PHS COMMUNITY SERVICES SOCIETY

Financial Statements March 31, 2013

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PHS COMMUNITY SERVICES SOCIETY

FINANCIAL STATEMENTS March 31, 2013

CONTENTS

INDEPENDENT AUDITORS' REPORT STATEMENT OF OPERATIONS STATEMENT OF CHANGES IN FUND BALANCES STATEMENT OF CASH FLOWS STATEMENT OF FINANCIAL POSITION NOTES TO THE FINANCIAL STATEMENTS SCHEDULE OF OPERATIONS - BC HOUSING FUND 2013 - BC HOUSING FUND 2012 SCHEDULE 1 SCHEDULE 2 STATEMENT 1 STATEMENT 2 STATEMENT 3 STATEMENT 4

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COQUITLAM

2nd Floor Heron Centre 566 Lougheed Highway Coquitiain.BC V3K3S3 Telephone 604-936-4377 Fax 604-936-8376 www.eprcoq.com

INDEPENDENT AUDITORS' REPORT

To The Members of PHS Community Services Society We have audited the accompanying financial statements of PHS Community Services Society, which comprise the statement of financial position as at March 31, 2013, and the statements of operations, changes in fund balances and cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information. Management's responsibility for the financial statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with Canadian accounting standards for not-for-profit organizations, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors' responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Canadian generaBy accepted auditing standards. Those standards require that we comply wfth ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion
In our opinion, these financial statements present tairly, in all material respects, the financial position of PHS Community Services Society as at March 31, 2013, and its financial performance and its cash flows for the year then ended in accordance with Canadian accounting standards for not-for-profit organizations. Our previous report dated July 30, 2013 has been withdrawn. The financial statements have been revised as a result of an option to purchase real property in the amount of $6,000,000, identified as applicable to the current period after the previous report was issued. This resulted in both investment and gain on disposal of investment to increase by $6,000,000, a change from an operational deficit of $2,070,566 to a surplus of $3,929,434, and an increase in fund balances-from a deficit of $168,926 to a cumulative excess of $5,831,074.

P(L
CERTIFIED GENERAL ACCOUNTANTS

Coquitlam, B.C. July 30,2013 - except for the

gain on sale ol investment identified as applicable to the current period as noted above, which are as of August 26, 2013

An Independent Member Firm of EPR Canada Group Inc.

PHS COMMUNITY SERVICES SOCIETY

STATEMENT OF OPERATIONS fm Ended March 3 1 , 2 0 1 8

STATEMENT 1

General Fund BC Housing Fund (Schedule 1) Revenue BC Housing Management Commission grants Vancouver Coastal Health Authority grants Rant Health Canada grants Transfer from deterred grants relating to capital i Other Income Other servteo grants Vancouver Coastal Health Authority grant - Unity Houstng Donations and fund raising BC Gamma Comnsssron grant 11.699,646 Eipenaea Staffing costs Repairs and maintenance Building operational costs Amortization Residential services operational costs Program support Interest paid On long term debt Write ofl of receivables hum related party General administrative costs note 13 1,104,627 11,381,346 Excess (deficiency) of revenue over expenses before transfers and other previsions Provision to repay BC Housing Management Commission Transferred to replacement reserve P r i n t to Unity Housing Society Excess (deficiency) ot revenue over expenses before gain on Investment Gain on disposal of Investment Eaceee (defldency) ot revenue over eapenaes lor the year (18.760) (983.049) (18.780) (983.049) (1,068.737) 6.000,000 318.300 774,697 177,087 611,169 2.768,545 458.428 5,210.702 2.407,566 1.095.498 8,816.512 1.266.831 1.400.658 2,342.377 8,816.512 1.266.831 1.400,658 2.342.377 2,766,545 458,428 22.062 1,657,940 16,731,353 14,027,214 3,674,397 2.496,156 2,342,377 3.541,242 63S.515 611,169 22,062 2,762.567 30,112,699 1,159,038 11,043.739 772.356 168.934 621.261 63,953 1.303,372 15.338,097 2.673,575 261,865 4,637,266 2,677.249 987.615 8.189,953 1,313,468 1,531,891 1.182.875 2.207,604 256,110 99.344 90,000 Oporatlona Capital Assets Total General Fund BC Housing

