our mission - antcomatthew holds a marketing management certificate from bcit. the mazur’s...
TRANSCRIPT
2017 ANNUAL REPORT
OUR MISSIONTo facilitate Aboriginal self-sufficiency through provision of financial
and business services.
OUR VISIONSelf-reliant Aboriginal people thriving in diverse economies.
RECYCLED P APER SUIT ABLE FOR RECYCLING
RECYCLED P APER
Printed on
Common Bond of Association 1
Chairperson/President & CEO Report 2
Year in Pictures 3
Organizational Chart 4
Client Profiles 6
All Nations Insurance Brokers Inc. 8
Pathways to Technology 9
Financial Highlights 10
Audited Financial Statements 11
ANTCO Service Area 22
Statistics and Graphs 23
Honouring Our Youth and Clients 24
Table of Contents
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Secwepemc
Okanagan
KtunaxaKinbasketNlaka’pamux
Stl’atl’imx
Common Bond of Association
At least 75% of the Shareholders are
situated within the Common Bond of
Association
ANTCO 2017 Annual Report2
Chairperson/President & CEO Report
On behalf of the Board of Directors for All Nations Trust Company, we are pleased to report another successful year for our Company.
Total shareholder’s equity increased this fiscal year from $19.04 Million to $19.62 Million. Our net after-tax income increased to $670,797. We thank the shareholders for their trust in the company and their contributions to our growth.
As with the prior two years, business diversification and expansion remain key to our long-term success. Due to our renewed focus on small business lending, our business loan volume grew for the third consecutive year. Our wholly owned subsidiary, All Nations Insurance Brokers (ANIB) has completed two years of operations as of March 31. ANIB is demonstrating growth in this competitive industry. We have strengthened ANIB to better serve our existing and potential clientele by adding experienced staff with specialties in either 1) Pensions and Benefits or 2) Property and Casualty insurance. We look forward to assisting our shareholders, community members and business enterprises with finding optimal insurance solutions in the next fiscal year.
In addition to our core lending and insurance brokerage activities, ANTCO has had continued success with program delivery and contracts. This year marks 21 years of CMHC
Direct Lending services, we currently administer more than 500 mortgages for CMHC with a total value of $173 Million. Our Pathways to Technology (PTT) team continues to provide high speed internet service to First Nation communities throughout BC. The PTT team has completed “Transport” and “Last Mile” components to sixteen (16) communities and Capacity Building to another thirteen (13) communities within the past year.
The Board of Directors have provided the direction to continue with business diversification and growth. Our success this past year has been due to that guidance and the hard work of our dedicated staff and contractors. We believe that continuing on this course of diversification and growth will serve the best interests of our Shareholders and allow ANTCO to remain “A Leading Aboriginal Financial Institution in Canada”.
Respectfully,
Matthew Pasco Paul Donald
Chairperson/President Chief Executive Officer
Paul Donald — Matthew Pasco
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Year in Pictures
ANTCO 2017 Annual Report4
Connie RozeckFinance Manager
ANTCO
Board of Directors
Shareholders
Organizational Chart
Susan Keenan Business Loans Manager
Paul Donald Chief Executive Officer
Byron Louis Gail Joe Greg Mazur
Christopher Derrickson Gary Swite
Shellie Aspeslet Loans Administrator
Stephanie FletcherBusiness Loans Officer
Marlene Draney CMHC Direct Lending
Administrator
Tracy Armstrong Executive Assistant
Dianne OppenheimInformation and
Technology Officer
Jennifer Brennan Administrative Assistant
Melissa Mongrain Finance Assistant
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Chasity GarbittBusiness Development
Assistant
ANDEVCO
ANIC
0966771 BC Ltd
BusinessDevelopment Officer
BusinessDevelopment Officer
Byron McDonald, Christopher Pegg,
Toni Etchart, Michael Forbes
StaffChantel Jones
Business Development Manager
ANIB
Latrica Babin Stacie Coutlee Timothy Low
Julia Dick Matthew Pasco Stacy Thom
ANTCO 2017 Annual Report6
Client Profiles
Julie John is a member of the Little Shuswap Lake Indian Band. She completed her Bachelor of Tourism Management, Major in Entrepreneurship and Minor in Marketing at Thompson Rivers University and is now a successful entrepreneur who owns and operates two businesses.
Julie opened Eagle Eye Gifts in the summer of 2015. The store is a must see for First Nations shopping, where you will find original and limited prints, carvings, clothing, jewelry, drums, moccasins, housewares, beads and much more! The majority of products at Julie’s store are Canadian made; she advocates
local and made in BC products. Products with native designs are either made by First Nations artists or a fee has been paid for the use of their original designs. The gift shop also offers a variety of different classes ranging from
beading to moccasin making.
Ms. John previously started up an event management company in 2012, where she organized workshops, conferences, tradeshows and cultural events. She continues to operate the events management business in conjunction with the gift shop and often facilitates Aboriginal female workshops right from her store.
