AFOA-AB AR 2018-19-web

annrueapolrt 2018-2019

Once again, the Aboriginal Financial Officers Association of Alberta wishes to acknowledge the very important role of Indigenous Services Canada (ISC) in support of many of the programs delivered to First Nations and Aboriginal organizations in Alberta. In addition, we wish to thank our sponsors for their support of our Indigenous Learners Gathering and our CAFM program.

TABLE OF CONTENTS 2 Message from the Executive Director 4 Governance & Management 5 AFOA Alberta Overview 8 2018-19 Initiatives & Programs 10 2019-20 Planned Initiatives 12 Results & Analysis 13 Financial Statements afoa alberta annual report 2018-2019

message from the EXECUTDIIRVECETOR 2 afoa alberta annual report 2017-2018

It is with pleasure I can report another very successful year for our organization. 3 We have continued to advance managerial skills in the First Nation communities, and we continue to grow our connections with post-secondary institutions making management education more accessible for our community members. We were delighted to enter into a five-year memorandum of agreement with Athabasca University to offer the Bachelor of Commerce degree, based on an approach developed by AFOA Alberta. The approach combines in-person instruction with online activities; it marries the best of both methods. Our partnership with Athabasca University allows our business scholars to develop personal supports and professional networks while leveraging the remote learning of the online components. This enables our learners to work on their degree programs without leaving their communities. AFOA Alberta also provides a mentor and advocate to support the learners. The mentor is active in bridging the learners’ needs with the instructor; the mentor enhances the cultural exchange between the learners and the instructor resulting in a rich exchange of understanding. The outcome of this unique initiative is the creation of a safe culturally sensitive learning environment that is incorporated into the rigorous program offered by Athabasca University. It is hoped this will bring longer-term value to the relationship, as the instructors gain cultural competency and get a deeper understanding of the factors that improve successful outcomes in post-secondary programs. I need to acknowledge the role of the CPA Education Foundation, which supported this initiative through the No-Limits program. Funding was received to conduct a review of the factors that help and hinder Indigenous learners in their pursuit of advanced education. Also, our learning center, which opened in January of 2019, has enabled us to offer programming at a reduced cost. As a consequence, we have been able to expand our programming. The new learning center provides both cost-savings and increased flexibility and is directly related to our strategic initiatives. The new learning center is also the location of our collaboration to offer a Bachelor of Commerce degree with Athabasca University. We have continued to support community members through our workshops providing relevant and timely instruction to those who support their First Nations and Indigenous organizations. Kindest regards, Robert Andrews MBA, CPA, CMA, CAFM Executive Director, AFOA Alberta 3

GOVERNANCE & MANAGEMENT The Board of Directors governs and oversees the operation of the Aboriginal Financial Officers Association of Alberta. The volunteer directors are elected to three- year terms. AFOA Alberta is managed by Robert Andrews with the support of Randa Wright. The head office is located in the Siksika Nation. The learning center is located on Enoch Cree First Nation. Executive Gerald Whitford President, and Chairperson Charlene Bruno B. Com, ICD. D, Vice President Michael Zubach CA, CPA, CAFM, Treasurer Edwina Stump Secretary Directors Norm Brennand CAFM Jessica Dorion CAFM, Chairperson, National Chapter Brian Hjlesvold PAED Rhonda Lizotte Trina Mineault CPA, CA Ankit Rana CPA, CA Jacqueline Russell CAFM Randal Spohn CPA, CA Dorothy Simon CAFM Vicki Yellow Old Woman BA Management & Staff Robert Andrews MBA, CPA, CMA, CAFM, Executive Director Randa Wright Operations Coordinator 4 afoa alberta annual report 2017-2018

AFOA ALBERTA OVERVIEW The Aboriginal Financial Officers Association of Alberta (AFOA Alberta) is an association committed to the development of financial, accounting, management, and governance capacity for First Nation and Aboriginal organizations. The association provides professional development and training in finance, accounting, management, and governance to AFOA Alberta members, First Nation administrators, and leadership and the public who work with First Nation and Aboriginal organizations. The association also strives to encourage members to pursue the Certified Aboriginal Financial Manager certification (CAFM), a designation designed, in part, with the Chartered Professional Accountants Canada. The association brings together professionals from a variety of backgrounds to train, coach and mentor members, thereby developing their skills and assisting members in the development of their governance capacity for Aboriginal populations and its capacity to perform essential functions in First Nations’ governments and organizations. The organization is incorporated under the Societies Act, and its activities are overseen by a Board of Directors. Its day to day operations are managed by the Executive Director. The organization has one additional staff member. The Association’s programming includes: Workshops and Forums addressing specific management requirements and community issues such as good governance, capacity, and management development. Seminars focused training sessions designed for administrators, Chief and Council, and First Nations public service. Conferences addressing best practices in governance, providing a forum for changes in the accounting, regulatory environment. Partnership Programs designed to accelerate the completion of the CAFM and baccalaureate programs in business, through partnerships with post-secondary institutions. 5

