Minutes of a Board of Directors Meeting

Minutes of a Board of Directors Meeting Held on 28 April 2020 via Zoom teleconference Prepared by Jim Cox, Acting Recording Secretary Reviewed by Denis Thompson, Acting Chair

BOD Meeting Minutes 29 April 2020 MINUTES OF A BOARD OF DIRECTORS MEETING Held 7:00 p.m. Tuesday 28 April 2020 Via Zoom Opening the meeting 1 Call to order The Chair called the meeting to order at 7:00 p.m. EST 2 Roll call Directors present: Jim Davis Don Denne Geordie Elms Anthony Jones Sandy McQuarrie Bob Near Rick Reid Denis Thompson Directors absent: Leo Boyd Jim Cox Jim Simms Participating (non-voting): John Mombourquette Tom Tarrant Hardy Wheeler 3 The Chair declared a quorum present. 4 Approval of agenda It was moved by Jim Davis, seconded by Rick Reid, that the agenda, attached as Annex A, be approved. Carried by consensus. 5 Approval of previous minutes (28 January 2020) It was moved by Geordie Elms, seconded by Anthony Jones, that the minutes of the previous Board meeting, held on 28 January 2020, be approved. Carried by consensus. Routine reports 6 Membership Secretary’s report The Membership Secretary report is attached as Annex B. It shows the overall Association membership to be 544. The names of membership applicants since 28 January 2020 are included in the report. It was moved by Sandy McQuarrie, seconded by Rick Reid that: Resolved that membership applications received since 28 January 2020 be approved. Carried by consensus. 2

BOD Meeting Minutes 29 April 2020 7 Recording Secretary’s report In the absence of Jim Cox, this item was presented by Denis Thompson. Detail was amended to include certification of the Kingston Branch. It was moved by the Bob Near, seconded by Anthony Jones, that: Resolved that the following branches, having duly submitted documentation required by Article 14.04 of By-Law No. 1, be certified: a. Ottawa Branch; b. Kingston Branch; c. Greater Toronto Branch; d. Home Station and London Branch; e. Windsor-Essex Branch; and f. CWO Bobby Girouard (Alberta) Branch. Carried by consensus. 8 Treasurer’s report The Treasurer’s financial report is attached as Annex C. It was moved by the Rick Reid, seconded by Don Denne that: Resolved that the 2020 1 quarter financial reports be approved. st Carried by consensus. The financial report is attached as Annex C. Treasurer presented the draft 2021 Budget. Some amendments were required, which were completed after the meeting. Projected membership income was reduced. The branch rebate amount was capped at $5K. Bookkeeping costs were eliminated. The donation of $1,000 to The RCR Museum was retained after discussion. A revised 2021 budget was distributed to Directors and secretarially approved by consensus. The Budget is attached as Annex D. 9 Standing Audit Committee report It was moved by Jim Davis, seconded by Anthony Jones, that: Resolved that the Standing Audit Committee report on the Association’s 2019 financial reports be approved. Carried by consensus. The report is attached as Annex E. 10 Standing Nominating Committee Report To correct an oversight, the names of Rick Reid, Jim Simms and Denis Thompson were added to the list of nominees. It was moved by Bob Near, seconded by Rick Reid, that: Resolved that the following list of nominees to stand for election as Directors at the 2020 AGM be approved and that this list be tabled for membership approval at the 2020 AGM: a. To serve until completion of the 2022 AGM: Eric Christensen, Mark Connolly, Rick Reid, Jim Simms, and Denis Thompson; and 3

