annual report. Preserving a ribbon of wilderness, for everyone, forever.

Transcription

1 annual report Preserving a ribbon of wilderness, for everyone, forever.

2 t H e B r u c e t r a i l c o n s e r v a n c y MISSION Preserving a ribbon of wilderness, for everyone, forever. VISION The Bruce Trail secured within a permanently protected natural corridor along the Niagara Escarpment. 2 The programs and activities profiled in this report are supported by the Bruce Trail Conservancy s Board of Directors, Committees and Clubs.

3 Photo: Karen Wilkinson Springle Nature Reserve, Toronto section 3

4 HiGHliGHts 66% Secured 66% of the Bruce trail s optimum route is now permanently secured 1,400 Volunteers 1,400 volunteers are doing the equivalent of 85 full time jobs, worth $3.5 million in donated labour 5 km of Trail off roads about 5 km of trail will be rerouted off roads and onto protected natural land thanks to new land acquisitions this year $5.3 Million Revenue total revenue exceeded $5 million for the second year in a row, including $4.3 million contributed by nearly 4,000 donors 8 New Nature Reserves 357 acres of niagara escarpment land were acquired and preserved within 8 new Bruce trail conservancy nature reserves, securing 4.6 km of the Bruce trail s optimum route $2 Million Pledge the largest ever single pledge in the Bruce trail conservancy s history was made by the Patrick J. Mcnally charitable Foundation: $2 million, which could reach $3 million if certain targets are met 10,374 Memberships Membership grew 7% over the year to a new high of 10,374 memberships in support of our mission 2025 Strategy the Bruce trail conservancy developed and launched our bold new strategic plan, charting the path ahead and positioning the organization for further success 4 Bruce Trail in Balls Falls Conservation Area, Niagara section Photo: Daniel K. Wilson

5 BOARD CHAIR S MESSAGE CHIEF EXECUTIVE OFFICER S MESSAGE As a collective, the Bruce Trail Conservancy s donors, volunteers, members, Board and staff have accomplished great strides toward our mission this past year. I was privileged to work very closely with the entire Board and staff to see the new strategic plan approved. The 2025 Strategy not only sets bold goals that will make true advancements in our land acquisition and fundraising work, but it also reflects our growing relevance as one of Ontario s leading land trusts. The 2025 Strategy and its early outcomes have resonated with donors and volunteers alike. This past fiscal year marks the second year the Bruce Trail Conservancy s revenues exceeded $5 million. Importantly, the 2025 Strategy s focus on land acquisition has been well activated, with fiscal year 2019 opening with eight properties already on the roster for acquisition including our support for the acquisition of 3,272 acres at Driftwood Cove. Our donors are propelling our work forward in a meaningful way, not only to ensure success in this fiscal year but also to build success in future years through long-term pledges to support land acquisition efforts. We have already received meaningful financial commitments for the future from you to accelerate the pace at which we achieve our vision we are well on our way. And we are working hard to generate the remaining financial resources to acquire the last one third of the corridor. Your support is very much appreciated and valued we commit to putting your pledges to good use. I hope you enjoy reviewing this Annual Report and that you find yourself reflected in the year s positive accomplishments. Warren Bell BOARD CHAIR This year we lived and breathed our new mission statement: Preserving a ribbon of wilderness, for everyone, forever. Our protected ribbon of wilderness along the Niagara Escarpment grew by 357 acres and 4.6 km of the Bruce Trail s Optimum Route was permanently secured. Our donors rose to the challenge and contributed $4.3 million in cash, securities and bequests, the greatest support of its kind in our history. We are grateful for land donations in the Niagara and Sydenham sections, which have enriched the conservation values of our corridor and once again shown us the great trust that landowners have in our care for the Escarpment. Membership rose to an all-time high of 10,374, and the number of people participating in our Club hikes and on-trail events is steadily increasing, meaning that the positive benefits of the Bruce Trail are reaching more and more people each year. Our volunteers the lifeblood of the Bruce Trail Conservancy continued to keep our world-class trail in top shape for the hundreds of thousands who visit each year. The work of the Bruce Trail Conservancy in land preservation and creating links between people and nature is visionary and enduring. People have demonstrated their passion and commitment to the Bruce Trail and the work of the Bruce Trail Conservancy time and time again. I spent time this past year with donors, members, volunteers and hikers from Niagara to Tobermory, and the commitment to the importance of the Bruce Trail was universal. This year more than ever we have seen how the Bruce Trail impacts people s lives, and it s because of that impact that so many have committed their time, talent and funding to ensure the future of the Bruce Trail and a preserved ribbon of wilderness. Thank you to all of our members, donors, volunteers and other supporters who made this year a success, and who committed to future success. We are empowered by your energy and commitment to ensuring that our work endures, forever. Red Oak Nature Reserve We should all have the opportunity to walk under ancient trees on a forest floor that is rich with the things that sustain life. Ray Lowes, Bruce Trail founder, in a speech at the Niagara Escarpment Conference, 1968 Photo: Brian Popelier Beth Gilhespy CHIEF EXECUTIVE OFFICER 5

6 S T R A T E G Y - B u i l d i n g M o m e n t u m Our mission of preserving a ribbon of wilderness, for everyone, forever is guiding our efforts today and our plans for tomorrow. We understand that to ensure this generation and those that follow are afforded all the benefits of a connected and healthy conservation corridor, we need to commit to bold goals today. Much of our fiscal year 2018 (July 2017 June 2018) focused around the Bruce Trail Conservancy s ambitious and inspiring new strategic plan. The 2025 Strategy, approved by the Board of Directors in December 2017, outlines our newly articulated mission, vision and values, and focuses on five core strategic priorities which will guide the Bruce Trail Conservancy s work to Over the past 50 years the Bruce Trail and the work of the Bruce Trail Conservancy has brought about expansive and lasting benefits for the people of Ontario. We are emboldened by our past accomplishments and are committed to achieving even greater results for the generations that follow. Photo: Brian Popelier Speyside Sanctuary Nature Reserve, Toronto section Our mission is the clear articulation of what we are setting out to do. Our 2025 Strategy gives us the direction and plan to achieve significant results in support of that mission. For the Bruce Trail Conservancy Board and staff, strategy is not an abstract set of concepts but is tangibly driving our work forward. We are committed to transparency in our process. We are working in concert with the Bruce Trail Clubs, volunteers, landowners and stakeholders to realize our goals. Positioned for success The clear priorities we identified during fiscal 2018, paired with our expertise, will allow us to realize bold steps in protecting the Niagara Escarpment and preserving our ribbon of wilderness. The Bruce Trail Conservancy made great strides in 2018 and launches fiscal year 2019 positioned to make further progress in each of our five strategic priority areas. 6

7 S t r a t e g i c P r i o r i t i e s STRATEGIC PRIORITY 1 Photo: Lynn Reket Accelerate Land Acquisition We will identify and implement innovative tools and techniques to accelerate our land preservation program and support our growing land stewardship responsibilities. STRATEGIC PRIORITY 2 Expand Fundraising We will secure financial resources necessary to fund our activities now and for the long term. STRATEGIC PRIORITY 3 Build Brand Awareness We will promote a strong brand that will be readily identified with our unique balance of conservation and recreation. Photo: Ethan Meleg Photo: Margaret Yarasavitch STRATEGIC PRIORITY 4 Increase Impact of Membership We will encourage and leverage membership and other sources of support, to increase our impact and effectiveness. STRATEGIC PRIORITY 5 Enhance Stakeholder Relationships We will develop high quality relationships with all stakeholders to increase the Bruce Trail Conservancy s effectiveness. Photo: James Gibson Photo: Man Khun Chan 7