Background of AFOA Alberta The association has been operating for 16 years. The membership on March 31, 2019, was 236 members, including 175 regular members, 57 CAFM members, and four student and retiree members. These members are representative of all treaty areas, public accounting firms, and government departments and agencies serving First Nations and aboriginal populations. Extensive programming has resulted in instruction in fundaments of finance, accounting, management and governance. Many tools have also been developed to develop capacity within aboriginal organizations. Tools include workbooks and workshops in personal financial literacy, governance and management assessment tool and structured problem-solving. The organization has established links with the accounting and auditing community and is addressing a critical role in identifying and addressing challenges with the First Nations communities. The organization has started building connections with Alberta post-secondary institutions to create pathways for First Nation members to achieve their CAFM designation. These programs are our bridge programs, which include sessions on campus to encourage independent learning. Our current enrollment in the Bachelor of Commerce program is approximately forty learners. The organization has also partnered with the Chartered Professional Accountants Society of Alberta, CPA Education Foundation to increase indigenous representation in accounting and management- through the No Limits initiative. The organization, as noted, has entered into a five-year agreement with Athabasca University to offer the Bachelor of Commerce program collaboratively. AFOA Alberta is also working with the university to enhance its Indigenous major. Community Driven & Progressive The organization recognizes the need to develop capacity within First Nations, and that ongoing training is essential to develop skills, improve capacity in governance and management, and one effective approach is to continue to offer instruction at many skill levels. In addition, education is complimentary and progressive; that is instruction builds on past courses. The organization believes that effective training can be developed and offered at the grassroots level – an approach reflected in the programming of AFOA Alberta. Feedback 6 is gathered from all sessions and this feedback is directly incorporated into future programming. Careful attention is paid to problematic areas and programs are developed to address these challenges. These areas are also linked with the position-specific competency maps - directly linking skills with positions in management and finance. AFOA Alberta has also created a management program for mid and senior-level public administrators and managers. This program will be entering its 5th year. Alberta-Wide Membership The membership includes First Nation participants from all treaty areas. Events include strong levels of participation from Treaty, 6, 7, and 8. Membership also includes many organizations that provide services to the Aboriginal and First Nations Communities. Five-Year Strategic Goals The strategic plan drives the current and future year’s initiatives. Each initiative furthers the achievement of AFOA Alberta’s strategic plan and objectives. The 2016-2020 AFOA Alberta business plan has five strategic goals and associated activities: 1 Develop a sustainable organizational model and improve self-sufficiency. 2 Increase First Nation and Aboriginal participation in certification and professional development and further enhance capacity through expanded programs and a broader market focus. 3 Implement a credible and reliable process to understand the outcomes and impacts of our programming and to communicate the same. 4 Implement an effective marketing strategy, emphasizing the scope, depth, and breadth of the training while ensuring the content is reflective of the needs of the communities we serve. 5 Improve the overall quality of programming through accreditation by partnering with post-secondary institutions and provincial regulators. 6

AFOA ALBERTA 7 OVERVIEW The organization is committed to meeting its strategic goals by offering programming that meets the needs of First Nation communities and is congruent with the organization’s strategic directions. The fiscal year 2018-2019 activities support these strategic objectives. 1 We have completed the learning center on Enoch Cree Nation. This learning center provides two training spaces and will be optimized for distance learning, to improve the reach of our credit and non-credit programs and reduce costs, while improving scheduling flexibility. 2 Continued participation in the Management Essential Program. This program saw an uptake in various First Nation communities and continues to be supported by ISC. In addition, through the collaboration with Athabasca University, new offerings are being developed, that will be offered for full credit. Additional laddering programs are being designed. 3 Executive Director completed a Graduate Certificate in Evaluation as part of the education requirement for certification as a credentialed evaluator to support course evaluation. A credential evaluator was engaged to review the outcomes associated with our Management Essentials program with results expected in the new fiscal year. Evaluation of programming will be built into the various programs offered to ensure value for money and effectiveness; formative assessment will be completed on existing programs in the upcoming year 4 Marketing has expanded, and Athabasca University has been leveraged to increase the reach of the promotion of our degree offering. 5 A five-year agreement was entered into with Athabasca University to offer the Bachelor of Commerce program collaboratively, and associated laddering certificate programs, as developed. The Indigenous Learners gathering brought students, academics, and administrators together to increase understanding and improve outcomes of Indigenous post-secondary learners. afoa alberta annual report 2017-2018

