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WALKING THE NEW PATH Naut sa mawt Tribal Council Annual Report 2015 2016

WORKING TOGETHER AS ONE WORKING TOGETHER AS ONE TO SUPPORT AND STRENGTHEN OUR ELEVEN COAST SALISH MEMBER COMMUNITIES THROUGH E CO N O M I C D E V E LO P M E N T S T R O N G GOVERNANCE COMMUNITY PLANNING FINANCIAL MANAGEMENT AND TECHNICAL SERVICES

Table of Conents This document was created for the Members of Naut sa mawt Tribal Council Naut sa mawt Tribal Council 2016 Photographs courtesy of Salish Sea Sentinel and Tricia Thomas of Salish Eye Productions 4 NmTC Annual Report Message from the Chairman of the Board 8 Message from the Chief Administrative O cer 10 Advisory Services 13 Our Advisors 16 Community Planning 18 Economic Development 20 Finance and Administration 24 Governance 26 Technical Services 28 Housing Policy Toolkit 30 Cultural Grants 32 Salish Sea Sentinel 34 Subsidiaries 36 NmTC Event Management 38 Naut sa mawt Project Management 40 Naut sa mawt Resources Group NRG 43 Xyntax 51 Corporate Governance 53 Your Board Working for You 54 2015 2016 Board of Directors 57 Executive Committee 57 Financial Management 59 Message from Director of Finance 60 Management Letter 62 Independent Auditor s Report 64 Management Statement of Responsibility for Financial Reporting March 31 2016 66 Consolidated Statements 67 The Naut sa mawt Team 81

Our Member Nations 1 Halalt 2 Homalco St ra it o fG eo rg 3 Klahoose 4 Malahat 5 Tla amin 6 Snaw naw as 7 Snuneymuxw 8 Stz uminus 9 Tsawwassen ia Strait of Juan de Fuca Puget Sound Paci c Ocean 10 Tsleil Waututh 11 T Sou ke NmTC Annual Report 5

Working Together As One Naut sa mawt Tribal Council NmTC is a non pro t society incorporated in 1983 that proudly serves eleven member First Nations We receive funding support from Indigenous and Northern Development Canada and from our own source revenue which includes joint ventures corporate subsidiaries event management and project management services The NmTC o ers services in ve core delivery areas that include economic development nancial management community planning technical services and governance Naut sa mawt Tribal Council supports its member nations in realizing their e orts towards selfreliance self governance connection to culture and quality of life now and for future generations 6 NmTC Annual Report Our Values Th siem or Emot Respect Our greatest asset is our people and we respect each other and our partners in all that we say and do We build trusting relationships based on open and honest communication transparency sharing and inclusiveness We treat everyone with dignity understanding and respect

Culture We are mindful of our cultural values respectfully seeking cultural guidance from our elders and echoing their teachings in the performance of our duties We respect understand and learn from the past so that we can grow the good share and revitalize our traditional languages and practices and re ect cultural pride in all we do Listening We listen with a peaceful heart and help each other to understand succeed and realize our shared goals and the individual needs and goals of our communities Naut sa mawt or Ay Ajuthum Collaboration We work together as one collaborating with our member nations for the common good of our communities by sharing knowledge and best practices building capacity through skills development connecting with each other and developing a vision for a sustainable future Providing Value Naut sa mawt Tribal Council is a values based learning organization that adapts to aligns with and strategically supports the professional capacity development of members and member nations We are exible innovative and creative in our delivery of programs and services fostering an enjoyment of lifelong learning through storytelling and real world applications We maximize member outcomes and bene ts by removing barriers networking and ful lling needs through mentorships the sharing of knowledge and best practices Integrity We stand with our member nations building relationships at high corporate and government levels based upon a foundation of professionalism accountability and ethics NmTC Annual Report 7

Message from the Chairman of the Board Bryce Williams Chief of Tsawwassen First Nation I am pleased to welcome you all to this Annual General Meeting of Naut sa mawt Tribal Council Our theme this year is Walking the Path It is a good theme following our year of change in 2013 14 and year of transition in 2014 2015 The blend of activities that forms this organization seems to be in harmony Naut sa mawt Tribal Council operates using sound and transparent principles of good governance It is a positive feeling to know that this organization follows a strategic plan It is gratifying that an assessment of needs includes the input of all members Naut sa mawt Tribal Council o ers services that meet the shared and individual needs of our members Naut sa mawt Tribal Council conducts a considerable amount of engagement with member communities I believe that all members have been touched in some way or the other for the better I also include the Salish Sea Sentinel which is the voice of our communities In the meantime e orts to generate own source revenue have helped provide We have successfully become a positive force in our member communites Naut sa Tribal Council with the means necessary to sustain an enriched program of services I trust that an ongoing commitment to the values of Naut sa mawt Tribal Council and the creative exploration of business opportunities will lead to long term sustainability of our valued programs and services 8 NmTC Annual Report

I thank my fellow Directors who have devoted their time and e ort in to determining what path we should follow and their dedication into ensuring we are holding true to our direction Although time is scarce and all Directors have to attend to many other matters in their communities I feel that the e ort with NmTC has been worthwhile I would like to thank Gary Reith our CAO and his sta for being able to accurately re ect the values of Naut sa mawt Tribal Council Looking ahead to 2016 2017 I see Naut sa mawt Tribal Council continuing its mission to support programs and services that meet both the common and unique needs of its members always moving forward in the spirit of working together as one Sincerely Bryce Williams Chief Bryce Williams Chairman NmTC Annual Report 9

Message from the Chief Administrative O cer Gary Reith CAO Nautsa mawt Tribal Council It is my singular pleasure to acknowledge and thank the Board of Directors for sharing their wisdom and insights this year They along with all Naut sa mawt Tribal members help set the direction and tone for our organization Chairperson Chief Bryce Williams Vice Chairperson Terry Sampson and Secretary and Treasurer Chief Gordon Planes have devoted extra time to Naut sa mawt even in the face of heavy responsibilities to their own Nations I thank them in particular for this contribution Parallel to the value added to Naut sa mawt Tribal Council by our Directors is work conducted by our sta who have made it possible for Naut sa mawt Tribal Council to breathe life into the directions provided by our Directors Sta brims with compassion con dence and integrity It is a pleasure being CAO in a large part due to the opportunity to work with Directors and Sta I am grati ed to observe and play a part in the unequivocal evolution of the organization The priority in 2013 2014 was to re energize a program or work for Naut sa mawt Tribal Council that was developed to service its members The organization had drifted from its purpose for existing and pro le of Naut sa We must ensure that future success is expanded by our deliberate choices mawt among our members was limited and not always positive Moreover we had made a signi cant purchase of Xyntax a company that we had heard of but which was little understood A priority was to better understand the nature of this company as well as the attending responsibilities risks and rewards 10 NmTC Annual Report

In 2014 2015 we were able to celebrate some of the successes of this movement back to the Tribal Council s service functions This was evident in a improvement in the engagement of the Board It could be seen in better teamwork between our two regional o ces It was also evident though our ability to o er a full set of programs in our ve core service areas We continued to o er feefor service programs with some success and learned more about Xyntax The focus of our activities in 2015 2016 has been to continue to engage the Directors and members We carried out a strategic planning process so that programs and priorities would be driven by communities and their members We conducted a needs assessment for the rst time This was to help target our programs to priority areas Naut sa mawt Tribal Council made a practice of evaluating its activities including those of our Directors This is a sign of health and shows an organization that welcomes scrutiny and is open to change Naut sa mawt Tribal Council continued to undertake signi cant project management and event planning projects We reactivated our fee for service company Naut sa mawt Resources Group and embarked on a program to help realize the great potential in Xyntax The Salish Sea Sentinel continued as a quality publication of with its outstanding content and presentation I suggest that 2016 2017 will see more of the same processes in place with details of individual programs changing to re ect the changing needs of our members New measures of which I am particularly excited will include the institution of an Elders Council and a Youth Gathering We will also be embarking on a program to support persons newly elected to the governments of their Nations with training As well we will engage our Executive Committee in the review of our operational policies much in the same way as they did for our bylaws In all it promises to be another exceptional year Thank you again members of Naut sa mawt Tribal Council It is as always a continuing honour to be of service Sincerely Gary Reith Gary Reith CAO NmTC Annual Report 11

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ADVISORY SERVICES NmTC Annual Report 13

Advisory Services NmTC has traditionally provided advisory services to its member Nations in community planning economic development nance and administration and governance along with technical services which is funded separately The service areas interact and overlap to a certain degree and it is common for advisors in each area to collaborate on the conception and implementation of programs that are consistent with the program of work In addition to the ve service areas two additional services have emerged informally housing policy and the Salish Sea Sentinel Housing policy is a hybrid area because it incorporates some elements of technical services with elements of all four other service areas Although some funding is diverted to housing policy most of the revenue is obtained from external sources The Salish Sea Sentinel has emerged as a de ning element of NmTC as it illuminates and celebrates achievements in all service areas along with chronicling the events issues and people the Salish Sea region The Sentinel is funded through advertising revenues and own source revenues The best way to nd yourself is to lose yourself in the service of others Mahatma Gandi 16 NmTC Annual Report

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Our Advisors Lisa Scott Director of Finance Finance and Administration Do your little bit of good where you are it s those little bits of good put together that overwhelm the world Desmond Tutu Lisa is responsible for the accounting and nancial management of the Tribal Council its programs and subsidiaries She sits on the board of Xyntax and is actively involved in human resources business development and strategic planning As required she provides nancial guidance and administrative support to the 11 member nations of the Tribal Council Her mother s ancestry is with Cowichan Tribes on the East Coast of Vancouver Island and her Father is from Pacheedaht on the West coast of Vancouver Island Bronwen Geddes Community Planning The world has plenty of dreamers but it s the doers that shape the planet Tim Fargo Bronwen s passions lie in bringing people together to tackle challenges in creative ways She is a facilitator planner and doer She enjoys pulling together big ideas including strategies events and programs with the know how to make them happen From running two day strategic retreats to designing province wide mentorship and internship programs to orchestrating major international events Erik Blaney Economic Development Life isn t about nding yourself Life is about creating yourself Unknown Erik strives for a quality educational adventure that stimulates not only the senses but the soul He wants people to know of the rich history of the Tla amin people and experience the connection that their ancestors had thousands of years ago and how it has transpired into who they are today He is a cultural person a drummer and a song keeper who comes from a very strong family who is close to their traditional ways and cultural teachings 14 NmTC Annual Report

