HIGH ARCTIC RELOCATEE TRUST

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1 Financial Statements of HIGH ARCTIC RELOCATEE TRUST Year ended December 31, 2013

KPMG LLP Telephone (514) 840-2100 600 de Maisonneuve Blvd. West Fax (514) 840-2187 Suite 1500 Internet www.kpmg.

2 KPMG LLP Telephone (514) de Maisonneuve Blvd. West Fax (514) Suite 1500 Internet Tour KPMG Montréal (Québec) H3A 0A3 INDEPENDENT AUDITORS' REPORT To the Trustees of High Arctic Relocatee Trust We have audited the accompanying financial statements of High Arctic Relocatee Trust, which comprise the balance sheet as at December 31, 2013, the statements of operations and distributions and cash flows for the year then ended, and notes, comprising a summary 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 accordance with Canadian accounting standards for not-for-profit organizations, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on our judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the entity s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by 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 audit opinion. KPMG LLP is a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. KPMG Canada provides services to KPMG LLP.

3 Page 2 Opinion In our opinion, the financial statements present fairly, in all material respects, the financial position of High Arctic Relocatee Trust as at December 31, 2013, and its results of operations and its cash flows for the year then ended, in accordance with Canadian accounting standards for not-for-profit organizations. May 1, 2014 Montréal, Canada *CPA auditor, CA, public accountancy permit No. A124506

4 Financial Statements Year ended December 31, 2013 Financial Statements Balance Sheet... 1 Statement of Operations and Distributions... 2 Statement of Cash Flows... 3 Notes to Financial Statements... 4

5 Balance Sheet December 31, 2013, with comparative information for Assets Cash $ 25,645 $ Amounts receivable 47,407 49,616 GIC bearing an annual interest rate of 1.25% and maturing April 3, 2014 ( interest rate of 1.30% and maturing April 3, 2013) 4,963,700 5,000,000 $ 5,036,752 $ 5,049,616 Liabilities Bank indebtedness $ $ 8,051 Accounts payable and accrued liabilities 1, ,111 8,899 Net Assets Restricted capital (note 2) 5,200,012 5,200,012 Cumulative distributions in excess of revenue (164,371) (159,295) 5,035,641 5,040,717 $ 5,036,752 $ 5,049,616 See accompanying notes to financial statements. On behalf of the Trustees: Trustee Trustee 1

6 Statement of Operations and Distributions Year ended December 31, 2013, with comparative information for Revenue $ 63,024 $ 64,544 Expenses: Management fees 24,145 27,594 Salaries and benefits 16,659 16,658 General and administrative 14,513 14,839 Insurance 10,737 10,764 Travel and accommodations 2,046 1,543 68,100 71,398 Excess of expenses over revenue (5,076) (6,854) Cumulative distributions in excess of revenue, beginning of year (159,295) (152,441) Cumulative distributions in excess of revenue, end of year $ (164,371) $ (159,295) See accompanying notes to financial statements. 2

7 Statement of Cash Flows Year ended December 31, 2013, with comparative information for Cash flows (used in) from operating activities: Excess of expenses over revenue $ (5,076) $ (6,854) Changes in non-cash balance sheet items related to operations: Amounts receivable 2,209 (48,616) Accounts payable and accrued liabilities (2,604) (54,622) Cash flows (used in) from investing and financing activities: Purchase of GIC (4,963,700) (5,000,000) Redemption of GIC 5,000,000 5,000,000 36,300 Net increase (decrease) in cash 33,696 (54,622) (Bank indebtedness) cash, beginning of year (8,051) 46,571 Cash (bank indebtedness), end of year $ 25,645 $ (8,051) See accompanying notes to financial statements. 3

