OUR COUNTRY’S GOOD
NATIONAL THEATRE SCHOOL OF CANADA
TRANSFORM YOUR PASSION INTO A PROFESSION
THE SCHOOL
Since 1960, the National Theatre School of Canada (NTS) has been recognized as a leading institution for those wishing to pursue a career as a playwright, director, actor, set and costume designer, or production professional. The NTS is unique: it offers high-level training programs in all aspects of the theatre arts, in both French and English. Many of its 2,000 graduates are among the country’s most active and versatile artists and designers. NTS is a private, non-profit institution. It is funded mainly through government grants, but also counts on a portion of the revenue generated by its own activities, including its fundraising campaigns. The School determines its own training programs and management strategies.
NATIONAL THEATRE SCHOOL OF CANADA 5030 St. Denis Street Montreal, Quebec, H2J 2L8 Canada Phone: 514-842-7954 or 1-866-547-7328 (Canada and USA) Fax: 514-842-5661 E-mail: info@ent-nts.ca
EXPERIENCING THEATRE AS A COLLABORATIVE ART
Website: ent-nts.ca
Theatre is a naturally collaborative art form. The School focuses its training on the practical experience of mounting a production by building on the interdependence of the different theatrical disciplines. Students work hand in hand with their colleagues in other training programs, thereby developing a keener understanding of, and respect for, all the artists involved in the making of theatre. Classes and performances take place at both the School and its public performance venue, the MonumentNational – an impressive multi-level heritage building with four different theatre spaces and a rehearsal hall.
TRAINING FOR TODAY’S THEATRE Some 160 students receive, in large part, individualized training from the artists and creators who are shaping today’s theatre. Daily interactions with working professionals help them form privileged relationships within the theatre community. These artists act as valuable contacts, mentors and resource persons, easing a student’s transition to professional life. As a result, NTS graduates enter their field successfully upon graduation.
RENOWNED NTS ALUMNI The National Theatre School has trained over 2,000 theatre and performing arts professionals. The success of this training is measured by the achievements of the graduates whose names are renowned on stages, on screens and behind the scenes, both in Canada and abroad. Alumni are the National Theatre School’s finest contribution to society, and many have gone on to great careers. They include Chris Abraham, Dominic Champagne, Julia Course, Henry Czerny, Claudia Dey, Leah Doz, Ted Dykstra, Jake Epstein, Colm Feore, Carole Fréchette, Allan Hawco, Brendan Healy, Martha Henry, Eda Holmes, Diana Leblanc, Ann-Marie MacDonald, Anita Majumdar, Seana McKenna, Hannah Moscovitch, Wajdi Mouawad, Sandra Oh, Kristin Pellerin, Adam Pettle, Gareth Potter, Michael Rubenfeld, August Schellenberg, Judith Thompson, and Kenneth Welsh, just to name a few.
( p . 1)
NATIONAL THEATRE SCHOOL OF CANADA
PAT RON
2013-2014
Under the distinguished patronage of His Excellency the Right Honourable David Johnston, C.C., C.M.M., C.O.M., C.D., Governor General of Canada
BOA R D OF DIR EC T ORS
BOA R D OF GOV ERNORS
A S OF J U LY 31, 2014
A S OF J U LY 31, 2014
CH A IR
MEMBER S
Bernard Amyot, QC
David Appel, QC * Herbert C. Auerbach, BC * Jean Pol Britte Tullio Cedraschi, QC Gil Desautels, QC * James de B. Domville Kaaren Hawkins, MB Gordon P. Jones, NL * Marie Lambert, C.M., QC Robert E. Landry, C.M., QC D’Arcy Levesque, AB Sheila Martin, QC Margaret Martinello Magner, PE * Monique Mercure, C.C., G.O.Q, QC Guy Mignault, ON Patricia M. Moore, AB Marissa Nuss, QC Thomas Peacocke, C.M., AB Eleanore Romanow, SK Patricia S. Rubin, ON Nalini Stewart, ON * Yvon Turcot, QC
T R E A SUR ER Simon Dupéré, QC
SECR E TA RY Linda Caty, QC
MEMBER S
EXECUTIVE MANAGEMENT COMMIT T EE CEO Simon Brault, O.C., O.Q.
A R T I S T IC DIR EC T O R O F T HE ENG L I SH SEC T ION Alisa Palmer
A R T I S T IC DIR EC T O R O F T HE F R ENCH SEC T ION
Linda Black, AB Alan Bleviss, US Richard Brott, ON Kathryn Brownlie, ON Alberta Cefis, ON David J. Daniels, ON J. Edward Johnson, QC Brenda Jones Kinsella, BC Jean-Hugues Lafleur, QC Caroline Mulroney Lapham, ON Joan Richardson, MB Paul Robillard, QC Jodi White, ON
Denise Guilbault * Life Governor
PUBLIC FUNDERS FROM AUGUST 1, 2013 TO JULY 31, 2014
T HE N ATION A L T HE AT RE SCHOOL OF CA N A DA RECEIV E S OPER ATING GR A N T S FROM GOV ERNMEN T SOURCES ACROS S CA N A DA . T HE Y REFLECT T HE IN T ERES T A ND FIRM L E V EL OF SUPPORT T HE SCHOOL CON TINUES TO ELICIT FROM COA S T TO COA S T. WE T H A NK :
( p. 2)
NATIONAL THEATRE SCHOOL OF CANADA
TABLE OF CONTENTS
MESSAGE FROM THE CHAIR MESSAGE FROM THE CEO PROGRAMS, CANDIDATES, STUDENTS AND 2014 GRADUATES COMMUNITY FOUNDATION ACCOUNTS BURSARY FUNDS MESSAGE FROM THE MINISTER OF CANADIAN HERITAGE AND OFFICIAL LANGUAGES FINANCIAL STATEMENTS
ANNUAL REPORT 2013-2014 COORDINATION : STÉPHANIE BRODY TRANSL ATION : JEFF MOORE COPY EDITING : JOHN DE TRE PHOTOS : MA XIME CÔTÉ ( BACK COVER, PAGES 6 AND 9 TO 13), CHRISTINE BOURGIER ( PAGE 4) AND CHRISTIAN BL AIS ( PAGE 8 ) GRAPHIC DESIGN : L AUREN T PINABEL PRINTING : QUADRISCAN Printed in October 2014
( p. 3)
4 6 9 15 16 21 22
NATIONAL THEATRE SCHOOL OF CANADA
MESSAGE FROM THE CHAIR
NEW HORIZONS In all respects, 2013-14 was a watershed year for the National Theatre School of Canada (NTS). First of all, it was the year that Simon Brault left NTS to become the Director and CEO of the Canada Council for the Arts. Personally, and on behalf of one and all, I would like to pay tribute to Simon, who was one of the School’s foremost builders. Serving for 17 years as its Chief Executive Officer, the longest mandate in NTS’s history, he placed his outstanding human, intellectual and professional qualities, along with his strong work ethic and visionary leadership, at the service of the institution, reinforcing its financial, artistic and political structures. With his unifying vision of the role of the arts in society, Simon Brault worked tirelessly to create a dialogue between French and English artists, within the School and beyond, as well as with artists from different cultural communities and First Nations, all of whom enrich our identity. In the same way, he was able to initiate a constructive and meaningful dialogue between the arts and business communities, as well as with institutions.
BERNARD AMYOT, Ad.E. Chair of the Board of Directors and the Board of Governors
With his vitality and long-term vision for the School, Simon Brault inspired those around him, motivating each member of his team to excel. All those who collaborated with him expressed both their admiration for his level of commitment and their willingness to follow his example to reach the increasingly ambitious goals he set for the organization. Needless to say, I wish Simon the best of success in his new position. At the same time, I would like to extend a very warm welcome to our new CEO, Gideon Arthurs, who took up his duties on August 4, 2014. I am pleased to note that his appointment was met with great enthusiasm at the School and within the theatre community across Canada. Active in Toronto for several years in both independent and institutional theatre, he has earned a reputation as an open-minded, imaginative and disciplined administrator. His fresh perspective on the School will no doubt help it to reach new heights and bolster its reputation both nationally and internationally. At the start of the fall term, Gideon welcomed the 55th group of students, some 160 in all, to a revitalized school: new colours, new windows, new equipment, and improved teaching conditions after the first phase of renovations to our main campus, the Michel and Suria Saint-Denis Pavilion. Gideon can obviously count on my ongoing support, as well as that of each member of the Board of Directors, with whom he has already spent some quality time, engaging in productive exchanges, both personal and professional.
( p. 4)
NATIONAL THEATRE SCHOOL OF CANADA
MESSAGE FROM THE CHAIR Gideon and his team will also be able to rely on the strategic plan Horizon 2020—The Future Intersects with the Present, adopted by the Board of Directors in September 2013. This plan laid the foundations for the School as it heads towards 2020, when it will celebrate its 60th anniversary. I would like to express my heartfelt gratitude to the members of the Board of Directors and the governors for their enthusiasm and unwavering support, especially in this year of profound changes. Their invaluable assistance, particularly during the search for a new CEO, was most appreciated. I would also like to thank Board member David J. Daniels, of Toronto, who was able to obtain pro bono assistance for the School in the form of renovation advice from SUSTAINABLE.TO, a firm specializing in innovative and sustainable design. Once again this year, we are publishing excellent financial results. As I write these lines, we know that our operating grant has been renewed by the Honourable Shelly Glover, Minister of Canadian Heritage, to whom I reiterate our immense gratitude. Finally, I would be remiss not to mention the death of Jean-Louis Roux, C.C. (1923-2013) last November. Jean-Louis Roux was instrumental in the founding of NTS in the 1960s; he was also the Chair of its Board of Governors from 1976 to 1979 and Director General from 1982 to 1987 before being named Life Governor. The School lost one of its most ardent defenders and loyal friends. We offer our sincere condolences to the family of this remarkable man of the theatre, a visionary builder and, above all, a great Canadian. To conclude, I am firmly convinced that the future of the National Theatre School of Canada is brighter than ever. Its directors and officers have been able to look beyond the horizon to make it all the more innovative and relevant.
