NTS Annual Report 2012-2013 by École nationale de théâtre du Canada / National Theatre School of Canada

TWELFTH NIGHT

NATIONAL THEATRE SCHOOL OF CANADA

TRANSFORM YOUR PASSION INTO A PROFESSION

THE SCHOOL

The National Theatre School of Canada (NTS) stands out as one of the few conservatorytype arts training establishments in the world that unites all the theatre disciplines

under one roof. Established in 1960 and located in Montreal, the School offers training in Acting, Playwriting, Directing, Set and Costume Design, and Production – in both English and French.

The 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

EXPERIENCING THEATRE AS A Collaborative ART

E-mail: info@ent-nts.ca 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

and respect for all the artists implicated in the making of theatre. Classes and

performances take place at both the School and its public performance venue, the

Monument-National – 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 about 2,000 students, most of whom have become performing and visual 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 cultural asset, and many have gone on to great

careers such as 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.

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NATIONAL THEATRE SCHOOL OF CANADA

PAT RON

2012-2013

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, 2013

CH A IR

MEMBER S

Bernard Amyot, QC

T R E A SUR ER

Simon Dupéré, QC

SECR E TA RY Linda Caty, QC

MEMBER S

executive management committee 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 Denise Guilbault

Linda Black, AB Alan Bleviss, USA 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

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, 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 Marissa Nuss, QC Thomas Peacocke, C.M., AB Eleanore Romanow, SK * Jean-Louis Roux, C.C., QC Patricia S. Rubin, ON Jeff Sims, BC Nalini Stewart, ON * Yvon Turcot, QC

* Life Governor

PUBLIC FUNDERS FROM AUGUST 1, 2012 TO JULY 31, 2013

T HE N ATION A L T HE AT RE SCHOOL OF CA N A DA RECEIV ES 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. W E T H A NK :

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NATIONAL THEATRE SCHOOL OF CANADA

TABLE OF CONTENTS

Message from the Chair 4 Message from the CEO 6 Programs, candidates, students and 2013 Graduates 11 Revealing Talent Major Campaign 16 Community Foundation Accounts 19 Bursary Funds 20 Message from the Minister of Canadian Heritage and Official Languages 25 Financial Statements 26

Annual Report 2012-2013 Coordination : Maureen Veilly TRANSL ATION : Andrée McNamara-Tait Copy Editing : Heather M acdougall Photos : M a xime Côté ( back cover, pages 6, 11 to 15) and Christian Blais ( pages 4 and 10 ) Graphic Design : L aurent Pinabel Printing : Quadriscan Printed in October 2013

FSC ( p. 3)

NATIONAL THEATRE SCHOOL OF CANADA

Message FROM THE CHAIR

A COLLECTIVE ENDEAVOUR The desire to enrich our society by training a bold, capable, and versatile new generation of creative artists has been the fundamental objective of the National Theatre School of Canada (NTS) since its founding in 1960.

BERNARD AMYOT, Ad. E. Chair of the Board of Directors

As my second year as chairman comes to an end, I can proudly state that as a result of the combined efforts of the Board of Directors, Board of Governors, management, and staff, the School has successfully met the challenge of remaining relevant and maintaining its high standards and has lived up to its mission on all accounts.

and the Board of Governors

Today, we are publishing excellent financial results thanks to the enlightened support of governments and an unprecedented increase in private sector support. The remarkable success of our Revealing Talent campaign can be attributed to many people. I would like to thank the Governors and members of the Board of Directors for their generosity and concerted efforts throughout this campaign. I also applaud the active participation of the entire School community as well as our alumni who, by their performances and advocacy, have convinced a significant number of individuals, foundations and corporations to donate. I also wish to congratulate, on behalf of us all, four people who committed themselves fully to this campaign, making it a success that exceeded all our expectations: the co-chairs of the campaign, Louis Vachon and Gerald T. McCaughey, our Director of Development, Catherine Rideout, and, of course, Simon Brault, for his vision, guidance and direction in all aspects of this initiative which spanned five years. The Revealing Talent campaign also highlighted the truly national character of the School, as the donations and sponsorships we received came from every region across the country. Furthermore, this past year was marked by our efforts to develop the Schoolâ&#x20AC;&#x2122;s strategic plan that will guide it until the year 2020. I raise my hat to Linda Caty,

( p. 4)

NATIONAL THEATRE SCHOOL OF CANADA

Message FROM THE CHAIR

secretary of the Board of Governors, for having wisely steered the strategic planning committee which, along with the Schoolâ&#x20AC;&#x2122;s internal team, prepared the plan entitled The Future Intersects with the Present, submitted today. I would also like to pay special tribute to one of my illustrious predecessors, Mr. Bernard A. Roy, who passed away last March. Renowned for having played a major role as a builder of our institution, he was highly respected and admired by all of his colleagues and the entire School community. He left an enduring legacy of determination, commitment and perseverance that will inspire us all for many years to come. In closing, the School can boast of excellent financial health and, as I mentioned, an inspiring plan for the next seven years. The School is also abuzz with renewed enthusiasm: the arrival of Alisa Palmer as Artistic Director of the English section has enabled us to strengthen our training programs and usher in a new spirit of cooperation between our two sections. We have everything we need to pursue our collective endeavour and reach for new heights of excellence.

Bernard Amyot, Ad. E.

( p. 5)

NATIONAL THEATRE SCHOOL OF CANADA

MESSAGE FROM the ceo

THE HUMAN FACTOR A Promise Kept The last of our major commitments undertaken to celebrate the Schoolâ&#x20AC;&#x2122;s 50th anniversary has now been accomplished and even surpassed!

SIMON BRAULT, O.C., O.Q. CEO

Indeed, last July 31 marked the end of the Revealing Talent campaign, which surpassed its initial objective of $12 million by 17%. Launched at the height of the economic recession and in spite of the negative warnings from experts, this campaign enabled us to obtain 3.5 times more private funding than we have ever raised before. This is a remarkable achievement that will have long-term benefits for the School. The generosity of our donors has been channelled towards strategic priorities that will shape the future of our institution as well as that of theatre practice in general: artistic creation and technology, public engagement, diversity and new media. The creation of major endowment funds earmarked for these issues and the immediate injection of a portion of these donations into specific projects will help the School fulfill its ambition to remain an incubator of talent and a crucible for creating theatre here and now and from which will spring forth the theatre of tomorrow. I therefore join the chairman of our board, Bernard Amyot, in thanking and congratulating everyone who contributed to the success of this campaign. Our combined efforts have once again shown that it is possible to thwart even the most pessimistic predictions by relying on the powers of persuasion, perseverance and organization.

( p. 6)

NATIONAL THEATRE SCHOOL OF CANADA

MESSAGE FROM the ceo

The Dream Takes Shape 54% of the donations made to the major campaign have been or will be invested in perpetuity in our own endowment funds or those managed for our benefit by seven community foundations across Canada. Furthermore, approximately 10% of the amount collected has enabled us to cover the cost of the special activities and national communications campaign surrounding the 50th anniversary. The balance will be used to fund several projects related to training, acquiring equipment and renovating the buildings, as well as creating student bursaries and awards of excellence. This major injection of private funds, the stability of our grants and the very solid performance of our portfolios have strengthened the School’s financial and budgetary position, as reflected in our financial statements audited on July 31, 2013. All of our major funds (operating, building, bursaries, playwriting, directing, artistic creation, and technology) are in a surplus position. This augurs well for the future, as long as the markets remain stable and that governments renew their confidence in us. The state of the general fund shows that we finished last year with a surplus of $221,434. Most of this amount was allocated to the internal reserve fund intended to lessen the impact of the full accounting of the assets and liabilities of the School employees’ pension plan, which will be undertaken this year. It should be noted that this surplus, which amounts to 4% of our revenues, was generated thanks to the positive results of the Monument-National, an increase in donations and sponsorships, tight management of our cash flow, and strict control of all of our expenses. The 2012-2013 financial year was therefore excellent in all regards. At time of writing, we await the confirmation of the renewal of the three-year funding agreement from Canadian Heritage who provides 60% of our operating budget, while other public partners have confirmed their continuous support of the School’s mission. Moreover, the School’s main campus has been turned into a construction site thanks to investments made by the Ministère de la Culture et des Communications du Québec and Canadian Heritage. The objectives of this work is to update our buildings and equipment, prioritizing health, safety, adequate teaching conditions, and reducing our ecological footprint. We are also preparing to submit technical specifications to these two same ministries for the second and final phase of construction that will begin next spring.

