annual report 2018 - royal oak burial park · 2018 annual report 1 contents message from the chair,...

ANNUAL REPORT

2018

b Royal Oak Burial Park

A beautiful place to remember.

2018 Annual Report 1

ContentsMessage from the Chair, Board of Cemetery Trustees of Greater Victoria 2

Message from the Executive Director 3

2018 A Year in Review 4

Showcasing Our People 10

2018 – Events in the Burial Park 12

The Seasons in the Burial Park 14

Financial Statements 18

2 Royal Oak Burial Park

Once again, I am delighted to provide you with an update of the activities of Royal Oak Burial Park covering the 2018 calendar year.

This is the third year of leadership from our Executive Director, Crystabelle Fobler, and she continues to amaze our board, as she brings her management skills to bear on Royal Oak Burial Park.

There are many skills required to successfully manage our burial park. Our first duty is to the families and individuals we serve in coping with the loss of a loved one. There are many different traditions that need to be supported, and we try to make sure that everyone’s requests are honoured. Besides our office staff who provide most of the bereavement and visitor support, our outside workers are also very involved in providing support for families. Our outside staff also maintain a very high-quality standard for our lands, which our visitors appreciate.

Besides our duty to our families and visitors, we also have a duty to our municipal owners, The City of Victoria, and the District of Saanich, to ensure the burial park is managed in a financially viable manner. This includes managing our finances so there will be enough funds accumulated in a “Perpetual Care Reserve Fund” to pay for maintenance of our burial park once our lands are fully utilized. Of the 135 acres owned, approximately 78 acres are now developed, and 17 acres had been cleared for future development. There is substantial land still available to develop over future years, but we need to be careful stewards of the land, as we meet the future needs of our client families. Of course, a portion of the land will be left in a natural state forever.

I have very much enjoyed the collegial interaction with our Executive Director and other employees of our burial park, and with our board colleagues. We have had several board members retire in the last calendar year, and I thank them for their service. We welcome our new board members as they take part in the important overview of the management of our burial park for 2019 and beyond.

Richard (Dick) Tuckey, ChairBoard of Cemetery Trustees of Greater Victoria

Message from the Chair, Board of Cemetery Trustees of Greater Victoria

The Board of Cemetery Trustees of Greater Victoria 2017–2018:

District of Saanich Appointees: Richard (Dick) Tuckey, Chair D. Christopher Lawless, V-ChairPaul Taylor

City of Victoria Appointees: Lois TomsKathi SpringerClr. Marianne Alto


Message from the Executive Director“Cemeteries should be more than places where stones lie on the ground. Cemeteries hold the stories of the people who have lived in the past…people who have shaped our past”. Author Unknown

Cemeteries are full of history and people who have shaped our past, present and through legacies left behind, our future. It is with this in mind that I present our 2018 Year in Review (Annual Report).

Two Thousand and Eighteen (2018) marked the 95th year our beautiful Burial Park has been operating in the Greater Victoria area. The Park was officially opened in 1923 by the District of Saanich and the City of Victoria. We acknowledge and respect the LEKWUNGEN and WSÁNEĆ peoples and their territory where Royal Oak Burial Park stands; their historical relationship with the land lives on today.

As we celebrated our 95th year, we were reminded how precious time is. Reflecting on the changes our Burial Park has been witness to, it reinforces our commitment to the thousands of people we have received into our care.

This is the essence of who we are here at Royal Oak Burial Park. We are your community. We are a team. We are your family and friends. We are caring individuals brought together through a shared principle: to look after those who have passed away and to support loved ones left behind.

I am proud to be a part of this team of men and women who work tirelessly to ensure our families are well-served, that loved ones entrusted to our care are looked after and our grounds are tended to with care. The team spirit and desire to work together is clearly visible and has gone a long way to ensuring our continued success.

I am also very thankful for the support, encouragement and guidance provided by the Board of Cemetery Trustees of Greater Victoria. The commitment and leadership shown by our Board Chair Dick Tuckey, helped to facilitate the many successes we achieved throughout the year.

I would also like to take this opportunity to recognize and thank two exceptional women who were part of our Board for many years: Lois Toms and Kathi Springer, both of whom retired from the Board in 2018. Their support and guidance to me personally were invaluable and they will be missed. On behalf of all of us at Royal Oak Burial Park, I wish them well.

Serving as Executive Director with this remarkable organization continues to be a great privilege and I look forward to working with my team to look after our community’s death care needs for many years to come.