Bernard Amyot, Ad.E.
( p. 5)
NATIONAL THEATRE SCHOOL OF CANADA
MESSAGE FROM THE CEO
EPILOGUE The year 2013-2014 was my last at the helm of the National Theatre School (NTS). I took my final bow on July 31, 2014, after 32 years of living and breathing the projects and ambitions of this institution, of which I was Chief Executive Officer for 17 years. I gently closed the large solid wood doors of the NTS with the feeling that I had done my utmost to give the School relevance, influence and resiliency. Over my final months as CEO, I developed a strategic plan that was debated and adopted by the Board of Directors and all of our teams. Entitled The Future Intersects with the Present, this plan maps a course leading to the year 2020, the 60th anniversary of SIMON BRAULT, O.C., O.Q. CEO
this unique artistic institution. Over six months ago, the members of the Board of Directors, governors, artistic directors, program directors and staff began to implement this plan, which is based on such principles as openness, sharing, continual improvement, innovation, sustainable funding and organizational resiliency. The School serves as a laboratory for theatrical development and experimentation— for both current and future practices. For this reason, I announced the creation of new funds that will allow students to continue their research and innovation. With the support of Corus Entertainment, the School set up the Quebec Storytelling Fund. This fund will serve to develop, produce and present original creations by Quebec playwrights on a variety of stages and platforms. In addition, a donation from Bell has allowed the School to create the Bell Initiatives (for transfer of theatre training to television, film and other platforms). For the French section, these initiatives include courses in acting-for-the-camera and the creation of short films for the Web under the guidance of renowned directors. For the English section, this financial support from Bell has already allowed the Acting students to perform in a short film under the direction of Canadian actor-director Paul Gross and to benefit from on-camera acting experience. In 2013-2014, the School was transformed into a construction site for the first phase of the renovation of its main campus, including equipment. This was made possible, in particular, by investments from Canadian Heritage and the Ministère de la Culture et des Communications du Québec. At the time of writing, this initial phase has been completed, and the School has applied for funding for the second phase of this asset maintenance project, to which it will contribute from the private funds it has raised. ( p. 6)
NATIONAL THEATRE SCHOOL OF CANADA
I invite you to read the financial statements as of July 31, 2014, which reflect the School’s sound budget and overall financial vitality. I am obviously very proud of this financial situation—all too rare, unfortunately, in the cultural sector—and I would like to thank and congratulate our new Chief Financial Officer, Julie Duclos, who was able to take control of our investment portfolios and budgets so quickly and efficiently while maintaining the discipline, rigour, transparency, and accountability that underlie the reputation for excellence the School has acquired over the years. From the bottom of my heart, I would also like to thank Monique Néron, who was a loyal and invaluable collaborator throughout my long directorship, in addition to serving as the Secretary of the Board of Directors. Finally, my hat goes off to the two Artistic Directors, with a special wink to Denise Guilbault, whom I first met as a student at the School and who has become over the last decade one of the French section’s finest artistic directors ever. And to Alisa Palmer, I repeat that I would have liked to have worked longer with you! As I leave the School, it is welcoming several new faces, including François St-Aubin, who will head the Set and Costume Design Program. I extend my kindest regards and wish the best of luck to Gideon Arthurs, who assumed his duties as the new CEO on August 4, 2014. I hope that he will enjoy directing the National Theatre School of Canada and taking on the complex and exciting challenges that line the path of all great cultural institutions in this country. In concluding my final text as Chief Executive Officer, I wish to thank the students whom I have known, observed, admired, applauded, helped, guided and sometimes even consoled, and who always reminded me of the raison d’être of the School and its noble mandate.
Simon Brault, O.C., O.Q., FCPA, FCGA
( p. 7 )
MESSAGE FROM THE CEO
NATIONAL THEATRE SCHOOL OF CANADA
THE 2013 RECIPIENTS OF THE GASCON-THOMAS AWARD, SUZANNE LEBEAU AND COLM FEORE (ACTING, 1980)
( p. 8 )
NATIONAL THEATRE SCHOOL OF CANADA
PROGRAMS, CANDIDATES, STUDENTS AND 2014 GRADUATES
OUR COUNTRY’S GOOD
ACTING
Under the direction of Alisa Palmer
NTS provides a strong formal foundation for the emerging actor, integrating voice, movement, and acting, and focusing on a visceral understanding of action, subtext and narrative truth. In a conservatory setting, students are guided by professional artists who are actively engaged in contemporary Canadian and international theatre. In January 2014, 302 candidates applied to the Acting program. In September 2014, 35 students were registered in the Acting program.
2 014 G R A DUAT E S : Erica Anderson Wayne Burns Andrew Chown James Daly Alexander De Jordy Nikki Duval Natasha Mumba Stephen Tracey Megn Walker Benjamin Wheelwright
Ottawa Truro Oakville St. John’s Toronto Winnipeg Lusaka St. Albert Lakefield Edmonton
Ontario Nova Scotia Ontario Newfoundland and Labrador Ontario Manitoba Zambia Alberta Ontario Alberta
Roberval Montreal Montreal Rivière-du-Loup Québec City Arthabaska Lévis Saint-Eustache Montreal Longueuil Laval
Quebec Quebec Quebec Quebec Quebec Quebec Quebec Quebec Quebec Quebec Quebec
INTERPRÉTATION (FRENCH ACTING PROGRAM) Under the direction of Denise Guilbault Benoît Arcand Marion Barot Caroline Bélanger Marie-Ève Bélanger Marie-Hélène Bélanger Alexandre Bergeron Gabrielle Côté Marianne Dansereau Guillaume Gauthier Jérémie Pratte Julien Thibeault
( p. 9)
NATIONAL THEATRE SCHOOL OF CANADA
PROGRAMS, CANDIDATES, STUDENTS AND 2014 GRADUATES
PREY
PLAYWRITING
Under the direction of Brian Drader
The Playwriting program aims to reveal and shape each writer’s unique voice, with a low teacher-student ratio that allows for an exceptional response to individual interests, needs, strengths, and challenges. In January 2014, 12 candidates applied to the Playwriting program. In September 2014, 6 students were registered in the Playwriting program.
2 014 G R A DUAT E S : Geoffrey Simon Brown Britney Tangedal
Calgary Mississauga
Alberta Ontario
ÉCRITURE DRAMATIQUE (FRENCH PLAYWRITING PROGRAM) Under the direction of Diane Pavlovic Maxime Champagne Louis-Charles Sylvestre
( p. 10 )
Montreal Berthierville
Quebec Quebec
NATIONAL THEATRE SCHOOL OF CANADA
PROGRAMS, CANDIDATES, STUDENTS AND 2014 GRADUATES
BEFORE HER TIME, FOOTFALLS
DIRECTING
Under the artistic direction of Alisa Palmer Coordinator: Rose Plotek
Training for directors is rigorous and immersive. It supports individual growth through exposure to a diversity of professional practices and theatre styles, including a thorough examination of current Canadian and Quebec theatre practices. In January 2014, 45 candidates applied to the Directing program. In September 2014, 2 students were registered in the Directing program.
2 014 G R A DUAT E S : Andreja Kovac Jon Lachlan Stewart
Maribor Edmonton
Slovenia Alberta
MISE EN SCÈNE (FRENCH DIRECTING PROGRAM) Under the direction of Robert Bellefeuille Alix Dufresne Mathieu Larrivée
Montreal Rouyn-Noranda
Quebec Quebec
( p . 11)
NATIONAL THEATRE SCHOOL OF CANADA
PROGRAMS, CANDIDATES, STUDENTS AND 2014 GRADUATES
THE CIRCLE
SET AND COSTUME DESIGN – SCÉNOGRAPHIE Under the direction of Danièle Lévesque
NTS’s bilingual Set and Costume Design program offers training with a curriculum designed to reveal the personal artistic vision of each student and enable him or her to become a key player within a creative team. In January 2014, 24 English-speaking candidates and 14 French-speaking candidates applied to the Set and Costume Design – Scénographie program. In September 2014, 15 English-speaking students and 9 French-speaking students were registered in the Set and Costume Design – Scénographie program.
2 014 G R A DUAT E S : Pierre-Luc Boudreau Coral Coughlan Camilhe Couton Sarah Lachance Léa Robertson Virginie T. Urbain Jordan Wieben
( p. 12)
Mascouche Montreal Aix-en-Provence Sherbrooke Montreal LaSalle Calgary
Quebec Quebec France Quebec Quebec Quebec Alberta
NATIONAL THEATRE SCHOOL OF CANADA
PROGRAMS, CANDIDATES, STUDENTS AND 2014 GRADUATES
OUR COUNTRY’S GOOD
PRODUCTION
Under the direction of Andrea Lundy
The Production program students train and practice with seasoned professionals and master the foundations of Production Management, Technical Direction, Stage Management, Stage Electrics – Lighting Design, Sound Systems – Sound Design, and Video Systems – Video Design. In January 2014, 23 candidates applied to the Production program. In September 2014, 24 students were registered in the Production program.
