1. Change in Accounting Policy

As explained in the Summary of Significant Accounting Policies, effective April 1, 2007, the organization adopted several new accounting policies resulting from newly issued CICA Handbook sections. As required by the new standards, these accounting policies were applied on a prospective basis. Therefore, the 2007 amounts presented for comparative purposes have not been restated to reflect these changes in accounting policies.

2. Financial Statement Presentation
       
In some instances, comparative figures have been reclassified in order to comply with current year's presentation.

3. Cash

The organization's bank accounts are held at one chartered bank.

Bank balance include $128,663 denominated U.S dollars

4. Accounts Receivable 

     
5. Capital Assets          

During the year, capital assets were acquired at an aggregate cost of $201,953 for cash.

Capital assets are composed of capital assets owned and used by the organization at its Kingston, Ontario headquarters.

6. Natural Sciences and Engineering Research Council of Canada (NSERC)       
 
Private sector contributors and other revenues to the organization are matched by funding from NSERC to a maximum of $48.5 million in the 2005 2010 period. Private sector contributions in kind are documented by the organization, audited by and submitted to NSERC for review.

At March 31, 2008, CMC has $24.7 million of in kind contributions received from the private sector, relating to the 2005 2010 funding period. A framework for valuing in kind contributions to the National Design Network was developed by the organization and approved by NSERC. These are currently being audited.
 
7. Economic Dependence       

The organization is economically dependent on continued support from NSERC. In 2007, the organization formalized the agreement with NSERC covering 2005 2010 to provide a maximum contribution of $48.5 million over five years, subject to the organization receiving other cash and matching private sector contributions in kind of $48.5 million as approved by NSERC.

8. Commitments       

(a) The organization rents facilities under an operating lease agreement with Queen's University at Kingston. The base annual rent is estimated to be $86,467 for the year ended March 31, 2008 and subject to annual adjustment at July 1st of each year to reflect changes in maintenance and utility costs only. An additional $112,000 is charged annually to cover support services provided by Queen's University.

(b) The organization rents facilities under an operating lease agreement with Novelis Inc. and Queen’s University at Kingston, covering the period of November 15, 2006 to October 31, 2008. The base rent is $8,456 per month. The lease agreement also provides for a one year renewal option with a base rent of $9,167 per month.

(c) On February 27, 2004, the organization signed an agreement with Queen's University at Kingston to manage its fund of approximately $9.3 million from the Canada Foundation for Innovation and the Ontario Innovation Trust for the National Microelectronics and Photonics Testing Collaboratory. Under the agreement, the organization is committed to paying Queen's University $10,000 per year, each year of the program, to offset any expenses Queen's University may incur on behalf of project members in acting as primary recipient of the fund. The expected end date of the project is June 30, 2008.

(d) In January 2006, the organization entered into a five year operating lease for a photocopier. The photocopier is leased at $290 monthly under a lease expiring in January 2011.

(e) In August 2006, the organization entered into a five year operating lease for a photocopier. The photocopier is leased at $3,660 annually under a lease expiring in August 2011.

(f) In October 2006, the organization entered into a five year operating lease for a photocopier. The photocopier is leased at $3,840 annually under a lease expiring in September 2011.

(g) The organization has outstanding purchase orders issued for equipment at March 31, 2008 totalling $514,973. These amounts are not reflected in the financial statements.

The minimum annual lease payments for the six elements (a to f) above for next five years are as follows:

2009  $ 323,030 
2010  $ 319,447 
2011  $ 318,577 
2012  $ 308,467 
2013  $ 308,467 

9. Subsequent Event  

The organization has issued a request for proposals for new rental facilities.