Crystabelle B. FoblerExecutive Director


2018 A Year in ReviewWhat exactly is a “cemetery” or “burial park”? The answer if you were to look in a dictionary is simply “a burial ground”. Royal Oak Burial Park is much more than that! We area City within a City, a place where many of the services provided are the same or similar to those provided by your local municipality. Here are some examples to show the surprising correlation:

Customer ServiceThe first point of contact in a municipality where “excellent customer service” is defined as the art of taking care of a customer’s needs and delivering professional, helpful, high quality service and assistance before, during and after the customer’s requirements are met.

At Royal Oak Burial Park, we pride ourselves in the high level of care we provide to our client-families:

During: • All our staff are devoted to being helpful

and supportive and will provide clear information to ease decision-making and help plan the service requested by families.

After: • Continued care of the grounds (in

perpetuity) as well as support to families. Many families regularly come back and visit with our people and many have forged long lasting friendships…testimony to the level of care we provide.

SusanFront Desk

Lenora, Lorraine and RobertClient Service

Before: • We know the products and services

offered are what our families are looking for. This is accomplished through conversing with and listening to our families to find out what they want, analyzing trends, as well as learning and sharing information with colleagues in our profession.

• We also work to educate the public on the importance of pre-planning, as this will give “peace of mind” and allow consideration of all options, costs and service providers available to meet need.

Our Client Services Team


Culture & RecreationCulture & Recreation departments are tasked with ensuring citizens have outdoor space to exercise and enjoy other outdoor activities and events that will improve quality of life and engage the community. Environmental stewardship; cultural appreciation.

At Royal Oak Burial Park, families can enjoy:

• Passive recreation: leisurely walks

• Self-guided historical walks

• Hiking

• Dog-walking (provided dogs are leashed and dog owners respect the grounds and pick up after their pooch)

• Bird Watching

• And several special event days throughout the year.


Human ResourcesA Human Resources Department develops and maintains policies, programs and services that contribute to employee goals:

Here at the Burial Park, we are working on creating and implementing a solid HR program for employees that includes:

• Developing policies & procedures

• Health & Safety Training

• Employee Recognition Service Awards

• Marek Szkic received the 10-year Service Award

• Ilan Highton, Manager, Grounds Operations received the 15-year Service Award


Parks & BeautificationParks & Beautification in a municipality ensure preservation of green space, natural environments, flower gardens, maintenance of turf and tree canopy, etc.

At Royal Oak Burial Park:

• We plant shrubs, trees and flower gardens

• Trim bushes, shrubs & trees

• Tree Maintenance (dead tree removal/chipping)

• Turf maintenance: grass cutting, trimming, weeding

• Leaf pick up (Fall)


Planning & Development Planning & Development includes the planning, designing and development of land use to meet the needs of citizens.

In the Burial Park, we work with industry experts to survey, design, build or develop sections as wanted or needed by our client-families:

• Woodland Phase III, Green Burial area was a necessary development in 2018 required to meet the increasing desire of environmentally conscientious families.

• Columbarium Grove: an order was placed for the fabrication of a new columbarium unit to meet demand for outdoor cremation niche options.


Public WorksA Public Works department in a municipality plans, designs constructs, operates and maintains core service systems.

At Royal Oak Burial Park, we:

Recycling (all areas)

• Build and maintain several kilometers of our inner roadway system and walkways

• Design and construct irrigation lines, drainage systems

• Purchase and maintain our Fleet and Equipment (Backhoes, Chipper, trucks, burial equipment, gators, etc.).

• Garbage Pick-up and Recycling

• Develop and maintain environmental programs such as water capture/conservation; environmental protection

• Winter road and equipment maintenance


Showcasing Our People

Susan McMullen Family Service & Administrative Support Officer

Susan joined our team in January, 2014 after a career that included positions at Eaton’s (Food Services Manager); Canada Safeway (Customer Service), work as a Travel Consultant and a brief stint at with a local Funeral Provider.

Her role at Royal Oak Burial Park is diverse and includes providing administrative support to our Client Services Team and serving as receptionist, where she has the important task of meeting and greeting families as well as providing general information and assistance.

Susan has also taken on the role of working closely with families of the Little Spirits Garden, where she provides assistance to families dealing with the loss of a pregnancy or stillbirth and helps them to create memorials to honour their babes. Susan is proud to participate in the Annual Little Spirits Vigil where she has the honour of reciting a special poem each year.

Outside of work, Susan enjoys spending time with her husband, two grown children and their families that now include beautiful twin grandsons born in August, 2018.

Travelling, art collecting, curling and bowling are just few of the many activities that keep her busy.

Each year, in our Annual Review, we showcase one of our dedicated and compassionate employees. This year, we are delighted to feature our Family Service & Administrative Support Officer, Susan McMullen:


Our People at Work and Play


2018 – Events in the Burial Park

May 2018 Annual Mother’s Day Carnation GiveawayOur annual event honouring Mothers everywhere by giving away carnations to the first 500 people who visit the Park on Mother’s Day. ROBP’s Executive Director Crystabelle Fobler and Client Services Manager Lorraine Fracy meet visitors at the front gate and give away a WHITE carnation in honour of mothers who have passed away and PINK carnations in gratitude for mothers still with us.

