2014 Annual Report - All Nations Trust Company · 2014 Annual Report. ... Gary Swite Vice President Executive Committee Loan Board Committee ... EXPANSIONS $488,577 X 15 0 5 10 15

www.antco.bc.ca

All Nations Trust Company520 Chief Eli LaRue Way Kamloops, BC V2H 1H1

Telephone 778-471-4110Toll Free 1-800-663-2959Fax 250-372-2585Email: [email protected]

2014 Annual Report

The CompanyIncorporated under the Company Act of British Columbia in December 1984 and registered as All Nations

Trust Company under the Trust Company Act of the Province of British Columbia in November 1987.ANTCO is owned by 208 Shareholders consisting of Bands, Tribal Councils, Aboriginal Businesses, Status,

Non Status and Metis individuals in the Common Bond Association.

Our VisionSelf-reliant Aboriginal people thriving in diverse economies.

Our MissionTo facilitate Aboriginal self-sufficiency through provision of financial and business services.

1

Printed on

PORTALBERNI

LILLOOET

KIMBERLEY

LYTTON

First Citizens Fund and Business Equity Fund

Business EquityFund Only

First CitizensFund Only

ANTCO’SService Area

ContentsChairperson / President Report 2

Chief Executive Officer Report 3

Board of Directors 4

Staff 5

Client Profiles 6

Endowment Recipients 7

Business Equity Fund 8

Pathways to Technology 9

Financial Highlights 10

Audited Financial Statements 1 1

Year in Pictures 24

2 ANTCO 2014 Annual Report

On behalf of the Board of Directors for All Nations Trust Company, I am pleased to report another very successful year for our companies.

Total Shareholder’s Equity has increased 3.2 % over last year, from $17.42 M to $17.98M. Our net consolidated income was $722,713. The financial success of All Nations Trust Company continues to be a major success story in the Aboriginal financial services industry and even the financial services industry overall. Our loan/loss ratio has been .05% over the past five years. Our Auditor tells us that this is a much better performance than the big banks. As a result of our financial success, the Board of Directors approved $160,039 in dividends to our Shareholders this year. We continue to thank our Shareholders for their trust in the company and their patience in getting a return on their investment.

A major accomplishment of the company this past year was the completion of our building and the grand opening on June 6th. This building will be a lasting symbol of success of All Nations Trust Company. It is also a symbol of the vision and perseverance that the leadership of this company have had over the past 30 years. We also think of this building as a symbol of the faith our Shareholders have had in the company over the years as we worked hard to earn their respect and a rate of return on their investments. We expect that the building will be fully leased by the fall of 2014.

As stated in the past, the strategic decision to diversify our business lines is really paying off. Our competence and professionalism in project and program management is well established and our credibility as an outstanding business organization continues to earn ANTCO substantial business arrangements with the federal and provincial governments and also with Aboriginal partners. In addition to venturing into commercial real estate with our building, this past year we made the decision to expand our investment strategy to include wholly owned business ventures. In late summer/early fall of 2014, we will be opening All Nations Insurance Brokers Inc., a wholly ANTCO owned and operated insurance business, which will focus in commercial and home insurance products. We look forward to doing business with our Shareholders and their enterprises as well.

As the Chairperson and President of the companies, I want to thank our CEO, Paul Donald, and his outstanding Staff for the excellent job they continue to do in moving this company forward. The success of this company is due to competence,

Chairperson/President Reportprofessionalism and reliability of this amazing team. They are our most valued asset and we love them dearly.

I want to thank the Board of Directors for their commitment and hard work in the planning and direction of the companies and serving in the best interest of the Shareholders.

And, again, I want to thank our Shareholders for the trust and confidence you have placed in the Board, Management and Staff to guide and manage the companies. As always, we strive to stay connected to the needs of our communities and open doors to opportunities for ANTCO which will enable our clients to prosper.

Respectfully,

Tim LowChairperson / President

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This fiscal year was a time of significant change. On October 1st, I took over as CEO from one of the company founders, Ruth Williams. I would like to acknowledge the hard work of Ruth and our Board of Directors for putting the company on solid financial ground and for earning an excellent reputation amongst our Clients and Shareholders.

After being in business for more than a quarter century, the company moved into our professional office building in February. The new building embodies the professionalism of this company and will provide a base for future growth. The move has enhanced both our corporate image and our Staff morale. All Staff members assisted with the move and were eager to put in the extra effort to make thislong-awaited transition to our new office.

As for the future; the company has recognized that business diversification and expansion will continue to be our key to long-term success. Without taking away from our base of aboriginal business loans, we need to seek out new business opportunities. The Board of Directors has provided the direction for this diversification and have assisted with the development of an overall growth plan for the future. With the experienced and talented Staff on board, I look forward to moving the company into a new era of growth.