2 014 G R A DUAT E S : Meredith Daley Kali Claire Grenier-Prieur Brian Kenny Corey MacVicar Amelia Scott Danielle Szydlowski Nicholas Timmenga
Bathurst Winnipeg St. John’s Quispamsis Kelowna Montreal Vancouver
New Brunswick Manitoba Newfoundland and Labrador New Brunswick British Columbia Quebec British Columbia
PRODUCTION (FRENCH PRODUCTION PROGRAM) Under the direction of Louise Roussel Laurence Croteau Langevin Chloé Ekker Frédérique Folly Julie Lebeau Élise Neil Gonzalo Soldi
Québec City Ottawa Saint-Gédéon Saint-Hyacinthe Montreal Lima
Quebec Ontario Quebec Quebec Quebec Peru
( p. 13)
NATIONAL THEATRE SCHOOL OF CANADA
UPDATE FROM THE DEVELOPMENT OFFICE For this past year, NTS has been focusing on the stewardship of our many donors to the successful Revealing Talent major campaign. This has been a year of reection, planning and service. In addition, we have developed a slate of potential new donors to the School while approaching some of our historic donors to request the establishment of bequests. To this end, we have detailed a further $1 million in documented planned gifts and received more than $350,000 new dollars in matching funds, community foundation payouts and donations. For the future, we will again be approaching corporations, foundations and individuals for their support—particularly of our many new projects that enhance learning and training here at the National Theatre School of Canada.
( p. 14)
NATIONAL THEATRE SCHOOL OF CANADA
FO U N DAT IO N O F G RE AT ER M O N T RE A L ED M O N TO N CO M M U N I T Y FO U N DAT IO N TO RO N TO CO M M U N I T Y FO U N DAT IO N VA N CO U V ER FO U N DAT I O N FO U N DAT IO N O F N E W FO U N DL A N D A N D L A BR A DO R W I N N I P EG FO U N DAT IO N FO N DAT IO N CO M M U N AU TA IRE DU G R A N D Q U ÉBEC S O U T H S A S K ATCH E WA N CO M M U N I T Y FO U N DAT IO N T O TA L
PAYO U T T O N T S 2 0 13 - 2 0 14 ($)
The following reflects the market value of the NTS endowed funds held at Community Foundations across the country.
M A R K E T VA L UE D E C . 3 1, 2 0 1 3 ($)
COMMUNIT Y FOUNDATION ACCOUNTS
3,45 4,702 1,076,410 528,865 4 55,4 07 20 4,337 115,6 4 6 102,873 95,8 30
9 0, 20 0 24,6 89 17, 216 11,79 0 9,66 8 1,915 0 3, 29 0
6,0 3 4 ,0 70
15 8,76 8
( p. 15)
JOSEPH BLEVISS MEMORIAL CIRQUE DU SOLEIL J.W. MCCONNELL FAMILY FOUNDATION HONOURABLE PAULINE-MCGIBBON POWER CORPORATION CANADA MORTGAGE AND HOUSING CORPORATION TRANSCANADA PIPELINES NATIONAL BANK ALUMNI ERIC STEINER QUÉBEC BRUNO GERUSSI BMO FINANCIAL GROUP BARBARA & JOHN POOLE RBC ROYAL BANK HYDRO-QUÉBEC ENBRIDGE TD G.R.A.-RICE CAROL & DAVID APPEL SIMON BRAULT & LOUISE SICURO MICHEL & SURIA SAINT-DENIS COGECO ROGERS COMMUNICATIONS ALBERTA WALTER CARSEN KAHANOFF FOUNDATION BRAM & BLUMA APPEL BARRICK HEART OF GOLD CAISSE CENTRALE DESJARDINS CANADA POST CORPORATION CIBC CLIFF MINSHULL GAZ MÉTRO ONEX CORPORATION SOLOMON JACK SAFIAN EATON FOUNDATION ADA SLAIGHT NOVA SCOTIA BURROWES FAMILY MICHEL TREMBLAY ROBERT E. LANDRY DENISE PELLETIER
( p. 16 )
BURSARIES A L L OCAT ED F O R 2 0 13 - 2 0 14 ( $ )
FUND
BURSARY FUNDS
ACCUMUL AT ED DON AT IONS A S O F J U L Y 3 1, 2 0 1 4 ( $ )
NATIONAL THEATRE SCHOOL OF CANADA
314,873 260,125 200,000 189,343 175,000 150,000 140,000 135,000 132,419 125,650 118,340 104,695 100,000 100,000 100,000 96,000 90,900 90,000 67,500 63,205 62,357 62,000 61,500 60,000 59,950 58,000 55,000 51,323 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 46,141 45,357 36,000 35,000 34,078 32,300 31,000
9,300 7,700 5,900 5,600 5,200 4,400 4,100 1,000 3,900 3,700 3,500 3,100 3,000 3,000 3,000 2,800 2,700 2,700 2,000 1,900 1,600 1,800 1,600 1,800 1,800 1,700 1,600 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,400 1,300 1,100 1,000 1,000 900 900
BURSARIES A L L OCAT ED F O R 2 0 13 - 2 0 14 ( $ )
NALINI STEWART & FAMILY DONALD & MURRAY DAVIS IMPERIAL TOBACCO CANADA LTD. MONIQUE MERCURE ARTHUR & ESTHER GELBER S.M. BLAIR FAMILY FOUNDATION NORMAN & MARGARET JEWISON CHARITABLE FOUNDATION AMERICAN EXPRESS CRAIG FOUNDATION RIO TINTO ALCAN BERNARD ROY SEAGRAM COMPANY LTD. SASKATCHEWAN PATRICIA & DAVID RUBIN FAMILY 25TH ANNIVERSARY GALA PETRO-CANADA BIRKS FAMILY FOUNDATION GEORGE WESLEY JODI WHITE SAM SNIDERMAN & JANET MAYS MANITOBA DESJARDINS ALLARD FOUNDATION AXOR MONUMENT-NATIONAL CHAWKERS FOUNDATION J.A. DESÈVE LUC PLAMONDON BRENDA JONES KINSELLA PATRICIA M. MOORE BRITTE-MORENO CLEATHER FAMILY JEAN BESRÉ SOMER ALBERG JEAN-LOUIS ROUX TNM GIL DESAUTELS J. EDWARD JOHNSON & SHARON VANCE FAMILY PETER & SHELAGH GODSOE J. ARMAND BOMBARDIER FOUNDATION FEDNAV LTD. METRO PATERSON FOUNDATION PRATT & WHITNEY CANADA SNC-LAVALIN
ACCUMUL AT ED DON AT IONS A S O F J U L Y 3 1, 2 0 1 4 ( $ )
FUND
NATIONAL THEATRE SCHOOL OF CANADA
30,218 30,000 29,000 28,698 28,300 27,950 27,000 25,500 25,000 25,000 25,000 25,000 24,706 24,200 22,500 22,500 22,000 22,000 21,935 21,650 21,000 20,743 20,000 20,000 20,000 20,000 19,976 19,345 18,800 18,675 18,600 17,844 17,150 16,520 16,035 15,640 15,427 15,000 15,000 15,000 15,000 15,000 15,000
900 900 900 800 800 800 700 800 700 400 300 700 700 600 700 700 700 700 600 600 600 600 600 600 600 600 600 500 500 600 600 500 500 500 500 500 400 400 400 400 400 400 400
( p . 17 )
BURSARY FUNDS
FRANCINE RACETTE & DONALD SUTHERLAND TECOLOTE FOUNDATION ADRIAN MERCHANT MACDONALD & DONALD S. MACDONALD YVON TURCOT ELEANORE ROMANOW ROTHMANS BENSON & HEDGES INC. JOHANNA & CAMERON MITCHELL JACQUELINE & DEREK OLAND TOM CAREW HAYDEN/SIME JEAN CLAUDE & PENELOPE BAUDINET KAAREN & KERRY HAWKINS NEW BRUNSWICK LAURA ELSIE MACMILLAN MARY & HERB AUERBACH ASSIA DE VREEZE IPSCO PAUL ROBILLARD JOHN CODNER ATOMIC ENERGY OF CANADA LTD. BELL MOBILITY CANADIAN PACIFIC CELANESE CANADA CN BERNARD G. CÔTÉ EMERA EMPIRE LIFE INSURANCE COMPANY ERNST & YOUNG LUBA GOY HAMBER FOUNDATION HUNT OIL COMPANY J.D. IRVING LTD. HENRY WHITE KINNEAR FOUNDATION JOHN LABATT FOUNDATION D’ARCY LEVESQUE LÉVESQUE BEAUBIEN GEOFFRION MCLEAN FOUNDATION GEORGE CEDRIC METCALF CHARITABLE FOUNDATION MOOSEHEAD NOVA CHEMICALS DAVID PEACOCK NANCY G. POWER PRODUCTIONS BENOÎT BRIÈRE INC.