( p. 7 )

NATIONAL THEATRE SCHOOL OF CANADA

MESSAGE FROM the ceo

Building the Future on our Present The most important task that I had to carry out during 2012-2013 was organizing a national recruitment campaign for a new artistic director of the English section. The process lasted four months and allowed us to take an in-depth look at the Canadian theatre landscape as it relates to the School’s current and past performance, the needs of the profession and, especially, the expectations in terms of training the next generation of creative artists, production specialists and actors. The large number of highly qualified candidates who applied for the position, the methodical and enlightened efforts of the selection committee (composed of respected artists) and the overwhelming wave of approval in the wake of Alisa Palmer’s appointment has resulted in the most positive boost to the School’s English section that I have witnessed over the past 30 years. The arrival of Alisa Palmer last January coincided with the return in force of Denise Guilbault at the head of the French section after a semester of exploration devoted to studying and reflecting on the state of theatre today and on the various training methods in Europe and Quebec. In order to rekindle the indispensable synergy between the School’s two training sections and strengthen the strategic and daily commitment to the School’s artistic and pedagogical considerations, its upper management was reconfigured and now features the two artistic directors and the CEO. One of the first preoccupations of the new management team was to fully participate in the final phase of the strategic planning process launched by the Board of Directors during the fall of 2012, a process to which I have been closely associated since the beginning, along with other members of the School’s team. Entitled The Future Intersects with the Present, this plan will guide us through to the year 2020, which will coincide with the School’s 60th anniversary. The analyses on which the plan is based as well as the strategic priorities and orientations that have been retained are at once visionary, demanding, daring, courageous, ambitious… and realistic. This realism is rooted in a deep conviction that our art will never allow us to overlook: the crucial human factor. To paraphrase French philosopher Edgar Morin: “In order to meet the challenge of a realistic utopia, we must think, live and act – individually and collectively – so that the future can be built by those who will live it.” That says it all!

Simon Brault, O.C., O.Q., FCPA, FCGA

( p. 8 )

NATIONAL THEATRE SCHOOL OF CANADA

MESSAGE FROM the ceo

YOU CAN DO WHATEVER YOU WANT

( p. 9)

NATIONAL THEATRE SCHOOL OF CANADA

DOMINIC CHAMPAGNE (ÉCRITURE DRAMATIQUE, 1987) AND PETER HINTON, RECIPIENTS OF THE 2012 GASCON-THOMAS AWARD. Introduced by LOUIS-CHARLES SYLVESTRE (Écriture dramatique, 2014) and SHANNON CURRIE (Acting, 2013).

( p. 10 )

NATIONAL THEATRE SCHOOL OF CANADA

PROGRAMS, CANDIDATES, STUDENTS AND 2013 GRADUATES

TWELFTH NIGHT

ACTING

Under the direction of Alisa Palmer

The NTS provides a strong formal base for the emerging actor, integrating Voice, Movement, and Acting, and focusing on a visceral understanding of action, subtext, and narrative truth. In January 2013, 335 candidates applied to the Acting Program. In September 2013, 35 students were registered in the Acting Program.

2 013 G raduates : BHOJANI, Sehar CURRIE, Shannon FITZPATRICK, Grace GARNEAU-MONTEN, Stephane GERHART, Darcy HO, Jeff JACKMAN-TORKOFF, Stephen LAVERCOMBE, Jesse MELONE, Alyx SHEPHERD-GAWINSKI, Adrian TRÉPANIER, Julie

Hamilton Toronto Edmonton Auckland New York Markham Richmond Hill Minneapolis Rocky Mountain House Toronto Saint-Jérôme

Ontario Ontario Alberta New Zealand United States Ontario Ontario United States Alberta Ontario Québec

Trenton Joliette Chicoutimi Jonquière Trois-Rivières Québec Montréal Montréal Montréal

Ontario Québec Québec Québec Québec Québec Québec Québec Québec

INTERPRÉTATION (FRENCH ACTING PROGRAM) Under the direction of Denise Guilbault BEAUDET, Geneviève BRUNEAU, Jade CARON, Isabel DESBIENS, Jérémie HUARD, Xavier LAGUEUX, Alexandre LÉVEILLÉ, Félix RÉGNIER, Laurence ROBITAILLE, Jade-Mariuka

( p . 11)

NATIONAL THEATRE SCHOOL OF CANADA

PROGRAMS, CANDIDATES, STUDENTS AND 2013 GRADUATES

YOU CAN DO WHATEVER YOU WANT

PLAYWRITING

Under the direction of Brian Drader

The Playwriting program aims to reveal and shape each writer’s unique voice, with a low teacher-to-student ratio that allows for an exceptional response to individual interests, needs, strengths and challenges. In January 2013, 19 candidates applied to the Playwriting Program. In September 2013, 6 students were registered in the Playwriting Program.

2 013 G raduate S : STONG, Jesse Richmond Hill TAYLOR, Step St. John’s

Ontario Newfoundland and Labrador

ÉCRITURE DRAMATIQUE (FRENCH PLAYWRITING PROGRAM) Under the direction of Diane Pavlovic BOURQUE, Pénélope PRADET, Benjamin

( p. 12)

Montréal Saint-Roch-des- Aulnaies

Québec Québec

NATIONAL THEATRE SCHOOL OF CANADA

PROGRAMS, CANDIDATES, STUDENTS AND 2013 GRADUATES

THREE SISTERS

DIRECTING

Under the artistic direction of Alisa Palmer Coordinator: Rose Plotek

Training for directors is rigorous and immersive. The NTS 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 September 2013, 2 students were registered in the Directing Program. The next graduating class of the Directing program will receive their certificates in 2014. MISE EN SCĂ&#x2C6;NE (FRENCH DIRECTING PROGRAM) Under the direction of Robert Bellefeuille The next graduating class of the French Directing program will receive their certificates in 2014.

( p. 13)

NATIONAL THEATRE SCHOOL OF CANADA

PROGRAMS, CANDIDATES, STUDENTS AND 2013 GRADUATES

HUMAN CANNON

SET AND COSTUME DESIGN – SCÉNOGRAPHIE Under the direction of Danièle Lévesque The NTS’ 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 2013, 29 English-speaking candidates and 28 French-speaking candidates applied to the Set and Costume Design – Scénographie Program. In September 2013, 12 English-speaking students and 12 French-speaking students were registered in the Set and Costume Design – Scénographie Program.

2 013 G raduates : GAMACHE, Odile GOPHER, Shlomit MATHIEU, Naomi SÉGUIN, Daniel SIMARD, Ann

( p. 14)

Mont-Laurier Tel Aviv Repentigny Pointe-Claire Longueuil

Québec Israel Québec Québec Québec

NATIONAL THEATRE SCHOOL OF CANADA

PROGRAMS, CANDIDATES, STUDENTS AND 2013 GRADUATES

MODEL WANTED

PRODUCTION

Under the direction of Andrea Lundy

The goal of this program is to support the development of creative leaders in the technical and managerial fields of theatre. Graduates go on to active careers in production, management, technical direction, stage management, and sound or lighting design. In January 2013, 21 candidates applied to the Production Program. In September 2013, 23 students were registered in the Production Program.

2 013 G raduates : HICKEY, Kaitlin ISELMOE, Emily KANTOR, Elizabeth LAFFOLEY, Crystal LEEKE, Andrew MINNES, Gal RUSS-HOGG, Alexander SUTROV, Christina

Regina Ottawa Ottawa Bathurst Beaconsfield Haifa Montréal Wailuku

Saskatchewan Ontario Ontario New Brunswick Québec Israel Québec United States

PRODUCTION (FRENCH PRODUCTION PROGRAM) Under the direction of Louise Roussel BASSE, Julie BOUCHARD, Maxime DUCHESNEAU, Sophie GRANGER, Mélanie LENEY-GRANGER, Antonia PAYETTE, Thomas ST-PIERRE, Maude WILLIAMSON, Kevin

Rochefort Longueuil Montréal Saint-Jean-sur-Richelieu Montréal Sherbrooke Montréal Maria

France Québec Québec Québec Québec Québec ( p. 15) Québec Québec

NATIONAL THEATRE SCHOOL OF CANADA

REVEALING TALENT MA JOR CAMPAIGN

Revealing Talent was created as a legacy of the 50th Anniversary of the National Theatre School of Canada. With a five year time frame in difficult economic times, and a goal of $12 million, Revealing Talent seemed improbable at best. However, with the concerted efforts of Campaign Co-Chairs Louis Vachon and Gerald T. McCaughey, as well as hard work by Staff, Board Members and Governors – 329 donors to Revealing Talent generated over $14 million for Students, Teachers and Special Projects. Most importantly, the School is able to look to the future with an objective in sight – greater diversity in our faculty and student body – as well as two new rich programs to positively impact our students’ training and careers: The Theatre Engaging Communities (TEC) program is now funded in perpetuity, providing production funding to emerging artists for productions that engage communities. Creation and Technology funds offer direct and endowed funding to ensure our students maximum opportunity for learning and earning as artists who offer creative excellence - not only in traditional theatre, but also across the variety of virtual platforms that engage our world today. To our Donors – we thank you and applaud. Bravo. Bravo. Bravo.