2nd Indigenous Learners Gathering 2018 Grey Eagle Resort & Casino, Tsuu T’ina Nation, AB, November 2 and 3, 2018. This was a unique gathering of ninety-four participants, comprised of indigenous learners, post- secondary institution instructors, and administrators, who came together to learn, share and understand collectively, addressing current challenges faced in First Nation communities through discussions, lectures, and case studies. The participants from all disciplines formed teams to address the challenges presented in case studies and then had the opportunity to share with other groups within the program. Post-secondary instructors had the opportunity to participate in focus groups, discussions and indigenous cultural celebrations, as well as highlight their Indigenous support programs, centers and scholarships. This was offered in partnership with CPA Education Foundation. 2018-2019 INITAIANDTPIVROEGSRAMS 8 afoa alberta annual report 2017-2018

16th Annual General Meeting and Governance Conference Enoch Cree Nation, December 11 and 12, 2018. The AGM and Governance Conference is the capstone event for AFOA Alberta. This conference included topical matters in ten-year grants, best practices governance, and associated risks and compliance as well as comprehensive community planning. Fifty-eight participated in this event. Introduction to Accounting Fundamentals Workshop – Non-credit AFOA Alberta Learning Centre, November 5-8, 2018. The workshop provided twenty participants with a comprehensive overview of introductory accounting, including generally accepted accounting principles, transaction classification and analysis, completion of financial statements and basics of net present value calculations. This course is used as an entry path for further studies in accounting at a post-secondary level and as an entry point into the CAFM designation. The course utilized material developed by the Smith School of Business, Queen’s University. CAFM/CPA Bridge Program – Credit Course AFOA Alberta Learning Centre, the program ran from September 14 to December 9, 2018, and was divided into block sessions, once per month, for 3-6 months. Forty-three participants continued in the successful CAFM accounting bridge program, which includes Marketing and Business Math and built on the prior credit accounting, business law, and business communication bridge programs. The CAFM bridge program was created through a partnership with post-secondary institutions to accelerate participants through a university-level credit program that was part of the CAFM/CPA program. This program is part of a full credit eight-course aboriginal management certificate that can be used in the CAFM Associate Certificate as well as the Bachelor of Management degree. First Nation & Aboriginal Organization Technical Skills Workshop Completed October 19, 2018 The three-day event (with two sessions planned) was held in Edmonton. The Technical Skills workshop focused on instruction on core competencies identified as necessary for key management and finance accounting positions. Twenty-nine participants attended small, focused groups, emphasizing hands-on exercises, demonstration, and instruction in the construction of templates and other management tools. First Nation and Aboriginal Organization General Management Workshop Completed January 31, 2019 Eleven participants attended the four-day workshops from January 28-31, 2019, either by two sessions of two days, or one of 4 days, held in the AFOA Alberta Learning Center located in Enoch. The Technical Skills workshop focused on core competencies in general management skills associated with accounting, finance and management, as well as overall skills identified as necessary in critical public service positions. afoa First Nation Professionalism and Ethics Workshop Fifteen participants attended this workshop held October 4th, 2018, and November 15, 2018, at AFOA AB – Alberta Learning Center in Edmonton. The Leadership and Group Dynamics workshop focused on instruction on core competencies identified as necessary for crucial management and finance accounting positions, this year’s focus was on strategic planning. The format for the workshops were small, faoclubseed rgrtouapsa, emn pnhuasaizilngrhaendp so-orn etxe2rc0ise1 s7, d-e2m0on1st8ration, and instruction in the construction of templates and other management processes. The two sessions focused on developing a strategic plan for Aitsi’poyiiski Committee (Blood Tribe Elders Committee). Governance and Chief and Council Workshop Retreat Completed February 27, 2019 A two-day retreat, open to the Chiefs and Councillors of First Nations, as well as Boards of Directors of Aboriginal Organizations or senior leadership (Band Managers, CEOs). Twelve participants developed further capacity in issues relating to governance, including roles and responsibilities, segregations of duties, oversight roles and responsibilities, long term planning, and other essential skills identified or to address specific issues or concerns raised by elected officials. Social Program Management Essentials Training Program 11 participants, total of eight four day modules, beginning in June 2018 – ending in May of 2019, included leading staff and professional ethics, problem-solving and decision making, budgeting and planning, managing resources and performance measurements, performance management, and appraisals, financial accounting and reporting, communication – lateral violence and conflict resolution, and change management. 9