June 2018 10th Annual Summer So(u)lsticeEach year, ROBP invites the public to welcome summer at our annual Summer So(u)lstice, an afternoon to stroll the Burial Park with friends and neighbours from our community, in a gentle, social setting, featuring music, poetry, history and, naturally an opportunity to remember departed friends and family.

In 2018, we celebrated the Burial Park’s 95th Anniversary!


October 2018Little Spirits VigilFor parents and families who suffer the tragic loss of a pregnancy or a baby through early death, Little Spirits Garden at Royal Oak Burial Park offers families a special place to remember and gather. Each year in October, we host our annual Remembrance Gathering, an opportunity for families to remember their babies lost, in a non-denominational, supportive environment through readings, songs, stories from parents, messages of inspiration and candle lighting.

November 2018 Our Lady of Fatima Annual Memorial MassEach year we are honoured to host Our Lady of Fatima Church’s Annual Memorial Mass in honour of All Saints Day and All Souls Day observances in our Mausoleum.


The Seasons in the Burial Park

Winter


Spring


Summer


Fall


Board of Cemetery Trustees of Greater Victoria

Financial StatementsYear Ended December 31, 2018


Board of Cemetery Trustees of Greater VictoriaFinancial StatementsFor the year ended December 31, 2018

Contents

Independent Auditor's Report 1-2

Financial Statements

Statement of Financial Position 3

Operating Fund - Statement of Operations and Changes in Fund Balance 4

Reserve Funds - Statement of Operations and Changes in Fund Balance 5

Capital Fund - Statement of Operations and Changes in Fund Balance 6

Operating Fund - Statement of Cash Flows 7

Notes to the Financial Statements 8-17


Grant Thornton LLPSuite 6501675 Douglas StreetVictoria, BCV8W 2G5

T +1 250 383 4191F +1 250 381 4623

Audit | Tax | Advisory© Grant Thornton LLP. A Canadian Member of Grant Thornton International Ltd 1

Independent auditor’s report

To the Trustees of Board of Cemetery Trustees of Greater Victoria

Opinion

We have audited the financial statements of Board of Cemetery Trustees of Greater Victoria (the Board”), which comprise the statement of financial position as at December 31, 2018, and the statements of operations, changes in fund balances and cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of Board of Cemetery Trustees of Greater Victoria as at December 31, 2018, and its results of its operations and its cash flows for the year then ended in accordance with Canadian accounting standards for not-for-profit organizations.

Basis for Opinion

We conducted our audit in accordance with Canadian generally accepted auditing standards. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Board in accordance with the ethical requirements that are relevant to our audit of the financial statements in Canada, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Responsibilities of Management and Those Charged with Governance 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.

In preparing the financial statements, management is responsible for assessing the Board’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Board or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Board’s financial reporting process.


Audit | Tax | Advisory© Grant Thornton LLP. A Canadian Member of Grant Thornton International Ltd 2

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Canadian generally accepted auditing standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the financial statements, whether due tofraud or error, design and perform audit procedures responsive to those risks, and obtain auditevidence that is sufficient and appropriate to provide a basis for our opinion. The risk of notdetecting a material misstatement resulting from fraud is higher than for one resulting from error,as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the overrideof internal control.

Obtain an understanding of internal control relevant to the audit in order to design auditprocedures that are appropriate in the circumstances, but not for the purpose of expressing anopinion on the effectiveness of the Board's internal control.

Evaluate the appropriateness of accounting policies used and the reasonableness of accountingestimates and related disclosures made by management.

Conclude on the appropriateness of management's use of the going concern basis of accountingand, based on the audit evidence obtained, whether a material uncertainty exists related to eventsor conditions that may cast significant doubt on the Board's ability to continue as a going concern.If we conclude that a material uncertainty exists, we are required to draw attention in our auditor'sreport to the related disclosures in the financial statements or, if such disclosures are inadequate,to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date ofour auditor's report. However, future events or conditions may cause the Board to cease tocontinue as a going concern.