CASH GIF TS AND SPONSORSHIPS $1,000,000 or more

BELL MEDIA CIRQUE DU SOLEIL J.W. MCCONNELL FA MILY FOUNDATION

$ 500,000 to $ 999,999

CIBC N ATION A L BA NK SL AIGH T FA MILY FOUNDATION / A DA SL AIGH T

$ 250,000 to $ 499,999

Hydro - Québec Power Corporation of Canada RBC Foundation Robert R. Scales ( Honouring Suz anne Grossmann ) Sun Life Financial

$100,000 to $ 249,999

AGF M anagement Limited BMO Financial Group Caisse de dépôt et placement du Québec T ullio Cedraschi Corus Entertainment Enbridge Fondation S andra et A lain Bouchard Industrial A lliance Mouvement Desjardins Barbara Poole ScotiaBank TD

$ 50,000 to $ 99,999

A nonymous S.M. Blair Family Foundation A lan Bleviss Canada Council for the A rts Philippe Casgrain E JLB Foundation Let ko, Brosseau & Assoc. Inc. McLean Foundation Québecor Media Inc. Rio Tinto A lcan Patrick D. M. Stewart T elus Louis Vachon

$ 4 0,000 to $ 49,999 Cogeco Musagetes Foundation Standard Life

$ 30,000 to $ 39,999

Simon Brault & Louise Sicuro Simon Dupéré Norman & M argaret Jewison Charitable Foundation M anulife Financial One x Corporation

$ 25,000 to $ 29,999

Bernard A myot David & Carol A ppel Walter Carsen Centre national de Recherche et de Diffusion du Costume Fondation Céline et Jacques L amarre Rogers Communications Inc. Jay A lan Smith

$ 20,000 to $ 24,999

Richard Brott Burrowes Insurance Brok ers Brenda Jones Kinsella Patricia M. Moore Roasters Foundation W. G arfield W eston Foundation Jodi W hite

$15,000 to $19,999

BCLC Cole Foundation Foundation of Greater Montreal IODE - T he N ational Chapter of Canada Luc Plamondon

$10,000 to $14,999

Asper Foundation Herbert C. Auerbach François Barbeau Kathryn & Brian Brownlie Alberta G. Cefis Joan M. Cleather Hélène Gignac ( honouring Y ves-Étienne Banville) Kaaren & Kerry H aw k ins J. Edward Johnson & Sharon Vance Robert E. L andry D’Arcy Levesque Sheila M artin David Roffey Patricia & David Rubin Alvin Segal Family Foundation Jeff & L aurence Sims N alini Stewart ( p. 16 )

$7,000 to $ 9,999

Jean - Claude Baudinet Linda Caty Pamela Kendel- Goodale Adrian Merchant M acdonald M argaret M artinello Wolfgang Noethlichs Paul Robillard Rotman Family Foundation Bernard A . Roy

$ 6,000 to $ 6,999

Birks Family Foundation M arc Blondeau Caisse Desjardins de la Culture N ancy Morrison Y von Turcot

$ 5,000 to $ 5,999

Bennett Family Foundation Gil Desautels M arjorie & Gerry Eldred Jan and Bill H atana k a Family Fund Thomas Peacock e, C.M. Luc Pelletier Catherine Rideout & Stephen Huddart Zeller Family Foundation

$ 4,000 to $ 4,999

Hay Foundation Pierrette Lucas Bidyut K . M ajumdar Eleanore Romanow Sam Sniderman, C.M. Stratford Festival Succession de Jean Besré William & N ancy Turner Foundation

$ 3,000 to $ 3,999

Peter and Shelagh Godsoe Family Foundation Monty E. Schnieder

$ 2,500 to $ 2,999

Sara Charney François Dubeau Judith A . Gelber N ance Gelber Gordon P. Jones Jean -Hugues L afleur M arissa Nuss Heather Peterson

NATIONAL THEATRE SCHOOL OF CANADA

$ 2,000 to $ 2,499

John E. Carstairs Casgrain & Compagnie Limitée Fraser Elliott Foundation Monique Mercure, C.C. William Millerd, C.M. Robert Sherrin Stratege x Consultants Inc.

$1,500 to $1,999

Liana Dimarco Caroline Mulroney L apham Bernard L avoie Irena M alyholow k a Punda Mercantile Inc. Louise Rousseau August Schellenberg & Joan Karasevich

$1,000 to $1,499

9079- 6723 Québec inc. Stanley A léong Jean Ba zin BCF s.e.n.c.r.l. / LL P Paul Butler Cambic Ltd. Connect Hearing Michel Côt é M arc Deschamps, CA M arie Deschamps Y van Dupont David Forest Gilberte G agnon Phyllis L ambert Foundation Les Productions Roy Dupuis Inc. Dorothy M assimo Guy Mignault Glenn O’Farrell Esther S. Ondrack Pembrok e M anagement Ltd Pépiphonie inc. Gil Rémillard Joan Richardson Ian A . Soutar

$ 500 to $ 999

146559 Canada Inc. - Rock ette / Quai des brumes A ngelcare Inc. M arcia Babineau R aoul Bhaneja Sherry Bie M ary Hitch Blendick Viviane Brousseau Éric Bruneau Hugh Cameron Michael & Kim Davidman Sylvie Drapeau Edna Talent M anagement Ltd. Jean R. Fabi Luba Goy Denise Guilbault Élise Guilbault Inc. Heather Hume Intercom services immobiliers Ja ko Productions Inc. Brook e Johnson M acha Limonchik T heresa M ack ie A nita M ajumdar A ndré Meloche Michel Meloche St éphane Mongeau Guy N adon N ancy Pal k Michael Riley Peter Roberts Diana Schwartz Socié t é d’avocats Morency Linda Sorgini Inc. Michèle T hibert Jill-Yoko T surunaga

Julie Vincent Robert Walter & Jill Calder Richard Warman

Gifts to $ 499

David A bramowitz Patrick Allard Louis Allen Art Meets Commerce Mona H. Bandeen, C.M. Christopher Banks Jean Bard M arie-José Baron Frédérik e Bédard Stéphanie Belding M artin Bernard Trevor H. Bishop Linda Black M ario Bourdon M arylène Breault Stéphanie Brody Christine Bruba k er St éphane Brunelle Sean Caragata Pascale Charest A nnie Chè vrefils Kevin Collins Conser inc Claude Cournoyer Susan Coyne Jeff Cummings Louis Dandonneau David J. Daniels Ginette Dansereau Catherine De Sè ve Sasha Dominique M atthew Donovan Brian Drader Jasmine Dubé Caroline Dufresne Louisette Dussault Caroline Ferland Monique Forest Carole Fréchette Éveline Gélinas Great-W est Life Assurance Company Tiffanie Guffroy Lois M. H ardy Hélène Hayot Paul Hecht Joel Hechter M artha Henry Benoit Jolicoeur Michael Joy KCI Cynthia King A ndrée L achapelle Lee-A nne L ancaster L aurence Park Collegiate Institute René Leclerc Véronique Le Flaguais Jean - Claude Legal Guy Lemay Danièle Lé vesque G abriel Levesque Jacques L’Heureux Jane Litwack Gordon Livingstone Jason Long Lesley M acMillan Donald M acSween Claude M aher Peggy M ahon Tara M anuel Judith M artin Kari M atchette Barbra S. M atis Celia McBride ( p . 17 )

Kim McCaw Benoît McGinnis Donna McL aurin Denis Mercier Derek Metz Richard N adeau Christine ( Kik i ) Nesbitt Ben Nind Nirvana Chauffe Piscine Inc. Line Noël Jean Ouellet Danièle Panneton Robert Paradis A le x K . Paterson Francine Picard Claude Pichette Josh Phillips Progressive Strategies Ltd. Richard R amsay Carol-Serge Robichaud Guy Rodgers Priscillia Roger Francois Rolland Arthur Ross Jacques Rossi L awrie Rotenberg Louise Roussel Jean -Louis Roux, C.C. John J. Scales Reena Schellenberg Richard Soly Jennifer Spencer Peter A . Stern A ndrée McN amara Tait M arianne Thériault M arie-France Thibault Uncalled for Productions United Way/ Centraide M aureen Veilly Jacques Vézina Vins Philippe Dandurand Inc. Zephaniah Williams

GIF TS IN KIND SERVICES 3SD Industries Air Canada ART V Astral Media Inc. Barefoot Wine & Bubbly Camions A & R Dubois Can W est Media CBC Chanel HVAC Rentals Globe and M ail Karisma Audio k bs + p Canada L a Presse Moosehead Mu Queen Eliz abeth Hotel - Fairmont Socié té de transport de Montré al ( ST M ) Socié té du Vieux- Port de Montré al inc.