BOD Meeting Minutes 29 April 2020 b. To serve until completion of the 2021 AGM: Leo Boyd; Jim Davis; Don Denne; Geordie Elms; Bob Near. Carried by consensus. 11 Honours and Awards Committee It was moved by Geordie Elms, seconded by Anthony Jones, that: Resolved that the applications to award Life Membership to Scotty Martin and Barry Graham be approved. Carried by consensus. 12 History and Heritage Committee report The RCR Museum 2019 Annual Report was previously distributed. 13 Assisting Royal Canadians in need report Discussion ensued. 14 2023 Reunion Planning Committee report Don Denne outlined the status of initial planning. Old business 15 Afghanistan Memorial update Denis Thompson provided a brief outline of the status of the Afghanistan Memorial project. 16 Enhancing Association communications tools (McQuarrie paper 21 Aug 19) Sandy McQuarrie provided a refresher on the main recommendations in his paper of August 2019. The Association has adopted the recommendation to utilize Zoom for its Board meetings. Discussion of other items ensued. New business 17 Approval of Home Station and London District Branch Patron It was moved by Don Denne, seconded by Rick Reid, that: Resolved that Scotty Martin be approved as the Home Station and London District Branch Patron for a period of five years. Carried unanimously. 18 2020 AGM The Chair outlined conduct of the virtual 2020 AGM, to be conducted in June 2020. 19 Points from the floor The Acting Chair announced the Board’s unanimous approval to award a Certificate of Merit to Sandy McQuarrie. All agreed it was a well-deserved award. The Acting Chair also recognized the long and valuable service of Jim MacInnis, to the Regiment and the Association. This will be Jim’s last meeting, before he leaves the Board in June. 4

BOD Meeting Minutes 29 April 2020 23 Next meeting A brief discussion ensued about the conduct of a Board meeting soon after the AGM, to elect a new Chair and Vice-Chair, and appoint Board Officers. 24 Adjournment It was moved by Sandy McQuarrie, seconded by Rick Reid, that the meeting be adjourned at 2020 p.m. Denis Thompson Acting Chair ANNEXES A. Agenda B. Membership Secretary Report C. 2019 Financial Reports D. 2021 Budget E. Standing Audit Committee Report 5

Annex A to BOD Minutes 28 April 2020 Agenda Opening the meeting 1 Call to order Chair 2 Roll call Recording Secretary 3 Establish quorum Chair 4 Approve agenda Chair Resolved that the agenda be approved 5 Approve previous minutes (28 January 2020) Chair Resolved that the minutes of the Board of Directors meeting held on 28 January 2020 be approved. Routine reports 6 Membership Secretary’s report Membership a. Association general Secretary b. By Branch c. Board approval of membership applications since the last meeting on 28 January 2020. Resolved that membership applications received since 28 January 2020 be approved. 7 Recording Secretary’s report Recording Resolved that the following branches, having duly Secretary submitted documentation required by Article 14.04 of By- Law No.1 be certified: a. Ottawa Branch; b. Greater Toronto Branch c. Home Station and London District Branch; d. Windsor-Essex Branch; and e. CWO Bobby Girouard (Alberta) Branch. 8 Treasurer’s report Treasurer a. 2020 1st quarter financial reports Resolved that the 2020 1st Quarter reports be approved. b. 2021 budget approval Resolved that the 2021 budget be approved and that it be tabled for membership approval at the 2020 AGM. 9 Standing Audit Committee Vice-Chair Resolved that the Standing Audit Committee report on the Association’s 2019 financial reports be approved. A1

BOD Meeting Minutes 29 April 2020 10 Standing Nominating Committee Vice-Chair a. List of nominees to stand for election as directors at the AGM Resolved that the following list of nominees to stand for election as Directors at the 2020 AGM be approved and that this list be tabled for membership approval at the 2020 AGM: a. To serve until the completion of the 2022 AGM: Eric Christensen, Mark Connelly b. To serve until the completion of the 2021 AGM: Leo Boyd, Jim Davis, Don Denne, Geordie Elms, Bob Near b. Candidates to be appointed Board Officer 11 Honours and Awards Committee Rick Reid Resolved that the applications to award Life Membership to Scotty Martin and Barry Graham be approved. 12 History and Heritage Committee Jim MacInnis 13 Assisting Royal Canadians in need Anthony Jones 14 2023 Reunion Planning Committee status report Don Denne Old business 15 Afghanistan Memorial Update Denis Thompson 16 Enhanced Association communication tools (McQuarrie paper Sandy 21 Aug 19) McQuarrie New business 17 Approval of Home Station and London District Branch Patron Don Denne Resolved that Scotty Martin be approved as the Home Station and London District Branch Patron for a period of five years. 18 2020 AGM conduct Chair 19 Points from the floor All 20 Next meeting Chair 21 Adjournment Chair 22 Post-meeting discussion (as desired) All Jim Cox Chair Board of Directors A2