Valerie Cross Blackett Governance Coming together is a beginning keeping together is progress working together is success Henry Ford Valerie has more than 14 years of governance and management experience During the 11 years with her nation she held key management administrative and negotiating roles After the E ective Date of the Tsawwassen Treaty she was responsible for the daily operation of their public institutions such as the Legislature and Executive Council She played an integral part in the growth and development of the Tsawwassen Legislature by developing numerous governance tools processes and policies Valerie has a passion for integrating culture and blending modern governance practices with traditional ones John Bolton Technical Services If you are making mistakes it means you are out there doing something Neil Gaiman John is a registered Professional Engineer in BC and has worked for consulting engineering rms in design and construction of industrial facilities including pulp mills mines power stations thermal and nuclear docks harbours foreshore protection etc Over the years he has worked for Department of Fisheries and Public Works providing design and construction expertise managing engineering facilities maintenance teams and much more John has also managed an engineering team working for INAC as District Engineer for 50 First Nations He very much enjoys working with all First Nations Eric Blueschke Housing Policy Alone we can do so little together we can do so much Helen Keller Eric has more than ten years of diverse experience working in collaborative multi stakeholder environments in the areas of communications planning research and analysis This has allowed him the opportunity to work closely with First Nation organizations agencies and communities local stakeholders and municipal provincial and federal governments within the contexts of Environmental Assessment Regulation and Enforcement On Reserve Housing Policy and Strategy Development Comprehensive Community Planning and BC Supreme Court processes NmTC Annual Report 15

Community Planning Never doubt that a small group of thoughtful committed citizens can change the world Indeed it s the only thing that ever has Margaret Mead Naut sa mawt Tribal Council aims to ensure that the services provided in the area of community planning meet actual community planning needs and are relevant to each community With respect for culture we work with our members to bridge traditions with modern practices We assist with community engagement research proposal development plan review and implementation We encourage knowledge sharing through tools templates and best practices and we o er skills development training and workshops KEY ACCOMPLISHMENTS Direct Support to Members n Worked with team Governance and Housing Advisors to organize plan and facilitate a 2 day Chief and Council strategic planning session for Stz uminus First Nation and develop a 2 year leadership strategic plan n Supported Tsawwassen First Nation Farm School to submit revised phase II proposal to the Real Estate Foundation of BC the project was approved for a grant in the amount of 263 000 over three years n Connected Tla amin with the indigenous planning program at UBC which resulted in two second year master s students completing practicums in the community over an 8 month period n Worked with Snaw naw as to support capacity development of new sta member with Governance Advisor n Assisted St zuminus in securing speakers and organizing Power in Numbers 2016 workshop n Held one or more in person meetings with each of the member nations about their planning related needs as well as other ways the tribal council might be able to best support them moving forward 18 NmTC Annual Report

Collective Support n Developed NmTC s rst comprehensive needs assessment covering all service areas n Developed and circulated assessment for completion by all NmTC leadership and senior sta Over thirty completed surveys received n Arranged purchase of and training for NmTC s new clicker voting system from Turning Technologies n Provided planning and programming support for the 2015 Joint Gathering n Connected with NmTC members at Comprehensive Community Planning CCP workshop n Developed and led capacity building workshop on community engagement for NmTC AGM participants Reasearch and Writing n Wrote and submitted a successful proposal on behalf of NmTC members to the British Columbia Capacity Initiative BCCI for project focusing on Nation to Nation Mentorship in land use planning treaty preparedness and community planning n Worked closely with T Sou ke and Stz uminus nations to develop and complete Comprehensive Community Planning CCP funding proposals to the First Nations Infrastructure Fund FNIF at INAC n Provided proposal writing support for NRT Direct Support funding to Homalco and T Sou ke n Recruited and worked with UBC student intern Gillian Nicol who supported NmTC activities over an 8 month period as part of her master s program in Indigenous Planning n Worked with advisors to develop coordinated NmTC training calendar for 2016 17 n Provided monthly copy editing support to The Salish Sea Sentinel NmTC Annual Report 19

Economic Development The best economic development strategy for the next few years lies in fostering entrepreneurs Angelos Angelou The Heron s nest is a four step grassroots economic development initiative of NmTC designed speci cally to support entrepreneurs in realizing their dreams The rst step The Nest prepares entrepreneurs for self employment with support in marketing branding retail and business planning The second step The Egg incubates ideas and provides and one on one support to participants The third step Hatching identi es funding sources and suppliers to help the launching of the business The fourth step Flight celebrates success The Heron s nest will continue to support entrepreneurs in the critical early years of their businesses The 2015 2016 Fiscal Year was spent working with our very successful Herons Nest Cohort who achieved new milestones and conquered some of their high reaching goals Erik Blaney was able to work closely with our 5 participants and assist with many aspects of their business plans and ideas 20 NmTC Annual Report

Some of the general accomplishments from working with our members are as follows April 2015 through March 2016 was a very eventful year We look forward to growing the number of participants in the Heron s Nest next scal year and providing more one on one project management support to our applicants Going forward there will be an open intake process instead of an application deadline Members who are interested in support will be welcomed on a case by case basis to allow for more exibility around scheduling and meeting needs Next scal year will focus on exploring new opportunities for our members KEY ACCOMPLISHMENTS Direct Support to Members n Heron s Nest Project kick o with meetings in ve communities wrapped up Herons Nest Intake Aug 31 n Worked with all members who expressed interest in the Heron s Nest and conducted checkins to see how business planning was coming along n Worked with Kathleen O Neil regarding Heron s Nest participants looked at polishing up their business plans and moving forward with funding applications n E mailed 8 di erent members our business planning templates n Assisted with registering a business building business plans and creating nancial statements with two individuals n Assisted Laurier Mathieu a Klahoose Member get to the Aboriginal Business Match Conference at no cost where he was exposed to a number of di erent opportunities for True Foundations Co n Assisted a Tla amin Nation member who reached out for help to obtain his Linesman tree falling clearance with BC Hydro BC Hydro reached out at the beginning of the month to nd an aboriginal trained to fall trees near hydro lines connected individuals interested in pursuing the certi cation and developing their businesses NmTC Annual Report 21

Direct Support to Members n Xwemalkwhu Wildlife Tours is working on getting their vessel Transport Canada Certi ed and is working towards changing their business model to include Boat Tours I have been pushing their tours on the Mainland and trying to help them grow their operation n There is a huge opportunity with the local hotel and resort in which I will be working on creating relationships with and introducing both parties to the table n Assisted Klahoose member with business planning for Crane and pile driving company n Assisted Klahoose member with logistics of Bed and Breakfast n Phone meeting with Chief James Delorme regarding business ideas for Klahoose n Met with Shawn O Conner From the Homalco Nation regarding Cultural Tour expansion and planning for expansion next year n Met with Stz uminus member regarding Herons Nest opportunities with new mall development n Trip to Stz uminus to present options for grocery store and brewery n Met with Stzuminus twice regarding their mall development and how NmTC could assist with their EC Dev Vision for the area n Trip to Ts ou ke to determine whether or not an opportunity exists for providing fruits to a local brewery n Worked with Sliammon member on business concept plan for commercial shing enterprise n Attended meeting with Snuneymuxw Nation and presented Heron s Nest and other economic development opportunities with their new building development 22 NmTC Annual Report

Reasearch and Writing n Prepared and submitted Monthly reports for Board review n Reviewed new opportunities for Individual funding n Built and Launch the new Heron s Nest Facebook page and highlighted 2 member nations businesses n Attended strategic planning meetings and discussions regarding a restructure of the Heron s Nest Networking n Assisted in setting up the Aboriginal Business Best Program in Powell River n Attended the Vancouver Island Aboriginal Business Match ABM along with the Economic Development Managers pre meeting held in Nanaimo Was very pleased to bring a Herons Nester to the ABM Nanaimo and show him how to Network with great success n Met with Vancouver Island University and Bear Tooth Mountain Research regarding trades training opportunities for NmTC Member Nations on Central Vancouver Island n Had discussions with Fairway Market Sobeys and Thriftys regarding the 16 000 square foot development in Stzuminus and E mailed Tsleil Waututh Nation and T souke regarding partnering opportunities n Talked with a number of di erent organizations and entities that could assist with the training and facilitation NmTC Annual Report 23

Finance and Administration A budget is telling your money where to go instead of wondering where it went Dave Ramsey This program area aims to help member Nations strengthen nancial and administrative skills by sharing information providing accessing to training and providing networking and capacity building workshops Services include developing planning and reporting systems supporting fundraising and proposal writing activities providing short term emergency sta ng support assisting with drafting nancial management policies procedures and bylaws advising on budgets and budget policies and assisting with personnel recruitment and selection KEY ACCOMPLISHMENTS Finance and Administration n Centralized accounting in Halalt O ce requiring Halat to hire a new data entry clerk and a nance Assistant n Compliant with INAC reporting requirements reports submitted on time resulting in no interruptions in funding n Reviewed and updated Financial Policies to be compliant with Generally Acceptable Accounting Practices n Developed a New Hire Packages for NmTC n Assessed suitability of current sta resources to adequately manage the growing requirements of the organization and redeployed sta to maximize resources and manage increasing needs of NmTC n Provided onsite and remote nance assistance to member nations and developed a fee for service assistance program for non member nations n Strategic planning scrutinize projects contracts nancial processes n Monitor Xyntax cash ow AANDC cash ow and HR processes 24 NmTC Annual Report

Direct Support to Members n Successfully assisted with the screening and interviewing of the Director of Operations for Halalt n Attended meeting with Snuneymuxw Nation and presented Finance and Administration services to administration n Provided Xyntax training with Snuneymuxw controller n Provided onsite Xyntax support to Halalt n Met with controller for Snaw naw as to help with transition out and provided nancial support during the transition to next controller n Helped with recruiting and hiring best practices in Snaw naw as n Assisted in posting employment positions for member nations n Provided sponsorship to Malahat Nation s gala event Collective Support n A two day project management workshop was held in Richmond that was attended by nine sta and council from six of our member nations which was facilitated by Greg Philiban n 2nd Annual Receptionist Workshop held on June 10 11th in Parksville 14 sta from seven member nations and NmTC participated in this twoday workshop which was facilitated by Denise Finlay NmTC Annual Report 25

Governance A lack of transparency results in distrust and a deep sense of insecurity Dalia Lama Support provided under the governance services area is intended to provide elected leadership and the management teams that support them access to the tools training and advice to support each of the tribal council members governance needs The goal of the Governance Service area is to assist member Nations build governance capacity receive relevant support and blend modern governance practices with traditional and cultural governance practices KEY ACCOMPLISHMENTS Board Governance n Provided administrative and governance support to Naut sa mawt Tribal Council Board and Members n Provided administrative and governance support to Naut sa mawt Resources Group Board and Members n Planning drafting and attending AGM and Board meeting as well as drafting compilation and production of annual report 26 NmTC Annual Report