Kukstemc,

Paul DonaldChief Executive Officer

Chief Executive Officer Report

Tourism 10%

Transportation 5% Agriculture 7%

Construction 12%

Forestry 7%

Manufacturing 3%

Retail 8%

Service 48%

Industry Loans Fiscal 2013/14% of Loans

Loans by Region

CARIBOO

KOOTENAY

NORTH E

ASTERN B

C

THOMPSO

N/

OKANAGAN

$378,377

$120,805

$32,670

$842,515

10 5 2 23

$ V

alue

of

Loan

# of Loans

FCF/Trustee 2013/14

FIRST

CITI

ZENS FUND

LOANS

TRUST

EE LOANS

$987,500

$245,627

25 9

$ V

alue

of

Loan

# of Loans


Tim LowChairperson/PresidentExecutive Committee

Latrica NicholasChairperson of Investment and Lending Committee

Gary SwiteVice PresidentExecutive Committee Loan Board Committee

Howard CampbellConduct Review Committee

Byron LouisConduct Review Committee

Matthew PascoTreasurerExecutive Committee Chairperson of Audit/Finance Committee

Gail JoeAudit/Finance CommitteeLoan Board Committee

Julia DickAudit/Finance CommitteeLoan Board Committee

Barbara HustonSecretary Executive Committee Loan Board Committee

Stacie CoutleeInvestment and Lending Committee

Greg MazurInvestment and Lending Committee

Board of Directors

Joyce KenorasChairperson of Conduct Review CommitteeLoan Board Committee

“We all owe so much to the small but determined group of visionaries whose dream has been realized in the success of ANTCO.” -Greg Mazur

Board of DirectorsShareholders

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Staff

Executive Assistant

BusinessDevelopment Manager

Finance Manager

Business Loans Officer

CMHC/DLAdministrator

Finance AssistantInformation &

Technology Officer

BusinessDevelopment Officer

BusinessDevelopment Officer

BusinessDevelopment Assistant

Administrative Assistant

ChiefExecutive Officer

Business Loans Officer

Loans Administrator

Front RowSusan Keenan Business Development ManagerBack RowChantel Jones Business Development AssistantFrancyne Joe Business Development Officer

Front RowPaul Donald Chief Executive OfficerBack RowMarlene Draney CMHC/DL AdministratorStephanie Fletcher Business Loans OfficerTracy Armstrong Executive Assistant

Front RowKarli Schram Loans AdministratorMelissa Mongrain Finance AssistantBack RowDianne Oppenheim Information and Technology OfficerConnie Rozeck Finance Manager


Dacron Enterprises Ltd.Vernon

Dacron Enterprises Ltd. is owned equally three ways by Ronald (Ron) Bonnough and his two sons Christopher Bonnough and Darren Bonnough. Ron has 30+ years of experience working with heavy equipment. His two sons Christopher and Darren have 6 and 4 years of experience, respectively.

Dacron Enterprises Ltd. is a heavy equipment rental company based out of Vernon, B.C. that has been operating successfully for 5 years. Dacron is a service company that rents equipment to other companies which subcontract equipment and operators into the ‘oil patch’. The equipment rentals include Backhoes, excavators, generators, light towers, and other supplemental pieces of equipment.

Client Profiles

Photo courtesy of Dacron Enterprises Ltd. Photo courtesy of Dacron Enterprises Ltd.

Alround Spray Foam Insulation Inc.Cranbrook

Troy Ross is of Metis ancestry and is the sole proprietor of Alround Spray Foam Insulation Inc. located in Cranbrook, BC. Troy has over twenty years of experience in the construction industry and provides the spray foam product/service to commercial and residential units, as well as the mining industry in the East and West Kootenay Regions. Spray foam is an alternative to the more common fibre glass insulation.

Photo courtesy of Alround Spray Foam Insulation Inc.

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Focused Fitness 100 Mile House

Kameron Taylor is a youth member of the Dzawada’enuxw First Nation (Kincome Inlet, BC ) and is the sole proprietor of Focused Fitness.

Focused Fitness is located in 100 Mile House and offers a variety of fitness and aerobics classes as well as weight and exercise machines. Mr. Taylor has a degree in kinesiology from the University of the Fraser Valley and he is a Certified Personal Trainer through the Canadian Society of Exercise Physiology (CSEP).

Photo courtesy of Focused FItness Photo courtesy of Focused FItness

Grade 12 BursaryJack Lulua

Post Secondary EndowmentCandice Loring

Julianne Peters

Amanda Neufeld

Richelle Bowe

ANTCO/BMO BursaryAshlie Daniels

Endowment Recipients

“I am proud of ANTCO and the successful businesses we’ve assisted….I look forward to many more great opportunities for the company!” -Joyce Kenoras


BEF Approved Projects

ANTCO is pleased to offer the Business Equity Fund (BEF) which is a program supported by Aboriginal Affairs and Northern Development Canada (AANDC). BEF support varies depending upon the needs of the client, the availability, and sources of funding, the eligibility of costs and the economic benefits.

The BEF will consider non-repayable contributions for eligible capital and business support to start, expand or acquire a viable Aboriginal owned business. The BEF will also consider non-repayable contributions for business planning, marketing and other related business support services. The Fund may contribute up to a maximum of $99,999 to individuals and incorporated businesses and up to $250,000 for community owned business based on a viable business plan and subject to other financing being in place. ANTCO is servicing the delivery area of the BC Interior, the Northwest and the Northeast.

