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1 p p Finncil Sttements of NOVA SCOTIA MUNICIPAL FINANCE CORPORATION Yers ended Mrch 31, 2012 nd 2011 I I

2 KPMG LLP Teierhc ne Chrtered Accountnts P ( t 307 Suite 500 Purdys Whrf Tower (nternet www kpmgc (959 Upper Wter Street Hhfx NS B3J 3N2 Cnd INDEPENDENT AUDITORS REPORT To the Directors of Nov Scoti Municipl Finnce Corportion We hve udited the ccompnying finncil sttements of Nov Scoti Municipl Finnce Corportion which comprise the sttements of finncil position s t Mrch 31, 2012, Mrch 31, 2011, nd April 1, 2010, the sttements of opertions, chnges in net finncil ssets nd csh flows for the yers ended Mrch 31, 2012 nd Mrch 31, 2011, nd notes, comprising summry of significnt ccounting policies nd other explntory informtion. Mngement s Responsibility for the Finncil Sttements Mngement is responsible for the preprtion nd fir presenttion of these finncil sttements in ccordnce with Cndin public sector ccounting 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. Auditors Responsibility Our responsibility is to express n opinion on these finncil sttements bsed on our udits. We conducted our udits in ccordnce with Cndin generlly ccepted uditing stndrds. Those stndrds require tht we comply with ethicl requirements nd pln nd perform the udits 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 our judgment, including the ssessment of the risks of mteril missttement of the finncil sttements, whether due to frud or error. In mking those risk ssessments, we consider 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 ccounting policies used nd the resonbleness of ccounting estimtes mde by mngement, s well s evluting the overll presenttion of the finncil sttements. We believe tht the udit evidence we hve obtined is sufficient nd pproprite to provide bsis for our udit opinions. Opinion In our opinion, the finncil sttements present firly, in ll mteril respects, the finncil position of Nov Scoti Municipl Finnce Corportion s t Mrch 31, 2012, Mrch 31, 2011 nd April 1, 2010, nd its results of opertions nd its chnges in net finncil ssets nd its csh flows for the yers ended Mrch 31, 2012 nd Mrch 31, 2011 in ccordnce with Cndin public sector ccounting stndrds. ILP Chrtered Accountnts June 20, 2012 Hlifx, Cnd

3 NOVA SCOTIA MUNICIPAL FINANCE CORPORATION Finncil Sttements Yers ended Mrch 31, 2012 nd 2011 Finncil Sttements Sttements of Finncil Position 1 Sttements of Opertions 2 Sttements of Chnges in Net Finncil Assets 3 Sttements of Csh Flows 4 Notes to Finncil Sttements 5

4 Mrch 31, 2012 nd Mrch 31, 2011 nd April 1, 2010 Director Director / Mrch 31 Mrch 31 April 1 On behlf of the Bord: See ccompnying notes to finncil sttements. Accumulted surplus $ 6,263,527 $ 6,381,737 $ 6,297,296 Net finncil ssets 6,263,527 6,381,737 6,297,296 Accounts pyble 65,220 50,449 70, ,331, ,349, ,342,773 Debentures (note 4) 733,008, ,510, ,299,838 Accrued interest pyble 10,189,073 10,734,037 10,933,171 Employee obligtions (note 5()) 68,917 53,917 38,917 Finncil libilities: 749,595, ,731, ,640,069 Lons to municipl units (note 3) 733,039, ,543, ,328,217 Accounts receivble - HST receivble ,444 Accrued interest receivble 10,210,297 10,746,624 10,938,412 Csh nd csh equivlents (note 6()) $ 6,344,453 $ 6,440,526 $ 6,362,635 Finncil ssets: Sttements of Finncil Position NOVA SCOTIA MUNICIPAL FINANCE CORPORATION - 9,361