General Fund Capital Operations Assets Total General Fund

row

Fund (Schedule 2)

8.757,719 2.928.317 8,319.766 1,194.241 2.270.833

a.757.719

8,497.765 2.800.755

$
8.815,949 1.427,534 2.285.621

$
8,615,949 1,427,534 2.285,621 1.362.505 1.362.505 838.321 2.170,881 255.510

8.497.765 8.615,949 4.22B.289 2.285,621

1.273.640.00 1.273,640

8,319.766 1.194.241 2.270,833 1.273,640 1,182.875 2,207.604 256,110 99,344 90,000 16,894,413

8.319,766 4.122,558 2,270.833 1.273.640 1.1B8.B75 2.221,214 256.110 99.344 90,000

10.745

1.362.505
836.321 2,181,626

B38.321 2.170.B81 255,510 104,443 90,000

11,309.265

255.510
104,443 90,000

.
1,362,505

104.443 90,000 17,150.764

15,788.259

26,460,029
12.627.239 3,990,737 2.519.S06 2566,574 3,445,931 450,799 621.261 63.953 2,462.410 28,650,410

8.189,953 1.313,468 1.531,891 2,268.574 2.268,574 2,673,575 261.865 63,953 1,303,372 2,268.574 17,606.671

22,062 1,657^940 16,368,976

(766.203)

(1,068,737)

(1,836,940)

(1.518,640) 93,000 244.080

265,526
100.500 233.280

450,162

(906,069)

(455,907)

(190,381) 100.500 233.280

93.000 244.060
214.846

214,846

214,646

214,246

214,246

(2,051,788)
6,000,000

(2,070,566)
6,000,000

(68.254)

235,916

(906,069)

(670,153)

(738,407)

4.931563

(68.254)

235.915

(906,069)

(670,t53)

(738.407)

Tha aooompanfy<ng notaa art an intaqral part ot thasa ffnandal atatamanla

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PHS COMMUNITY SERVICES SOCIETY

STATEMENT OF CHANGES IN FUND BALANCES Year Ended March 31, 2012

STATEMENT 2

2013
BC Housing Fund Fund balances, beginning ot year Excess (deficiency) of revenues over expenses lor the year Inter-lund translers Fund balances, end ol year $ (18,780) (487,615) (1,769,035) $ 243,827 816,766 $ (983,049) (905.742) (1,581.988) $ 4.931,263 1.149.530 8.365,331 S t $ 3.948.214 243,788 6,783,343 $ 3.929.434 5,631,074 (68.254) $ Replacement Reserve Fund 572,939 General Fund Capital Assets 5 2,284,538 Replacement Total General Fund $ 2,591,341 $ Total 1,901,640 BC Housing Fund $ (845,260) $ Reserve Fund 210.060 $ Operations

2012 General Fund Capital Assets 3,377,570 Total General Fund S 3.275.247 $ Total 2.640.047

Operations $ 309,803

(1,262.640) $

(102,323) $

235.916

(906.069)

(670.153)

(738.407)

(349,126)
$ (1.262.640) I

362.879
572.939 $

173.210
306303 $

(186.963)
2.284.538 $

(13.753)
2.591,341 $

1.901,640

Tha accompanying notes are an Integral part o< these financial statements

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PHS COMMUNITY SERVICES SOCIETY

STATEMENT OF CASH FLOWS Year Ended March 31, 2013 2013 Cash flows from (for) operating activities: Excess of revenue over expenses (expenses over revenue) for the year Items not requiring an outlay of cash Amortization Interest on capital leases Gain on disposal of investment Changes in non-cash working capital Decrease (increase) in accounts receivable Decrease (increase) in government agencies recoverable Increase in inventory Decrease (increase) in prepaid expenses Increase (decrease) in accounts payable and accrued liabilities Decrease in salaries and dues payable Increase (decrease) in damage deposits Increase (decrease) in deferred grants $ 3,929,434 2,342,377 26,098 (6,000,000) 297,909 (1,116,645) (276,732) (20,803) 1,461 1,668,285 77,019 (223) (135,369) 494,902 Cash flows from (for) financing activities: Capital lease payments Net change in deferred grants relating to capital assets Repayment of long term debt Proceeds from long-term debt Proceeds from bank indebtedness (61,423) 3,082,933 (575,507) 11,395 1,319,505
3,776,903 Cash flows from (for) investing activities: Purchase of capital assets Decrease in cash Cash, beginning of year Cash, end of_year Cash consist of Cash Restricted cash $