Focused Programming based on Essential Competencies We will continue to focus on competencies based on technical knowledge, general management, leadership, group dynamics, professionalism, and ethics. We will also work to deliver the accounting fundamentals program to Boards and leadership. The workshops will be hands- on, small group sessions to encourage participation and interaction between facilitators and participants. The focus will not solely be on teaching management competencies but will include skills retention and the application of these skills in our members’ communities. Plan201n9-2e0d20 INITIATIVES 10 a f o a a l b e r t a a n n u a l r e p o r t 2 0 1 7 - 2 0 1 8

17th Annual AGM and Governance Conference The Annual General Meeting and Governance Conference is the 11 capstone event for AFOA Alberta and will be held in conjunction with a 2-day governance conference that will be held in Enoch, Alberta, in the latter part of 2019. The 2-day conference will bring an expected 100 participants together. The scope will include topical matters in personal financial literacy, best practices in management and governance, changes in the accounting and regulatory environment. Sessions will be organized around the four core streams, technical skills, general management, team leadership, and group dynamics and professionalism and ethics, based on the First Nations Competencies. Also, ISC shall have the opportunity to present information on essential changes in the reporting and regulatory environment. Management and Learning Symposium The multi-day event will be held during September 2019 and for this year, shall be a 3rd Indigenous Learners Gathering. Our goal is 100 participants total over flexibility days (or 50 participants over four days). This new program will offer greater flexibility to meet the needs of the community and evolving needs in the regulatory and legal environment. Moreover, it permits the organization to build on new partnerships and collaborations. This is in partnership with CPA Education Foundation. Introduction to Accounting – Non-Credit The four-day workshop will be conducted in the fiscal year 2019-2020. The session will be held once during the fiscal year. The introduction will provide participants with a comprehensive overview of introductory accounting, including generally accepted accounting principles, transaction classification and analysis, completion of financial statements and basics of NPV calculations. The course will be used as an entry path into the CAFM bridge program. The course utilizes material developed by the Smith School of Business, Queen’s University. CAFM Bridge Program – Credit – CPA/Management Stream This program is a continuation of the successful CAFM Bridge Program, including Accounting, Business Law, and Business Communication. The CAFM bridge program is created through a partnership with post-secondary institutions to accelerate participants through a university-level credit program that is part of the CAFM/CPA program or the newly expanded program into a baccalaureate degree in management. Introduction to Marketing will be offered. First Nation & Aboriginal Organization Technical Skills Workshop The three-day event (with two sessions planned) will be held in Enoch. The Technical Skills workshop will focus on instruction on core competencies identified as necessary for key management and finance accounting positions. The topics will vary depending on interest. Prior events have focused on essential skills in Excel and budgeting basics. Also, new offerings included Basic Business Math. First Nation and Aboriginal Organization General Management Workshop This two-day General Management workshop will focus on instruction on core competencies identified as necessary for crucial management and finance accounting positions. The topics will vary depending on interest. Past sessions have included budgeting and planning, strategic planning, structured problem solving and change management and will bring together 50 participants from First Nations and First Nation organizations. First Nation and Aboriginal Organization Leadership & Group Dynamics Workshop These events will be held during 2020 with 50 participants from First Nations and First Nation organizations. The Leadership and Group Dynamics workshop will focus on instruction on core competencies identified as necessary for key management and finance accounting positions. The topics will vary depending on interest. Past items have included effective communication and team building, as well as conflict resolution and mediation. One or more sessions shall be focused on leadership skills or learnings skills in the CAFM certificate program cohort. First Nation and Aboriginal Organization Professionalism and Ethics Workshop The two-day event will be held in Enoch during the 3rd quarter of 2019. The Professionalism and Ethics workshop will focus on instruction on core competencies identified as necessary for key management and finance accounting positions. The format for the workshops will be small, focused groups, emphasizing hands-on exercises, demonstration, and instruction in the construction of templates and other management tools. Governance and Chief and Council Workshop Retreat The two-day retreat will be completed late summer or early fall of 2019. The workshop shall be open to the Chiefs and Councilors of First Nations, as well as Boards of Directors of Aboriginal Organizations or senior leadership (Band Managers, CEOs). The primary aim of the initiative shall be to provide a comprehensive overview of issues relating to governance, including roles and responsibilities, segregations of duties, oversight roles and responsibilities, long term planning, and other essential skills identified or to address specific issues or concerns raised by elected officials 11