5 NOVA Sttements of Opertions SCOTIA MUNICIPAL FINANCE CORPORATION Yers ended Mrch nd 2011 Budget Actul Actul Revenue: Interest on lons to municipl units 34,210,534 $ 33,172,602 $ 34,459,640 Interest on short-term investments 1 11,507 78,550 72,497 Recovery of issue costs 365, , ,703 Administrtion fee 440, , ,181 35,127, ,320 35,374,021 Expenses: Interest on debenture debt nd short term lons 34,208,701 33,170,779 34,457,915 Debenture issue expenses 373, , ,257 Administrtive expenses 521, , ,408 35,103,550 33,891,530 35,289,580 Annul operting surplus (deficiency) 24,173 (118,210) 84,441 Accumulted surplus, beginning of yer 6,381,737 6,381,737 6,297,296 Accumulted surplus, end of yer $ 6,405,910 $ 6,263,527 $ 6,381,737 See ccompnying notes to finncil sttements. 2

6 NOVA SCOTIA MUNICIPAL FINANCE CORPORATION Sttements of Chnges in Net Finncil Assets Yers ended Mrch 31, 2012 nd 2011 Budget Actul Actul Annul operting surplus (deficiency) $ 24,173 $ (118,210) $ 84,441 Increse (decrese) in net finncil ssets 24,173 (118,210) 84,441 Net finncil ssets, beginning of yer 6,381,737 6,381,737 6,297,296 Net finncil ssets, end of yer $ 6,405,910 $ 6,263,527 $ 6,381,737 See ccompnying notes to udited finncil sttements 3

7 Yers ended Mrch 31, 2012 nd 2011 Csh provided by (used in): See ccompnying notes to finncil sttements. Supplementl csh flow informtion (note 6) Csh nd csh equivlents, end of yer $ 6,344,453 $ 6,440,526 Csh nd csh equivlents, beginning of yer 6,440,526 6,362,635 Increse (decrese) in csh nd csh equivlents (96,073) 77,891 (23,532,871) 28,163,935 Principl pyments on debenture (96,508,410) (90,882,065) Issue of debentures 72,975, ,046,000 Finncing ctivities: Increse in lons to municipl units (72,975,251) (119,045,242) 23,533,309 (28,168,700) Decrese in lons to municipl units 96,508, ,542 Investing ctivities: Increse in employee obligtions 15,000 15,000 Chnge in noncsh operting working cpitl (note 6(b)) 6,073 (17,425) Annul operting surplus (deficiency) $ (118,210) $ 84,441 Amortiztion of fir vlue djustment on lons to municipl units (29,622) (46,514) Amortiztion of fir vlue djustment on debenture debt 30,248 47,154 Operting ctivities: Items not involving csh: (96,511) 82,656 Sttement of Csh Flows NOVA SCOTIA MUNICIPAL FINANCE CORPORATION

8 Yers ended Mrch 31, 2012 nd periods. The Corportion provides certin employee benefits which will require funding in future (d) Employee future benefits: Lons to municipl units re recorded t mortized cost. In ccordnce with the trnsitionl provisions in PSAB, the Corportion hs dopted the chnges (C) Lons to municipl units: short-term lons to municipl units. with the Province of Nov Scoti with mturities of generlly three months or less nd ny Csh nd csh equivlents include csh on hnd, blnces with bnks, short-term deposits (b) Csh nd csh equivlents: goods or services nd/or the cretion of legl obligtion to py. Revenues re normlly recognized in the yer in which they re erned nd mesurble. Expenses re recognized s they re incurred nd mesurble s result of receipt of The Corportion follows the ccrul method of ccounting for revenues nd expenses. () Bsis of ccounting: 1. Significnt ccounting policies: summrized in note 2. The impct of the trnsition of the Corportion s finncil sttements to PSAB hs been is April 1, 2010 nd ll comprtive informtion provided hs been presented by pplying PSAB. retrospectively, subject to certin exemptions llowed under these stndrds. The trnsition dte 2012, the finncil sttements were prepred in ccordnce with Prt V of the CICA Hndbook. ( PSAB ). These re the first finncil sttements prepred in ccordnce with PSAB. Prior to On April 1, 2011, the Corportion dopted the Cndin public sector ccounting stndrds regionl school bords, nd hospitls through centrl borrowing uthority. The Corportion is is to provide finncing of pproved cpitl projects for municiplities, municipl enterprises, opertions on Jnury 1, 1980 nd hs Mrch31 fiscl yer-end. The object of the Corportion Finnce Corportion Act which ws proclimed on July 31, The Corportion begn Nov Scoti Municipl Finnce Corportion (the Corportion ) ws creted by the Municipl not subject to provincil or federl txes. Notes to Finncil Sttements NOVA SCOTIA MUNICIPAL FINANCE CORPORATION