BOD Meeting Minutes 29 April 2020 Annex B to BOD Minutes 28 April 2020 Membership Secretary Report Active 1. The Active membership numbers are: • Life ................................................................................ 11 • Regular(A) ................................................................... 130 • Regular(P) .................................................................... 403 • Total Membership ........................................................ 544 Branch Membership 2. Current Branch Strengths are: • Windsor Essex ................................................................. 9 • CWO Bobby Girouard .................................................... 20 • Nova Scotia ................................................................... 18 • 1000 Islands ................................................................... 6 • Kingston ........................................................................ 31 • Home Station London .................................................... 88 • Newfoundland ................................................................. 7 • Toronto (GTA) ................................................................ 18 • Ottawa and District ....................................................... 56 Membership Renewals / New Members 3. Regular(A) • New Registrations  Mel Bursey  Thomas Daigle  George Lafond  Robert Smith  Darwin Fremont  Cathy Cadue  Glen Friesen • Membership Renewals  Roger Berry  Marc Berube  Roger Denault  Danny Gallagher  Lee Heard B1

BOD Meeting Minutes 29 April 2020  Alex Lileikis  Dennis Thompson  Hardt Utech  Mark Andrews  Jeffery Dee  Lloyd Osmond  Jerry Robertson  Ronald Wray  Alexander Itenson  Susan Bowen 4. Regular(P)  David Bell  Keith Davis B2

BOD Meeting Minutes 29 April 2020 Annex C to BOD Minutes 28 April 2020 Financial Report Introduction 1. This report to the Association’s Board of Directors provides the required details necessary to permit Directors to undertake their fiduciary responsibilities. The report includes three parts: • Report of Financial Position; • Statement of Financial Operations; and • Year-to-Date Budget. 2. The details provided are for the period from 1 January to 15 April 2020. Background 3. For many years, the Association has struggled to provide financial reporting in a myriad of ways, supported by a variety of tracking means. These means varied between a less than ideal set of Excel workbooks/spreadsheets, a small commercial accounting package, and lately, a professional bookkeeping firm. None of these provided precisely the reports that were required. 4. During the same time, the Chair and the then Executive Director, developed and revised, the content and style of the reports yearly as they refined the requirements and the process. Current Methodology 5. I have developed an excel-based application to both manage and report on the Association’s financial affairs. This app uses a form with selected data titles designed to reduce potential mistakes during data entry to the supporting database and the associated reports. 6. The database automatically completes both the Statement of Financial Operations and the Year-to-Date Budget. Regrettably, the contents of the budget report have changed over the last few years in line with changes to the Association’s Strategic Plan, so it will be necessary to adapt this part of the app to the different budget layouts approved at the previous AGMs for the next few years. Description of the Association’s Financial Management App1 7. There are four spreadsheets in the workbook. 8. The first one, called “Home,” is the initial page that allows for data entry and links to the critical reports. If you click on the button “Data Entry Form,” you will see a form used to enter income and expenses. Note that there are drop-down selections for “Income,” “Expenses,” and “Entered By.” The choices in each one specifies and 1 This description is provided to ensure that future Treasurers are aware of the details of the app. C1

