FALL 2007 ANNUAL GENERAL MEETING AGENDA

WATERLOO CO-oPERATIVE RESIDENCE

INCORPORATED
Sunday, November 25 th, 2007, 7:00 PM, Weavers' Arms
WATERLOO CO-OPERATIVE
1. ADOPTION OF AGENDA
RESIDENCE INC. Kris Vervoort

2. NEW BUSINESS
a) Financial statement

3. READING AND APPROVAL OF MINUTES

Leah Evans

4. ELECTION OF DIRECTORS
a) Close of nominations
Sunday, November 25th, 2007 b) Speeches by candidates
c) Voting by secret ballot

7pm, Weavers' Arms 5. REPORTS OF OFFICERS AND COUNCILS

a) President
b) General Manager
c) Interdivisional Council
Come out to get the latest news on WeRl! d) Interdivisional Social Council

6. NEW BUSINESS: Other

Vote for your Board of Directors! Kris Vervoort

7. OPEN FORUM
Enjoy refreshments!
IMPORTANT NOTES
Win prizes!
Several PRIZES will be drawn through out the meeting. A main prize of a
Nintendo Wii will be drawn at the end of the meeting. You must be in
attendance to win,
FREE FOOD will be provided to all attendees.
Members + Involvement = WCRI Members INTERESTED IN RUNNING FOR THE POSITION OF DIRECTOR
should contact the President (president@wcri.coop). There will be four one
year positions available. More information can be obtained from the general
See www.wcri.coop/generalmeeting for manager in the office or from any director.
AGM reports and more info. Members must present VALID PHOTO IDENTIFICATION (drivers'license,
student card, passport, etc.) in order to vote in the election of directors.
New business NOT MENTIONED IN THIS AGENDA must be submitted to the
president by November 19th • To protect those members who do not attend the
meeting, only unimportant business will be added to the agenda in this
manner.
 Waterloo Co-operative Residence
Incorporated
Financial Statements
For the year ended April 30, 2007

Contents

Auditors'Report 2

Financial.Statements

Statement of Rnancial Position 3

Statement of Operations and Changes in Fund Balances 4

Statement of Cash Flows 5

Summary of Significant Accounting Policies 6

Notes to Financial Statements 8

Auditors' Comments on Supplementary

Financial Information 13
Supplementary Financial Information

Schedule of Division Expenses 14

Scheduie of Administrative Expenses 15
 Waterloo Co-operative Residence Incorporated
Notes to Financial Statements
April 30, 2007

6. Long-term Debt (continued)

Principal repayments are as follows:

Year Amount

2008 $ 409,701
2009 425,772
2010 450,664
2011 477,004
2012 504,125
Thereafter 5,716,404

$ 7,983,670

7. Contingency

In the ordinary course of business, a lawsuit has been filed against the Co-operative. In the
opinion of management and legal counsel, the outcome of the lawsuit, now pending, will
involve amounts that would not have a material adverse effect on the position of theC~
operative. Should any loss result from the resolution of these claims, such loss would be
charged against income in the period in which the claim is settled.

10
 Waterloo Co-operative Residence Incorporated
Notes to Financial Statements
April 30, 2007

8. Schedule of Other Funds

Redevelopment Emergency Capital

Reserve Reserve Replacement 2007 2006
Fund Fund Fund Total Total

Invesbnents $ 153,588 $ 423,263 $ 37,500 $ 614,351 $ 441,127

Fund balance,
beginning of year $ 110,281 $ 330,846 $ - $ 441,127 $ 359,042

Interest income 5,807 17,417 23,224 7,085

Interfund
transfer (Note 9) 37,500 75,000 37,500 150,000 75,000

Fund balance,
end of year $ 153,588 $ 423,263 $ 37,500 $ 614,351 $ 441,127

11
 Waterloo Co-operative Residence Incorporated
Notes to Financial Statements
April 30, 2007

9. Interfund Transfers

Capital Fund

Purchase of capital assets with unrestricted funds $ 185,546

Repayment of long-term debt with unrestricted funds 3,058,359
Interest on long-term debt paid with unrestricted funds 533,053
Net change in accounts payable . (12,538)
Proceeds of long-term debt (2,850,000)

$ 914,420

Redevelopment Reserve Fund

Transfer of temporary investments from General Fund $ 37,500
Emergency Reserve Fund
Transfer of temporary investments from General Fund 75,000
Capital Replacement Reserve Fund
Transfer of temporary investments from General Fund 37,500

$ 150,000

10. Statutory Note - Non-Member Revenue

The revenue for business transacted with non-members did not amount to 20% of the total
revenue earned as defined in the Co-operative Corporations Act.