( p. 18 )
15,000 15,000 14,640 14,000 13,800 13,000 12,200 12,200 11,830 11,700 11,500 11,200 11,049 11,000 10,900 10,825 10,700 10,664 10,107 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000
BURSARIES A L L OCAT ED F O R 2 0 13 - 2 0 14 ( $ )
BURSARY FUNDS
ACCUMUL AT ED DON AT IONS A S O F J U L Y 3 1, 2 0 1 4 ( $ )
FUND
NATIONAL THEATRE SCHOOL OF CANADA
400 400 400 400 400 400 400 400 400 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300
BURSARIES A L L OCAT ED F O R 2 0 13 - 2 0 14 ( $ )
GEORGE GIBBONS RONALDS HARRIS RSA DIANA & IRVING SCHWARTZ ALVIN SEGAL SHAW COMMUNICATIONS KAYLA SHOCTOR SUNWAPTA BROADCASTING UNIVERSAL STUDIOS CANADA VELAN KATHRYN & BRIAN BROWNLIE YVES-ÉTIENNE BANVILLE SUB-TOTAL – BURSARY FUNDS
ACCUMUL AT ED DON AT IONS A S O F J U L Y 3 1, 2 0 1 4 ( $ )
FUND
NATIONAL THEATRE SCHOOL OF CANADA
10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 9,500 3,290 5,371,073
300 300 300 0 300 300 300 300 300 0 0 153,400
TULLIO CEDRASCHI FUND BERNARD AMYOT FUND SIMS FAMILY FUND SUB-TOTAL – AWARD FUNDS
57,500 13,550 11,100 82,150
INTERFUND TRANSFER
(8,610)
SUB-TOTAL – RESTRICTED EXTERNALLY
5,444,613
NATIONAL THEATRE SCHOOL OF CANADA NTS GOVERNORS & MEMBERS SUB-TOTAL – BURSARY FUNDS
504,257 719,475 1,223,732
INTERFUND TRANSFER SUB-TOTAL – RESTRICTED INTERNALLY
TOTAL ENDOWED BURSARY AND AWARD FUNDS
14,900 21,000 35,900
8,611 1,232,343
6,676,956
189,300
( p. 19)
BURSARY FUNDS
DIRECT BURSARIES PETER DWYER/CANADA COUNCIL ADA SLAIGHT BMO FINANCIAL GROUP SCOTIA BANK LUC PLAMONDON ROASTERS FOUNDATION IODE NONNIE GRIFFIN PETER ELDRED NORMAN & MARGARET JEWISON CHARITABLE FOUNDATION LEO CICERI/STRATFORD FESTIVAL SOCIETY LUC PELLETIER WOLFGANG NOETHLICHS ANNE HARDCASTLE (IN HONOUR OF) STEVEN SCHIPPER MONTY SCHNIEDER VARIOUS YVES-ÉTIENNE BANVILLE (IN MEMORIAM) SUB-TOTAL – DIRECT BURSARIES
10,000 10,000 5,000 5,000 4,200 4,000 3,000 3,000 1,000 1,000 802 760 600 500 500 500 450 400 50,712
DIRECT BURSARIES FROM COMMUNITY FOUNDATION ACCOUNTS FOUNDATION OF GREATER MONTREAL TORONTO FOUNDATION VANCOUVER FOUNDATION SUB-TOTAL – COMMUNITY FOUNDATION BURSARIES
49,200 1,452 1,176 51,828
TOTAL BURSARIES
NATIONAL THEATRE SCHOOL AWARDS ADA SLAIGHT PRIZE (GRADUATE) TULLIO CEDRASCHI AWARD (GRADUATE) BERNARD AMYOT PRIZES FOR EMERGING TEACHERS SIMS FAMILY PRIZE FOR TEACHING EXCELLENCE
GRAND TOTAL AWARDS
( p. 20 )
291,840
AWA R DED ( $)
BURSARY FUNDS
BURSARIES A L L OCAT ED F O R 2 0 13 - 2 0 14 ( $ )
NATIONAL THEATRE SCHOOL OF CANADA
5,000 5,000 1,000 500
11,500
NATIONAL THEATRE SCHOOL OF CANADA
( p . 2 1)
National Theatre School of Canada Financial Statements July 31, 2014
Independent Auditor's Report
2-3
Financial Statements Operations
4
Changes in Fund Balances
5
Cash Flows
6
Financial Position
7
Notes to Financial Statements
8 - 27
Independent Auditor's Report Raymond Chabot Grant Thornton LLP Suite 2000 National Bank Tower 600 De La Gauchetière Street West Montréal, Quebec H3B 4L8
To the Board of Directors of National Theatre School of Canada
Telephone: 514-878-2691 Fax: 514-878-2127 www.rcgt.com
We have audited the accompanying financial statements of National Theatre School of Canada, which comprise the statement of financial position as at July 31, 2014 and the statements of operations, changes in fund balances and cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information. Management’s responsibility for the financial statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with Canadian accounting standards for not-for-profit organizations and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
Member of Grant Thornton International Ltd
3
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements present fairly, in all material respects, the financial position of National Theatre School of Canada as at July 31, 2014 and the results of its operations and its cash flows for the year then ended in accordance with Canadian accounting standards for not-for-profit organizations.
MontrĂŠal September 29, 2014
1
CPA auditor, CA public accountancy permit no. A117472
$
$
354,439 1,794,796 58,290 68,987 7,390,512
354,439 1,794,796
58,290 43,419 7,364,944
217,881 36,114 151,407 357,749 29,771 186,570 1,258,968 662,543 167,563 62,867
235,000 7,194,598
217,881 36,114 151,407
357,749 29,771 186,570 1,258,968
662,543 167,563 62,867
235,000 7,194,598 195,914
49,224 131,057
49,224 131,057
25,568
77,030 376,101 24,221 17,759 181,288
77,030 376,101 24,221 17,759 181,288
170,346
2,809,802 161,683
2,809,802 161,683
–
5,114,000
$
Total
242,737
313,676 7,473,385
739,351 236,695 33,266
402,843 25,718 191,275 1,410,567
232,315 34,459 138,759
52,937 88,439
54,514 351,649 28,385 3,450 157,531
2,806,123 171,433
63,173 85,993 7,716,122
315,650 2,134,306
5,117,000
$
Total
2013
General Administration
2014
5,114,000
25,568 25,568
Loan Fund
General Fund
The accompanying notes are an integral part of the financial statements.
Excess of revenues over expenses
Expenses Teaching staff Salaries and employee benefits Allowances Building Salaries and employee benefits Operating expenses Teaching equipment Special projects Public performances Stores Salaries and employee benefits Supplies Library Salaries and employee benefits Books and supplies Training initiatives Auditions and communications Salaries and employee benefits Audition tours Communications Monument-National (Note 9) Administrative Salaries and employee benefits Other Other Amortization of buildings Amortization of furniture, equipment, automotive equipment and computer equipment Disposal of funds in favour of community foundations (Note 7) Bursaries and funds allocated Pension plan expense (Notes 21 and 22)
Revenues Operating grants (Note 4) Special grant from Department Canadian Heritage Private donations (Note 5) Self-generated revenue (Note 6) Investment income from community foundations (Note 7) Net investment income (Note 8)
Year ended July 31, 2014
National Theatre School of Canada Operations
1,348
18,261 18,261
$
68,451
168,226 201,226
33,000
$
21,098
38,519 38,519
$
49,824 2,698,440 4,181,756
1,350,000 83,492
$
Total
698,606 1,454,520
303,402 1,114,582
12,079 36,478
47,579 256,504
1,348 16,913
68,451 132,775
21,098 17,421
3,029,193
1,152,563
453,957
160,432
47,579
304,083 304,083
$
2014
160,432
12,079
48,557 48,557
$
Directing Chair Fund
SuzanneGrossmann Fund
538,174
303,402
49,824 1,317,668 1,417,984
50,492
$
Bursary Fund
Playwriting Chair Fund
Creation and Technology Fund
538,174
803,126 2,153,126
1,350,000
$
Capital Assets Fund
PhilippeCasgrain Fund
1,358,227
1,131,478
344,050
294,854
492,574
6,329 2,413,952 2,489,705
69,424
$
Total
2013
Restricted
589,182
457,142
457,142
1,046,324
1,046,324
$
Total
2014
787,151
237,142
237,142
1,024,293
1,024,293
$
Total
2013
Endowment (Note 20)
4
$
1,800,487
193,872
1,994,359
(3,387)
–
(224,000)
195,914
2,025,832
$
Total
53,654
25,568
168,304
$
Loan Fund
2,025,832
(4,622)
242,737
1,787,717
$
Total
2013
General Administration
2014
(224,000)
(57,041)
1,857,528
$
Unrestricted
170,346
General Fund Restricted (Note 21)
The accompanying notes are an integral part of the financial statements.
Fund balances, beginning of year Excess of revenues over expenses Remeasurement of employee future benefits Interfund transfer (Note 10) Fund balances, end of year
Year ended July 31, 2014
National Theatre School of Canada Changes in Fund Balances
23,706,801
1,454,520
22,252,281
$
Capital Assets Fund
3,249,484
1,114,582
2,134,902
$
Bursary Fund
177,365
36,478
140,887
$
Playwriting Chair Fund
1,216,654
256,504
960,150
$
Directing Chair Fund
34,565
16,913
17,652
$
PhilippeCasgrain Fund
308,387
132,775
175,612
$
Creation and Technology Fund
43,037
17,421
25,616
$
SuzanneGrossmann Fund
28,736,293
3,029,193
25,707,100
$
Total
2014
25,707,100
1,358,227
24,348,873
$
Total
2013
Restricted
9,652,442
3,387
589,182
9,059,873
$
Total
2014
9,059,873
4,622
787,151
8,268,100
$
Total
2013
Endowment (Note 20)
5
6
National Theatre School of Canada Cash Flows Year ended July 31, 2014
2014 $ OPERATING ACTIVITIES Excess of revenues over expenses of the general administration and restricted funds Non-cash items Remeasurement of employee future benefits Employee future benefit liability Amortization of tangible capital assets Net change in fair value of investments Net change in working capital items (Note 3) Cash flows from operating activities INVESTING ACTIVITIES Disposal of investments Investments Disposal of funds in favour of community foundations Acquisition of tangible capital assets Cash flows from investing activities FINANCING ACTIVITIES Net change in bank loan Repayment of long-term debt Private donations to endowment Government grants receivable Cash flows from financing activities Net increase (decrease) in cash Cash, beginning of year Cash, end of year
The accompanying notes are an integral part of the financial statements.
