2014 2015
— 56th Annual Report
ent-nts.ca
2
TABLE OF CONTENTS
3
A Theatre School Anchored in its Community
5 6 8 10
Board of Directors
Message from the Chair
Message from the CEO
Programs, Candidates, Students, and 2015 Graduates
21
Community Foundations Accounts
22
Bursary Funds and Community Engagement and Student Program’s Fund
27
Message from the Minister of Canadian Heritage and Official Languages Annual Report 2014-2015 Coordination: Stéphanie Brody — Translation: John Detre — Copy Editing: Heather Macdougall — Photos: Maxime Côté (exception Christine Bourgier: photo of Bernard Amyot, p. 6) — Design: Écorce — Graphic Integration: Norman Terrault
28
Financial Statements
2
A THEATRE SCHOOL ANCHORED IN ITS COMMUNITY — The National Theatre School of Canada (NTS) has been a preeminent Canadian theatre school for over 50 years, fostering generations of celebrated artists. Located in Montreal and deeply anchored in artistic communities across the country, the School offers high-level, rigorous, professional training programs in Acting, Production, Set and Costume Design, Playwriting, and Directing, in both English and French. NTS trains passionate cultural leaders who work towards the renewal of the discipline and who shape the future of theatre in Canada and abroad.
THE MISSION OF THE NATIONAL THEATRE SCHOOL OF CANADA — The National Theatre School of Canada works to increase the recognition, reach, vitality, and development of the theatre arts by providing programs of the highest quality and reputation. The School trains artists to contribute immediately to their respective professional communities, while offering creative learning experiences to Canadians at large. To accomplish this mission, NTS aims to: – Select the most talented students through a rigorous process of auditions across the country; – Offer rigorous programs in both official languages, enabling its artists to launch and sustain professional careers at the highest level of their chosen industry; – Attract the best teachers in Canada and, on occasion, from overseas, all recognized professional artists; – Develop training and learning approaches that meet the contemporary realities of the theatre industry and that promote inclusivity and innovation; – Serve as an example in the cultural sector of forward thinking, adaptability, and dynamism. — The National Theatre School is a private, non-profit institution. It holds a permit from the Ministère de l’Éducation, de l’Enseignement supérieur et de la Recherche du Québec. 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.
RENOWnED NTS ALUMNI — The National Theatre School has trained over 2,000 theatre and performing arts professionals. The quality of its training is measured by the high percentage of placement of its students (95% of NTS graduates obtain professional contracts directly associated with their training upon graduating) and the recognition they receive from their peers. As an example, our students and graduates received more than 105 awards and distinctions in 2014. — The achievements of NTS graduates, in theatre as well as in film, television, opera, and other performing arts, both in Canada and abroad, are a testament to the strength and impact of their work. Alumni who have been recognized for their key contributions in recent years 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, Judith Thompson, and Kenneth Welsh, to name just a few.
3
4
PATRON
BOARD OF DIRECTORS AS OF JULY 31, 2015
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
Chair Bernard Amyot, QC Treasurer Simon Dupéré, QC Secretary Linda Caty, QC
MEMBERS OF THE CORPORATION AS OF JULY 31, 2015
EXECUTIVE MANAGEMENT COMMITTEE
Members Alan Bleviss, USA Richard Brott, ON Kathryn Brownlie, ON Alberta Cefis, ON David J. Daniels, ON Terrie-Lynne Devonish, ON Camilla Holland, MB J. Edward Johnson, QC Brenda Jones Kinsella, BC Jean-Hugues Lafleur, QC Joan Richardson, MB Paul Robillard, QC Jodi White, ON
Members Herbert C. Auerbach*, BC Jean Pol Britte* Tullio Cedraschi, QC Gil Desautels, QC Kaaren Hawkins, MB Gordon P. Jones, NF 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 Caroline Mulroney-Lapham, ON Marissa Nuss, QC Eleanore Romanow, SK Patricia S. Rubin, ON Nalini Stewart, ON Yvon Turcot*, QC
CEO Gideon Arthurs
Artistic Director of the English Section Alisa Palmer
*Life Governor
Artistic Director of the French Section Denise Guilbault
Public Funders from August 1, 2014 to July 31, 2015 THE NATIONAL THEATRE SCHOOL OF CANADA RECEIVES OPERATING GRANTS FROM GOVERNMENT SOURCES ACROSS CANADA. THEY REFLECT THE INTEREST AND FIRM LEVEL OF SUPPORT THE SCHOOL CONTINUES TO ELICIT FROM COAST TO COAST. WE THANK :
NTS IS A MEMBER OF
National Theatre School of Canada 5030 Saint-Denis Street, Montreal, Quebec, H2J 2L8 514.842.7954 or 1.866.547.7328 (Canada & USA) info@ent-nts.ca — ent-nts.ca
5
Message from the CHAIR Winds of Change — Gideon Arthurs’ appointment as CEO in August 2014 marked a milestone in the history of the National Theatre School of Canada. Gideon has brought a fresh outlook and exciting new ideas to the School. On behalf of the entire Board, let me say that it has been our great pleasure to welcome Gideon to NTS. I can report that we have been working together in a climate of mutual acceptance and a shared desire to scale new heights.
