Public Trustee Trust Funds. Fo he dec Vie.i i [ 31, 116

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1 Fo he dec Vie.i i [ 31, 116

Mngement s Responsibility for the Finncil Sttements Mngement is responsible for the integrity of the finncil informtion reported by the Public Trustee of Nov Scoti.

2 Mngement s Responsibility for the Finncil Sttements Mngement is responsible for the integrity of the finncil informtion reported by the Public Trustee of Nov Scoti. Fulfilling the responsibility requires the preprtion nd presenttion of finncil sttements nd otherfinncil informtion in ccordnce with Interntionl Finncil Reporting Stndrds ( IFRS ). These stndrds re consistently pplied. The Mngement of Public Trustee confirm tht, to the best of our belief: the preprtion of the finncil sttements is in ccordnce with IFRS; significnt ssumptions used by us in mking ccountingestimtes, including those mesured t firvlue nd t nominl vlue, re resonble; nd significnt ccounting policies under IFRS hve been determined by us to represent the ctivities of the Office; The Office of the Auditor Generl of Nov Scoti hs udited the Public Trustee finncil sttements in ccordnce with Interntionl Finncil Reporting Stndrds. The Auditor s responsibility is to express n opinion on the firness of mngement s finncil sttements. The Auditor s Report outlines the scope of the udit nd the Auditor s opinion. k Shnnon Ingrhm-Christie Public Trustee Cx Beverly Whittker-Tggrt Director, Finnce, Administrtion & Systems L (N -

I Auditor Generl of Nov Scoti j Li -,, INDEPENDENT AUDITOR S REPORT To the Public Trustee nd to the Attorney Generl: Report on the Finncil Sttements hve udited the ccompnying finncil sttements of the

3 I Auditor Generl of Nov Scoti j Li -,, INDEPENDENT AUDITOR S REPORT To the Public Trustee nd to the Attorney Generl: Report on the Finncil Sttements hve udited the ccompnying finncil sttements of the Public Trustee Trust Funds, which comprise the sttement of Net Assets Held in Trust s t Mrch 31, 2015, nd the sttements of Net nd Comprehensive Loss, Continuity of Net Assets Held in Trust nd Csh Flows, for the yer then ended, nd summry of significnt ccounting policies nd other explntory informtion, Mngement s Responsibilities for the Finncil Sttements Mngement is responsible for the preprtion nd fir presenttion of these finncil sttements in ccordnce with Interntionl Finncil Reporting Stndrds, nd for such internl control s mngement determines is necessry to enble the preprtion of finncil sttements tht re free from mteril missttement, whether due to frud or error, Auditor s Responsibility My responsibility is to express n opinion on these finncil sttements bsed on my udit. I conducted my udit in ccordnce with Cndin generlly ccepted uditing stndrds. Those stndrds require tht I comply with ethicl requirements nd pln nd perform the udit to obtin resonble ssurnce bout whether the finncil sttements re free from mteril missttement. An udit involves performing procedures to obtin udit evidence bout the mounts nd disclosures in the finncil sttements. The procedures selected depend on the uditor s judgement, including the ssessment of the risks of mteril missttement of the finncil sttements, whether due to frud or error. In mking those risk ssessments, the uditor considers internl control relevnt to the entity s preprtion nd fir presenttion of the finncil sttements in order to design udit procedures tht re pproprite in the circumstnces, but not for the purpose of expressing n opinion on the effectiveness of the entity s internl control. An udit lso includes evluting the ppropriteness of the ccounting policies used nd the resonbleness of ccounting estimtes mde by mngement, s well s evluting the overll presenttion of the finncil sttements. I believe tht the udit evidence I hve obtined is sufficient nd pproprite to provide bsis for my qulified udit opinion. Bsis for Qulified Opinion Due to the nture of the court process of ssigning clients to the Public Trustee, it is not possible to verify by udit procedures tht ll client ssets, or the income relted to these ssets, cme under the dministrtion of, or were recorded by, the Public Trustee. Accordingly, my verifiction of trust ssets nd relted income ws limited to those recorded in the ccounts. Qulified Opinion In my opinion, except for the possible effects of the mtter described in the Bsis for Qulified Opinion prgrph, the finncil sttements present firly, in ll mteril respects, the finncil position of the Public Trustee Trust Funds s t Mrch 31,2016, nd its finncil performnce, nd its chnges in net ssets nd its csh flows for the yer then ended in ccordnce with Interntionl Finncil Reporting Stndrds. Michel A. Pickup, CPA, CA Auditor Generl of Nov Scoti Hhfi, Nov Scoti July 11, _ m 0 rt