Direct Support to Members n Worked with team to organize plan and facilitate a two day Chief and Council Strategic Planning session for Stz uminus First Nation Follow up work included the development of a two year leadership strategic plan n Coordinated and participated an informational meeting between Halalt and the Land Advisory Board representatives n Assisted with selection process for Halalt Director of operations reviewed 44 resumes and met with Halalt sta and NmTC Director of Finance to short list 5 to 6 for interviews n Attended sta meeting with Snuneymuxw and NmTC n Jointly facilitated Youth Leadership Workshop for Snaw naw as Collective Support n Provided support attended and moderated the 2nd Annual Receptionist workshop n Partnered with six other groups which included the FN Summit FN Public Secretariat and ARMA BC Chapter to coordinate and deliver a Records and Information Management Symposium on February 2 2016 n Partnered with Carden Consulting and NVIT to develop a Leadership Capacity program and developed funding proposals to INAC and NRT to fund initiative Research and Writing n Developed and submitted proposal to the Aboriginal Intern Program n Conducted policy review work with Executive Committee NmTC Annual Report 27

Technical Services Nothing is impossible the word itself says I m possible Audrey Hepburn The Naut sa mawt Tribal Council continues to provide services and advice to its member Nations in eleven Technical Service Areas 1 Capital Project Management 2 Infrastructure Planning 3 Municipal Agreements 4 Maintenance Management Plans 5 Maintenance Budgets 6 Operational Maintenance 7 Asset Condition Reporting 8 O M Purchasing 9 Maintenance Safety 10 Housing Inspections 11 Fire Prevention The Naut sa mawt Tribal Council also provides advisory services for Marine Structures and Foreshore Protection Fisheries Structures and Protection Emergency and Business Resumption Plans Housing Plans and Policies 28 NmTC Annual Report

KEY ACCOMPLISHMENTS Direct Support to Members n Multiple site visits were made to review and or discuss any issues falling within the Technical Service areas to the following members Halalt Snuneymuxw Homalco Stz uminus Tla amis T Sou ke Snaw naw as n House inspections at the request of Tla amin and T Sou ke were carried out by NMTC Collective Support n A booklet of good practices Building Permits Regulations and Inspections prepared by NmTC was given to FOUR member nations Snaw Naw as Snuneymuxw Stz uminus Tlseil Waututh n After years of lobbying AANDC nally accepted NMTC s long standing position and discussions requests over the years that our member First Nations should receive nancial subsidies towards their housing inspections E ective in 2016 our member administrations can include these subsidies in their housing requests n Further groundwork was carried out towards a planned workshop titled Land Development targeted to be held in Tsawwassen and planned for the Fall 2016 This workshop was delayed while sta sourced funding support Research and Writing n A NMTC Technical Services status report was discussed with Stz uminus and with T Sou ke n The report internal is intended to touch on all technical bases that the particular member nation is involved in and identify areas requiring some assistance and where NMTC may be able to assist NmTC Annual Report 29

Housing Policy The home should be the treasure chest of living Le Corbusier The NmTC o ers Housing Policy Services in recognition of the importance role and impact that housing has on our member communities KEY ACCOMPLISHMENTS Direct Support to Members n Worked with Klahoose T Sou ke and Halalt Nations to identify options and expend the 3500 Nation Toolkit 2 0 Partner First Nations Software Purchase Contribution n Worked with Governance and Planning Advisors to facilitate a 2 day Chief and Council strategic planning session for Stz uminus First Nation and develop a 2 year leadership strategic plan Collective Support n Convened Exploring Housing Authorities Workshop n Assisted with preparation of 2016 17 Enhanced Technical Services funding application Research and Writing n Drafted successful NmTC Exploring Housing Authorities proposal to INAC 30 NmTC Annual Report

Toolkits n Worked with AFN NALMA OFNTSC and Woodward and Company to complete NmTC Housing Toolkit 2 0 Rent and Rent To Own for February 2016 release and distribution to all member Nations and over 160 First Nations across Canada Thanks to the project partners T Sou ke Halalt and Klahoose First Nations for supporting the New Relationship Trust funding proposal n Made Toolkit presentations at the Ontario First Nations Technical Services Corporation Conference and Trade Show BC Aboriginal Land Managers AGM and Infonex Housing Strategies Workshop n Began development of NmTC Exploring Housing Authorities Toolkit NmTC Annual Report 31

Cultural Grants The art of communication is the language of leadership James Humes The Cultural and Community Grants Program is a small grant that is intended to assist with cultural activities sporting events community gatherings attendance at gatherings whatever the member nation deems appropriate Each member First Nation has access to a maximum grant of 3 000 in any oneyear period During the 2015 2016 scal year SIX member nations took advantage of this grant All of these funds are from own source revenues 32 NmTC Annual Report

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Salish Sea Sentinel THE VOICE OF THE NAUT SA MAWT TRIBAL COUNCIL The past year saw the magazine continue its transition from a newsletter type publication to an authoritative magazine one that not only informed Naut sa mawt Tribal Council nations about one another but also told the outside world about the many achievements and challenges occurring around the Salish Sea for First Nations who they do not often hear from in the mainstream media Leaders and members from all our communities were the key to the always interesting content by keeping in touch with Sentinel journalists feeding them information on notable events and activities that were featured both in the magazine and on the salishseasentinel ca web site as well as on our Facebook and Twitter pages Many also took the time to sit and share their knowledge with us conversations that became featured articles drawing interest from readers who live around the Salish Sea and in other countries The Sentinel continued its focus on reconciliation tradition and culture the ve dialects of language economic development governance infrastructure and pro les on role models and high achievers from leadership business and other areas 34 NmTC Annual Report

1 000 FRIENDS ON FACEBOOK 1 300 HITS ON TWITTER 40 AD SALES RATIO n Social media interest rising so are ad sales and costs n 1 800 people viewed the Facebook post on The Indian in the Child article n The Indian in the Child article reached a total of more than 10 000 people n Advertising totalled 40 of magazine content n Sales for our magazine are increasing with 7 5 pages of paid ads n Free ads for Members and NmTC 10 000 n BC Ferries distributor for travellers and MAX DISTRIBUTION n Increased distribution during summer tourists months to 10 000 copies NmTC Annual Report 35

Subsidiaries Individually we are a drop but together we are an ocean Ryuonosuke Satoro NmTC engages in a variety of other activities programs and partnerships intended to expand the resources available to its member Nations and other Indigenous communities across Canada 36 NmTC Annual Report

SUBSIDIARIES NmTC Annual Report 37

NmTC Event Management Fee for Service Event Management Naut sa mawt Events is one of Canada s most established and trusted Indigenous event management rms For over 15 years we have worked with First Nations across Canada on a wide range of issues and have been proud to manage events centered around Aboriginal initiatives 38 NmTC Annual Report

Events First Nations Fill and Commercial Solid Waste Management Land Use Planning Session Phase II October 28 30 2015 Workshops Chilliwack February 23 24 2016 Duncan March 1 2 2016 Pathways to Service Delivery An Introductory Workshop on Information Sessions on the MTSA Funding Application Developing and Negotiating Municipal Services Agreements October 22 2015 Process Kelowna June 16 2015 Prince George June 23 2015 Nanaimo June 26 2015 Vancouver June 29 2015 Sustainable Infrastructure for BC First Nations Williams Lake October 14 15 2015 Prince George October 21 22 2015 SWANA Remote Community Solid Waste Transfer Station Land Use Planning Session Victoria March 31st April 1st 2015 Vancouver April 14th 15th 2015 Project Management Planning Workshop June 23rd 25th 2015 Fort St John Sustainable Infrastructure for BC First Nations Workshop October 7th 8th 2015 Joint Gathering 2015 November 16th 18th 2015 Operator Training Port Hardy May 2015 Occupational Safety and Health Course Abbotsford October 15 16 2015 Construction Project Management Course Nanaimo November 26 27 2015 Abbotsford November 30 December 1 2015 Environmental Management Planning Workshop Whitehorse December 1st 2nd 2015 Richmond November 24 26 2015 December 1 3 2015 NmTC Annual Report 39

Naut sa mawt Project Management Fee for Service Project Management Naut sa mawt has been successfully managing projects on behalf of federal and provincial government departments Activity for this scal year has continued to form one of the primary fee for services activities undertaken by the Tribal Council The projects listed below were either continued from 2014 2015 or were new in 2015 16 Gross revenues from the various projects managed by Naut sa mawt was over 8 million which was lower than the year earlier and less than forecast in 2016 17 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Municipal Services 2015 16 MTSA Admin Municipal Services 2015 16 MTSA 675 Gitga at Municipal Services 2015 16 MTSA 672 Gitxaala Municipal Services 2015 16 540 Kitasoo Municipal Services 2015 16 538 Heiltsuk Special Services 2015 16 Tech Services Environmental Workshops Solid Waste 2015 16 Tech Services Solid Waste Management Wastewater O M 2015 16 Tech Services Water Wastewater Safe Water Operations Program SWOP 15 16 Tech Services FNNWWP Safe Water Operations Program SWOP 15 16 Tech Services Delivery of MTSA Information Sessions Safe Water Operations Program SWOP 15 16 Tech Services Maintenance Management Asset Management Pilot Projects FNWWAP Safe Water Operations Program SWOP 15 16 Tech Services Maintenance Management Asset Management Pilot Projects A base Special Services 15 16 Tech Services Public Works Management Workshops A Base Special Services 15 16 Tech Services Delivery of MTSA Information Sessions A base Special Services 15 16 Tech Services Delivery of an Enhanced Program of Work on Municipal Services Agreement Special Services 15 16 Tech Services Delivery of MTSA Information Sessions A base 40 NmTC Annual Report