Bernard Amyot, Ad. E. Chair of the Board of Directors
— With his youthful energy, his clear, forward-looking vision, and his deep-seated respect for the School’s proud traditions and history, Gideon has swiftly grasped the essence of the School’s mission and begun charting a new course for the future. — Over the last year the NTS Board of Directors, its management, and its teaching and administrative teams have worked hard, under Gideon’s leadership, to develop projects that will lay the foundation for a new training model for the theatre professionals of tomorrow. I am very pleased with the result: we took a prompt and efficient look at NTS’s future and a number of new initiatives are already underway. — Our new model rests on an unprecedented level of interconnectedness between NTS and the communities in which it is involved. It will set us apart from the competition and help NTS make a landmark contribution not only to professional theatre but to Canadian society as a whole. — The cornerstones of our philosophy are our four new values: transparency, flexibility, collaboration, and customer service. These values will drive innovation and creativity in both teaching and management, and guide the Board in its governance practices going forward. — In one highlight of the reflection process on the School’s direction, the members of the Board took part in a panel discussion on theatre education in Canada, moderated by Gideon, during the Professional Association of Canadian Theatres (PACT) annual conference. Afterwards, the Board hosted a well-attended reception for the 200 or so PACT members present at the Young Centre for the Performing Arts. Our visit to Toronto was an opportunity for NTS Board members to network with key figures in Canada’s theatre community from both large institutional theatres and emerging companies. — I am also very proud to see NTS’s reputation continue to grow at home and especially abroad. One noteworthy event was the release of the short film It’s Not You, written and directed by Don McKellar and starring the 2015 graduates of the NTS Acting program. The film had its world premiere in September 2015 at the prestigious Toronto
6
Message from the CHAIR
International Film Festival. In 2014–2015 we also formed a new partnership between the School’s French-language section and the Conservatoire national supérieur d’art dramatique (CNSAD) in Paris. The partnership will kick off this coming November with a very promising exchange between students in the two schools’ acting programs. — Meanwhile, the various committees of the Board of Directors have continued to work assiduously. For example, the Finance and Investment Committee advises the School’s management of the endowment funds that will support the many projects spawned by the School’s new vision. — This year we again posted very strong financial results. In an arts world where uncertainty reigns, NTS can once again take pride in its robust financial health. I would like to express our special gratitude to the Slaight Family Foundation, which increased its generous support to NTS to $1.05 million. The money is used to help NTS students gain a foothold in the professional world. — In April 2015, we mourned the passing of James de B. Domville, who served as the very first Administrative Director of the National Theatre School of Canada, from its foundation in 1960 until 1963, and was subsequently named NTS Governor for Life. We were also saddened to learn, in the same month, of the passing of Michael Baylin, NTS Governor from 1988 to 2003. The National Theatre School has lost two long-standing and loyal friends. — To close, I would like to welcome two new members to the National Theatre School Board of Directors: Terrie-Lynne Devonish, Chief Compliance Officer for North America at Aon Canada Inc., and Camilla Holland, General Manager of the Royal Manitoba Theatre Centre. Our new colleagues’ unique skillsets will be valuable assets to NTS governance. Let me also extend my sincere thanks to all the Board members who have continued to selflessly and generously support the School, bringing their diverse range of talents to the table to ensure that NTS continues to grow and thrive.
—
Bernard Amyot, Ad. E.
7
Message from the CEO Strength, flexibility, and commitment — This may be the last message of this kind I can write with any sort of objectivity, so completely immersed do I feel in my newfound community at the National Theatre School of Canada. The strength of the NTS family is such that as students, teachers, and administrators come and go, we maintain a united sense of who we are and what our ultimate mission is. This dedication was certainly demonstrated over the past year, as we experienced exciting transformations across the organization. Gideon Arthurs Chief Executive Officer
— Without exaggeration, I am astonished by what we have accomplished in only a year. With this in mind, I wish to share with you three important things I have learned about the National Theatre School during my first year as CEO, with my outsider’s credentials barely intact. — First, I can say without a doubt that my predecessor, Simon Brault, has built here a legacy that will last for a very long time. His passion for NTS was remarkable, and his accomplishments are too many to list. I can say that I inherited a school that is perfectly positioned for these current times, built on a foundation of complementary strengths that position us as a leading and innovating arts organization in this country. We are at once anchored in tradition but committed to responding to new opportunities and challenges with flexibility and openness. We are both deeply invested in the success of each individual student and dedicated to the growth of our community. We are rooted in our Montreal home, all the while expanding a rich network of alumni that reaches from coast to coast to coast, and to far away shores. We have the organizational and financial capacity to continue evolving. In fact, Mr. Brault’s greatest legacy was to build the strength NTS requires to start thinking about fundamental change, to answer the question of what a 21st-century theatre training institution should look like. — Secondly, I witnessed firsthand that the difference between NTS and other training organizations is its flexibility and capacity to do. A spirit of enterprise, invention, adaptation, and ambition are in the water here; our students will graduate with these qualities in their DNA, absorbed by osmosis from the unrelenting pace of the School. From short film projects premiering at the Toronto International Film Festival to exchange programs with the Conservatoire national supérieur d’art dramatique de Paris, from motion-capture training— thanks to a partnership with videogame giant Ubisoft—to students attending a conference on Manitoulin Island, from epic-scale productions on our largest stage at the MonumentNational to one-on-one readings in a stairwell, NTS never stops. — Add to this the completion of a major renovation project in the summer of 2014, an important administrative restructuring, and an overhaul of our visual identity, and you get some sense of what we are capable of. And it isn’t the volume that is most impressive. What is remarkable is the care and rigour with which each and every one of these under
8
Message from the CEO
takings is approached. No opportunity is too small, no challenge is too great. Our artistic teams, led by Alisa Palmer and Denise Guilbault, and comprised of an army of artists (the teacher–student ratio at NTS is 2 to 1), work tirelessly in pursuit of excellence, supported by a small but mighty team of administrators and production staff at the School and the Monument-National. These are the role models our students learn from. — Lastly, our team sees the work they do as both a responsibility and a privilege. We all understand that what makes our work possible is the relentless support of others. The members of our Board of Directors—who within the past 18 months have hired a new CEO, contributed to several important strategic documents, approved a comprehensive strategic plan that will guide the organization through to 2020, and are moving forward a significant governance reform effort—are more deeply committed to their work than any other board I have seen. Our donors—like the Slaight Family Foundation, which increased its support to the School by 50% this year to create new professional development opportunities for students—are steadfast while always pushing us to go further. Most importantly, the Canadian public, through the generous support of Canadian Heritage and the Ministère de la Culture et des Communications du Québec, are our most important stakeholders. For that support, we must not only hold ourselves to the very highest ethical standards and most responsible fiscal practices, but also help to train artists who see their craft as a civil service to be performed for the greater good of Canadian society. — Strength, flexibility, commitment: these are the defining characteristics of the National Theatre School. As we enter the second year of my mandate, we are pursuing an ambitious agenda that will not only strengthen our existing programs, but explore initiatives that will open new pathways to the School for artists, educators, and the general public. We will work assiduously to build a school that is increasingly relevant to the whole of Canada, works more harmoniously with its professional community, asks important and difficult questions about the future of theatre, and is more reflective of this diverse country, all the while carrying on NTS’s tradition of responsible management and sustainability. — In the following pages, I invite you to read the financial statements as of July 31, 2015, which reflect the School’s overall financial vitality, and details from each of our nine training programs, as well as an update for the past year from the Development Office.
—
Gideon Arthurs
9
Acting program
10
PROGRAMS, CANDIDATES, STUDENTS, AND 2015 GRADUATES
ACTING Under the direction of Alisa Palmer — The National Theatre School provides powerful and unparalleled training for actors. The Acting program integrates voice, movement, and text work to holistically expand the actor’s range. Classical techniques form the basis of a training that exposes the young artist to a wide array of texts, forms, and styles ranging from devised theatre to acting for the screen (TV, film, and web). In an intimate and personalized setting, students are guided by influential figures of contemporary Canadian and international theatre who are actively engaged in their community. — In January 2015, 283 candidates applied to the Acting program. In September 2015, 37 students were registered in the Acting program, across all 3 cohorts.
