KPM G LLP T e lephone (705) 675-8500 Cha r t e r e d A c c ount a n t s F a x (705) 675-7586 C l aridge E x ecutiv e C entre In W a tts (1-800) 461-3551 144 P i ne S t reet, P O B o x 700 Internet www. k p m g . c a S udbury O N P 3 E 4R 6 KPMG LLP, is a Canadian lim ited liability pa rtnership and a m e m ber f i rm of the KPMG netw o rk of independent m e m ber f i rm s a f f iliated w i th KPMG International Cooperativ e (“KP MG I n te rna t i ona l ” ), a S w i s s e n ti ty . KPM G C anada pr ov i des ser v i c es to KPM G LLP. INDEPENDENT AUDITORS' REPORT To the Governors of Northern College of Applied Arts and Technology We have audited the accompanying financial stat ements of Northern College of Applied Arts and Technology, which comprise the statements of financial position as at March 31, 2013, March 31, 2012 and April 1, 2011, the statement s of operations and changes in net assets (deficit) and cash flows for the years ended March 31, 2013 and March 31, 2012, and notes, comprising a summary of significant accounti ng policies and other explanatory information. Managem ent's Responsibility for the Financial Statem ents Management is responsible for the preparati on and fair presentation of these financial statements in accordance with Canadian public sector accounting standards, 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. Auditors' Responsibility Our responsibility is to express an opini on on these financial statements based on our audits. We conducted our audits in accor dance with Canadian generally accepted auditing standards. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assuranc e about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on our judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making t hose risk assessments, we consider internal control relevant to the entity's preparation and fa ir presentation of the financial statements in order to design audit procedures that are appropr iate in the circumstances, but not for the purpose of expressing an opinion on the effectivene ss of the entity's internal control. An audit also includes evaluating the appropria teness 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 hav e obtained in our audits is sufficient and appropriate to provide a basis for our audit opinion.