2014 neonet annual report
TRANSCRIPT
Table of Contents
Chairperson’s MessageCorporate ProfileOrganizational StructureBoard of DirectorsCommitteesStaffMembershipsPartnershipsProjects Infrastructure Broadband Matachewan First Nation Broadband Expansion Application Broadband for E-Business and Marketing NEOnet Geographic Information System Productivity and Innovation Centre Small Business Technology Assessment, Monitoring, and Planning Education and Awareness Community Presentations Communications Community Economic Development Policy StatementLooking ForwardProject FundersAuditor’s ReportFinancial Statements
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On behalf of the North Eastern Ontario Communications Network Inc.’s (NEOnet) Board of Directors, it is my pleasure to present the 2014 Annual Report to you, our members, partners and stakeholders. This report highlights NEOnet initiatives, which serve to enhance Information and Communications Technology (ICT) infrastructure, services and awareness across our catchment spanning 200,000 square kilometres and sixty communities from Temagami to the James Bay Coast, and Foleyet to the Quebec border.
NEOnet was proud to welcome the Productivity and Innovation Centre (PIC) into its offices in early 2014. NEOnet along with the Timmins Economic Development Corporation and a number of other community partners are supporting the development of the centre, which provides assistance to area small and medium-sized enterprises (SMEs) with respect to the evaluation of productivity, implementation of strategies to improve productivity, and commercialization of products. NEOnet’s long-term goal is the establishment of a Centre of Excellence in Productivity and Innovation. In 2014, PIC developed a productivity assessment tool and trained regional consultants on its implementation, and established strong professional relationships within the communities it serves. In 2015, PIC will be in full swing so keep an eye out for new events, workshops, and partnership opportunities.
NEOnet’s Broadband for E-business and Marketing (BEAM) initiative distributed a second round of funding – supported by FedNor – increasing the number of SMEs receiving assistance to over three hundred. The BEAM initiative provides SMEs with financial assistance in the development of a web presence, branding materials, and the incorporation of e-commerce solutions within the business’ website, as well as an educational component that provides participants with valuable insight into website maintenance, marketing, and social media. I’m excited to inform you that a third round of funding was secured in late 2014 and NEOnet will continue to deliver this initiative in 2015. In addition to the BEAM initiative, NEOnet’s commitment to improving the competitiveness of area SMEs through the adoption of ICT resulted in the development and approval of the Small Business Technology Assessment Monitoring and Planning (STAMP) project in 2014. This project will assist area businesses in reviewing how their current use of technology impacts short and long-term business goals,
as well as direct them to technological solutions that will aid them in achieving their goals. This initiative is funded by FedNor and will certainly be one to watch in 2015.
In the past year, NEOnet continued to implement broadband infrastructure and ICT adoption projects. NEOnet along with Matachewan First Nation and NorthernTel completed the deployment of high-speed Internet throughout the community, with a take-up rate nearing 100 percent. In addition to this broadband initiative, NEOnet continued to research and identify gaps in high-speed Internet availability throughout the catchment area in preparation of issuing requests for proposals (RFPs) in 2015 with the goal to reduce service gaps. With respect to ICT adoption, NEOnet and twenty-one community partners launched the NEOnet Geographical Information Systems (GIS) project, funded by FedNor and Northern Ontario Heritage Fund Corporation (NOHFC), in June 2014. In the months that followed, project partners began the digitization of historical information and cataloging of municipal infrastructure. The GIS project is scheduled to run through to the summer of 2016.
It has been another great year for NEOnet, one that could not have been accomplished without the dedication of our Board of Directors and staff, and of course the support of FedNor and NOHFC. NEOnet’s staff is responsible for moving these projects forward on a daily basis by working with our funders, partners and stakeholders. Its wealth of knowledge and skills assist the organization in implementing its vision.
Finally, I thank the Board of Directors. Your varied experience, knowledge and professional networks have provided NEOnet with the resources necessary to continue improving the region’s ICT infrastructure and awareness.
On behalf of the Board of Directors, I thank our project partners for another productive and successful year, and I wish you continued success in 2015.
Sincerely,
Denis Bérubé, NEOnet Chair
Chairperson’s Message
Corporate ProfileNEOnet is a non-profit organization, established in 1999, that has since acted as the region’s ICT champion. Its mandate is to promote and develop the three pillars of the ICT sector: infrastructure, application, and education and awareness.
NEOnet’s catchment area covers sixty communities in 200,000 square kilometres. The distance combined with the low population density (0.5 persons per square kilometre) present a significant challenge to improving the telecommunications landscape in our area. NEOnet has helped reduce the digital divide in rural and remote communities. Its initiatives have stimulated over 120 million dollars in ICT infrastructure development within the region.
