Matachewan First Nation Limited Partnership Financial Information for the year ended March 31, 2018 November 10, 2018
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MatachewanFirst Nation Limited PartnershipFinancial Information for the year ended March 31, 2018November 10, 2018
2© 2017 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International.
Matachewan First Nation Limited Partnership -Structure
99%
Matachewan First Nation
MFNLP
2242185 Ontario Inc.
1%
100%
EdnisyanCamps Ltd.
51% 51%2284055
Ontario Inc.
2284055 Ontario Inc.(Bluewater)
Financial Information – year ended March 31, 2018
4© 2017 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International.
Auditor’s ReportFinancial Statement Review
5© 2017 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International.
Statement of Comprehensive IncomeFinancial Statement Review
Highlights
• Hauling – 100% subcontractor to MFNLP
• Subcontracting - trucking to other contractors
• Equipment rental from MFNLP $8,000/mth
• Dispatch services – Canor• 2017 - gain from sale of
loader to MFNLP
• Management fees = taxable income = approximate profit
6© 2017 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International.
Statement of Cash FlowsFinancial Statement Review
Highlights
• Positive cash flow from operations used to payout to shareholders re management fees
• $450,000 loan from MMPLP @ 5% interest – used to acquire trailers
7© 2017 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International.
Statement of Financial PositionFinancial Statement Review
Highlights
• Cash increase with profit• 2017 prepaid - deposit for 2
trailers• Property and equipment
increase with trailer purchases
• Decrease in accounts payable as trailer purchase owing in 2017
• Management fee• 147,135 – MFNLP• 141,365 – Don Seguin
• 2017 Management fee fully paid
Ednisyan Camps and Logistics Ltd.
Financial Information – year ended March 31, 2018
9© 2017 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International.
Statement of Comprehensive IncomeFinancial Statement Review
Highlights
• Demobilization fees per agreement
• 2017 loss on disposal of trailer at less than accounting value
10© 2017 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International.
Statement of Cash FlowsFinancial Statement Review
Highlights
• Cash used to repay shareholders
• Proceeds from trailer sale $50,000
11© 2017 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International.
Statement of Financial PositionFinancial Statement Review
Highlights
• Cash used to pay shareholders
• Accounts receivable all HST
• Insufficient cash to pay management fees (due to management fees calculated on taxes owing)
Matachewan First Nation Limited PartnershipFinancial Information – year ended March 31, 2018
13© 2017 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International.
Statement of OperationsFinancial Statement Review
Highlights
• Administration – includes mgmt. fees (Bluewater $147,000 and Ednisyan - nil)
• Administration – bad debt re w/o of Ednisyan mgmt. fees
• Janitorial – profit 2018 $262,000 vs 2017 $277,000
• Hauling revenue per agreement with Alamos
• Rental revenue from Bluewater
• Hauling costs – Fisher Wavy $6.5M and Bluewater $1.5M
14© 2017 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International.
Statement of Cash FlowsFinancial Statement Review
Highlights
• Positive cash flow as management fees paid from Ednisyan
• Management fees unpaid
• MFNLP – acquires land $3.5M on behalf of MFN –MFN contributes cash
• Invest $720,000 share of plant
• Issue $450,000 loan to Bluewater
15© 2017 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International.
Statement of Financial PositionFinancial Statement Review
Highlights
• Accounts receivable –Alamos Gold (March)
• Loan receivable - Bluewater
• P&E – Land and batch plant
• Increase in Equity from contribution for land
16© 2017 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International.
Summary of Investment ContributionsFinancial Statement Review
Highlights
• Represents actual cash distributions to MFNLP
• Payment of accounting balances owing is dependent on cash flow
Thank you
Presentation by Wayne McDonald, CPA, CA
kpmg.ca
© 2016 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International.
The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.
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