8 L A N D A C Q U I S I T I O N A N D P R O T E C T I O N Thanks to the ongoing support of our donors and landowners, the Bruce Trail Conservancy s vision of securing the Bruce Trail within a permanently protected natural corridor along the Niagara Escarpment is being realized. This past year 357 acres of land were preserved in 8 new Nature Reserves, securing 4.6 km of the Bruce Trail s Optimum Route. Many of our land acquisitions this year fostered connectivity of natural, protected spaces by preserving land adjacent to or in between areas that are already preserved. Although each of our new Nature Reserves may not appear sizeable at first blush, they play an important a role in expanding the area of conserved land on the Niagara Escarpment and creating linkages of habitat and of the Bruce Trail. Our ribbon of wilderness will be more robust, more ecologically sound, and offer a better hiking experience with this critical work to enhance connectivity, and fill the gaps in the Bruce Trail s Conservation Corridor. Big Bay Nature Reserve, Sydenham Photo: Brian Popelier St. Paul Nature Reserve, Niagara 8 Photo: Brian Popelier

9 Vandeleur Nature Reserve, Beaver Valley Photo: Brian Popelier L A N D A C Q U I S I T I O N S nature reserve section size secured optimum route FundinG Big Bay nature reserve Sydenham 24 acres (10 ha) 475 m Funded by Bruce Trail Conservancy Donors Kemble Wetland nature reserve (3 Parcels & 1 easement) Sydenham 141 acres (57 ha) 1,996 m Funded by Bruce Trail Conservancy Donors overton nature reserve Sydenham 12.5 acres (5.0 ha) - Generously donated by the landowner vandeleur nature reserve Beaver Valley 46 acres (19 ha) 485 m Funded by Bruce Trail Conservancy Donors Quarryside nature reserve Caledon Hills 34 acres (14 ha) 279 m Funded by Bruce Trail Conservancy Donors Maple ridge nature reserve Toronto 70 acres (28 ha) 557 m Funded by Bruce Trail Conservancy Donors red oak nature reserve (4 Parcels) Iroquoia 19 acres (8 ha) 547 m Funded by Bruce Trail Conservancy Donors (1 Parcel) & generously donated by Hamilton Conservation Authority (3 Parcels) st. Paul nature reserve (4 Parcels) Niagara 10 acres (4 ha) 247 m Generously donated by the Town of Niagara-on-the-Lake and Region of Niagara TOTAL 8 Nature Reserves (14 Parcels & 1 Easement) 357 acres (144 ha) 4,586 m 9

10 L A N D A C Q U I S I T I O N A N D P R O T E C T I O N Red Oak Nature Reserve, Iroquoia Photo: Brian Popelier Overton Nature Reserve, Sydenham Photo: Brian Popelier Maple Ridge Nature Reserve, Toronto 10 Photo: Brian Popelier

11 Kemble Wetland Nature Reserve, Sydenham Photo: Brian Popelier Quarryside Nature Reserve, Caledon Hills Photo: Brian Popelier 11

12 L A N D S T E W A R D S H I P As our ribbon of wilderness grows so does our role as stewards of the land. With the 357 acres acquired this year, there are now 10,617 acres of Niagara Escarpment land entrusted to the care of the Bruce Trail Conservancy. Our team of over 200 volunteers and two staff ecologists work year-round to ensure the longterm ecological health of these precious lands while also providing Bruce Trail access to the Niagara Escarpment. Planning, monitoring and active management are all part of our work to ensure our ribbon of wilderness is preserved, for everyone, forever. Several important land stewardship projects were carried out this year, including: Monitoring species at risk Performed surveys of bats and of Loggerhead Shrikes on 3 Bruce Trail Conservancy properties in partnership with the Ontario Land Trust Alliance Collected twig samples from several Butternut trees in the Caledon area to contribute to the ongoing efforts of the Forest Gene Conservation Association to save the species by producing trees that are resistant to the Butternut canker Added 41 observations of 13 different species to our Species at Risk database Managing invasive species Installed 6 boot brush stations on several properties on the Peninsula to control the spread of invasive plants Actively managed 7 invasive plant species by manual or chemical means Removed thousands of Buckthorn from properties in the Iroquoia, Toronto and Beaver Valley sections Photo: Bruce Trail Conservancy Protecting & restoring ecosystems Installed interpretive signage, rope barriers and a viewing platform to ensure the protection of the sensitive cave ecosystem at Williams Caves (Lion s Head) Planted hundreds of trees and wildflowers in the Toronto, Dufferin Hi-Land, Blue Mountains and Peninsula sections Engaged groups of corporate volunteers from companies like Home Trust, Rogers and Yanfeng Automotive Interiors to remove invasive species, and plant native trees and wildflowers Photo: Bruce Trail Conservancy 12

13 Photo: Sandra Green Photo: Credit Valley Conservation Volunteer Land Stewards installing boundary markers. Planting trees on Springle Nature Reserve 13

14 THE BRUCE TRAIL CONSERVANCY S P E C I E S ,437 observations of these 74 Species at Risk have been recorded on Bruce Trail Conservancy managed land 1. American Chestnut 2. Amethyst Aster 3. Bald Eagle 4. Barn Swallow 5. Beaked Spikerush 6. Blunt-lobed Grapefern 7. Bobolink 8. Burning Bush 9. Butternut 10. Canada Warbler 11. Carex schweinitzii 12. Caspian Tern 13. Cerulean Warbler 14. Chimney Swift 15. Common Hoptree 16. Common Nighthawk 17. Cooper s Milk Vetch 18. Dwarf Lake Iris 19. Eastern Flowering Dogwood 20. Eastern Ribbonsnake 21. Eastern Small-footed Bat 22. Eastern Wood Pewee 23. Giant Swallowtail 24. Ginseng 25. Golden-winged Warbler 26. Grasshopper Sparrow 27. Great Egret 28. Green Violet 29. Hart s-tongue Fern 30. Honey Locust 31. Hybrid Baneberry 32. Jefferson Salamander 33. Large Toothwort 34. Laurentian Fragile Fern 35. Least Bittern 36. Little Brown Myotis

15 A T R I S K 37. Many-fruited False Loosestrife 38. Midland Painted Turtle 39. Louisiana Waterthrush 40. Massasauga Rattlesnake 41. Milksnake 42. Monarch 43. Narrow-leaved Wild Leek 44. Northern Pin Oak 45. Olive-sided Flycatcher 46. Ontario Goldenrod 47. Painted Skimmer 48. Peregrine Falcon 49. Perfoiliate Tinkersweed 50. Prairie Dropseed 51. Prairie Sundrops 52. Provancher s Fleabane 53. Purple-stemmed Cliff-brake 54. Red-headed Woodpecker 55. Red Mulberry 56. Redbud 57. Redhead 58. Round leaved Ragwort 59. Rue Anenome 60. Rusty Blackbird 61. Schreber s Aster 62. Shrubby St John s-wort 63. Snapping Turtle 64. Trumpet Creeper 65. Upright Carrion Flower 66. Wall Rue 67. West Virginia White 68. Western Chorus Frog 69. Whip-poor-will 70. White Wood Aster 71. Wingstem 72. Wood Thrush 73. Thamnobryum alleghaniense (moss; not pictured) 74. Tortula porteri (moss; not pictured)