Organizational Structure
Board of Directors
Executive Committee
Director of Operations
Bilingual Regional Outreach Coordinator
Project Facilitator
Project Coordinator
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Standing CommitteesExecutive Committee
The Executive Committee advises the Board on matters of finance, policy and mandated activities.
Denis BérubéDr. Claude VézinaGerry TalbotGérard BruneauDan Martel
Personnel Committee
The Personnel Committee is a sub-committee of the Executive Committee. It advises the Board on matters of human resources.
Denis BérubéDr. Claude VézinaGerry TalbotGérard BruneauDan Martel
Ad Hoc CommitteesAd Hoc Committees help guide and implement projects, and provide recommendations to the Board of Directors for binding decisions.
BEAM Review Committee
Denis BérubéGérard BruneauLinda CôtéGuy GuindonPaul Ouimette
STAMP Steering Committee
Denis BérubéGérard BruneauGerry Talbot
CED Policy Steering Committee
Dan MartelPaul OuimetteGerry Talbot
Board of DirectorsNEOnet’s dedicated Board of Directors governs and provides direction to the organization. The Directors represent the region’s economic development, education, health, industry, and human and social services organizations. NEOnet extends its sincere thanks to its Board of Directors for their service in 2014.
Denis Bérubé, ChairpersonNorth Claybelt Community Futures Development Corporation (CFDC)
Dr. Claude Vézina, Vice ChairTimmins and District Hospital
Gerry Talbot, TreasurerGogama Local Services Board
Gérard Bruneau, Director at LargeNorthernTel
Dan Martel, Director at LargeOntera
John Bernstein, DirectorSouth Temiskaming CFDC
Linda Côté, DirectorIndependent
Guy Guindon, DirectorTimmins and District Hospital
Steve Kidd, DirectorEastlink
Paula Mangotich, DirectorKirkland and District Community DevelopmentCorporation
Sara Munroe, DirectorNorthern College of Applied Arts and Technology
Paul Ouimette, DirectorAecon
Andy Yu, DirectorCity of Timmins
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AeconCity of Temiskaming ShoresCity of TimminsCochrane District Social Services Administration BoardDavidson de Laplante Insurance Brokers Ltd.District School Board Ontario North EastEastlinkGogama Local Services BoardKirkland and District Community Development CorporationLucid NetworksM-Tel Consulting ServiceMunicipality of TemagamiMunicipality of Mattice-Val CôtéNord-Aski Regional Economic Development CorporationNorth Claybelt CFDCNorth Eastern Ontario Family and Children’s ServicesNorthern College of Applied Arts and TechnologyNorthernTelOnteraRoss Pope LLP
South Temiskaming CFDCThe Venture CentreTimmins and District HospitalTimmins Chamber of CommerceTimmins Economic Development CorporationTown of CochraneTown of EnglehartTown of HearstTown of Iroquois FallsTown of KapuskasingTown of MoosoneeTownship of Black River-MathesonTownship of EvanturelTownship of JamesTownship of Larder LakeTownship of MatachewanTownship of McGarryTownship of MoonbeamTownship of OpasatikaTownship of Val Rita-Harty
Staff
NEOnet operated with four core staff in 2014: Director of Operations, Bilingual Regional Outreach Coordinator, Project Facilitator, and Project Coordinator. The organization did not engage project-specific contract personnel.
The team is responsible for moving ICT projects forward with direction from its Board of Directors. NEOnet recognizes its staff for their continued efforts and dedication.
Chris McLaughlin, Director of OperationsCora-Lyne Ethier, Bilingual Regional Outreach CoordinatorSharon Jones, Project FacilitatorLance Pawluk, Project CoordinatorLaura Imhoff, Project CoordinatorAna Blouin, Project Development Manager, PIC
Memberships
NEOnet extends its sincere thanks to its 40 members, who made financial and in-kind contributions to NEOnet in 2014.