Evaluate the overall presentation, structure and content of the financial statements, including thedisclosures, and whether the financial statements represent the underlying transactions andevents in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Victoria, Canada March 25, 2019 Chartered Professional Accountants


Board of Cemetery Trustees of Greater VictoriaStatement of Financial Position

Operating Capital Reserve Total TotalDecember 31 Fund Fund Funds 2018 2017

AssetsCurrentCash $ - $ - $ 1,602,748 $ 1,602,748 $ 644,659Internally restricted pre-need

short-term investments - - - - 84,480Accrued interest receivable - - 42,742 42,742 18,833Accounts receivable 475,036 - - 475,036 321,433Inventory 134,017 - - 134,017 127,938Prepaid expenses 21,563 - - 21,563 20,195Short-term investments (Note 5) - - 11,952,801 11,952,801 12,936,834Due from operating fund (Note 12) - - 155,466 155,466 60,029

630,616 - 13,753,757 14,384,373 14,214,401

Tangible capital assets (Note 7) - 4,844,836 - 4,844,836 5,352,184

Total assets $ 630,616 $ 4,844,836 $ 13,753,757 $ 19,229,209 $ 19,566,585

Liabilities and Fund BalancesLiabilitiesCurrentBank indebtedness (Note 8) $ 39,357 $ - $ - $ 39,357 $ 12,091Accounts payable 379,237 - - 379,237 440,333GST/PST payable 29,137 - - 29,137 31,930Employee deductions payable 14,333 - - 14,333 12,369Payable to reserve funds (Note 12) 155,466 - - 155,466 60,029Demand loan (Note 9) - 1,196,655 - 1,196,655 1,819,791Current portion of long-term debt (Note 10) - 31,429 - 31,429 31,429Current portion of capital lease obligation (Note 11) - 10,657 - 10,657 9,958

617,530 1,238,741 - 1,856,271 2,417,930

Deferred revenue - - - - 205,521Long-term debt (Note 10) - 775,385 - 775,385 837,612Capital lease (Note 11) - 14,439 - 14,439 25,096

Total liabilities 617,530 2,028,565 - 2,646,095 3,486,159

Fund BalancesExternally restricted:

Perpetual care - - 10,044,290 10,044,290 10,368,245Pre-need trust - - 2,941,356 2,941,356 2,835,852

Internally restricted:Future development - - 418,318 418,318 172,632Equipment replacement - - 141,210 141,210 143,490Pre-need selling expense - - 208,583 208,583 174,495

Invested in tangible capital assets - 2,816,271 - 2,816,271 2,628,298Unrestricted 13,086 - - 13,086 (242,586)

Total fund balances 13,086 2,816,271 13,753,757 16,583,114 16,080,426

Total liabilities and fund balances $ 630,616 $ 4,844,836 $ 13,753,757 $ 19,229,209 $ 19,566,585

Approved by the Board:

Trustee Trustee

The accompanying summary of significant accounting policies and notes are an integral part of these financial statements3


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5


Board of Cemetery Trustees of Greater VictoriaCapital Fund

Statement of Operations and Changes in Fund Balance

For the year ended December 31 2018 2017

IncomeActuarial adjustment to debt $ 30,798 $ 27,835

$ 30,798 $ 27,835

ExpensesAmortization 503,357 378,844Interest on demand loan 61,119 30,862Interest on long-term debt 32,625 31,500Loss on disposal of tangible capital assets 98,858 -

695,959 441,206

Deficiency of revenue over expense (665,161) (413,371)

Interfund TransfersContribution from Future Development Reserve Fund 26,825 (1,273,688)Contribution from Equipment Replacement Reserve Fund 78,000 42,213Contribution from Operating Fund - mausoleum loan interest 32,625 31,500Contribution from Operating Fund - mausoleum loan principal 31,429 31,429Contribution from Operating Fund - section T loan interest 61,119 30,862Contribution from Operating Fund - section T loan principal 623,136 80,209

853,134 (1,057,475)

Balance, beginning of year 2,628,298 4,099,144

Balance, end of year $ 2,816,271 $ 2,628,298

The accompanying summary of significant accounting policies and notes are an integral part of these financial statements.

6


Board of Cemetery Trustees of Greater VictoriaOperating Fund

Statement of Cash Flows

For the year ended December 31 2018 2017

Cash provided by (used in)

Operating activitiesSurplus (deficiency) of revenues over expenses $ 676,385 $ (48,364)

Changes in non-cash working capital balances, netAccounts receivable (153,604) (110,158)Inventory (6,079) 4,143Prepaid expenses (1,368) (552)Accounts payable (61,096) (72,776)GST/PST receivable/payable (2,793) 45,548Employee deductions payable 1,965 315Deferred revenue (155,400) 155,400Due to/from reserve funds 95,437 361,867

(282,938) 383,787

Contributions from (to) other fundsEquipment replacement (77,643) (79,862)Future development (271,327) (259,180)Perpetual care 676,566 301,570Capital (748,309) (174,000)

(420,713) (211,472)

Net cash (decrease) increase from operating activities (27,266) 123,951

Bank indebtedness, beginning of year (12,091) (136,042)