16 T R A I L D E V E L O P M E N T & M A I N T E N A N C E The Bruce Trail connects thousands of people to the wonders of the Niagara Escarpment every year. Keeping our treasured footpath open, safe, environmentally compatible and enjoyable for hikers takes the year-round efforts of hundreds of volunteers in each of the nine Bruce Trail Clubs. Maintaining our Footpath Nature provides marvels for us to explore but also creates significant challenges to trail maintenance. In the spring of 2018, we experienced two severe wind storms and a late April ice/snow storm over a one month period. Numerous trees were brought down along the entire length of the Trail. As always, our dedicated volunteers responded quickly to make the Trail passable again. improving the trail route The increased pace of our land acquisition efforts led to trail reroutes in several Bruce Trail Club sections this year: The acquisition of Dunedin Ravine Nature Reserve in 2017 enabled the Blue Mountains Club to move the Trail onto a beautiful new route and eliminate 600 m of road walking. In Beaver Valley the acquisition of the Daphne and Gordon Nicholls Nature Reserve made it possible to open 910 m of new trail on the Optimum Route. Land purchases in the Toronto section led to two significant reroutes: the 650 m Ridge Side Trail on Maple Ridge Nature Reserve near Limehouse, and 5.8 km of new main trail on Lan Kwan Sum Nature Reserve and adjacent Optimum Route east of Terra Cotta. In Sydenham, the Sydenham Nature Reserve near Rockford now has an attractive new loop side trail connecting with the Keeling Side Trail. While land securement is an essential component of our strategy to complete our Trail on the Optimum Route, there is still an important place for traditional handshake agreements with private owners. One such agreement led to a 1.6 km reroute in Sydenham, just to the northeast of our Kemble Rock Nature Reserve. This removed our main Trail from a very muddy section of Coles Side Road. reviewing the optimum route The Bruce Trail s Optimum Route is the most desirable location for the Trail, and our goal is to permanently secure that route within a protected natural corridor. This year a comprehensive review of the Optimum Route was begun jointly by the Bruce Trail Conservancy s Trail Development and Maintenance, Land Securement, and Landowner Relations Committees, to ensure that the Optimum Route is up-to-date and achievable, and that it takes into account all practical opportunities for our ribbon of wilderness. The review is bearing fruit, as the Niagara Club was able to make two trail improvements identified by the review: one at Woodend Conservation Area and another in Short Hills Provincial Park. Both changes resulted in a more attractive trail with less road walking. The Optimum Route review has been carried out with 6 Bruce Trail Clubs so far; the remaining 3 Clubs will be reviewed over the next year. Quantifying trail use Bruce Trail Conservancy staff and volunteers installed nine additional trail counter devices on the Trail this year as part of an ongoing effort to determine trail use at specific locations. The data collected over time will broaden our understanding of trail use and can contribute to decisions about maintaining, promoting and protecting areas of the Bruce Trail. 16

17 CONSERVATION CORRIDOR FACTS amount of escarpment 144 hectares 442 hectares 117 hectares 103 hectares land secured (357 acres) (1,102 acres) (290 acres) (255 acres) total acres of escarpment land 4,297 hectares 4,197 hectares 3,673 hectares 3,556 hectares managed by Bruce trail (10,617 acres) (10,370 acres) (9,077 acres) (8,787 acres) conservancy (286 parcels) total optimum route secured 4.6 km 8.9 km 3.3 km 3.3 km length of optimum route 882 km 878 km 877 km 876 km secured optimum route on 489 km 466 km 453 km 451 km Bruce trail conservancy and public land essential optimum route 95 km 99 km 101 km not calculated on road segments Percentage of trail secure 66.2% 64.3% 63.1% 51.5% Trail maintenance volunteers on Canada Goose Side Trail Photo: Rose Mary Mitter 17

18 V O L U N T E E R S Volunteers contributed the equivalent of 85 full-time positions to the Bruce Trail Conservancy this year, valued at $3.5 million in donated labour. Without this remarkable commitment to our mission, we would not have the Bruce Trail as we know it today. Volunteers are actively involved not only in trail work, but also in landowner relations, land securement, land stewardship, outreach, archives, finance, policy work, special events and just about every aspect of the work of the Bruce Trail Conservancy. This year in addition to these regular roles, our volunteers had opportunities to learn and share their skills through special projects and programs: Bringing volunteers together across 9 clubs Several unique gatherings were organized this year to foster the sharing of information and ideas across all nine Clubs of the Bruce Trail Conservancy: Working Together Conference: 90 volunteers participated in this bi-annual conference to learn and share successes and challenges in their roles. Hike Director Meetings: Club hike directors initiated joint meetings to strategically improve the hike program across all Clubs Landowner Relations Workshop: Landowner relations volunteers from all 9 Clubs joined volunteers from other trail organizations at this workshop co-hosted by the Bruce Trail Conservancy and Hike Ontario Land & Trail Securement Workshop: The Bruce Trail Conservancy and the Oak Ridges Moraine Land Trust hosted a free, full-day workshop for volunteers and staff in the land trust community engaging in citizen science The Bruce Trail Conservancy launched a new citizen science program in April 2018 to involve volunteers in gathering important data about plant diversity along the Bruce Trail. Thirty-eight volunteers quickly took up the call and by the end of the fiscal year had already recorded and mapped over 2,500 observations, representing 580 species. This ongoing program is giving the Bruce Trail Conservancy a growing understanding of the diversity and distribution of plant life along the Trail, and is creating new opportunities for volunteers to support the Bruce Trail Conservancy s mission. sharing our skills Worldwide Bruce Trail Conservancy volunteers are sharing skills and knowledge with international trail organizations though the Bruce Trail Conservancy s lead role in the World Trails Network and its Friendship Trail Program. For example, in 2018 volunteers from multiple Bruce Trail Clubs participated in two volunteer work trips to build and improve trail on the Sendero Pacifico in Costa Rica and three more are planned for the coming year. Bruce Trail Conservancy volunteers sharing skills on the Sendero Pacifico, Costa Rica 18 Photo: Nat Scrimshaw