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AdnetAdult Learning Centre Cochrane and Iroquois FallsAeconArmstrong Township Public LibraryAssociation Canadienne Française de l’OntarioAteliers des pionniers et pionnières du NordBell CanadaBeyond WirelessBlack River-Matheson Public Library and CAP sitesBlue Sky NetworkCameron GraphicsChapleau Public LibraryChartwell Château Georgian Retirement ResidenceCity of Temiskaming ShoresCity of TimminsClearlogic Consulting ProfessionalsCobalt Public Library and CAP siteCochrane District Social Services Administration BoardCochrane Public LibraryCollège BoréalCompanion RestaurantComputers for SchoolsConnaught CAP siteConseil scolaire catholique de district des Grandes RivièresCor ConsultingCTVDavidson de Laplante Insurance Brokers Ltd.District of Timiskaming Social Services Administration BoardDistrict School Board Ontario North EastEastlinkElk Lake Public LibraryEnglehart Public Library and CAP siteExtendicare Kirkland LakeFauquier-Strickland Municipal LibraryFedNorFoleyet Local Services BoardFoleyet Metis Pathfinders CAP siteFrancine J Wesley Secondary School
Gogama CAP siteGogama Local Services BoardHearst Public LibraryIroquois Falls CAP siteIroquois Falls Community Development TeamIroquois Falls Public Library and CAP siteJ. R. Nakogee Elementary SchoolKap Information Technology ServicesKapuskasing Public LibraryKirkland and District Community Development CorporationKirkland Lake CAP sitesLarder Lake Public LibraryLatchford Public LibraryLogikal CodeLucid NetworksM-Tel Consulting ServicesMatachewan Community CentreMatachewan First NationMattagami First NationMattagami First Nation CAP siteMattice-Val Côté Public LibraryMcGarry Public Library and CAP siteMoonbeam Public LibraryMoose Cree Education AuthorityMoosonee Native Friendship CentreMunicipality of Charlton and DackMunicipality of Mattice-Val CôtéMunicipality of TemagamiMuskoka Community NetworkNational Research Council (Industrial Research Assistance Program)NetCentralNord-Aski Regional Economic Development CorporationNorth Centennial ManorNorth Claybelt CFDCNorthdale ManorNortheastern Catholic District School BoardNorthern College of Applied Arts and TechnologyNorthern Lights Library NetworkNorthern Ontario Heritage Fund Corporation
PartnershipsNEOnet gratefully acknowledges the support and participation of more than 150 public and private sector partners. Thanks to the cooperation of its partners, NEOnet remains an organization that is truly community-based.
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NorthernTelNorthernTel MobilityOntario Library Services – NorthOntario Ministry of Agriculture, Food and Rural AffairsOntario Ministry of Northern Development and MinesOntario Ministry of Tourism, Culture and SportOnteraOpasatika Public LibraryParolinkProductivity and Innovation CentreRamore Public Library CAP siteRoss Pope LLPSchumacher CAP siteSmooth Rock Falls Resource CentreSouth Porcupine CAP siteSouth Temiskaming CFDCSouthern Ontario Library ServicesSpruce Hill LodgeSultan CAP SiteTeck Centennial LibraryTeck Pioneer ResidenceTélécommunications XittelTemagami Public LibraryTemiskaming Shores and area Chamber of CommerceTemiskaming Shores Public LibraryThe Venture CentreTimiskaming Health UnitTimmins and District HospitalTimmins Chamber of CommerceTimmins Economic Development CorporationTimmins Native Friendship Centre CAP siteTimmins Public Library CAP siteTown of CobaltTown of CochraneTown of EnglehartTown of HearstTown of Iroquois FallsTown of Kapuskasing
Town of Kirkland LakeTown of LatchfordTown of MoosoneeTown of Smooth Rock Falls Public LibraryTown of TemagamiTownship of ArmstrongTownship of Black River-MathesonTownship of CaseyTownship of ChamberlainTownship of ColemanTownship of EvanturelTownship of Fauquier-StricklandTownship of GauthierTownship of HarleyTownship of HilliardTownship of HudsonTownship of JamesTownship of KernsTownship of Larder LakeTownship of Lebel (King Kirkland)Township of MatachewanTownship of McGarryTownship of MoonbeamTownship of OpasatikaTownship of Val Rita-HartyVal Rita-Harty Public LibraryVezina Secondary SchoolVianetVillage of GowgandaVillage of KenogamiVillage of SesekinikaVillage of Shining TreeVillage of ThornloeVillage of WestreeWahgoshig First NationWestern James Bay Telecom NetworkXplornetYuZhu Web Development
Partnerships (Continued)
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Projects
Infrastructure
Applications Awareness
NEOnet’s approach to large-scale project management echoes its mandate: it works with stakeholders to develop infrastructure, applications and awareness concurrently, so that funded projects are sustainable and encourage competition.
InfrastructureNEOnet has a mandate to encourage and facilitate private-public partnerships that result in better telecommunications infrastructure and ICT-related services in the region.
BroadbandSince inception, NEOnet and its public and private sector project partners have improved access to high-speed Internet across northeastern Ontario – with forty communities gaining access to high-speed Internet and over eight hundred small businesses gaining access to satellite Internet.
NEOnet is proud of its accomplishments, however it recognizes that there is still work to be done. In an effort to improve upon its successes, NEOnet along with Blue Sky Net and Muskoka Community Network have been working with private sector Internet Service Provides (ISPs) to establish the current state of broadband facilities available throughout northern Ontario. The resulting Broadband Expansion and Associated Infrastructure Mapping Analysis (BAIMap) project utilizes a geographical information system application to illustrate the availability of high-speed Internet and the variety of delivery mechanisms employed by the ISPs.