Sttement of Net Assets Held in Trust Mrch 31, 2016 Assets

estte nd other ssets (NoteS) 45,596,581 47,713,056 Common

Fund (Nte 7) 3,120,446 3,001,938 Accounts receivble nd ccrued

Esttes nd Trusts Due to Specil Reserve Fund 124,514 115,957

4 Sttement of Net Assets Held in Trust Mrch 31, 2016 Assets Esttes nd Trusts Csh $ 5,007,831 $ 1,758,705 Securities, rel estte nd other ssets (NoteS) 45,596,581 47,713,056 Common Fund Securities (Nte 6) 2,987,536 2,974,186 Specil Reserve Fund (Nte 7) 3,120,446 3,001,938 Accounts receivble nd ccrued interest 587, ,811 57,300,313 56,153,696 Libilities Esttes nd Trusts Due to Specil Reserve Fund 124, ,957 Accounts pyble 345, , , Net Assets Held in Trust S &...S Approved: PublicTrustee 6 Shnnon Ingrhm-Christie See ccompnying notes to the finncil sttements C, to C:

Sttement of Net nd Comprehensive Loss Revenues Pension $ 8,030,619 $ 7,539,697 Investment income 800,481 680,378 Other 790,601 1,004,406 Annuities 660,632 668,345 10,282,333 9,892,826 Common Fund

406439 10,009,851 Expen5es Accommodtion 7,174,578 7,032,420 Fees chrged by the Public Trustee pid to the Province (Note 9) 1,182,404 1,080,073 Txes 885,142 590,194 Funerl 513,260 445,458 Medicl

5 Sttement of Net nd Comprehensive Loss Revenues Pension $ 8,030,619 $ 7,539,697 Investment income 800, ,378 Other 790,601 1,004,406 Annuities 660, ,345 10,282,333 9,892,826 Common Fund interest nd investment income (NoteS) 124, , ,009,851 Expen5es Accommodtion 7,174,578 7,032,420 Fees chrged by the Public Trustee pid to the Province (Note 9) 1,182,404 1,080,073 Txes 885, ,194 Funerl 513, ,458 Medicl 377, ,725 Allownces 371, ,455 Rel estte 222, ,394 Legl costs 195, ,024 Property cre 192, ,432 Utilities 140, ,064 Common Fund interest income to be trnsferred to the Specil Reserve Fund (Note?) 124, ,957 Insurnce 101, ,248 Miscellneous 76, ,558,477 10,820,363 Loss from opertions (1,152,038) (810,512) Relized loss on sle of ssets held in trust (543,054) (746,578) Unrelized (loss) gin on ssets held in trust t yer end (134,121) 178,498 Net nd comprehensive loss $±ts29113} S ILIZS,532) See ccompnying notes to the finncil sttements U, F, 0-

Sttement of Continuity of Net Assets Held in Trust Blnce, beginning of yer $ 55,525,891 $ 52,508,079

comprehensive loss (1,829,213) (1,378,592) Specil Reserve Fund Income (Note 7) 219,401 211,497

749,638 Less: Distribution of esttes nd trusts 10,887,629 14,500,079 Undistributble esttes nd trusts

6 Sttement of Continuity of Net Assets Held in Trust Blnce, beginning of yer $ 55,525,891 $ 52,508,079 Add: Esttes nd trusts of new clients nd dditionl ssets of existing clients 13,972,525 18,916,733 Net nd comprehensive loss (1,829,213) (1,378,592) Specil Reserve Fund Income (Note 7) 219, ,497 12,362, ,638 Less: Distribution of esttes nd trusts 10,887,629 14,500,079 Undistributble esttes nd trusts (per Section 28) 69, ,654 Specil Reserve Fund Distribution (Note 7) 100,893 95,093 11,058,163 14,731,825 Blnce, end of yer 5 56, S See ccompnying notes to the finncil sttements I, C-

