PATRICK WILLIAMS

Chief

GABRIEL WILLIAMS

Councillor

XAVIER WILLIAMS

Councillor

SKATIN NATIONS FINANCIAL SUMMARY
Fiscal Year 2024-2025 (Ending March 31, 2025)

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DISCLAIMER: This financial summary was generated using artificial intelligence
based on publicly available audited financial statements and has been reviewed
by a human analyst. While care has been taken to ensure accuracy, users should
verify critical information against the original audited financial statements
prepared by Reid Hurst Nagy Inc.

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EXECUTIVE SUMMARY

Skatin Nations generated total revenue of $7,513,408, a decrease of 3.9% from
the prior year. The Nation experienced an annual surplus of $183,798 after
recognizing deferred revenue, compared to a surplus of $1,865,003 in the
previous year. Accumulated surplus increased to $13,938,978, up 1.3% from 2024.
Net debt reached $4,173,214, improving slightly from $4,247,984 in the prior
year. Cash holdings decreased 54.8% to $71,682 while restricted cash decreased
to $181,325. Total long-term debt increased to $6,330,774 including loans
payable of $6,215,795 and CMHC mortgages of $114,979. Major revenue sources
included Indigenous Services Canada funding of $3,234,089, Province of BC
funding of $1,627,980, and logging income of $658,517. The Nation invested
$1,152,567 in tangible capital assets during the year, primarily in buildings
under construction.

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FINANCIAL POSITION

Total Assets: $21,150,470
- Financial Assets: $3,038,061 (includes Cash: $71,682)
- Tangible Capital Assets: $18,012,422
- Prepaid Expenses: $99,770

Total Liabilities: $7,211,275
- Loans Payable: $6,215,795
- CMHC Mortgages: $114,979
- Bank Indebtedness: $405,760
- Accounts Payable: $443,332
- Replacement Reserve Fund: $31,409

Net Debt: $4,173,214 (improved 1.8% from prior year)
Accumulated Surplus: $13,938,978 (up 1.3% from prior year)

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REVENUE & OPERATIONS

Total Revenue: $7,513,408 (down 3.9% from prior year)

Major Revenue Sources:
- Indigenous Services Canada: $3,234,089 (43.0%)
- Province of BC: $1,627,980 (21.7%)
- Logging Income, Net: $658,517 (8.8%)
- First Nations Education Steering Committee: $502,334 (6.7%)
- New Relationship Trust: $260,000 (3.5%)
- Southern Stl'atl'imx Health Society: $234,324 (3.1%)
- Interest: $200,993 (2.7%)
- Four Pillars Society: $200,000 (2.7%)
- Rental: $181,620 (2.4%)
- Union of BC Municipalities: $142,550 (1.9%)
- First Nations Health Authority: $64,435 (0.9%)
- Other: $206,566 (2.7%)

Total Expenditures: $7,797,618 (up 21.9% from prior year)

Major Program Expenditures:
- Education and Training: $2,977,442 (38.2%)
- Local Government Services: $1,798,131 (23.1%)
- Social Services: $946,063 (12.1%)
- Capital Fund: $707,225 (9.1%)
- Municipal Services O&M Programs: $641,647 (8.2%)
- Capital Projects: $399,952 (5.1%)
- Economic Development: $211,175 (2.7%)
- Social Housing Fund: $115,983 (1.5%)

Annual Deficit Before Deferred Revenue: ($284,210)
Deferred Revenue Recognized: $468,008
Annual Surplus: $183,798 (down 90.1% from prior year)
Operating Margin: -3.8%

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KEY FINANCIAL METRICS

- Financial Assets to Liabilities Ratio: 0.42:1
- Debt-to-Assets Ratio: 34.1%
- Self-Generated Revenue: 57.0% of total
- Cash Reserves: 0.1 months of operating expenses
- Total Long-term Debt: $6,330,774 (increased 1.7%)
- Loans Receivable: $2,000,000 at 8-12% interest

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CHIEF & COUNCIL REMUNERATION

Name Position Remuneration Expenses Total
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Patrick Williams Chief (8 months) $33,082 $728 $33,810
Gabriel Williams Councillor $63,034 $10,228 $73,262
Xavier Williams Councillor $63,034 $3,718 $66,752

Total Governance Compensation: $173,824 (2.3% of total revenue)

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AUDIT QUALIFICATION

The audit opinion was qualified due to Skatin Nations' interest in Tsetspa7
Forestry Limited Partnership (24.4% interest) not being recorded in the
consolidated financial statements. Auditors were unable to obtain sufficient
appropriate audit evidence about the carrying amount of this investment.

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MAJOR CAPITAL INVESTMENTS

During fiscal 2025, Skatin Nations invested $1,152,567 in tangible capital
assets:
- Buildings under construction: $780,841
- Buildings: $181,000
- Furniture and fixtures: $98,382
- Automotive equipment: $67,394
- Equipment: $24,950

Total tangible capital assets increased to $18,012,422 (net book value).

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NOTABLE FINANCIAL ITEMS

- Bank indebtedness increased to $405,760 from $200,660
- Restricted cash decreased to $181,325 from $388,101
- Accounts receivable decreased to $784,443 from $924,349
- Deferred revenue was fully recognized ($468,008)
- Related party transactions totalled $644,200 (consulting, accounting, moving)
- Allowance for doubtful accounts: $552,012

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Source: Audited consolidated financial statements with qualified opinion,
Reid Hurst Nagy Inc., July 24, 2025