Business Equity Fund

CAPITAL COSTS(VALUE)

45 ProjectsAverage $42,750

BUSINESSSUPPORTS(VALUE)

24 ProjectsAverage $18,250

ACQUISITIONS$316,500 X 6EXPANSIONS$488,577 X 15 0 5 10 15 20 25 30 35

THOMPSON/OKANAGAN $1,116440

NORTH WEST $547,725

NORTH EAST $199,400

KOOTENAY $170,210

CARIBOO $327,375

By Type By Region

Kalum Tire Service Ltd.

Kalum Tire Service Ltd. located in Terrace BC, is an incorporated company owned by Adam and Kate McCarron of the Kitsumkalum Band. In 2013 the McCarron’s were looking into the purchase of Kalum Tire Service Ltd. and came to ANTCOfor assistance.

Kalum Tire Service Ltd. is a reputable business that offers a complete vehicle repair service as well as a full tire and parts retail store and has been in business for over 50 years.

The Business Equity Fund was able to provide grant funds to the McCarron’s to help offset the costs of purchasing the business.

“It’s been an honour to have been part of “Team ANTCO” over the years and to witness the success of the company.” -Tim Low

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Pathways to TechnologyYear in Review

Fiscal 2014 is “in the books” and some of the numbers are impressive indeed. But while the numbers may tell a tale, they’re certainly not the whole story. As followers of the Pathways project know, the Project is driven to meet certain “metrics,” the key one being 203. Pathways has committed to ensuring that all 203 First Nations in BC attain access to, at minimum, consumer grade broadband. In almost every instance the project has exceeded this minimum. As of March 31, 2014 Pathways reports that 175 (86%) of First Nation communities in the province have access to high-speed broadband service. We are also pleased to report that for 184 communities (91%) the transport phase (also known as “backhaul” or “backbone”) is in place, with only the last mile phase to follow.

Transport work commenced in 12 additional communities during the year: Coldwater, Saikuz, Nuxalk (Bella Coola), Huu-ay-aht, Heiltsuk (Bella Bella), Gitga’at (Hartley Bay), Gitxaala (Kitkatla), Klemtu/Kitasoo, Gitanmaax, Skeetchestn, Wuikinuxv and Whispering Pines. For five of these communities work was completed the same year and these communities are now enjoying all of the benefits enabled by high-speed Internet accessibility: Nuxalk, Heiltsuk, Gitga’at, Gitxaala and Klemtu/Kitasoo. These were not the only projects to be completed however. Transport work wrapped up in the community of Whispering Pines, while last mile projects were completed and service was turned up in Wuikinuxv, Cooks Ferry, Gitsegukla, Whispering Pines and Skeetchestn.

In the first regional build for Pathways, TELUS was enlisted to carry out the Coastal Radio Upgrade project. TELUS upgraded its gear atop Mount Hays in Prince Rupert on the north coast and installed newer technology microwave radio equipment on three mountaintops along the north and central coast, enabling 100 mbps service into Gitxaala, Gitga’at, Kitasoo and Heiltsuk. The project commenced in May 2013 and was completed in March 2014.

Pathways also forged partnerships with two new contractors and re-acquainted itself with a previous one. The new partners are City West, out of Prince Rupert and SAGE IT, a Kamloops-based technology company. City West continues work on a

large project to bring fibre to all of the homes in Gitanmaax while SAGE IT completed two assignments, providing last mile services for Whispering Pines and Skeetchestn. Pathways went “back to the well” one more time, enlisting Northwestel to bring ADSL connectivity to Good Hope Lake in the far north. The community was quickly outfitted with 5 mbps service this spring and will have access to 15 mbps service by Septembers 2014.

Looking ahead to the rest of 2014 and beyond, a number of builds should conclude over the next six months. These include Samahquam (In-SHUCK-ch Nation), Coldwater, Saikuz, Good Hope Lake, Gitanmaax and Lheidli T’enneh.

Photo: Jamie Sterritt


Financial Highlights

2014 2013 2012Results for the Year

Net Interest Income 613,560$ 715,805$ 733,797$ Administration & Other Income 4,019,421$ 5,196,293$ 6,594,565$ Total Income 4,632,981$ 5,912,098$ 7,328,362$

Total Expenses (Net of taxes recovered) 3,596,276$ 4,447,459$ 6,362,167$

Net Income 722,713$ 1,083,759$ 709,556$

Net Income per common (voting) share 0.45 0.68 0.44

Year End Position

Total Assets 57,615,389$ 62,607,419$ 59,089,343$ Total Liabilities 39,637,552$ 45,192,256$ 42,640,856$ Shareholders' Equity 17,977,837$ 17,415,163$ 16,448,487$

Common (voting) shares outstanding 1,599,100 1,599,100 1,599,100

Financial Ratios

Return on Total Assets 1.25% 1.73% 1.20%Return on Common Equity 45.19% 67.77% 44.37%

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INDEPENDENT AUDITOR’S REPORT

To the Shareholders of:All Nations Trust Company

The accompanying summarized consolidated statement of financial position and summarized consolidated statements of changes in equity, comprehensive income and cash flows are derived from the complete consolidated financial statements of ALL NATIONS TRUST COMPANY as at March 31, 2014, and for the year then ended, on which we expressed anopinion without reservation in our report dated June 7, 2014.