Bank indebtedness, end of year $ (39,357) $ (12,091)

The accompanying summary of significant accounting policies and notes are an integral part of these financial statements.7


BOARD OF CEMETERY TRUSTEES OF GREATER VICTORIA

Notes to Financial Statements

Year Ended December 31, 2018

1. BOARD OF CEMETERY TRUSTEES OF GREATER VICTORIA

The Board of Cemetery Trustees of Greater Victoria (the "Board") was established pursuant to an agreementmade between the City of Victoria and the District of Saanich on March 16, 1922. The Board is incorporatedwith the B.C. Corporate Registry as a not-for-profit organization, and thus is treated as a not-for-profitorganization for income tax purposes.

The City of Victoria and the District of Saanich maintain their interest in the Board by appointing three (3)trustees from each stakeholder municipality.

The Board is registered with and licensed by Consumer Protection BC as a Place of Interment Operator and aCrematorium Operator.

2. PURPOSE OF THE BOARD

The Board ‘operating as’ Royal Oak Burial Park, Crematorium and Mausoleum ‘the Burial Park’ isresponsible in an oversight capacity for the development, operation and maintenance of the Burial Park.

The Board are also trustees for: a Pre-Need Trust Account, a Perpetual Care Reserve Fund, an Operating Fund,Equipment Replacement Reserve Fund, Future Development Reserve Fund and a Capital Fund.

The Board is required to maintain the Pre-Need Trust Account and the Perpetual Care Reserve Fund incompliance with legislation and regulation set out in the Cremation, Interment and Funeral Services Act of B.C.and the Business Practices and Consumer Protection Act of B.C.

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of presentation

The financial statements were prepared in accordance with Canadian accounting standards for not-for-profitorganizations ("ASNPO").

(continues)

8





3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Fund accounting

Board of Cemetery Trustees of Greater Victoria follows the restricted fund method of accounting forcontributions.

The Operating Fund accounts for the organization's general operations and administrative activities.

The Perpetual Care Reserve Fund provides for the perpetual care costs of the cemetery. Perpetual CareReserve Fund investment income is used, as permitted by legislation, at the discretion of the Board of Trustees,to fund these costs.

The Equipment Replacement Reserve Fund provides for the purchase of new tools and equipment. The Board'spolicy provides for an annual transfer from the Operating Fund to the Equipment Replacement Reserve Fund ofan amount equal to the amortization recorded on tools and equipment.

The Future Development Reserve Fund provides for the development of new sites within the cemetery. TheBoard's policy provides for an annual transfer from the Operating Fund to the Future Development ReserveFund of an amount based on the amortization recorded on buildings, sprinkler systems, signage, site extension,and site development costs. Amortization of site development costs is based on the number of grave sites soldduring the year. No transfer of funds is recorded for amortization of the mausoleum.

The Pre-need Fund accounts for payments of goods and services which have been sold in advance of therequirement to deliver them. These funds are externally restricted and the contractual arrangement requires thefunds to be held in trust until such time as the goods have been delivered or the services performed. Theinterest received on these trust funds is the property of the Board to allocate to operations as determinedreasonable. The applicable interest on pre-need contracts is recognized in the Pre-need Fund when it is earnedand is currently allocated by the Board upon the redemption of each individual contract. The Board ispermitted by the Business Practices and Consumer Protection Act to deduct from pre-need contracts a 20%'pre-need selling expense'. These funds have been internally restricted to be used to offset funding shortfallsthat occur through the provision of pre-paid goods and services.

The Capital Fund reports the assets, liabilities, revenues, and expenditures related to the Board's tangiblecapital assets.

Financial instruments policy

Financial instruments are recorded at fair value when acquired or issued. In subsequent periods, financial assetswith actively traded markets are reported at fair value, with any unrealized gains and losses reported in income.All other financial instruments are reported at amortized cost, and assessed for impairment at each reportingdate. Transaction costs on the acquisition, sale, or issue of financial instruments are expensed when incurred.

Cash

Cash and cash equivalents in the Operating and Reserve Funds include cash on hand as well as cash held infinancial institutions.

Short term investments

Short term investments include investments short term bonds, actively quoted fixed income and equityinvestments that are highly liquid and readily convertible to cash. All short term investments are presented atfair value as actively quoted on the market. Investment income is recorded as revenue in the period earned.

(continues)

9






Inventory

Inventory is measured at the lower of cost or net realizable value. Net realizable value is the estimated sellingprice in the ordinary course of business.

Tangible capital assets

Tangible capital assets are stated at cost or deemed cost less accumulated amortization. Tangible capital assetsare amortized over their estimated useful lives at the following rates and methods:

The Burial Park site and site development costs are amortized on the basis of grave sites sold during the year.Developed sections with a cost of $243,965 (2017 - $243,965) are fully amortized.