9 Yers ended Mrch 31, 2012 nd s revenue in the period erned. Interest revenue on lons to municipl units is recognized on n ccrul bsis nd reported (g) Revenue recognition: reserve fund to be mintined t minimum of $6 million.. The ccumulted surplus ws creted from nnul ccumulted surpluses nd interest on monies. Included in the ccumulted surplus is the reserve fund which provides cpitl funds which hd been dvnced by the Province of Nov Scoti nd interest on other surplus nd timing differences. During the yer, the bord pproved policy tht requires the bse for the Corportion, s well s funds which my be required for dministrtive purposes (f) Accumulted surplus: Debentures re recorded t mortized cost. (e) Debentures: Nov Scoti, which provides pension benefits bsed on length of service nd ernings. (the Pln ), contributory defined benefit pension pln dministrted by the Province of Contributions to the Pln re required by both the employees nd the employer. The Corportion is not responsible for ny under-funded libility, nor does the Corportion hve ny ccess to ny surplus tht my rise in this Pln. Permnent employees prticipte in the Nov Scoti Public Service Supernnution Pln Employee pension pln: compenstion expense on n ccrul bsis bsed on mngement s best estimte. slry per yer of service to mximum of twenty-six yers. Mngement recognizes Upon retirement, employees re eligible for public service wrd equl to one week s Public service wrds: Significnt ccounting policies (continued): Notes to Finncil Sttements (continued) NOVA SCOTIA MUNICIPAL FINANCE CORPORATION

10 NOVA SCOTIA MUNICIPAL FINANCE CORPORATION Notes to Finncil Sttements (continued) Yers ended Mrch 31, 2012 nd Significnt ccounting policies (continued): (h) Use of estimtes: The preprtion of finncil sttements requires mngement to mke estimtes nd ssumptions tht ffect the reported mounts of ssets nd libilities nd disclosure of contingent ssets nd libilities t the dte of the finncil sttements nd the reported mounts of revenues nd expenses during the yer. Actul results could differ from those estimtes. (i) Future chnges in ccounting policies: The Public Sector Accounting Bord hs issued Section PS Government Trnsfers effective for fiscl yers beginning on or fter April 1, This section revises nd replces existing Section PS 3410 of the sme nme nd cn be pplied either retrospectively or prospectively. Section PS Government Trnsfers estblishes guidnce on the recognition, presenttion nd disclosure of government trnsfers mde to individuls, orgniztions nd other governments. The new stndrd ddresses this with more guidnce specificlly from the perspectives of both trnsferring governments nd recipient governments. The impct of the doption of the revised PS Government Trnsfers is being evluted by mngement nd is not known or resonbly estimble t this time. 2. Trnsitionl djustments: () Bsis of presenttion: The doption of PSAB hd no impct on the Corportion s ccumulted surplus or nnul operting surplus. There were no djustments to the blnce of ccumulted surplus s t April 1, 2010 or the 2011 nnul operting surplus s result of implementing the ccounting chnges. The Corportion did not elect to use ny exemptions llowed in ccordnce with the trnsitionl provisions of PSAB. (b) Erly doption of ccounting stndrds: At the time of trnsition, the Corportion hs erly dopted the following ccounting stndrds on prospective bsis. These stndrds hve been reflected prospectively in the finncil sttements for the current yer: 7