Management’s Responsibility for the Financial StatementsThe fair summarization of the complete consolidated financial statements is the responsibility of the Company’smanagement.

Auditor’s ResponsibilityOur responsibility, in accordance with the applicable Assurance Guideline of the Canadian Institute of CharteredAccountants, is to report on the summarized consolidated financial statements.

OpinionIn our opinion, the accompanying summarized consolidated statements fairly summarize, in all material respects, the related complete consolidated financial statements in accordance with the criteria described in the Guideline referred to above.

Other MattersThese summarized consolidated financial statements do not contain all the disclosures required by International Financial Reporting Standards. Readers are cautioned that these summarized consolidated statements may not be appropriate for their purposes. For more information on the Company’s financial position, results of operations and cash flows, reference should be made to the related complete consolidated financial statements.

June 7, 2014 Chartered Accountants LLP

INDEPENDENT AUDITOR'S REPORT


The accompanying summarized consolidated statement of financial position and summarized consolidated statements ofchanges in equity, comprehensive income and cash flows are derived from the complete consolidated financial statementsof ALL NATIONS TRUST COMPANY as at March 31, 2014, and for the year then ended, on which we expressed anopinion without reservation in our report dated June 7, 2014.

Management's Responsibility for the Financial Statements

The fair summarization of the complete consolidated financial statements is the responsibility of the Company'smanagement.

Auditor's Responsibility

Our responsibility, in accordance with the applicable Assurance Guideline of the Canadian Institute of CharteredAccountants, is to report on the summarized consolidated financial statements.

Opinion

In our opinion, the accompanying summarized consolidated statements fairly summarize, in all material respects, therelated complete consolidated financial statements in accordance with the criteria described in the Guideline referred toabove.

Other Matters

These summarized consolidated financial statements do not contain all the disclosures required by International FinancialReporting Standards. Readers are cautioned that these summarized consolidated statements may not be appropriate fortheir purposes. For more information on the Company's financial position, results of operations and cash flows, referenceshould be made to the related complete consolidated financial statements.


Audited Financial Statements

200-15300 Croydon DriveSurrey, BC V3S 0Z5

Phone: 604-536-7614Toll Free 1-800-761-7772Fax: 604-538-5356

www.knv.com

800-1285 West BroadwayVancouver, BC V6H3X8

Phone: 604-736-2571Toll Free 1-800-761-7772Fax: 604-739-4280

www.knv.com

INDEPENDENT AUDITOR'S REPORT


The accompanying summarized consolidated statement of financial position and summarized consolidated statements ofchanges in equity, comprehensive income and cash flows are derived from the complete consolidated financial statementsof ALL NATIONS TRUST COMPANY as at March 31, 2014, and for the year then ended, on which we expressed anopinion without reservation in our report dated June 7, 2014.

Management's Responsibility for the Financial Statements

The fair summarization of the complete consolidated financial statements is the responsibility of the Company'smanagement.

Auditor's Responsibility

Our responsibility, in accordance with the applicable Assurance Guideline of the Canadian Institute of CharteredAccountants, is to report on the summarized consolidated financial statements.

Opinion

In our opinion, the accompanying summarized consolidated statements fairly summarize, in all material respects, therelated complete consolidated financial statements in accordance with the criteria described in the Guideline referred toabove.

Other Matters

These summarized consolidated financial statements do not contain all the disclosures required by International FinancialReporting Standards. Readers are cautioned that these summarized consolidated statements may not be appropriate fortheir purposes. For more information on the Company's financial position, results of operations and cash flows, referenceshould be made to the related complete consolidated financial statements.



SUMMARIZED CONSOLIDATED STATEMENT OF FINANCIAL POSITIONMARCH 31, 2014, AND 2013 (AUDITED COMPARISONS)

Page 3ALL NATIONS TRUST COMPANY

SUMMARIZED CONSOLIDATED STATEMENT OF FINANCIAL POSITION MARCH 31, 2014, AND 2013

(AUDITED COMPARISONS)

2014 2013

ASSETSCASH AND CASH EQUIVALENTS $ 8,311,926 $ 6,531,723

ACCOUNTS RECEIVABLE 120,335 7,410,943

PREPAID EXPENSES 332,464 18,179

CORPORATE INCOME TAXES RECEIVABLE 80,165 -

MARKETABLE SECURITIES (Note 1) 34,513,050 36,149,749

OTHER INVESTMENTS (Note 2) 1,707,654 1,698,654

LOANS RECEIVABLE (Note 3) 8,415,407 9,926,444

PROPERTY AND EQUIPMENT 4,134,388 871,727$ 57,615,389 $ 62,607,419

LIABILITIES AND SHAREHOLDERS' EQUITY

ACCOUNTS PAYABLE AND ACCRUED LIABILITIES $ 103,373 $ 4,965,497

DEMAND LOANS (Note 4) 2,560,801 -

PROMISSORY NOTE (Note 5) 1,400,000 1,400,000

UNEARNED REVENUE 4,051 4,051

CORPORATE INCOME TAXES PAYABLE - 132,319

DEFERRED CONTRIBUTIONS (Note 6) 590,299 1,275,150

DEFERRED LIABILITY (Note 1) 34,979,028 37,415,23939,637,552 45,192,256

NUU-CHAH-NULTH ECONOMIC DEVELOPMENT CUSTODIAL TRUST AGREEMENT (Note 7)