Automatic sprinkler systems are amortized on a straight-line basis over the estimated useful lives of the assets,being 20 years.

Except for the mausoleum building and licenses, other buildings, tools, equipment, and signage are amortizedusing the declining balance method at the rate of 5% for the administration buildings and 20% for all otherassets in this group.

The Niche Columbaria are being amortized on the basis of niches sold during the year. Niche Columbaria witha cost of $274,816 (2017 - $274,816) are fully amortized.

The mausoleum is being amortized on the basis of crypts and niches sold during the year.

The well and composting site are amortized using the declining balance method at the rate of 8%.

The maps are amortized using the declining balance method at the rate of 10%.

The charge for amortization is made to the Capital Fund.

The site development costs referred to as "general" relate to survey and inspection costs incurred whenacquiring property from Broadmead Farms.

Tangible capital assets acquired during the year but not placed into use are not amortized until they are placedinto use.

Employee future benefits

The Board and its employees contribute to the Municipal Pension Plan (the "Plan"). The Plan is governed by aboard of trustees, and administered by the Pension Corporation of BC who makes payment of pension benefitson behalf of employers and employees to whom the plan applies. The Plan is a multi-employer defined benefitplan.

Every three years an actuarial valuation is performed to assess the financial position of the plan and theadequacy of plan funding. The most recent actuarial valuation for which findings are available (March 31,2017 - completed every five years) has determined that the Plan has a surplus of $1.8960 billion.

The Plan's liability or surplus rests with the Plan and does not belong to the Board. As such, definedcontribution plan accounting is applied to this benefit plan and the costs of these employee future benefits isrecognized as an expense in the year that contributions are made.

(continues)

10






Revenue recognition

The Board follows the restricted fund method of accounting for contributions.

Sale of interment rights and at need goods and services are recognized as revenue of the operating fund if theamount to be received can be reasonably estimated and collections is reasonably assured. Donations and othercontributions are recognized as described below

Restricted contributions related to general operations are recognized as revenue of the Operating Fund in theyear in which the related expenses are incurred. All other restricted contributions are recognized as revenue ofthe appropriate restricted fund.

Unrestricted contributions are recognized as revenue of the General Fund in the year received or receivable ifthe amount to be received can be reasonably estimated and collection is reasonably assured.

Investment income earned on the resources of the restricted funds is recognized as revenue in the appropriaterestricted fund in the period in which the income is earned. Other investment income is recognized as revenueof the Operating Fund.

Revenue from the sale of pre need services are recognized upon redemption of the service.

Allocation of office overhead expenses

Office overhead expenses are allocated between the cemetery, the crematorium, and the mausoleum byconsidering the level of activity of each operation and pro-rating accordingly.

Measurement uncertainty

The preparation of financial statements in conformity with Canadian accounting standards for not-for-profitorganizations requires management to make estimates and assumptions that affect the reported amount of assetsand liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and thereported amounts of revenues and expenses during the period. Such estimates are periodically reviewed andany adjustments necessary are reported in earnings in the period in which they become known. Actual resultscould differ from these estimates. Significant estimates include the collectability of accounts receivable,valuation of inventory, valuation of short-term investments, accrual of accounts payable and the useful life oftangible capital assets.

4. FINANCIAL INSTRUMENTS

The Board is exposed to various risks through its financial instruments and has a comprehensive riskmanagement framework to monitor, evaluate and manage these risks. The Board's financial instruments consistof cash and cash equivalents, short-term investments, accounts receivable, accounts payable and accruedliabilities and long-term debt. The following analysis provides information about the Board's risk exposure andconcentration as of December 31, 2018.

(continues)

11





4. FINANCIAL INSTRUMENTS (continued)

Credit risk

Credit risk arises from the potential that a counter party will fail to perform its obligations. The Board isexposed to credit risk with respect to accounts receivable and investments. Accounts receivable arise from salesof services. Management believes that the carrying amount of accounts receivable approximates their fairvalue. Management believes that the institutions that hold the investments are financially sound and thereforeminimal credit risk exists with respect to these financial instruments. The credit risk regarding cash and termdeposits is considered to be negligible because they are held by a reputable financial institution with aninvestment grade external credit rating.

Liquidity risk

Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financialliabilities. The Board is exposed to this risk mainly in respect of its long-term debt, demand loan and accountspayable.

Market risk

Market Risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because ofchanges in market prices. The Board is exposed to market risk as the value of investments will fluctuate withprevailing market conditions. This risk is mitigated as investment holdings are part of a managed portfolio forwhich there are established guidelines for investment mix and risk tolerances.