Sttement of Csh Flows Operting Activities Net nd comprehensive loss from

Unrelized (losses) gins 134121 (178498) Net nd comprehensive loss from

of securities 9,156,396 5,234,044 Sle of rel estte nd other ssets

17,892,119 13,340,565 Decrese in Esttes nd Trusts Purchse of securities

(5,455,789) (3,088,580) Chnge in Common Fund csh position (8,557) 19,280

641) (136,654) (12,947,901) (11,337,714) Increse in csh 3,249,125 445,761

7 Sttement of Csh Flows Operting Activities Net nd comprehensive loss from opertions $ (1,829,213) $ (1,378,592) Deduct non-csh trnsctions: Unrelized (losses) gins (178498) Net nd comprehensive loss from opertions - csh bsis ( ) ( ) Increse in Esttes nd Trusts Sle of securities 9,156,396 5,234,044 Sle of rel estte nd other ssets 1,062,504 1,850,909 Csh holdings of esttes nd trusts 7,573,219 6, ,892,119 13,340,565 Decrese in Esttes nd Trusts Purchse of securities (7,413,914) (8,131,760) Distribution of csh holdings in esttes nd trusts (5,455,789) (3,088,580) Chnge in Common Fund csh position (8,557) 19,280 Trnsfer to Province Section 28 (69.641) (136,654) (12,947,901) (11,337,714) Increse in csh 3,249, ,761 Csh, beginning of yer 1, , Csh, end of yer S S 1,758,705 See ccompnying notes to the finncil sttements N. 0) -

Public Trustee Trust Fund5 Notes to the Finncil Sttements 1. Reporting Entity The Public Trustee ws estblished pursunt to the Public Trustee Act nd is independent of government.

The Public Trustee is empowered to perform the duties of gurdin, custodin, trustee, nd executor or dministrtor of n estte.

8 Public Trustee Trust Fund5 Notes to the Finncil Sttements 1. Reporting Entity The Public Trustee ws estblished pursunt to the Public Trustee Act nd is independent of government. The Public Trustee is set up s corportion to protect the finncil nd personl well-being of clients. The Public Trustee is empowered to perform the duties of gurdin, custodin, trustee, nd executor or dministrtor of n estte. All investments by the Public Trustee re to be mde in ccordnce with the Trustee Act. This set of finncil sttements reflects the net ssets held in trust nd the ctivity for the esttes nd trusts dministered by the Public Trustee. Seprte operting costs for the Public Trustee re presented in Note Bsis of Preprtion () (b) (c) (d) Sttement of complince These finncil sttements hve been prepred in ccordnce with the principles of Interntionl Finncil Reporting Stndrds (IFRS). Bsis of Mesurement The finncil sttements hve been prepred on the historicl cost bsis except for securities, rel estte, other ssets, nd mounts receivble nd pyble which re presented t fir vlue. Functionl nd Presenttionl Currency The finncil sttements re presented in Cndin dollrs, which is the functionl currency for the Public Trustee. Use of Estimtes nd Judgments The preprtion of these finncil sttements in conformity with IFRS requires mngement to mke judgments, estimtes, nd ssumptions tht ffect the ppliction of ccounting policies nd the reporting mounts of ssets, libilities, income, nd expenses. Actul results could differ from mngement s best estimtes s dditionl informtion becomes vilble in the future. C, to 0-

Notes to the Finncil Sttements 3. Summry of Significnt Accounting Policies The ccounting policies set out below hve been pplied consistently to ll periods presented in the finncil sttements.