19 Building a bridge at Rocklyn Creek, Sydenham section Photo: Ron Savage 19

20 M E M B E R S Our community of members grew for the fifth consecutive year, reaching an all-time high of 10,374 memberships at year s end. The enduring support and passion of our members is enabling the Bruce Trail Conservancy to take bold strides to realize our mission. Members at Mount Nemo lookout MEMBERSHIP BY CLUB (AS OF JUNE 2018) niagara 835 iroquoia 2,507 toronto 3,082 caledon Hills 974 dufferin Hi-land 423 Blue Mountains 653 Beaver valley 589 sydenham 527 Peninsula 730 no club affiliation 54 TOTAL 10,374 attracting and retaining Members Membership grew by 7% over the year the largest annual growth in recent history. Efforts by Bruce Trail Clubs and the Bruce Trail Conservancy to both attract and retain members have been key to this growth. In 2018 we welcomed 2,155 new members. Many of these joined at outreach events including Bruce Trail Day which this year saw a record 142 members joining on the spot. Improvements in our administrative systems and personal outreach by Club volunteers helped our members stay informed and connected, contributing to a membership renewal rate of 85%. reaching a 10,000 Membership Milestone While we report on overall membership numbers, every membership makes a difference to the future of the Bruce Trail. Each membership strengthens the Bruce Trail Conservancy s capacity to do its important work as the steward of Canada s oldest and longest marked footpath and one of Ontario s largest land trusts. Every time someone chooses to join or renew their membership, we are stronger for it. Yet surpassing the number 10,000 gives us an opportunity to celebrate. It reminds us that we are a strong and vibrant community that people not only choose to join, but also choose to continue supporting. This new milestone represents over 10,000 voices championing conservation, trails and the Niagara Escarpment in southern Ontario. We value the long term commitment to, and trust in, our organization shown by our members, and will continue to work to improve the membership experience. TOTAL NUMBER OF MEMBERSHIPS 8,671 8,996 9,358 9,698 10,374 Photo: Glynn Richardson June 2014 June 2015 June 2016 June 2017 June

21 L A N D O W N E R S The Bruce Trail and its side trails pass through 691 privately-owned properties, thanks to handshake agreements with generous landowners. With 34% of the Bruce Trail s length unsecured, each landowner plays an important role in the ensuring the Bruce Trail is continuous, off roads and available for people to explore. Bruce Trail through Dufferin Hi-Land section As landowners come to know our organization and our mission, many are inspired to donate or sell their land to the Bruce Trail Conservancy. Of the 84 properties secured over the past seven years, 68 have been the direct result of landowner relations. With the many options available to landowners with respect to donating or selling land, Bruce Trail Conservancy staff and landowner relations volunteers have been able to work with landowners to find a solution that benefits the landowner while creating a conservation legacy as part of our ribbon of wilderness. Our thanks to the landowners who allow passage across their land, and to the landowner relations volunteers who foster and maintain these excellent relationships. Photo: Glynn Richardson Bull Homestead Photo: Brian Popelier 21

22 D O N O R S Our donors believe in our mission and continue to be crucial to its success. Generous gifts from nearly 4,000 donors, granting agencies and sponsors allowed the Bruce Trail Conservancy to bring more land under our care and have the funds in place to support significant land acquisitions already in place for next year. donations reach unprecedented high Donors contributed $4.3 million in donations of cash, securities and bequests in support of our mission the greatest support of this kind in our organization s history. Individuals who donate cash and securities, and leave bequests, continue to be the foundation of the Bruce Trail Conservancy s success, providing 72% of our fundraising revenue for the year. $2 Million Pledge The largest ever single pledge to the Bruce Trail Conservancy was made in fiscal year 2018 by the Patrick J. McNally Charitable Foundation. Over the next 10 years these funds, which could increase to three million dollars if certain targets are met, will be directed to the acquisition of land along the Bruce Trail s Conservation Corridor. anonymous donors This year several generous donors made major gifts and chose to remain anonymous. Their impact is substantial, with over $1.7 million jointly contributed in support of the Bruce Trail Conservancy s mission. Photo: Brian Popelier SOURCES OF FUNDRAISING REVENUE 3% Land Donations 3% Clubs 0.4% Government 6% Bequests Photo: Matteo Biddulph 9% Corporations 13% Foundations 66% Individuals 22 The 4th Annual Bruce Trail Hike-a-thon saw 52 hikers reach out to their family and friends in support of the Bruce Trail Conservancy. Thanks to their efforts, and matching funds from KEEN Canada, $41,000 was raised, a new record for this annual event.

23 Hundreds of donors enjoyed touring Maple Ridge & Kemble Wetland Nature Reserves this spring and seeing the impact of their donations first-hand. CATEGORY OF SUPPORT donations (Indivduals, Corporations and Foundations) land acquisition and conservation (Cash, Securities, $ 4,329,164 $ 3,628,859 $ 2,398,811 $ 2,012,138 Insurance Policy Premiums and Bequests) land acquisition (Land Donations) 120, , ,000 30,800 subtotal donations $ 4,449,997 $ 4,493,259 $ 2,706,811 $ 2,042,938 Grants (Federal, Provincial and Municipal Governments) land acquisition 171, ,047 land conservation 18,450 51,014 7,420 subtotal Grants $ 18,450 $ 222,014 $ 117,047 $ 7,420 sponsorships 59,500 18,450 28,951 39,950 total donations, Grants and sponsorships $ 4,527,947 $ 4,733,723 $ 2,852,809 $ 2,090,308 Photo: Brian Popelier a selection of our supporters: corporations Alternative Land Use Services (ALUS) ArcelorMittal Dofasco Inc BAASS Business Solutions Inc Bell Canada - Employee Giving Program Bloom Depot Inc Blue Bay Motel Ltd Bruce Power L.P. Burgundy Asset Management Ltd Canadian Mist Distillers Limited Canadian Vigour Centre Clark Westcott Professional Corporation CN - Corporate Services Coffee Tree Roastery Council for Clean and Reliable Electricity Deloitte Management Services LP DUCA Credit Union - DUgood Community Fund Eastern Power Limited Ernst & Young LLP The Exchange Brewery Inc Frechette Lawncare GHD Limited Hamilton Conservation Authority Hydro One Employees & Pensioners' Charity Trust Johnson & Johnson Inc KEEN Canada Outdoors Inc Ketchum Canada Inc Korax Inc KPMG LGL Limited Masters Photography MEC Moore, McDermott & Partners LLP The North Face Endurance Challenge Series Ontario Land Trust Alliance Inc. Ontario Power Generation Inc Owen Sound & District Market Vendors PearTree Financial Rogers Communications Inc S.S. Papadopulos & Associates Inc. SC Johnson & Son Ltd Scenic Caves Nature Adventures Scotiabank - Reporting Corporate Functions GBM Smith's Funeral Homes Southmedic Inc Stoneridge Insurance Brokers Sun Life Financial Milton Sun Life Financial TD Bank Group Union Gas, A Spectra Energy Company - Matching Gifts Program Wingbury Holdings Inc World Expeditions Yanfeng Global Automotive Interiors The Yogashala Inc Foundations J.P. Bickell Foundation Bradstreet Family Foundation The Carter Family Foundation Chimp Foundation Robert Fraser Cooper Endowment Fund Echo Foundation The J. Forbes Knight Charitable Foundation The Gosling Foundation Griggs Family Foundation at the Toronto Community Foundation Heather & Ross Hamlin Fund The Joan & Clifford Hatch Foundation Intact Foundation Jackman Foundation The Norman & Margaret Jewison Charitable Foundation Kinsman/Kanyar Family Foundation Langar Foundation Patrick J McNally Charitable Foundation Milne Family Foundation Fund Mobile Giving Foundation Canada Nicol Family Foundation PayPal Charitable Giving Fund Otto & Marie Pick Charitable Foundation RBC Foundation The Rogan Foundation TAKLA Foundation And thanks to the Bruce Trail Clubs for their ongoing support 23