11 2. Trnsitionl djustments (continued): Yers ended Mrch 31, 2012 nd stndrd. There is no mteril impct on the finncil sttements s result of dopting this re recorded t fir vlue. finncil libilities t cost or mortized cost except for csh nd csh equivlents, which Upon doption of this stndrd, the Corportion hs recorded its finncil ssets nd including embedded derivtives tht re not closely relted to the host contrct, re ( Section PS 3450 ) effective for the yer ended Mrch 31, The mndtory Section PS 3450 estblishes stndrds for recognizing nd mesuring finncil primry instruments (such s receivbles, pybles nd equity instruments) nd equity instruments tht re quoted in n ctive mrket. Other finncil ssets nd finncil libilities re generlly mesured t cost or mortized cost. Until n item is not required within the sttement of remesurement gins nd losses. When the mesurement ctegories: fir vlue, or cost or mortized cost. Almost ll derivtives, ssets, finncil libilities nd non-finncil derivtives. Finncil instruments include The Corportion hs elected to erly dopt Section PS rte swps nd currency swps). Finncil instruments re ssigned to one of two derecognized, gins nd losses rising due to fir vlue remesurement re reported in mesured t fir vlue. Fir vlue mesurement lso pplies to portfolio investments in Finncil Instruments ppliction dte of Section PS 3450 is for fiscl yers beginning on or fter April 1, the sttement of remesurement gins nd losses. Budget-to-ctul comprisons re ctegory. New requirements clrify when finncil libilities re derecognized. The bsis, or to relize the sset nd settle the libility simultneously. Section PS 3450 outlines new disclosure requirements of items reported on nd the nture nd extent of enforceble right to set off the recognized mounts nd n intention to settle on net or both on fir vlue bsis, the entity my elect to include these items in the fir vlue mnge nd evlute the performnce of group of finncil ssets, finncil libilities derivtive finncil instruments (such s finncil options, futures nd forwrds, interest reporting entity defines nd implements risk mngement or investment strtegy to offsetting of finncil libility nd finncil sset is prohibited in bsence of leglly risks rising from finncil instruments. (i) PS Finncil Instruments: Notes to Finncil Sttements (continued) NOVA SCOTIA MUNICIPAL FINANCE CORPORATION

12 2. Trnsitionl djustments (continued>: Yers ended Mrch 31, 2012 nd stndrd. There is no mteril impct on the finncil sttements s result of dopting this re removed. The Corportion hs elected to erly dopt Section PS 2601 (ii) PS Foreign in the sttement of remesurement gins nd losses rther thn the sttement of exchnge rte t tht dte. The deferrl nd mortiztion of foreign exchnge gins April 1, This Section revises nd replces Section PS mndtory ppliction dte of Section PS 2601 is for fiscl yers beginning on or fter Foreign Foreign Currency Trnsltion (Section PS 2601 ) effective for the yer ended Mrch 31, The Trnsltion. Under Section PS 2601, the definition of currency risk is mended to conform to the definition in Section PS 3450 Finncil Currency Instruments. The exception to recognition, non-monetry items denominted in foreign currency tht re included in the mesurement of items on initil recognition tht pplies when synthetic instrument ccounting is used is removed. At ech finncil sttement dte subsequent to initil nd losses relting to long-term foreign currency denominted monetry items is the fir vlue ctegory in ccordnce with Section PS 3450 re djusted to reflect the discontinued. Until the period of settlement, exchnge gins nd losses re recognized opertions. Hedge ccounting nd the presenttion of items s synthetic instruments Currency Trnsltion: Notes to Finncil Sttements (continued) NOVA SCOTIA MUNICIPAL FINANCE CORPORATION

13 3. Lons to municipl units: Yers ended Mrch 31, 2012 nd $754,445,400; April 1, $725,883,973). At yer-end, the totl debentures due to the Province of Nov Scoti ws $729,633,526 (Mrch 31 plcements. Interest is pyble semi-nnully, except for Series AT, which is pyble nnully. The debenture debt outstnding t Mrch 31, 2012 totling $733,008,304 (Mrch 31, Province of Nov Scoti, with the exceptions of Series AT nd the FCM lons which re privte $756,510,927; April 1, $728,299,838) is in Cndin funds nd is fully gurnteed by the 4. Debentures: 2013 $ 99,226,701 $ 99,232, ,111,540 84,112, ,958,037 79,954, ,839,343 79,830, ,568,625 70,561,473 municipl units pyble Lons to Debentures of the next five yers re s follows: (b) Principl pyments receivble from municipl units nd due on debentures pyble in ech would normlly not exceed twenty yers. due in nnul instlments for periods up to mximum of twenty yers. Interest rtes on the lons rnge from 1.000% to 6.125%. Repyment terms re negotited on specific lons nd () Lons to municipl units in Nov Scoti re mde on the security of their debentures nd re Notes to Finncil Sttements (continued) NOVA SCOTIA MUNICIPAL FINANCE CORPORATION