RESULTS2018-2019 & ANALYSIS Surveys are completed by the workshop participants. The survey results reflect the relevance and quality of the workshop. Our focus on addressing issues that are relevant in First Nation communities are reflected in the outstanding results that we continue to achieve. The results speak to the relevance and quality of the instruction. foa Participant report 2017-2018 Distribution Our sessions were attended by 293 participants from all three treaty areas, as a wl eblleasrintdaigeanonusn u a l organizations, industry representatives, government employees, and post-secondary institutions. Overall, 1,542 days of instruction and co- learning were provided to the participants. 12

14 Management Responsibility Statement 15 Independant Auditor’s Report 17 Statement of Operations 18 Statement of Financial Position 19 Statement of Changes in Net Assets 19 Statement of Cash Flows 20 Notes to the Financial Statements 25 Schedule of Remuneration and Expenses FINANCSTIAATELMENTS afoa alberta annual report 2017-2018 13

Aboriginal Financial Officers Association of Alberta Statement of Operations For the year ended March 31, 2018 2018 2017 Budget Actual Actual Revenues $ 795,964 $ 450,466 $ 786,691 Indigenous Services Canada (note 5) 62,500 250,694 60,322 50,000 50,750 62,679 Conferences, workshops and sponsors - 4,460 2,413 Membership fees 908,464 756,370 912,105 MaInntaegreestminecnomt Re esponsibility Statement EThxepeancdciotumrpeasnying financial statements of Aboriginal Financial Officers Association of Alberta are the respAodnvseirbtislitinygofamndanparogmemoteionnt and have been approved by the Boa1r9d,0o0f0Directors. 8,437 14,766 Amortization 3,886 3,886 2,655 TheBafindadnecbiatsl statements have been prepared by management in a-ccordance with2,C45a0nadian acc3o4u,3n0tin1g stanBdoaarrddstrfaovr enlot for profit organizations prescribed by the Accou2n0ti,n0g00Standards1B7o,7a3r1d of the Ch2a1r,t3e1re9d ProCfeosnsfieorneanlceAsc,cwouonrktasnhtospsofanCdafnoarduamsand as such include am52o2u,n9t9s6that are3t2h4e,7b7e6st estim5a0te9s,0a1n4d judgCmonesnutsltionfgmfeaensagement. 5,000 3,697 - Insurance 3,500 3,845 3,378 ManOaffgiceemseunptpisliersesponsible for the integrity and objectivity of these2,s9t5a0tements and7,f0o0r2implementin5g,3a2n6d maiPnrtoafineisnsgionaal sfeyestsem of internal controls to provide reason1a0b,l0e00assurance10t,h8a4t3 reliable fin9a,7n6c9ial infoRrmenation is produced. 9,600 22,704 9,600 Scholarships 5,000 1,500 750 TheSBysotaermd osuf pDpiroerct taonrsd ims areinstpeonnasnicbele for ensuring that manageme2n,t0f0u0lfills its resp3o,n8s4i3bilities for fin2a,7n2c0ial repToretlienpghaonde ainntderuntaililtiecsontrol and is ultimately responsible for 1re,8v0ie0wing and a2p,5p8ro4ving the fin1a,8n0c0ial statTermaiennintsg. 29,000 14,508 23,093 Travel 15,000 16,421 17,803 TheWBaogaersdaonfdDbireencetofirts meets periodically with management, as20w8e,7ll3a2s the ext1e9rn9a,7l 2a9uditors, to19d3is,5c3u7ss internal controls over the financial reporting process, auditing matters and financial reporting issues, to satisfy themselves that each party is properly discharging their r8e5sp8o,4n6s4ibilities, a6n4d3t,o95r6eview the8f4in9a,8n3c1ial statements and the external auditors' report. EThxeceesxsteorfnrael vaeunduiteosrso, vCerroewxepeMnadcitKuaryesLLP, conduct an in$depe5n0d,e0n0t0 exam$ina1t1io2n,,41in4 acco$rdan6c2e,2w74ith Canadian auditing standards, and express their opinion on the financial statements. The external auditors have full and free access to financial management of Aboriginal Financial Officers Association of Alberta and meet when required. On behalf of Aboriginal Financial Officers Association of Alberta: Original Signed By July 26, 2019 Director Date Original Signed By July 26, 2019 Executive Director Date 14 a f o a a l b e r t a a n n u a l r e p o r t 2 0 1 7 - 2 0 1 8