Interest rate risk

Interest rate risk is the risk that the value of a financial instrument might be adversely affected by a change inthe interest rates. In seeking to minimize the risks from interest rate fluctuations, the Board manages exposurethrough its normal operating and financing activities. The Board holds bonds which are subject to interest raterate risk. Management mitigates this risk by holding bonds to maturity where possible. The Board is alsoexposed to interest rate risk upon the renewal of its long term debt. Management does not believe that theimpact of interest rate fluctuations will be significant. Interest revenue earned on its fixed income investments isknown at the time the investment is purchased. Interest earned at variable rates on cash deposits are not asignificant source of revenue.

5. INVESTMENTS

2018 2017

Perpetual Care Fund:Bonds (Cost $2,286,134) $ 2,489,573 $ 1,648,538Municipal Finance Authority Bonds (Cost $0) - 2,934,753Equity investments (Cost $6,596,732) 6,521,872 5,533,747

9,011,445 10,117,038Pre-Need Trust Fund:Individual G.I.C.s (Cost $2,819,796) 2,941,356 2,819,796

$ 11,952,801 $ 12,936,834

Investments are reported at fair value based on quoted prices at year end. Interest rates vary from 3.05% to8.0%. These investments mature at various dates from 2019 to 2030. The Board's portfolio of pre-need trustfunds and the perpetual care fixed income and equity investments are held in trust, and are held in brokerageaccounts maintained at major Canadian financial institutions. At December 31, 2018 the Board also held cashresources of $1,200,681 (2017 - $364,137) pending future investment.

12





6. CONTRIBUTIONS FROM PERPETUAL CARE FUND EARNINGS

The interest earned on the Perpetual Care Reserve Fund investments was $335,069 (2017 - $299,352) in thecurrent year. Realized capital gains earned on the sale of Perpetual Care Reserve Fund investments was$326,970 (2017 - $2,604) in the current year. The Board has the authority under the Cremation, Interment andFuneral Services Act, to retain all Care Fund earnings for application towards annual maintenance costs.During the current year, the Board retained $676,566 (2017 - $301,570) for current maintenance costs.

7. TANGIBLE CAPITAL ASSETS 2018 2017

Cost Accumulated Net book Net bookamortization value value

Cemetery SiteOriginal site, at nominal value $ 1 $ - $ 1 $ 1Extensions 462,130 46,583 415,547 415,547Master plan - - - 99,584

462,131 46,583 415,548 515,132

InfrastructureInfrastructure 367,507 331,364 36,143 41,772

367,507 331,364 36,143 41,772

Cemetery LandCasket Interment 4,228,263 2,072,071 2,156,192 2,454,252Cremation Interment 477,425 209,680 267,745 291,622Little Spirits Garden 496,484 - 496,484 496,484

5,202,172 2,281,751 2,920,421 3,242,358

BuildingsMausoleum 1,716,317 827,189 889,128 947,130All other buildings 716,319 443,292 273,027 286,346

2,432,636 1,270,481 1,162,155 1,233,476

Tools and EquipmentTools and equipment 1,845,324 1,534,755 310,569 319,446

- 1,534,755 310,569 319,446

$ 10,309,770 $ 5,464,934 $ 4,844,836 $ 5,352,184

During fiscal 2018, project costs of $17,223 were incurred to develop Woodlands Phase III, and $4,072 forWoodlands Phase IV. These balances are included in Casket Interment. Woodlands Phase IV was underdevelopment and not being amortized as of December 31, 2018.

The following assets included above are held under capital lease Note 11:

2018 2017Cost Accumulated Net book Net book

amortization value value

Equipment - mower $ 42,265 $ 18,411 $ 23,854 $ 33,812

13





8. BANK INDEBTEDNESS

The bank indebtedness fluctuates under an overdraft agreement to a maximum of $300,000 which bears interestat the Bank's prime lending rate plus 1% per annum and is secured by a general security agreement.

9. DEMAND LOAN

There is an outstanding demand loan with the Bank of Montreal from the development of Section T Phase III.The loan bears interest at the Bank's prime lending rate plus 0.5%, interest is calculated monthly. Currently,the loan has fixed payments of $12,741 including both principal and interest. The balance of the loan cannotexceed a total of $1,900,000. As at December 31, 2018, the loan has a balance of $1,196,653 (2017:$1,819,791).