NATIONAL THEATRE SCHOOL OF CANADA

Revealing Talent raised more than $14,000,000 over a period of five years, creating a lasting legacy from our 50th anniversary. Of particular note, the NTS is more diverse through outreach and promotion. Now, our students and teachers reflect better our multicultural society. In addition, production funding – for works that engage the public in issues that are at the heart of our communities – is available to students and recent graduates. Significant investments have also been made in technology, ensuring our programs provide training for all stages, real or virtual. Thank you to all of our supporters. You have made this happen.

REVEALING TALENT MA JOR CAMPAIGN

PRIVATE FUNDING : DONATIONS & SPONSORSHIPS Gifts : R ecei v ed & Outstanding recei v ed

$ 9,6 0 2, 5 5 6 69 %

O utstanding $ 4, 4 0 2,6 36 31% A portion of donations realized − donations that have been invested in NTS endowed accounts housed at community foundations across Canada − resulted in matching funds provided by the Government of Canada (Endowment Incentives) and the Government of Quebec (Mécénat Placements Culture). Since the beginning of the Revealing Talent major campaign, $2,173,320 in matching funds have been received by the National Theatre School of Canada and our investments in community foundations have already reaped over $285,000 in payouts.

Gi v ing : Designations

G reatest N eeds $ 9 6 6 , 576

C reation and T echnology

$ 2,9 49, 25 5 21%

$ 1,135,78 5 9%

$ 2, 5 4 4,19 9

D irect G ifts $ 4,18 0,112 30%

18 % S tudent

T heatre E ngaging

16 %

$ 7,674,9 01

T eaching

Special P rojects

$ 2, 275,95 5

E ndowments 5 5%

D i v ersity and O ther

C ommunities ( T E C )

Gi v ing By T ype of Gift

Bursaries

S ponsorships and G ifts in - K ind $ 2,15 0,179

$ 1,9 8 3, 24 3 14 %

Sponsorships and G ifts in - K ind $ 2,15 0,179 15%

15%

T O TA L P R I VAT E D ON AT ION S R A I SED T O TA L P UBL IC M AT CHING F UND S R A I SED

$11,8 31,8 72

84 %

$ 2,173,3 2 0

16 %

JULY 31ST 2012 GRAND TOTAL FOR REVEALING TALENT $14 ,0 0 5,19 2 ( p. 18 )

NATIONAL THEATRE SCHOOL OF CANADA

Foundation of G reater M ontreal Edmonton Community Foundation Toronto Community Foundation Vancouver Foundation Foundation of N ewfoundland and L abrador S outh S as k atchewan C ommunity Foundation W innipeg Foundation T otal

M arket Value D ec . 3 1, 2 0 1 2 ($)

The following reflects the market value of our endowed funds held at community foundations across the country.

P ayout to N T S 2 0 11 - 2 0 1 3 ($)

COMMUNIT Y FOUNDATION ACCOUNTS

2,6 3 4,9 4 4 705,39 0 4 65,705 4 09,610 19 4, 231 92,801 91,5 80

70, 25 3 17,136 9,10 0 10,999 9,66 8 1,705 2,114

4 ,5 9 4 , 2 61

12 0,9 75

( p. 19)

Joseph Bleviss Memorial Cirque du Soleil J.W. McConnell Family Foundation Honorable Pauline-McGibbon Power Corporation Canada Mortgage and Housing Corporation TransCanada PipeLines 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 Michel & Suria Saint-Denis Rogers Communications Alberta Walter Carsen Kahanoff Foundation Simon Brault & Louise Sicuro Cogeco 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 National Bank

( p. 20 )

Bursaries allocated for 2 0 1 2 - 2 0 1 3 ( $ )

F und

Bursary Funds

ACCUMUL AT ED DON AT IONS as of J uly 3 1, 2 0 1 3 ( $ )

NATIONAL THEATRE SCHOOL OF CANADA

313,373 10,900 260,125 10,400 200,000 8,000 189,343 7,500 175,000 7,000 150,000 6,000 140,000 5,600 132,419 5,300 125,650 5,000 118,340 4,700 103,495 4,100 100,000 4,000 100,000 4,000 100,000 4,000 96,000 3,800 90,900 2,600 90,000 3,600 67,500 2,700 62,905 2,500 62,000 2,500 60,000 2,400 59,950 2,400 58,000 1,300 55,000 2,200 54,612 1,900 53,500 1,800 51,323 2,100 50,000 2,000 50,000 2,000 50,000 2,000 50,000 2,000 50,000 2,000 50,000 2,000 50,000 2,000 50,000 2,000 46,141 1,800 45,357 1,800 36,000 1,400 35,000 1,400 35,000 1,400

Michel Tremblay Denise Pelletier Donald & Murray Davis Nalini Stewart & Family Robert E. Landry Imperial Tobacco Canada Ltd. Monique Mercure S.M. Blair Family Foundation Arthur & Esther Gelber American Express Craig Foundation Seagram Company Ltd. Saskatchewan Norman & Margaret Jewison Charitable Foundation 25th Anniversary Gala Petro-Canada Birks Family Foundation George Wesley Patricia & David Rubin Family Sam Sniderman & Janet Mays Manitoba Desjardins Jodi White Allard Foundation Axor Monument-National Chawkers Foundation J.A. DeSève Luc Plamondon Britte-Moreno Cleather Family Patricia M. Moore Somer Alberg Jean Besré Jean-Louis Roux TNM J. Edward Johnson & Sharon Vance Family Brenda Jones Kinsella Gil Desautels J. Armand Bombardier Foundation Fednav Ltd. Metro Paterson Foundation

Bursaries allocated for 2 0 1 2 - 2 0 1 3 ( $ )

ACCUMUL AT ED DON AT IONS as of J uly 3 1, 2 0 1 3 ( $ )

F und

NATIONAL THEATRE SCHOOL OF CANADA

34,078 1,400 31,000 1,200 30,000 1,200 29,918 1,000 29,900 1,100 29,000 1,100 28,548 1,100 27,950 1,100 26,250 1,000 25,500 1,000 25,000 1,000 25,000 1,000 24,706 1,000 23,000 800 22,500 900 22,500 900 22,000 900 22,000 900 21,900 800 21,650 900 21,000 800 20,743 800 20,135 700 20,000 800 20,000 800 20,000 800 20,000 800 19,976 800 18,675 700 18,600 700 18,500 700 17,150 700 16,606 700 16,200 600 15,340 600 15,325 400 15,195 600 15,000 600 15,000 600 15,000 600 15,000 600

( p . 2 1)

Bursary Funds

Bursaries allocated for 2 0 1 2 - 2 0 1 3 ( $ )

F und

Bursary Funds

ACCUMUL AT ED DON AT IONS as of J uly 3 1, 2 0 1 3 ( $ )