STATEMENT 3

2012 $ (738,406) 2,268,574 5,834 1,536,002 39,676 731,623 9,474 (1,643,469) 75,712 5,598 387,865 1,142,481 (24,891) 281,944 (454,269) 4,391,215
4,193,999

% _ ff
/_fv

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r r o n c r o r c o ;r c

(4,929,172) (657,367) 1,499,370 842,003

(5,378,616) (42,136) 1,541,506 $ 1,499,370

25,237 816,766 842,003

926,431 572,939

$ 1,499,370

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

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PHS COMMUNITY SERVICES SOCIETY

STATEMENT OF FINANCIAL POSITION Year Ended March 31. 2013 BC Housing Fund ASSETS Current. Cash Restricted cash Accounts receivable note 2 Government agencies recoverable inventory Prepaid expenses investment - note 5 Capital assets and assets under capital lease - note 6 1,238.962 LIABILITIES Current Band overdraft - noie 3 Bank indebtedness - note 4 Accounts payable end accrued liabilities Salaries and dues payable Damage deposits Delorred grants note 7 Current portion ol capital lease obligations - note 8 Scheduled repayments for callable and long term debt - note 9 Current liabilities before callable debt Callable debt - note 9 Capital lease obligation - note 8 Long term debt - note 9 Deterred grants relating lo capital assets - note 10 Fund Option lo acquire property and contingent gains - note 11 Dental clinic endowment lund - note 12 nttments note 14 Replacement Reserve Fund General Fund Capital Aaaets

STATEMENT 4

Operations

Total General Fund

935.923 303.039

S 816.766

25.237 $ 1,469,348 182,074 20.803 76.257 1.773.719 6.000,000 49,773.205

25.237 S 1.469,348 182.074 20,803 76,257 1.773.719 6.000,000 49,773,205 STfi*t.W

1.238.982 816,766

818,766

1,773,710

25.237 $ 816.766 2.405,271 485.113 20.803 76,257 3.829,447 6,000.000 49.773.205 59,602,852

926,431 572,939 1,327,952 208.381 77,718 3,113.421 47.017,594 50,131,015

2,186.974 111,117 729.906

113.843 1,205.662 711,021 413,219 30.657 881.305 52.225 588.434 638.659 1.990.569 2.629,228 103.775 16.701.438 27.973.433 47.407,874 8.365.331 55,773,205

3.007.997 3.007,997

3,355,707 3.355.707

3,007,997 (1.769,035) 1,238,982

816.766 816,766

3.355.707 (1.581.968) 1,773,719

113.843 1,205.662 711.021 413.219 30.657 881.305 52.22S 586.434 3,994,366 1.990.569 5.984.935 103,775 16,701.438 27.973.433 50,763.581 6,783.343 57,548,824

113,843 1.205,662 2.877,995 413,219 141,774 1,611,211 52.225 588.434 7.002,363 1,990,569 8.992,932 103,775 16.701,438 27.973,433 53,771,578 5,831.074 59,802,852

1.209,711 336.200 141.997 1.746,579 22,150 567.710 4,024.347 4,024,347 39,882 19.274.846 24.890.500 48,229,375 1,901,640 50,131,015

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accompanying notes are an integral part ol these Imandal statements

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PHS COMMUNITY SERVICES SOCIETY