2013 $
3,225,107
1,600,964
(224,000) 99,000 698,606 (2,094,497) (951,308) 752,908
787,428 (1,989,172) (875,237) (476,017)
14,414,286 (13,764,619) (457,142) (2,164,785) (1,972,260)
9,847,749 (9,903,192) (130,000) (120,069) (305,512)
319,438 (59,970) 1,046,324 (163,652) 1,142,140 (77,212) 116,527
(809,904) 1,024,293 568,829 783,218 1,689 114,838
39,315
116,527
Director
On behalf of the Board,
The accompanying notes are an integral part of the financial statements.
FUND BALANCES Invested in tangible capital assets Externally restricted Internally restricted (Notes 20 and 21)
Long-term Long-term debt (Note 19) Employee future benefit liability (Note 22)
LIABILITIES Current Bank loan (Note 15) Trade payables and other operating liabilities (Note 16) Refundable deposits Government grants received in advance (Note 17) Advance from General Administration Fund, without interest Advance from Endowment Fund, without interest Contributions and deferred revenues (Note 18) Current portion of long-term debt
Long-term Investments (Note 13) Tangible capital assets (Note 14) Government grants receivable (Note 12)
ASSETS Current Cash Trade and other receivables (Note 11) Prepaid expenses Advance to Loan Fund, without interest Advance to Capital Assets Fund, without interest Advance to Bursary Fund, without interest Advance to Playwriting Chair Fund, without interest Advance to Directing Chair Fund, without interest Advance to Philippe-Casgrain Fund, without interest Advance to Creation and Technology Fund, without interest Advance to Suzanne-Grossmann Fund, without interest Investments receivable Current portion of government grants receivable (Note 12)
July 31, 2014
National Theatre School of Canada Financial Position
193,872 193,872 193,951
3,689,866
79
79
1,800,487 1,800,487
99,000 1,889,379
1,790,379
729,807
79
193,951
3,689,866
912,390 19,182 129,000
193,951
2,063,395
–
$
$
39,315 260,446 93,927 79 583,329 3,521 149 4,016 193 16,678 10,121 150,000 464,697 1,626,471
Loan Fund
General Fund
General Administration
24,828,668
23,706,801
18,844,238 4,862,563
1,121,867
175,280
43,820 946,587
583,329
319,438
24,828,668
3,253,165
2,704,263 545,221 3,249,484
3,681
3,681
3,521 160
3,253,165
3,225,137
28,028
43,820 57,038 4,902,171 19,694,179 175,280
28,028
$
Bursary Fund
13,218
$
Capital Assets Fund
177,514
177,365
177,365
149
149
149
177,514
177,514
–
$
Playwriting Chair Fund
1,220,670
1,216,654
1,216,654
4,016
4,016
4,016
1,220,670
1,214,461
6,209
6,209
$
Directing Chair Fund
Director
34,758
34,565
34,565
193
193
193
34,758
34,758
–
$
PhilippeCasgrain Fund
325,065
308,387
308,387
16,678
16,678
16,678
325,065
325,065
–
$
Creation and Technology Fund
53,158
43,037
43,037
10,121
10,121
10,121
53,158
53,158
–
$
Restricted SuzanneGrossmann Fund
9,652,442
8,120,099 1,532,343 9,652,442
–
–
9,652,442
9,448,722
203,720
203,560
160
$
Endowment Fund
42,811,011
18,844,238 17,466,933 4,071,923 40,383,094
175,280 99,000 2,427,917
729,807 43,820 2,153,637
319,438 912,390 19,182 129,000
42,811,011
21,638,332 19,694,179 175,280
353,560 508,517 1,303,220
39,315 307,901 93,927
$
Total
2014
$
Total
2013
38,978,571
17,697,497 15,374,992 3,720,316 36,792,805
2,185,766
1,012,672 279,070 2,185,766
601,082 20,192 272,750
38,978,571
20,193,502 17,697,497
247,562 520,145 1,087,572
116,527 201,998 1,340
7
8
National Theatre School of Canada Notes to Financial Statements July 31, 2014
1 - GOVERNING STATUTES AND PURPOSE OF THE ORGANIZATION National Theatre School of Canada, incorporated under Part III of the Companies Act (Quebec), offers professional training in English and French in theatre arts: acting, directing, playwriting, set and costume design and technical production. The Organization is a non-profit organization under the Income Tax Act. 2 - SIGNIFICANT ACCOUNTING POLICIES Basis of presentation The Organization's financial statements are prepared in accordance with Canadian accounting standards for not-for-profit organizations. Accounting estimates The preparation of financial statements requires management to make estimates and assumptions that affect the amounts recorded in the financial statements and notes to financial statements. These estimates are based on management's best knowledge of current events and actions that the Organization may undertake in the future. Actual results may differ from these estimates. Financial assets and liabilities Initial measurement Upon initial measurement, the Organization's financial assets and liabilities are measured at fair value, which, in the case of financial assets or financial liabilities that will be measured subsequently at amortized cost, is increased or decreased by the amount of the related financing fees and transaction costs. Transaction costs relating to financial assets and liabilities that will be measured subsequently at fair value are recognized in operations in the year they are incurred. Subsequent measurement At each reporting date, the Organization measures its financial assets and liabilities at amortized cost (including any impairment in the case of financial assets), except for shares and mutual funds which are measured at fair value and bonds, money market securities and Treasury bills which the Organization has elected to measure at fair value by designating that fair value measurement shall apply. With respect to financial assets measured at amortized cost, the Organization assesses whether there are any indications of impairment. When there is an indication of impairment, and if the Organization determines that during the year there was a significant adverse change in the expected timing or amount of future cash flows from the financial asset, it will then recognize a reduction as an impairment loss in operations. The reversal of a previously recognized impairment loss on a financial asset measured at amortized cost is recognized in operations in the year the reversal occurs.
9
National Theatre School of Canada Notes to Financial Statements July 31, 2014
2 - SIGNIFICANT ACCOUNTING POLICIES (Continued) Fund accounting Assets, liabilities, revenues and expenses relating to the Organization's general activities are reported in the General Fund. Assets, liabilities, revenues and expenses to provide financial assistance through emergency loans to students of the Organization who need short-term financial support are reported in the Loan Fund. These loans are without interest and payable in 90 days. Assets, liabilities, revenues and expenses relating to capital assets are reported in the Capital Assets Fund. Assets, liabilities, revenues and expenses to provide financial assistance through bursaries to students who are facing financial difficulties which could jeopardize the completion of their training at the Organization are reported in the Bursary Fund. This financial assistance is complementary to the government assistance programs. Assets, liabilities, revenues and expenses relating to invited playwrights in residence at the Organization in order to promote the development of new English-language Canadian plays are reported in the Playwriting Chair Fund. Assets, liabilities, revenues and expenses relating to support activities of research, production and training in the area of directing are reported in the Directing Chair Fund. Assets, liabilities, revenues and expenses relating to enrich the teaching and voice coaching for the students through the recruitment of specialists who will provide vocal technique and diction master classes and intensive workshops are reported in the Philippe-Casgrain Fund. Assets, liabilities, revenues and expenses relating to invited specialists, partnerships or purchases and rentals required for an increasingly advanced integration of new stage technologies for training students in show production are reported in the Creation and Technology Fund. Assets, liabilities, revenues and expenses relating to the cultural and theatre outings offered to the students, namely, visits to the Stratford Shakespeare Festival and the Shaw Festival, are reported in the Suzanne-Grossmann Fund. The Endowment Fund presents resources received as endowments.
10
National Theatre School of Canada Notes to Financial Statements July 31, 2014
2 - SIGNIFICANT ACCOUNTING POLICIES (Continued) Revenue recognition Contributions The Organization follows the restricted fund method of accounting for contributions. Contributions restricted for operating activities are recognized as revenue of the General Fund, using the deferral method, in the year in which the related expenses are incurred. Restricted contributions for which the Organization does not have a related restricted fund are recognized in the General Fund using the deferral method. All other restricted contributions are recognized as revenue of the appropriate restricted fund. Unrestricted contributions are recognized as revenue of the General Fund when received or receivable if the amount to be received can be reasonably estimated and collection is reasonably assured. Contributions received as endowments are recognized as revenue in the Endowment Fund. Self-generated revenue Self-generated revenue is recognized when there is an agreement between the parties, the amount of the transaction is determinable, collection is reasonably assured and the services have been rendered. The liability related to the portion of self-generated revenue that is invoiced but not pledged is recognized as deferred revenues. Net investment income Investment transactions are recorded on the transaction date and resulting revenues are recognized using the accrual method of accounting. Net investment income includes interest income, dividends and changes in fair value. Interest income is recognized on a time apportionment basis, dividend income is recognized when it is acquired and changes in fair value are recognized when they occur. With respect to investments measured at fair value, the Organization has elected to include in changes in fair value interest income (including amortization of bond investment premiums and discounts), interest in net income of mutual funds and dividends. Net investment income that is not subject to externally imposed restrictions is recognized in the statement of operations under Net investment income of the General Fund. Investment income from Endowment Fund resources is presented in the Bursary Fund, the Playwriting Chair Fund, the Directing Chair Fund, the Philippe-Casgrain Fund, the Creation and Technology Fund or the Suzanne-Grossmann Fund according to the nature of the donor designation. Investment income from fund resources is recognized in the related restricted funds.