Jason Blair - The Grind House CaféJason Blair purchased The Grind House Café (formerly known as “The Grind”) in fall of 2016. Jason was formerly employed at Thompson Rivers University as an Aboriginal outreach worker and life skills coach before he made the decision to venture off and open his own business. The Grind House Café was a perfect choice for him as he is very familiar with the hospitality industry from past involvement of his own, as well as coming from a family with many years of experience in this field.
The Grind House Café has been a community fixture in Kamloops for the past 27 years and developed a reputation for being a hip and trendy hangout. It was the first specialty coffee shop in town. Jason’s goal is to honor the authentic feel of the original Grind while incorporating a more sustainable and eco-friendly principle. The Grind House Café uses as many local products as possible and strives to provide high-end coffee, food items, and baked goods in a unique and eclectic space. Organic, whole food ingredients are the base for their food as well as drinks. Entertainment is also an important aspect to the business. It is very important for Jason to promote local and independent art and music. The Grind House Café features live local indie, bluegrass, folk, deep funk and house music artists.
The Grind House Café will make its best effort to create a unique place for you to enjoy the best brewed coffee in town and relieve your daily stress by providing piece of mind through great ambience, friendly customer service, and products of consistently high quality.
Julie John – Eagle Eye Gifts
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MF Farms Ltd. is an organic canola oil manufacturing company located in Westbank, BC. The business is family owned by Larry, Donna, Matthew & Michael Mazur. The Mazur’s started up the manufacturing facility in September of 2015.
Larry and Donna own a canola farm and supply a large quantity of product to the manufacturing plant. Michael and Matthew, both members of the Kelowna Metis Association, are the main operators of the oil plant. Michael holds a Bachelor of Business Administration Degree through Mount Royal University as well as an International Trade Diploma. Matthew holds a Marketing Management certificate from BCIT.
The Mazur’s cold-pressed organic oil is obtained through mechanically pressing oil from seeds with a stainless-steel expeller press. Although pressing produces heat through friction, they keep their press running at a slow enough speed to ensure the oil temperature never rises about 49 degrees Celsius to maintain the full nutritional integrity of the oil.
Thunder Boyz Productions Inc. is an Aboriginal company owned by Dean Trumbley. Dean is a registered professional biologist in both British Columbia and Alberta and has a strong passion for the outdoors, hunting and fishing.
Thunder Boyz Productions Inc. produces the TV show Bushnell’s Trigger Effect which presently broadcasts in Canada, the United States, South Africa and Europe. All the editing for Trigger Effect happens right in Falkland, BC at Trumbley’s home. He is very proud of the fact that Trigger Effect is a Canadian show.
Trigger Effect has successfully aired for four full seasons and as of January 1, 2017 it launched season five with 20 new episodes. The show’s primary focus is on North American hunting. While earlier seasons filmed mainly
in BC and Canada, Dean and co-host Kent Michie are now travelling to places like Argentina and Africa to shoot episodes.
The two are passionate about reducing invasive species and making viewers aware of high populations and the need to reduce numbers – understanding conservation and
management is key. The educational component is a major part of each episode while still focusing on providing a high-quality hunting experience.
Thunder Boyz Productions Inc. also offers website development, custom logos and full social media support and maintenance. Their staff have a diversity of experience from biology, business management, computer technology, finance, videography, studio editing, management, and graphic design.
Client Profiles
The Mazur Family - MF Farms Ltd.
Dean Trumbley - Thunder Boyz Productions Inc.
The Mazur’s came to All Nations Trust Company to seek financial support to start their business in Spring of 2015, and then again in Fall of 2016. The product was in such exceptionally high demand that they needed to expand their business and purchase another two oil presses. Their product is now being sold on the shelves of many retailers across Canada.
ANTCO 2017 Annual Report8
All Nations Insurance Brokers (ANIB) Inc.
All Nations Insurance Brokers has now been operating for two years. Through the operational/financial support of ANTCO, ANIB is building BC’s only 100% aboriginal-owned insurance brokerage! ANIB’s focus is to strengthen Aboriginal economies through finance, insurance and risk management services.
In 2016, we focused on new business, processed our first renewal business and filled some staffing positions. Chris Pegg and Byron McDonald work in the Pensions and Benefits department and Michael Forbes and Toni Etchart work in Property & Casualty.
Overall, on the general insurance side, our bread and butter came from our commercial insurance line. A central project for 2017 is to create our own Band Asset Program. This will be offered to Bands throughout the province. It will include coverages such as commercial property, housing, directors and officer’s insurance (chief & council), commercial general liability & professional liability. We will work with housing
managers to make risk assessments, keeping in mind that newer and updated housing is going to generate a lower premium. For homes over 20 years important updates include the roof, plumbing, hot water tank, heating and electrical systems. If wood is a source of heat then those systems should be regularly maintained and where possible, inspected every 5years. Not only is this an underwriting concern but it’s also an important safety measure.