11. Commitments

The Co-operative leases equipment under operating leases expiring in October 2011 and
October 2013. Future minimum lease payments are as follows:

Year Amount

2008 $ 19,509
2009 20,949
2010 20,949
2011 20,949
2012 13,354
Thereafter 4,318

$ 100,028

12
 BDO Dunwoody LLP 305 King Street West· Suite 401

IBDO Chartered Accountants

and Advisors
Kitchener Ontario canada' N2G 189
Telephone, (519) 576·5220
Fa" (519) 576-5471
www.bdo.ca

Auditors' Comments on Supplementary Financial Information

To the Members of
Waterloo co-operative Residence Incorporated

The audited financial statements of the Co-operative as at April 30, 2007 and our report thereon
dated July 13, 2007 are presented in the preceding section of this annual report. The financial
information presented hereinafter was derived from the accounting records tested by us as part of
the auditing procedures followed in our examination of the financial statements and, in our opinion,
it is fairly presented in all materiai respects in relation to the financial statements taken as a whole.

Chartered Accountants, Licensed Public Accountants

Kitchener, Ontario
July 13, 2007

13

BDO Dunwoody LLP is a Limited Liability Partnersflip registered in Ontario

 Waterloo Co-operative Residence Incorporated
Schedule of Division Expenses
For the year ended April 30 2007 2006

2007 Budget General Capital

(Unaudited) Fund Fund Total Total
Variable

Kitchen
Food $ 162,000 $ . $ - $ - $ 198,682
Supplies 11,335 9,693
Wages and benefits 68,218 13,832 13,832 135,511

241,553 13,832 13,832 343,886

Operating
Cleaning, laundry, supplies
and waste disposal 117,982 84,969 84,969 60,398
Wages and benefits 53,110 48,494 48,494 53,283

171,092 133,463 133,463 113,681

Maintenance
General 59,250 39,561 39,561 41,225
Wages and benefits 140,765 143,749 143,749 161,745

200,015 183,310 183,310 202,970

Utilities 473,600 485,071 485,071 470,361

$ 1,086,260 $ 815,676 $ - $ 815,676 $ 1,130,898

Fixed

Amortization-buildings $ 345,000 $ - $ 503;916 $ 503,916 $ .348,276

Amortization-building
improvements 228,000 226,496 226,496 223,015
Amortization-equipment,
furniture and appliances 174,000 127,851 127,851 171,412
Municipal taxes 252,000 195,027 195,027 274,439

$ 999,000 $ 195,027 $ 858,263 $ 1,053,290 $ 1,017,142

14
 Waterloo Co-operative Residence Incorporated
Schedule of Administrative Expenses
For the year ended April 30 2007 2006

2007 Budget General Capital

(Unaudited) Fund Fund Total Total
Variable

Bad debt $ 14,000 $ 2,550 $ . $ 2,550 $ 4,474

Bank charges and interest 30,000 36,543 36,543 29,549
Conferences 6,000 5,899 5,899 4,677
Employee benefits 58,657 50,998 50,998 55,535
Equipment leasing 30,380 26,655 26,655 28,993
Hiring expense 3,000 504 504 5,915
Office expenses 23,090 15,572 15,572 15,848
Professional services 60,660 59,107 . 59,107 64,941
Staff training .4,000 2,083 2,083 822
Telephone 13,230 12,576 12,576 16,397
Wages 248,217 227,175 227,175 281,396