NOTES TO THE FINANCIAL STATEMENTS Year Ended March 31, 2013

NATURE OF BUSINESS PHS Community Services Society ("Society") is incorporated under the Society Act of British Columbia as a not-for-profit organization and is a registered charity under the Income Tax Act. The Society is exempt from income taxes under section 149 (1) (f) of the Act. The Society was established to provide housing support and services, education and advocacy to individuals and their communities. 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accounting policies of the Society are in accordance with Canadian accounting standards for notfor-profit organzations. Outlined below are those policies considered particularly significant. Fund Accounting The Society follows the restricted fund method of accounting for contributions. The General Fund is used for the Society's program delivery and administrative activities. This fund reports unrestricted resources and restricted operating grants. The General Fund includes a Capital Asset Fund, which includes the assets, liabilities, revenues, and expenses related to the Society's tangible capital assets. The BC Housing Fund includes the assets, liabilities, revenues and expenses for operations and programs funded by the BC Housing Management Commission ("BC Housing"). The Replacement Reserve Fund includes funds that are restricted to capital asset repairs and improvement expenditures in accordance with agreements with the funding agencies. All expenditures from this fund must be approved by the funding agencies during the annual budget process. Investment The Society initially measures its investment at fair value and subsequently measures it at amortized cost. Capital Assets and Amortization Contributed capital assets are recorded at fair market value at the date of contribution. Purchased capital assets are recorded at cost. Amortization is provided annually at rates calculated over their estimated useful lives as follows except in the year of acquisition when one half of the rate is used: Appliances Buildings Computer equipment Equipment under capital lease Office furniture and equipment Vehicles Leasehold property 30% 20 / 50 years 2 years 5 years 5 years 5 years 35 years straight-line straight-line straight-line straight-line straight-line straight-line straight-line

PHS COMMUNITY SERVICES SOCIETY

NOTES TO THE FINANCIAL STATEMENTS Year Ended March 31, 2013

1.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONT'D Impairment of Long-lived Assets Long-lived assets are reviewed for impairment when events and circumstances indicate that cost may not be recoverable. Impairment exists when the carrying value of an asset is greater than the undiscounted future cash flows expected to be provided by the asset. The amount of impairment loss, if any, is the excess of the carrying value over its fair value. Revenue Recognition The Society receives grants from various sources as reflected in the statement of operations, and follows the restricted fund method of accounting for contributions. Externally restricted contributions are recognized in the fund corresponding to the purpose for which they were contributed when received or receivable, if the amount to be received can be reasonably estimated and collection is reasonably assured. Contributions not corresponding to any restricted fund are recognized as revenue in the General Fund under the deferral method of accounting for contributions. Therefore, restricted contributions reported in the General Fund are accounted for in accordance with restrictions imposed on the contributions. Unrestricted contributions are recognized as revenue when they are received or receivable if the amount to be received can be reasonably estimated and collection is reasonably assured. Administrative charges and management fees are recognized as revenue based on services provided. Rental revenue from operating leases is recognized as income over the term of the lease as it becomes due.

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PHS COMMUNITY SERVICES SOCIETY

NOTES TO THE FINANCIAL STATEMENTS Year Ended March 31, 2013

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTD Allocation of Expenses The Society engages in various low income housing and property management programs. The costs of each program include staffing costs, repairs and maintenance, building operational costs and other expenses that are directly related to providing support services. The Society also incurs general expenses to support the administration of the organization and each of its programs. General and administrative expenses are allocated based on budgeted amounts approved by the funding agencies. Use of Estimates The preparation of financial statements in accordance with Canadian accounting standards requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported period. Estimates are used for, but are not limited to, the accounting for doubtful accounts, amortization, impairment, accruals and contingencies. Actual results may differ from those estimates. 2. ACCOUNTS RECEIVABLE Accounts receivable includes $310,327 (2012 - $286,142) receivable from non-profit organizations with significant influence and control. 3. BANK OVERDRAFT 2013 2012 $ $

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Cash Excess of outstanding cheques over deposits

283,092 (396,935)

$ (113,843)

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4.