17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 LEDSP Environment prevention 15 16 FNLM First Nations to First Nation Learning Best Practices Workshop LEDSP Environment Prevention 15 16 LEDSP End of Life Vehicle Handbook LEDSP Environment Prevention 15 16 Recycling Infrastructure Assessment 20 Rural Remote Communities Safe Water Operations Program SWOP 15 16 Tech Services Annual Performance Inspection program Safe Water Operations Program SWOP 15 16 Tech Services Asset Management Planning workshops FNWWAP Water O M 15 16 Tech Services Water Treatment Plant Performance Optimization Program Development of Maintenance Management Systems 15 16 Tech Services Asset Management Planning Workshops A Base Special Services 15 16 Tech Services Infrastructure Planning Guide Special Services 15 16 Tech Services Energy Conservation Program for o grid Communities Wuikinuxv Consultation and Policy Development Governance Event Management and Logistics for Joint Gathering 2015 Remediation CSMWG Step 7 9 1516 non FCSAP Semiahmoo IR1 lot 57 Energy Systems CPMS 11716 Wuikinuxv Energy Conservation feasibility Safe Water Operations Program SWOP 15 16 Tech Services Administration of the ACRS Program FNWWAP 2014 2015 Carry Over Solid Waste Management CPMS 11717 Bulk Waste Removal Repairs Training and Engineering Feasibility Fire Protection Strategy Projects LEDSP Environment Prevention 2015 16 Land Management Capacity Wastewater O M 2015 16 Tech Services Remote Community Septic Sludge Disposal Special Services 2015 16 Tech Services Infrastructure Planning PHASE 2 Special Services 2015 16 tech Services O M Update of the Practical Guide NmTC Annual Report 41

37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 Special Services 2015 16 Review of Enhanced Tribal Council Technical Units Remediation CSMWG Steps 7 9 2015 16 on reserve Yale et al Site Closures Environmental Site Assessment CSMWG Steps 1 4 on Reserve Tsay Keh Dene IR1 Lands Environmental Site Assessment CSMWG Steps 1 4 non FCSAP Musqueam IR2 4 Stautlo Ave Solid Waste Management CPMS 11717 Bulk waste removal repairs training and Engineering feasibility Risk Management CSMWG step 7 10 2015 16 non FCSAP Multiple Remote Land ll Closure Assessment Solid Waste 2015 16 Product Steward s Roundtable SWANA Certi cation Solid Waste Management 2015 16 CPMS 11527 Multi Community Solid Waste Program Upgrades LEDSP Environment Prevention 2015 16 Chilcotin Military Training Area Maintenance Management 2015 16 Enhanced Tribal Council Technical Unit Special Services 2015 16 Tech Services ACRES FNWWAP Circuit Rider Training Program 2015 16 Tech Services Circuit Rider Training Program LEDSP Environment Prevention 2015 16 Environmental Management Planning workshop Whitehorse Planning CPMS 11832 Housing Authority Feasibility Study Phase 1 Environmental Site Assessment CWMWG Step 1 4 2015 16 Squamish IR lands Data Review Environmental Site Assessment CWMWG Step 1 4 2015 16 non FCSAP Kwikwetlem IR2 Lot 14 Land lling Labour Other Costs Kispiox Comm Bulk Fuel System Upgrades construction Wuikinuxv Nation Energy E ciency Initiative Upgrading three Pilot Homes scal year 2015 16 Proposal ESD Client Supports Active Measures FNLMI Capacity Dev FN Land Registry Training Environmental Site Assessment CSMWG steps 1 4 2015 16 non FCSAP Uchucklesaht IR2 Wallace Fisheries Plant 42 NmTC Annual Report

Naut sa mawt Resources Group NRG Strategic Partnerships for Aboriginal Economic Development Mission To provide substantial support to the goals of NmTC through generating ethical revenue and providing opportunities for its Coast Salish Members through the generation of ethically sourced revenue and the provision of employment opportunities for its Coast Salish members Vision NRG will provide a highly pro table source of discretionary income that will support NmTC to reach its vision and mission and to be self su cient NRG will conduct business that provides opportunities for all generations to become self su ceint in an ever changing world NRG will be a business leader that respects and preserves the cultural integrity of the Coast Salish peoples while adhering to its values and principles Values Ethically generate income Stability and growth To provide discretionary funds to NmTC Independence To empower NmTC to be autonomous and self su cient Cultural focus Maintain our cultural integrity Respect for the ancestors Reconnecting with the old ways Leaders in delivering environmentally responsible projects that work towards minimizing the carbon foot print NmTC Annual Report 43

Naut sa mawt Resources Group NRG was founded by the Naut sa mawt Tribal Council in 1997 after the Government of Canada announced its Procurement Strategy for Aboriginal Businesses We pursue opportunities to o er value added products and services to private and public sectors across Canada We establish strategic partnerships with service providers and manufacturers that enable us to augment our access to di erent products and specialized expertise As a community owned venture we are mindful of our Coast Salish cultural values which guide the conduct of our business at every level Although NRG experienced signi cant revenue in the late 90sand early 2000s it was dormant and inactive over recent years The 20152016 scal year was a year of awakening and re birth for NRG The board meeting held in June 29 2015 was the beginning of the revival The board had a two day strategic planning session in July 2015 and began to plot the path for the future of NRG The board then called for an annual general meeting and at the AGM held in September 2015 the previous board retired Terry Sampson Chairman Stz uminus Nation Chief Gordon Planes Secretary Treasurer T sou ke Nation Chief James Thomas Halalt Nation Gary Reith CAO NmTC And a new board was elected to take on the new path Terry Sampson Stz uminus Chairman Lawrence Mitchell Snaw naw as Secretary Treasurer Kevin Peacey Klahoose Director Chief James Thomas Halalt Director The new board met one more time on March 22 2016 At this meeting sta reported signi cant activity based on the direction provided by the board 44 NmTC Annual Report

Projects Financials NRG retained all of the purchasing vehicles from the federal government of The 2015 2016 nancial activity was Canada as identi ed in the report for last year s AGM of September 30 2015 reviewed by Reid Hurst Nagy RHN as As a result of these joint ventures NRG was able to add additional contracts to appointed by the Naut sa mawt Tribal those secured with Health Canada Contract 1000167079 involving the Council NmTC Members at the supply of Business Analysts These contracts include February 2016 AGM NmTC being the parent company of NRG Contract EP748 161451_B Leadership Services for Public Works and Government Services Canada Contract 100183193 Fire Compliance Monitoring for Indigenous and Northern A airs Canada E orts to secure projects through these existing purchasing vehicles will continue and in 2016 2017 we anticipate that many of them will be subject to renewal mawt Resources Group has been undergoing regeneration In 2013 Naut sa mawt Resources Group reported revenues of 34 600 and an operating loss of 95 209 This was followed in 2014 by 0 reported Through working with one of our principal partners Contract Community Inc CCI of Ottawa Ontario NRG was instrumental in helping secure a Standing O er to provide real property managers for construction projects in British Columbia From an operating perspective Naut sa As a result NRG has the right of rst refusal on all project opportunities o ered to CCI and has secured a project involving renovations to the Penticton Airport More such opportunities are anticipated in the 2016 17 scal year NRG has been in discussion with an array of potential partners that would enable us to competitively supply products or services revenues and an operating loss of 97 740 In 2015 we reported revenues of 34 700 and an operating loss of 93 853 In 2016 we increased revenues to 196 000 and experienced and an operating loss of 83 600 The trend will be higher revenues with a view to achieving pro tability in the 2016 17 or 2017 18 scal years NmTC Annual Report 45

Notice to Reader On the basis of information provided by the Company we have compiled the balance sheet of Naut sa Mawt Resources Group Inc as at March 31 2016 and the statement of loss and de cit for the year then ended We have not performed an audit or a review engagement in respect of these nancial statements and accordingly we express no assurance thereon Accordingly readers are cautioned that these statements may not be appropriate for their purposes REID HURST NAGY INC CHARTERED PROFESSIONAL ACCOUNTANTS VANCOUVER B C NOVEMBER 17 2016 46 NmTC Annual Report

NAUT SA MAWT RESOURCES GROUP INC STATEMENT OF LOSS AND DEFICIT For the year ended March 31 2016 Unaudited See Notice to Reader 2016 2015 178 479 17 420 15 000 19 620 195 899 34 620 DIRECT COSTS 195 479 23 732 GROSS PROFIT 420 10 888 24 000 2 786 3 150 802 40 600 1 200 166 2 919 4 000 4 463 24 000 2 884 14 678 10 647 1 107 40 600 1 754 5 500 300 1 890 1 381 84 086 104 741 LOSS FROM OPERATIONS 83 666 93 853 OTHER INCOME EXPENSE Interest Income loss on investment 124 19 391 556 59 361 19 515 58 805 64 151 152 658 REVENUE INAC revenue Contract revenue Miscellaneous income EXPENSES Administration fee Advertising and promotion Bad debts Consulting fees Honoraria Depreciation Interest on long term debt Director s fee Memberships O ce Professional fees Rent Repairs and maintenance Travel NET LOSS DEFICIT beginning of the year 1 113 655 960 997 DEFICIT end of the year 1 177 806 1 113 655 NmTC Annual Report 47

NAUT SA MAWT RESOURCES GROUP INC BALANCE SHEET As at March 31 2016 Unaudited See Notice to Reader 2016 ASSETS CURRENT ASSETS Cash Accounts receivable 2015 243 545 61 149 143 986 37 920 304 694 181 906 2 234 3 036 1 364 444 1 345 053 1 671 372 1 529 995 51 639 511 1 783 597 144 000 30 442 496 1 495 881 144 000 1 979 747 1 670 819 LONG TERM DEBT Note 5 144 000 288 000 NOTE PAYABLE Note 6 725 381 684 781 2 849 128 2 643 600 50 1 177 806 50 1 113 655 1 177 756 1 113 605 1 671 372 1 529 995 CAPITAL ASSETS Note 2 INVESTMENT IN SUBSIDIARY Note 3 LIABILITIES CURRENT LIABILITIES Accounts payable and accrued liabilities GST HST payable Due to shareholder Note 4 Current portion of long term debt SHAREHOLDER S DEFICIENCY Share capital Note 7 De cit Approved on behalf of the Board Director 48 NmTC Annual Report Director

NAUT SA MAWT RESOURCES GROUP INC NOTES TO THE FINANCIAL STATEMENTS March 31 2016 Unaudited See Notice to Reader 1 DESCRIPTION OF OPERATIONS Naut sa mawt Resources Group Inc Company was founded by the Naut sa mawt Tribal Council in 1997 after the Government of Canada announced its Procurement Strategy for Aboriginal Businesses The Company pursues opportunities to o er value added products and services to private and public sectors across Canada The Company was incorporated under the laws of the Province of British Columbia The Company is 100 owned by the Naut sa mawt Tribal Council 2 CAPITAL ASSETS Computer equipment Furniture and xtures 3 Cost Accumulated depreciation 2016 Net 2015 Net 19 464 3 630 18 099 2 761 1 365 869 1 950 1 086 23 094 20 860 2 234 3 036 INVESTMENT IN SUBSIDIARY The balance represents 80 interest for investment in shares in Xyntax Group Inc 4 DUE TO SHAREHOLDER The amount due to the shareholder is unsecured non interest bearing with no speci c terms of repayment NmTC Annual Report 49