11
National Theatre School of Canada Notes to Financial Statements July 31, 2014
2 - SIGNIFICANT ACCOUNTING POLICIES (Continued) Investment income from community foundations that is externally restricted is presented in the Bursary Fund, the Playwriting Chair Fund, the Directing Chair Fund, the Philippe-Casgrain Fund, the Creation and Technology Fund or the Suzanne-Grossmann Fund according to the nature of the donor designation. Tangible capital assets Tangible capital assets acquired are recorded at cost. Amortization Tangible capital assets are amortized on a straight-line basis over their estimated useful lives at the following annual rates: Rates Buildings Furniture, equipment and automotive equipment Computer equipment Write-down When the Organization recognizes that a tangible capital asset no longer has any long-term service potential, the excess of net carrying amount of the tangible capital asset over its residual value is recognized as an expense in the statement of operations. Employee future benefits The Organization accrues its obligations under the defined benefit pension plan as the employees render the services necessary to earn the pension benefits. The Organization accrues its obligations under its defined benefit plans, net of the fair value of plan assets. The Organization determines its accrued benefit obligations with an actuarial valuation established separately for accounting purposes which uses the projected benefit method prorated on service and management's best estimate hypotheses at the actuarial valuation date. The accrued benefit obligation is based on the most recent actuarial valuation which is extrapolated at the financial position date. The total cost of the defined benefit pension plan includes the cost of services rendered during the period and the financial cost. They are recorded under Pension plan expense in the statement of operations. Remeasurement and other items, including the actuarial gains and losses related to the obligation, the difference between the actual returns on plan assets and the estimated returns reduced by the financial cost and the cost of past services, are directely recorded to other items and are presented separately in the statement of changes in fund balances. Remeasurement and other items are not reclassified in the statement of operations at a later date.
2% 25% 50%
12
National Theatre School of Canada Notes to Financial Statements July 31, 2014
2 - SIGNIFICANT ACCOUNTING POLICIES (Continued) Foreign currency translation The Organization uses the temporal method to translate transactions denominated in a foreign currency. Under this method, monetary assets and liabilities are translated at the exchange rate in effect at the financial position date. Non-monetary assets and liabilities are translated at historical exchange rates, with the exception of those recognized at fair value, which are translated at the exchange rate in effect at the financial position date. Revenues and expenses are translated at the exchange rate in effect on the date they are recognized. The related exchange gains and losses are accounted for in the operations for the year. 3 - INFORMATION INCLUDED IN CASH FLOWS The net change in working capital items is detailed as follows:
Trade and other receivables Prepaid expenses Trade payables and other operating liabilities Refundable deposits Government grants received in advance Contributions and deferred revenues
2014 $ (211,901) (92,587) (219,195) (1,010) (143,750) (282,865)
2013 $ (75,681) 6,955 75,345 (1,963) (698,273) (181,620)
(951,308)
(875,237)
2014 $ 4,600,000 440,000 50,000 20,000
2013 $ 4,600,000 440,000 50,000 20,000 2,000 2,000 1,000 1,000 1,000
4 - OPERATING GRANTS
Department of Canadian Heritage Ministère de la Culture et des Communications du Québec Ontario Ministry of Culture Conseil des arts de Montréal British Columbia Arts Council Department of Culture, Tourism and Healthy Living of New Brunswick Prince Edward Island Ministry of Tourism and Culture Manitoba Arts Council Nunavut
2,000 1,000 1,000 5,114,000
5,117,000
13
National Theatre School of Canada Notes to Financial Statements July 31, 2014
5 - PRIVATE DONATIONS NOT AFFECTED TO ENDOWMENT 2014 $ General Fund Individuals Businesses Foundations Bursary Fund Individuals Businesses Foundations Creation and Technology Fund Individuals Businesses
2013 $
104,440 116,815 133,184 354,439
112,880 101,181 101,589 315,650
25,690 10,000 14,802 50,492
18,120 14,784 32,904
1,000 32,000 33,000
1,520 35,000 36,520
437,931
385,074
2014 $ 905,239 770,400 49,320 29,225 8,081 32,531
2013 $ 1,248,765 740,350 49,380 34,441 18,147 43,223
6 - SELF-GENERATED REVENUE
Monument-National (Note 9) Student fees Audition fees Library subscriptions Rentals Other
1,794,796
2,134,306
7 - COMMUNITY FOUNDATIONS As of July 31, 2014, various community foundations were managing endowment funds which benefit the Organization. These funds, which include donations, are provided directly to a community foundation in the name of the Organization, or come from donations that the Organization has transferred to the community foundation with the agreement of the donors. Investments in endowments held in community foundations allow for the possibility of realizing the matching of endowment funding through government sources. During the fiscal year, the Organization transferred $250,000 to the Edmonton Community Foundation, $107,142 to the Toronto Community Foundation and $100,000 to the Foundation of Greater Quebec ($130,000 in 2013 to the Foundation of Greater MontrĂŠal and $107,142 remains to be paid as at July 31, 2013). Additionally, the Organization recognized $108,114 ($69,502 in 2013) as investment income from these endowment funds managed by the community foundations to benefit the Organization.
14
National Theatre School of Canada Notes to Financial Statements July 31, 2014
7 - COMMUNITY FOUNDATIONS (Continued) These funds transferred by the Organization are held at community foundations in perpetuity. The assets belong to the community foundations and the fund capital is kept permanently and increased in accordance with each community foundation's investment policies. Income from the Endowment Fund of these foundations will be paid to the Organization at least once a year. Should the Organization discontinue its operations, ownership of the fund will remain with the community foundation which will use the fund to benefit other charitable organizations with similar objectives. These funds have not been presented in the Organization’s financial statements because ownership lies with the community foundations. The Organization is only entitled to the investment income that is accounted for annually in the statement of operations. The fair value of investments held by the community foundations as at December 31 is as follows:
Fondation du Grand Montréal Edmonton Community Foundation Toronto Community Foundation Vancouver Foundation Community Foundation of Newfoundland and Labrador South Saskatchewan Community Foundation Winnipeg Foundation Fondation communautaire du grand Québec
2013-12-31 $ 3,454,702 1,076,410 528,865 455,407 204,337 95,830 115,646 102,873 6,034,070
2012-12-31 $ 2,634,944 705,390 465,705 409,610 194,231 92,801 91,580
2014 $
2013 $
4,594,261
8 - NET INVESTMENT INCOME
General Fund Investments measured at fair value Changes in fair value from unrestricted resources Transaction costs Loan Fund Investments measured at fair value Changes in fair value from internally restricted resources Transaction costs Capital Assets Fund Investments measured at fair value Changes in fair value from restricted resources (a) Transaction costs
43,419 43,419
83,720 (19,030) 64,690
26,603 (1,035) 25,568
22,234 (931) 21,303
827,463 (24,337) 803,126
787,310 (22,381) 764,929
15
National Theatre School of Canada Notes to Financial Statements July 31, 2014
8 - NET INVESTMENT INCOME (Continued)
Bursary Fund Investments measured at fair value Changes in fair value Earned on resources held for endowment and restricted for bursary purposes (a) Transaction costs Playwriting Chair Fund Investments measured at fair value Changes in fair value Earned on resources held for endowment and restricted for playwriting purposes (a) Transaction costs
Directing Chair Fund Investments measured at fair value Changes in fair value Earned on resources held for endowment and restricted for directing purposes (a) Transaction costs Philippe-Casgrain Fund Investments measured at fair value Changes in fair value Earned on resources held for endowment and restricted for teaching and voice coaching purposes (a) Transaction costs Creation and Technology Fund Investments measured at fair value Changes in fair value Earned on resources held for endowment and restricted for technology purposes (a) Transaction costs
2014 $
2013 $
1,365,446 (47,778) 1,317,668
1,239,355 (41,794) 1,197,561
50,402 (1,845) 48,557
42,082 (2,152) 39,930
315,478 (11,395) 304,083
296,522 (10,003) 286,519
19,057 (796) 18,261
16,106 (695) 15,411
174,647 (6,421) 168,226
97,197 (4,452) 92,745
16
National Theatre School of Canada Notes to Financial Statements July 31, 2014
8 - NET INVESTMENT INCOME (Continued)
Suzanne-Grossmann Fund Investments measured at fair value Changes in fair value Earned on resources held for endowment and restricted for theatre and cultural outing purposes (a) Transaction costs
2014 $
2013 $
40,096 (1,577) 38,519
17,583 (726) 16,857
2,767,427
2,499,945
(a) Investment income on $19,380,986 is externally restricted for different purposes and investment income on the remaining $2,257,346 is unrestricted. The total amount of net investment income from resources held for endowment purposes and restricted to specific funds is $2,792,589 for the year ended July 31, 2014 ($2,496,155 for the year ended July 31, 2013). 9 - MONUMENT-NATIONAL 2014 $ Revenues Rental of theatres and sales of goods and services Sponsorships Expenses Buildings Salaries Operating expenses Operations Salaries Events and front of house Services to the public Services to the producers Deficiency of revenues over expenses before amortization (a)
2013 $
786,739 118,500 905,239
1,084,765 164,000 1,248,765
107,578 381,171
121,485 382,955
385,557 57,320 71,238 256,104 1,258,968
434,025 58,559 89,216 324,327 1,410,567
(353,729)
(161,802)
(a) This deficiency of revenues over expenses before amortization represents the cost for the use of the Monument-National for training purposes. The expenses of the Monument-National are included in the General Fund expenses. 10 - INTERFUND TRANSFER In accordance with a Board of Directors' resolution, an amount of $3,387 was transferred from the General Fund to the Endowment Fund restricted to the Bursary Fund ($4,622 in 2013).