Crowe MacKay LLP 2410 Manulife Place 10180 - 101 St. Edmonton, AB T5J 3S4 Main +1 (780)420-0626 Fax +1 (780)425-8780 www.crowemackay.ca Independent Auditors' Report To the Directors of Aboriginal Financial Officers Association of Alberta Report on the Audit of the Financial Statements Opinion We have audited the financial statements of Aboriginal Financial Officers Association of Alberta, which comprise the statement of financial position as at March 31, 2019, and the statements of operations, changes in net assets and cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies. In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the organization as at March 31, 2019, and its results of operations and its cash flows for the year then ended in accordance with Canadian accounting standards for not-for-profit organizations. Basis for Opinion We conducted our audit in accordance with Canadian generally accepted auditing standards. Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the organization in accordance with the ethical requirements that are relevant to our audit of the financial statements in Canada, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the 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. In preparing the financial statements, management is responsible for assessing the organization’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Association or to cease operations, or has no realistic alternative but to do so. Those charged with governance are responsible for overseeing the organization’s financial reporting process. 15 4

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Aboriginal Financial Officers Association of Alberta 2019 2018 Statement of Financial Position $ 1,228,000 $ 1,244,579 March 31, 165,639 394,281 13,007 7,620 Assets 1,406,646 1,646,480 Current Cash 183,220 22,431 Accounts receivable (note 3) Prepaid expenses and deposits $ 1,589,866 $ 1,668,911 Equipment (note 4) $ 15,603 $ 24,565 626,710 744,552 Liabilities 642,313 769,117 Current Accounts payable and accrued liabilities 389,332 877,363 Deferred contributions (note 5) 183,221 22,431 375,000 - Net Assets 947,553 899,794 Unrestricted Capital assets $ 1,589,866 $ 1,668,911 Restricted (note 6) Contingent liabilities (note 7) Approved on behalf of the Board: Original Signed By Director Original Signed By Director 18 a f o a a l b e r t a a n n u a l r e p o r t 2 0 1 7 - 2 0 1 8

Aboriginal Financial Officers Association of Alberta Statement of Changes in Net Assets For the year ended March 31, 2019 Unrestricted Capital assets Restricted Total Total (note 6) 2019 2018 Balance, beginning of $ 877,363 $ 22,431 $ - $ 899,794 $ 787,380 year 61,023 (13,264) - 47,759 112,414 Excess (deficiency) of - - revenues over - - expenditures $ 947,553 $ 899,794 Purchase of equipment (174,054) 174,054 - Transfer (375,000) - 375,000 Balance, end of year $ 389,332 $ 183,221 $ 375,000 Aboriginal Financial Officers Association of Alberta 2019 2018 Statement of Cash Flows $ 47,759 $ 112,414 For the year ended March 31, 13,264 3,886 Cash provided by (used for) 61,023 116,300 Operating activities 228,642 (328,841) Excess of revenues over expenditures (5,387) (5,257) Item not affecting cash (8,961) 24,565 Amortization (117,842) 334,362 Change in non-cash working capital items 157,475 141,129 Accounts receivable Prepaid expenses and deposits (174,054) (22,367) Accounts payable and accrued liabilities Deferred contributions (16,579) 118,762 1,244,579 1,125,817 Investing activity Purchase of equipment $ 1,228,000 $ 1,244,579 Increase (decrease) in cash Cash, beginning of year Cash, end of year 19