5 LONG TERM DEBT 2016 2015 Unsecured interest free loan repayable in annual payment of 144 000 The loan matures on August 31 2017 Less current portion 288 000 144 000 432 000 144 000 Due beyond one year 144 000 288 000 Estimated principal repayments are as follows 2017 2018 144 000 144 000 288 000 6 7 NOTE PAYABLE Naut sa mawt Tribal Council loan bearing interest at 7 per annum The loan principal and interest is due on August 31 2017 and is secured by a General Security Agreement 2016 2015 Note principal 580 000 580 000 Interest payable 145 381 104 781 SHARE CAPITAL Authorized 100 000 Class A common voting shares without par value 500 000 Class B preferred non voting shares with a par value of 0 01 each Issued and outstanding 100 Class A Common shares 50 NmTC Annual Report 725 381 684 781 2016 2015 50 50

Xyntax Integrated Financial Management Software Solution for First Nations Since 1984 Xyntax Systems has worked with First Nations Tribal Councils and bandempowered entities throughout Canada As an aboriginally owned Canadian software manufacturer Xyntax o ers a broad range of integrated easy to use nancial and administrative management solutions all developed with and for First Nations It provides a software solution that meets the needs of First Nations in Canada unlike any other in available in the market place In 2012 Naut sa mawt Resources Group purchased 80 ownership of Xyntax The new relationship started o with some challenges that the NRG board has been working to address including during 2015 2016 In March 2015 a high level assessment by Ah In Chut Business Group concluded that Xyntax had an excellent potential to increase market share among First Nations in Canada but faced several constraints Key recommendations surrounded Reviewing the ownership structure Developing an HR succession plan Shifting focus from product development to sales Diversifying revenue sources particularly in training opportunities Implementing a marketing and brand awareness campaign NmTC Annual Report 51

Following these recommendations sta obtained support from the the Tale awtxw Aboriginal Capital Corporation to undertake further business planning for Xyntax and engaged the services of Brian Payer and Associates BPA In particular BPA examined more short term steps that needed to be taken to assist Xyntax to meet the growing demand for its programs A key conclusion of BPA was that Xyntax would realize great bene ts by expanding its training and support resources particularly if this could be done through a contracting out arrangement Options as to how to accomplish this within current budget restraints is a matter that will be examined in 2016 17 when the nal phase of the assessment is planned This assessment will provide a de nitive view of the as is state of Xyntax identify priority action items and recommend options to meet the objectives for Xyntax as set by its Board of Directors Overall our optimism about the future of Xyntax is high We believe it can generate an acceptable and sustainable return on the investment by NRG o er potential employment and training opportunities for NmTC members and of critical importance assist First Nations in Canada improve governance through o ering an unparalleled data management solution In scal year 2015 16 Xyntax enjoyed levels of sales and product installations higher than ever before in history There were no seasonal cash ow issues and company was pro table 52 NmTC Annual Report

CORPORATE GOVERNANCE NmTC Annual Report 53

Corporate Governance Surround yourself with great people delegate authority get out of the way Ronald Regan Members of the Board of Directors are appointed by their respective councils to represent their nations at the tribal council The Board of Directors as a whole is responsible for managing the society and is accountable for the proper conduct of the Naut sa mawt Tribal Council supports its member nations in realizing their e orts towards self reliance self governance connection to culture and quality of life now and for future generations society s a airs The board of directors of a society must Take action to achieve the objectives of the society Establish policies about how the society will be governed Propose amendments to the constitution and bylaws of the society as circumstances change for the consideration of the members resources Elect or appoint o cers who will ensure high quality board leadership in accordance with the bylaws 54 NmTC Annual Report Approve an annual budget and secure the needed nancial Report to Members

SIX board meetings were held during this scal year May 28 2015 hosted by the Malahat Nation July 23 2015 hosted by the Tsleil Waututh Nation September 30 2015 hosted by the Songhees Nation November 18 2015 held immediately after the Joint Gathering in Vancouver January 28 2016 hosted by the Homalco Nation March 23 2016 hosted by the T Sou ke Nation The following decisions resolutions were made Approved the renewal of the temporary contract with Director Terry Sampson from March 1 2015 to September 30 2015 Approved funding applications Application to AANDC s First Nation Housing Authority Initiative Application to First People s Cultural Council Application to the BCCI for the Nation 2 Nation N2N Mentorship in Land Use and Community Planning project Application to the New Relationship Trust Governance Capacity Initiative program NmTC Annual Report 55

Directed sta to initiate concept and terms of reference for youth participation at board meetings Directed sta to develop terms of reference and implementation plan for a NmTC Elders Council Assigned the Executive Committee to conduct the performance evaluation of the CAO Approved the creation of a line of credit that Xyntax can access to bridge the cash ow shortfalls during November December 2015 Called the 2015 AGM Approved the 2014 2015 audit and authorized its presentation to the Members at the annual general meeting being held on December 2 2015 Approved bylaw amendments to amend the quorum requirements at an annual general meeting and authorized its presentation to the members at the AGM being held on February 12 2016 in Parksville BC Approved the 2016 2017 Program and Services work plan budget and funding agreement with INAC Elected O cers of the board for the next scal year Acclaimed Bryce Williams as Chairman of the Board Acclaimed Terry Sampson as Vice Chairman of the Board Acclaimed Gordon Planes as Secretary Treasurer of the Board Approved the Terms of Reference for the NmTC Elders Council and authorized the creation of the council Set remuneration of Auditor as directed by the Members at the last AGM Supported the delivery of a Youth Leadership Gathering to be held in summer of 2016 Authorized bylaw amendment by written consent resolution 56 NmTC Annual Report

2015 2016 Board of Directors Chief Bryce Williams Tsawwassen First Nation Terry Sampson Stz uminus First Nation Chief Gordon Planes T Sou ke First Nation Chief James Thomas Halalt First Nation Dorothy Paul Homalco First Nation Kevin Peacey Klahoose First Nation Chief Caroline Harry Malahat First Nation Chief Clint Williams Tla amin First Nation Chief John Wesley Snuneymuxw First Nation Chris Bob Snaw naw as First Nation Deanna George Tsleil Waututh First Nation NmTC Annual Report 57

Executive Committee The Executive Committee also represents the O cers of the society The O cers are elected each year by the board of directors after each AGM They are directed by the board and act on authority delegated from the board Chairman of the Board Chief Bryce Williams Tsawwassen First Nation Bryce carries two traditional names Yaahl Iiwaans from his mother s Haida side and T xwil m named after his great grandfather from Tsawwassen Bryce was rst elected to the position of Chief of Tsawwassen Nation in 2012 Prior to that he served as a Legislator and a member of the Executive Council from 2009 2012 Bryce is also is an artist carver and traditional drummer and singer During the 2014 15 scal year the Executive Committee met four times to respond to board requests and assignments January 12 2016 The Board assigned the following Vice Chair Terry Sampson Stz uminus First Nation Terry s traditional name is Yuk walu Ala Way Terry has been an elected councillor for many years and prior to that he has served as Chief of Stz uminus First Nation Terry has strong connections to his culture and is a devoted to serving his people as an elected o cial and director projects assignments to the Executive Committee Policy review Review CAO employment agreement and make recommendations to board 58 NmTC Annual Report Secretary treasurer Chief Gordon Planes T Sou ke First Nation Gordon s traditional name is Hya quatcha named after his great grandfather from Scia new the salmon people Elected Chief of T Sou ke Nation for the past 7 years Gordon previously worked as back country operations manager of the West Coast trail for Parks Canada He is a Coast Salish carver artist traditional singer and a captain of T Sou ke traditional dug out canoes for the last two decades

FINANCIAL MANAGEMENT NmTC Annual Report 59

Message from the Director of Finance Lisa Scott Nautsa mawt Tribal Council It has been my pleasure to serve Naut sa mawt Tribal Council as Director of Finance I enjoy working alongside this dynamic team of skilled dedicated professionals committed to serving our members I thank the Board of Directors for their leadership and guidance on our journey to become an organization that above all things lifts up and supports our People My rst year with Naut sa mawt Tribal council was The Year of Change Working with our CAO I reviewed and evaluated our nancial systems and reporting procedures The second year we developed a plan to centralize all accounting and nancial operations This year we have continued to Walk the Path by expanding our nance team There are increasing demands of our growing organization Developing optimal reporting structures and policies is important as is Implementing Generally Accepted Accounting practices in all areas of nance The activity generated by Naut sa mawt Tribal Council s advisory and revenue generating activities continues to grow 60 NmTC Annual Report The Tribal Council s historical reporting status has improved INAC reports have been submitted on time which ensures an ongoing ow of funding and allows Naut sa mawt Tribal Council to meet project requirements Naut sa mawt Tribal Council completed a number of approved projects in 2015 16 without receiving project funding within that scal year which will be evident in the audit de cit The de cit will be resolved in the 2016 17 scal year

We completed our Naut sa mawt Tribal Council audit and NRG reviews for 2014 15 and 2015 16 We have set systems in place for the funding agreements and polices for the Naut sa mawt Tribal Council nancials We have shifted Naut sa mawt Tribal Council from cash basis reporting to an accrual basis where revenue is recognized when committed but has not yet arrived This provides a more accurate re ection of our scal position The activity generated by Naut sa mawt Tribal Council s advisory and revenue generating activities continues to grow This is a step forward in realizing our goal of developing optimal reporting structures and implementing Generally Accepted Accounting Practices in all areas of nance The Naut sa mawt Finance o ce will continue on its path of meeting the nancial management needs of our dynamic organization Guided by strong leadership and good governance Naut sa mawt Tribal Council will continue to succeed in the complexity and range of programs and services o ered to our members I am honored to be a part of the team Working Together as One to realize Naut sa mawt Tribal Council s potential Sincerely Lisa Sc t Lisa Scott Director of Finance NmTC Annual Report 61