BOD Meeting Minutes 29 April 2020 limit the range of options describing the item. In the bottom half of the form is an overview of the entries. This part ensures that the listing is correct. The data come from three different sources – the bank statements, Member 365 financial reports, and Bambora reports (they handle all our credit card transactions). Note that is page also has the VBA code embedded and the form structure. 9. The second spreadsheet, called “Database,” is where the data goes when one saves the form. It serves to populate the remaining two spreadsheets automatically. There is a slight bit of manual entry required for the sums after each month. This sheet is also where reconciliation with the entries and with the bank statements occurs. 10. The third sheet, called “SOFO,” is the statement of financial operations. It provides an overview of both income and expenses as per the last entry. The key here is that the total income and expenses must match that shown on the bottom of the Database sheet. This report also provides the current bank balance on the bottom right. It matches the bank balance shown in the last entry in the database 11. The final sheet, called “Budget 2020,” provides a report on the year-to-date state of our income and expenditures against the approved budget. 12. This app intends to provide a structured and integrated way of managing and reporting on our finances. Future treasurers should be able to use it with very little instruction. Conclusion 13. Given that our financial reporting has been in considerable flux over several years, some stability would be ideal. 14. This report is submitted for approval. Pro Patria A.D. McQuarrie Treasurer C2

BOD Meeting Minutes 29 April 2020 STATEMENT OF FINANCIAL POSITION – 15 April 2020 ASSETS Bank Account Balance $12,815.46 Accounts Receivable Membership in Arrears $25.00 Assets Total $12,840.46 LIABILITIES AND NET ASSETS Current Liabilities Afghanistan Memorial Donations (Mar 2020) $145.67 Membership Rebates to Branches $3,100.00 Net Assets Net Bank Account Balance $9,569.79 Net Memberships Payable $25.00 Liabilities and Net Assets Total $12,840.46 C3

BOD Meeting Minutes 29 April 2020 STATEMENT OF FINANCIAL OPERATIONS Correct as of 15 Apr 2020 Bank Balance as of 1 Jan 2020 $12,601.80 Item Amount Notes INCOME Restricted Contributions RCR Association Education $0.00 Bursary Service and Assistance Fund $2,000.00 Grants RCR Association Operations Support Fund $15,000.00 Fees and Donations Regular(A) Fees $942.34 Regular(P) Fees $443.17 Donations $268.19 Bank Fees Rebate $14.85 Total Income $18,668.55 EXPENSES Promoting a Unified Regimental Spirit ROIC and RSNCOIC Support $0.00 Facilitate and Support Branch Activities Branch Membership Rebates $0.00 Branch Activities Support $0.00 Contribute to Regt Comms and Infrastructure Purchase and Distribute Pro Patria $0.00 Website License Fees $2,359.44 Zoom Meetings Annual Fee $0.00 Conduct Quinquennial Reunions C4

BOD Meeting Minutes 29 April 2020 Item Amount Notes Committee Travel and Support $0.00 Connect With All Royal Canadians Posters and Advertisements $0.00 Assist Royal Canadians in Need Adjudicate and Administer Association Bursary Program. Bursary Grants $0.00 Adjudicate and Administer the Service and Assistance Fund Service and Assistance Fund Grants $2,000.00 Establish and Maintain Liaison with Legitimate Veterans' Organizations Travel and Communications $0.00 Contribute to the Perpetuation of Regimental History, Heritage, Traditions and Values Celebrate Regimental Historical Events and Accomplishments Wreaths, Posters and Advertisements $0.00 Exercise Institutional Leadership Contribute to Regimental Governance and Management Mandated Travel to Attend Senate $0.00 Meetings Mandated Travel to Attend REC $0.00 Meetings Mandated Travel to Attend RCR Trust $0.00 Meetings Mandated Travel to Attend RCR $0.00 Museum Meetings Branch Visits Travel $1,111.71 Elect and Sustain an Effective Board of Directors Conduct Annual General Meeting $0.00 Conduct HAC Meeting $0.00 C5