24 F I N A N C I A L S Total revenue to the Bruce Trail Conservancy, including donations, grants, sponsorships, memberships and product sales, exceeded $5 million for the second year in a row ($5.3 million in Fiscal 2018 [F2018]; $5.4 million in Fiscal 2017 [F2017]). Donations of cash increased to $4,329,164 in F2018 from $3,799,859 in F2017, allowing the Bruce Trail Conservancy to preserve 357 acres of land on the Niagara Escarpment, and have the funds in place at year end to support the significant acquisitions under contract in F2019. land acquisition Consistent with our mission of preserving a ribbon of wilderness along the Niagara Escarpment, the most significant spending this year, as in past years, was for property acquisitions. The Bruce Trail Conservancy acquired 14 parcels of land and one easement in F2018 (14 parcels and 1 easement in F2017), with a total value of $2,759,656 ($2,585,007 in F2017). Additional property acquisition and securement costs were $249,439 ($260,524 in F2017), for a total of $3,009,095 in land acquisition costs ($2,845,531 in F2017). At June 30, 2018 the Bruce Trail Conservancy owned 125 parcels and easements (110 in F2017) and a bridge over the QEW. During F2018 two severed portions of land containing houses were sold for $1,310,000. One property was purchased in F2017 while the other was purchased during F2018. The cost of land sold was $1,176,140, which resulted in a gain of $133,860 for land sold in F2018. There were no property sales in F2017. It is expected that purchase of properties with structures, followed by severance and sale of the developed portion and retention of the conservation portion for our corridor, will be an increasingly important tool in our land acquisition work. Balance sheet (statement of Financial Position) The Balance Sheet at year end shows total assets of $22,255,654 ($19,534,720 in F2017). These assets are comprised of current assets, restricted assets (Land Stewardship Reserve Fund), capital assets and other assets, including a property that was purchased in F2018 for $515,000, which will be severed and the non-conservation portion sold off in F2019. Capacity Fund: The day to day administrative expenses to run the Bruce Trail Conservancy are drawn from this fund. The fund balance is composed of current assets, capital assets, current liabilities and deferred revenue from three year and life memberships. Capital assets decreased this year over last year s numbers owing to greater amortization than additions to the capital assets. This decreased the capital asset net book value for F2018 to $173,209 ($214,846 in F2017). The primary current assets consist of cash and marketable securities of $334,413 ($298,044 in F2017). The remaining current assets are comprised of inventory, which is made up of guidebooks and other Bruce Trail Conservancy products that have a recorded cost of $58,095 ($119,009 in F2017 due to new guidebook), receivables $10,638 ($57,453 in F2017) and prepaid expenses of $75,601 ($110,765 in F2017). Conservation Fund: This fund addresses land acquisition, land stewardship and other mission-related programs. The vast majority of the Bruce Trail Conservancy s assets, including landholdings, are held in this fund. Cash availability at year end was $174,521 ($279,041 in F2017) while land owned, buildings and bridges totalled $17,744,449 ($15,837,520 in F2017). Another asset is the cash surrender value of a paid up life insurance policy of which the Bruce Trail Conservancy is the beneficiary, totalling $113,584 ($112,406 in F2017). Liabilities for this fund include deferred grants of $5,643 ($15,843 in F2017), and payables and accrued liabilities of $55,742 ($89,159 in F2017). Contingency Reserve Fund: A Contingency Reserve Fund target of $1 million is maintained to address any future crisis situation. At F2018 year-end this fund had a balance of $1,001,434 ($1,000,990 in F2017). Land Stewardship Reserve Fund: For every property acquired, approximately 10% of its value is placed into the Land Stewardship Reserve Fund. This fund is comprised of cash, investments and restricted investments (for the Fossil Glen and 24

25 Photo: Brian Popelier Ginseng, a species at risk observed on Bruce Trail Conservancy managed land Dunedin Ravine Nature Reserves) to generate income to cover future stewardship of the property. As a result of the acquisition of new properties in F2018, and investment income, the Land Stewardship Reserve grew by $181,981 to $1,368,923 ($1,186,942 in F2017). revenues and expenditures (statement of operations) Overall, in F2018 there was a deficiency in revenues over expenses of $50,658 (excess of $813,394 in F2017). Donations designated for land acquisition were $2,771,141 ($1,256,395 in F2017) and donations of land were $120,833 ($864,400 in F2017). Membership revenues increased by 7.4% to $474,162 ($441,534 in F2017) reflecting the year s strong growth in total memberships. Donations of cash, securities and bequests of $4,329,164 (comprised of $2,771,141 in donations and grants designated for land acquisition and $1,558,023 in non-restricted donations) were significantly higher than in F2017 ($3,799,859), primarily due to increased acquisitions and thus increased fundraising initiatives. Donations of land totalled $120,833 ($864,400 in F2017). The securities portion of the donations increased significantly to $1,997,661 in F2018 ($726,625 in F2017). Recognized undesignated grants totalled $18,450 ($51,014 in F2017). During F2018, $415,130 was donated specifically for land that will be purchased in F2019. Expenses for the year totalled $2,657,835 ($2,579,690 in F2017). The cost of salaries, benefits and government remittances for Bruce Trail Conservancy staff was $1,303,138 ($1,328,827 in F2017). There was one full time equivalent staff member added in May of F2018, the salary for whom is covered by a donation. The majority of payroll costs were related to fundraising for land acquisition and other programs, membership and public outreach. Other areas of significance variance in staff involvement over last year were Government Relations activities, which increased to $20,119 ($8,368 in F2017), and Committee and meeting expenses, which increased to $47,293 ($28,927 in F2017). These increases in staff time reflect the time spent on strategic planning as well as new Government Relations initiatives to secure access to public lands. Staff time spent on Member and public outreach decreased to $173,817 ($217,389 in F2017), and Marketing decreased to $52,134 ($83,312 in F2017). Bruce Trail Enterprises (product sales) net earnings were $105,893, roughly twice the amount in F2017 ($49,620) due primarily to the 29th edition of the guidebook that became available very late in F2017 and impacted revenues primarily in F2018. Membership and public outreach, exclusive of salaries, decreased to $41,406 ($104,964 in F2017) reflecting that the major expenses in F2017 was the web page redesign expense of $42,000. Computer and internet expenses for this year reflect the new cloud based accounting software subscription of $12,000 and the IT support for offsite backup and storage. The increase in amortization is related to the new assets purchased last year. The increase in land management and property taxes was largely attributed to the receipt of over $69,000 in property tax refunds for prior years due to the change in use of those properties to conservation land in F

26 T H E B R U C E T R A I L C O N S E R V A N C Y F I N A N C I A L S T A T E M E N T S August 30, 2018 independent auditors report To the Directors of The Bruce Trail Conservancy We have audited the accompanying financial statements of The Bruce Trail Conservancy, which comprise the statement of financial position as at June 30, 2018, and the statements of changes in fund balances, operations, 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. auditor s 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 the auditor's 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, the auditor considers 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 qualified audit opinion. Basis for Qualified opinion In common with many not-for-profit organizations, The Bruce Trail Conservancy derives revenue from donations and fundraising, the completeness of which is not susceptible to satisfactory audit verification. Accordingly, our verification of these revenues was limited to the amounts recorded in the records of The Bruce Trail Conservancy and we were not able to determine whether any adjustments might be necessary to revenues, excess (deficiency) of revenues over expenses for the year reported in the statement of operations, and current assets and fund balances in the statement of financial position. Qualified opinion In our opinion, except for the possible effects of the matters described in the basis for qualified opinion paragraph, the financial statements present fairly, in all material respects, the financial position of The Bruce Trail Conservancy as at June 30, 2018, and the results of its operations and its cash flows for the year then ended in accordance with Canadian accounting standards for not-for-profit organizations. Chartered Accountants Licensed Public Accountants Hamilton, Ontario 26

