH 29 *** 217 BIRCH PORTAGE LITTLE HILLS 357 SHOAL LAKE SHOAL LAKE 28A *** FOX POINT 184A CARROT RIVER 27A KIMOSOM Flin Flon 360 STURGEON LAKE STURGEON LAKE 101 PWATINAK *** 203 DENARE BEACH 30 STURGEON LAKE 101A 358 WAHPETON WAHPETON 94A *** AMISK LAKE WAHPETON 94B 184 AMISK 2 LAKE  106

STURGEON WEIR Sturgeon 184F Landing

PINE BLUFF MUSKEG MONTREAL LAKE RIVER 106 BUDD'S POINT 20D RIVER CUMBERLAND BITTERN LAKE 218 20

106 123  SHOAL LAKE CARROT LITTLE RED RIVER RIVER 106D CARROT RIVER 28A 27A MONTREAL LAKE LITTLE RED RIVER SASKATCHEWAN 29A 55 RED EARTH 106B 106C 55 STURGEON STURGEON LAKE 29 101A 101 WAHPETON WAHPETON JAMES SMITH 94A 94B 100 KISKACIWAN PRINCE 208 ALBERT CUMBERLAND 100A 01025 50 100 kilometres MELFORT Prince Albert Grand Council Chief Joseph Custer Reserve #210 PO Box 2350, Prince Albert, SK, S6V 6Z1 voice: 306.953.7200 fax: 306.764.6272 [email protected] www.pagc.sk.ca