BOD Meeting Minutes 29 April 2020 Item Amount Notes Directors' Insurance $0.00 Establish and Sustain an Effective Secretariat Bambora Service Fees (1) $0.00 Bank Fees $22.35 Transfer Membership Fees to The $11,530.83 This figure is the total of fees collected in Trust 2019 less the Bambora fees for credit card transaction Office Administration Printing $0.00 Office Supplies, Stamps, Etc. $23.47 Contingency $1,407.09 Legal fees of $559.59 and final payment to the Bookkeeping Bureau of $847.50 Promulgate and Implement a Fully Resourced 5-Year Strategic Plan Conduct Board Strategic Planning $0.00 Meeting Engage in Forward-Looking Development Planning Conduct Executive Planning Session $0.00 Total Expenses $18,454.89 SURPLUS/DEFICIT $213.66 Current Bank Balance $12,815.46 Notes (1) Not included in the statement are the Bambora fees. As they are deducted at source, including them here would distort the report and the bank balances. The actual costs were: • January $8.23 • February $13.43 • March $11.55 C6

BOD Meeting Minutes 29 April 2020 YTD Budget Report Correct as of 15 04 2020 Year to Item Budget (Over)/Under Date REVENUE RESTRICTED CONTRIBUTIONS RCR Association Education Bursary $10,000.00 $0.00 $10,000.00 Service and Assistance Fund $8,000.00 $2,000.00 $6,000.00 Purchase and distribute Pro Patria $4,500.00 $0.00 $4,500.00 (500 @ $5 plus mailing) Website annual license fee $2,400.00 $0.00 $2,400.00 Website support fee $500.00 $0.00 $500.00 Restricted Contributions Total $25,400.00 $2,000.00 $23,400.00 GRANTS RCR Association Support Fund $20,600.00 $15,000.00 $5,600.00 RCR Association Support Fund $20,600.00 $15,000.00 $5,600.00 Total FEES AND DONATIONS Regular membership (A) (250@$25) $6,250.00 $942.34 $5,307.66 Regular membership (P) (10@$225) $2,250.00 $443.17 $1,806.83 Donations and other $500.00 $268.19 $231.81 Fees and Donations Total $9,000.00 $1,653.70 $7,346.30 REVENUE TOTAL $55,000.00 $18,653.70 $30,746.30 EXPENDITURES RESTRICTED CONTRIBUTIONS EXPENDITURES RCR Association Education Bursary $10,000.00 $0.00 $10,000.00 Service and Assistance Fund $8,000.00 $2,000.00 $6,000.00 Purchase and distribute Pro Patria $4,500.00 $0.00 $4,500.00 (500 @ $5 plus mailing) C7

BOD Meeting Minutes 29 April 2020 Year to Item Budget (Over)/Under Date Website annual license fee $2,400.00 $2,359.44 $40.56 Website support fee $500.00 $0.00 $500.00 Restricted Contributions Expenditures Total $25,400.00 $4,359.44 $21,040.56 PROMOTING A UNIFIED REGIMENTAL SPIRIT Mandated travel to branches $1,000.00 $1,111.71 ($111.71) Branch membership rebates (300 @ $10) $3,000.00 $0.00 $3,000.00 Support to ROIC and RSNCOIC $1,000.00 $0.00 $1,000.00 Promoting a Unified Regimental Spirit Total $5,000.00 $1,111.71 $3,888.29 ASSIST ROYAL CANADIANS IN NEED Establish and maintaining liaison $500.00 $0.00 $500.00 with legitimate veterans' organizations Assist Royal Canadians in Need $500.00 $0.00 $500.00 Total CONTRIBUTE TO THE PERPETUATION OF REGIMENTAL HISTORY, HERITAGE, TRADITIONS AND VALUES Celebrate regimental historic events $1,000.00 $0.00 $1,000.00 and accomplishments Recognize and remember our fallen $1,000.00 $0.00 $1,000.00 Contribute to the sustainment of the $1,000.00 $0.00 $1,000.00 Regimental Museum Contribute to the perpetuation of regimental history, heritage, $3,000.00 $0.00 $3,000.00 traditions and values Total EXERCISE INSTITUTIONAL LEADERSHIP Contribute to regimental governance and management Conduct AGM $1,200.00 $0.00 $1,200.00 Deposit membership fees in the Trust $8,500.00 $11,530.83 ($3,030.83) Mandated travel to attend Senate $230.00 $0.00 $230.00 meetings C8