In determining what level of service should be considered high-speed, NEOnet and its partners defer to the Canadian Radio-Television and Telecommunications Commission (CRTC) decision of 2011 (Telecom Regulatory Policy CRTC 2011-291), which establishes 5 megabits per second (Mbps) download and 1 Mbps upload as the minimum requirement for Internet service to be consider high-speed. With this guideline in place, NEOnet analyzed the availability of high-speed Internet throughout the catchment culminating in a State of Broadband in Northeastern Ontario summit that took place in January 2015. The purpose of the summit was to bring all of the stakeholders together to highlight the current conditions and to discuss how to move forward with broadband infrastructure projects that will delivery high-speed Internet service that exceeds the CRTC guideline – an initial minimum service delivery of 10 Mbps download with scalability of up to 25 Mbps by 2020. NEOnet has established five broadband infrastructure project areas, including 1) Timmins – Matheson Corridor, 2) Cochrane – Hearst Corridor, 3) Moosonee/Moose Factory, 4) Matachewan – Kirkland Lake Corridor, and 5) Foleyet – Temagami Corridor. RFPs are under development for these projects areas and will be issued in early 2015. NEOnet anticipates that the total project costs will near 10 million dollars. NEOnet is optimistic that these projects will commence in fall 2015 and take less than two years to complete.
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NEOnet managed a broadband deployment project for Matachewan First Nation, which saw the installation of DSL service to over thirty-seven dwellings in the community. The project, supported by FedNor and Matachewan First Nation, wrapped up in March 2014. The strength of the Matachewan First Nation broadband solution is its sustainable design; the extension of fibre optic networks and provisioning of dedicated wireline broadband access via a high bandwidth expandable Ethernet IP/MPLS Network Core.
The service delivery architecture provides consistency in connection, sustainability of bandwidth and low latency to enhance the user experience on real time applications. The technology provides a service delivery platform that has the capacity, scalability and flexibility to meet the evolving needs of the community for not only broadband access, but also rural innovation and economic development through high bandwidth data services.
Matachewan First Nation Broadband Expansion
ApplicationNEOnet has a mandate to promote the development and innovative application of technology, especially as it pertains to the economic, cultural and social development of northeastern Ontario.
Broadband for E-Business and MarketingNEOnet’s BEAM initiative, supported by Fednor, offers a framework that helps SMEs define their objectives for technology application and encourages them to implement and maintain online operations by providing education and a subsidy at a rate of 75 percent up to a maximum of 5,000 dollars for eligible development costs.
NEOnet received one million dollars in funding from Fednor for BEAM I and II. BEAM II officially wrapped up in November 2014. Since its launch in 2011, the BEAM initiative supported 320 SMEs. Six months following exit from the program participants responded to NEOnet’s exit survey; 87 percent
of recipients reported they reached markets outside their locality, 44 percent reached other northern Ontario markets, 24 percent reached Ontario markets outside of northern Ontario, 13 percent reached Canadian markets outside of Ontario, 13 percent reached American markets, and 6 percent reached other international markets. NEOnet believes businesses must leverage the economic benefit of broadband access to remain competitive in today’s digital marketplace. BEAM has helped SMEs transform how they do business at home and abroad, tying the region to what has become a global marketplace.
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BEAM (Continued)NEOnet continues to review survey data and as required update the delivery of its program to ensure it correlates with area needs.
In November 2014, NEOnet received 500,000 dollars from Fednor for BEAM III. Since its launch, NEOnet conducted four introduction seminars with thirty SMEs and twelve consultations. The BEAM Review Committee has approved two BEAM III applications in 2014.
BEAM III provides funding for basic website design (maximum of 1,500 dollars), enhanced business operations (maximum of 2,500 dollars) and content and presentation (maximum of 1,000 dollars). Applicants are required to participate in an introductory seminar, a consultation and two workshops, available face-to-face and online.
BEAM continues to increase its regional representation to include communities from outside of Timmins. BEAM II has a regional representation of 43 percent; compared to 25 percent in BEAM I. Regional representation rates are estimated to increase in BEAM III.
NEOnet engaged a BEAM Aftercare Coordinator in early 2015 to monitor use of BEAM-funded solutions and help build capacity. Aftercare services are available to BEAM I, II and III recipients.
The following SMEs received funding from NEOnet’s BEAM initiative in 2014. Click on the images to access their websites.