Aboriginal Financial Officers Association of Alberta Notes to the Financial Statements March 31, 2019 1. Nature of operations Aboriginal Financial Officers Association of Alberta is a not-for-profit organization incorporated under the Societies Act of Alberta and is exempt from tax under the Income Tax Act. The Association was formed to provide leadership in aboriginal financial management activities by developing and promoting quality standards, practices, research, certification and professional development to expand capacity for members and aboriginal organizations. 2. Significant accounting policies These financial statements are prepared in accordance with Canadian accounting standards for not-for-profit organizations. The significant accounting policies are detailed as follows: (a) Revenue recognition (i) Members' fees Members' fees are set annually by the Board of Directors and are recognized as revenue as received. (ii) Conference, seminar and sponsorship fees Conference, seminar and sponsorship fees are recognized as revenue when the conferences and seminars are presented. The liability for the portion of conference, seminar and sponsorship fees invoiced but not yet presented is recorded as deferred revenue. (iii) Government contributions The Association follows the deferral method of accounting for government contributions. Restricted contributions are recognized as revenue in the year in which the related expenses are incurred. 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. Unexpended contributions at the end of the year are recorded as deferred contributions. (b) Equipment Equipment is recorded at original cost plus any costs of betterment less accumulated amortization and excludes any assets not in current use. Amortization is calculated by the declining balance method at the annual rates set out below: Furniture and fixtures 20% Computer equipment 55% Amortization of the leasehold improvements is straightline over 10 years. 20 a f o a a l b e r t a a n n u a l r e p o r t 2 0 1 7 - 2 0 1 8

Aboriginal Financial Officers Association of Alberta Notes to the Financial Statements March 31, 2019 2. Significant accounting policies (continued) (c) Contributed services Volunteers contributed time to assist the Association in carrying out its programs. Because of the difficulty of determining their fair value, contributed services are not recognized in the financial statements. (d) Cash equivalents Cash and cash equivalents consist of cash on hand and bank deposits. (e) Financial instruments Financial assets originated or acquired or financial liabilities issued or assumed in an arm's length transaction are initially measured at their fair value. In the case of a financial asset or financial liability not subsequently measured at its fair value, the initial fair value is adjusted for financing fees and transaction costs that are directly attributable to its origination, acquisition, issuance or assumption. Such fees and costs in respect of financial assets and liabilities subsequently measured at fair value are expensed. The Association subsequently measures the following financial assets and financial liabilities at amortized cost: Financial assets measured at amortized cost include cash and accounts receivable. Financial liabilities measured at amortized cost include accounts payable and accrued liabilities. At the end of each reporting period, management assesses whether there are any indications that financial assets measured at cost or amortized cost may be impaired. If there is an indication of impairment, management determines whether a significant adverse change has occurred in the expected timing or the amount of future cash flows from the asset, in which case the asset's carrying amount is reduced to the highest expected value that is recoverable by either holding the asset, selling the asset or by exercising the right to any collateral. The carrying amount of the asset is reduced directly or through the use of an allowance account and the amount of the reduction is recognized as an impairment loss in operations. Previously recognized impairment losses may be reversed to the extent of any improvement. The amount of the reversal, to a maximum of the related accumulated impairment charges recorded in respect of the particular asset, is recognized in operations. (f) Use of estimates The preparation of financial statements requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. These estimates are reviewed periodically, and, as adjustments become necessary, they are reported in earnings in the period in which they become known. 21 11

Aboriginal Financial Officers Association of Alberta 2019 2018 Notes to the Financial Statements $ 84,800 $ 283,043 March 31, 2019 16,727 12,762 3. Accounts receivable 27,825 75,059 Indigenous Services Canada (4,250) (57,070) Goods and services tax Conference fees and other 33,257 5,650 Allowance for doubtful accounts - conference fees AFOA Canada - membership fees - 51,807 CPA Education Foundation First Nation Development Fund 7,280 23,030 $ 165,639 $ 394,281 4. Equipment Accumulated 2019 2018 Cost amortization Furniture and fixtures Net book Net book Leasehold improvements $ 57,220 $ 15,783 value value Computer equipment 139,511 3,488 23,909 $ 41,437 $ 20,584 18,149 136,023 - 5,760 $ 220,640 $ 37,420 1,847 $ 183,220 $ 22,431 22 a f o a a l b e r t a a n n u a l r e p o r t 2 0 1 7 - 2 0 1 8 12