$ 491,234 $ 439,662 $ -$ 439,662 $ 508,547

Fixed

Insurance $ 31,200 $ 28,679 $ - $ 28,679 $ 31,578

Interest on long-term debt 466,200 533,053 533,053 325,235

$ 497,400 $ 28,679 $ 533,053 $ 561,732 $ 356,B13

Co-operative Development

Board retreat $ 7,500 $ 4,767 $ - $ 4,767 $ 5,992

Double room referral 9,000 5,550 5,550 3,900
DRIP purchases 7,500 5,795 5,795 3,544
Education and orientation 17,670 8,649 8,649 10,546
External Co-op Affairs 1,200 898 898 552
Fees, dues and
memberships 11,400 7,149 7,149 9,143
Marketing 38,200 17,489 17,489 19,956
Meetings 14,025 10,135 10,135 11,843
Social and event expense 10,500 7,967 7,967 7,971
Toadlane 4,800 4,022 4,022 2,152

$ 121,795 $ 72,421 $ - $ 72,421 $ 75,599

15
 BOO Dunwoody UP 305 King Street West Suite 401

IBDO Chartered Accountants

and Advisors
Kitchener Ontario Canada N2G 189
Telephone, {5191 576-5220
Fax, (519)576-5471
WlVW.bdo.al

Auditors' Report

To the Members of
Waterloo Co-operative Residence Incorporated

We have audited the statement of financial position of Waterloo Co-operative Residence

Incorporated- as at April 30, 2007 and the statements of operations and changes in fund balances
and cash flows for the year then ended. These financial statements are the responsibility of the co-
operative's management 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 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 our opinion, these financial statements present fairly, in all material respects, the financial
position of the co-operative as at April 30, 2007 and the results of its operations and its cash flows
for the year then ended in accordance with Canadian generally accepted accounting principles. As
required by the Co-operative Corporations Act, we report tha~ in our opinion, these principles have
been applied on a basis consistent with that of the preceding year.

Chartered Accountants, Licensed Public Accountants

Kitchener, Ontario
July 13, 2007

BOO Dunwoody LLP is a Limited Liability Partner'ihip registered in Ontario

 Waterloo Co-operative Residence Incorporated
Statement of Financial Position
April 30 2007 2006

General Capital Other

Fund Fund Funds Total Total
Assets (Note 8)
Current
Cash (Note 1) $ 1,174,410 $ $ $ 1,174,410 $ 567,558
Temporary investments (Note 2) 394,924 614,351 1,009,275 483,806
Accounts receivable (Note 3) 40,692 40,692 81,253
Prepaid expenses 34,104 34,104 23,986
1,644,130 614,351 2,258,481 1,156,603

Capital (Note 4) 10,519,930 10,519,930 11,192,646

Investments 7,250 7,250 7,250

$ 1,651,380 $ 10,519,930 $ 614,351 $ 12,785,661 $ 12,356.499

Liabilities and Fund Balances

Current
Accounts payable and accrued liabilities (Note 5) $ 73,874 $ 44,702 $ $ 118,576 $ 72,806
Deposits and unearned fees 863,039 863,039 705,065
Current portion of long-term debt (Note 6) 409,701 409,701 3,055,743
936,913 454,403 1,391,316 3,833,614
Long-term debt (Note 6) 7,573,969 7,573,969 5,136,286

936,913 8,028,372 8,965,285 8,969,900

Contingency (Note 7)
Fund balances
invested in capital assets 2,491,558 2,491,558 2,968,454
Internally restricted 614,351 614,351 441,127
Unrestricted 714,467 714,467 (22,982)

714,467 2,491,558 614,351 3,820,376 3,386,599

$ 1,651,380 $ 10,519,930 $ 614,351 $ 12,785,661 $ 12,356.499

Approved by the Board: Director Director

The accompanying summary of significant accounting policies and notes are an Integral part of these flnanclal statements. 3
 Waterloo Co-operative Residence Incorporated
Statement of Operations and Changes in Fund Balances
For the year ended April 30 2007 2006