The Pensions & Benefits Department has been conducting workshops on employer and government pension programs. They help to navigate taxation issues and pre-retirement planning. They also work to find missing pension money for elders.
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At this time last year we reported that most of the fast, easy builds were in our rear view mirror and we expected to enter a period characterized by longer, more complex and more costly connectivity projects. This has indeed proven to be the case, particularly for transport projects, although many last mile projects have also experienced a bump. One consequence of launching complex builds is that fewer projects can be planned and completed within a 12 month period, and measuring productivity by fiscal year is not as useful a metric as it once was. Having said that, fiscal 2016-17 has been productive for Pathways. Transport projects completed or launched include: Oweekeno, Esowista, Macoah, Ittatsoo, Ahousaht, Penelakut, Soda Creek, Opitsaht and Nadleh Whut’en. Last mile projects completed or nearing completion include Takla, Macoah, Nooaitch, Simpcw, Moricetown, Skeetchestn and Shackan. Last mile work in progress but not expected to complete until later in 2017 include Binche, Huu-ay-aht, Glen Vowell, Upper Nicola, Metlakatla and Bonaparte.
Pathways to Technology is of course about more than just connecting communities; it includes a mandate to ensure that computer training is available to First Nations as they become connected. In fiscal 2016-17 training was delivered in 13 communities: Cooks Ferry, Canim Lake, Skeetchestn, Coldwater, Whispering Pines, Tahltan, Dease Lake, Gitga’at,
Saulteau, Iskut, Lil’wat, Ahousaht and Pacheedaht. A regional session was also held in Terrace.
Pathways To Technology has been bringing reliable high-speed broadband to First Nations in BC since 2010. To gain more insight into the issues, Pathways undertook a series of case studies: a ‘deep dive’ into issues such as bandwidth applications, technology evergreening, affordability and
capacity building. We are grateful to the following organizations for their participation in the studies: Carrier-Sekani Family Services, First Nations’ Emergency Services Society, First Peoples’ Cultural Council, Aboriginal Tourism Association of BC and the First Nations Safety Council of BC.
For the second consecutive year Pathways arranged a February gathering of First Nation technology stakeholders. The meeting, which was exceptionally well attended, was an opportunity to report on progress, present the case study results, discuss the implications of the CRTC announcement, share insights amongst all of us, and generally recalibrate the strategic direction of the Pathways project. With the insights, direction and support of the stakeholders firmly in hand, Pathways is forging ahead in 2017-18, confident of meeting the inevitable challenges along the way.
Pathways to Technology
February 2017 Gathering of Stakeholders
ANTCO 2017 Annual Report
2017 2016 2015
Results for the Year
Net Interest Income $ 480,151 $ 476,047 $ 516,645
Administration & Other Income $ 13,609,683 $ 8,578,293 $ 11,197,829
Total Income $ 14,089,834 $ 9,054,340 $ 11,714,474
Total Expenses $ 13,167,404 $ 8,271,327 $ 10,839,558
Income before Taxes $ 922,430 $ 783,013 $ 874,916
Total Income Taxes $ 251,633 $ 193,801 $ 190,508
Total Comprehensive Income $ 670,797 $ 589,212 $ 684,408
Basic Earnings per share 0.42 0.37 0.43
Year End Position
Total Assets $ 57,552,255 $ 56,777,840 $ 59,293,377
Total Liabilities $ 37,929,378 $ 37,737,755 $ 40,739,938
Shareholders’ Equity $ 19,622,877 $ 19,040,085 $ 18,553,439
Common (voting) shares outstanding 1,599,100 1,599,100 1,599,100
Financial Ratios
Return on Total Assets 1.17% 1.04% 1.15%
Return on Common Equity 41.95% 36.85% 42.80%
Financial Highlights
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Report of the Independant Auditor on the SummarizedConsolidated Financial Statements
To the Shareholders of All Nations Trust Company:
The accompanying summarized consolidated financial statements, which comprise the summarized consolidated statement of financial position as at March 31, 2017 and the summarized consolidated statements of comprehensive income, changes in shareholders’ equity and cash flows for the year then ended, are derived from the audited consolidated financial statements of All Nations Trust Company. We expressed an unmodified audit opinion on those consolidated financial statements in our report dated June 16 2017. Those consolidated financial statements, and the consolidated summarized financial statements, do not reflect the effects of events that occurred subsequent to the date of our report on those financial statements.
The summarized consolidated financial statements do not contain all the disclosures required by international financial reporting standards. Reading the summarized consolidated financial statements, therefore, is not a substitute for reading the audited consolidated financial statements of All Nations Trust Company.
Management’s Responsibility for the Summarized Consolidated Financial StatementsManagement is responsible for the preparation of the summarized consolidated financial statements in accordance with the basis described in Note 1.