9 Notes to the Finncil Sttements 3. Summry of Significnt Accounting Policies The ccounting policies set out below hve been pplied consistently to ll periods presented in the finncil sttements. () Initil Recognition nd Vlution of Assets nd libilities The Public Trustee dministers client investments, rel property, nd other ssets (eg. vehicles, jewelry). On initil recognition, these ssets nd libilities re recorded t fir vlue on the effective dte the Public Trustee commences dministrtion of the sset or libility. Other ssets, including personl effects, re crried t fir vlue. Fir vlue is determined through pprisl where deemed pproprite. For some other ssets where no observble mrket exists, these ssets remin vlued t nominl mount ($1) until such time tht more relible vlution informtion is vilble, (b) Subsequent Vlution Rel Property IFRS requires tht, in the bsence of n IFRS tht cn be specificlly pplied to sitution, mngement should use judgment in developing nd pplying n ccounting policy to provide relevnt, relible, nd prudent informtion. In these instnces, it is suggested tht IFRS requirements in deling with similr issues re pplied, s well s mesurement concepts included within the IFRS frmework. Rel property included within the sttement of net ssets held in trust primrily represents the vlue of residentil properties currently occupied by the clients dministered by the Public Trustee, or forming prt of their esttes. Rel property is crried t fir vlue in the sttement of net ssets held in trust, s determined by professionl pprisls or, where n pprisl is not vilble or is not current, s determined from the most recent property ssessment or other relevnt vlution dt. Investments Client securities re crried t fir vlue in the sttement of net ssets held in trust s determined by externl third prty informtion. The composition of securities dministered by the Public Trustee is s follows: i) Gurnteed Investment Certifictes 75% ii) Equity Securities 14% iii) Bonds 2% iv) Other (RRSP5, RRIFs, Mutul Funds) 9% 0 00 C,

where no ctive mrket exists, re held t nominl vlue ($1).

10 Notes to the Finncil Sttements 3. Summry of Significnt Accounting Policies (continued) Other Assets Other client ssets re crried t fir vlue in the sttement of net ssets held in trust s determined by pprisl where deemed pproprite, or, where no ctive mrket exists, re held t nominl vlue ($1). Ic) Revenue Recognition Income from pensions, benefits nd settlements, s well s interest nd other investment income re recognized s erned on n ccrul bsis. Gins nd losses on ssets represent the pprecition or deprecition in the vlue of ssets dministered by the PublicTrustee from the vlue ssigned on the dte of the commencement of dministrtion of ssets by the PublicTrustee, the dte of purchse, or the vlue t the prior yer end. Such gins nd losses become relized on the dte the ssets re sold or relesed to clients, beneficiries or heirs. Both relized gins nd losses nd chnges in unrelized gins nd losses re reported in the sttement of net nd comprehensive loss. (d) Csh nd Csh Equivlents Investments held by the PublicTrustee re highly liquid nd my be esily drwn upon by the PublicTrustee in dministering the esttes nd trusts. 4. Finncil Risk Mngement Section 3(1) of the Public Trustee Act grnts ll trustees the uthority to invest in ny form of property or security, including security issued by mutul fund. The stndrd of cre, skill, diligence, nd judgment imposed by the section is tht of prudent investor. The Public Trustee utilizes conservtive investment mngement orienttion. All trust property must be invested in mnner tht reflects the stndrd nd high duty of cre required to fulfill the responsibilities of the PublicTrustee. The Public Trustee s long-term objectives s prudent investor re threefold: i) to minimize ny loss of cpitl; ii) where possible, to provide income sufficient to meet the individul client s or trust s ongoing income needs; nd iii) for clients or trusts with higher risk tolernces or longer term investment horizons, the potentil for cpitl pprecition. 0 w Co

Notes to the Finncil Sttements 4. Finncil Risk Mngement (continued) The mjority of the ccounts held by the Public Trustee re dministered on behlf of clients nd re not held in pooled fund.