BOD Meeting Minutes 29 April 2020 Year to Item Budget (Over)/Under Date Mandated travel to attend REC meetings $230.00 $0.00 $230.00 Mandated travel to attend RCR Trust meetings $300.00 $0.00 $300.00 Mandated travel to attend RCR $400.00 $0.00 $400.00 Museum meetings Promulgate and comply with approved by-laws Legal fees and disbursements $1,500.00 $559.59 $940.41 Elect and sustain an effective Board of Directors Conduct Board of Directors meetings $400.00 $0.00 $400.00 Directors' insurance $750.00 $0.00 $750.00 Establish and sustain an effective Executive Secretariat Executive Secretariat operations $300.00 $300.00 Bookkeeping services $4,000.00 $847.50 $3,152.50 Bambora Service fees $340.00 $340.00 Equipment rental $500.00 $0.00 $500.00 Hardware purchases $300.00 $0.00 $300.00 Printing $400.00 $0.00 $400.00 Office Supplies, Stamps, etc. $150.00 $23.47 $126.53 Executive Secretariat contingency $300.00 $0.00 $300.00 Develop and maintain Associations communications infrastructure Promulgate and implement a fully resourced 5-year strategic plan Conduct planning session $1,000.00 $0.00 $1,000.00 Engage in forward-looking development planning Conduct Honorary Advisory Council Meeting $300.00 $0.00 $300.00 Exercise Institutional Stewardship Total $21,100.00 $12,961.39 $8,138.61 TOTAL EXPENDITURES $55,000.00 $18,432.54 $36,567.46 C9

BOD Meeting Minutes 29 April 2020 Annex D to BOD Minutes 28 April 2020 The RCR Association’s 2021 Budget Item Amount INCOME RESTRICTED CONTRIBUTIONS RCR Association Education Bursary $12,000.00 Service and Assistance Fund $6,000.00 Restricted Contributions Total $18,000.00 GRANTS RCR Association Support Fund $29,410.00 Grants Total $29,410.00 FEES AND DONATIONS Regular membership (A) (150@$25) (Note 1) $3,750.00 Regular membership (P) (10@$225) $2,250.00 Donations and other $200.00 Fees and Donations Total $6,200.00 INCOME TOTAL $53,610.00 EXPENSES PROMOTING A UNIFIED REGIMENTAL SPIRIT Facilitate and Support Branch Activities Branch membership rebates ($10 per registered member) $3,000.00 Branch activities support $1,000.00 Support to ROIC and RSNCOIC $1,000.00 Facilitate and Support Branch Activities Total $5,000.00 Contribute to Enhancement of Regimental Communications and Infrastructure Purchase and Distribute Pro Patria $6,500.00 Website License Fees $2,400.00 Contribute to Enhancement of Regimental Communications and $8,900.00 Infrastructure Total Conduct Quinquennial Reunions Committee Travel and Support $1,000.00 Conduct Quinquennial Reunions Total $1,000.00 Connect with all Royal Canadians Advertisement and Posters $1,000.00 Connect with all Royal Canadians Totals $1,000.00 Promoting a Unified Regimental Spirit Total $15,900.00 D1