Management Letter Accounting and Bookkeeping Related Issues During the course of our Audit we prepared 60 recommended adjusting journal entries It has been a practice of Reid Hurst Nagy Inc to advise our clients throughout the audit process of any corrections or adjustments that may come to our attention in order that appropriate action can be taken on a timely basis November 21 2016 MANAGEMENT LETTER Naut sa Mawt Tribal Council Att n Board of Directors 8017 Chemainus Road Chemainus BC V0R 1K50 Dear Directors Re Naut sa Mawt Tribal Council In planning and performing our audit of the nancial statements of the Naut sa Mawt T ribal Council the Tribal Council for the year ended March 31 2016 we gained an understanding of your internal controls over nancial reporting in order to design our audit plan including procedures that are appropriate for the purpose of expressing an opinion on your nancial statements Please note that our planning related to internal controls was not for the purpose of expressing an opinion on the e ectiveness of such controls over nancial reporting It should be noted that we have no authority to adjust your records but are compelled by our standards to recommend adjustments as a result of our ndings during the audit process These recommended adjustments to your records pertained to the following items reallocation of 2016 opening fund balances accounts receivable bad debt tangible capital assets amortization accounts payable accrued liabilities AANDC INAC recoveries deferred revenue enterprise fund reallocation of revenue and expenses and transfers between fund accounts departments It is our persistent goal to continue to reduce the number of such adjustments by o ering recommendations to improve internal controls over your accounting records as well as the accuracy of inputted data Internal controls are the methods and procedures an organization uses to ensure the accuracy and validity of their nancial statements Such controls protect your organization from abuse and fraud and should ensure that information is received in an accurate and timely manner Management of an organization is ultimately responsible for the development and maintenance of e ective internal controls over their accounting systems and practices while accounting departments are charged with the responsibility of processing accounting records and nancial statements in accordance with such controls Canadian Auditing Standards CAS dictate that auditors review and evaluate such controls to determine the extent of the audit procedures that they will use during the audit process or plan The independence standard prescribes that auditors should not review their own work or be actively involved in the maintenance of general ledgers or posting of adjusting entries Accounts Receivable As our audit plan for March 31 2016 is nearing completion we wish to take this opportunity to present our ndings and recommendations in the form of a letter to Management as required by CAS We recommend that FUND BALANCES AND ACCUMULATED SURPLUS DEFICIT It should be noted that as of March 31 2015 the Council s accumulated surplus was 268 577 and decreased to an accumulated de cit 926 190 by March 31 2016 for a di erence of 1 194 767 in the period ACCOUNTING RECORDS Status of the Records The nancial records required a number of adjustments and reallocation of opening balances during the Audit process However due to sta shortages in the accounting department we were not provided with the nancial records on a timely basis which ultimately delayed the audit completion process We recommend that 1 assistance be sought on a regular basis to assist the accounting department with the audit preparation process in order to comply with timely funding reporting requirements 62 NmTC Annual Report Our recommendations related to the reconciliations of sub ledger accounts have been implemented along with recording allowances for doubtful accounts We appreciated the accounting department support in this regard Accounts Payable During our review of accounts payable we recommended several adjustments related to recovered amounts reallocation of prepaid expenses as well as accrued liabilities The unrecorded amounts are mainly due to invoices not being submitted for payment or received subsequent to the year end 1 major vendors should be noti ed before the year end to submit their invoices in a timely manner 2 invoices received after the month end or year end should be reviewed and recorded in the appropriate accounting period to insure proper cut o and 3 major funded expenditures should be recorded in the applicable accounting period to ensure reporting requirements are met and reimbursements are received 4 all invoices should be approved by the appropriate manager director prior to cheques being issued Payroll Best practices direct that employment contracts be reviewed annually by Management and legal advisors to ensure compliance with agreed upon provisions for pay rates etc We recommend that 1 employment contracts be in existence for all employee and 2 employment contracts be reviewed on an annual basis by management to ensure compliance with the agreed upon provisions of the said contracts

Management Letter Deferred Revenue WHAT S NEW FOR FIRST NATION ORGANIZATIONS For SET funding surpluses are recovered at the end of each scal year De cits on capital projects may be brought forward from the prior year and used to o set surpluses in the current year The Risk of a Cyber attack For FIXED funding surpluses may be retained for one scal year if surpluses are used in the same program in the next scal year or in a di erent program as long as a plan is submitted to AANDC INAC within 120 days after the end of the scal year and subsequently approved by AANDC INAC In addition the unexpended FIXED funds will be held as deferred revenue in AANDC INAC accounts for the Tribal Council and will be utilized rst before tapping into any new funding Again de cits on capital projects may be brought forward from the prior year and used to o set surpluses in the current year We recommend that 1 the Tribal Council keep track of all surpluses generated from AANDC INAC funding so that Management is aware of potential surplus recovery by AANDC INAC depending on the type of funding 2 funded expenditures be identi ed and recorded in the applicable capital projects to meet reporting requirements and minimize the potential recovery for projects funded by SET or FIXED funding 3 surpluses from FIXED funding be analyzed to determine if there could be any further expenditures incurred in the following scal year to utilize the surpluses If there are no additional expenditures that can be incurred in the same capital project then Management should consider the creation of a new work plan to utilize the surplus for another capital project for AANDC INAC approval This prudent planning would minimize potential recovery by AANDC INAC Cyber attacks have become increasingly sophisticated dangerous and an increasing concern to the accounting and legal professions Technological advances which promote such practices as remote access mobile technology and cloud computing make us all particularly vulnerable A cyber attack is any type of o ensive maneuver employed by individuals or whole organizations that target computer information systems infrastructures computer networks and or personal computer devices by various means of malicious acts usually originating from an anonymous source that either steals alters or destroys a speci ed target by hacking A hacker is someone who seeks and exploits weaknesses in a computer system or network Hackers are motivated by such things as pro t protest challenge and even enjoyment Cyber attacks can range from installing spyware on a computer to attempt to destroy the infrastructure of an organization Spyware is software that aims at gathering information about a person or organization without their knowledge or asserts control over a computer without ownership s knowledge CONCLUSION The items contained in this correspondence were documented solely for the information of the Board of Directors as well as Management and are not intended for any other purpose We accept no responsibility to a third party who might use the content of this correspondence To ensure there is a clear understanding and record of the matters discussed we ask that members of the Board sign their acknowledgement in the spaces provided below SIGNIFICANT ACCOUNTING POLICIES Management is responsible for the appropriate selection and application of accounting policies Our role is to review the appropriateness and the application as part of our audit The accounting policies used are described in note 2 Basis of presentation and signi cant accounting policies in the nancial statements These nancial statements are prepared in accordance with Canadian public sector accounting standards as recommended by the Public Sector Accounting Board There were no other accounting policies adopted or changes to the application of accounting policies of the Council during the year SIGNIFICANT OR UNUSUAL TRANSACTIONS No signi cant or unusual transactions came to our attention during the audit process that you need to be apprised of ACCOUNTING ESTIMATES Management is responsible for the accounting estimates included in nancial statements These estimates are based on Management s knowledge of the business and past experience The auditors responsibility is to obtain su cient appropriate evidence to provide reasonable assurance that Management s accounting estimates are reasonable DISAGREEMENTS WITH MANAGEMENT Our standards require that we communicate any disagreements with Management whether or not resolved about matters that relate to our audit process Please be advised that we had no disagreements with Management during the audit process ISSUES ENCOUNTERED DURING THE AUDIT PROCESS We encountered no signi cant issues during our audit process that should be brought to the attention of the Board of Directors NmTC Annual Report 63

Independent Auditors Report To the Members of Naut sa mawt Tribal Council We have audited the accompanying consolidated nancial statements of Naut sa mawt Tribal Council which comprise the consolidated statement of nancial position as at March 31 2016 and the consolidated statements of revenue expenses and accumulated surplus change in net debt cash ows and the related schedules for the year then ended and a summary of signi cant accounting policies and other explanatory information Management s Responsibility for the Consolidated Financial Statements Management is responsible for the preparation and fair presentation of these consolidated nancial statements in accordance with Canadian public sector accounting standards and for such internal control as management determines is necessary to enable the preparation of consolidated nancial statements that are free from material misstatement whether due to fraud or error Auditors Responsibility Our responsibility is to express an opinion on these consolidated nancial 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 consolidated nancial statements are free from material misstatement An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated nancial statements The procedures selected depend on the auditor s judgment including the assessment of the risks of material misstatement of the consolidated nancial statements whether due to fraud or error In making those risk assessments the auditor considers internal control relevant to the Tribal Council s preparation and fair presentation of the consolidated nancial statements in order to design audit procedures that are appropriate in the circumstances but not for the purpose of expressing an opinion on the e ectiveness of the Tribal Council 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 consolidated nancial statements 64 NmTC Annual Report

We believe that the audit evidence we have obtained is su cient and appropriate to provide a basis for our quali ed audit opinion Basis for Quali ed Opinion The Tribal Council holds investment in Government Business Enterprises We were unable to satisfy ourselves as to the carrying value of these investments because the nancial records were not audited Accordingly we were not able to determine whether any adjustment might be necessary to the Investment in Government Business Enterprises the net income loss from these investments and the accumulated de cit in Enterprise Fund Quali ed opinion Except as noted in the above paragraph in our opinion these nancial statements present fairly in all material respects the nancial position of the Naut sa mawt Tribal Council as at March 31 2016 and the results of its operations for the year then ended in accordance with Canadian public sector accounting standards REID HURST NAGY INC CHARTERED PROFESSIONAL ACCOUNTANTS Vancouver B C November 22 2016 NmTC Annual Report 65

Managements Statement of Responsibility for Financial Reporting March 31 2016 The accompanying consolidated nancial statements of Naut sa mawt Tribal Council are the responsibility of management and have been approved by the Board of Directors The consolidated nancial statements have been prepared by management in accordance with Canadian public sector accounting standards prescribed for governments as recommended by the Public Sector Accounting Board of CPA Canada and as such include amounts that are the best estimates and judgements of management Management is responsible for the integrity and objectivity of these statements and for implementing and maintaining a system of internal controls to provide reasonable assurance that reliable nancial information is produced The Board of Directors is responsible for ensuring that management ful lls its responsibilities for nancial reporting and internal control and is ultimately responsible for reviewing and approving the consolidated nancial statements The Board of Directors meets periodically with management as well as the external auditors to discuss internal controls over the nancial reporting process auditing matters and nancial reporting issues to satisfy themselves that each party is properly discharging their responsibilities and to review the consolidated nancial statements and the external auditor s report The external auditors Reid Hurst Nagy Inc conduct an independent examination in accordance with Canadian auditing standards and express their opinion on the consolidated nancial statements The external auditors have full and free access to nancial management of Naut sa mawt Tribal Council and meet when required On behalf of Naut sa mawt Tribal Council 66 NmTC Annual Report

NmTC Annual Report 67

NAUT SA MAWT TRIBAL COUNCIL CONSOLIDATED STATEMENT OF CHANGE IN NET DEBT FOR THE YEAR ENDED MARCH 31 2016 2016 ANNUAL DEFICIT 1 194 767 Acquisition of tangible capital assets Amortization of tangible capital assets Disposition of tangible capital assets 2015 204 288 2 150 1 908 212 990 10 992 212 748 10 992 2 992 204 778 204 778 269 201 786 204 509 DECREASE IN NET FINANCIAL ASSETS 780 233 397 805 NET FINANCIAL ASSETS DEBT BEGINNING OF YEAR 157 658 240 147 Acquisition of prepaid assets Use of prepaid assets NET FINANCIAL ASSETS DEBT END OF YEAR 68 NmTC Annual Report 937 891 157 658