PEACE HILLS TRUST SYNDICATION AGREEMENT (Note 8)

SHAREHOLDERS' EQUITY:Share capital 1,599,100 1,599,100Contributed surplus (Note 9) 10,276,248 8,276,248Government contributions (Note 10) 297,500 2,297,500Retained earnings 5,804,989 5,242,315

Total shareholders' equity 17,977,837 17,415,163$ 57,615,389 $ 62,607,419

APPROVED BY:

The accompanying Notes are an integral part of this statement.


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SUMMARIZED CONSOLIDATED STATEMENT OF CHANGES IN EQUITYFOR THE YEARS ENDED MARCH 31, 2014 AND 2013 (AUDITED COMPARISONS)


SUMMARIZED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE YEARS ENDED MARCH 31, 2014 AND 2013 (AUDITED COMPARISONS)

TotalNumber of Contributed Government Retained shareholders

common shares Amount surplus contributions earnings equity

BALANCE APRIL 1, 2012 1,599,100 $ 1,599,100 $ 7,962,120 $ 2,624,705 $ 4,262,562 $ 16,448,487

ADD (DEDUCT):Total comprehensive income - - - - 1,083,759 1,083,759Dividends - common shares - - - - (104,006) (104,006)Sunset of Youth Initiative Program - - 327,205 (327,205) - -Legal fees paid on share restructure - - (13,077) - - (13,077)

BALANCE MARCH 31, 2013 1,599,100 1,599,100 8,276,248 2,297,500 5,242,315 17,415,163

ADD (DEDUCT):Total comprehensive income - - - - 722,713 722,713Dividends - common shares - - - - (160,039) (160,039)AANDC Developmental Loan Fund conversion - - 2,000,000 (2,000,000) - -

BALANCE MARCH 31, 2014 1,599,100 $ 1,599,100 $ 10,276,248 $ 297,500 $ 5,804,989 $ 17,977,837





SUMMARIZED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME


2014 2013

REVENUE: Interest on loans $ 613,560 $ 715,805 Management, administration and other fees 1,513,778 1,624,612 Investment income 88,888 74,657 Partnership income 9,000 12,465 Program funds and other 698,054 447,347 First Nations Infrastructure Fund AANDC (Note 1) - 3,037,212 Business Equity Fund (Note 6) 1,709,701 -

4,632,981 5,912,098

EXPENSES:Bad debt expense (recovery) - Loans written-off 93,282 8,040 Specific recovery (66,022) (2,998) General recovery (13,613) (12,939)

Total bad debt expense (recovery) 13,647 (7,897)

Directors (Schedule) 90,819 103,162Personnel (Schedule) 1,071,225 818,880Premises (Schedule) 68,106 48,491General and administrative (Schedule) 642,778 543,064First Nations Infrastructure Fund (Note 1) - 2,941,759Business Equity Fund (Note 6) 1,709,701 -

3,596,276 4,447,459

Income before provision for income tax 1,036,705 1,464,639

PROVISION FOR INCOME TAX 313,992 380,880

TOTAL COMPREHENSIVE INCOME $ 722,713 $ 1,083,759

BASIC EARNINGS PER SHARE $ 0.451 $ 0.677

The accompanying Notes and Schedule are an integral part of this statement.

SUMMARIZED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOMEFOR THE YEARS ENDED MARCH 31, 2014 AND 2013 (AUDITED COMPARISONS)


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Page 6Schedule

ALL NATIONS TRUST COMPANYSUMMARIZED CONSOLIDATED SCHEDULE OF EXPENSES


2014 2013

Directors: Honoraria $ 47,774 $ 50,142 Travel and board administration 43,045 53,020

$ 90,819 $ 103,162

Personnel: Benefits $ 152,323 $ 126,000 Training and recruitment 6,130 5,896 Wages 912,772 686,984

$ 1,071,225 $ 818,880

Premises: Janitorial and maintenance $ 11,561 $ 13,046 Rent 56,545 35,445

$ 68,106 $ 48,491

General and administrative: Advertising and promotion $ 41,248 $ 45,155 Annual shareholders' meeting 13,260 12,210 Computer equipment and software 5,753 4,400 Consulting 105,541 116,528 Depreciation 18,410 15,254 GST/HST 115,430 98,340 Insurance 30,613 38,792 Interest and bank charges 876 676 Interest on long-term debt 31,112 - Legal fees 34,882 20,253 Loan expenses 13,906 8,915 Office 11,755 17,629 Professional and audit fees 38,385 41,528 Supplies 58,405 33,841 Telephone 34,052 23,958 Travel and meals 82,507 61,824 Utilities 4,064 - Workshops/mentoring 2,579 3,761

$ 642,778 $ 543,064

The accompanying Notes are an integral part of this schedule.