2015 Graduates Thomas Barnet Daniel Ellis Rebecca Gibian Humberly Gonzalez Shelagh Haney Cynthia Hicks Emma Laishram Dustin Luck Diana Luong Devin MacKinnon Erik Ivan Mrakovcic Giacomo Sellar
Edmonton Toronto Montreal Fort McMurray Toronto Edmonton Halifax Sault Ste-Marie Ottawa Charlottetown Halifax Oakville
Interprétation (Acting program, French section) Under the direction of Denise Guilbault Charlotte Aubin Montreal Laurent-Antoine Bélanger Arthabaska Aurélie Brochu Deschênes Longueuil Maxime Dugas Longueuil Tommy Joubert Trois-Rivières Maxime Lepage Gatineau Léo Loisel Lannion Élizabeth Marcoux-Bélair Laval Alice Moreault Montreal Clara Prévost Dubé Lasalle Mounia Zahzam Blida
Alberta Ontario Quebec Alberta Ontario Alberta Nova Scotia Ontario Ontario Prince Edward Island Nova Scotia Ontario
Quebec Quebec Quebec Quebec Quebec Quebec France Quebec Quebec Quebec Algeria
11
Playwriting program
12
PROGRAMS, CANDIDATES, STUDENTS, AND 2015 GRADUATES
PLAYWRITING Under the direction of Brian Drader — The Playwriting program reveals each writer’s unique voice, while developing their imagination, intellect, and creative process. An array of writing projects, workshops, and classes allow students to discover the rhythms, tone, and style that best serve their plays. Through class work, discussion, critical analysis, and exposure to a broad variety of styles and forms, both classical and contemporary, the Playwriting program works to deepen the student’s understanding of the inner workings of a story, in theatre and other mediums. — In January 2015, 14 candidates applied to the Playwriting program. In September 2015, 6 students were registered in the Playwriting program, across all 3 cohorts.
2015 Graduates Elena Belyea Clifford Cardinal
Edmonton Toronto
Écriture dramatique (Playwriting program, French section) Under the direction of Diane Pavlovic Gabriel Charlebois-Plante Saint-Lazare Jean-François Rochon Québec City
Alberta Ontario
Quebec Quebec
13
Directing program
14
PROGRAMS, CANDIDATES, STUDENTS, AND 2015 GRADUATES
DIRECTING Under the artistic direction of Alisa Palmer and the associate direction of Rose Plotek — The National Theatre School’s 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. The program offers an exceptional opportunity for involvement in core theatre disciplines, including acting, design, production, and new play development. Directors work with experienced Canadian and international directors, actors, playwrights, and designers, developing their individual practices through hands-on training. — The Directing program is biennial. In January 2015, the program was not open to new applications. In September 2015, 2 students were registered in the Directing Program.
Mise en scène (Directing program, French section) Under the direction of Robert Bellefeuille The next graduates in Mise en scène will receive their certificate in 2016.
15
Set and Costume Design program
16
PROGRAMS, CANDIDATES, STUDENTS, AND 2015 GRADUATES
SET AND COSTUME DESIGN – SCÉNOGRAPHIE Under the direction of François St-Aubin — The Set and Costume Design program trains costume and set designers with the skills to work in a range of disciplines, such as theatre, dance, opera, and the circus arts. This bilingual program brings together Anglophone and Francophone students from across Canada and beyond. By collaborating on productions staged by both the English and French sections of NTS, students experience a wide range of theatrical practices and leave the School as graduates who offer invaluable artistic versatility. — In January 2015, 13 English-speaking candidates and 19 French-speaking candidates applied to the Set and Costume Design – Scénographie program. In September 2015, 9 English-speaking students and 13 French-speaking students were registered in the Set and Costume Design – Scénographie program, across all 3 cohorts.
2015 Graduates Lauren Acheson Catherine Goerner Potvin Carlan Lonsdale Alexandra Lord Xavier Mary Philippe Massé Brad Murphy Lorena Trigos
Edmonton Montreal Saskatoon El Paso La Ferté-Bernard Montreal Cape Breton Mexico City
Alberta Quebec Saskatchewan United States France Quebec Nova Scotia Mexico
17
Production program
18
PROGRAMS, CANDIDATES, STUDENTS, AND 2015 GRADUATES
PRODUCTION Under the direction of Andrea Lundy — The Production program trains students in Production Management, Technical Direction, Stage Management, Stage Electrics/Lighting Design, Sound Systems/Sound Design, and Video Systems/Video Design. Production students learn their craft from seasoned professionals in a stimulating environment, complete with up-to-date technology and professional equipment offered on both NTS campuses: the Monument-National and the Michel and Suria Saint-Denis Pavilion. Core elements of the program include working with design teams, dialoguing with directors, finding innovative solutions, excelling in technical and management skills, and creating a rigorous yet harmonious working environment. — In January 2015, 26 candidates applied to the Production program. In September 2015, 24 students were registered in the Production program, across all 3 cohorts.
2015 Graduates Jessica Alexander John Cann Bruce Lambie Andrew Scriver Emlyn VanBruinswaardt Victoria Wang Christopher Wardell Laura Warren
Toronto New Minas Montreal Peterborough Montreal Victoria Orangeville Regina
Ontario Nova Scotia Quebec Ontario Quebec British Columbia Ontario Saskatchewan
Production (Production program, French section) Under the direction of Louise Roussel Audrey Blouin Pointe-Claire Quebec Jeanne Desrochers Joliette Quebec Alex Gauvin Saint-Bruno-de-Montarville Quebec Charlotte Gervais Longueuil Quebec Dominique Hawry Laval Quebec Benjamin Huppé St-Basile-le-Grand Quebec Pauline Schwab Laxou France
19
UPDATE FROM THE DEVELOPMENT OFFICE
— Over the course of this past year, NTS has continued to focus on building strong relationships with its extended family of donors and corporate partners while continuing to receive payments on pledges made during the successful 50 th anniversary Revealing Talent campaign. — The School has secured some important new donations, most notably from longtime friend and patron of NTS, Ada Slaight, who has promised a gift of $150,000 a year over the next seven years, through the Slaight Family Foundation. This donation, which marks a 50% increase in the foundation’s giving, will support new professional development opportunities for NTS students. The Slaight Fund also helps the School provide resumes and professional headshots for all its students in their final year of study, and the Ada Slaight Prize rewards a graduating student who demonstrates leadership and empathy in working with colleagues in both English and French. — Set and costume designer Jenepher Hooper, who passed away in January 2015, bequeathed approximately $2 million to NTS in support of students enrolled in the Set and Costume Design program. Ms. Hooper was herself a 1967 alumna of the program. Her legacy will live on through the Jenepher Hooper Fund, which will support young artists from across the country in perpetuity. — Over the coming year, NTS will continue to approach corporations, foundations, and individuals for their support in helping the School build its renewed vision of a revitalized theatre training model. This includes initiatives around core training, new residency programs, and community engagement initiatives. — NTS would like to take this opportunity to thank all of its donors for their generous and invaluable support.