Auditor’s ResponsibilityOur responsibility is to express an opinion on the summary consolidated financial statements based on our procedures, which were conducted in accordance with Canadian Auditing Standard 810, “Engagements to Report on Summary Financial Statements.”
OpinionIn our opinion, the summarized consolidated financial statements derived from the audited consolidated financial statements of All Nations Trust Company as at March 31, 2017 and for the year ended March 31, 2017 are a fair summary of those consolidated financial statements, in accordance with the basis described in Note 1.
Chartered Professional AccountantsKamloops, British ColumbiaJune 16, 2017
BDO Canada LLP, a Canadian limited liability partnership, is a member of BDO International Limited, a UK company limited by guarantee, and forms part of the international BDO network of independent member firms.
Audited Financial Statements
Tel: 250 372 9505
Fax: 250 374 6323
www.bdo.ca
BDO Canada LLP
300 – 275 Lansdowne Street
Kamloops BC V2C 6J3
ANTCO 2017 Annual Report12
SUMMARIZED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
All Nations Trust CompanySummarized Consolidated Statement of Financial Position
March 31 2017 2016
Assets
Cash and cash equivalents $ 18,223,008 $ 10,555,588Accounts receivable 2,379,086 2,546,794Prepaid expenses 309,078 314,331Income taxes receivable - 33,166Marketable securities 25,540,118 32,062,082Deferred income taxes 280,831 207,000Loans receivable (Note 2) 6,691,002 6,759,031Property and equipment 4,129,132 4,299,848
$ 57,552,255 $ 56,777,840
Liabilities and Shareholders' Equity
Liabilities
Accounts payable and accrued liabilities $ 3,994,679 $ 2,395,662Demand loans (Note 3) 2,316,428 2,410,595Promissory note - -Deferred revenue (Note 4) 31,591,321 32,931,498Corporate income taxes payable 26,950
37,929,378 37,737,755
Shareholders' Equity
Share capital 1,599,100 1,599,100Retained earnings 18,023,777 17,440,985
19,622,877 19,040,085
$ 57,552,255 $ 56,777,840
Approved on behalf of the Board of Directors by:
Chair of the Board
Chair of the Audit Committee
The accompanying notes are an integral part of these consolidated financial statements.
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The accompanying notes are an integral part of these consolidated financial statements.
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SUMMARIZED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOMEAll Nations Trust Company
Summarized Consolidated Statement of Comprehensive Income
For the year ended March 31 2017 2016
RevenueInterest on loans receivable $ 480,151 $ 476,047Management, administration and other fees 2,073,090 1,857,547Investment income 95,007 90,417Partnership income (loss) - (5,265)Program funds and other (Note 5) 548,316 522,117First Nations Infrastructure Fund INAC (Note 6) 9,231,645 4,541,852Business Equity Fund 1,661,625 1,571,625
14,089,834 9,054,340
Loan Related CostsLoan administration fees - (2,500)Bad debt expense (recovery)
Specific allowance - (45,598)
- (48,098)
Operating ExpensesDirectors (Note 7) 82,020 81,034Personnel (Note 7) 1,137,462 1,046,633Premises (Note 7) 54,150 51,237General and administrative (Note 7) 1,000,502 1,027,044
2,274,134 2,205,948Other ExpensesFirst Nations Infrastructure Fund INAC 9,231,645 4,541,852Business Equity Fund 1,661,625 1,571,625
10,893,270 6,113,477
Income before income taxes 922,430 783,013
Income Taxes Provision for current income taxes 325,464 289,801 Provision for deferred income taxes (73,831) (96,000)
251,633 193,801
Total comprehensive income $ 670,797 $ 589,212
Basic earnings per share $ 0.419 $ 0.368
The accompanying notes are an integral part of these consolidated financial statements.
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The accompanying notes are an integral part of these consolidated financial statements.
ANTCO 2017 Annual Report14
SUMMARIZED CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
SUMMARIZED CONSOLIDATED STATEMENT OF CASHFLOWS
The accompanying notes are an integral part of these consolidated financial statements.
All Nations Trust CompanySummarized Consolidated Statement of Changes in Shareholders' Equity
Number ofCommon Shares Amount
RetainedEarnings Total
Balances on April 1, 2015 1,599,100 $ 1,599,100 $ 16,954,339 $ 18,553,439
Total comprehensive income - - 589,212 589,212Dividends - - (102,566) (102,566)
Balances on March 31, 2016 1,599,100 $ 1,599,100 $ 17,440,985 $ 19,040,085
Total comprehensive income - - 670,797 670,797Dividends - - (88,005) (88,005)
Balances on March 31, 2017 1,599,100 $ 1,599,100 $18,023,777 $19,622,877
The accompanying notes are an integral part of these consolidated financial statements.