SUMMARIZED CONSOLIDATED SCHEDULE OF EXPENSESFOR THE YEARS ENDED MARCH 31, 2014 AND 2013 (AUDITED COMPARISONS)




SUMMARIZED CONSOLIDATED STATEMENT OF CASH FLOWS


2014 2013

CASH WAS PROVIDED FROM (USED IN):Operating Activities: Comprehensive income $ 722,713 $ 1,083,759 Items not affecting cash - Depreciation 18,410 15,254 Partnership income (9,000) (12,465)

732,123 1,086,548Net change in non-cash working capital balances (1,219,347) 550,194

(487,224) 1,636,742

Investing Activities: Purchase of property and equipment (3,281,071) (836,601) Decrease (increase) in marketable securities 1,636,699 (966,177) Decrease in loans receivable 1,511,037 1,260,088

(133,335) (542,690)

Financing Activities: Proceeds from bank loans 2,560,801 - Dividends (160,039) (104,006) Legal expenses charged to contributed surplus - (13,077)

2,400,762 (117,083)

Increase in cash and cash equivalents 1,780,203 976,969

CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 6,531,723 5,554,754

CASH AND CASH EQUIVALENTS, END OF YEAR $ 8,311,926 $ 6,531,723


SUMMARIZED CONSOLIDATED STATEMENT OF CASH FLOWSFOR THE YEARS ENDED MARCH 31, 2014 AND 2013 (AUDITED COMPARISONS)

17


NOTES TO SUMMARIZED CONSOLIDATED FINANCIAL STATEMENTS

MARCH 31, 2014

1. GOVERNMENT CONTRIBUTION AGREEMENT

The Company was awarded unconditional grants from the Provincial Government, Ministry of Labour andCitizens Services: one which was received in March 2008 for $22,500,000 and $18,300,000 on February 16,2009. The funds relate to the First Nations Connectivity Fund titled the Pathway to Technology Project(PTT); the purpose of this project is to install the infrastructure needed to provide broadband connectivity toFirst Nations unconnected or under-connected communities in B.C..

In fiscal 2013, the Company received $3,037,212 from AANDC for connectivity, which was allocatedtowards infrastructure and management fees to complement the PTT project. No amounts were received infiscal 2014.

The assets and liabilities of the two projects are analyzed as follows, and are included in the respectivebalance sheet accounts:

2014 2013

Cash and cash equivalents $ 480,075 $ 901 Accounts receivable 4,323 2,945,674 Marketable securities 34,513,050 36,149,749 Accounts payable and accrued liabilities (18,420) (1,681,085) Deferred liability (34,979,028) (37,415,239)

Net assets $ NIL $ NIL

During the fiscal year-ending March 31, 2014, the Company incurred total expenditures of $2,436,211 (2013- $1,791,868) relating to the projects, which have been offset by $2,436,211 (2013 - $1,791,868) of relatedgrant revenue in accordance with International Financial Reporting Standard IAS 20, paragraph 29.

NOTES TO SUMMARIZED CONSOLIDATED FINANCIAL STATEMENTSMARCH 31, 2014


Page 9ALL NATIONS TRUST COMPANYNOTES TO CONSOLIDATED FINANCIAL STATEMENTS - MARCH 31, 2014 (Continued)

2. OTHER INVESTMENTS

Other investments are comprised as follows:Ownership 2014 2013

B.C. First Nation Equity Fund Limited Partnership 33%Original investment $ 1,666,667 $ 1,666,667Accumulated earnings 40,887 31,887

Adjusted cost of investment 1,707,554 1,698,554B.C. First Nation Equity Fund Inc. 33% 100 100

Total investments $ 1,707,654 $ 1,698,654

The Company's wholly owned subsidiary, All Nations Investment Corporation ("ANIC"), has entered into alimited partnership agreement for the purpose of establishing a capital fund to assist B.C. First Nationindividuals, businesses and communities to pursue sustainable economic development opportunities in B.C.The investment is analyzed as follows:

Since inception ANIC's share of the Partnership earnings totals $31,887, which has been addedto the cost of the investment. As of March 31, 2014, ANIC has not drawn any of its share of theearnings from the Partnership.

ANIC, a wholly owned subsidiary of All Nations Development Corporation ("ANDEVCO"),acquired 1,666,667 partnership units of B.C. First Nation Equity Fund Limited Partnership("BCFNEF") at $1 per unit in exchange for a demand promissory note (Note 5) in the amount of$1,666,667.

ANDEVCO has subsequently loaned ANIC $291,667 from its Trustee #1 loan portfolio. Theloan is non-interest bearing, unsecured and has been eliminated in these financial statementsupon consolidation (Note 3).

ANIC subsequently used the funds received from ANDEVCO to settle $266,667 of thepromissory note payable to BCFNEF. The balance remaining payable to BCFNEF at March 31,2014 is $1,400,000 (Note 5).