NAUT SA MAWT TRIBAL COUNCIL CONSOLIDATED SUMMARY STATEMENT OF REVENUE EXPENSES AND ACCUMULATED SURPLUS FOR THE YEAR ENDED MARCH 31 2016 2016 Budget REVENUE Indigenous and Northern A airs Canada INAC Recovery Net loss from government business enterprises Interest income Administration fee Loss on sale of tangible capital assets Other revenue Deferred revenue prior year Deferred revenue current year EXPENSES Administration Programs Enterprise Fund ANNUAL DEFICIT 8 820 068 10 945 076 86 553 260 016 64 051 155 167 55 732 47 897 457 166 508 615 91 990 612 340 387 791 2 211 105 1 120 129 2 597 068 2 211 105 9 316 749 10 383 220 1 162 500 10 586 999 1 441 663 9 029 253 40 600 1 150 620 9 396 288 40 600 11 749 499 10 511 516 10 587 508 2015 Actual 11 399 672 349 827 ACCUMULATED SURPLUS BEGINNING OF YEAR ACCUMULATED SURPLUS DEFICIT END OF YEAR Note 10 9 537 897 519 000 1 330 1 341 445 2016 Actual 349 827 1 194 767 268 577 926 190 204 288 472 865 268 577 NmTC Annual Report 69

NAUT SA MAWT TRIBAL COUNCIL CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED MARCH 31 2016 2016 OPERATING ACTIVITIES Annual de cit Items not a ecting cash Amortization Net income from Government Business Enterprises Loss on sale of tangible capital assets 1 194 767 CAPITAL ACTIVITIES Acquisition of tangible capital assets Proceeds from disposition of tangible capital assets FINANCING ACTIVITIES Principal repayment on obligation of capital lease INVESTING ACTIVITIES Due from Government Business Enterprises DECREASE INCREASE IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS BEGINNING OF YEAR 70 NmTC Annual Report 1 908 64 051 91 990 Change in non cash items on statement of nancial position Accounts receivable Prepaid expenses Accounts payable and accrued liabilities Deferred revenue CASH AND CASH EQUIVALENTS END OF YEAR 2015 204 288 10 992 155 167 1 036 818 38 129 695 805 201 786 1 983 911 385 962 1 385 723 204 510 1 449 762 1 090 976 3 128 786 3 683 822 2 150 121 000 118 850 26 095 44 254 287 716 187 572 3 323 747 3 451 996 4 609 564 1 157 568 1 285 817 4 609 564

NAUT SA MAWT TRIBAL COUNCIL NOTES TO CONSOLIDATED FINANCIAL STATEMENTS MARCH 31 2016 1 NATURE OF OPERATIONS The Naut sa mawt Tribal Council Tribal Council is a non pro t society incorporated in 1983 that proudly serves eleven member First Nations We receive funding support from Indigenous and Northern Development Canada and from our own source revenue which includes joint ventures corporate subsidiaries event management and project management services The Tribal Council o ers services in ve core delivery areas that include economic development nancial management community planning technical services and governance The Tribal Council is governed by a Board of Directors made up of one representative from each of the eleven member First Nations appointed annually by their respective Councils 2 BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES These nancial statements are prepared in accordance with Canadian public sector accounting standards for governments as recommended by the Public Sector Accounting Board of CPA Canada a Principles of Consolidation The consolidated nancial statements re ect the assets liabilities revenues and expenses of entities which are controlled by the Tribal Council Controlled entities are consolidated except for government business enterprises GBE which are accounted for by the modi ed equity method All inter fund and inter organization transactions and balances have been eliminated on consolidation The Tribal Council records its investments in GBE on the modi ed equity basis Under the modi ed equity basis the GBE accounting policies are not adjusted to conform with those of the Tribal Council and inter entity transactions and balances are not eliminated The Tribal Council recognizes its equity interest in the annual earnings or loss of the GBE in its consolidated statement of operations with a corresponding increase or decrease in its investment asset account Any dividends or other cash distributions that the Tribal Council may receive from the GBE will be re ected as deductions in the investment asset account Entities accounted for on a modi ed equity basis include Naut sa Mawt Resources Group Inc NRG 100 Interest b Cash and Cash Equivalents Cash and cash equivalents include cash on hand balances with banks net of bank overdrafts and term deposits having a maturity of three months or less at acquisition which are held for the purpose of meeting short term cash commitments NmTC Annual Report 71

NAUT SA MAWT TRIBAL COUNCIL NOTES TO CONSOLIDATED FINANCIAL STATEMENTS MARCH 31 2016 2 BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES continued c Tangible Capital Assets Tangible capital assets are recorded at cost which includes amounts that are directly related to the acquisition design construction development improvement or betterment of the assets Cost includes overhead directly attributable to construction and development as well as interest costs that are directly attributable to the acquisition or construction of the asset Leases that transfer substantially all the bene ts and risks of ownership to the lessee are recorded as capital leases Accordingly at the inception of the leases the tangible capital asset and related lease obligations are recorded at an amount equal to the present value of future lease payments discounted at the lower of the interest rate inherent in the lease contracts and Naut sa mawt Tribal Council s incremental cost of borrowing Amortization is provided for on a declining balance basis over their estimated useful lives as follows Buildings Computer equipment Furniture and equipment 4 Declining balance 20 Declining balance 20 Declining balance Tangible capital assets are written down when conditions indicate that they no longer contribute to Naut sa mawt Tribal Council s ability to provide goods and services or when the value of future economic bene ts associated with the tangible capital assets are less than their net book value The net write downs are accounted for as expenses in the consolidated statement of operations Contributed tangible capital assets are recorded into revenues at their fair value on the date of donation except in circumstances where fair value cannot be reasonably determined in which case they are recognized at nominal value Transfers of tangible capital assets from related parties are recorded at carrying value Certain assets which have historical or cultural value including works of art historical documents and historical and cultural artifacts are not recognized as tangible capital assets Assets under construction are not amortized until the asset is available to be put into service d Measurement Uncertainty The preparation of nancial statements in conformity with Canadian public sector accounting standards for governments requires management to make estimates and assumptions that a ect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the nancial statements and the reported amounts of revenue and expenses during the reporting period Items requiring the use of signi cant estimates include amortization Actual results could di er from those estimates 72 NmTC Annual Report

NAUT SA MAWT TRIBAL COUNCIL NOTES TO CONSOLIDATED FINANCIAL STATEMENTS MARCH 31 2016 2 BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES continued e Revenue Recognition Revenues are recognized in the period in which the transactions or events occurred that gave rise to the revenues All revenues are recorded on an accrual basis except when the accruals cannot be determined with a reasonable degree of certainty or when their estimation is impracticable Government transfers are recognized as revenues when the transfer is authorized and any eligibility criteria are met except to the extent that transfer stipulations give rise to an obligation that meets the de nition of a liability Transfers are recognized as deferred revenue when transfer stipulations give rise to a liability Transfer revenue is recognized in the statement of operations as the stipulation liabilities are settled Contributions from other sources are deferred when restrictions are placed on their use by the contributor and are recognized as revenue when used for the speci c purpose Revenue related to fees or services received in advance of the fees being earned or the services performed is deferred and recognized when the fees are earned or the services performed f Financial Instruments Financial instruments are initially classi ed upon initial recognition as a fair value or an amortized cost instrument The fair value category includes investments in equity instruments that are quoted in an active market and any other items elected by the Tribal Council to be recorded at fair value All other nancial instruments including nancial instruments with related parties for which fair value cannot be estimated are recorded at amortized cost Transaction costs directly attributable to the acquisition or issue of a nancial instrument are added to the amortized cost or expensed if related to instruments recorded on a fair value basis The e ective interest rate method is used to measure interest for nancial instruments recorded at amortized cost All nancial assets are assessed for impairment on an annual basis When a decline is determined to be other than temporary the amount of the loss calculated as the excess of the net recoverable amount of the asset and its carrying value is reported in the statement of operations and any unrealized gain is adjusted through the statement of remeasurement gains and losses When the asset is sold the unrealized gains and losses previously recognized in the statement of remeasurement gains and losses are reversed and recognized in the statement of operations The Tribal Council s nancial instruments consist of cash and cash equivalents accounts receivable accounts payable and accrued liabilities deferred revenue and obligations under capital leases It is management s opinion that the Tribal Council is not exposed to signi cant interest rate market currency credit or liquidity risks arising from these nancial instruments and that the fair value of these nancial instruments approximate their carrying values NmTC Annual Report 73

NAUT SA MAWT TRIBAL COUNCIL NOTES TO CONSOLIDATED FINANCIAL STATEMENTS MARCH 31 2016 3 ACCOUNTS RECEIVABLE 2016 INAC GST HST Public Service Bodies Rebate Others 4 2015 1 808 686 6 498 136 977 1 144 444 517 111 395 1 952 161 1 256 356 INVESTMENT IN GOVERNMENT BUSINESS ENTERPRISES The investment in Naut sa Mawt Resources Group Inc NRG consists of the following Investment in NRG Due from NRG i Interest bearing loan ii Interest receivable interest bearing loan Allowance for doubtful account principal and interest of the interest bearing loan 2016 2015 1 177 656 1 783 596 580 000 145 381 1 113 605 1 495 880 580 000 104 781 725 381 684 781 605 940 382 275 The nancial information of NRG for year ended March 31 2016 and 2015 are presented as follows 2016 74 NmTC Annual Report 2015 Cash Accounts receivable Capital assets Investment 243 545 61 149 2 234 1 364 444 143 986 37 920 3 036 1 345 053 Total assets 1 671 372 1 529 995 Accounts payable Government remittances Due to shareholder Current portion of long term debt Long term debt Note payable 51 639 511 1 783 597 144 000 144 000 725 381 30 442 496 1 495 881 144 000 288 000 684 781 Total liabilities 2 849 128 2 643 600 Share capital De cit 50 1 177 806 50 1 113 655