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All Nations Trust Company Summarized Consolidated Statement of Cash Flows
For the year ended March 31 2017 2016
Cash flows from operating activities
Total comprehensive income: $ 670,797 $ 589,212Items not affecting cash:
- Depreciation 188,407 198,073- Partnership income - 5,265
Decrease (increase) in accounts receivable 167,708 (2,411,208)Decrease (increase) in prepaid expenses 5,253 11,849Decrease (increase) in accounts payable and accrued liabilities 1,599,016 300,452Decrease (increase) in corporate and deferred income taxes (13,715) (111,538)Decrease (increase) in deferred revenue (1,340,177) (1,812,200)
1,277,289 (3,230,095)
Cash flows from investing activities:
Purchase of property and equipment (17,689) (8,998)Net (increase) decrease in marketable securities 6,521,964 (497,448)Net decrease in loans receivable 68,028 210,453Proceeds on other investments - 302,389
6,572,303 6,396
Cash flows from financing activities:
Dividends paid (88,005) (102,566)Repayment of demand loans (94,167) (90,436)
(182,172) (193,002)
Net increase (decrease) in cash 7,667,420 (3,416,701)
Cash and cash equivalents, beginning of year 10,555,588 13,972,289
Cash and cash equivalents, end of year $ 18,223,008 $ 10,555,588
The accompanying notes are an integral part of these consolidated financial statements.
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NOTES TO SUMMARIZED CONSOLIDATED FINANCIAL STATEMENTSMARCH 31, 2017 All Nations Trust Company
Notes to Summarized Consolidated Financial Statements
March 31, 2017
1. Summarized Consolidated Financial Statements
The summarized consolidated financial statements are derived from the complete auditedconsolidated financial statements, prepared in accordance with international financial reportingstandards as at March 31, 2017. The preparation of these summarized consolidated financialstatements requires management to determine the information that needs to be reflected so thatthey are consistent in all material respects with, or represent a fair summary of, the auditedconsolidated financial statements. Management prepared these summarized consolidated financialstatements using the following criteria:
(a) The summarized consolidated financial statements include the consolidated statement offinancial position, consolidated statement of comprehensive income, consolidatedstatement of changes in shareholders' equity and the consolidated statement of cash flows;
(b) Information in the summarized consolidated financial statements agrees with the relatedinformation in the complete audited consolidated financial statements includingcomparative information and all major subtotals and totals; and
(c) In all material respects, the summarized consolidated financial statements contain theinformation necessary to avoid distorting or obscuring matters disclosed in the relatedcomplete audited consolidated financial statements, including significant accountingpolicies and the notes thereto.
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ANTCO 2017 Annual Report16
NOTES TO SUMMARIZED CONSOLIDATED FINANCIAL STATEMENTSMARCH 31, 2017 All Nations Trust Company
Notes to Summarized Consolidated Financial Statements
March 31, 2017
2. Loans Receivable
The Company's loans receivable are analyzed as follows:
2017 2016
All Nations Trust Company (a) $ 1,951,111 $ 2,405,483
All Nations Development Corporation (b) 4,739,891 4,353,548
$ 6,691,002 $ 6,759,031
(a) All Nations Trust Company's loans receivable are analyzed as follows:
2017 2016
Loans in arrears or default $ 175,084 $ 184,175
Loans in good standing 1,767,871 2,209,069Accrued interest receivable
Recorded amount 8,156 12,239
Total loans receivable $ 1,951,111 $ 2,405,483
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NOTES TO SUMMARIZED CONSOLIDATED FINANCIAL STATEMENTSMARCH 31, 2017 All Nations Trust Company
Notes to Summarized Consolidated Financial Statements
March 31, 2017
2. Loans Receivable (continued)
(b) All Nations Development Corporation's loans receivable are comprised as follows:
Trustee #1 Trustee #2
2008DevelopmentalLoan Fund
B.C. Ministryof Forests 2017 Total 2016 Total
Loans & MortgagesLoans in arrears or default $ - $ - $ 8,821 $ - $ 8,821 $ 89,506Related allowance - - - - - -
- - 8,821 - 8,821 89,506Loans & Mortgages - in good
standingRecorded amount 3,338,222 1,080,620 289,713 - 4,708,555 4,240,720Related allowance - - - - - -
3,338,222 1,080,620 289,713 - 4,708,555 4,240,720Accrued interest receivable
Recorded amount 15,086 5,489 1,940 - 22,515 23,322Related allowance - - - - - -
15,086 5,489 1,940 - 22,515 23,322
Total loans receivable $ 3,353,308 $1,086,109 $ 300,474 $ - $ 4,739,891 4,353,548
Cash balance 2,602,393 1,645,179 1,775,216 468,243 6,491,031 6,486,479
Net assets of loan funds 5,955,701 2,731,288 2,075,690 468,243 11,230,922 10,840,027
Terms and Conditions
The Company's loans and mortgages are primarily for fixed terms ranging from one to five yearsbearing interest at fixed rates ranging from 4.40% to 10.75% (2016 - 4.74% to 11.25%) per annum.In determining interest rates, the Company uses fixed market rates for mortgages, and forcommercial or business loans, rates are based on the Company’s base rate of 8.25% (2016 – 8.25%)plus a risk premium. The Company’s base rate is set by the Board of Directors based on analysisperformed by management.