20
COMMUNITY FOUNDATION ACCOUNTS
The following reflects the market value of the NTS endowed funds held at Community Foundations across the country.
Market Value Dec. 31, 2014 ($)
Payout to NTS 2014 - 2015 ($)
Foundation of Greater Montreal
3,632,271
109,160
Edmonton Community Foundation
1,397,954
43,057
Toronto Community Foundation
865,831
21,763
Vancouver Foundation
474,078
16,134
Foundation of Newfoundland and Labrador
208,047
7,160
Fondation QuĂŠbec Philanthrope
206,550
-
Winnipeg Foundation
135,600
2,978
99,601
3,355
7,019,932
203,607
South Saskatchewan Community Foundation Total
21
Bursary Funds and Community Engagement and Student Program’s Fund
22
Fund
Accumulated Donations as of July 31, 2015 ($)
Bursaries for 2014-2015
Jenepher Hooper
974,622
-
Joseph Bleviss Memorial
315,373
9,100
Cirque du Soleil
260,125
7,500
J.W. McConnell Family Foundation
200,000
5,800
National Bank
200,000
3,900 5,500
Honorable Pauline-McGibbon
189,343
Power Corporation
175,000
5,100
Canada Mortgage and Housing Corporation
150,000
4,300
TransCanada PipeLines
140,000
4,000
Alumni
132,419
3,800
Eric Steiner
125,650
3,600
Québec
118,340
3,400
Bruno Gerussi
105,895
3,000
BMO Financial Group
100,000
2,900
Barbara & John Poole
100,000
2,900
RBC Royal Bank
100,000
2,900
Hydro-Québec
96,000
2,800
Enbridge
90,900
2,600
TD
90,000
2,600
Cogeco
69,500
1,800
G.R.A.-Rice
67,500
2,000
Carol & David Appel
63,205
1,800
Simon Brault & Louise Sicuro
62,357
1,800
Michel & Suria Saint-Denis
62,000
1,800
Rogers Communications
60,000
1,700
Alberta
59,950
1,700
Walter Carsen
58,000
1,700
Kahanoff Foundation
55,000
1,600
Bram & Bluma Appel
51,323
1,500
Barrick Heart of Gold
50,000
1,400
Caisse centrale Desjardins
50,000
1,400
Canada Post Corporation
50,000
1,400
CIBC
50,000
1,400
Cliff Minshull
50,000
1,400
Gaz Métro
50,000
1,400
Onex Corporation
50,000
1,400
Solomon Jack Safian
50,000
1,400
Eaton Foundation
46,141
1,300
Ada Slaight
45,357
1,300
Fund
Accumulated Donations as of July 31, 2015 ($)
Bursaries for 2014-2015
Nova Scotia
36,000
1,000
Burrowes Family
35,000
1,000
Michel Tremblay
34,078
1,000
Robert E. Landry
32,800
900
Denise Pelletier
31,000
900
Norman & Margaret Jewison Charitable Foundation
31,000
800
Nalini Stewart & Family
30,518
900
Donald & Murray Davis
30,000
900
Arthur & Esther Gelber
29,700
800
Imperial Tobacco Canada Ltd.
29,000
800
Monique Mercure
28,798
800
S.M. Blair Family Foundation
27,950
800
American Express
25,500
700
Craig Foundation
25,000
700
Rio Tinto Alcan
25,000
700
Bernard Roy
25,000
700
Seagram Company Ltd.
25,000
700
Saskatchewan
24,706
700
Patricia & David Rubin Family
24,200
700
25th Anniversary Gala
22,500
700
Petro-Canada
22,500
700
Birks Family Foundation
22,000
600
George Wesley
22,000
600
Jodi White
21,935
600
Sam Sniderman & Janet Mays
21,650
600
Brenda Jones Kinsella
21,320
600
Manitoba
21,000
600
Desjardins
20,743
600
Allard Foundation
20,000
600
Axor Monument-National
20,000
600
Chawkers Foundation
20,000
600
J.A. DeSève
20,000
600
Luc Plamondon
19,976
600
Patricia M. Moore
19,100
500
Britte-Moreno
18,675
500
Cleather Family
18,600
500
Jean Besré
17,844
500
Somer Alberg
17,150
500
Gil Desautels
15,560
500
Bursary Funds and Community Engagement and Student Program’s Fund
23
Bursary Funds and Community Engagement and Student Program’s Fund
24
Fund
Accumulated Donations as of July 31, 2015 ($)
Bursaries for 2014-2015
Jean-Louis Roux TNM
16,520
J. Edward Johnson & Sharon Vance Family
15,940
500 500
Peter & Shelagh Godsoe
15,427
400
J. Armand Bombardier Foundation
15,000
400
Fednav Ltd.
15,000
400
Metro
15,000
400
Paterson Foundation
15,000
400
Pratt & Whitney Canada
15,000
400
SNC-Lavalin
15,000
400
Francine Racette & Donald Sutherland
15,000
400
Tecolote Foundation
15,000
-
Adrian Merchant Macdonald & Donald S. Macdonald
14,640
400
Yvon Turcot
14,300
400
Eleanore Romanow
14,100
400
Rothmans Benson & Hedges Inc.
13,000
400
Johanna & Cameron Mitchell
12,200
400
Jacqueline & Derek Oland
12,200
400
Tom Carew
11,830
300
Hayden/Sime
11,700
300
Jean Claude & Penelope Baudinet
11,500
300
Kaaren & Kerry Hawkins
11,500
300
Mary & Herb Auerbach
11,200
300
New Brunswick
11,049
300
Laura Elsie MacMillan
11,000
300 300
Paul Robillard
10,974
Assia De Vreeze
10,825
300
IPSCO
10,700
300
Kathryn & Brian Brownlie
10,360
-
Francine Émond et Charles Maher
10,250
-
John Codner
10,107
300
Atomic Energy of Canada Ltd.
10,000
300
Bell Mobility
10,000
300
Canadian Pacific
10,000
300
Celanese Canada
10,000
300
CN
10,000
300
Bernard G. Côté
10,000
300
Emera
10,000
300
Empire Life Insurance Company
10,000
300
Ernst & Young
10,000
300
Fund
Accumulated Donations as of July 31, 2015 ($)
Bursary Funds and Community Engagement and Student Program’s Fund
Bursaries for 2014-2015
Luba Goy
10,000
300
Hamber Foundation
10,000
300
Hunt Oil Company
10,000
300
J.D. Irving Ltd.