BANK INDEBTEDNESS The Society has a credit facility available to a limit of $2,500,000, repayable on demand, bearing interest at the Royal Bank's prime rate plus 1.00% and secured by a general security agreement. As at March 31, 2013, the Society has drawn $1,055,000 on its operating line of credit. In addition, the Society has two operating loans with VanCity. One is the line of credit with approved limit of $70,000, repayable on demand, bearing interest at 4.5%. The other is a one-year business loan with approved amount of $130,000, due on October 15, 2013, bearing interest at Vancity prime rate plus 1.5%. As at March 31, 2013, the Society has drawn $30,280 and $119,165 from its line of credit and business loan respectively.

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PHS COMMUNITY SERVICES SOCIETY

NOTES TO THE FINANCIAL STATEMENTS Year Ended March 31, 2013

5.

INVESTMENT The investment represents an option to purchase real property. For further details, see Note 11 Option to Acquire Property and Contingent Gains with respect to the MOA.

CAPITAL ASSETS 2013 Cost Appliances Buildings Computer equipment Equipment under capital lease Land Leasehold property Office furniture and equipment Vehicles $ 52,612 55,943,948 61,392 288,866 2,244,849 2,265,464 198,210 227,683 $51,283,024 Accumulated Amortization $ 12,133 11,057,688 57,567 94,590 113,369 70,982 103,490 Net Book Value $ 40,479 44,886,260 3,825 194,276 2,244,849 2,152,095 127,228 124,193 $49,773,205 2012 Net Book Value $ 3,033 42,344,302 13,651 69,944 2,244,849 2,128,237 56,379 157,199 $47,017,594

$11,509,819

7.

DEFERRED GRANTS The amount represents funds received for future operations.

PHS COMMUNITY SERVICES SOCIETY

NOTES TO THE FINANCIAL STATEMENTS Year Ended March 31, 2013

8.

CAPITAL LEASE OBLIGATIONS 2013 MCAP Leasing - Phone Systems RCAP Leasing - Copier / Printer Coast Capital - Pharmacy Dispenser $ 28,424 14,132 131,579 174,135 Less deferred interest 18,135 156,000 Less current portion $ 52,225 103,775 $ $ 2012 51,770 17,315 69,085 7,253 61,832 22,150 39,682

Phone systems leased for the Rainier Hotel and the Pennsylvania Hotel require monthly installments of $594 and $1,458 respectively, which include interest at 10.10% and 9.94%. The leases are due March 2014 and July 2014, respectively, with a purchase option of $10 for each. Copier / Printer leased for the Society require monthly installments of $267, which includes interest at 3.94%. The lease is due March 2017 with a purchase option of $1,582. Pharmacy dispenser leased for the Society require monthly installments of $2,799, which includes interest at 6.43%. The lease is due March 15, 2017 with a purchase option of $1.00. Minimum payments under capital lease due within each of the following four years is as follows: 2014 2015 2016 2017 $ 60,838 41,182 36,799 35,316

PHS COMMUNITY SERVICES SOCIETY

NOTES TO THE FINANCIAL STATEMENTS Year Ended March 31, 2013

LONG TERM DEBT 2013 Mortgage - Vancity Mortgage - Bank of Nova Scotia Mortgage - Canada Mortgage and Housing Corporation Mortgage - Royal Bank of Canada Mortgage - Royal Bank of Canada Vehicle Loan - Dueck Pontiac Buick GMC Limited Vehicle Loan - Richmond Chrysler Dodge Jeep Limited Vehicle Loans - Maple Ridge Chrysler Jeep Dodge 2012