The Company's wholly owned subsidiary, ANIC, has purchased 100 shares of B.C. First Nations EquityFund Inc. for $100. B.C. First Nation Equity Fund Inc. is the general partner of BCFNEF.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTSMARCH 31, 2014 (Continued)

19


3. LOANS RECEIVABLE

The Company's loans receivable are analyzed as follows:2014 2013

All Nations Trust Company $ 3,675,907 $ 4,352,870All Nations Development Corporation 4,739,500 5,573,574

$ 8,415,407 $ 9,926,444

(a) All Nations Trust Company's loans receivable are analyzed as follows:

2014 2013

Loans - general allowancesRecorded amount $ 3,659,424 $ 4,331,956Related allowance - -

3,659,424 4,331,956

Accrued interest receivableRecorded amount 16,483 20,914Related allowance - -

16,483 20,914

Total loans receivable $ 3,675,907 $ 4,352,870

The loan portfolio consisting of consumer mortgages are advanced on physical assets of land and building.The loans bear interest at fixed rates and vary based on All Nations Trust Company's Minimum LendingRate.




3. LOANS RECEIVABLE (Continued)

(b) All Nations Development Corporation's loans receivable are analyzed as follows:

AANDC B.C.Developmental Ministry of 2014 2013

Trustee #1 Trustee #2 Loan Fund Forests Total Total

Loans - specific allowancesLoans in arrears or default $ 53,641 $ 4,389 $ 156,494 $ 1,089 $ 215,613 $ 276,600Related allowance - - - (889) (889) (64,257)

53,641 4,389 156,494 200 214,724 212,343

Loans - general allowancesRecorded amount 2,714,754 722,097 1,389,516 17,839 4,844,206 5,658,366Related allowance (12,296) (14,530) (30,920) (396) (58,142) (71,755)

2,702,458 707,567 1,358,596 17,443 4,786,064 5,586,611

Accrued interest receivableRecorded amount 17,636 4,176 8,425 142 30,379 43,942Related allowance - - - - - (2,655)

17,636 4,176 8,425 142 30,379 41,287

2,773,735 716,132 1,523,515 17,785 5,031,167 5,840,241Inter-company loans

eliminated on consolidation (291,667) - - - (291,667) (266,667)

Total loans receivable $ 2,482,068 $ 716,132 $ 1,523,515 $ 17,785 $ 4,739,500 $ 5,573,574

Cash balance $ 2,490,002 $ 1,716,483 $ 498,574 $ 435,481 $ 5,140,540 $ 3,957,056

Net assets of loan funds $ 5,279,726 $ 2,432,629 $ 2,010,406 $ 453,029 $ 10,175,790 $ 9,818,657

The Company's loans are for fixed terms ranging from one to five years and bear interest at fixed ratesranging from 6% to 11% per annum. Specific loans are secured with specific assets, personal, band orcorporate guarantees and British Columbia Government First Citizens Fund Loan Program loan forgivenessand guarantees. A general allowance of 2% is recorded on these loans. Residential mortgages are insured byCanada Mortgage and Housing Corporation ("CMHC") and, if the borrower qualifies, a MinisterialGuarantee from the Minister of Aboriginal Affairs and Northern Development Canada; consequently, nogeneral allowance is recorded on these loans.

The British Columbia First Citizens Fund provides loan forgiveness and guarantees for 40% of the originalloan amount. For each 15% of principal repaid by the borrower, the provincial government contributes 10%of the original loan amount. If the borrower defaults on the loan, the balance remaining of the 40% isreleased by the provincial government.


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4. DEMAND LOANS

The Company's wholly owned subsidiary, 0966771 B.C. Ltd. (“0966771”) has two Non-Revolving Facilitieswith BMO with limits of $2,559,000 and $583,000 to finance the construction of the Company's newbuilding. During the construction phase, the facilities are interest only, due on demand and bear interest atthe bank’s prime lending rate plus 0.50% per annum payable monthly. Upon completion of the construction,the Company has the option to repay the loans partially or in full, with the balance repayable in blendedmonthly payments amortized over a period of 20 years, with interest rates to be determined at the time ofconversion.

These loans are secured by a guarantee of indebtedness executed by All Nations Trust Company and AllNations Development Corporation and first mortgage of sub-lease and assignment of rents and leases overthe building.

0966771 is required to meet certain lending covenants set out in the bank agreement. As of March 31, 20140966771 was in compliance with these covenants.

5. PROMISSORY NOTE

The promissory note is payable to B.C. First Nation Equity Fund Limited Partnership from ANIC. The noteis non-interest bearing, unsecured and due on demand (Note 2). The note will be settled with funds from theTrustee #1 loan portfolio. As the note payable is due on demand, the amortized cost approximates thesettlement amount.

6. DEFERRED CONTRIBUTIONS

On March 28, 2013, the Company contracted with Aboriginal Affairs and Northern Development Canada("AANDC") to provide non-repayable contributions to eligible Aboriginal businesses. As of March 31, 2014the Company had received $2,300,000 from AANDC. During the year, the Company distributed $1,709,701(2013 - $Nil). At March 31, 2014, amounts not distributed have been deferred.