10,000
300
Henry White Kinnear Foundation
10,000
300
John Labatt Foundation
10,000
300
D'Arcy Levesque
10,000
300
Lévesque Beaubien Geoffrion
10,000
300 300
McLean Foundation
10,000
George Cedric Metcalf Charitable Foundation
10,000
300
Moosehead
10,000
300
Nova Chemicals
10,000
300
David Peacock
10,000
300
Nancy G. Power
10,000
300
Productions Benoit Brière inc.
10,000
300
George Gibbons Ronalds Harris
10,000
300 300
RSA
10,000
Diana & Irving Schwartz
10,000
300
Alvin Segal
10,000
300
Shaw Communications
10,000
300
Kayla Shoctor
10,000
300 300
Sunwapta Broadcasting
10,000
Universal Studios Canada
10,000
300
Velan
10,000
300
Yves-Étienne-Banville
10,000
-
August-Schellenberg
6,526
-
Sub-total - Bursary Funds
6,456,951
153,800
Tullio Cedraschi Fund
105,100
-
Bernard Amyot Fund
15,600
-
Sims Family Fund Sub-Total - Awards Funds Interfund Transfer Sub-Total - Restricted Externally
11,100
-
131,800
-
(8,610)
-
6,580,141
-
National Theatre School of Canada
504,257
14,600
NTS Governors and members
723,075
24,200
1,227,332
38,800
8,611
-
Sub-Total - Bursary Funds Interfund Transfer Sub-Total - Restricted Internally
1,235,943
-
Total Endowment Bursary And Awards Funds
7,816,084
192,600
25
Bursary Funds and Community Engagement and Student Program’s Fund
Direct Bursaries
Bursaries Allocated in 2014-2015
Ada Slaight
20,000
Peter Dwyer/Canada Council
10,000
BMO Financial Group
5,000
Scotia Bank
5,000
Roasters Foundation
4,000
IODE
3,000
Nonnie Griffin
3,000
Peter Eldred
1,000
Norman & Margaret Jewison Charitable Foundation
1,000
Leo Ciceri/Stratford Festival Society
951
Monty Schnieder
500
Yves-Étienne Banville (in memoriam)
400
Kathryn Brownlie
400
August Schellenberg (in memoriam)
100
Donna McLaurin
100
Sub-Total - Direct Bursaries
54,451
Direct Bursaries from Community Foundation Accounts
Foundation of Greater Montreal
1,572
Vancouver Foundation
1,604
Sub-Total - Community Foundation Bursaries Total Bursaries
National Theatre School Awards
46,986 294,037
Awarded ($)
Ada Slaight Prize (Graduate)
5,000
Tullio Cedraschi Award (Graduate)
5,000
Bernard Amyot Prizes for Emerging Teachers
1,000
Sims Family Prize for Teaching Excellence Grand Total Awards
26
43,810
Toronto Foundation
450 11,450
National Theatre School of Canada Financial Statements July 31, 2015
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 - 26
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, 2015 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, 2015 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 28, 2015
1
CPA auditor, CA public accountancy permit no. A117472
$
$
457,409 1,893,984 90,922 55,262 7,611,577
457,409 1,893,984
90,922 42,829 7,599,144
211,133 41,297 111,536 321,861 26,084 227,602 1,346,994 620,545 193,416 68,051
347,000 7,589,026
211,133 41,297 111,536
321,861 26,084 227,602 1,346,994
620,545 193,416 68,051
347,000 7,589,026 22,551
50,576 98,586
50,576 98,586
12,433
120,777 458,736 35,981 6,218 285,428
120,777 458,736 35,981 6,218 285,428
10,118
2,877,665 139,540
2,877,665 139,540
–
5,114,000
$
Total
195,914
235,000 7,194,598
662,543 167,563 62,867
357,749 29,771 186,570 1,258,968
217,881 36,114 151,407
49,224 131,057
77,030 376,101 24,221 17,759 181,288
2,809,802 161,683
58,290 68,987 7,390,512
354,439 1,794,796
5,114,000
$
Total
2014
General Administration
2015
5,114,000
12,433 12,433
Loan Fund
General Fund
The accompanying notes are an integral part of the financial statements.
Excess (deficiency) 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, 2015
National Theatre School of Canada Operations
4,500
10,338 10,338
$
111,888
117,820 185,820
68,000
$
Creation and Technology Fund
7,596
19,652 19,652
$
SuzanneGrossmann Fund
46,986 1,563,038 1,902,525
150,000 142,501
$
Total
(249,398)
720,165
672,700
305,951
14,968
7,814
188,025
26,490
5,838
4,500
73,932
111,888
12,056
7,596
718,121
1,184,404
464,239
160,689
26,490
214,515 214,515
$
PhilippeCasgrain Fund
160,689
7,814
22,782 22,782
$
Directing Chair Fund
559,476
305,951
46,986 857,164 978,651
74,501
$
Bursary Fund
Playwriting Chair Fund
559,476
320,767 470,767
150,000
$
Capital Assets Fund
2015
3,029,193
1,152,563
453,957
160,432
538,174
49,824 2,698,440 4,181,756
1,350,000 83,492
$
Total
2014
Restricted
1,418,928
–
1,418,928
1,418,928
$
Total
2015
589,182
457,142
457,142
1,046,324
1,046,324
$
Total
2014
Endowment (Note 20)
4
$
–
(193,118)
183,000
1,993,605
193,118
1,800,487
$
Unrestricted
10,118
General Fund Restricted (Note 21)
The accompanying notes are an integral part of the financial statements.
Fund balances, beginning of year Excess (deficiency) of revenues over expenses Remeasurements and other items (employee future benefits) Interfund transfer (Note 21) Fund balances, end of year
Year ended July 31, 2015
National Theatre School of Canada Changes in Fund Balances
206,305
12,433
193,872
$
Loan Fund
2,199,910
183,000
22,551
1,994,359
$
Total
1,994,359
(3,387)
(224,000)
195,914
2,025,832
$
Total
2014
General Administration
2015
23,457,403
(249,398)
23,706,801
$
Capital Assets Fund
3,922,184
672,700
3,249,484
$
Bursary Fund
192,333
14,968
177,365
$
Playwriting Chair Fund
1,404,679
188,025
1,216,654
$
Directing Chair Fund
40,403
5,838
34,565
$
PhilippeCasgrain Fund
382,319
73,932
308,387
$
Creation and Technology Fund
55,093
12,056
43,037
$
SuzanneGrossmann Fund
29,454,414
718,121
28,736,293
$
Total
2015
28,736,293
3,029,193
25,707,100
$
Total
2014
Restricted
11,071,370
1,418,928
9,652,442
$
Total
2015
9,652,442
3,387
589,182
9,059,873
$
Total
2014
Endowment (Note 20)
5
6
National Theatre School of Canada Cash Flows Year ended July 31, 2015
2015 $ OPERATING ACTIVITIES Excess of revenues over expenses of the general administration and restricted funds Non-cash items Remeasurements and other items (employee future benefits) Employee future benefit liability Employee future benefit asset 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 Investments receivable 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.
