Auditors' Report

To the Board of Directors of The Greater Saint John Community Foundation

We have audited the statement of financial position of The Greater Saint John Community Foundation as at October 31, 2001 and the statement of revenue, expenditures and changes in fund balances for the year then ended.  These financial statements are the responsibility of the Foundation's management. Our responsibility is to express an opinion on these financial statements based on our audit.

Except as explained in the following paragraph, we conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we plan and perform an audit to obtain reasonable assurance whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.

In common with many charitable organizations, the Foundation derives revenue from donations and bequests, the completeness of which is not susceptible to satisfactory audit verification. Accordingly, our verification of these revenues was limited to the amounts recorded in the records of the Foundation and we were not able to determine whether any adjustments might be necessary to revenues, excess revenue for the year, assets and fund balances.

In our opinion, except for the effect of adjustments, if any, which we might have determined to be necessary had we able to satisfy ourselves concerning the completeness of donations and bequests referred to in the preceding paragraph, these financial statements present fairly, in all material respects, the financial position of the Foundation as at October 31, 2001 and the results of its operations for the year then ended in accordance with Canadian generally accepted accounting principles.

PriceWaterhouseCoopers

Chartered Accountants

Balance Sheet
As of October 31, 2001

Statement of Revenue, Expenditures & Changes in Fund Balances
As of October 31, 2001

General Fund

Restricted Fund

Combined

Notes to Financial Statements

1. Nature of Organization
   
   The Greater Saint John Community Foundation was established by an Act of the New Brunswick legislature to serve as a trustee of the investments, which are held for charitable, educational and cultural purposes.  The Greater Saint John Community Foundation is a registered charity under the Income Tax Act.
   
2. Accounting Policies

          Fund Accounting

To observe limitations and restrictions placed on the use of resources, the accounts of the Greater Saint John Community Foundation are maintained in accordance with "fund accounting" principles. Under this procedure, the revenue and resources and their related expenditures for specific uses are summarized in a separate group of accounts.  Accordingly, the financial statements are presented by fund category.

General Fund

The general fund reports amounts, including donations, and investment income, to be used to support charitable grants and administration.  The donor has placed no restrictions on the use of the funds. The distribution of grants is determined by the Board of Directors.

Restricted Fund

The restricted fund is comprised of the following funds, which are restricted as to use as follows:

(a)  The Old Ladies Home of Saint John Fund

On January 29, 1979 all the assets of the Old Ladies Home of Saint John, net of specific bequests and payables, were transferred to The Greater Saint John Community Foundation.  The balance of the assets were to be invested and the net income therefrom used in perpetuity to provide for aged and needy men and women.

(b) Dr. Malcolm M. Somerville Bursary Fund

On December 23, 1999 members of the Somerville family donated $20,000 to be used to fund bursaries to be awarded to students attending the University of new Brunswick Saint John's Faculty of Business.

(c) The Marie Murphy Walsh Clock Fund

In 2001, $25,000 was donated by Gregory Walsh to pay for repairs and maintenance to the City Hall Clock.

Investments

Investments are pooled investment funds and are recorded at market value. Changes in market values are recorded as unrealized gains and losses.

   3.    Change in Accounting Policy

During the year, the Foundation changed its accounting policy for recording investments.  Pooled investments previously recorded at cost are now recorded at market value. The adoption of this accounting policy has been applied retroactively with restatement of prior period financial statements.  Investments and fund balances as at October 31, 1999 have been increased by $709,713 and by $651,777 as at October 31,2000.

   4.    Grants

The Foundation was awarded grants during the year from the Community Advancement New Brunswick program, a program jointly sponsored by Community Foundations of Canada and the T.R. Meighen Foundation.  Flow through grants of $20,000 (2000-$20,000), and operational grants of $25,000 (2000-$50,000) have been shown as income in these financial statements. In addition, the Foundation received $49,524 as endowment donation matches throughout 2001.

   5.    Commitments

The Greater Saint John Community Foundation has made the following commitments:

- to pay annual scholarships totalling $9,000; and

- to donate $60,000 to Family Services of Saint John    over three years, of which $40,000 has been paid to date.

Schedule of Grants Awarded

For the year ended October 31, 2001 (unaudited)