11 Notes to the Finncil Sttements 4. Finncil Risk Mngement (continued) The mjority of the ccounts held by the Public Trustee re dministered on behlf of clients nd re not held in pooled fund. Clients with five yers or less projected investment horizon with the Public Trustee my hve their excess funds invested in combintion of cshble gurnteed investment certifictes (GICs), tresury bills, fixed term GICs nd bonds with mximum investment period of five yers. Liquidity risk Liquidity risk is the risk tht client ccount is unble to meet its finncil obligtions s they come due. The Public Trustee minimizes this risk by ensuring tht client ccounts hold sufficient csh funds to meet current libilities nd expenses nd considers liquidity risk t Mrch 32, 2016 to be insignificnt. Credit risk Credit risk is the risk tht counterprty to finncil instrument will fil to dischrge n obligtion or commitment it hs entered into, resulting in finncil loss. The investment policy estblished by the Public Trustee limits credit risk in the following mnner: client excess funds invested in GICs re not to exceed $95,000 from ntionl bnk ortrust compny or $235,000 from credit union. This ensures tht if finncil institution defulted, the client would receive from the insurnce pln the client s principl plus ny ccrued interest. Bonds purchsed with client excess funds must hve minimum rting of BBB by the Dominion Bond Rting Service or n equivlent rting by nother recognized rting gency. Interest rte risk Interest rte risk is the risk tht the fir vlue or csh flows of interest bering investments will fluctute due to chnges in mrket interest rtes. Investments in gurnteed investment certifictes nd other term deposits with mturity greter thn one yer re subject to interest rte risk. The effect on net income of 1% chnge in interest rtes on term deposits with mturity of greter thn one yer would be estimted t $110,807 (2025. $112,688). Becuse most term deposits held by the PublicTrustee hve term to mturity of one yer or less, interest rte risk is not considered significnt. The Public Trustee mitigtes this risk by investing excess client funds in diversified portfolio, including investing in fixed rte securities. 5. Securities, Rel Estte, nd Other Assets Securities, rel estte, nd other ssets re comprised of the following blnces: Securities $ 38,783,051 $ 39,589,172 Rel Estte 6,442,893 7,691,650 Other Assets 370, S S C It

12 Notes to the Finncil Sttements 6. common Fund Securities Section 30 of the Public Trustee Act permits the PublicTrustee to invest monies, not subject to ny express trust or direction for investment thereof, into Common Fund. Investments of the Common Fund re vlued t mrket vlue s of Mrch 31, The Common Fund serves s generl bnk ccount for its clients nd llows the Public Trustee to pool smll vlue client ccounts in order to provide more substntil blnces used to purchse income-generting investments. The interest to be pid to clients with funds in the Common Fund is determined by regultion which is s follows: the prescribed rte of interest is floting rte scertined by the Public Trustee hlf yerly, nd is one percent less thn the rte rrived t by verging the lowest rte offered during the period on svings - non chequing ccounts by the Cndin Imperil Bnk of Commerce nd the Royl Bnk of Cnd t their respective Hlifx brnches. In ddition, the regultion provides tht, in order to ern interest, the client s ccount must hve hd minimum qurterly blnce of $1,000 or more nd must hve been held in trust by the Public Trustee for more thn three months. Due to the fct tht the current interest rte is below the prescribed rte, ll interest received in the Common Fund during the yer will be trnsferred to the Specil Reserve Fund fter providing for bnk fees nd other chrges in the Common Fund, in ccordnce with the Public Trustee Act. A continuity of the Common Fund is s follows: Blnce, beginning of yer $ 2,974,186 $ 2,969,406 Add: Purchse of securities Interest nd investment income 19, ,117,921 7, ,093,963 Less: Disbursements Amount to be trnsferred to the Specil Reserve Fund (5,871) (3,820) (124,5 14) (115,957) Blnce, end of yer The blnce of the Common Fund consists of: Csh Investments Pybles (including $124,514 to the Specil Reserve Fund $115,957) S $ 124,514 2,993,815 (130,793) S S S 115,957 2,976,938 (118,709) S I 0 = C:

Investments Nov Scoti Public Trustee Trust Funds Notes to the Finncil Sttements 7. Specil Reserve Fund Section 32 of the Public Trustee Act provides for the estblishment of Specil Reserve Fund.