2007 Budget General Capital other Funds

(Unaudited) Fund Fund (Note 8) Total Total
Revenue
Accommodation, meals $ 3,321,783 $ 3,201,513 $ $ $ 3,201,513 $ 3,200,564
Utilities
Parking, laundry and
miscellaneous 55,000 96,966 96,966 83,160
Other Income 30,000 54,855 23,224 78,079 ,107,014

Total revenue' 3,406,783 3,353,334 23,224 3,376,558 3,390,738

Division expenses
Variable 1,086,260 815,676 815;676 1,130,898
Fixed 999,000 195,027 858,263 1,053,290 1,017,142
2,085,260 1,010,703 858,263 1,868,966 2,148,040
Administrative expenses
Variable 491,234 439,662 439,662 508,547
Fixed 49,7,400 28,679 533,053 561,732 356,813
Co-operative development 121,795 72,421 72,421 75,599
1,110,429 540,762 533,053 1,073,815 940,959

Total expenses 3,195,689 1,551,465 1,391,316 2,942,781 3,088,999

Operating surplus (deficit) 211,094 1,801,869 (1,391,316) 23,224 433,777 301,739

other Item
Gain on disposal of capital assets 6,926

Excess of revenue over

expenses for the year $ 211,094 1,801,869 (1,391,316) 23,224 433,777 308,665

Fund balance, beginnin9 of year (22,982) 2,968,454 441,127 3,386,599 3,077,934

Interfund transfers (Note 9) (1,064,420) 914,420 150,000

Fund balance, end of year $ 714,467 $ 2,491,558 $ 614,351 $ 3,820,376 $ 3,386,599

The accompanying summary of significant accounting policies and notes are an integral part of these financial statements.
4
 Waterloo Co-operative Residence Incorporated
Statement of Cash Flows
For the year ended April 30 2007 2006

Cash flows from operating activities

Excess of revenue over expenses for the year $ . 433,777 $ 308,665
Item not involving cash
Amortization 858,263 742,703
Gain on disposal of capital assets (6,926)
1,292,040 1,044,442

Changes in non-eash working capital balances

Accounts receivable 40,561 (62,612)
Prepaid expenses (10,118) 4,465
Accounts payable and accrued liabilities 45,770 (253,744)
Deposits and unearned fees 157,974 7,734

1,526,227 740,285

Cash flows from investing activities

Purchase of capital assets (185,547) (2,727,698)
Proceeds on sale of capital assets 9,100
Purchase of temporary investments (525,469) (297,153)
Proceeds on sale of temporary investments 581,139

(711,016) (2,434,612)

Cash flows from financing activities

Repayment of long-term debt (3,058,359) (666,742)
Proceeds of long-term debt 2,850,000 2,850,000
Member loans donated to organization (45,267)

(208,359) 2,137,991

Increase in cash during the year 606,852 443,664

Cash, beginning of year 567,558 123,894

Cash, end of year $ 1,174,410 $ 567,558

The accompanying summary of significant accounting policies and notes are an integral part of these financial statements
5
 Waterloo Co-operative Residence Incorporated
Summary of Significant Accounting Policies
April 3D, 2007

Nature of Business Waterloo Co-operative Residence Incorporated is incorporated

without share capital and qualifies for tax purposes as a tax exempt,
non-profit organization according to section 149(1)(1) of the Income
Tax Act. The organization provides student housing in Waterloo,
Ontario.

Fund Accounting The General Fund accounts for the co-operative's ongoing operations.

The Capital Fund reports the assets, liabilities, revenues and

expenses related to the co-operative's capital assets.

The Redevelopment Reserve Fund is used solely for the funding of a

major redevelopment of existing properties or the construction of new
properties.

The Emergency Reserve Fund is used solely in circumstances that

require immediate use of cash to prevent insolvency or the risk
thereof.

The Capital Replacement Fund is used solely for the funding of repair
and replacement of existing capital assets as necessary.

Revenue Recognition Waterloo Co-operative Residence Incorporated follows the deferral

method of accounting for revenue. . Revenue is recognized in the
appropriate fund When received or receivable if the amount to be
received can be reasonably estimated and collection is reasonably
assured. Investment income is recognized as revenue of the
approprlate fund when earned.