$ 2,043,925 5,572,652 1,900,328 3,557,411 6,086,733 421 13,515 103,456

19,278,441

$ 2,095,734 5,749,357 2,052,507 3,619,444 6,178,493 5,486 20,804 120,731

19,842,556 567,710 19,274,846 $19,274,846

Less: scheduled repayments required within 12 months

586,434 18,692,007

Less: callable debt

1,990,569 $16,701,438

The mortgage with the Vancity is secured by The Only building at 20 East Hastings Street, Vancouver, BC and Is repayable in monthly installments of $10,877, which includes interest at 3.85%. The mortgage is due for renewal on February 16, 2017. The mortgage with the Bank of Nova Scotia is secured by the Portland Hotel building at 20 West Hastings Street, Vancouver, BC and is repayable in monthly installments of $28,805, which includes interest at 2.999%. The mortgage is due for renewal on March 1, 2015. The mortgage with the Canada Mortgage and Housing Corporation is secured by the Tellier Place building at 16 East Hastings Street, Vancouver BC and is repayable in monthly installments of $18,646, which includes interest at 3.65%. The mortgage is due for renewal on June 1, 2018. The mortgage of $3,557,411 with the Royal Bank of Canada is secured by the Pennsylvania Hotel building at 412 Carrall Street, Vancouver BC and is repayable in monthly installments of $15,907, which includes interest at 3.615%. The mortgage is due for renewal on July 1, 2014. The mortgage of $6,086,733 with the Royal Bank of Canada is secured by the Woodwards building at 131 West Hastings Street, Vancouver BC and is repayable in monthly installments of $27,360, which includes interest at 3.89%. The mortgage is due for renewal on October 1, 2020.

PHS COMMUNITY SERVICES SOCIETY

NOTES TO THE FINANCIAL STATEMENTS Year Ended March 31, 2013

9.

LONG TERM DEBT - CONT'D The vehicle loan with Richmond Chrysler Dodge Jeep Limited is repayable in monthly installments of $665, which includes interest at 3.99%. The vehicle loan will mature on December 9, 2014. The vehicle loans with Maple Ridge Chrysler Jeep Dodge are repayable in monthly installments of $991, $786, $786 and $495 which includes interest at 7.44%, 7.24%, 7.24% and 0% respectively. The vehicle loan will mature on December 22, 2016, November 3, 2016, November 3, 2016 and August 18, 2014 respectively. The aggregate amount of principal payments required in each of the next five years on the above indebtedness is as follows: 2014 2015 2016 2017 2018 $ 586,434 9,233,280 355,126 2,180,074 1,343,550

10. DEFERRED GRANTS RELATING TO CAPITAL ASSETS The deferred revenue relating to capital assets are made up of grants received which may only be used for the purpose of building construction and purchase of capital assets. The deferred capital grants are restricted for the renovation of buildings. These grants are amortized on the same basis as the related capital assets are amortized. 11 . OPTION TO ACQUIRE PROPERTY AND CONTINGENT GAINS The Society has extended its option agreement to purchase an undivided 50% beneficial interest for a sum of $1 plus the assumption of all liabilities relating to the properties located at 1 West Hastings Street and 333-335 Carrall Street, Vancouver, British Columbia (Pigeon Park Building). The option will expire on July 31, 2013. Upon exercise of the option, the Society will record the properties at a cost of $1 plus the assumption of any liabilities. The Society has entered into a Memorandum of Agreement (the "MOA") to which it is entitled to purchase low income housing units, based on future negotiated prices, in the Stanley/New Fountain Hotel subsequent to redevelopment by the other party (the "Developer") to the MOA. Upon completion of redevelopment, the Society is entitled to receive the Excess Residual Land Value, if any, calculated by subtracting from projected revenues, redevelopment costs (inclusive of land cost of $2 million, the "Option Price") plus a Minimum Return. The Minimum Return is the Developer's profit as a percentage of total projected redevelopment costs. If the Developer does not proceed with the redevelopment, before going to market to sell the property, the Society has an option to purchase the property for a price equal to all costs incurred by the Developer but not limited to the Option Price, transaction costs, costs incurred in attempting to resolve a viable redevelopment of the property, operating expenses and any holding or carrying costs on debt or equity with respect to the property.

El

PHS COMMUNITY SERVICES SOCIETY

NOTES TO THE FINANCIAL STATEMENTS Year Ended March 31, 2013

12. DENTAL CLINIC ENDOWMENT FUND The Society has an endowment fund established by the University of British Columbia (UBC) known as the Portland Community Dental Clinic Endowment Fund. The income earned will be used to support the ongoing operations of the Portland Community Dental Clinic. The capital will be held and managed by UBC. The total capital balance of the fund at March 31, 2013 was $990,000 with a market value of $1,028,709.