14 4,288, NOVA SCOTIA MUNICIPAL FINANCE CORPORATION Notes to Finncil Sttements (continued) Yers ended Mrch 31, 2012 nd Debentures (continued): Mrch 31, Mrch 31, April 1, Amortized Amortized Amortized cost cost cost Mturity dte of debt of debt of debt Series Dte issued Clendr Yer Interest rte outstnding outstnding outstnding AP Jn.30/ to $ 21,575,669 $ 23,975,889 $ 26,235,026 AT* 2012 to 675, ,750 1,012,500 4,654,887 My 28/ AV June 1/ AW Nov. 9/ ,578,951 AX My29/ ,022,169 9,571,874 AY Nov. 7/ ,849,262 AZ My 15/ ,345,433 15,828,797 20,307,982 BA Nov. 7/ to ,901,074 7,792,324 10,713,425 BB Jn. 9/ to ,666,526 8,149,599 8,605,326 BC My 28/ to ,920,666 17,511,577 22,091,252 SD Oct. 15/ to ,690,090 8,484,136 10,299,487 BE June 10/ to ,118 11,929,642 14,295,501 BE Sept. 1/ to ,500,000 77,000,000 82,500,000 BG Nov. 25/ to ,642,000 12,551,000 15,458,000 BH June 1/ to ,789,000 33,001,000 37,208,000 Bl Nov. 22/ to ,757,000 34,290,000 39,061,000 BJ June 1/ to ,419,000 33,305,000 37,953,000 BK Oct.24/ to ,024,000 39,766,000 43,506,000 FCMA** Oct. 31/ to , , ,560 FCMB** Mr. 5/ to , , ,695 BL June 1/ to ,772,000 48,444,000 53,116,000 BM Oct. 17/ to ,039,000 55,489,000 62,900,000 BN Jul. 7/ to ,315, ,000 49,184,000 FCMC** Sept.30/ to , , ,110 BP Oct.24/ to ,757,000 46,699,000 51,641,000 BQ June 1/ to ,963,000 64,575,000 70,184,000 BR Oct 27/ to ,123,000 40,547,000 43,970,000 BS June 29/ to ,032,000 57,485,000 - ST Nov9! to ,529,000 61,561,000 - BU My3O/ to ,253,000 - BV Nov9/11 ECMD** Nov 15/ to ,272,728 ECME** Mr26/ to , to ,007,000 $ 733,008,304 $756,510,927 $ 728,299,838 All debt directly plced with the Province of Nov Scoti except: * Plced with privte investor ** Plced with Federtion of Cndin Municiplities 11

15 5. Employee obligtions: Yers ended Mrch 31, 2012 nd 2011 April 1, in respect of the provincil public service wrd for the employees of the Corportion. () Public Service Awrds: As t Mrch 31, 2012, the Corportion hs recorded libility in the mount of $68,917 (Mrch 31, $53,917; $38,917) (b) Employee pension pln: Totl employer contributions for 2012 were $24,029 (Mrch 31, $20,507) of the entire multi-employer pension pln is s follows: Mrch 31, Mrch31, Acturil vlue djustment (35,922,000) (86,159,000) Fir vlue of net ssets vilble for benefits 4,370,005,000 4,301,960, Supplementl csh flow informtion: () Csh nd csh equivlents include: Mrch 31, Mrch 31, April 1, $ 6,344,453 $ 6,440,526 $ 6,362, Short-term investments 6,307,000 6,403,000 6,252,784 Csh $ 37,453 $ 37,526 $ 109,851 ccrued pension obligtion $ (171,812,000) $ 61,290,000 Surplus (deficit) of net ssets vilble for benefits over Accrued pension obligtion 4,541,817,000 4,240,670,000 Acturilvlueofnetssets $ 4,405,927,000 $ 4,388,119, The dte of the lst cturil vlution of the Pln ws December 31, An extrpoltion recognized in dministrtive expenses in the finncil sttements. nd re Notes to Finncil Sttements (continued) NOVA SCOTIA MUNICIPAL FINANCE CORPORATION