Financial Instruments Unless otherwise noted, it is management's opinion that the

organization is not exposed to significant interest, currency or credit
risks arising from its financial instruments. The 'fair values of these
financial instruments approximate their carrying values, unless
otherwise noted.

Temporary Investments Temporary investments are recorded at cost plus accrued interest.

6
 Waterloo Co-operative Residence Incorporated
Summary of Significant Accounting Policies
April 3D, 2007

Capital Assets Capital assets are recorded at cost.

The buildings are amortized as follows:

268 Phillip Street 30 years using the annuity method

280 Phillip Street
139 University Avenue
which provides that the total
amortization and related mortgage
interest expense be equally
apportioned over the life of the
buildings.
50 years annuity method
20 years straight line

Amortization of other capital assets is based on the estimated useful

life of the asset as follows:

Fumiture, equipment and

appliances - 2, 5, 7 and 10 years straight line
Exterior building improvements - straight line to 2012
Interior building improvements - 20 years straight line
Vehicle - 5 years straight line
Paving - 20 years straight line

For all capital assets, amortization commences the year following the
year of acquisition.

Investments Investments are recorded at cost.

Contributed Services Volunteers contribute hours to assist the co-operative in carrying out
its services. Because of the difficUlty of determining their fair value,
contributed services are not recognized in the financial statements.

Use of Estimates The preparation of financial statements in accordance with Canadian

generally accepted accounting principles requires management to
make estimates and assumptions that affect the reported amounts of
assets and liabilitie,s at the date of the financial statements, and the
reported amounts of revenues and expenses during the reporting
period. Actual results could differ from management's best estimates
as additional information becomes available in the future.

7
 Waterloo Co-operative Residence Incorporated
Notes to Financial Statements
April 30, 2007

1. Cash

The organization's bank accounts are held at two chartered banks. The accounts are non-
interest bearing. .

The organization is authorized to borrow a maximum of $100,000 under an operating loan

agreement. The loan bears interest at prime plus 1.75% and is due on demand. At April 30,
2007, the unused credit capacity was $100,000.

2. Temporary Investments

The temporary investments consist of money market funds earning interest at market rates.

3. Accounts Receivable
2007 2006
Trade $ 47,692 $ 92,353
Less: Allowance for doubtful accounts (7,000) (11,100)
$ 40,692 $ 81,253

Amortization expense totalled $858,263 (2006 - $742,703) and was charged to the capital
fund.

Included in furniture, equipment and appliances is $102,284 of' kitchen equipment with
accumulated amortization of $91,756 that is no longer being used by the organization. The
organization is holding the assets as kitchen facilities may re-open in the future.

8
 Waterloo Co-operative Residence Incorporated
Notes to Financial Statements
April 3D, 2007

5. Accounts Payable and Accrued Liabilities

2007 2006

Trade accounts payable $ 72,973 $ 49,794

Accrued liabilities 45,603 23,012

$ 118,576 $ 72,806

6. Long-term Debt
2007 2006

6-3/8% mortgage, payable in semi-annual instalments

of $73,403 principal and interest, secured by the 280
Phillip Street property, maturing March 2019 $ 1,218,380 $ 1,284,345
5.45% mortgage, payable in monthly instalments of
$40,929 principal and interest, secured by a first mortgage
on the 268 Phillip Street property, a collateral mortgage on
the 139 University Avenue property and an assignment of
rents, maturing September 2015 3,907,859 4,180,354
0% loan, payable $743 per month, secured by vehicle,
maturing February 2008 7,431 16,349
Prime piUS 1.5% construction loan, repaid during the year 2,710,981

6.257% mortgage, payable in monthly instalments of

$18,672 principal and interest, secured by a first mortgage
on 139 University Avenue property and assignment of rents;
maturing April 2012 2,850,000
7,983,670 8,192,029
Less current portion 409,701 3,055,743

$ 7,573,969 S 5: 136,286

Interest expense on the above debt totalled $533,053 (2006 - $417,292).