13 Investments Nov Scoti Public Trustee Trust Funds Notes to the Finncil Sttements 7. Specil Reserve Fund Section 32 of the Public Trustee Act provides for the estblishment of Specil Reserve Fund. The Fund is dministered by the Public Trustee nd held in joint trust with the Deputy Minister of Finnce nd Tresury Bord. The stted purpose of the Fund is to provide for ny future deficiency in the Common Fund. Investment income erned in the Common Fund in excess of the prescribed interest pid to clients ccounts is trnsferred to the Specil Reserve Fund nnully s required by the Public Trustee Act. Income received on investments in the Specil Reserve Fund my be trnsferred to the Province s generl revenues in such mounts s my be determined by the Public Trustee nd the Deputy Minister of Finnce nd Tresury Bord. Such trnsfers re pplied to the cost of dministrtion of the Common Fund, the Specil Reserve Fund, nd the Public Trustee Office. On n nnul bsis the Public Trustee consults with the Deputy Minister of Finnce nd Tresury Bord, nd the decision hs been to trnsfer the Specil Reserve Fund interest to the Minister of Finnce for the purposes prescribed in legisltion. Interest received during the yer to be trnsferred to the Province totlled $95,018 (2015 -$100,893). The continuity of the Specil Reserve Fund is s follows: Blnce, beginning of yer $ 3,001,938 $ 2,885,534 Add: Interest income ,540 Net mount to be trnsferred from the Common Fund ,957 3,221,339 3,097,031 Less: Amount trnsferred to the Province of (100,893) (95.093) Blnce, end of yer The blnce of the Specil Reserve Fund consists of: Csh Receivbles S 31WAt $ 102, ,130 2,851,360 S S 3,001,938 S 108, , ,521 S 3.001,938 C., w =

14 The Public Trustee Trust Funds Notes to the Finncil Sttements 8. Fir Vlues Client investments nd Common Fund ssets s well s other finncil ssets re reflected in the sttement of net ssets held in trust t fir vlue. In mngement s opinion, the fir vlue of csh nd ccrued interest pproximtes their crrying vlue due to the short term to mturity. Fir Vlue Hierrchy - three levels of the fir vlue hierrchy re s follows: Level 1 Undjusted prices in ctive mrkets for identicl ssets or libilities. Level 2 Level 3 Observble inputs other thn Level 1 prices, such s quoted prices for similr ssets or libilities, quoted prices in mrkets with insufficient volume or infrequent trnsctions (less ctive mrket). Inputs tht re unobservble; there is little, if ny, mrket dt. Fir vlue determintion would generlly require significnt mngement judgment or estimtion. As t Mrch 31, 2016, client investments nd Common Fund investments were vlued using Level 2 inputs. During the yer ended Mrch 31, 2016, there ws no trnsfer between Level 2 nd the other levels in the fir vlue hierrchy. 9. Operting Costs Operting costs of the Public Trustee re bsorbed by the Nov Scoti Deprtment of Justice nd re not reflected in the Sttement of Net nd Comprehensive Loss. These costs re offset by fees chrged for dministering esttes, recoveries of client expenses pid by the Public Trustee, nd trnsfers of investment income from the Specil Reserve Fund. Included in fees chrged by the Public Trustee is HST totlling $145,588 (2015- $135,075), which the Public Trustee collects on behlf of the Province. These mounts re not included s prt of fees used to offset operting costs. Deprtment of Justice $ Slries nd benefits $ 1,867,657 1,971,339 Other operting costs 168, ,782 Rent ,165 2,192,605 2,373,286 Less trnsfers to the Province Fees 971, ,678 Recoveries 17,276 17,646 Specil Reserve Fund Income 100,893 95,093 1,089,841 1,009,417 Net cost to the Province S 1.102,764 S Fees nd recoveries totling $988,948 (2015 -$914,324) represent csh pyments to the Province. They re net of HST of $146,588 (2015 -$135,075) nd net ccrued fees of $46,868 (2015 -$30,674). The totl gross mount of these fees nd recoveries is $1,182,404 (2015 -$1,080,073) nd is disclosed on the Sttement of Net nd Comprehensive Loss.

Appendix U: THE BOARD OF MANAGEMENT FOR THE REGAL HEIGHTS VILLAGE BUSINESS IMPROVEMENT AREA. Financial Statements For the Year Ended December 31, 2011

Appendix U: THE BOARD OF MANAGEMENT FOR THE REGAL HEIGHTS VILLAGE BUSINESS IMPROVEMENT AREA. Financial Statements For the Year Ended December 31, 2011 I Appendix U: Finncil Sttements For the Yer Ended December 31, 2011 0 DECEMBER 31, 2011 CONTENTS Pce Independent uditor s report 3 Finncil sttements Sttement of finncil position 4 Sttement of opertions