Specific loans are secured with specific assets, personal, band or corporate guarantees and BritishColumbia First Citizens Fund Business Loan Program loan forgiveness and guarantees. Residentialmortgages are insured by Canada Mortgage and Housing Corporation ("CMHC") and, if the borrowerqualifies, a Ministerial Guarantee from the Minister of Indigenous and Northern Affairs Canada.
The British Columbia First Citizens Fund provides loan forgiveness and guarantees for 40% of theoriginal loan amount. For each 15% of principal repaid by the borrower, the Company contributes10% of the original loan amount, and the contribution is then reimbursed by the Province of BritishColumbia through the First Citizens Fund.
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ANTCO 2017 Annual Report18
NOTES TO SUMMARIZED CONSOLIDATED FINANCIAL STATEMENTSMARCH 31, 2017
All Nations Trust CompanyNotes to Summarized Consolidated Financial Statements
March 31, 2017
4. Deferred Revenue
The Company has entered into contracts with Indigenous and Northern Affairs Canada ("INAC") andthe Ministry of Labour and Citizens Services. Unspent amounts relating to these contracts are asfollows:
2017 2016
Government Contribution Agreement (Note 6) $ 31,372,185 $ 32,927,448First Nations Infrastructure Fund 219,136 -Housing Authority Feasibility 217,177 -Other - 4,050
$ 31,591,321 $ 32,931,498
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All Nations Trust CompanyNotes to Summarized Consolidated Financial Statements
March 31, 2017
2. Loans Receivable (continued)
Fair Value
The fair value of loans receivable at March 31, 2017 was $6,691,002 (2016 - $6,759,031).
The fair value of loans receivable as at March 31, 2017 approximates the carrying value asdisclosed above. The estimated fair value of loans receivable is determined by discounting theexpected future cash flows of these loans at current market rates for products with similar termsand credit risks.
Concentration of Risk
All loans receivable are issued to clients located within British Columbia. There is no individual orrelated groups of loans which exceed 10% of the total loans receivable balance.
3. Demand Loan
The Company's wholly owned subsidiary, 0966771 B.C. Ltd. obtained a non-revolving facility withBank of Montreal, with an original value of $2,559,000, which was used to finance the constructionof the Company's new building. The facility is due on demand and bears interest at 3.66% perannum payable monthly. Blended monthly payments of $15,052 amortized over a period of 20years are required to repay the facility.
The loan is secured by a guarantee of indebtedness executed by All Nations Trust Company and AllNations Development Corporation and first mortgage of sub-lease and assignment of rents andleases over the building. 0966771 B.C. Ltd. is required to meet certain lending covenants set outin the bank agreement. As of March 31, 2017, 0966771 B.C. Ltd. was in compliance with thesecovenants.
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NOTES TO SUMMARIZED CONSOLIDATED FINANCIAL STATEMENTSMARCH 31, 2017 All Nations Trust Company
Notes to Summarized Consolidated Financial Statements
March 31, 2017
5. Program Funds and Other
Program funds and other revenue consisted of the following:
2017 2016All Nations Development Corporation:
XDO Program - NACCA $ 288,286 $ 288,286Business Support OfficerADLA - NACCA - current funding 225,507 198,191ADLA - NACCA - prior period funding - 10,640Housing Authority Feasibility - INAC 34,523 25,000
$ 548,316 $ 522,117
6. Government Contribution Agreement
The Company was awarded unconditional grants from the Provincial Government, Ministry ofLabour and Citizens Services: one which was received in March 2008 for $22,500,000 and$18,300,000 in February 2009. The funds relate to the First Nations Connectivity Fund titled thePathway to Technology Project (PTT); the purpose of this project is to install the infrastructureneeded to provide broadband connectivity to First Nations unconnected or under-connectedcommunities in B.C.
In fiscal 2017, the Company received $9,231,645 (2016 - $4,541,852) from INAC for connectivity,which was allocated towards infrastructure and management fees to complement the PTT project.
The assets and liabilities of the two projects are analyzed as follows, and are included in therespective balance sheet accounts:
2017 2016
Cash and cash equivalents $ 562,133 $ 1,174,002Accounts receivable - ANDEVCO 5,050,275 -Prepaid expenses 1,667 407Marketable securities 25,540,118 32,062,082Computer equipment 3,915 3,915Accounts payable and accrued liabilities (7,151) (312,958)Deferred liability (31,150,957) (32,927,448)
Net assets $ - $ -
During the fiscal year-ending March 31, 2017, the Company incurred total expenditures of$9,231,645 (2016 - $4,541,852) relating to the projects, which have been offset by $9,231,645(2016 - $4,541,852) of related grant revenue.The intercompany receivable amount from ANDEVCO has been eliminated on consolidation.