17
National Theatre School of Canada Notes to Financial Statements July 31, 2014
11 - TRADE AND OTHER RECEIVABLES 2014 $ General Fund Accounts receivable of the Monument-National (a) Accrued interest Student loans, without interest Sales taxes receivable Other Capital Assets Fund Accrued interest Bursary Fund Accrued interest Directing Chair Fund Accrued interest
2013 $
125,213 6,694 1,300 110,259 16,980 260,446
113,265 7,511 9,045 26,987 156,808
13,218
12,506
28,028
25,369
6,209
7,315
307,901
201,998
(a) Amounts owing from one customer represent 78% of total accounts receivable (84% in 2013). 12 - GOVERNMENT GRANTS RECEIVABLE 2014 $ General Fund Ministère de la Culture et des Communications du Québec Ontario Ministry of Culture Department of Canadian Heritage Current portion of grants receivable Capital Assets Fund Ministère de la Culture et des Communications du Québec (a) Long-term grants receivable Current portion of grants receivable
2013 $ 3,820
16,250 448,447 464,697
241,075 244,895
175,280 43,820 219,100
275,250 275,250
683,797
520,145
(a) The grant receivable is related to the long-term debt described in Note 19 to the financial statements.
Treasury bills
Other investments Equity funds Bond funds Limited partnership shares
Common shares Canadian public companies American public companies Foreign public companies
Bonds Other federal institutions Provincial Other provincial institutions Municipal Other municipal institutions Corporate
193,264 193,951
2,063,395
104,963 88,301
–
–
–
–
–
1,542,338 1,542,338
516,154
–
Cash
Money market securities maturing on September 2014
$ 687 –
Loan Fund
$ 4,903
General Administration
General Fund
13 - INVESTMENTS
July 31, 2014
National Theatre School of Canada Notes to Financial Statements
9,899,372
22,455 347,903
11,228 227,201 4,902,171
325,448
1,521,438 1,709,836 1,682,118 4,913,392
791,141 4,097,784
261,003 2,268,225 740,070 37,345
109,867
–
$ 430,426
Bursary Fund
215,973
884,735 1,032,919 1,013,684 2,931,338
453,592 1,702,662
963,744 248,100 37,226
–
–
$ 40,970
Capital Assets Fund
355,564
355,463
190,373 165,090
–
–
–
–
$ 101
Playwriting Chair Fund
2,381,462
4,491 84,942
80,451
322,127 415,501 436,858 1,174,486
111,099 513,378 117,241 15,831 27,992 216,568 1,002,109
–
–
$ 119,925
Directing Chair Fund
146,157
146,077
107,334 38,743
–
–
–
–
$ 80
PhilippeCasgrain Fund
1,398,166
1,397,554
1,023,673 373,881
–
–
–
–
$ 612
Creation and Technology Fund
298,094
297,970
219,646 78,324
–
–
–
–
$ 124
Restricted SuzanneGrossmann Fund
21,638,332
2,267,861 744,339 38,174 3,050,374
2,728,300 3,158,256 3,132,660 9,019,216
372,102 3,745,347 1,105,411 90,402 27,992 3,003,639 8,344,893
626,021
–
$ 597,828
Total
2014
Total
2013
20,193,502
2,079,890
1,557,666 522,224
2,410,959 2,520,414 3,288,706 8,220,079
311,723 3,120,060 1,325,587 81,950 28,361 3,185,434 8,053,115
1,013,910
19,981
$ 806,527
18
19
National Theatre School of Canada Notes to Financial Statements July 31, 2014
13 - INVESTMENTS (Continued) Shares Allocation by industry segment
Energy Finances Industries Telecommunications Consumer discretionary Consumer goods Material Health Information technology Other Community service
$ 1,629,518 1,531,028 1,192,294 1,191,767 890,940 723,437 637,861 594,718 568,724 41,777 17,152 9,019,216
2014 % 18.07 16.98 13.22 13.21 9.88 8.02 7.07 6.59 6.31 0.46 0.19 100.00
2013 % 14.57 16.34 11.43 11.43 14.74 9.59 6.88 7.93 5.48 0.72 0.89
$ 1,197,889 1,343,570 939,555 939,417 1,211,912 788,383 565,273 652,074 450,495 59,077 72,434 8,220,079
100.00
Allocation by geographic sector
Canada United States United Kingdom France Other
$ 2,728,300 3,158,256 450,327 696,521 1,985,812 9,019,216
2014 % 30.25 35.02 4.99 7.72 22.02 100.00
2013 % 29.33 30.66 6.88 7.73 25.40
$ 2,410,959 2,520,414 565,492 635,047 2,088,167 8,220,079
100.00
14 - TANGIBLE CAPITAL ASSETS
Capital Assets Fund Land School buildings Monument-National building Furniture and equipment Automotive equipment Computer equipment
2014
2013
Cost
Accumulated amortization
Net carrying amount
Net carrying amount
$
$
$
$
2,968,676 8,171,929 18,918,557 2,466,670 22,595 574,440
2,531,234 8,129,306 2,251,302 22,595 494,251
33,122,867
13,428,688
2,968,676 5,640,695 10,789,251 215,368
2,968,676 3,413,177 11,093,177 194,031
80,189
28,436
19,694,179
17,697,497
As at July 31, 2014, the trade payables and other operating liabilities include an amount of $530,503 for the acquisition of tangible capital assets.
20
National Theatre School of Canada Notes to Financial Statements July 31, 2014
15 - BANK LOAN The bank loan for an authorized amount of $300,000 ($300,000 in 2013) is unsecured, bears interest at prime rate plus 1.5% (1.5% in 2013) (4.5%; 4.5% in 2013) and is negotiable in March 2015. The bank loan is unused as at July 31, 2014 and 2013. The Organization also entered into a temporary line of credit agreement with the National Bank of Canada for an authorized amount of $1,500,000 bearing interest at the base rate of 3% per year. This loan is payable no later than December 1, 2015, with the objective of serving as temporary financing of one of the Organization’s fixed assets investment. This line of credit will be converted to a term loan upon completion of the work (Note 19). 16 - TRADE PAYABLES AND OTHER OPERATING LIABILITIES 2014 $ General Fund Trade payables Salaries payable Vacations payable Benefits payable Other
2013 $
755,716 10,872 53,006 81,404 11,392
309,567 84,891 55,578 33,274 10,630
912,390
493,940
Government remittances total $47,629 as at July 31, 2014 (nil as at July 31, 2013). 17 - GOVERNMENT GRANTS RECEIVED IN ADVANCE Government grants received in advance represent unused resources which, as a result of external restrictions, are intended to cover the General Fund's operating expenses for the coming year. 2014 $ Balance, beginning of year 272,750 Amount recognized as revenue (272,750) Amount received relating to the following year Ministère de la Culture et des Communications du Québec 110,000 Ontario Ministry of Culture Conseil des arts de Montréal 18,000 Prince Edward Island Ministry of Tourism and Culture 1,000 Balance, end of year
129,000
2013 $ 971,023 (971,023) 220,000 33,750 18,000 1,000 272,750
21
National Theatre School of Canada Notes to Financial Statements July 31, 2014
18 - CONTRIBUTIONS AND DEFERRED REVENUES Contributions and deferred revenues are unexpended resources to be used to cover operating expenses in the coming year. Changes in the balance of these contributions and deferred revenues are as follows: 2014 2013 $ $ Deferred revenues Tuition fees Balance, beginning of year 23,710 Amount received relating to the following year 22,226 Amount recognized as revenue (23,710) Balance, end of year – 22,226 Deferred contributions Balance, beginning of year Amount received relating to the following year Amount recognized as revenue Balance, end of year
1,012,672 702,142 (1,007,233) 707,581 729,807
1,170,582 457,575 (615,485) 1,012,672 1,012,672
19 - LONG-TERM DEBT 2014 $ General Fund Ministère de la Culture et des Communications du Québec "Soutien aux équipements culturels" program Current portion of long-term debt – Capital Assets Fund Ministère de la Culture et des Communications du Québec "Soutien aux équipements culturels" program "Aide aux immobilisations" program (a) Current portion of long-term debt
219,100 219,100 (43,820) 175,280 175,280
2013 $
3,820 (3,820) –
12,330 262,920 275,250 (275,250) – –
22
National Theatre School of Canada Notes to Financial Statements July 31, 2014
19 - LONG-TERM DEBT (Continued) (a) A grant from the Ministère de la Culture et des Communications du Québec was obtained during the year ended July 31, 2009 under the "Aide aux immobilisations" program relating to the financing of a portion of the costs to increase the population's access to the property, services and activities in the cultural field, through the implementation of quality cultural equipment that complies with current professionalism criteria. This grant is by way of undertaking of payment of capital and interest of a term loan of an original amount of $438,200. This loan, contracted by the Organization, is secured by a comfort letter signed by the Ministère de la Culture et des Communications du Québec, bears interest at a rate of 5.61% and is repayable in biannual instalments of $21,910 from January 2015 to January 2019. As at July 31, 2014, the balance of this term loan and the grant by way of undertaking of payment totals $219,100 ($262,920 in 2013). The instalments on long-term debt for the next years are $43,820 in 2015, 2016, 2017, 2018 and 2019. These instalments are covered by subsidies from the Ministère de la Culture et des Communications du Québec. In 2013, the Organization signed a financing agreement for a $1,500,000 term loan that will be paid out no later than December 1, 2015 and will be used to repay the bank loan described in Note 15. The loan bears interest at 4.77%, will be for a 10-year term and principal and interest payments of $57,476 calculated on a 20-year period will be payable semi-annually. At the end of the 10-year term, the loan balance must be reimbursed in full. Contribution agreements have been signed with the minister de la Culture et des Communications du Québec and the minister of Canadian Heritage. Subject to the terms of the agreements, the two levels of government will each contribute a maximum of $1,500,000 towards financing the Organization’s renovation projects. The provincial government’s contribution will be used to service the debt, while the federal government’s contribution is receivable upon presentation of supporting documents.