5th Wheel Training InstituteDr. Chisholm OptometristsAccess Better Living Inc.A.C.E ContractingAlexander Cochrane & Sons Services
Advanced SecurityAesthetics by LineAlgoma Highlands Wild BlueberryAndorra LodgeBeach Garden Condominiums
Bliss Beauty BarBlue Haven LodgeBrigitte AugerBully SoftwareBurtons Fine Furnishings
Canoe PartsCasa Di Media ProductionsCochrane District Social Planning CouncilChico’s Fix It AllCompanion Hotel Motel
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Cor ConsultingCursor CommunicationsDecorative StrokesDorrington and AssociatesDoucet Power & Controls
Direct Specialty Industrial ServicesEvans, Bragagnolo & Sullivan LLPEnergie Kapuskasing EnergyEvocative LifestylesFlood’s Landing
FJL CPAsGood Time OutfittersGravity Health & ChiropracticGTC Equipment ServicesHearst Villa Inn & Suites
Holistic Health CentreHRmonizeJohn’s Neon SignsJoe Coholic Custom Furniture LTD.John’s Tackle Box
JR Timber Firewood and LumberK2D Technologies Inc.Kesagami Wilderness LodgeG. Lajoie Enterprises Ltd.Lemongrass Custom Floral & Home Décor
Les Chauves-SourientMaterials Joining Innovation CentreMoose Cree Group of Companies LPMCL Safety and TrainingMoose Horn Lodge
Murray Lake CottagesNagagami LodgeNorthern Corridor EFAPNoront Communication Contracting LTD.Northern Corridor Snowmobile Association
Northern Marble & Granite Co.O’Briens Classic GrillTemagami Daily BreadPearly Whites PlusPetersen Consulting
Picturesque StonePorcupine Canvas Innovative ProductsPure BotanicsStewart Realty Ltd. BrokerageRehab Plus Rehabilitation & Fitness Centre
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Renson Yard ContractorRental HouseRestore PhysiotherapyRheault DistilleryRay Perrier Music
S L Sheet MetalSteinberg & Mahn Ltd.SWM ContractingTemiskaming Festival of MusicTalbot Surveys Inc.
Tanny Convenience Store Gift & Flower ShopTimmins Police AssociationAbitibi Outfitters – Ultimate HuntsWannabe FishermanWhite Pine Lodge
Western James Bay Telecom NetworkWork Monster Inc.YPBS Consulting
NEOnet Geographic Information SystemThe 1.17 million dollar project, supported by FedNor, NOHFC and twenty-one community partners, aims to enhance a sustainable municipal GIS solution that supports municipal operations for communities that have not benefited from previous GIS projects. The project will lead to increased efficiencies in capital planning, zoning, permits and maintenance, as well as planning in the areas of tourism, economic development, health, education, and lifestyle. The partner communities continue to convert historical information (i.e. maps, parcels and community infrastructure) into digital form so they can be integrated into the GIS solution. All partners have access to basic road, sewer and parcel data. NEOnet and its partners will identify the highest priority project segments and move forward with RFPs in spring 2015. The GIS project is scheduled to wrap up in summer 2016.
Productivity and Innovation CentrePIC, supported by FedNor and NOHFC, opened its doors in April 2014 with a mission to deliver and help organizations access programming to realize operational efficiencies. Over sixty guests attended the centre’s grand opening, at Northern College within NEOnet – its permanent home. NEOnet along with the Timmins Economic Development Corporation and a number of other community partners are supporting the development of PIC.
PIC facilitates access to provincial/federal innovation programming through the Ontario Network of Entrepreneurs (ONE), Ontario Centres of Excellence (OCE), Industrial Research Assistance Program and other sources to assist with all stages of business development, from research and development (R&D) to commercialization.
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The centre is recognized as a member of ONE and continues to work with the Ministry of Research and Innovation and the Ministry of Economic Development, Employment, and Infrastructure to become a member of the Northern Technology Alliance and to be officially recognized as a Regional Innovation Centre.
During Small Business Week, PIC partnered with NEOnet to offer a Continuous Improvement workshop, hosted the Northern Ontario Innovation Information Forum WebEx, and presented the National Science and Engineering Research Council’s R&D Grant Funding Boosting Innovation workshop in collaboration with the Business Enterprise Centre, Natural Sciences and Engineering Research Council of Canada, and the Northern Ontario Applied Research Institute.
PIC launched its brand, including online forms, website and logo in 2014.
PIC funding covers up to 4,000 dollars (80 percent) of the cost of the operational assessment. The consultant selected by the firm from a database of fifteen qualified consultants uses a productivity assessment tool to review all aspects of the business’ operations and provides a report that outlines operational strengths and weaknesses and identifies opportunities to improve operational efficiencies.
Based on the recommendations of the productivity assessment, the firm can access up to 5,000 dollars (80 percent of eligible costs) in funding support toward modernizing equipment, management training to improve the work culture, and operational efficiencies among other things.
Organizations with a primary revenue from agriculture, clean technologies, construction, digital media & information technology, energy, environment, forestry, mining or manufacturing, may be able to access up to 9,000 dollars in total funding support to become more competitive and capitalize on new opportunities.