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ANTCO 2017 Annual Report20
NOTES TO SUMMARIZED CONSOLIDATED FINANCIAL STATEMENTSMARCH 31, 2017 All Nations Trust Company
Notes to Summarized Consolidated Financial Statements
March 31, 2017
7. Operating Expenses2017 2016
DirectorsHonoraria $ 50,543 $ 48,308Travel and board administration 31,477 32,726
$ 82,020 $ 81,034Personnel
Benefits $ 199,220 $ 182,456Training and recruitment 5,895 4,899Wages 932,347 859,278
$ 1,137,462 $ 1,046,633Premises
Janitorial and maintenance $ 46,072 $ 37,384Land lease and other lease expenses 8,078 13,853
$ 54,150 $ 51,237General and Administrative
Advertising and promotion $ 42,073 $ 47,079Annual shareholders' meeting 15,656 14,799Information technology 8,799 6,264Consulting 225,384 241,211Depreciation 188,407 198,073GST 29,271 28,632Insurance 29,919 31,598Interest and bank charges 347 2,405Interest on long-term debt 86,462 90,193Legal fees 13,782 12,280Loan expenses 7,595 6,310Office 40,725 35,940Professional and audit fees 55,826 51,434Property tax 40,680 41,556Supplies 50,718 48,241Telephone 44,560 40,947Travel and meals 104,998 116,639Utilities 11,010 9,078Workshops/mentoring 4,290 4,365
$ 1,000,502 $ 1,027,044The comparative amounts presented above and on the statement of comprehensive income havebeen adjusted due to 2016 administrative charges between the Company and ANDEVCO not beingeliminated on consolidation. The adjustment reduced honoraria by $6,600, land lease and otherlease expenses by $47,400, insurance by $4,000, office by $2,760, supplies by $7,800, andtelephone by $13,540. There was a corresponding decrease to management, administration andother fees, but no adjustment to comprehensive income for the year.
13
21
NOTES TO SUMMARIZED CONSOLIDATED FINANCIAL STATEMENTSMARCH 31, 2017 All Nations Trust Company
Notes to Summarized Consolidated Financial Statements
March 31, 2017
8. NEDC Custodial Trust Agreement
The Company has entered into an agreement with Nuu-Chah-Nulth Economic DevelopmentCorporation ("NEDC") to fund mortgages administered by the Company. Principal repayments toNEDC are due within one month of receipt of the related scheduled mortgage repayment. Anyproceeds received from CMHC or INAC relating to mortgages funded under this agreement whichare in default are payable to NEDC upon receipt. At March 31, 2017, the principal portion of theloans outstanding is $337,647 (2016 - $352,191).
9. Peace Hills Trust Syndication Agreement
The Company has entered into a syndication agreement with Peace Hills Trust to fund mortgagesadministered by the Company. Principal and interest repayments are remitted to Peace Hills Trustby the 15th of each month following the related scheduled mortgage repayment. Any proceedsreceived from the borrower, guarantor or INAC relating to mortgages funded under this agreementwhich are in default are payable to Peace Hills Trust upon receipt. At March 31, 2017, theprincipal portion of the loans outstanding is $792,654 (2016 - $998,615).
14
ANTCO 2017 Annual Report22
ANTCO Service Area
Business Equity Fund (BEF) ProgramThe Business Equity Fund (BEF) is a non-repayable grant program designed to increase the number of viable businesses in Canada owned and controlled by Aboriginal Canadians. The program was implemented to enhance access to capital for Aboriginal businesses that have difficulty in obtaining conventional commercial financing.
First Citizens Fund (FCF) loan programThe First Citizens’ Fund (FCF) is a perpetual fund that was established by the Government of British Columbia in 1969, with an initial allocation of $25 million. The interest earned by the fund each year provides money to enhance economic development, cultural, social and educational opportunities for Aboriginal people (status, non-status, Metis and Inuit) living in British Columbia. The loan program has a 40% non-repayable grant contribution encompassed in the loan. Commercial loans and commercial mortgagesCommercial loans are 100% repayable with financing up to $250,000 for the start-up, acquisition or expansion of a business. Commercial mortgages are available for the construction, purchase or refinancing of business developments, these are secured by either a mortgage or mortgage of lease.