10. LONG TERM DEBT 2018 2017

Loan from Municipality of Saanich bearing interest at 2.25% perannum, repayable in semi-annual payments of $47,179 on June 3rdand $16,875 on December 3rd. The loan matures on June 3, 2028.The loan is subject to a rate review every 5 to 10 years with themost recent review done in 2018. $ 821,814 $ 884,041

Less - Deposit:Acquisition of the long-term debt required the payment of a depositto the Municipal Finance Authority. This deposit is repayable,without interest, to the Board upon payment in full of the principalof the debt. (15,000) (15,000)

806,814 869,041

Amounts payable within one year (31,429) (31,429)

$ 775,385 $ 837,612

Principal repayments are approximately:

2019 $ 31,4292020 68,6052021 72,0352022 75,6372023 79,419Thereafter 479,689

$ 806,814

Debt principal is reported net of repayments and actuarial gains or losses. The gross debt issued at December31, 2018 is $1,500,000. (2017 - $1,500,000). The original loan was secured by Saanich through the MunicipalFinance Authority (MFA).

(continues)

14





10. LONG TERM DEBT (continued)

The loan agreement with Saanich provides that the Board will be bound by the terms of the MFA borrowing.The MFA debt is issued on a sinking fund basis, where the MFA invests the Board's sinking fund principalpayments so that the payments, plus investment income, will equal the original outstanding debt amount at theend of the repayment period. Actuarial adjustments on debt represent the repayment and/or forgiveness of debtby the MFA using surplus investment income generated by the principal repayments. If at any time thescheduled payments provided for in the agreement are not sufficient to meet the obligations in respect of suchborrowing, the resulting deficiency becomes a liability of the Board.

11. OBLIGATIONS UNDER CAPITAL LEASE 2018 2017

Golf Lease Inc. lease bearing interest at 6.8% per annum, repayablein monthly blended payments of $1,049. The lease matures on May1, 2021 and is secured by mowing equipment which has a carryingvalue of $33,812. $ 26,033 $ 35,991

Acquisition of the long-term debt required the payment of a depositto Golf Lease Inc.. This deposit is repayable, without interest, to theBoard upon payment in full of the principal of the debt. (937) (937)

25,096 35,054

Amounts payable within one year (10,657) (9,958)

$ 14,439 $ 25,096

Future minimum capital lease payments are approximately:

2019 $ 10,6572020 11,4052021 3,034

Total minimum lease payments $ 25,096

12. INTERFUND LOANS

Loans between the operating and reserve funds are non-interest bearing and have no set repayment terms.

13. INTERFUND TRANSFERS 2018 2017

Equipment Replacement Reserve Fund

Equipment contribution from operating $ 77,643 $ 79,862 Operating Fund

Amortization on tools/equipment (77,643) (79,862)

$ - $ -

(continues)

15





13. INTERFUND TRANSFERS (continued)A contribution to transfer amortization for tools and equipment from the Operating Fund to the EquipmentReplacement Reserve Fund.

Future Development Reserve FundLot sale contributions from operating $ 271,327 $ 259,180

Operating FundAmortization of land and building (271,327) (259,180)

$ - $ -

A contribution to transfer amortization for lot sales from the Operating Fund to the Future DevelopmentReserve Fund.

Operating FundCare fund contribution to operating $ 676,566 $ 301,570

Perpetual Care Reserve FundInterest income and realized gains in care reserve (676,566) (301,570)

$ - $ -

A contribution to transfer interest and other realized investment income from the Perpetual Care Reserve Fundto the Operating Fund to contribute towards general maintenance, upkeep and operations.

Capital FundCapital additions made to burial park $ 26,825 $ (626,312)Demand loan moved to capital - 1,900,000

Future Development Reserve FundDevelopment contributions to capital (26,825) (1,273,688)

$ - $ -

A contribution to transfer development additions from the Future Development Reserve Fund to the CapitalFund.

Operating FundContributions to capital $ (748,309) $ (174,000)

Capital FundMausoleum loan principal payments 31,429 31,500Mausoleum loan interest 32,625 31,429Section T Phase III loan principal payments 623,136 80,209Section T Phase III loan interest 61,119 30,862

$ - $ -

A contribution to transfer total interest and principal payments made to service debt relating to the mausoleumfrom the Operating Fund to the Capital Fund.

(continues)

16





13. INTERFUND TRANSFERS (continued)

Equipment Replacement Reserve Fund

Equipment fund contribution to capital $ (78,000) $ (42,213) Capital Fund

Tools and equipment additions 74,682 35,003Office equipment additions 3,318 7,210Tools and equipment disposal - -

$ - $ -

A contribution to transfer costs associated with the purchase of tangible capital assets from the EquipmentReplacement Reserve Fund to the Capital Fund.

14. STATEMENT OF CASH FLOWS

A statement of cash flows has not been included for the Capital or Reserve Funds as management hasdetermined that those cash flows are readily apparent from the statement of operations and Note 13.

17


Greater Victoria’s Not-For-Profit Burial Park, Crematorium & Mausoleum

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