PIC (Continued)
Steering Committee
John BernsteinSouth Temiskaming CFDC
Patricia ButtineauGoldcorp Porcupine Gold Mines andTimmins Chamber of Commerce
Roxanne DaoustThe Venture Centre
Julie JoncasFar Northeast Training Board
Tori HansonNorthern College of Applied Arts and Technology
Kathy KeastNational Research Council Canada
Monique KoskiMillson Forestry Service
Ross MacDonaldTimmins Economic Development Corporation
Chris McLaughlinNEOnet
Jeff MolyneauxMaterials Joining Innovation Centre
Contact InformationAna Blouin, Project Development Manager(705) [email protected]
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Small Business Technology Assessment, Monitoring, and PlanningThe STAMP initiative, supported by FedNor, fosters adoption of innovative ICT applications, improving the competitiveness of area SMEs.
NEOnet issued a RFP in April 2014. The STAMP Steering Committee (link) reviewed the proposals and NEOnet engaged the services of Clearlogic Consulting Professionals to develop and test the STAMP assessment tool.
The consultants conducted two trial assessments in December 2014, with another to follow. The STAMP Steering Committee is working with its partners and Clearlogic Consulting Professionals to assess the effectiveness of the tool and report template prior to its launch in May 2015.
Third-party ICT specialists selected from northeastern Ontario’s talent pool will work with SMEs to develop short and long-term ICT goals, and support them in creating a strategic plan and IT adoption toolkit. Applicants will also receive information on other funding opportunities (e.g. PIC, BEAM, and IRAP’s Digital Technology Adoption Pilot Program). Eligible applicants will receive a subsidy at a rate of 75 percent for the first 5,000 dollars in consulting costs, and an additional 50 percent for the remaining 5,000 dollars.
Funding from FedNor in the amount of 300,000 dollars for STAMP will enable NEOnet to support a part-time position.
Education and AwarenessNEOnet has a mandate to increase awareness and adoption of information technology, thereby increasing demand for services and fostering a more competitive ICT environment.FedNor supports NEOnet’s education and awareness initiatives.
Community Economic Development Policy StatementBuilding on the 2013 Community Economic Development Technology Needs Assessment findings, NEOnet embarked on formalizing its approach to ICT projects. NEOnet and its partners recognize the impact ICT has on the overall health of the region’s local economies, and strive to further enhance opportunities for further ICT development.
NEOnet drafted its policy statement around community economic development in recognition that all of the corporation’s initiatives can be considered as vehicles for economic development in one form or another.
The underlying principle of the policy is that NEOnet believes that the region requires an ICT champion, and that this service is essential to community economic development across its catchment. This is true from the smallest communities to the largest cities. The policy was accepted by NEOnet’s Board of Directors and now guides the decision-making process with respect to new ICT projects.
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Community PresentationsNEOnet promotes greater awareness and adoption of technology through the delivery of educational and professional development events, both formal and informal. The organization delivers community presentations within its catchment area on ICT-related topics, including etiquette, Internet safety (for children and adults), writing for the Web, cyberbullying, e-commerce, and social media (for businesses and non-profit organizations). NEOnet continuously introduces new topics that correlate with community needs.
CommunicationsNEOnet’s external communications are guided by its communication plan and regional mandate. In 2014, the organization maintained bilingual communications throughout the region via its social networks (Facebook, Twitter and LinkedIn), website, and publications, including monthly Wired newsletters, quarterly project updates, and quarterly industry-specific newsletters. NEOnet features its resources (e.g. List of Northeastern Ontario Website Developers) on its website. The organization continues to have a good working relationship with regional media.
NEOnet installed exterior signage at its new home within Northern College in August 2014.
Looking ForwardNEOnet is excited about what 2015 has in store, as it works to build on the success achieved in 2014. NEOnet looks forward to working with its partners on the GIS project, delivering the BEAM III initiative, supporting the development of PIC, launching the STAMP assessment tool, and initiating broadband infrastructure projects designed to bring greater levels of high-speed Internet services to the catchment area. In addition, NEOnet’s Board of Directors will meet in the summer of 2015 to review the organization’s current projects and strategize on future projects, to ensure that the organization’s objectives are in line with those of the communities it represents.
At the heart of all NEOnet projects is the goal to increase the competitiveness of our northeastern Ontario communities, making them desirable locations to establish new businesses or enhance investment in existing operations. NEOnet accomplishes this goal through the development of the region’s ICT backbone and the promotion of ICT applications to area businesses and residents.
NEOnet’s vision for 2015 can be summed as enabling opportunities through ICT development.
Project Funders
Thank you!
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Auditor’s Report
NORTH EASTERN ONTARIO COMMUNICATIONS NETWORK INC.(Operating as NEOnet Inc.)
Financial Statements
Year Ended December 31, 2014
Auditor’s Report
NORTH EASTERN ONTARIO COMMUNICATIONS NETWORK INC.(Operating as NEOnet Inc.)