BOD Meeting Minutes 29 April 2020 ASSIST ROYAL CANADIANS IN NEED Adjudicate and Administer the Association Bursary Program Bursary Grants $12,000.00 Adjudicate and Administer the Service and Assistance Fund Service and Assistance Fund Grants $6,000.00 Establish and Maintain Liaison with Legitimate Veterans' Organizations Travel and communications $500.00 Assist Royal Canadians in Need Total $18,500.00 CONTRIBUTE TO THE PERPETUATION OF REGIMENTAL HISTORY, HERITAGE, TRADITIONS AND VALUES Celebrate Regimental Historic Events and Accomplishments Wreaths, Posters and Advertisements $600.00 Contribute to the Sustainment of the Regimental Museum Annual Grant (Note 2) $1,000.00 Contribute to the Perpetuation of Regimental History, Heritage, $1,600.00 Traditions and Values Total EXERCISE INSTITUTIONAL LEADERSHIP Contribute to Regimental Governance and Management Mandated travel to attend Senate meetings $300.00 Mandated travel to attend REC meetings $300.00 Mandated travel to attend RCR Trust meetings $200.00 Mandated travel to attend RCR Museum meetings $400.00 Branch Visits Travel $600.00 Contribute to Regimental Governance and Management Total $1,800.00 Elect and Sustain an Effective Board of Directors Conduct Annual General Meeting (Note 3) $5,000.00 Conduct Honorary Advisory Council Meeting $300.00 Directors' Insurance $750.00 Zoom Meeting Annual Fee $200.00 Elect and Sustain an Effective Board of Directors Total $6,250.00 Establish and sustain an effective Executive Secretariat Fees Bambora Service Fees $600.00 Bank Fees $60.00 Transfer Membership Fees to The Trust Note 4) $6,000.00 Fees Total $6,660.00 Office Administration Printing $400.00 Office Supplies, Stamps, etc. (Note 5) $200.00 Contingency $300.00 Office Administration Total $900.00 D2

BOD Meeting Minutes 29 April 2020 Promulgate and implement a fully resourced 5-year strategic plan Conduct Board of Directors Strategic Planning Meeting (Note 6) $1,700.00 Engage in forward-looking development planning Conduct Executive Planning Session $300.00 Exercise Institutional Stewardship Total $17,610.00 EXPENDITURES TOTAL $53,610.00 BALANCE $0.00 Notes 1. Number of Regular(A) renewals reduce to 150 from 200 on advice of membership secretary 2. Grant to Museum to remain based on comments from John Mombourquette 3. AGM allocation reduced by $1000 4. Transfer amount reduce to match expected membership revenue 5. Office supplies reduce from $350 6. Amount increased from $1,550 to $1,700 D3

BOD Meeting Minutes 29 April 2020 Annex E to BOD Minutes 28 April 2020 STANDING AUDIT COMMITTEE REPORT The Standing Audit Committee has reviewed the 2019 end-year financial reports. The committee consists of myself and two independent persons (i.e. non-members of The RCR Association). The two independent members were: • Mr. Marc Perron – former VP of Pepsico France and currently a CFP with Peak Financial • Col (ret’d) Dave Erickson – former Army Finance Officer with extensive experience in public and non-public funds These two gentlemen were given the following background and instructions in order to launch their review. QUOTE The RCR Association is considered one of four components of the Regiment. Each component is governed by different legal frameworks as follows: • The serving component (currently enrolled members of The RCR) is subject to the NDA • The RCR Museum (located in London, ON) is subject to federal, provincial and municipal regulations • The RCR Trust (approximately $7M+ in assets) is a registered charity • The RCR Association (500+ mostly retired Royal Canadians) is registered as a Federally incorporated Non-Profit Organization (NPO) The focus of the Board’s Audit Committee is to review the finances of The RCR Association, which has a strategic plan with the purpose of “preserving the bonds of comradeship among Royal Canadians” along four lines of operation: • Promote a unified regimental spirit • Assist Royal Canadians in need • Contribute to Regimental history and heritage • Exercise institutional stewardship The RCR Association is a non-soliciting NPO as it does not receive any public funds (definition at https://www.ic.gc.ca/eic/site/cd-dgc.nsf/eng/cs05011.html). Further, since the gross annual revenues are less than $1 million a public accountant (PA) is not required to conduct the annual financial review. Thus, neither an audit nor a review engagement is required (seehttps://www.ic.gc.ca/eic/site/cd- dgc.nsf/eng/cs05010.html#toc2). For The RCR Association, only a compilation is required, which is what is provided in the attachments. A compilation is described as “the process by which unaudited financial information is compiled to produce financial statements that are based on information provided by the organization. A compilation does not provide any assurances as to the accuracy or veracity of the financial statements since there has been no audit or review E1