7. NEDC CUSTODIAL TRUST AGREEMENT

The Company has entered into an agreement with Nuu-Chah-Nulth Economic Development Corporation("NEDC") to fund mortgages administered by the Company. Principal repayments to NEDC are due withinone month of receipt of the related scheduled mortgage repayment. Any proceeds received from CMHC orthe Minister of Aboriginal Affairs and Northern Development Canada relating to mortgages funded underthis agreement which are in default are payable to NEDC upon receipt. At March 31, 2014, the principalportion of the loans outstanding is $510,876 (2013 - $362,246).




8. PEACE HILLS TRUST SYNDICATION AGREEMENT

The Company has entered into a syndication agreement with Peace Hills Trust to fund mortgagesadministered by the Company, whereby the Company retains 0.5% of the interest earned. Principal and theremaining interest repayments are remitted to Peace Hills Trust by the 15th of each month following therelated scheduled mortgage repayment. Any proceeds received from the borrower, guarantor or the Ministerof Aboriginal Affairs and Northern Development Canada relating to mortgages funded under this agreementwhich are in default are payable to Peace Hills Trust upon receipt. At March 31, 2014, the principal portionof the loans outstanding is $1,201,902 (2013 - $870,643).

9. CONTRIBUTED SURPLUS

The Company's contribution agreement of $6,750,000 with the Government of Canada under the NativeEconomic Development Program of July 1, 1987 concluded on July 1, 1997. Having complied with theterms of the contribution agreement, the funds reverted to the Company. The funds consisted of $4,000,000for Aboriginal Developmental Lending (Nature of Operations, page 9) and $2,750,000 to invest in shares ofAll Nations Trust Company. The shares were subsequently redeemed at a loss of $2,749,725. The$4,000,000 for Aboriginal Development Lending has been advanced through a trust agreement referred to asthe 1997 Trust for further development lending (Trustee #1).

A second contribution agreement of $2,000,000 with the Government of Canada under the Department ofIndustry Aboriginal Business Canada of September 1995 concluded in the fiscal year ended March 31, 2008.Having complied with the terms of the contribution agreement, the funds reverted to the Company (Trustee#2).

Class A common shares from treasury stock were issued for $70 during the year ended March 31, 2002.

The Company's share capital was increased by $532,010 as a result of the class D preferred share beingexchanged for class A common shares during the year ended March 31, 2011. In addition, $33,504 of legalfees were incurred in relation to this transaction.

The Company paid a $246,019 dividend from its contributed surplus out of the Trustee #1 loan portfolio inthe fiscal year-ended March 31, 2011.

In September 2012, the Company's agreement under the First Nations & Inuit Youth Business Programconcluded. The net funds contributed was $337,711. Having complied with the terms of the contributionagreement, the funds reverted to the Company.

On March 31, 2014, the Company's agreement with the Department of Aboriginal Affairs and NorthernDevelopment Canada concluded. Having complied with the terms of the contribution agreement, the fundsreverted to the Company (AANDC Developmental Loan Fund).


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10. GOVERNMENT CONTRIBUTIONS

2014 2013

AANDC Developmental Loan Fund $ - $ 2,000,000B.C. Ministry of Forests (formerly Forest Renewal B.C.) 297,500 297,500

$ 297,500 $ 2,297,500

(a) AANDC Developmental Loan Fund

In September 2008, the Company was advanced an additional $2,000,000 by the Department ofAboriginal Affairs and Northern Development Canada for the purpose of providing financial services toAboriginal businesses in B.C.

(b) B.C. Ministry of Forests

B.C. Ministry of Forests invested funds with the Company to advance Aboriginal forestry. Theagreement was both terminated and then extended as a result of the Province of B.C. wind up of theForest Renewal B.C. The Company is to continue reporting to the Ministry of Forests and manage thefunds with a 15% administration charge.


ANTCO 2014 Annual Report

Photo Credits: Melissa Mongrain

Pictographs: Clint George dba Iron Indian

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The CompanyIncorporated under the Company Act of British Columbia in December 1984 and registered as All Nations

Trust Company under the Trust Company Act of the Province of British Columbia in November 1987.ANTCO is owned by 208 Shareholders consisting of Bands, Tribal Councils, Aboriginal Businesses, Status,

Non Status and Metis individuals in the Common Bond Association.

Our VisionSelf-reliant Aboriginal people thriving in diverse economies.

Our MissionTo facilitate Aboriginal self-sufficiency through provision of financial and business services.

www.antco.bc.ca

All Nations Trust Company520 Chief Eli LaRue Way Kamloops, BC V2H 1H1

Telephone 778-471-4110Toll Free 1-800-663-2959Fax 250-372-2585Email: [email protected]

2014 Annual Report

Documents

2014 Annual Report - All Nations Trust Company · 2014 Annual Report. ... Gary Swite Vice President Executive Committee Loan Board Committee ... EXPANSIONS $488,577 X 15 0 5 10 15