Index to Financial Statements
Year Ended December 31, 2014
Page
INDEPENDENT AUDITOR'S REPORT 1
FINANCIAL STATEMENTS
Statement of Financial Position 2
Statement of Revenues and Expenses 3
Statement of Changes in Net Assets 4
Statement of Cash Flow 5
Notes to Financial Statements 6 - 7
Schedule of Projects (Schedule 1) 8
Project Expenses (Schedule 2) 8
Auditor’s Report
Ross Pope LLPCPAs101 Cedar Street SouthTimmins, Ontario P4N 2G7
Telephone (705) 264-9484Fax: (705) 264-0788
Email: [email protected]
INDEPENDENT AUDITOR'S REPORT
To the Members of North Eastern Ontario Communications Network Inc. (Operating as NEOnet Inc.)
We have audited the accompanying financial statements of North Eastern Ontario Communications Network Inc.,(Operating as NEOnet Inc.), which comprise the statement of financial position as at December 31, 2014 and thestatements of revenues and expenses, changes in net assets and cash flow for the year then ended, and asummary of significant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordancewith Canadian accounting standards for not-for-profit organizations, and for such internal control as managementdetermines is necessary to enable the preparation of financial statements that are free from material misstatement,whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted ouraudit in accordance with Canadian generally accepted auditing standards. Those standards require that we complywith ethical requirements and plan and perform the audit to obtain reasonable assurance about whether thefinancial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in thefinancial statements. The procedures selected depend on the auditor's judgment, including the assessment of therisks of material misstatement of the financial statements, whether due to fraud or error. In making those riskassessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of thefinancial statements in order to design audit procedures that are appropriate in the circumstances, but not for thepurpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includesevaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates madeby management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualifiedaudit opinion.
Basis for Qualified Opinion
Canadian accounting standards for not-for-profit organizations require that capital assets be recorded at cost andamortized over their useful life. The corporation has decided not to change its reporting policies with respect tocapital assets and continues to expense its fixed assets as described in Note 2. We were unable to quantify theeffect on assets, expenses, excess of revenue over expenses, and net assets. In this respect, the financialstatements are not in accordance with Canadian accounting standards for not-for-profit organizations.
Qualified Opinion
In our opinion, except for the effects of the matter described in the Basis of Qualified Opinion paragraph, thefinancial statements present fairly, in all material respects, the financial position of North Eastern OntarioCommunications Network Inc., (Operating as NEOnet Inc.), as at December 31, 2014 and the results of itsoperations and its cash flow for the year then ended in accordance with Canadian accounting standards for not-for-profit organizations.
Timmins, Ontario Ross Pope LLPApril 2, 2015 Chartered Professional Accountants
Licensed Public Accountants
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Financial Statements
NORTH EASTERN ONTARIO COMMUNICATIONS NETWORK INC.(Operating as NEOnet Inc.)
Statement of Revenues and Expenses
Year Ended December 31, 2014
2014 2013
REVENUEProjects (Schedule 1) $ 482,512 $ 739,636ICT 255,488 233,062Interest 4,277 3,739Memberships and contributions 8,000 9,500Management fees - 1,695
750,277 987,632
EXPENSESAdvertising and promotion 8,314 5,708Insurance 4,547 4,102Interest and bank charges 376 199Meetings 1,798 1,678Memberships 1,306 1,237Office 4,019 11,821Projects (Schedule 2) 482,674 739,200Professional fees 6,778 7,745Rental 20,395 19,468Telecommunications 3,939 4,882Training, travel and conferences 12,396 18,068Wages and employee benefits - core 192,623 158,174
739,165 972,282
EXCESS OF REVENUE OVER EXPENSES $ 11,112 $ 15,350
See notes to financial statements 3
Financial Statements
NORTH EASTERN ONTARIO COMMUNICATIONS NETWORK INC.(Operating as NEOnet Inc.)
Statement of Changes in Net Assets
Year Ended December 31, 2014
2014 2013
NET ASSETS - BEGINNING OF YEAR $ 197,598 $ 182,248Excess of revenue over expenses 11,112 15,350
NET ASSETS - END OF YEAR $ 208,710 $ 197,598
See notes to financial statements 4
Financial Statements
NORTH EASTERN ONTARIO COMMUNICATIONS NETWORK INC.(Operating as NEOnet Inc.)
Statement of Cash Flow
Year Ended December 31, 2014
2014 2013
OPERATING ACTIVITIESExcess of revenue over expenses $ 11,112 $ 15,350
Changes in non-cash working capital:Accounts receivable 228,175 19,890Accounts payable (196,758) (23,112)Deferred income 39,081 114,380Prepaid expenses (10) (64)HST receivable (875) 794
69,613 111,888
INCREASE IN CASH FLOW 80,725 127,238
Cash - beginning of year 352,358 225,120
CASH - END OF YEAR $ 433,083 $ 352,358
See notes to financial statements 5
Financial Statements
NORTH EASTERN ONTARIO COMMUNICATIONS NETWORK INC.(Operating as NEOnet Inc.)