27 Bruce Trail near Fisher's Pond, Iroquoia section Photo: Brian Popelier 27

28 S T A T E M E N T O F F I N A N C I A L P O S I T I O N total capacity conservation contingency land stewardship June 30 Fund Fund reserve Fund reserve Fund assets Current assets Cash and cash equivalents $334,413 $174,521 $5,909 $52,645 $567,488 $668,751 Accounts receivable (Note 2) 10,638 7, ,561 64,426 Interfund receivable (Note 3) 94, Merchandise inventory 58, , ,009 Prepaid expenses and deposits 75,601 37, , ,496 Short-term investments (Note 4) - 1,000, ,000,000 - Land held for sale - 155, , , ,139 1,375,308 5,909 52,645 1,912,609 1,273,682 Restricted investments (Note 5) , , ,780 Investments (Note 5) ,525 1,197,931 2,193,456 1,983,486 Cash surrender value of life insurance (Note 6) - 113, , ,406 Capital assets (Note 7) 173,209 17,744, ,917,658 16,052,366 $746,348 $19,233,341 $1,001,434 $1,368,923 $22,255,654 $19,534,720 liabilities Current liabilities Accounts payable and accrued liabilities (Note 8) $204,422 $55,742 $ - $ - $260,164 $393,703 Interfund payable (Note 3) - 94, Deferred contributions and grants 12,492 5, ,135 15,843 Deferred membership revenue (Note 9) 88, ,263 86, , , , ,489 Deferred membership revenue (Note 9) 177, , , , , , ,996 Fund Balances Unrestricted 90, , ,008,895 26,277 Internally restricted 173,209 17,744,449 1,001,434 1,250,576 20,169,668 18,844,447 Externally restricted (Notes 5 and 10) - 415, , , ,119 19,077,564 1,001,434 1,368,923 21,712,040 18,870,724 $746,348 $19,233,341 $1,001,434 $1,368,923 $22,255,654 $19,534,720 Commitments (Note 11) Contingency (Note 12) S T A T E M E N T O F C H A N G E S I N F U N D B A L A N C E S total capacity conservation contingency land stewardship June 30 Fund Fund reserve Fund reserve Fund Fund balance, beginning of year $241,123 $16,441,669 $1,000,990 $1,186,942 $18,870,724 $15,936,535 (Deficiency) excess of revenues over expenses for the year (27,004) (130,031) 50,444 55,933 (50,658) 813,394 Donations restricted for the purchase of land and easements (Note 10) - 2,771, ,771,141 1,256,395 Donations of land and easements (Note 10) - 120, , ,400 Interfund transfers (Note 13) 50,000 (126,048) (50,000) 126, Fund balance, end of year $264,119 $19,077,564 $1,001,434 $1,368,923 $21,712,040 $18,870, See accompanying notes to financial statements (pages 31-36).

29 STATEMENT OF OPERATIONS total capacity conservation contingency land stewardship year ended June 30 Fund Fund reserve Fund reserve Fund revenue Donations of cash and securities (Note 10) $207,398 $1,350,625 $ - $ - $1,558,023 $2,543,464 Membership dues - Conservancy's portion 360, , ,617 Bruce Trail Enterprises 241, , ,751 Membership dues - Clubs portion 114, , ,917 Sponsorships 4,191 55, ,500 18,450 Miscellaneous income 1,953 34, ,146 24,014 Interest and realized investment income (loss) (1,997) (28,166) 28,134 28,952 26,923 95,039 Grants 5,000 13, ,450 51, ,978 1,425,411 28,134 28,952 2,414,475 3,287,266 expense (note 14) Fundraising - 448, , ,248 Administrative salaries and benefits 283, , ,879 Land securement - 249, , ,524 Member and public outreach - 215, , ,353 Land stewardship - 199, , ,888 Bruce Trail Enterprises 135, ,378 64,131 Committee and meeting expenses - 131, ,867 95,675 Clubs' share of membership dues 114, , ,917 Bruce Trail Magazine - 102, ,364 98,775 Rent, utilities and maintenance 100, , ,429 Computer and internet 87, ,364 64,135 Volunteer management - 82, ,911 76,405 Land management and property taxes - 73, ,845 8,576 Amortization 46,308 24, ,629 63,828 Trail development and maintenance - 67, ,554 38,475 Marketing - 59, , ,503 Donations forwarded to clubs 33, ,902 27,022 Annual general meeting - 27, ,579 24,068 Bank and service charges 27, ,505 26,033 Insurance 23, ,889 26,034 Investment management fees ,714 11,505 22,219 22,002 Staff expenses and travel 19, ,007 15,003 Professional fees 18, ,745 18,255 Office and general 18, ,242 17,734 Miscellaneous 14, ,296 6,829 Life insurance 11, ,832 12,669 Office equipment rental and maintenance 10, ,890 8,423 Landowner relations - 7, ,414 4, ,136 1,690,480 10,714 11,505 2,657,835 2,579,690 (Deficiency) excess of revenues over expenses from operations (13,158) (265,069) 17,420 17,447 (243,360) 707,576 Other income (expenses) Gain (loss) on sale of capital assets (4,289) 133, ,571 - Increase in unrealized gains from investments ,024 38,486 71,510 93,857 Increase in cash surrender value of life insurance (Note 5) - 1, ,178 7,055 Foreign currency exchange gain (loss) (9,557) (9,557) 4,906 (13,846) 135,038 33,024 38, , ,818 (Deficiency) excess of revenues over expenses for the year $(27,004) $(130,031) $50,444 $55,933 $(50,658) $813,394 See accompanying notes to financial statements (pages 31-36). 29

30 S T A T E M E N T O F C A S H F L O W S year ended June Operating activities (Deficiency) excess of revenues over expenses for the year $ (50,658) $ 813,394 Items not involving cash Amortization 70,629 63,828 Increase in cash surrender value of life insurance (1,178) (7,055) Increase in unrealized gains from investments (71,510) (93,857) Gain on sale of capital assets (129,571) - (182,288) 776,310 Net change in non-cash working capital balances relating to operations Decrease in accounts receivable 45,865 10,859 Decrease (increase) in merchandise inventory 60,914 (100,732) Decrease (increase) in prepaid expenses and deposits 8,620 (23,372) (Decrease) increase in accounts payable and accrued liabilities (133,539) 93,552 Increase (decrease) in deferred contributions and grants 2,292 (73,050) Increase in deferred membership revenue 10,865 2,766 (187,271) 686,333 Investing activities Purchase of short-term investments (1,000,000) - Donations restricted for the purchase of land 2,771,141 1,256,395 Proceeds on sale of land assets 1,262,487 - Purchase of land held for sale (1,045,589) (300,000) Purchase of land and easements (1,749,044) (1,720,607) Purchase of other capital assets (8,960) (60,783) Purchase of investments (144,027) (118,021) 86,008 (943,016) Decrease in cash and cash equivalents (101,263) (256,683) Cash and cash equivalents, beginning of year 668, ,434 Cash and cash equivalents, end of year $ 567,488 $ 668, See accompanying notes to financial statements (pages 31-36).