NATIONAL THEATRE SCHOOL OF CANADA

Pratt & Whitney Canada 15,000 600 SNC-Lavalin 15,000 600 Donald Sutherland & Francine Racette 15,000 600 Tecolote Foundation 15,000 600 Adrian Merchant Macdonald & Donald S. Macdonald 14,640 600 Peter & Shelagh Godsoe 14,427 600 Yvon Turcot 13,700 500 Eleanore Romanow 13,500 400 Rothmans Benson & Hedges Inc. 13,000 500 Rio Tinto Alcan 12,500 0 Johanna & Cameron Mitchell 12,200 500 Jacqueline & Derek Oland 12,200 500 Tom Carew 11,830 500 Hayden/Sime 11,700 500 Jean Claude & Penelope Baudinet 11,500 500 New Brunswick 11,049 400 Laura Elsie MacMillan 11,000 400 Mary & Herb Auerbach 10,900 400 Kaaren & Kerry Hawkins 10,900 400 Assia De Vreeze 10,825 400 IPSCO 10,700 400 John Codner 10,107 400 Paul Robillard 10,038 0 Atomic Energy of Canada Ltd. 10,000 400 Bell Mobility 10,000 400 Canadian Pacific 10,000 400 Celanese Canada 10,000 400 CN 10,000 400 Bernard G. Côté 10,000 400 Emera 10,000 400 Empire Life Insurance Company 10,000 400 Ernst & Young 10,000 400 Luba Goy 10,000 400 Hamber Foundation 10,000 400 Hunt Oil Company of Canada 10,000 400 J.D. Irving Ltd. 10,000 400 Henry White Kinnear Foundation 10,000 400 John Labatt Foundation 10,000 400 D’Arcy Levesque 10,000 0 Lévesque Beaubien Geoffrion 10,000 400 McLean Foundation 10,000 400

( p. 22)

Bursaries allocated for 2 0 1 2 - 2 0 1 3 ( $ )

ACCUMUL AT ED DON AT IONS as of J uly 3 1, 2 0 1 3 ( $ )

F und

NATIONAL THEATRE SCHOOL OF CANADA

George Cedric Metcalf Charitable Foundation Moosehead Nova Chemicals Inc. David Peacock Nancy G. Power Productions Benoit Brière inc. George Gibbons Ronalds Harris Bernard Roy RSA Diana & Irving Schwartz Shaw Communications Kayla Shoctor Sunwapta Broadcasting Universal Studios Canada Velan Kathryn & Brian Brownlie Yves-Étienne Banville Invested – Restricted externally

10,000 400 10,000 400 10,000 400 10,000 400 10,000 400 10,000 400 10,000 400 10,000 0 10,000 400 10,000 400 10,000 400 10,000 400 10,000 400 10,000 400 10,000 400 5,840 0 2,990 0 5,188,324 199,500

National Theatre School of Canada NTS Governors & Members Invested – Restricted internally

504,257 708,888 1,213,145

11,150 10,675 21,825

6,401,469

221,325

Total Endowed Bursary Funds

( p. 2 3)

Bursary Funds

Bursaries allocated

Bursary Funds

A nnual D onations as of J uly 3 1, 2 0 1 3 ( $ )

NATIONAL THEATRE SCHOOL OF CANADA

Direct Bursaries Peter Dwyer/Canada Council 10,000 10,000 Ada Slaight 10,000 10,000 BMO Financial Group 0 5,000 Scotia Bank 0 5,000 Luc Plamondon 4,200 4,200 Roasters Foundation 4,000 0 IODE - The National Chapter of Canada 3,000 3,000 Various 2,050 1,050 Luc Pelletier 1,040 1,040 Peter Eldred 1,000 1,000 Norman & Margaret Jewison Charitable Foundation 1,000 1,000 Wolfgang Noethlichs 1,530 1,560 Leo Ciceri 784 784 Marc Deschamps 400 1,000 Hélène Gignac (HONOURING d’Yves-Étienne Banville) 400 400 Sub-total – Direct Bursaries 39,404 45,034

13,500 1,525 1,300 16,325

A warded ( $ )

Direct Bursaries from Community Foundation Accounts Foundation of Greater Montreal Vancouver Foundation Toronto Community Foundation Sub-Total – Community Foundation Bursaries

National Theatre School Awards Ada Slaight Graduate Prize Tullio Cedraschi Graduate Award Bernard Amyot Prize for Emerging Teachers Sims Family Prize for Teaching Excellence

5,000 5,000 0 400

TOTAL Bursaries & Awards

293,084

( p. 24)

NATIONAL THEATRE SCHOOL OF CANADA

( p. 25)

National Theatre School of Canada Financial Statements July 31, 2013

Independent Auditor's Report

2-3

Financial Statements Operations

Changes in Fund Balances

Cash Flows

Financial Position

Notes to Financial Statements

8 - 26

Independent Auditor's Report

To the Board of Directors of National Theatre School of Canada

Raymond Chabot Grant Thornton LLP Suite 2000 National Bank Tower 600 De La Gauchetière Street West Montréal, Quebec H3B 4L8 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, 2013 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.

Partnership of Chartered Professional Accountants Member of Grant Thornton International Ltd

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, 2013 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. Comparative information Without modifying our opinion, we draw attention to Note 3 to the financial statements, which describes that National Theatre School of Canada adopted Canadian accounting standards for not-for-profit organizations on August 1, 2012 with a transition date of August 1, 2011. These standards were applied retrospectively by management to the comparative information in these financial statements, including the statements of financial position as at July 31, 2012 and August 1, 2011 and the statements of operations, changes in fund balances and cash flows for the year ended July 31, 2012 and related disclosures. We were not engaged to report on the restated comparative information, and as such, it is unaudited.

MontrĂŠal September 30, 2013

CPA auditor, CA public accountancy permit no. A117472

402,843 25,718 191,275 1,410,567 739,351 236,695 33,266

313,676 7,473,385

402,843 25,718 191,275 1,410,567

739,351 236,695 33,266

313,676 7,473,385 242,737

232,315 34,459 138,759

21,303

52,937 88,439

221,434

54,514 351,649 28,385 3,450 157,531

â&#x20AC;&#x201C;

2,806,123 171,433

63,173 85,993 7,716,122

21,303 21,303

63,173 64,690 7,694,819

Total

5,117,000 315,650 2,134,306

Loan Fund

33,928

292,120 7,528,426

665,063 140,561 26,832

383,556 43,350 200,024 1,522,782

207,062 34,953 108,896

50,978 143,559

75,771 350,575 39,774 116,260 122,863

2,833,770 169,677

6,246 56,920 7,562,354

5,119,000 251,449 2,128,739

Total

2012-07-31

General Administration

2013-07-31

5,117,000 315,650 2,134,306

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 10) 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 8) Bursaries and funds allocated Expense relating to the actuarial deficit (Notes 22 and 23)

Revenues Operating grants (Note 5) Private donations (Note 6) Self-generated (Note 7) Investment income from community foundations (Note 8) Net investment income (Note 9)

Year ended July 31, 2013

National Theatre School of Canada Operations

2,565

15,411 15,411

39,315

92,745 129,265

36,520

2,950

16,857 16,857

6,329 2,413,952 2,489,705

69,424

Total

(22,499)

787,428

949,510

287,284

39,930

274,583

11,936

12,846

2,565

89,950

39,315

13,907

2,950

1,358,227

1,131,478

344,050

294,854 11,936

286,519 286,519

Directing Chair Fund

294,854

â&#x20AC;&#x201C;

39,930 39,930

Playwriting Chair Fund

SuzanneGrossmann Fund

492,574

287,284

6,329 1,197,561 1,236,794

32,904

Bursary Fund

Creation & Technology Fund

492,574

764,929 764,929

Capital Assets Fund

PhilippeCasgrain Fund

2013-07-31

(756,342)

1,208,659

409,346

306,739

492,574

15,577 252,533 452,317

184,207

Total

Restricted

2012-07-31

787,151

237,142

1,024,293

Total

717,551

120,000

837,551

Total

2012-07-31

Endowment (Note 21)

2013-07-31

â&#x20AC;&#x201C;

(221,434)

221,434

Unrestricted

1,857,528

216,812

1,640,716

General Fund Restricted

The accompanying notes are an integral part of the financial statements.

