HOUSES OPENING TODAY TORONTO INC. FINANCIAL STATEMENTS FOR THE YEAR ENDED

MARCH 31, 2014

HOUSES OPENING TODAY TORONTO INC. Financial Statements March 31, 2014

Index

Page

Independent Auditor's Report

1

Statement of Financial Position

2

Statement of Operating Fund

3

Statement of Replacement Reserve Fund

3

Statement of Operations

4

Schedules to the financial statements Schedule of Shelter

5

Schedule of Darrell

6

Schedule of Care and Other

7

Statement of Cash Flows Notes to the Financial Statements

8

9 - 16

AKLER, BROWNING, FRIMET & LANDZBERG LLP CHARTERED ACCOUNTANTS

INDEPENDENT AUDITOR'S REPORT To the Board of Directors of Houses Opening Today Toronto Inc. We have audited the accompanying financial statements of Houses Opening Today Toronto Inc., which comprise the statement of financial position as at March 31, 2014, and the statements of operating fund , replacement reserve fund , operations and cash flows for the year then ended , and a summary of significant accounting policies and other explanatory information . The financial statements have been prepared by management based on the financial reporting provisions of the Ontario Housing Services Act as administered by the City of Toronto. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with financial reporting provisions of the Ontario Housing Services Act as administered by the City of Toronto , 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. Auditor's Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Canadian generally accepted aud iting standards. Those standards require that we comply with 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 aud it 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 organization'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 organization'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 , the financial statements present fairly, in all material respects , the financial pos ition of Houses Opening Today Toronto Inc. as at March 31 , 2014, and the results of its operations and its cash flows for the year then ended in accordance with financial reporting provisions of the Ontario Housing Services Act as administered by the City of Toronto . Basis of Accounting and Restriction on Use Without modifying our opinion , we draw attention to Note 2 to the financial statements, which describes the basis of accounting . The financial statements are prepared to assist the Di rectors of Houses Opening Today Toronto Inc. to meet the requirements of the Ontario Housing Services Act as administered by the City of Toronto . As a result, the financial statements may not be suitable for another purpose. Our report is intended solely for the Directors of Houses Opening Today Toronto Inc. and should not be used by parties other than the Directors of Houses Opening Today Toronto Inc ..

_A~fer, Browning, ~imet

& ofandzterg ofofP Chartered Accountants Licensed Public Accountants Toronto , Canada

August 20 , 2014

5255

Yonge Street, Suite 700, Toronto, Ontari o, M 2N 6P4 Tel: (416) 221 -7000 Fax: (4 16) 22 1-7005 Website: www.abfl .ca

HOUSES OPENING TODAY TORONTO INC. Statement of Financial Position March 31, 2014

2014

2013

Assets Current Cash Accounts receivable (note 3) HST rebate and sundry receivables Subsidy receivable Receivable from City of Toronto (note 4) Prepaids

$

Total current assets

$

1, 177 8,221 21 ,677 125,075 8,586 43 ,503

247 ,294

208 ,239

6, 162,091 294,772

6,408,591 298 ,572

$ 6,704, 157

$ 6,915,402

$

$

Property and equipment (note 5) Reserve funds (note 6) Tota I Assets

274 9,029 52 ,033 148,205 27, 998 9,755

Liabilities Current Bank operating loan (note 7) Accounts payable and accrued liabilities Capital advance Marigold property Accrued mortgage interest Rental deposits Deferred revenue

12,262 69 ,856 24,779 21 ,453 1,875 75,463

72 ,704 24,779 24 ,678 2,987 75,463

Total current liabilities Loan payable - City of Toronto (note 8) Loan payable - Province of Ontario (note 9) Deferred capital contributions (note 10) Mortgages payable (note 11)

205 ,688

200,611

779,940 127,520 333,756 4,869,411

797,272 133,896 343 ,292 5,082 ,666

Total Liabilities

6,316,315

6,557,737

Operating Fund Replacement Reserve Fund

93,070 294,772

59 ,093 298,572

Total Fund Balances

387,842

357,665

$ 6,704, 157

$ 6,915 ,402

Fund Balances

Total Liabilities and Fund Balances

Approved on behalf Qf th~ Board :

~l~

Member