23
SERVICE33%
MANUFACTURING6%
LAND DEVELOPMENT1%
FISHERIES1%
CONSTRUCTION12%
TOURISM5%
TRANSPORTATION9%
AGRICULTURE6%
FORESTRY20%
RETAIL7%
TOTAL LOANS BY INDUSTRY
CARIBOO
$1,213,589
$202,500$108,875
$178,735
$431,388
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
KOOTENAY
NORTH EASTERN
THOMPSO
N/OKANAGAN
NECHAKO
TOTAL LOANS BY REGION
Statistics and Graphs
BUSINESS EQUITY FUNDBY REGION
Thompso
n/Oka
nagan
$50,000
0
$100,000
$150,000
$200,000
$250,000
$350,000
No. of Loans 13 1 2 6 0
$300,000
North Ea
stern
Kootenay
Cariboo
Nechako
FIRST CITIZENS FUNDBY REGION
$327,589
$25,375
$49,735
$0
$209,800
FIRST CITIZENS FUNDBY REGION
Land D
evelo
pment
$50,000
0
$100,000
$150,000
$200,000
$250,000
Serv
iceReta
il
Fore
stry
Agricu
lture
Transp
ortaon
FIRST CITIZENS FUNDBY INDUSTRY
No. of Loans 101 3 2 2 4
$50,750
$231,521
$66,422
$138,759
$63,437 $61,610
FIRST CITIZENS FUNDBY INDUSTRY
Agricu
lture
/Fore
stry
$50,000
0
$100,000
$150,000
$200,000
$250,000
$350,000
$300,000
$400,000
$450,000
$500,000
Ulies
Construc
onReta
il
Info
rma
on
Profe
ssio
nal/Tech
nical
Administ
rave
Health C
are
Touris
m/F
ood Serv
ices
Serv
ice
Manufa
cturin
g
Transp
ortaon
BUSINESS EQUITY FUNDBY INDUSTRY
BUSINESS EQUITY FUNDBY INDUSTRY
TOTAL LOANS BY REGIONTOTAL LOANS BY INDUSTRY
BUSINESS EQUITY FUNDBY REGION
$672,484
$89,425
$0
$659,082.23
$240,634Cariboo
Kootenay
North Eastern
Thompson/Okanagan
Nechako
24
Grade 12 BursaryTishan Jones
Precious Young-Whiteway
ANTCO/BMO BursaryJeremy Sterling
Endowment Recipients
Post Secondary EndowmentRiley Vercillo Tahnyea Robbins
Tatyana Daniels Kristen Crawford
Erica Strain
Kamloops Ambassador Program
Autumn Walkem is a 17 year old
member of the Nicomen Band.
Autumn said she was proud
to be sponsored by ANTCO
because it was a way for her
to show indigenous pride and
professional capacity. She said it
taught her a lot about the nature
of commitment and forming
connections.
2016 AGM Award Recipients
Second Pass Forestry Ltd.- Darcy and Tanner
LeBourdais Youth Business of the Year
Rocky Mountain Chocolate Prince George- Trent and
Rachel Derrick- Business of the Year
Ananda Tavam Inc.- Rhonda Dieni
Female Business of the Year
Ainsworth Hotsprings Resort - Rod and Jan Bateman
(Managers) and Jared Basil (Kootenay Band Councillor)
Tourism Business of the Year
Honouring Our Youth and Clients
Matthew PascoExecutive Committee: Chairperson: President
Gary SwiteExecutive Committee: Vice-President Loan Board Committee
ALL NATIONS TRUST COMPANYALL NATIONS DEVELOPMENT CORPORATION
BOARD OF DIRECTORS
Stacie CoutleeChairperson: Conduct Review Committee Investment and Lending Committee
Julia DickChairperson: Loan Board Committee Audit/Finance Committee Conduct Review Committee
Latrica BabinChairperson: Investment and Lending Committee Ex-officio Member of the Loan Board Committee
ALL NATIONS INSURANCE BROKERS INC
Tim Low, PresidentMatthew Pasco, Secretary
Latrica Babin, DirectorGreg Mazur, Director
0966771 BC LTDGary Swite, President
Stacie Coutlee, SecretaryStacy Thom, Director
Christopher DerricksonExecutive Committee: TreasurerChairperson: Audit/Finance Committee
Gail JoeExecutive Committee: SecretaryLoan Board Committee
ALL NATIONS INVESTMENT CORPORATION
Christopher Derrickson, PresidentTim Low, Secretary
Latrica Babin, Director
Greg Mazur Investment and Lending Committee
Tim Low Loan Board CommitteeAudit/Finance Committee Byron Louis Conduct Review Committee Loan Board Committee
Stacy ThomInvestment and Lending Committee
THE COMPANYIncorporated under the Company Act of British Columbia in December 1984 and registered as All Nations Trust Company under the Trust Company Act of the Province of British Columbia in November 1987.
ANTCO is owned by 215 Shareholders consisting of Bands, Tribal Councils, Aboriginal Businesses, Status, Non Status and Metis individuals in the Common Bond of Association.
ALL NATIONS TRUST COMPANY520 Chief Eli LaRue Way, Kamloops, BC V2H 1H1
Telephone 778-471-4110 Toll Free 1-800-663-2959 Fax 250-372-2585Email: [email protected]
www.antco.bc.ca