National Capital FreeNet / Libertel de la Capitale nationale

Treasurer's Report

For the year ended
December 31, 2016

For the year ending December 31, 2016 National Capital FreeNet is reporting a surplus of $52,605 along with an existing unrestricted cash reserve fund. In order to secure a stable business we need to ensure we have sufficient cash reserves to sustain the business in the event of unforeseeable additional costs. Our business, being dependent on tariffs set by the Canadian Radio and Telecommunications Commission, and on implementation by Bell Canada, is particularly vulnerable to unforeseen costs.

One of the new challenges that may be foreseen for our reserve fund is the Canadian Radio-television and Telecommunications Commission's push towards a disaggregated wholesale network from the current aggregated model. The CRTC's disaggregated timeline and regulatory fee structure is currently very much in flux. Future modeling will be required as our regulated costs would change, some costs will be deregulated and the wholesale underlying network structure could require significant revision.

I believe that our cash reserves are at a level which is prudent for a not for profit of the size at which NCF operates, taking into consideration both the need for reserves and providing best value for members.

Peter Chapman
National Capital FreeNet

15 April 2017