31 N O T E S T O F I N A N C I A L S T A T E M E N T S nature of operations J U N E 3 0, The Bruce Trail Conservancy (the Conservancy ) is a charitable organization working to preserve a corridor of natural land along the route of the Bruce Trail, and to develop and maintain the Bruce Trail for public use. Prior to its name change on October 23, 2007, the Conservancy was known as The Bruce Trail Association. The Conservancy was incorporated on March 13, 1963 under Ontario Letters Patent and is exempt from income tax as a registered charity under the Income Tax Act. 1. significant accounting policies These financial statements are prepared in accordance with Canadian accounting standards for not-for-profit organizations in Part III of the CPA Canada Handbook. The significant policies of the Conservancy are detailed as follows: Cash and cash equivalents Cash and cash equivalents are defined to include cash on hand and bank account balances with financial institutions, net of outstanding cheques. Cash and cash equivalents also include short-term deposits which are highly liquid with original maturities of less than three months. Merchandise inventory Merchandise inventory is valued at the lower of cost and net realizable value. Cost is determined on an average cost basis. Investments Investments are recorded at their fair value. Capital assets Capital assets are stated at cost less accumulated amortization. Amortization is based on the estimated useful lives of these assets and is computed using the following annual rates and methods: Furniture, fixtures and equipment 20% Declining balance Computer equipment and software 30% Declining balance Leasehold improvements 10 years Straight line Buildings 30 years Straight line Pedestrian bridge 40 years Straight line In the year of acquisition, the above assets are amortized at one-half of their normal rates. Land, easements and trademarks are not amortized. Expenditures for maintenance and repairs are charged to excess (deficiency) of revenues over expenses as incurred. Revenue recognition The Conservancy follows the deferral method of accounting for contributions. Unrestricted contributions are recognized as revenue when received or receivable if the amount to be received can be reasonably estimated and collection is reasonably assured. Restricted contributions are recognized as revenue in the year in which the related expenses are incurred. Contributions restricted for the purchase of capital assets are deferred and amortized into revenue at a rate corresponding with the amortization rate for the related asset. Restricted contributions for the purchase of land and easements and donations of land and easements in-kind are reported as a direct increase in the corresponding fund s balance. 31

32 N O T E S T O F I N A N C I A L S T A T E M E N T S 1. significant accounting policies (continued) Fund accounting Capacity Fund The Capacity Fund is responsible for the administrative activities of the Conservancy. Revenue is generated from memberships sold, unrestricted donations, restricted donations designated to this fund by donors and the sale of merchandise by Bruce Trail Enterprises. Conservation Fund The Conservation Fund is an internally restricted fund responsible for the management and stewardship of properties along the Bruce Trail and also supports the acquisition of new properties. Land and properties owned by the Conservancy and the revenues and expenses related to program delivery are reported in the Conservation Fund. Contingency Reserve Fund The Contingency Reserve Fund is an internally restricted fund to be used to cover the operations of the Conservancy in the event that there is an unforeseen circumstance that impacts its ability to generate cash flows for a period of time, or to support operating deficiencies and working capital requirements, at the discretion of the Board of Directors. Investment income earned by the fund is distributed annually as determined by the Board of Directors. Land Stewardship Reserve Fund The Land Stewardship Reserve Fund is an internally restricted fund to be used to fund future stewardship costs relating to the Conservancy s property holdings. Beginning in fiscal 2011, the Board of Directors approved a motion to adopt a policy to transfer approximately 10% (subject to variance based on review and final approval by the Board of Directors) of the cost of land acquired, or received as a donation, in any fiscal year from the Conservation Fund to the Land Stewardship Reserve Fund. Certain bequests and donations may also be allocated to this fund at the discretion of the Board of Directors. Donated services The work of the Conservancy is dependent on the voluntary service of many individuals. Since these services are not normally purchased by the Conservancy and because of the difficulty of determining their fair value, donated services are not recognized in these statements. Defined contribution pension plan All permanent full-time employees of the Conservancy are eligible to be members of a defined contribution pension plan. Contributions made by the Conservancy on behalf of eligible and participating employees are included in the excess (deficiency) of revenues over expenses from operations when incurred. Financial instruments Measurement of financial instruments The Conservancy initially measures its financial assets and financial liabilities at fair value. The Conservancy subsequently measures all its financial assets and financial liabilities at cost or amortized cost, except for investments in equity instruments that are quoted in an active market, which are measured at fair value. Changes in fair value are recognized in the excess (deficiency) of revenues over expenses in the period incurred. Financial assets measured at amortized cost include cash and cash equivalents, accounts receivable and prepaid expenses and deposits. Financial liabilities measured at amortized cost include accounts payable and accrued liabilities. Impairment For financial assets measured at cost or amortized cost, the Conservancy determines whether there are indications of possible impairment. When there is an indication of impairment, and the Conservancy determines that a significant adverse change has occurred during the period in the expected timing or amount of future cash flows, a writedown is recognized in the excess (deficiency) of revenues over expenses. A previously recognized impairment loss may be reversed to the extent of the improvement. The carrying amount of the financial asset may not be greater than the amount that would have been reported at the date of the reversal had the impairment not been recognized previously. The amount of the reversal is recognized in the excess (deficiency) of revenues over expenses. 32

33 1. significant accounting policies (continued) Transaction costs Transaction costs related to financial instruments that will be subsequently measured at fair value are recognized in the excess (deficiency) of revenues over expenditures in the period incurred. The carrying amount of the financial instruments that will not be subsequently measured at fair value is adjusted for transaction costs directly attributable to the origination, issuance or assumption of these instruments. Use of estimates The preparation of financial statements in conformity with Canadian accounting standards for not-for-profit organizations requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the statement of financial position date and the reported amounts of revenues and expenses for the year. Due to the inherent uncertainty of making estimates, actual results could differ from those estimates. 2. accounts receivable Accounts receivable are comprised of the following balances: Capacity Conservation Total June 30 Fund Fund Trade $ 10,638 $ 7,923 $ 18,561 $ 22,573 HST receivable ,853 $ 10,638 $ 7,923 $ 18,561 $ 64, interfund receivable/payable Interfund receivable/payable balances bear no interest and have no specific terms of repayment. 4. short-term investments Short-term investments are comprised of guaranteed investment certificates (GIC s). The GIC s held at June 30, 2018 have an effective interest rate of 2.10% and mature in February investments Investments are managed by an external investment manager and are invested as follows: Market Cost Market Cost Bond Fund $ 335,664 $ 339,162 $ 318,887 $ 314,863 Focus Canadian Equity Fund 475, , , ,163 Money Market Fund 563, , , ,196 Partner s Global Fund 937, , , ,172 $ 2,311,803 $1,955,943 $2,096,266 $1,790,394 The Conservancy has received grants in connection with the stewardship of specific properties. Pursuant to certain land stewardship agreements $118,347 ( $112,780) is required to be retained and is restricted for such purpose and has been reported as restricted investments on the statement of financial position. Investment income earned on these funds must also be utilized for land stewardship purposes. 6. cash surrender value of life insurance During fiscal 2012, the Conservancy received a $148,000 donation by way of premiums paid on a life insurance policy to which the Conservancy is the policyholder. The increase in the cash surrender value of the policy during the current year of $1,178 has been reported as other income in the Conservation Fund. The policy s cash surrender value at June 30, 2018 was $113,584 ( $112,406). 33