Fund balances, beginning of year Excess (deficiency) of revenues over expenses Interfund transfer (Note 11) Fund balances, end of year

Year ended July 31, 2013

National Theatre School of Canada Changes in Fund Balances

168,304

242,737

21,303

2,025,832

(4,622)

1,787,717

Total

147,001

Loan Fund

1,787,717

(10,718)

33,928

1,764,507

Total

2012-07-31

General Administration

2013-07-31

22,252,281

(22,499)

22,274,780

Capital Assets Fund

2,134,902

949,510

1,185,392

Bursary Fund

140,887

39,930

100,957

Playwriting Chair Fund

960,150

274,583

685,567

Directing Chair Fund

17,652

12,846

4,806

PhilippeCasgrain Fund

175,612

89,950

85,662

Creation & Technology Fund

25,616

13,907

11,709

SuzanneGrossmann Fund

25,707,100

1,358,227

24,348,873

Total

2013-07-31

24,348,873

(756,342)

25,105,215

Total

Restricted

2012-07-31

9,059,873

4,622

787,151

8,268,100

Total

8,268,100

10,718

717,551

7,539,831

Total

2012-07-31

Endowment (Note 21)

2013-07-31

National Theatre School of Canada Cash Flows

Year ended July 31, 2013

OPERATING ACTIVITIES Excess (deficiency) of revenues over expenses of the general administration fund and restricted funds Non-cash items Amortization of tangible capital assets Net change in fair value of investments Net change in working capital items (Note 4) 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 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.

2013-07-31 $ 1,600,964

2012-07-31 $ (722,414)

787,428 (1,989,172) (875,237) (476,017)

799,313 133,394 1,355,490 1,565,783

9,847,749 (9,903,192) (130,000) (120,069) (305,512)

7,899,613 (10,814,862) (120,000) (61,137) (3,096,386)

(809,904) 1,024,293 568,829 783,218 1,689 114,838

(773,594) 837,551 1,265,894 1,329,851 (200,752) 315,590

116,527

114,838

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 21 and 22)

Long-term Long-term debt (Note 20)

LIABILITIES Current Trade payables and other operating liabilities (Note 17) Refundable deposits Government grants received in advance (Note 18) Advance from General Administration Fund, without interest Advance from Playwriting Chair Fund, without interest Advance from Creation & Technology Fund, without interest Advance from Endowment Fund, without interest Contributions and deferred revenues (Note 19) Current portion of long-term debt

Long-term Investments (Note 14) Tangible capital assets (Note 15) Government grants receivable (Note 13)

ASSETS Current Cash Trade and other receivables (Note 12) 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 Directing Chair Fund, without interest Advance to Philippe-Casgrain Fund, without interest Advance to Suzanne-Grossmann Fund, without interest Investments receivable Government grants receivable (Note 13)

July 31, 2013

National Theatre School of Canada Financial Position

168,304

3,799,291

22,629,361

22,252,281

168,304

168,378

17,697,497 4,554,784

1,941,763

1,857,528 1,857,528

377,080

275,250 377,080

101,830

22,629,361

4,644,108 17,697,497

275,250 287,756

12,506

Capital Assets Fund

20,130 107,142 1,012,672 3,820 1,941,763

11,117

168,378

3,799,291 493,940 20,192 272,750

168,378

–

Loan Fund

3,134,790

244,895 664,501

2,614

74 101,830 38,308 160 1,945

116,527 156,808 1,340

General Fund

General Administration

Director

2,173,210

1,790,483 344,419 2,134,902

38,308

2,173,210

2,147,841

25,369

Bursary Fund

140,887

–

140,887

129,770

11,117

Playwriting Chair Fund

960,310

960,150

160

960,310

952,995

7,315

Directing Chair Fund

19,597

17,652

1,945

19,597

–

PhilippeCasgrain Fund

175,612

–

175,612

155,482

20,130

Creation & Technology Fund

28,230

25,616

2,614

28,230

–

Restricted SuzanneGrossmann Fund

9,167,015

7,541,504 1,518,369 9,059,873

107,142

9,167,015

8,812,311

354,704

247,562

107,142

Endowment Fund

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

Total

2013-07-31

38,099,729

37,645,892

19,103,033 11,984,919 3,321,601 34,409,553

1,088,975 3,236,339

279,070 3,695,039 18,364,856 12,720,915 3,318,919 34,404,690

919,156 773,593 2,147,364

337,542 22,114 94,959

37,645,892

15,614,594 19,103,032 1,088,975

1,265,893 1,839,291

315,590 166,092 91,716

Total

2011-08-01

1,194,292 809,904 3,415,969

418,595 22,155 971,023

38,099,729

18,396,449 18,364,856 279,070

809,904 1,059,354

114,838 126,317 8,295

Total

2012-07-31

National Theatre School of Canada Notes to Financial Statements

July 31, 2013

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. Fund accounting Assets, liabilities, revenues and expenses relating to the Organization's general activities are reported in the General Fund.

National Theatre School of Canada Notes to Financial Statements

July 31, 2013

2 - SIGNIFICANT ACCOUNTING POLICIES (Continued) 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 & Technology Fund. Assets, liabilities, revenues and expenses relating 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. 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.

National Theatre School of Canada Notes to Financial Statements

July 31, 2013

2 - SIGNIFICANT ACCOUNTING POLICIES (Continued) 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 as the ex-dividend date 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. Other investment income is recognized as General Fund revenue when it is earned. Investment income from community foundations 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.

National Theatre School of Canada Notes to Financial Statements

July 31, 2013

2 - SIGNIFICANT ACCOUNTING POLICIES (Continued) 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. Pension plan Defined contribution plan accounting is applied to a multi-employer defined benefit plan for which the Organization has insufficient information to apply defined benefit plan accounting. 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 - FIRST-TIME ADOPTION OF CANADIAN ACCOUNTING STANDARDS FOR NOT-FOR-PROFIT ORGANIZATIONS These financial statements are the Organization's first financial statements prepared using new Canadian accounting standards for not-for-profit organizations (hereafter the "new accounting standards"). The date of transition to the new accounting standards is August 1, 2011. The accounting policies presented in Note 2 and resulting from the application of the new accounting standards were used to prepare the financial statements for the year ended July 31, 2013, the comparative information and the opening statement of financial position as at the date of transition.

National Theatre School of Canada Notes to Financial Statements

July 31, 2013

3 - FIRST-TIME ADOPTION OF CANADIAN ACCOUNTING STANDARDS FOR NOT-FOR-PROFIT ORGANIZATIONS (Continued) Exemptions relating to first-time adoption Section 1501, First-time Adoption by Not-for-profit Organizations, contains exemptions to full retrospective application which the Organization may use upon transition. The Organization applied the following optional exemption: Designation of previously recognized financial instruments On the date of transition, the Organization elected to designate certain financial assets to be measured at fair value. Impact of transition on fund balances as at August 1, 2011 The impact of the transition to the new accounting standards on the Organization's fund balances at the date of transition, that is August 1, 2011, is not significant. Reconciliation of deficiency of revenues over expenses as at July 31, 2012 The deficiency of revenues over expenses as at July 31, 2012 determined using the new accounting standards is approximately equivalent to that determined using the previous accounting standards (pre-changeover accounting standards). Statement of cash flows Accounting standards regarding cash flows included in the new accounting standards are similar to those included in the previous accounting standards. The Organization has not made any major adjustment to the statement of cash flows. 4 - 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

2013-07-31 $ (75,681) 6,955 75,345 (1,963) (698,273) (181,620) (875,237)

2012-07-31 $ 39,775 83,421 81,053 41 876,064 275,136 1,355,490

National Theatre School of Canada Notes to Financial Statements

July 31, 2013

5 - 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 Saskatchewan Ministry of Tourism, Parks, Culture and Sport Department of Culture, Tourism and Healthy Living of New Brunswick Prince Edward Island Ministry of Tourism and Culture Manitoba Arts Council Nunavut

6 - PRIVATE DONATIONS NOT AFFECTED TO ENDOWMENT General Fund Individuals Businesses Foundations Bursary Fund Individuals Businesses Foundations Creation & Technology Fund Individuals Businesses Suzanne-Grossmann Fund Individuals

2013-07-31 $ 4,600,000 440,000 50,000 20,000 2,000 2,000 1,000 1,000 1,000

5,117,000

5,119,000

2013-07-31 $

2012-07-31 $

112,880 101,181 101,589 315,650

78,543 105,406 67,500 251,449

18,120 14,784 32,904

24,660 11,000 33,711 69,371

1,520 35,000 36,520

600 105,000 105,600

–

385,074 7 - SELF-GENERATED REVENUE Monument-National (Note 10) Student fees Audition fees Library subscriptions Rentals Other