BOD Meeting Minutes 29 April 2020 engagement done. The NFP Act does not require a public accountant (PA) to produce a compilation, although the financial statements must be prepared in accordance with the Canadian generally accepted accounting principles (GAAP) as set out in the Canadian Institute of Chartered Accountants Handbook.” Thus, our task on the Audit Committee is to review the 2019 End Year Financial Report (the compilation, if you will), which is attached and composed of: • 2019 Statement of Financial Position (formerly the Balance Sheet) – see 4Q_AllReps_SFP_200121.pdf • 2019 Statement of Financial Operations – see 4Q_AllReps_SFO_200121.pdf • 2019 End-Year Budget Status – see 4Q_AllReps_YTD_200121.pdf Our review is understood to offer no assurance to the Association other than an independent set of eyes that has reviewed the Treasurer’s work. Neither of you are liable for offering your opinion, however, as you are independent there is an element of assurance to the members of the Association that the work has been completed and determined to be believable and plausible. The 2019 Statement of Financial Position (formerly the Balance Sheet) is very brief reflecting our lack of tangible assets. The 2019 Statement of Financial Operations has again broken revenues and expenditures into two broad categories (Restricted amounts – formerly “pass through” monies – and other funds). The three Restricted amounts are the Bursary Program (six $2,000 scholarships), the grant required to pay for our annual regimental magazine Pro Patria ($6,313) and money collected for an Afghanistan Memorial on behalf of the Regiment ($22,745). Finally, there is the 2019 End-Year Budget Status, which should be self-explanatory and aligns with the 2019 Statement of Financial Operations. This will, no doubt, be the focus of many members at the AGM and so requires your review as well. There are two items of note. First, while the Service and Assistance Fund had $6,000 budgeted in 2019, it was not called upon as there were no cases in 2019 (although we have already had one in 2020). Thus, none of that money was drawn from The RCR Trust. Second, as mentioned you will note that this year the Association collected money for an Afghanistan Memorial on behalf of the Regiment as another Restricted donation. The difference in the collected and expended amounts occurs because the donations collected in December were still in the bank account at the end of the year before being transferred to the Trust in January 2020 (see Statement of Financial Position). I’m hoping it will not take too much of your time to review these documents. All we need to determine is whether or not the work is believable and plausible. Should you have a concern, you can ask for details on any specific aspect as the full unabridged Statement of Financial Operations (basically the bank account activity) could be made available. All of this can be done via email. If necessary, we can quiz the Chair/Treasurer in a teleconference to provide further clarity on any element that may seem out of place. I’m hoping you can give this your attention and get back to me by the end of the month as our next Board meeting is in April and I’ll need to distribute your thoughts in advance of the meeting. UNQUOTE E2

BOD Meeting Minutes 29 April 2020 After the Committee’s review, they found that the reports link together properly from one statement to the other. Some minor adjustments in nomenclature were suggested and incorporated. After a second quick look by this pair, they found the compilation to believable and plausible. For future reference, Sandy has put together The RCR Association Financial Management App, which uses the reporting mechanism with which our two independent reviewers are both comfortable. For consideration by the Board and subsequently the membership at the AGM. Denis Thompson Vice-Chair, The RCR Association E3