23
National Theatre School of Canada Notes to Financial Statements July 31, 2014
20 - ENDOWMENT FUND 2014
Bursary Fund
Playwriting Chair Fund
Directing Chair Fund
PhilippeCasgrain Fund
Creation and Technology Fund
$
$
$
$
$
Externally restricted Balance, beginning of year Donations Balance, end of year
5,262,151 182,462 5,444,613
Internally restricted Balance, beginning of year Donations Interfund transfer (Note 10) Balance, end of year
1,218,369 10,587 3,387 1,232,343
Total
6,676,956
178,051
867,000
178,051
867,000
106,100 6,300 112,400
893,266 379,833 1,273,099
SuzanneGrossmann Fund
Total
$
$
234,936 10,000 244,936
300,000
–
300,000
178,051
1,167,000
–
–
112,400
7,541,504 578,595 8,120,099 1,518,369 10,587 3,387 1,532,343
–
1,273,099
244,936
9,652,442
SuzanneGrossmann Fund
Total
$
$
2013
Bursary Fund
Playwriting Chair Fund
Directing Chair Fund
PhilippeCasgrain Fund
Creation and Technology Fund
$
$
$
$
$
Externally restricted Balance, beginning of year Donations Balance, end of year
5,028,313 233,838 5,262,151
Internally restricted Balance, beginning of year Donations Interfund transfer (Note 10) Balance, end of year
1,211,625 2,122 4,622 1,218,369
Total
6,480,520
178,051
867,000
178,051
867,000
99,800 6,300 106,100
497,433 395,833 893,266
85,878 149,058 234,936
300,000
– 178,051
300,000 1,167,000
– 106,100
– 893,266
– 234,936
6,756,475 785,029 7,541,504 1,511,625 2,122 4,622 1,518,369 9,059,873
24
National Theatre School of Canada Notes to Financial Statements July 31, 2014
21 - INTERNAL RESTRICTION Pursuant to resolutions of the Board of Directors in the last years, an amount of $1,800,487 of the balance of unrestricted funds in the General Fund was internally restricted. This amount is restricted to the repayment of the actuarial deficit of the defined benefit pension plan and risks. 22 - PENSION PLAN The Organization participated until 2013 with Canada's National Ballet School in a multi-employer defined benefit plan which was available to all permanent employees. On January 1, 2011, Canada’s National Ballet School indicated that it intended to withdraw from the multi-employer plan once it has received authorization from the Financial Services Commission of Ontario. During 2013, the Financial Services Commission of Ontario authorized the transfer of the assets of Canada’s National Ballet School. The amounts to transfer were approved by the employers in July 2013. Accordingly, the assets and the liabilities related to the employees of the Canada's National Ballet School were withdrawn from the pension plan in the year ended July 31, 2014 at their fair value on December 31, 2010. This withdrawal did not result in additional costs for the Organization since all of the costs related to a sponsor's withdrawal are at that sponsor's expense. Following the transfer, the pension plan is no longer a multi-employer defined benefit plan and the only participant is the National Theatre School of Canada. Accordingly, the pension plan is now a defined benefit plan and the Organization has accounted for the liability for employee future benefits in the year ended July 31, 2014. The Organization chose to early adopt Section 3463, Reporting Employee Future Benefits by Not-for-profit Organizations. The application of this standard is on a retrospective basis and has no impact on the comparative financial statements. The Organization measures its defined benefit obligations and the fair value of the plan assets on July 31 of each year for accounting purposes. The most recent actuarial valuation of the pension plan for funding purposes was done on December 31, 2013 and extrapolated for accounting purposes as at July 31, 2014. The funded status of the pension plan is as follows: $ Fair value of plan assets Defined benefit obligation Funded status – defined benefit liability
8,117,000 8,216,000 (99,000)
25
National Theatre School of Canada Notes to Financial Statements July 31, 2014
23 - CONTRIBUTED GOODS AND SERVICES The Organization has chosen not to recognize contributed goods and services. The Organization received a number of goods and services at no cost. The fair value of these goods and services, as determined by the sponsor, is $169,783 ($3,933 in 2013). 24 - FINANCIAL INSTRUMENTS Financial risks The Organization's main financial risk exposure is detailed as follows. Credit risk The Organization is exposed to credit risk regarding the financial assets recognized in the statement of financial position, other than investments in common shares of public companies and limited partnership shares. The Organization has determined that the financial assets with more credit risk exposure are government grants receivables, trade and other receivables, with the exception of sales taxes receivable, and mutual fund units since failure of any of these parties to fulfil their obligations could result in significant financial losses for the Organization. Additionally, some mutual funds also indirectly expose the Organization to credit risk. The credit risk regarding cash and money market securities is considered to be negligible because it is held by a reputable financial institution with an investment grade external credit rating. The credit risk related to bond investments is also considered negligible.
26
National Theatre School of Canada Notes to Financial Statements July 31, 2014
24 - FINANCIAL INSTRUMENTS (Continued) Market risk The Organization's financial instruments expose it to market risk, in particular, currency risk, interest rate risk and other price risk, resulting from both its investing and financing activities: – Currency risk: Currency risk is the risk that the fair value or future cash flows of the financial instruments will fluctuate because of changes in foreign exchange rates. The Organization is exposed to currency risk as a result of investments, amounts receivable on disposal of investments, interest and dividends receivable, cash and amounts payable on acquisition of investments denominated in foreign currencies. Fluctuations of the Canadian dollar compared to these currencies could have a positive or negative impact on the fair value of these assets and liabilities. The assets and liabilities denominated in foreign currencies are as follows:
U.S. dollar Euro Yen Australian dollar Pound sterling Swiss franc Singapore dollar Swedish krone Danish krone Hong Kong dollar Norwegian krone
2014 $ 4,225,543 1,421,007 381,102 115,189 361,122 143,943 8,077 165,070 21,835 6,842,888
2013 $ 3,873,639 1,518,251 294,123 156,724 278,722 131,908 20,143 67,878 112,884 13,812 15,580 6,483,664
Mutual fund units are also exposed, although indirectly, to currency risk as they can include currency investments; – Interest rate risk: The Organization is exposed to interest rate risk with respect to financial assets and liabilities bearing fixed and variable interest rates. Bond investments, money market securities and long-term debt bear interest at a fixed rate and the Organization is, therefore, exposed to the risk of changes in fair value resulting from interest rate fluctuations. The bank loan bears interest at a variable rate and the Organization is, therefore, exposed to the cash flow risk resulting from interest rate fluctuations. The temporary line of credit bears interest at a fixed rate and the Organization is, therefore, exposed to the risk of changes in fair value resulting from interest rate fluctuations.
27
National Theatre School of Canada Notes to Financial Statements July 31, 2014
24 - FINANCIAL INSTRUMENTS (Continued) Additionally, some mutual funds also indirectly expose the Organization to interest rate risk; – Other price risk: The Organization is exposed to other price risk due to investments in common shares of public companies, limited partnership shares and mutual fund units since changes in market prices could result in changes in fair value or cash flows of these instruments. Additionally, some mutual funds also indirectly expose the Organization to other price risk. Liquidity risk The Organization's liquidity risk represents the risk that the Organization could encounter difficulty in meeting obligations associated with its financial liabilities. The Organization is, therefore, exposed to liquidity risk with respect to all of the financial liabilities recognized in the statement of financial position. Carrying amount of financial assets by category The carrying amount of the Organization's financial assets that are measured at amortized cost totals $1,872,142 ($1,883,714 as at July 31, 2013), whereas the carrying amount of financial assets measured at fair value totals $21,040,504 ($19,386,975 as at July 31, 2013). Guaranteed financial liabilities As at July 31, 2014, the carrying amount of guaranteed financial liabilities is $219,100. 25 - COMMITMENTS The Organization entered into long-term lease agreements expiring until June 2018, which call for lease payments of $339,487 for the rental of equipment, maintenance services and the rental of a storage space. Minimum lease payments for the next years are $156,626 in 2015, $143,372 in 2016, $23,778 in 2017 and $15,711 in 2018.