13. ALLOCATION OF EXPENSES General administrative costs of $2,762,567 (2012 - $2,462,410) have been allocated as follows: 2013 BC Housing programs Other programs $1,104,627 1,657,940 $2,762,567 2012 $1,159,038 1,303,372 $2,462,410

14. COMMITMENTS The Society is committed to the completion of the Alexander St. construction project located at 111 Princess Street, Vancouver, British Columbia. The total estimated capital cost to complete this project is $31,500,000. The costs incurred to date are $6,947,561. These expenditures are funded by the BC Housing Management Commission.

15. COMPARATIVE FIGURES Certain of these comparative figures have been reclassified to conform with the financial statement presentation adopted in the current year.

PHS COMMUNITY SERVICES SOCIETY

SCHEDULE OF OPERATIONS- BC HOUSING FUND Var Ended Match 31. 2012 Portland Hotel Revenue BC Housing Management Commission grams Rant Othar aarvlca grants $ 446,652 347,224 795.876 Expenses Stalling costs Repairs and maintenance Building operational costs Residential services operational costs Program support Interest paid on long-term debt General and administrative costs Eiceas (deficiency) of revenue over expenses betore transfers and other provisions Provtalon to repay BC Housing Management Commission Transferred to replacement reserve Excess (deficiency) of revenue over expenses for trie year Washington Hotal $ 574.992 328.825 903,816 353.592 400,236 72,094 40.392 9.073 65,974 941,362 (37.546) (37.741) 31,680 (50.972) (37,546) (37,741) (2,464) 90.000 15.302 S Sunrlsa Pennsylvania Hotal Woodwards' Singles S 1,156,500 548,517 1.705.017 465.395 456.091 167,188 68,452 1t,238 239.451 171,900 1,599.715 S Station SL Building 141.493 345.067 486.560 Station SL Support Service* Beacon Holel $ 508,700 165.383 674,063 300,468 164,083 20,535 23,044 8.541 124,301

SCHEDULE 2

556.535 206,749 763.284 298.910 308,139 69,892 49.304 8,806 65,974

601.920 231.302 833.222 328,639 147.986 78.566 20.384 15.325 130.859 82,247 804,006

949,043

949,043 698.647

394,363 149,312 15,559 15,809 173,711 98,093 846,848 (50.972)

321,260 70,186 159.802 20.149 35.200 446,795 39,765 57.600 (17,835) 19,967 70,628 929,076 19,967

33.092 32.500

592

Rainier Hotel Revenue BC Housing Management Commission grants Rani Other service grams $ 150.812 170,802 321,614 Expanses Stalling costs Repairs and malntsfianca Buiwtng operational costs Residential services operational costs Program support Interest paid on long-term debt General and admtnhrtrattve costs Excess (deficiency) of revenue over expenses before transfers and Othar provisions Provision to repay BC Housing Management Commission Transferred to replacement reserve Excess (deficiency) of revenue over expenses for the year

Rainier Support Services S 579.820

Molson's Bank Building % 107.255 157,904 285,160

Molaon'a Support Services $ 550.977 J

Housing Teem 569.078 S

Hutchinson Block 84.033 $

New Fountain Shelter 1,072.296 10,745 $

Telller Tower 445.659 299,003 744,662 119.368 140.542 195.636 11.527 5.485 77.240 549,817 194.845 45.000 54.000 95,845 $

2012 TOTAL 8,497.765 2.800,755 10,745 11.309.265 4,837.268 2.677,249 987,615 772,356 180.934 821.261 1,159,038 11.043,739 265.526 100.500 233,280 (65,254)

579,820 499.896 34.772 37.036

550,977 528,985

569,078 453.433 19.408 1.875 24,072 13,052 54,988

84,033 67,567

1.083,041 502,365 72,421 81.822 26B.144 49,539 107,232 1,081,523 1.518

66.044 31,501 21.419 21,754

151.903 49,010 6.029 7.515 135,373 349,829

17,844 2.648

7,116 84,033

549.477 1.500

568,829

40.884 23.000

8,116

(84.669)

17,884

(84.669)

1,516

E&