Aboriginal Financial Officers Association of Alberta 2019 2018 Notes to the Financial Statements $ 15,450 $ 19,027 - 22,567 March 31, 2019 27,441 18,780 23,233 5. Deferred contributions 10,835 11,914 20,522 Introduction to Accounting Program 1,525 12,195 Financial Accounting / CAFM Bridge Credit Program 10,521 First Nation Technical Skills 335,470 First Nations General Management Workshop 49 25,001 First Nations Leadership and Group Dynamics 184,034 4,448 First Nations Professionalism and Ethics Workshop 41,486 Chief and Council Workshop 9,394 66,748 Management Program 4,448 - Learning Management System 41,486 - Auditors Round Table 66,748 - Mutual Accountability Sessions 17,642 - Community Planning Workshop 12,056 Fiscal Institute Workshop 80,250 134,500 AGM and Governance Conference 25,070 Comprehensive Community Planning 128,422 $ 744,552 Leasehold Improvement Credit CPA Education Foundation - No Limits $ 626,710 ISC funding recognized: 2019 2018 Indigenous Services Canada $ 409,159 $ 940,371 Funding returned - (148,793) Revenue deferred from prior years 268,940 Revenue deferred to future years 610,052 (610,052) (473,218) $ 545,993 $ 450,466 6. Internally restricted funds The Association has internally restricted $375,000 of funds for fifteen months of estimated operating expenses. 7. Contingent liabilities Government contributions related to the projects of the Association are subject to conditions regarding the expenditure of funds. The Association's accounting records are subject to audit by the various funding agencies. Should any instances be identified in which the amounts charged to projects are not in accordance with the agreed terms and conditions, amounts would be refundable to the respective funding agencies. Adjustments to the financial statements as a result of these audits will be recorded in the period in which they become known. 23

Aboriginal Financial Officers Association of Alberta Notes to the Financial Statements March 31, 2019 8. Lease commitment The Association holds a premise lease in Edmonton. The agreement expires December 31, 2024 with an option to renew for an additional 5 years. The minimum lease commitment is as follows: 2020 $ 50,717 2021 51,026 2022 52,263 2023 53,500 2024 40,821 $ 248,327 9. Economic dependence Aboriginal Financial Officers Association of Alberta generates the majority of its revenues from contributions provided by Indigenous Services Canada. 10. Financial instruments Transacting in and holding of financial instruments exposes the company to certain financial risks and uncertainties. These risks, which remain unchanged, include: (a) Credit risk Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. The Association’s exposure to credit risk relates to accounts receivable and arises from the possibility that a debtor does not fulfil its obligations. Management believes this risk is minimized through monitoring credit limits and aged receivables. The Association performs continuous evaluation of its financial assets and records impairment in accordance with the stated policy. (b) Liquidity risk Liquidity risk is the risk that an entity will encounter difficulty in meeting its obligations associated with financial liabilities. The Association’s exposure to liquidity risk relates to accounts payable and accrued liabilities and arises from the possibility that the timing and amount of its cash inflows will not be sufficient to enable it to meet its financial obligations as they become due. Management believes this risk is minimized through the maintenance of sufficient cash reserves. 11. Budget amounts The 2019 budget amounts on the Statement of Operations, are presented for information purposes only and are unaudited. 12. 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 prior year earnings. 24 a f o a a l b e r t a a n n u a l r e p o r t 2 0 1 7 - 2 0 1 8

Aboriginal Financial Officers Association of Alberta Notes to the Financial Statements March 31, 2019 8. Lease commitment The Association holds a premise lease in Edmonton. The agreement expires December 31, 2024 with an option to renew for an additional 5 years. The minimum lease commitment is as follows: 2020 $ 50,717 2021 51,026 2022 52,263 2023 53,500 2024 40,821 $ 248,327 9. Economic dependence Aboriginal Financial Officers Association of Alberta generates the majority of its revenues from contributions provided by Indigenous Services Canada. 10. Financial instruments Transacting in and holding of financial instruments exposes the company to certain financial risks and uncertainties. These risks, which remain unchanged, include: (a) Credit risk Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. The Association’s exposure to credit risk relates to accounts receivable and arises from the possibility that a debtor does not fulfil its obligations. Management believes this risk is minimized through monitoring credit limits and aged receivables. The Association performs continuous evaluation of its financial assets and records impairment in accordance with the stated policy. (b) Liquidity risk Liquidity risk is the risk that an entity will encounter difficulty in meeting its obligations associated with financial liabilities. The Association’s exposure to liquidity risk relates to accounts payable and accrued liabilities and arises from the possibility that the timing and amount of its cash inflows will not be sufficient to enable it to meet its financial obligations as they become due. Management believes this risk is minimized through the maintenance of sufficient cash reserves. 11. Budget amounts The 2019 budget amounts on the Statement of Operations, are presented for information purposes only and are unaudited. 12. 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 prior year earnings. 25