NAUT SA MAWT TRIBAL COUNCIL NOTES TO CONSOLIDATED FINANCIAL STATEMENTS MARCH 31 2016 4 INVESTMENT IN GOVERNMENT BUSINESS ENTERPRISES continued 2016 Revenue Interest Income loss on investment 195 899 124 19 391 2015 34 620 556 59 361 215 414 24 185 Direct cost Expenses 195 479 84 086 23 732 104 741 Total expenses 279 565 128 473 Net income 64 151 152 658 i The amount due from NRG is unsecured and without interest or xed terms of repayment ii The interest rate on the interest bearing loan due from NRG is 7 per annum The loan principal and interest is due on August 31 2017 The Tribal Council charged NRG 40 600 2015 40 600 of interest on the loan and the same amount was set up as allowance for doubtful account 5 ACCOUNTS PAYABLE AND ACCRUED LIABILITIES 2016 Accounts payable Amounts payable to INAC Payroll remittance payable WCB payable Pension payable Vacation accrual payable 2015 2 059 302 83 220 6 952 4 088 3 617 27 563 3 878 260 275 940 8 588 1 277 4 588 2 184 742 4 168 653 The vacation accrual liability is comprised of the vacation that employees are deferring to future years Employees have either earned the bene ts or are entitled to these bene ts within the next budgetary year The Tribal Council provides a de ned contribution plan for eligible members of its sta Members are required to contribute 5 of their salary and the Tribal Council is required to match their contribution of 5 The amount of the retirement bene t to be received by the employees will be the amount of the retirement annuity that could be purchased based on the member s share of the pension plan at the time of the member s withdrawal from the plan The Tribal Council contributed during the year 22 090 2015 22 549 for retirement bene ts The Tribal Council does not have any other obligations with regards to the pension plan as at March 31 2016 NmTC Annual Report 75

NAUT SA MAWT TRIBAL COUNCIL NOTES TO CONSOLIDATED FINANCIAL STATEMENTS MARCH 31 2016 6 DEFERRED REVENUE 2016 INAC Others 7 2015 2 481 867 115 200 2 211 105 2 597 067 2 211 105 OBLIGATIONS UNDER CAPITAL LEASES 2016 Building lease contract with a monthly payment of 3 724 until May 2015 and a purchase option of 18 860 8 2015 26 095 TANGIBLE CAPITAL ASSETS 2016 Cost 2016 Accumulated amortization Balance beginning Balance of year Additions Disposals end of year Balance Accumulated beginning amortization Balance of year Amortization on disposals end of year 2016 net book value Buildings Computer equipment Furniture and equipment 259 417 72 285 9 182 259 417 2 150 72 285 11 332 46 427 66 224 6 776 1 212 696 46 427 67 436 7 472 4 849 3 860 340 884 2 150 259 417 83 617 119 427 1 908 46 427 74 908 8 709 2015 Cost 2016 Accumulated amortization Balance beginning Balance of year Additions Disposals end of year Balance Accumulated beginning amortization Balance of year Amortization on disposals end of year 2015 Net book value Buildings Computer equipment Furniture and equipment 259 417 72 285 9 182 259 417 72 285 9 182 37 552 64 709 6 174 8 875 1 515 602 46 427 66 224 6 776 212 990 6 061 2 406 340 884 340 884 108 435 10 992 119 427 221 457 76 NmTC Annual Report 10

NAUT SA MAWT TRIBAL COUNCIL NOTES TO CONSOLIDATED FINANCIAL STATEMENTS MARCH 31 2016 9 ACCUMULATED SURPLUS 2016 Restricted Capital Reserve Fund Unrestricted Operating Fund Enerprise Fund Invested in Tangible Capital Assets 2015 452 992 452 992 70 754 1 458 465 8 709 1 014 636 1 394 414 195 363 1 379 002 184 415 926 010 268 577 10 RESTATEMENT OF COMPARATIVE FIGURES The investment in goverment businses enterprises for 2015 scal year has been adjusted to include the loss from the Naut sa Mawt Resources Group Inc NRG since the nancial information was made available As a result the following balances in the 2015 scal year have been adjusted As orginally stated Investment in government business enterprises Accumulated surplus end of year Net loss from government business enterprises Annual de cit Enterprise Fund 537 442 423 744 49 121 1 239 247 Amount change Revised balance 155 167 382 275 155 167 268 577 155 167 155 167 155 167 204 288 155 167 1 394 414 11 ECONOMIC DEPENDENCE Naut sa mawt Tribal Council receives a signi cant portion of its revenue pursuant to a funding agreement with INAC The nature and extent of this revenue is of such signi cance that the Tribal Council is economically dependent on this source of revenue NmTC Annual Report 77

NAUT SA MAWT TRIBAL COUNCIL NOTES TO CONSOLIDATED FINANCIAL STATEMENTS MARCH 31 2016 12 COMPARATIVE AMOUNTS Certain comparative amounts have been reclassi ed to conform with the presentation adopted in the current period 13 BUDGET INFORMATION Budgeted gures have been provided for comparison purposes and have been derived from the estimates approved by the Board of Directors 14 EXPENSES BY OBJECT 2016 Budget Contractor Meeting Wages and bene ts Administration Catering Advertising Professional development Bad debt Professional fees Repairs and maintenance O ce Honorariums Grants cultural Telephone and utilities Rent Equipment rental Insurance Interest and bank charges Amortization Donations 9 358 078 706 854 357 511 573 429 170 370 86 000 119 700 24 000 24 000 120 057 37 800 33 000 41 000 48 000 40 000 7 000 2 700 11 749 499 78 NmTC Annual Report 2016 Actual 7 869 391 550 344 490 305 457 191 428 195 214 127 96 756 78 816 72 875 58 584 55 167 34 528 29 000 23 191 20 863 17 437 6 519 6 319 1 908 10 511 516 2015 Actual 8 290 675 383 705 417 095 512 003 266 422 188 265 73 571 57 660 190 738 33 408 35 364 39 942 27 000 24 163 25 794 4 310 5 144 1 007 10 992 250 10 587 508

NAUT SA MAWT TRIBAL COUNCIL NOTES TO CONSOLIDATED FINANCIAL STATEMENTS MARCH 31 2016 15 SEGMENTED INFORMATION 2016 Budget Revenues INAC INAC Recovery Interest income Administration fee Other revenue Total revenue Expenses Contractor Meeting Wages and bene ts Administration Catering Advertising Professional development Bad debt Other expenses Total expenses Annual surplus de cit Administration 2016 Actual 525 000 519 000 537 935 6 812 15 132 457 166 84 374 2015 Actual 545 516 7 297 508 615 25 070 2016 Budget 9 012 897 1 342 775 Programs 2016 Actual 8 282 133 79 741 218 761 2015 Actual 10 399 560 260 016 728 255 1 044 000 919 047 1 086 498 10 355 672 8 421 153 9 411 289 241 500 335 700 16 100 86 000 113 700 369 500 269 326 2 883 490 305 15 156 214 127 88 913 38 216 322 737 46 997 13 871 412 392 6 317 188 265 70 369 17 060 395 349 9 116 578 706 854 21 811 573 429 154 270 6 000 8 057 7 600 065 547 461 457 191 413 039 7 843 3 654 8 243 678 369 834 4 703 512 003 260 105 3 202 2 763 1 162 500 1 441 663 1 150 620 10 586 999 9 029 253 9 396 288 118 500 522 616 64 122 231 327 608 100 15 001 NmTC Annual Report 79

NAUT SA MAWT TRIBAL COUNCIL NOTES TO CONSOLIDATED FINANCIAL STATEMENTS MARCH 31 2016 15 SEGMENTED INFORMATION continued 2016 Budget Revenues INAC INAC Recovery Net income from Government Business Enterprises Interest income Administration fee Other revenue 2016 Budget Capital Reserve Fund 2016 2015 Actual Actual 40 600 40 600 519 000 1 342 775 55 732 457 166 134 387 Total revenue 23 451 114 567 11 399 672 9 316 749 10 383 220 Expenses Contractor Meeting Wages and bene ts Administration Catering Advertising Professional development Bad debt Other expenses 40 600 40 600 9 358 078 706 854 357 511 573 429 170 370 86 000 119 700 377 557 7 869 391 550 344 490 305 457 191 428 195 214 127 96 756 38 216 366 991 8 290 675 383 705 417 095 512 003 266 422 188 265 73 571 17 060 438 712 Total expenses 40 600 40 600 11 749 499 10 511 516 10 587 508 64 051 155 167 80 NmTC Annual Report 15 9 537 897 349 827 8 820 068 86 553 64 051 2015 Actual Consolidated totals 2016 Actual 2016 Budget 155 167 2015 Actual 64 051 Annual surplus de cit Enterprise Fund 2016 Actual 1 194 767 10 945 076 260 016 155 167 47 897 508 615 703 185 204 288

THE NAUT SA MAWT TEAM NmTC Annual Report 81

Administration and Operations Team Gary Reith Kirstin Sware Nicole Pelland Cathy Ramli Chief Administrative O cer 604 943 6712 garyr nautsamawt com Events Manger 604 943 6712 kirstins nautsamawt com Executive Assistant 604 943 6712 nicolep nautsamawt com Receptionist Events Assistant 604 943 6712 cathyr nautsamawt com 82 NmTC Annual Report

Finance Team Lisa Scott Edith Moore Marcia Symour Evelyn Allen Director of Finance 250 324 1800 lisas nautsamawt com Finance Assistant 250 324 1800 edithm nautsamawt com Finance Assistant 250 324 1800 marcias nautsamawt com Finance Clerk 250 324 1800 evelyn nautsamawt com NmTC Annual Report 83

Salish Sea Sentinel Team Mark Kiemele Kelly Landry Manoj Sood Editor 250 246 3438 editor salishseasentinel ca Creative Director Manager 250 324 1800 kellyl nautsamawt com Advertising Sales 604 723 8355 manojs salishseasentinel ca Cara McKenna Tricia Thomas Journalist 604 366 6215 caradawnmckenna gmail com Photographer 250 709 2929 triciathomas salishseasentinel ca 84 NmTC Annual Report

Advisory Services Team Lisa Scott Valerie Cross Blackett Chemkwaat Erik Blaney Finance and Administration 250 324 1800 lisas nautsamawt com Governance 604 329 6815 valeriecb nautsamawt com Economic Development 604 483 1308 erikb nautsamawt com Bronwen Geddes John Bolton Eric Blueschke Community Planning 778 999 5924 bronweng nautsamawt com Technical Services 604 980 5783 johnb nautsamawt com Housing Policy 250 380 8762 eric blueschke com NmTC Annual Report 85

WORKING TOGETHER AS ONE WORKING TOGETHER AS ONE TO SUPPORT AND STRENGTHEN OUR ELEVEN COAST SALISH MEMBER COMMUNITIES THROUGH E CO N O M I C D E V E LO P M E N T S T R O N G GOVERNANCE COMMUNITY PLANNING FINANCIAL MANAGEMENT AND TECHNICAL SERVICES