16 NOVA SCOTIA MUNICIPAL FINANCE CORPORATION Notes to Finncil Sttements (continued) Yers ended Mrch 31, 2012 nd Supplementl csh flow informtion (continued): (b) Chnge in non-csh working cpitl: Mrch31, Mrch31, Accrued interest receivble $ 536,327 $ 191,788 Other receivbles (61) 10,319 Accounts pyble 14,771 (20,398) Accrued interest pyble (544,964) (199,134) $ 6,073 $ (17,425) (c) Supplementl csh flow informtion: Mrch31, Mrch31, Interest pid $ 33,685,495 $ 34,609,895 Interest received $ 33,687,960 $ 34,612, Finncil instruments: () Fir vlue Fir vlue mesurements recognized in the finncil sttements (csh nd csh equivlents) re ctegorized using the fir vlue hierrchy tht reflects the significnce of inputs used in determining the fir vlues. Level 1 - undjusted quoted prices in ctive mrkets for identicl ssets or libilities; Level 2 - inputs other thn quoted prices included in Level 1 tht re observble for the sset or libility, either directly or indirectly; nd Level 3 - inputs for ssets nd libilities tht re not bsed on observble mrket dt. Csh nd csh equivlents hve been ctegorized s Level 1 finncil instruments. 13

17 NOVA SCOTIA MUNICIPAL FINANCE CORPORATION Notes to Finncil Sttements (continued) Yers ended Mrch 31, 2012 nd Finncil instruments (continued): (b) Associted risks: Risk mngement reltes to the understnding nd ctive mngement of risks ssocited with ll res of the business nd the ssocited operting environment. The Corportion s finncil instruments re primrily exposed to interest rte voltility, credit nd liquidity risk. (i) Interest rte risk Interest rte risk is the risk tht the mrket vlue of the Corportion s investments nd debt will fluctute due to chnges in mrket interest rtes. Interest rte risk is mitigted due to the fct tht the Corportion s mndted rte of interest chrged on lons to municipl units is directly mtched to its cost of borrowing, thereby mitigting the risk of equity erosion. It is mngement s opinion tht the Corportion is not exposed to significnt interest rte risk rising from finncil instruments. (ii) Credit risk Credit risk is the risk tht n issuer or counterprty will be unble or unwilling to meet commitment tht it hs entered into with the Corportion. Due to the existing sttutory provision for the recovery of ny defults by municipl units, n llownce for doubtful ccounts is not required. Due to the fct tht ll lons to municipl units re gurnteed by the Province of Nov Scoti, it is mngement s opinion tht the Corportion is not exposed to significnt credit risk rising from finncil instruments. During the yer nd t yerend, there re no lons to municipl units which re pst due or considered impired. 14

18 NOVA SCOTIA MUNICIPAL FINANCE CORPORATION Notes to Finncil Sttements (continued) Yers ended Mrch 31, 2012 nd Finncil instruments (continued): (iii) Liquidity risk: Liquidity risk is the risk tht n entity will encounter difficulty in meeting obligtions ssocited with finncil libilities. Liquidity requirements re mnged through the receipt of pyments on the lons to municipl units nd short-term investments nd interest erned on the lons to municipl units nd short-term investments. These sources of funds re used to stisfy debt service requirements on the debentures nd short-term lons nd to py expenses. In the norml course of business, the Corportion enters into contrcts tht give rise to commitments for future pyments which my lso impct the Corportion s liquidity. The Corportion lso mintins csh on hnd for liquidity purposes nd to py ccounts pyble nd ccrued libilities. It is mngement s opinion tht the Corportion is not exposed to significnt liquidity risk rising from finncil instruments. The following tble summrizes the contrctul mturities for ll finncil libilities s t Mrch 31, Mrch31, Mrch31, Aprill, Within 2to5 6tolO Over yer yers yers yers totl totl totl Accounts pyble Accrued $ 65,220 $ - $ $ $ 65,220 $ 50,449 $ 70,847 interest pyble 10,189,073 10,189,073 10,734,037 10,933,171 Employee obligtions 68,917 68,917 53,917 38,917 Debentures 99,232, ,458, ,390,238 67,926, ,008, ,510, ,299,838 $109,556,020 $314,458,741 $251,390,238 $ 67,926,515 $743,331,514 $767,349,330 $739,342,773 15

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