2012-07-31 $ 4,600,000 440,000 50,000 20,000 3,000 2,000 2,000 1,000 1,000

2013-07-31 $ 1,248,765 740,350 49,380 34,441 18,147 43,223 2,134,306

9,236 435,656

2012-07-31 $ 1,238,906 720,400 54,060 36,615 27,937 50,821 2,128,739

National Theatre School of Canada Notes to Financial Statements

July 31, 2013

8 - COMMUNITY FOUNDATIONS As of July 31, 2013, 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 $130,000 ($120,000 in 2012) to the Foundation of Greater MontrĂŠal and $107,142 remains to be paid as at July 31, 2013. Additionally, the Organization recognized $69,502 ($21,823 in 2012) as investment income from these endowment funds managed by the community foundations to benefit the Organization. These funds 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 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 Organizationâ&#x20AC;&#x2122;s financial statements because ownership lies with the community foundations. The Organization is only entitled to the investment income that is recognized annually. 9 - 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 restricted resources Transaction costs Capital Assets Fund Investments measured at fair value Changes in fair value from restricted resources Transaction costs

2013-07-31 $ 83,720 (19,030) 64,690

2012-07-31 $ 54,951 54,951

22,234 (931) 21,303

2,880 (911) 1,969

787,310 (22,381) 764,929

90,847 (21,632) 69,215

National Theatre School of Canada Notes to Financial Statements

July 31, 2013

9 - 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 & 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 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

2013-07-31 $

2012-07-31 $

1,239,355 (41,794) 1,197,561

170,190 (41,252) 128,938

42,082 (2,152) 39,930

5,503 (1,644) 3,859

296,522 (10,003) 286,519

42,314 (9,815) 32,499

16,106 (695) 15,411

3,260 (455) 2,805

97,197 (4,452) 92,745

13,425 (681) 12,744

17,583 (726) 16,857

2,845 (372) 2,473

2,499,945

309,453

National Theatre School of Canada Notes to Financial Statements

July 31, 2013

9 - NET INVESTMENT INCOME (Continued) (a) Investment income on $16,890,334 is externally restricted for different purposes and investment income on the remaining $3,303,168 is unrestricted. The total amount of net investment income from resources held for endowment purposes is $1,708,845 for the year ended July 31, 2013 ($237,537 for the year ended July 31, 2012). 10 - MONUMENT-NATIONAL 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)

2013-07-31 $

2012-07-31 $

1,084,765 164,000 1,248,765

1,044,141 194,765 1,238,906

121,485 382,955

147,714 364,543

434,025 58,559 89,216 324,327 1,410,567

406,255 154,805 92,058 357,407 1,522,782

(161,802)

(283,876)

(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 Administration Fund expenses. 11 - INTERFUND TRANSFER In accordance with a Board of Directors resolution, an amount of $4,622 was transferred from the General Fund to the Endowment Fund restricted to the Bursary Fund ($10,718 in 2012).

National Theatre School of Canada Notes to Financial Statements

July 31, 2013

12 - TRADE AND OTHER RECEIVABLES 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

2013-07-31 $ 113,265 7,511

2012-07-31 $ 56,846 7,311 400

9,045 26,987 156,808

19,076 83,633

12,506

10,536

25,369

24,912

7,315 201,998

7,236 126,317

(a) Amounts owing from one customer represent 84% of total accounts receivable (two clients represented 84% in 2012). 13 - GOVERNMENT GRANTS RECEIVABLE General Fund Ministère de la Culture et des Communications du Québec (a) Department of Canadian Heritage Long-term grants receivable 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

2013-07-31 $ 3,820 241,075 244,895 244,895 275,250 275,250 520,145

2012-07-31 $ 11,458 11,458 (3,820) 7,638 1,077,516 (275,250) 802,266 809,904

(a) These grants receivable are related to the long-term debt described at the Note 20 of the financial statements.

Other investments Bond funds Equity funds

Shares Common shares of Canadian companies Common shares of American companies Common shares of foreign companies

Bonds Supranational Other federal institutions Provincial Other provincial institutions Municipal Other municipal institutions Corporate

3,134,790

–

168,378

86,941 80,467 167,408

–

$ 970

Loan Fund

2,169,118 2,169,118

944,031

–

Treasury bills 0.095% (0.24% in 2012), maturing in August 2013

Money market securities 0.2% to 0.55% (0.12% to 1.27% in 2012), maturing from August 2013 to July 2014

Cash

General Fund

General Administration

$ 21,641

14 - INVESTMENTS

July 31, 2013

National Theatre School of Canada Notes to Financial Statements

4,644,108

8,581,800

193,160

1,765,912 4,378,354

1,106,166 2,830,142

131,850

1,330,123

865,347

193,160

1,282,319

858,629

131,850

604,834 3,544,340

261,500 1,835,913 806,021 36,072

69,879

19,981

$ 376,086

Bursary Fund

300,781 1,511,519

837,112 343,040 30,586

–

$ 170,597

Capital Assets Fund

307,821

164,729 142,646 307,375

–

$ 446

Playwriting Chair Fund

44,807

2,119,994

44,807

416,628 1,011,583

324,944

270,011

50,223 447,035 176,526 15,292 28,361 110,701 828,138

–

$ 235,466

Directing Chair Fund

124,697

93,272 30,706 123,978

–

$ 719

PhilippeCasgrain Fund

848,748

645,932 202,378 848,310

–

$ 438

Creation and Technology Fund

263,166

196,975 66,027 263,002

–

$ 164

Restricted SuzanneGrossmann Fund

20,193,502

1,557,666 522,224 2,079,890

3,288,706 8,220,079

2,520,414

2,410,959

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

Total

2013-07-31

18,396,449

792,881 390,986 1,183,867

2,980,893 6,979,301

1,786,499

2,211,909

2,892,201 7,025,650

288,055 171,012 2,341,302 1,220,403 112,677

2,601,141

59,857

$ 546,633

Total

2012-07-31

National Theatre School of Canada Notes to Financial Statements

July 31, 2013

14 - INVESTMENTS (Continued) Shares Allocation by industry segments Finances Consumer discretionary Energy Industries Telecommunications Consumer goods Health Material Information technology Community service Other

$ 1,343,570 1,211,912 1,197,889 939,555 939,417 788,383 652,074 565,273 450,495 72,434 59,077 8,220,079

Allocation by geographic sectors Canada United States United Kingdom France Other

$ 2,410,959 2,520,414 565,492 635,047 2,088,167 8,220,079

2013-07-31 % 16.34 14.74 14.57 11.43 11.43 9.59 7.93 6.88 5.48 0.88 0.72 100.00

2013-07-31 % 29.33 30.66 6.88 7.73 25.40 100.00

15 - TANGIBLE CAPITAL ASSETS Cost

Capital Assets Fund Land School buildings Monument-National building Furniture and equipment Automotive equipment Computer equipment

2,968,676 5,780,766 18,847,954 2,334,196 22,595 473,392 30,427,579

Accumulated amortization

2,367,589 7,754,777 2,140,165 22,595 444,956

12,730,082

$ 903,470 883,790 972,463 893,115 957,656 738,388 531,568 590,852 338,117 84,609 85,273 6,979,301

$ 2,211,909 1,786,499 523,711 500,477 1,956,705 6,979,301

2012-07-31 % 12.94 12.66 13.93 12.80 13.72 10.58 7.62 8.47 4.84 1.21 1.22 100.00

2012-07-31 % 31.69 25.60 7.50 7.17 28.04 100.00

2013-07-31

2012-07-31

Net carrying amount

2,968,676 3,413,177 11,093,177 194,031 28,436

17,697,497

Net carrying amount

2,968,676 3,528,792 11,470,136 376,581 5,649 15,022 18,364,856

National Theatre School of Canada Notes to Financial Statements

July 31, 2013

16 - BANK LOAN The bank loan for an authorized amount of $100,000 ($100,000 in 2012) is unsecured, bears interest at prime rate plus 1.5% (1.5% in 2012) (4.5%; 4.5% in 2012) and is negotiable in March 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 3% per year. This loan is payable no later than December 1, 2015, with the objective of serving as temporary financing of the Organization’s renovation project. This line of credit will be converted to a term loan upon completion of the work. As at July 31, 2013, the renovation work has not begun. 17 - TRADE PAYABLES AND OTHER OPERATING LIABILITIES General Fund Trade payables Salaries payable Vacations payable Benefits payable Other

2013-07-31 $

2012-07-31 $

309,567 84,891 55,578 33,274 10,630

268,978 94,472 43,016 12,129

493,940

418,595

No government remittances were payable as at July 31, 2013 ($2,067 as at July 31, 2012). 18 - 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.