740,672 183,000 (99,000) (45,000) 720,165 (987,434) 666,126 1,178,529 13,392,326 (16,125,271) 353,560
2014 $
3,225,107 (224,000) 99,000 698,606 (2,094,497) (845,310) 858,906
(1,673,989) (4,053,374)
14,414,286 (13,764,619) (105,998) (457,142) (2,164,785) (2,078,258)
1,180,562 (43,820) 1,418,928 358,517 2,914,187 39,342 39,315
319,438 (59,970) 1,046,324 (163,652) 1,142,140 (77,212) 116,527
78,657
39,315
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 Fund, without interest Advance from Bursary 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) Employee future benefit asset (Note 22)
ASSETS Current Cash Trade and other receivables (Note 11) Prepaid expenses Advance to General Fund, without interest 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
July 31, 2015
National Theatre School of Canada Financial Position
206,305 206,305 206,386
3,777,363
81
81
1,993,605 1,993,605
1,783,758
1,783,758
9,748 12,110 754,399
367,564 21,375 618,562 81
206,386
3,777,363
45,000
206,386
3,418,606
313,757
81 21,998 4,215 4,150 7,451 4,563 1,367 1,644
–
$
$
78,657 160,857 28,774
Loan Fund
General Fund
General Administration
25,154,681
23,457,403
18,617,500 4,839,903
1,697,278
131,460
43,820 1,565,818
21,998
1,500,000
25,154,681
4,698,437 20,120,535 131,460
193,820 204,249
10,429
$
Capital Assets Fund
3,926,399
3,283,473 638,711 3,922,184
4,215
4,215
4,215
3,926,399
3,887,616
38,783
9,748
29,035
$
Bursary Fund
196,483
192,333
192,333
4,150
4,150
4,150
196,483
196,483
–
$
Playwriting Chair Fund
1,412,130
1,404,679
1,404,679
7,451
7,451
7,451
1,412,130
1,406,534
5,596
5,596
$
Directing Chair Fund
Director
44,966
40,403
40,403
4,563
4,563
4,563
44,966
44,966
–
$
PhilippeCasgrain Fund
383,686
382,319
382,319
1,367
1,367
1,367
383,686
383,686
–
$
Creation and Technology Fund
56,737
55,093
55,093
1,644
1,644
1,644
56,737
56,737
–
$
Restricted SuzanneGrossmann Fund
11,071,370
9,535,427 1,535,943 11,071,370
–
–
11,071,370
11,059,260
12,110
12,110
$
Endowment Fund
46,162,874
18,617,500 19,733,630 4,374,564 42,725,694
3,437,180
131,460
754,399 43,820 3,305,720
1,500,000 367,564 21,375 618,562
46,162,874
25,358,711 20,120,535 131,460 45,000
193,820 507,168
78,657 205,917 28,774
$
Total
2015
$
Total
2014
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
7
8
National Theatre School of Canada Notes to Financial Statements July 31, 2015
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 common shares, mutual funds and limited partnership shares 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, 2015
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. Assets, liabilities, revenues and expenses relating to support pilot programs and partnership opportunities to create the Artistic Residency program and the Engagement program, are reported in the Community Engagement and Student Program's Fund. The Endowment Fund presents resources received as endowments.
10
National Theatre School of Canada Notes to Financial Statements July 31, 2015
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, income from the interest in net income of mutual funds and limited partnership shares and changes in fair value. Interest income is recognized on a time apportionment basis. Dividend income is recognized when it is acquired. Income from the interest in net income of mutual funds and limited partnership shares is recognized upon distribution. 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 limited partnership shares 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.
11
National Theatre School of Canada Notes to Financial Statements July 31, 2015
2 - SIGNIFICANT ACCOUNTING POLICIES (Continued) 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. 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
2% 25% 50%
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. More specifically, the Organization recognizes its obligations under the defined benefit plan in the statement of financial position, net of the fair value of plan assets. The Organization determines the defined benefit obligation using a separate actuarial valuation prepared for accounting purposes, which is determined using the projected benefit method prorated on services and management's best estimates at the date of the complete actuarial valuation. The obligation balance is based on the most recent complete actuarial valuation which is extrapolated to the Organization's year end. The total defined benefit plan cost includes current service cost and finance cost and is recognized in the statement of operations under Pension plan expense.
12
National Theatre School of Canada Notes to Financial Statements July 31, 2015
2 - SIGNIFICANT ACCOUNTING POLICIES (Continued) Remeasurements and other items, including the actuarial gains and losses related to the obligation, the difference between the actual return on plan assets and interest income reduced by the financial cost and the cost of past services, are recorded separately in the statement of changes in fund balances. Remeasurements and other items are not reclassified in the statement of operations at a subsequent year. 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
2015 $ 101,984 65,153 (17,358) 2,193 489,562 24,592
2014 $ (105,903) (92,587) (219,195) (1,010) (143,750) (282,865)
666,126
(845,310)
2015 $ 4,600,000 440,000 50,000 20,000
2014 $ 4,600,000 440,000 50,000 20,000
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 Department of Culture, Tourism and Healthy Living of New Brunswick Prince Edward Island Ministry of Tourism and Culture Manitoba Arts Council
2,000 1,000 1,000
2,000 1,000 1,000
5,114,000
5,114,000
13
National Theatre School of Canada Notes to Financial Statements July 31, 2015
5 - PRIVATE DONATIONS NOT AFFECTED TO ENDOWMENT 2015 $ General Fund Individuals Businesses Foundations Bursary Fund Individuals Businesses Foundations Creation and Technology Fund Individuals Businesses
2014 $
172,095 188,430 96,884 457,409
104,440 116,815 133,184 354,439
37,550 18,000 18,951 74,501
25,690 10,000 14,802 50,492
68,000 68,000
1,000 32,000 33,000
599,910
437,931
2015 $ 993,318 784,381 43,320 28,465 21,194 23,306
2014 $ 905,239 770,400 49,320 29,225 8,081 32,531
6 - SELF-GENERATED REVENUE
Monument-National (Note 9) Student fees Audition fees Library subscriptions Rentals Other
1,893,984
1,794,796