34 N O T E S T O F I N A N C I A L S T A T E M E N T S 7. capital assets Capacity Fund June 30 Accumulated Cost amortization Net book value Net book value Computer equipment and software $ 137,638 $ 72,672 $ 64,966 $ 94,538 Leasehold improvements 72,651 14,312 58,339 60,223 Furniture, fixtures and equipment 81,000 40,253 40,747 50,928 Trademarks 9,157-9,157 9,157 $ 300,446 $ 127,237 $ 173,209 $ 214,846 Trademarks represent the costs associated with application and filing for certain trademarks used by the Conservancy. These trademarks represent an intangible asset to the Conservancy with an indefinite life and therefore no amortization has been taken. Conservation Fund June 30 Accumulated Cost amortization Net book value Net book value Land and easements $ 17,198,266 $ - $ 17,198,266 $ 15,267,016 Pedestrian bridge 378,525 99, , ,625 Buildings 436, , , ,879 $ 18,013,099 $ 268,650 $ 17,744,449 $ 15,837,520 As at June 30, 2018, the Conservancy owned 125 parcels ( parcels) totaling 5,249 acres (2017-4,876 acres). 8. accounts payable and accrued liabilities Included in accounts payable and accrued liabilities are government remittances payable of $24,853 ( $23,444), which includes amounts payable for payroll related taxes and WSIB premiums. 9. deferred membership revenue The Conservancy offers three membership options. These options include a one year, a three year or a life membership. The one year memberships are recognized as revenue in the year in which they are issued. The three year memberships are recognized as revenue evenly over three years. With the purchase of a three year membership, members save $10 on the total cost. The discount is recognized as a reduction to revenue in the third and final year. The membership revenue attributable to the life memberships is recognized evenly over 20 years. Irrespective of the membership option selected, $11 from each membership fee is paid annually to a Bruce Trail Conservancy club of the member s choosing. Deferred membership revenue is comprised of the following: June Current: Three year memberships $ 75,023 $ 74,629 Life memberships 13,240 12,314 88,263 86,943 Long-term: Three year memberships 33,326 33,455 Life memberships 143, , , ,507 $ 265,315 $ 254,450 34

35 9. deferred membership revenue (continued) Included in deferred membership revenue at the year-end date were the following amounts which are eventually owing to the Bruce Trail Conservancy clubs: June Three year memberships current portion $ 19,492 $ 19,531 Three year memberships long-term portion 9,603 9,878 Life memberships current portion 3,168 2,951 Life memberships long-term portion 28,463 31,334 $ 60,726 $ 63, donations During the year the Conservancy received donations and donations of land and easements in-kind totaling $4,449,997 ( $4,664,259). The donations have been accounted for as restricted or unrestricted based upon the intentions of the donor. Restricted for the purchase of land and easements Consistent with the Conservancy s on-going operations and strategic objectives, donations restricted for the purchase of land and easements and donations of land and easements in-kind were received during the year. Donations restricted for the purchase of land and easements and donations of land and easements in-kind amounted to $2,771,141 ( $1,256,395) and $120,833 ( $864,400) respectively. In accordance with Canadian accounting standards for not-for-profit organizations that follow the deferral method of accounting for contributions, these restricted donations for the purchase of non-depreciable capital assets have been accounted for as a direct increase in the year-end fund balance of the Conservation Fund and therefore are not reflected as revenue in the statement of operations. During the year the Conservancy received restricted donations totaling $415,130 for a specific land acquisition which as at June 30, 2018 had not yet been made. These restricted donations have been included in the total of donations restricted for the purchase of land and easements of $2,771,141. Unrestricted The Conservancy received $1,558,023 ( $2,543,464) in unrestricted donations which have been recognized as revenue in the statement of operations in the current year. Unrestricted donations can be utilized by the Conservancy for any required purpose including the support of administration, operations and strategic objectives. 11. commitments The Conservancy s total commitments, under various operating leases and property lease agreements, exclusive of occupancy costs, approximate the following: 2019 $ 166, , , , ,600 Thereafter 345,200 $ 1,117, contingencies From time to time, the Conservancy is subject to claims and other lawsuits that arise in the course of operations, some of which may seek damages of substantial amounts. These claims may be covered by the Conservancy s insurance. As at June 30, 2018, based on management s assessment, there were no outstanding claims that would likely cause an economic loss to the Conservancy and therefore no amount has been accrued in the financial statements. 35

36 N O T E S T O F I N A N C I A L S T A T E M E N T S 13. interfund transfers Consistent with the Conservancy s policy, the Board of Directors recognized and carried out a transfer of funds from the Conservation Fund to the Land Stewardship Reserve Fund in the amount of $126,048 ( $279,421) and a transfer from the Contingency Reserve Fund to the Capacity Fund in the amount of $50,000 ( $100,000). These transfers were made to support the Conservancy s ongoing operating and strategic initiatives. 14. allocation of costs by function Salaries and benefits represent the largest component of operating costs and are allocated to various functions to reflect the time spent in each area. Direct expenses are charged directly to the related area. Salaries and benefits have been allocated to the various functions as follows: June Fundraising $ 313,095 $ 291,886 Administrative 283, ,879 Member and public outreach 173, ,389 Land stewardship 143, ,058 Land securement 122, ,386 Volunteer management 78,339 70,738 Marketing 52,134 83,312 Committee and meeting expenses 47,293 28,927 Other functions 37,113 40,144 Government relations 20,119 8,368 Trail development and maintenance 16,390 21,902 Annual general meeting 15,544 10,838 $ 1,303,138 $ 1,328, defined contribution pension plan The Conservancy makes contributions to a defined contribution pension plan on behalf of its permanent full-time employees. A permanent employee is defined as working a minimum of 24 hours per week. The Conservancy matches the contributions made by each employee to a maximum of 3.00% of the employee s annual salary. During the year, the Conservancy s contribution to the plan was $27,951 ( $26,668). 16. economic interest The Conservancy has an economic interest in 9 clubs located along the Bruce Trail. Each club has accepted responsibility for developing and maintaining the portion of the trail located within its district, for assisting with the stewardship of the Conservancy s properties, conducting hikes for member and non-member public, public outreach, fundraising, and other related activities. These activities are conducted by each club using its own volunteers and financial resources, including a portion of the membership dues paid to the Conservancy and donations received by the Conservancy on behalf of the club. The Conservancy may provide special funding for projects beyond the resources of the clubs. 17. Financial instruments Transactions in financial instruments may result in an entity assuming or transferring to another party one or more financial risks. The required disclosures provide information that assists users of the financial statements in assessing the extent of risk related to financial instruments. It is management's opinion that, unless otherwise noted, the Conservancy is not exposed to significant currency, liquidity, credit, foreign exchange, interest or concentration risk. 18. comparative amounts The financial statements have been reclassified, where applicable, to conform to the presentation used in the current year. The changes do not affect the aggregate fund balances or the prior year results. 36

37 Photo: Hamilton Conservation Authority Bruce Trail in Dundas Valley 37