Balance, beginning of year Amount recognized as revenue Amount received relating to the following year 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 Manitoba Arts Council Nunavut Prince Edward Island Ministry of Tourism and Culture Balance, end of year

2013-07-31 $ 971,023 (971,023)

2012-07-31 $ 94,959 (94,959)

220,000 33,750 18,000

694,273 220,000 33,750 18,000

1,000

2,000 1,000 1,000 1,000

272,750

971,023

National Theatre School of Canada Notes to Financial Statements

July 31, 2013

19 - 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: 2013-07-31 2012-07-31 $ $ Deferred revenues Tuition fees 23,710 9,700 Balance, beginning of year 23,710 Amount received relating to the following year (23,710) (9,700) Amount recognized as revenue – 23,710 Balance, end of year Deferred contributions Balance, beginning of year Amount received relating to the following year Amount recognized as revenue Balance, end of year

20 - LONG-TERM DEBT General Fund Ministère de la Culture et des Communications du Québec "Soutien aux équipements culturels" program (a) Current portion of long-term debt Capital Assets Fund Ministère de la Culture et des Communications du Québec Restoration of the Monument-National "Soutien aux équipements culturels" program (a) "Aide aux immobilisations" program (b) Current portion of long-term debt

1,170,582 457,575 (615,485) 1,012,672

909,456 (557,247) 818,373 1,170,582

1,012,672

1,194,292

2013-07-31 $

2012-07-31 $

3,820 3,820 –

12,330 262,920 275,250 (275,250) – –

11,458 7,638 3,820 733,784 36,992 306,740 1,077,516 (802,266) 275,250 279,070

National Theatre School of Canada Notes to Financial Statements

July 31, 2013

20 - LONG-TERM DEBT (Continued) The instalments on long-term debt for the next year are $279,070. These instalments are covered by subsidies from the Ministère de la Culture et des Communications du Québec. (a) In 2002, a subsidy was received from the Ministère de la Culture et des Communications du Québec under the "Soutien aux équipements culturels" program in connection with the "Agir en culture et en communication" action plan for the financing of 95% of the maintenance cost of assets, the purchase and installation of special movable equipment and computer equipment. This subsidy consists in assumption of the payment of principal and interest on a term loan for an original amount of $323,000. The 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 5% and is payable in semi-annual instalments until September 2013. As at July 31, 2013, the outstanding balance on this term loan and the grant by way of undertaking of payment totals $16,150 ($48,450 in 2012). (b) 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 6.8% and is repayable in quarterly instalments of $21,910 from January 2010 to January 2014 and by a final instalment of $241,010 in July 2014. As at July 31, 2013, the balance of this term loan and the grant by way of undertaking of payment totals $262,920 ($306,740 in 2012). During the year, 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 16. 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 Ministre de Culture et des Communications du Québec and the Department 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 is receivable upon presentation of supporting documents.

National Theatre School of Canada Notes to Financial Statements

July 31, 2013

21 - ENDOWMENT FUND

Bursary 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 11) Balance, end of year

1,211,625 2,122 4,622 1,218,369

Total

6,480,520

Playwriting Chair Fund

Directing Chair Fund

178,051

867,000

178,051

867,000

PhilippeCasgrain Fund

99,800 6,300 106,100

Creation & Technology Fund

SuzanneGrossmann Fund

497,433 395,833 893,266

85,878 149,058 234,936

300,000 –

178,051

300,000

1,167,000

–

106,100

–

2013-07-31 Total

6,756,475 785,029 7,541,504 1,511,625 2,122 4,622 1,518,369

893,266

234,936

9,059,873

Creation & Technology Fund

SuzanneGrossmann Fund

497,433 497,433

85,878 85,878

6,041,024 715,451 6,756,475

–

1,498,807 2,100 10,718 1,511,625

85,878

8,268,100

2012-07-31 Bursary Fund

Externally restricted Balance, beginning of year Donations Balance, end of year

4,902,723 125,590 5,028,313

Internally restricted Balance, beginning of year Donations Interfund transfer (Note 11) Balance, end of year

1,198,807 2,100 10,718 1,211,625

Total

6,239,938

Playwriting Chair Fund

Directing Chair Fund

178,051

867,000

178,051

867,000

PhilippeCasgrain Fund

93,250 6,550 99,800

300,000 – 178,051

300,000 1,167,000

– 99,800

– 497,433

Total

National Theatre School of Canada Notes to Financial Statements

July 31, 2013

22 - INTERNAL RESTRICTION Pursuant to five resolutions of the Board of directors in the last years, $1,857,528 of the balance of unrestricted funds in the General Fund were internally restricted. This amount is restricted to the repayment of the actuarial deficit of the multi-employer defined-benefit pension plan and risks. 23 - PENSION PLAN The Organization participates with Canada's National Ballet School in a multi-employer defined benefit plan which is available to all permanent employees. The pension expense for the year amounted to $509,665 ($473,789 in 2012), including $313,676 ($292,120 in 2012) as expense relating to the actuarial deficit. The Organization is committed, based on the actuarial valuation as at January 1, 2011, to paying $187,225 with respect to the actuarial deficit, from January 1, 2011 to December 31, 2025. Payments in the coming years are $78,983 in 2014, $57,033 in 2015, $24,842 in 2016, $2,800 in 2017 and $23,567 in 2018 and in subsequent years. As at January 1, 2011, Canada’s National Ballet School has indicated that it intends to withdraw from the multi-employer plan once it has received authorization from the Financial Services Commission of Ontario. Accordingly, the assets and liabilities relating to employees of Canada’s National Ballet School will be withdrawn from the plan based on their December 31, 2010 value. This withdrawal will not result in additional costs for the Organization because all of the costs relating to a sponsor’s withdrawal are at that promoter’s expense. Following the transfer, the pension plan will no longer be a multi-employer plan and the only participant will be the National Theatre School of Canada. The plan will therefore become a defined benefit plan and will register with the Régie des rentes du Québec. During 2013, the Financial Services Commission of Ontario gave the Organization its authorization to transfer the assets of Canada’s National Ballet School. The amounts to transfer were approved by the employers in July 2013. Since the approval was received at year-end, the Organization’s management decided to recognize the plan as a defined benefit plan as of the start of the next fiscal period. The impact on the Organization’s financial statements as at July 31, 2014 will be recognition of a liability for employee future benefits. 24 - 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 $3,933 ($6,032 in 2012). 25 - FINANCIAL INSTRUMENTS Financial risks The Organization's main financial risk exposure is detailed as follows.

National Theatre School of Canada Notes to Financial Statements

July 31, 2013

25 - FINANCIAL INSTRUMENTS (Continued) 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. The Organization has determined that the financial assets with more credit risk exposure are government grant 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 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. 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: â&#x20AC;&#x201C; 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 New Zealand dollar Yen Australian dollar Pound sterling Swiss franc Singapore dollar Swedish krone Danish krone Hong Kong dollar Norwegian krone

2013-07-31 $ 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

Assets

2012-07-31 $ 2,572,591 1,236,357 136,292 270,947 254,427 243,226 88,167 55,216 160,081 96,985 17,940 16,754 5,148,983

Mutual fund units are also exposed, although indirectly, to currency risk as they can include currency investments;

National Theatre School of Canada Notes to Financial Statements

July 31, 2013

25 - FINANCIAL INSTRUMENTS (Continued) â&#x20AC;&#x201C; 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 bears interest at a variable rate and the Organization is, therefore, exposed to the risk of changes in fair value resulting from interest rate fluctuations. Additionally, some mutual funds also indirectly expose the Organization to interest rate risk; â&#x20AC;&#x201C; Other price risk: The Organization is exposed to other price risk due to investments in common 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 $1,077,187 ($1,330,129 as at July 31, 2012), whereas the carrying amount of financial assets measured at fair value totals $20,193,502 ($18,396,449 as at July 31, 2012). Guaranteed financial liabilities As at July 31, 2013, the carrying amount of guaranteed financial liabilities is $279,070. 26 - COMMITMENTS The Organization entered into long-term lease agreements expiring until June 2018, which call for lease payments of $254,867 for the rental of equipment, maintenance services and the rental of a storage space. Minimum lease payments for the next five years are $140,907 in 2014, $37,299 in 2015, $37,172 in 2016, $23,778 in 2017, and $15,711 in 2018.