8 Notes to Financial Statements Year ended December 31, 2013 The High Arctic Relocatee Trust (the "Trust") is a private, not-for-profit trust created in 1996 under the Laws of Québec. In March 1996, a settlement agreement was signed between Her Majesty the Queen in the right of Canada, represented by the Minister of Indian Affairs and Northern Development (the "Government of Canada"), and Makivik Corporation ("Makivik"), acting on behalf of High Arctic Relocatees, being Inuit who were relocated from Inukjuak, Québec, and Pond Inlet, NWT, to Grise Fiord on Ellesmere Island and Resolute Bay on Cornwallis Island, by the Government of Canada, in the 1950's. Under the terms of the agreement, the Government of Canada made a tax free capital transfer to the Trust, to be used in conformity with the terms of the Trust Deed. The Trust was established to receive, hold and administer the capital transfer from the Government of Canada, including distribution to the Trust beneficiaries. Under the terms of the Trust, the property of the Trust is appropriated for educational, social, cultural and socioeconomic needs of High Arctic Relocatees and High Arctic Descendants, and generally to improve their social, cultural, educational and economic conditions, their quality of life, both individually and collectively, including, without limitation, communal visits, and traveling and relocation commemorative activities. There are three classes (including subclasses) of Trust beneficiaries: Class 1 Class 2 Class 3 High Arctic Relocatees High Arctic Descendants (of High Arctic Relocatees) Inuit not-for-profit corporation(s), with powers to provide cultural, social and educational benefits The excess of revenue over expenses is distributed annually to the Trust beneficiaries based on the exclusive and discretionary authority of the Trustees acting within the parameters of the Trust Deed. The Trust is to be wound up no later than 2032 and, at this time, remaining net assets are to be distributed to surviving High Arctic Relocatees and then surviving Descendants. 1. Significant accounting policies: (a) Basis of presentation: The Trust s financial statements are prepared in accordance with Canadian accounting standards for not-for-profit organizations in Part III of the CPA Canada Handbook. (b) Use of estimates: The preparation of financial statements requires management to make estimates that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting year. Actual results could differ from those estimates. 4

9 Notes to Financial Statements, Continued Year ended December 31, Significant accounting policies (continued): (c) Revenue: Revenue comprises interest on cash deposits and a guaranteed investment certificate ("GIC"). All earned revenues are recorded using the accrual basis of accounting. 2. Restricted capital: Restricted capital is the remaining balance of a $10 million capital transfer from the Government of Canada and a nominal gift from the settlor of the Trust in Of this total amount, $1 million was distributed in each of the years 1996 and 1997 to High Arctic Relocatees or survivors. On August 23, 2010, the Superior Court of Québec granted the application sought by the Trustees on behalf of the Trust to amend the Trust Deed as follows: (a) The Trustees may at their discretion distribute up to $3 million of the remaining $8 million in restricted capital at any time prior to the Winding up Date of the Trust solely for distribution to the High Arctic Relocatees. (b) The remaining restricted capital may also be used by the Trustees to defray any annual expenses (as defined in the Trust Deed) of the Trust in the event that Trust revenues in any particular year are inadequate to meet said annual expenses. In 2010, the Trustees authorized the disbursement of capital distributions of $1,400,000 in 2010 and 2011 to the Class 1 High Arctic Relocatees. Under the terms of the Trust Deed, the remaining restricted capital is to be distributed upon final wind-up of the Trust as contemplated in the Trust deeds. 3. Financial instruments: Financial instruments are essentially contractual rights and obligations to directly or indirectly receive or pay cash, and include derivative instruments. The fair value of financial instruments not otherwise disclosed in the financial statements approximates their carrying values due to the expected short-term settlement of these financial instruments and, in the case of the GIC investment, due to the rate of interest earned approximating prevailing market rates for similar investments at year-end. 4. Transactions with Makivik Corporation: Management fees are charged by Makivik for reimbursement of administrative and accounting services. Accounts payable and accrued liabilities as at December 31, 2013 and 2012 did not include any amounts due to Makivik for unpaid management fees and other expenses paid on behalf of the Trust. 5

THE LONDON PUBLIC LIBRARY BOARD TRUST FUNDS

Financial Statements of THE LONDON PUBLIC LIBRARY BOARD TRUST FUNDS Year ended December 31, 2016 KPMG LLP 140 Fullarton Street Suite 1400 London ON N6A 5P2 Canada Tel 519 672-4800 Fax 519 672-5684 INDEPENDENT