Notes to Financial Statements
Year Ended December 31, 2014
1. DESCRIPTION OF BUSINESS
North Eastern Ontario Communications Network Inc. was incorporated without share capitalunder the corporation Act of Ontario on November 23, 1999. The corporation qualifies as a not-for-profit organization under The Income Tax Act and as such is exempt from income taxes.
The corporation's mandate is to facilitate private and public partnerships that will result in bettertelecommunications infrastructure and information, communication and technology (ICT)services in the region; to increase awareness and adoption of information communicationtechnologies thereby increasing demand for services and fostering a more competitiveenvironment; and to promote the development and innovative application of technology,especially as it pertains to the economic, cultural and social development in North EasternOntario.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of presentation
The financial statements were prepared in accordance with Canadian accounting standards for not-for-profit organizations (ASNFPO).
Measurement uncertainty
The preparation of financial statements in conformity with Canadian accounting standards for not-for-profit organizations requires management to make estimates and assumptions that affect thereported amount of assets and liabilities, disclosure of contingent assets and liabilities at the date ofthe financial statements and the reported amounts of revenues and expenses during the period.Such estimates are periodically reviewed and any adjustments necessary are reported in earnings inthe period in which they become known. Actual results could differ from these estimates.
Administration fees
Internal administration fees are charged to projects and are determined by management withreference to core operating expenses attributable to the projects. The administration revenue isrecorded in the statement of operations.
Accounting for contributions
The corporation follows the deferral method of accounting for contributions other than forcontributions for the purchase of capital assets.
Revenue recognition
Revenue is recognized when services have been rendered. Contributions relating to approvedexpenses are recognized on the accrual basis when the amount can be measured and theexpenses has been incurred.
(continues)
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Financial Statements
NORTH EASTERN ONTARIO COMMUNICATIONS NETWORK INC.(Operating as NEOnet Inc.)
Notes to Financial Statements
Year Ended December 31, 2014
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Fixed assets
The corporation expenses fixed asset additions in the year acquired. During the year, a computerwas purchased for $1,414.
Financial instruments policy
Financial instruments are recorded at fair value when acquired or issued. In subsequent periods,financial assets with actively traded markets are reported at fair value, with any unrealized gainsand losses reported in income. All other financial instruments are reported at amortized cost, andtested for impairment at each reporting date. Transaction costs on the acquisition, sale, or issue offinancial instruments are expensed when incurred.
3. DEFERRED INCOME
2014 2013
FedNor - ICT $ 37,763 $ 54,384FedNor - BEAM I & II - 96,928Fednor - BEAM III 70,250 -FedNor - GIS 73,453 -FedNor - STAMP 10,877 -Memberships - 2,000
$ 192,343 $ 153,312
4. FINANCIAL INSTRUMENTS
The company is exposed to various risks through its financial instruments. It is management'sopinion that they are not exposed to any significant credit, liquidity, market, currency, interest rateand other price risk as of December 31, 2014.
5. ECONOMIC DEPENDENCE
A significant portion of the corporation's revenue is derived from government funding. Thecorporation's continued operations are therefore contingent on securing funding.
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Financial Statements
NORTH EASTERN ONTARIO COMMUNICATIONS NETWORK INC.(Operating as NEOnet Inc.)
Schedule of Projects (Schedule 1)
Year Ended December 31, 2014
2014 2013
REVENUE
FedNorMatachewan Broadband Infrastructure $ 61,637 $ -Geographic Information System 34,921 -Small Business Technology Assessment Monitoring and Planning 9,752 -Youth Internship Program - 28,551BEAM I & II 317,278 259,577
Northern Ontario Heritage Fund CorporationCell expansion - 451,508Geographic Information Systems 49,103 -
Productivity and Innovation 9,821 -
Total Revenues 482,512 739,636
Project Expenses (Schedule 2) 482,674 739,200
EXCESS (DEFICIENCY) OF REVENUE OVER EXPENSES $ (162) $ 436
Project Expenses (Schedule 2)
Year Ended December 31, 2014
2014 2013
Matachewan Broadband Infrastructure $ 61,637 $ -Geographic Information System - FedNor 34,921 -Small Business Technology Assessment Monitoring and
Planning 9,752 -Wages and employee benefits - 28,028BEAM I & II 317,278 259,664BEAM III 162 -Cell expansion - 451,508Geographic Information System - NOHFC 49,103 -Productivity and Innovation 9,821 -
$ 482,674 739,200
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North Eastern Ontario Communications Network Inc. (NEOnet Inc.) 2014 Annual Report.