7 - COMMUNITY FOUNDATIONS As of July 31, 2015, 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, no transfer was made in favor of community foundations ($250,000 to the Edmonton Community Foundation, $107,142 to the Toronto Community Foundation and $100,000 to the Fondation QuĂŠbec Philanthrope in 2014). Additionally, the Organization recognized $137,908 ($108,114 in 2014) 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, 2015
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 Québec Philanthrope
2014-12-31 $ 3,632,271 1,397,954 865,831 474,078 208,047 99,601 135,600 206,550 7,019,932
2013-12-31 $ 3,454,702 1,076,410 528,865 455,407 204,337 95,830 115,646 102,873 6,034,070
2015 $
2014 $
8 - NET INVESTMENT INCOME
General Fund Investments measured at fair value Changes in fair value from unrestricted resources 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
42,829
43,419
13,558 (1,125) 12,433
26,603 (1,035) 25,568
343,981 (23,214) 320,767
827,463 (24,337) 803,126
15
National Theatre School of Canada Notes to Financial Statements July 31, 2015
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
2015 $
2014 $
909,736 (52,572) 857,164
1,365,446 (47,778) 1,317,668
24,755 (1,973) 22,782
50,402 (1,845) 48,557
227,115 (12,600) 214,515
315,478 (11,395) 304,083
11,222 (884) 10,338
19,057 (796) 18,261
126,280 (8,460) 117,820
174,647 (6,421) 168,226
16
National Theatre School of Canada Notes to Financial Statements July 31, 2015
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
2015 $
2014 $
21,294 (1,642) 19,652
40,096 (1,577) 38,519
1,618,300
2,767,427
(a) Investment income on $21,733,719 is externally restricted for different purposes and investment income on the remaining $3,624,992 is unrestricted. The total amount of net investment income from resources held for endowment purposes and restricted to specific funds is $1,664,383 for the year ended July 31, 2015 ($2,792,589 for the year ended July 31, 2014). 9 - MONUMENT-NATIONAL 2015 $ 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)
2014 $
924,818 68,500 993,318
786,739 118,500 905,239
121,421 380,398
107,578 381,171
401,287 53,733 82,241 307,914 1,346,994
385,557 57,320 71,238 256,104 1,258,968
(353,676)
(353,729)
(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.
17
National Theatre School of Canada Notes to Financial Statements July 31, 2015
10 - INTERFUND TRANSFER In accordance with a Board of Directors' resolution and with donors' agreement, an amount of $529,000 was transferred from the Bursary Fund to the Community Engagement and Student Program's Fund. 11 - TRADE AND OTHER RECEIVABLES 2015 $ 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
2014 $
115,778 4,056 300 17,319 23,404 160,857
125,213 6,694 1,300 110,259 16,980 260,446
10,429
13,218
29,035
28,028
5,596
6,209
205,917
307,901
(a) Amounts owing from two customers represent 61% and 27% respectively of total accounts receivable (one customer represented 78% in 2014). 12 - GOVERNMENT GRANTS RECEIVABLE 2015 $ General Fund Ontario Ministry of Culture Department of Canadian Heritage Current portion of grants receivable Capital Assets Fund Department of Canadian Heritage Current portion Ministère de la Culture et des Communications du Québec (a) Current portion Long-term
–
2014 $ 16,250 448,447 464,697
150,000 43,820 131,460 325,280
43,820 175,280 219,100
325,280
683,797
(a) The grant receivable is related to the long-term debt described in Note 19 to the financial statements.
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
Money market securities maturing on September 2015
Treasury bills
Cash
13 - INVESTMENTS
July 31, 2015
3,418,606
–
–
1,027,496 1,027,496
1,680,456
206,386
206,016
115,013 91,003
–
–
–
–
$ 370
$ 710,654
–
Loan Fund
General Fund
General Administration
National Theatre School of Canada Notes to Financial Statements
11,176,589
26,590 387,908
11,966 251,743 4,698,437
361,318
1,895,616 1,942,264 1,768,038 5,605,918
782,042 2,371,037 943,426 38,977 55,682 525,027 4,716,191
–
89,924
$ 376,648
Bursary Fund
239,777
691,139 910,317 925,400 2,526,856
174,159 1,573,781
66,924 877,744 416,312 38,642
–
249,934
$ 96,123
Capital Assets Fund
374,533
368,237
198,659 169,578
–
–
–
–
$ 6,296
Playwriting Chair Fund
2,573,534
5,318 94,636
89,318
343,674 478,351 435,647 1,257,672
246,862 487,403 158,412 16,543 27,786 130,230 1,067,236
–
39,949
$ 114,041
Directing Chair Fund
159,166
159,158
119,261 39,897
–
–
–
–
$ 8
PhilippeCasgrain Fund
1,920,786
1,918,018
1,405,987 512,031
–
–
–
–
$ 2,768
Creation and Technology Fund
301,674
300,105
219,393 80,712
–
–
–
–
$ 1,569
529,000
529,000
390,000 139,000
–
–
–
–
–
$
Restricted Community SuzanneEngagement Grossmann and Student Fund Program's Fund
25,358,711
3,138,726 1,032,221 43,874 4,214,821
2,930,429 3,330,932 3,129,085 9,390,446
1,095,828 3,736,184 1,518,150 94,162 83,468 1,856,912 8,384,704
1,680,456
379,807
$ 1,308,477
Total
2015
Total
2014
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
18
19
National Theatre School of Canada Notes to Financial Statements July 31, 2015
13 - INVESTMENTS (Continued) Shares Allocation by industry segment
Finances Energy Industries Telecommunications Consumer discretionary Health Information technology Consumer goods Material Community service Other
$ 2,090,591 1,280,727 1,240,520 1,239,528 950,933 753,673 682,685 679,211 449,687 11,883 11,008 9,390,446
2015 % 22.26 13.64 13.21 13.20 10.13 8.03 7.27 7.23 4.79 0.12 0.12 100.00
$ 1,531,028 1,629,518 1,192,294 1,191,767 890,940 594,718 568,724 723,437 637,861 17,152 41,777 9,019,216
2014 % 16.98 18.07 13.22 13.21 9.88 6.59 6.31 8.02 7.07 0.19 0.46 100.00
Allocation by geographic sector
Canada United States United Kingdom France Other
$ 2,930,429 3,330,932 470,320 700,592 1,958,173 9,390,446
2015 % 31.21 35.47 5.01 7.46 20.85 100.00
$ 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
14 - TANGIBLE CAPITAL ASSETS
Capital Assets Fund Land School buildings Monument-National building Furniture and equipment Automotive equipment Computer equipment
2015
2014
Cost
Accumulated amortization
Net carrying amount
Net carrying amount
$
$
$
$
2,968,676 9,104,629 18,918,557 2,654,503 22,595 600,428
2,712,339 8,507,677 2,352,035 22,595 554,207
34,269,388
14,148,853
2,968,676 6,392,290 10,410,880 302,468
2,968,676 5,640,695 10,789,251 215,368
46,221
80,189
20,120,535
19,694,179
As at July 31, 2015, the trade payables and other operating liabilities include an amount of $3,035 ($530,503 as at July 31, 2014) for the acquisition of tangible capital assets.
20
National Theatre School of Canada Notes to Financial Statements July 31, 2015
15 - BANK LOAN The bank loan for an authorized amount of $300,000 ($300,000 in 2014) is unsecured, bears interest at prime rate plus 1.5% (1.5% in 2014) (4.2%; 4.5% in 2014) and is negotiable in March 2016. The bank loan is unused as at July 31, 2015 and 2014. 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 2.7% per year (3% in 2014). 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 2015 $ General Fund Trade payables Salaries payable Vacations payable Benefits payable Other
2014 $
146,640 35,947 58,036 117,298 9,643
755,716 10,872 53,006 81,404 11,392
367,564
912,390
Government remittances total $82,718 as at July 31, 2015 ($47,629 as at July 31, 2014). 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. 2015 2014 $ $ Balance, beginning of year 129,000 272,750 Amount recognized as revenue (129,000) (272,750) Amount received relating to the following year Department of Canadian Heritage 236,812 Ministère de la Culture et des Communications du Québec 330,000 110,000 Ontario Ministry of Culture 33,750 Conseil des arts de Montréal 18,000 18,000 Prince Edward Island Ministry of Tourism and Culture 1,000 Balance, end of year
618,562
129,000
21
National Theatre School of Canada Notes to Financial Statements July 31, 2015
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: 2015 2014 $ $ Deferred revenues Tuition fees Balance, beginning of year 22,226 Amount received relating to the following year 24,440 22,226 Amount recognized as revenue (22,226) Balance, end of year 22,226 24,440 Deferred contributions Balance, beginning of year Amount received relating to the following year Amount recognized as revenue Balance, end of year
707,581 563,844 (541,466) 729,959 754,399
1,012,672 702,142 (1,007,233) 707,581 729,807
19 - LONG-TERM DEBT
Capital Assets Fund Ministère de la Culture et des Communications du Québec "Aide aux immobilisations" program (a) Current portion of long-term debt
2015 $
2014 $
175,280 (43,820)
219,100 (43,820)
131,460
175,280
(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 July 2019. As at July 31, 2015, the balance of this term loan and the grant by way of undertaking of payment totals $175,280 ($219,100 in 2014).
22
National Theatre School of Canada Notes to Financial Statements July 31, 2015
19 - LONG-TERM DEBT (Continued) The instalments on long-term debt for the next years are $43,820 in 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.
1,218,369 10,587 3,387 1,232,343 6,676,956
Total
$
Internally restricted Balance, beginning of year Donations Interfund transfer (Note 10) Balance, end of year
$
Bursary Fund
5,262,151 182,462 5,444,613
Directing Chair Fund
Playwriting Chair Fund
Externally restricted Balance, beginning of year Donations Balance, end of year
1,167,000
178,051
7,287,084
178,051
–
867,000
178,051
1,167,000
300,000
300,000
867,000
$
300,000
178,051
–
867,000
178,051
300,000
867,000
178,051
Total
$
1,232,343 3,600 1,235,943
$
Internally restricted Balance, beginning of year Donations Balance, end of year
$
Bursary Fund
Directing Chair Fund
5,444,613 1,135,528 (529,000) 6,051,141
Playwriting Chair Fund
Externally restricted Balance, beginning of year Donations Interfund transfer (Note 10) Balance, end of year
20 - ENDOWMENT FUND
July 31, 2015
National Theatre School of Canada Notes to Financial Statements
112,400
–
106,100 6,300 112,400
$
PhilippeCasgrain Fund
114,200
–
114,200
112,400 1,800
$
PhilippeCasgrain Fund
1,273,099
–
893,266 379,833 1,273,099
244,936
–
234,936 10,000 244,936
$
SuzanneGrossmann Fund
Creation and Technology Fund
$
244,936
–
244,936
244,936
$
1,551,099
–
1,551,099
1,273,099 278,000
$
Creation and Technology Fund
–
–
–
$
Community Engagement and Student Program's Fund
529,000
–
529,000 529,000
$
Community SuzanneEngagement Grossmann and Student Fund Program's Fund
9,652,442
1,518,369 10,587 3,387 1,532,343
7,541,504 578,595 8,120,099
$
Total
2014
11,071,370
1,532,343 3,600 1,535,943
9,535,427
8,120,099 1,415,328
$
Total
2015
23
24
National Theatre School of Canada Notes to Financial Statements July 31, 2015
21 - INTERNAL RESTRICTION Pursuant to resolutions of the Board of Directors, an amount of $1,993,605 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 measures its defined benefit obligation 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 January 1, 2014 and extrapolated for accounting purposes as at July 31, 2015. The funded status of the pension plan is as follows:
Fair value of plan assets Defined benefit obligation Funded status – defined benefit asset (liability)
2015 $ 9,121,000 9,076,000 45,000
2014 $ 8,117,000 8,216,000 (99,000)
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 $536 ($169,783 in 2014). 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 receivable, 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, money market securities and Treasury bills is considered to be negligible because they are held by a reputable financial institution with an investment grade external credit rating. The credit risk related to bond investments is also considered negligible.
25
National Theatre School of Canada Notes to Financial Statements July 31, 2015
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 Swedish krone Danish krone Norwegian krone
2015 $ 4,432,174 1,580,518 372,557 77,645 291,207 72,944 136,072 15,507 6,978,624
2014 $ 4,225,543 1,421,007 381,102 115,189 361,122 143,943 8,077 165,070 21,835 6,842,888
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, Treasury bills 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 and the temporary line of credit bear interest at a variable rate and the Organization is, therefore, exposed to the cash flow risk resulting from interest rate fluctuations.
26
National Theatre School of Canada Notes to Financial Statements July 31, 2015
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 $1,901,012 ($1,872,142 as at July 31, 2014), whereas the carrying amount of financial assets measured at fair value totals $24,050,234 ($21,040,504 as at July 31, 2014). Guaranteed financial liabilities As at July 31, 2015, the carrying amount of guaranteed financial liabilities is $175,280. 25 - COMMITMENTS The Organization entered into long-term lease agreements expiring until September 2019, which call for lease payments of $305,642 for the rental of equipment, maintenance services and the rental of a storage space. Minimum lease payments for the next years are $181,606 in 2016, $59,028 in 2017, $52,727 in 2018 and $12,281 in 2019. 26 - COMPARATIVE FIGURES Certain comparative figures have been reclassified to conform with the presentation adopted in the current year.